- Revenues of $262.1 million were up 6 percent.
- In constant currency, revenues were up 8 percent.
- Operating income of $28.9 million was up 47 percent.
- Operating margin was 11.0 percent, up 300 basis points.
- Earnings per share of $0.69 were up 47 percent.
- Backlog of $508.0 million was up 4 percent.
- Cash and short-term investments were $90.6 million.
- Revenues of $981.2 million were up 5 percent.
- In constant currency, revenues were up 7 percent.
- Gross margin was 24.8 percent, up 250 basis points.
- Operating income of $97.4 million was up 53 percent.
- Operating margin was 9.9 percent, up 310 basis points.
- Earnings per share of $2.22 were up 48 percent vs. prior-year adjusted EPS of $1.50.
- Prior-year reported EPS of $1.72 included $0.22 from a tax credit.
"For fiscal 2017, we continue to expect U.S. commercial construction market growth, based on our visibility from backlog, commitments and bidding activity, as well as external market metrics," said Puishys. "This positive outlook supports our fiscal 2017 guidance for double-digit revenue growth of approximately 10 percent and record earnings of $2.65 to $2.80 per share."FY16 FOURTH-QUARTER SEGMENT AND OPERATING RESULTS VS. PRIOR-YEAR PERIOD Architectural Glass
- Revenues of $98.6 million were up 7 percent, on U.S. volume growth and improved pricing.
- In constant currency, revenues were up 10 percent.
- Operating income grew to $12.1 million, up 169 percent from $4.5 million.
- Operating margin expanded 740 basis points to 12.3 percent, compared to 4.9 percent, due to improved pricing and mix, strong operational performance and volume leverage.
- Revenues of $76.8 million were up 21 percent, due to strong project activity during the quarter.
- Operating income grew to $5.6 million, up 9 percent from $5.2 million, on increased volume at better margins and good project execution.
- Operating margin was 7.3 percent, compared to 8.1 percent.
- Revenues of $79.6 million were up 3 percent, on U.S. volume growth and improved mix.
- In constant currency, revenues were up 5 percent.
- Operating income grew to $7.7 million, up 60 percent from $4.8 million.
- Operating margin expanded 340 basis points to 9.7 percent, compared to 6.3 percent, as a result of lower raw material costs, volume leverage and execution of higher-margin window projects.
- Revenues of $21.7 million were down 5 percent, due to timing of customer orders.
- Operating income of $4.8 million was down 19 percent from $6.0 million.
- Operating margin was 22.3 percent, compared to 26.2 percent, due to timing within the year of volume and product mix; full-year results and operational performance remained strong.
- Backlog of $508.0 million was up 4 percent from $490.8 million in the prior-year period, and down 7 percent from the backlog of $544.7 million in the third quarter.
- Approximately $407 million, or 80 percent, of the backlog is expected to be delivered in fiscal 2017; and approximately $101 million, or 20 percent, in fiscal 2018.
- Cash and short-term investments totaled $90.6 million, compared to $52.5 million at the end of fiscal 2015.
- Share repurchases in fiscal 2016 totaled 575,000 shares at a cost of $24.9 million.
- Debt was $20.4 million, compared to $20.6 million at the end of fiscal 2015. All debt is long-term, low-interest industrial revenue bonds.
- Non-cash working capital was $68.8 million, compared to $97.5 million at the end of fiscal 2015.
- Capital expenditures in fiscal 2016 were $42.0 million, compared to $27.2 million in the prior year.
- Depreciation and amortization in fiscal 2016 was $31.2 million.
Puishys said that capital expenditures for the year are anticipated to be $50 to $60 million as Apogee invests to increase capabilities, productivity and capacity. Gross margin is expected to be greater than 26 percent and operating margin, approximately 11 percent."Longer term, we believe our strategies to grow through new geographies, new products and new markets, along with our backlog, bidding activity, and focus on better project selection, productivity and operational improvements, support our fiscal 2018 goals of at least a 12 percent operating margin on revenues of $1.2 to $1.3 billion," Puishys said. TELECONFERENCE AND SIMULTANEOUS WEBCASTApogee will host a teleconference and webcast at 9 a.m. Central Time tomorrow, April 7. To participate in the teleconference, call (866) 525-3151 toll free or (330) 863-3393 international, access code 78435185. 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 for replay 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.
- Constant currency revenue growth excludes the impact of fluctuations in foreign currency on Apogee's international operations. The company believes providing constant currency information provides valuable supplemental information regarding our results of operations, consistent with how we evaluate our performance. Constant currency percentages are calculated by converting prior-period local currency results using the current period exchange rates and comparing these adjusted amounts to current period reported results.
- Adjusted earnings per share excludes the benefit from an energy-efficient tax credit of $0.22 per share recognized in the second quarter of fiscal 2015. The company believes adjusting earnings per share for this credit provides a more useful year-over-year comparison of earnings per share.
- Backlog represents the dollar amount of revenues Apogee expects to recognize in the near-term from firm contracts or orders. The company uses backlog as one of the metrics to evaluate near-term sales trends in our business.
- Free cash flow is defined as net cash provided by operating activities, minus capital expenditures. The company considers this measure an indication of the financial strength of the company.
- Non-cash working capital is defined as current assets, excluding cash and short-term securities, less current liabilities, excluding current portion of long-term debt. The company considers this a useful metric in measuring working capital management over time.
FORWARD-LOOKING STATEMENTSThe discussion above contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect Apogee management's expectations or beliefs as of the date of this release. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements are qualified by factors that may affect the operating results of the company, including the following: (A) global economic conditions and the cyclical nature of the North American and Latin American commercial construction industries, which impact our three architectural segments, and consumer confidence and the conditions of the U.S. economy, which impact our large-scale optical segment; (B) fluctuations in foreign currency exchange rates; (C) actions of new and existing competitors; (D) ability to effectively utilize and increase production capacity; (E) product performance, reliability and quality issues; (F) project management and installation issues that could result in losses on individual contracts; (G) changes in consumer and customer preference, or architectural trends and building codes; (H) dependence on a relatively small number of customers in certain business segments; (I) revenue and operating results that could differ from market expectations; (J) self-insurance risk related to a material product liability or other event for which the company is liable; (K) dependence on information technology systems and information security threats; (L) cost of compliance with and changes in environmental regulations; (M) interruptions in glass supply; and (N) loss of key personnel and inability to source sufficient labor. The company cautions investors that actual future results could differ materially from those described in the forward-looking statements, and that other factors may in the future prove to be important in affecting the company's results of operations. New factors emerge from time to time and it is not possible for management to predict all such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or a combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. For a more detailed explanation of the foregoing and other risks and uncertainties, see Item 1A of the company's Annual Report on Form 10-K for the fiscal year ended February 28, 2015.
|Apogee Enterprises, Inc. & Subsidiaries|
|Consolidated Condensed Statement of Income|
|Dollar amounts and share counts in thousands,||Thirteen Weeks Ended||Thirteen Weeks Ended||%||Fifty-two Weeks Ended||Fifty-two Weeks Ended||%|
|except for per share amounts||February 27, 2016||February 28, 2015||Change||February 27, 2016||February 28, 2015||Change|
|Cost of goods sold||193,292||185,566||4||%||737,619||725,392||2||%|
|Selling, general and administrative expenses||39,969||41,485||-4||%||146,177||144,959||1||%|
|Other income (expense), net||(338||)||(78||)||-333||%||(457||)||1,384||N/M|
|Earnings before income taxes||28,653||19,666||46||%||97,324||64,999||50||%|
|Income tax expense||8,718||5,779||51||%||31,982||14,483||121||%|
|Earnings per share - basic||$0.69||$0.49||43||%||$2.25||$1.76||28||%|
|Average common shares outstanding||28,819||28,774||0||%||29,058||28,763||1||%|
|Earnings per share - diluted||$0.69||$0.47||47||%||$2.22||$1.72||*||29||%|
|Average common and common||29,063||29,448||-1||%||29,375||29,374||0||%|
|equivalent shares outstanding|
|Cash dividends per common share||$0.125||$0.110||14||%||$0.455||$0.410||11||%|
|* Adjusted earnings per share for the twelve months ended February 28, 2015 was $1.50, excluding a $0.22 benefit from an energy-efficient investment tax credit. Excluding the impact of this credit, earnings per share for the twelve months ended February 28, 2016 increased 48% over the prior year.|
|Business Segments Information|
|Weeks Ended||Weeks Ended||%||Weeks Ended||Weeks Ended||%|
|February 27, 2016||February 28, 2015||Change||February 27, 2016||February 28, 2015||Change|
|Architectural Framing Systems||79,603||77,026||3||%||308,593||298,395||3||%|
|Operating income (loss)|
|Architectural Framing Systems||7,714||4,834||60||%||31,911||21,808||46||%|
|Corporate and other||(1,380||)||(810||)||-70||%||(4,672||)||(4,050||)||-15||%|
|Consolidated Condensed Balance Sheets|
|February 27, 2016||February 28, 2015|
|Net property, plant and equipment||202,462||193,540|
|Liabilities and shareholders' equity|
|Total liabilities and shareholders' equity||$657,440||$612,057|
|Apogee Enterprises, Inc. & Subsidiaries|
|Consolidated Condensed Statement of Cash Flows|
|Weeks Ended||Weeks Ended|
|Dollar amounts in thousands||February 27, 2016||February 28, 2015|
|Depreciation & amortization||31,248||29,423|
|Changes in operating assets and liabilities||32,750||(16,503||)|
|Net cash provided by operating activities||123,951||68,563|
|Net (purchases) sales of marketable securities||(31,767||)||3,336|
|Net cash used in investing activities||(77,856||)||(24,475||)|
|Repurchase and retirement of common stock||(24,911||)||(6,894||)|
|Net cash used in financing activities||(36,413||)||(19,773||)|
|Increase in cash and cash equivalents||9,682||24,315|
|Effect of exchange rates on cash||(1,397||)||(595||)|
|Cash and cash equivalents at beginning of year||52,185||28,465|
|Cash and cash equivalents at end of period||$||60,470||$||52,185|