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Apogee Enterprises Reports Fiscal 2021 Third-Quarter Results

General News

Apogee Enterprises, Inc. (“Apogee” or the “company”) announced results for the third quarter of fiscal 2021. Third-quarter revenue was $313.6 million, compared to $337.9 million in the third quarter of fiscal year 2020, reflecting market-related volume declines in Architectural Framing Systems and Architectural Glass, partially offset by growth in Architectural Services and Large-Scale Optical. Earnings were $1.42 per diluted share, compared to $0.57 per diluted share in the prior-year period, which included a pre-tax gain of $19.3 million on the sale of a building and $1.4 million of pre-tax costs related to COVID. Excluding these items, adjusted earnings increased to $0.90 per diluted share, from $0.57 in the prior year1.


“We delivered another strong quarter, with adjusted earnings growth and improved cash flow, despite continued challenges from COVID and soft conditions in our architectural end markets,” said Joseph F. Puishys, Chief Executive Officer. “We focused aggressively on managing costs and improving execution across our business and remain on track to achieve our full-year cost reduction goal of over $40 million. Architectural Services continued its strong performance, with double-digit revenue and profit growth, and Large-Scale Optical returned to growth, rebounding faster than expected from its shutdown earlier in the year.”

“During the quarter, we took several actions to further strengthen the company’s financial position and drive value,” continued Mr. Puishys. “We completed a sale-leaseback transaction for one of our facilities, generating a significant gain on the sale and $24 million in cash. We amended our term loan, extending the maturity by three years, and we resumed repurchases of our stock. We also initiated an effort to reduce our fixed cost base, which should add to the cost savings efforts we already had underway.”

Mr. Puishys concluded, “I want to commend the entire Apogee team for their efforts to manage through the past nine months. Our year-to-date results demonstrate the underlying strength and resilience of our company and our ability to produce solid results, even with difficult market conditions. Looking ahead, we will remain focused on managing what we can control, taking care of our employees and customers, while we execute strategic initiatives intended to position the company for long-term growth and improved profitability.”

Segment Results

Architectural Framing Systems

Architectural Framing Systems third-quarter revenue was $136.7 million, compared to $165.5 million in the prior-year period, primarily reflecting COVID and market-related project delays, and lower volume for short lead-time products. Operating income in the quarter increased to $7.2 million, with operating margin of 5.3 percent, from $6.3 million and 3.8 percent respectively in the prior-year quarter, primarily driven by cost reductions, which offset the impact of lower revenue. Segment backlog increased to $408 million, compared to $404 million at the end of the second quarter.

Architectural Glass

Architectural Glass revenue in the third quarter was $84.8 million, compared to $89.4 million in the prior-year quarter, primarily reflecting COVID and market-related project delays. The segment had operating income of $10.8 million and operating margin of 12.8 percent, compared to operating income of $4.0 million and margin of 4.6 percent in last year’s third quarter. Third quarter results included $7.4 million of operating income related to a New Markets Tax Credit transaction.

Architectural Services

Architectural Services revenue grew 11 percent to $76.7 million, from $69.0 million in the prior-year quarter, driven by increased volume from executing projects in backlog. Third-quarter operating income increased to $8.6 million with operating margin of 11.2 percent, up from $6.5 million and 9.5 percent respectively in the prior-year period, primarily driven by strong project execution. Segment backlog stood at $597 million, compared to $665 million at the end of the last quarter, and $607 million a year ago.

Large-Scale Optical

Large-Scale Optical revenue was $25.3 million, up from $24.4 million in the third quarter last year, driven by increased volume. Segment revenue grew sequentially by 50 percent compared to the second quarter, as customer demand increased significantly following the segment’s COVID-related shutdown earlier in the year. Segment operating income was $26.1 million with operating margin of 103.4 percent, which included a $19.3 million gain on the sale-leaseback of a building. Excluding this gain, adjusted operating income was $6.8 million, in-line with the prior-year quarter, with adjusted operating margin of 26.8 percent, compared to 27.7 percent last year.

Financial Condition

Fiscal year-to-date, net cash provided by operating activities is $121 million, more than double the $53.6 million for the same period last year, primarily driven by strong working capital management. Capital expenditures through the first nine months of the fiscal year were $17.1 million, down from $41.2 million in the prior-year period, as the company focused only on high return and essential capital projects. During the quarter, the company repurchased 621,000 shares of stock for $16.0 million. Fiscal year-to-date, the company has returned $35 million to shareholders through dividend payments and share repurchases.

As previously disclosed, the company amended its credit agreement during the quarter to extend the maturity of its unsecured $150 million term loan for three years to June 2024. This extension is expected to benefit annual interest expense by $0.5 million. Total debt at the end of the third quarter was $168 million with no outstanding borrowings on the company’s $235 million revolving credit facility.


The company is not providing detailed financial guidance due to continued uncertainty driven by the impact of COVID and end-market conditions. The company expects that continued project delays and soft market conditions will negatively impact revenue in the fourth quarter.

For the full third quarter results, click here.

About Apogee Enterprises

Apogee Enterprises, Inc. (Nasdaq: APOG) delivers distinctive solutions for enclosing commercial buildings and framing art. Headquartered in Minneapolis, MN, we are a leader in architectural products and services, providing architectural glass, aluminum framing systems and installation services for buildings, as well as value-added glass and acrylic for custom picture framing and displays. For more information, visit


Jeff Huebschen – Vice President Investor Relations & Communications – – (952) 487-7538

Source: Apogee Enterprises, Inc.