Apogee Enterprises, Inc. (Nasdaq:APOG) today announced fiscal 2015 first-quarter results. Apogee provides distinctive solutions for enclosing commercial buildings and framing art. FY15 FIRST QUARTER VS. PRIOR-YEAR PERIOD
- Revenues of $210.9 million were up 18 percent.
- Operating income of $7.8 million was up 28 percent.
- Earnings per share of $0.21 were up 50 percent.
- Backlog of $385 million was up 28 percent, or $83 million.
- Cash and short-term investments were $18 million.
FY15 FIRST-QUARTER SEGMENT AND OPERATING RESULTS VS. PRIOR-YEAR PERIODArchitectural Glass
- Revenues of $79.6 million were up 6 percent with growth in the U.S. and international market sectors.
- Operating income grew to $2.8 million, doubling prior-year period earnings of $1.4 million on higher volume resulting in better capacity utilization.
- Operating margin was 3.5 percent, compared to 1.8 percent.
- Revenues of $51.6 million were up 11 percent on broad-based growth.
- Operating income was $0.2 million, compared to a prior-year period loss of $1.0 million.
- Operating margin was 0.4 percent, compared to negative 2.1 percent.
- Bottom-line growth resulted from good execution and improved project margins.
- Revenues of $64.2 million were up 44 percent, with organic growth of 22 percent excluding the Canadian acquisition.
- The three U.S. businesses in the segment all had double-digit growth, with the window business delivering especially strong growth compared to a challenging prior-year period.
- Operating income was $1.9 million, down 6 percent from $2.1 million.
- Operating margin was 3.0 percent, compared to 4.6 percent.
- Income growth in the U.S. businesses was offset by a loss in the Canadian business, which saw improvement in order levels in the latter part of the quarter.
- Revenues of $20.1 million were up 3 percent.
- Operating income of $4.0 million was down 16 percent from $4.7 million with increased investments in research and development for new products and new market sectors, as well as in manufacturing capacity.
- Operating margin was 19.8 percent, compared to 24.1 percent.
- Backlog was $385.1 million, up 17 percent from $329.6 million at the end of fiscal 2014 and up 28 percent from $301.8 million in the prior-year period.
- Approximately $307 million, or 80 percent, of the backlog is expected to be delivered in fiscal 2015, and approximately $78 million, or 20 percent, in fiscal 2016 and beyond.
- Debt was $20.7 million, consistent with the prior-year period. Almost all the debt is long-term, low-interest industrial revenue bonds.
- Cash and short-term investments totaled $17.7 million, compared to $28.7 million at the end of fiscal 2014 and $69.7 million in the prior-year period.
- In fiscal 2014, completed two acquisitions for approximately $54 million in cash.
- Non-cash working capital was $87.0 million, compared to $77.3 million at the end of fiscal 2014 and $68.2 million in the prior-year period.
- Capital expenditures in the first quarter were $8.7 million, compared to $1.5 million in the prior-year period.
- Depreciation and amortization was $6.8 million.
“In fiscal 2015, we again expect to outperform domestic commercial construction market growth by approximately 5 percentage points,” said Puishys. “The outlook for U.S. commercial construction markets, based on Apogee’s lag to McGraw-Hill forecasts for the segments we serve, is for high single-digit growth this fiscal year. In Canada, despite the weak start to the year, commercial construction markets are expected to grow for the remainder of the fiscal year.“We expect that capital spending for fiscal 2015 will be approximately $40 million as we invest for growth, product development capabilities and productivity, as well as in maintenance,” he said. “We again expect to be free cash flow positive after this level of investments.” He added that the fiscal 2015 gross margin is anticipated to be approximately 23 percent. “We believe that our strategies to grow through new geographies, new products and new markets will put Apogee on a path to $1 billion in revenues by the end of fiscal 2016,” Puishys said. “At the same time, we believe we can achieve a 10 percent operating margin in this approximate 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 25. To participate in the teleconference, call 1-866-700-0133 toll free or 617-213-8831 international, access code 78517372. The replay will be available from noon Central Time on June 25 through midnight Central Time on Wednesday, July 2 by calling 1-888-286-8010 toll free, access code 75536853. 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; Alumicor, a fabricator of aluminum storefront, entrance, curtainwall and window products for Canadian markets; 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||May 31, 2014||June 1, 2013||Change|
|Cost of goods sold||169,445||142,925||19||%|
|Selling, general and administrative expenses||33,621||30,271||11||%|
|Other income, net||1,283||69||1759||%|
|Earnings before income taxes||9,156||5,859||56||%|
|Income tax expense||3,054||1,700||80||%|
|Earnings per share - basic||$||0.21||$||0.15||40||%|
|Average common shares outstanding||28,777,464||28,440,656||1||%|
|Earnings per share - diluted||$||0.21||$||0.14||50||%|
|Average common and common|
|equivalent shares outstanding||29,384,879||29,337,478||0||%|
|Cash dividends per common share||$||0.1000||$||0.0900||11||%|
|Business Segments Information|
|Weeks Ended||Weeks Ended||%|
|May 31, 2014||June 1, 2013||Change|
|Architectural Framing Systems||64,222||44,446||44||%|
|Operating income (loss)|
|Architectural Framing Systems||1,931||2,064||-6||%|
|Corporate and other||(1,062||)||(1,053||)||-1||%|
|Consolidated Condensed Balance Sheets|
|May 31,||March 1,|
|Net property, plant and equipment||197,144||193,946|
|Liabilities and shareholders' equity|
|Total liabilities and shareholders' equity||$||558,440||$||565,357|
|N/M = Not meaningful|
|Apogee Enterprises, Inc. & Subsidiaries|
|Consolidated Condensed Statement of Cash Flows|
|Weeks Ended||Weeks Ended|
|Dollar amounts in thousands||May 31, 2014||June 1, 2013|
|Depreciation and amortization||6,766||6,511|
|Changes in operating assets and liabilities||(10,391||)||(13,149||)|
|Net cash provided by (used in) operating activities||1,196||(2,167||)|
|Proceeds on sale of property||201||169|
|Net sales of restricted investments||798||19,253|
|Net sales (purchases) of marketable securities||384||(3,569||)|
|Net cash (used in) provided by investing activities||(7,355||)||14,341|
|Payments on debt||(12||)||(10,015||)|
|Shares withheld for taxes, net of stock issued to employees||(3,164||)||(1,141||)|
|Repurchase and retirement of common stock||(863||)||-|
|Net cash used in financing activities||(5,528||)||(12,834||)|
|Decrease in cash and cash equivalents||(11,687||)||(660||)|
|Effect of exchange rates on cash||315||40|
|Cash and cash equivalents at beginning of year||28,465||37,767|
|Cash and cash equivalents at end of period||$||17,093||$||37,147|