Apogee Enterprises, Inc. (Nasdaq:APOG) today announced fiscal 2014 first-quarter results. Apogee provides distinctive solutions for enclosing commercial buildings and framing art. FY14 FIRST QUARTER VS. PRIOR-YEAR PERIOD
- Revenues of $179.3 million were up 16 percent.
- Operating income was $6.1 million, up from $2.3 million.
- Earnings per share were $0.14, up from $0.06.
- Architectural Glass and Architectural Services segments had strong growth and improved operating income.
- Consolidated backlog was $301.8 million, compared to $298.3 million at the end of fiscal 2013 and $269.1 million in the prior-year period.
- Cash and short-term investments totaled $69.7 million, compared to $57.5 million.
- Revenues of $74.8 million were up 27 percent.
- Operating income was $1.4 million, compared to an operating loss of $2.4 million.
- Operating margin was 1.8 percent, compared to negative 4.1 percent.
- Top- and bottom-line increases resulted from improved mix, volume, productivity and pricing.
- Revenues of $46.5 million were up 19 percent on volume growth and the timing of project cost flow.
- Operating loss was $1.0 million, improved from an operating loss of $2.6 million, as volume increases and project margins improve from the cycle trough.
- Operating margin was negative 2.1 percent, compared to negative 6.6 percent.
- Revenues of $44.4 million were up 5 percent.
- Operating income was $2.1 million, compared to $3.1 million.
- Operating margin was 4.6 percent, compared to 7.3 percent.
- Top- and bottom-line growth in the storefront and finishing businesses was offset by the window business results, where revenues and operating income declined with an anticipated gap in the schedule for more complex projects.
- Revenues of $19.5 million were up 1 percent.
- Operating income was $4.7 million, compared to $5.3 million.
- Operating margin was 24.1 percent, compared to 27.4 percent.
- Volume growth and a positive mix of higher value-added products were offset by investments in promotion and for growth in new geographies and markets.
- Consolidated backlog was $301.8 million compared to $298.3 million at the end of fiscal 2013 and $269.1 million in the prior-year period.
- Approximately $238 million, or 79 percent, of the backlog is expected to be delivered in fiscal 2014, and approximately $64 million, or 21 percent, in fiscal 2015.
- Debt was $20.8 million, compared to $30.8 million at the end of fiscal 2013. Almost all the debt is long-term, low-interest industrial revenue bonds.
- Cash and short-term investments totaled $69.7 million, compared to $85.6 million at the end of fiscal 2013 and $57.5 million in the prior-year period. The decline from year end was due to the redemption of approximately $10 million in recovery zone bonds and funding of normal seasonal working capital requirements.
- Non-cash working capital was $68.2 million, up from $54.1 million at the end of fiscal 2013 due to normal seasonal working capital requirements; it was $61.2 million in the prior-year period.
- Capital expenditures were $1.5 million, down from $9.5 million in the prior-year period due to the timing of planned investments in the current year.
- Depreciation and amortization was $6.5 million.
“We are experiencing strong bidding activity for future architectural work, and margins on new orders are improving,” Puishys said. “The outlook for U.S. commercial construction markets in fiscal 2014, based on Apogee’s lag to McGraw-Hill forecasts for the segments we serve, is for low single-digit market growth. We again anticipate outperforming market growth by several percentage points.“We continue to expect that capital spending for fiscal 2014 will be in the range of $40 to $45 million as we invest for growth, productivity and product development capabilities, including for the new Architectural Glass coater,” he said. “We expect to be free cash flow positive after this level of investments.” He added that the fiscal 2014 gross margin is anticipated to be at least 22 percent. “I believe that our strategies to grow through new geographies, new products and new markets will allow Apogee to reach $1 billion in revenues by the end of fiscal 2016,” Puishys said. “At the same time, we believe we can achieve 10 percent operating margin in this timeframe, in part through our focus on productivity and operational improvements.” TELECONFERENCE AND SIMULTANEOUS WEBCASTApogee will host a teleconference and webcast at 10 a.m. Central Time tomorrow, June 26. To participate in the teleconference, call 1-866-804-6929 toll free or 857-350-1675 international, access code 88046005. The replay will be available from noon Central Time on June 26 through midnight Central Time on Wednesday, July 3, 2013, by calling 1-888-286-8010 toll free, access code 34308354. To listen to the live conference call over the internet, go to the Apogee web site at http://www.apog.com and click on “investor relations” and then the webcast link at the top of that page. The webcast also will be archived on the company’s web site. ABOUT APOGEE ENTERPRISESApogee Enterprises, Inc., headquartered in Minneapolis, is a leader in technologies involving the design and development of value-added glass products and services. The company is organized in four segments, with three of the segments serving the commercial construction market:
- Architectural Glass segment consists of Viracon, the leading fabricator of coated, high-performance architectural glass for global markets.
- Architectural Services segment consists of Harmon, Inc., one of the largest U.S. full-service building glass installation and renovation companies.
- Architectural Framing Systems segment businesses design, engineer, fabricate and finish the aluminum frames for window, curtainwall and storefront systems that comprise the outside skin of buildings. Businesses in this segment are: Wausau Window and Wall Systems, a manufacturer of custom aluminum window systems and curtainwall; Tubelite, a fabricator of aluminum storefront, entrance and curtainwall products; and Linetec, a paint and anodizing finisher of window frames and PVC shutters.
- Large-Scale Optical segment consists of Tru Vue, a value-added glass and acrylic manufacturer primarily for the custom picture framing market.
|Apogee Enterprises, Inc. & Subsidiaries|
|Consolidated Condensed Statement of Income|
|Weeks Ended||Weeks Ended||%|
|Dollar amounts in thousands, except for per share amounts||June 1, 2013||June 2, 2012||Change|
|Cost of goods sold||142,925||123,059||16%|
|Selling, general and administrative expenses||30,271||28,757||5%|
|Other income, net||69||17||306%|
|Earnings before income taxes||5,859||2,244||161%|
|Income tax expense||1,700||638||166%|
|Net earnings per share - basic||$0.15||$0.06||150%|
|Average common shares outstanding||28,440,656||27,787,767||2%|
|Net earnings per share - diluted||$0.14||$0.06||133%|
|Average common and common|
|equivalent shares outstanding||29,337,478||28,223,066||4%|
|Cash dividends per common share||$0.0900||$0.0900||0%|
|Business Segments Information|
|Weeks Ended||Weeks Ended||%|
|June 1, 2013||June 2, 2012||Change|
|Architectural Framing Systems||44,446||42,407||5%|
|Operating income (loss)|
|Architectural Framing Systems||2,064||3,096||-33%|
|Corporate and other||(1,053||)||(1,061||)||1%|
|Consolidated Condensed Balance Sheets|
|June 1,||March 2,|
|Net property, plant and equipment||164,052||168,948|
|Liabilities and shareholders' equity|
|Total liabilities and shareholders' equity||$497,330||$520,141|
|N/M = Not meaningful|
|Apogee Enterprises, Inc. & Subsidiaries|
|Consolidated Condensed Statement of Cash Flows|
|Weeks Ended||Weeks Ended|
|Dollar amounts in thousands||June 1, 2013||June 2, 2012|
|Depreciation and amortization||6,511||6,528|
|Changes in operating assets and liabilities||(13,149||)||(17,307||)|
|Net cash used in operating activities||(2,167||)||(7,657||)|
|Proceeds on sale of property||169||14|
|Net sales (purchases) of restricted investments||19,253||(8,260||)|
|Net purchases of marketable securities||(3,569||)||(11,125||)|
|Investments in life insurance||-||(900||)|
|Net cash provided by (used in) investing activities||14,341||(29,780||)|
|Proceeds from issuance of debt||-||10,000|
|Payments on debt||(10,015||)||(45||)|
|Shares withheld for taxes, net of stock issued to employees||(1,141||)||(817||)|
|Net cash (used in) provided by financing activities||(12,834||)||6,327|
|Decrease in cash and cash equivalents||(660||)||(31,110||)|
|Effect of exchange rates on cash||40||111|
|Cash and cash equivalents at beginning of year||37,767||54,027|
|Cash and cash equivalents at end of period||$37,147||$23,028|