Apogee Enterprises Reports Fiscal 2022 First-Quarter Results

Apogee Enterprises, Inc. announced its fiscal 2022 first-quarter results. First-quarter revenue grew 13 percent to $326.0 million, compared to $289.1 million in the first quarter of fiscal year 2021, with growth in each of the company’s four segments. Earnings increased to $0.42 per diluted share, compared to $0.11 per diluted share in the prior-year quarter. Last year’s first quarter included $1.4 million of pre-tax costs related to COVID-19. Excluding these costs, adjusted earnings in the prior-year quarter were $0.15 per diluted share.1

Commentary

“This was a solid start to our fiscal year, putting us on track to achieve our full year goals,” said Ty R. Silberhorn, Chief Executive Officer. “The business recovered strongly from the pandemic-related issues that impacted last year’s first quarter. We achieved sales growth in all of our segments, with significantly improved earnings.”

Mr. Silberhorn continued, “During the quarter, we also made good progress on our key initiatives. We continued to take steps to improve our cost structure and strengthen operational execution across the business. We launched several foundational projects to enable our enterprise transformation, and we made substantial progress on our enterprise strategy project, to better position the company for long-term profitable growth.”

Segment Results

Architectural Framing Systems

Architectural Framing Systems first-quarter revenue grew 1 percent to $151.8 million, compared to $150.2 million in the prior-year period. Framing Systems had first-quarter operating income of $8.1 million and operating margin of 5.3 percent, up from $7.3 million and 4.9 percent respectively in last year’s first quarter, reflecting benefits from cost-saving actions, which offset increased costs, primarily for materials and freight. Segment backlog increased to $423 million, compared to $411 million at the end of the fourth quarter of fiscal 2021.

Architectural Glass

Architectural Glass revenue in the first quarter grew 8 percent to $83.0 million, compared to $76.9 million in the prior-year quarter, primarily driven by increased volume and a more favorable sales mix. Segment operating income increased to $2.1 million with operating margin of 2.6 percent, compared to an operating loss of $0.5 million and operating margin of (0.6) percent in last year’s first quarter. The improved profitability was driven by increased productivity in core glass operations, the more favorable sales mix, and higher volumes, which offset the impact of higher material and freight costs.

Architectural Services

Architectural Services revenue grew 19 percent to $75.7 million, from $63.6 million in the prior-year quarter, driven by increased volume from executing projects in backlog. First-quarter operating income was $4.5 million with operating margin of 6.0 percent, compared to $5.3 million and 8.4 percent respectively in the prior-year period, primarily reflecting isolated performance impacts on certain projects and a less favorable project mix. Segment backlog was $559 million, compared to $571 million at the end of the fourth quarter of fiscal 2021.

Large-Scale Optical

Large-Scale Optical revenue was $24.2 million, up significantly from $6.3 million in the first quarter last year. In the prior year quarter, the segment’s customers and manufacturing operations were closed for a large part of the quarter to comply with COVID-related government directives. Segment operating income improved to $5.8 million, with operating margin of 24.1 percent, compared to an operating loss of $3.1 million and operating margin of (49.6) percent in last year’s first quarter, primarily driven by the increased sales volumes.

Financial Condition

Net cash provided by operating activities in the first quarter was $6.9 million, compared to $24.0 million in the prior-year period. The lower cash flow primarily reflected increased working capital related to revenue growth. Capital expenditures were $4.7 million, compared to $8.6 million in last year’s first quarter. During the first quarter, the company repurchased $12.6 million of stock and returned $5.0 million to shareholders through dividend payments.

Quarter-end total debt was $165 million, compared to $211 million at the end of last year’s first quarter. Cash and cash equivalents were $36.5 million, compared to $11.6 million at the end of the first quarter of fiscal 2021.

Outlook

Based on first quarter results, the company is increasing its full-year earnings guidance to a range of $2.20 to $2.40 per diluted share, up from the previously announced range of $2.10 to $2.35. This guidance includes $7 to $10 million of expected pre-tax costs related to investments in transformation initiatives. The company continues to expect a full-year tax rate of approximately 24.5 percent, and full-year capital expenditures of approximately $45 million.

For the full first 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 www.apog.com.

Contact:

Jeff Huebschen – Vice President Investor Relations & Communications – ir@apog.com – (952) 487-7538

Source: Apogee Enterprises, Inc.