Apogee Enterprises Reports Fiscal 2023 First Quarter Results
Apogee Enterprises, Inc. today announced its fiscal 2023 first quarter results. First-quarter revenue grew 9.4 percent to $356.6 million, compared to $326.0 million in the first quarter of fiscal year 2022, led by growth in Architectural Framing Systems and Architectural Services. Earnings per diluted share increased to $1.00, compared to $0.42 per diluted share in the prior-year quarter, primarily driven by improved profitability in Architectural Framing Systems and Architectural Glass, and a lower share count.
“These strong results demonstrate the continued positive momentum in our business as we execute our strategy to create peak value,” said Ty R. Silberhorn, Chief Executive Officer. “Our team did a terrific job executing this quarter, improving service to customers, while effectively managing costs and pricing. Our strategy is driving improved operational execution and productivity gains, while strengthening our ability to manage costs.”
Mr. Silberhorn continued, “While we expect continued cost inflation and supply chain challenges, we are encouraged by this start to our fiscal year. We are well positioned to drive continued year-over-year revenue growth and margin expansion. As a result, we’re increasing our guidance for full-year earnings.”
Architectural Framing Systems
Architectural Framing Systems first-quarter revenue grew 19 percent, to $163.3 million, from $136.8 million in the prior-year period, primarily driven by inflation-related pricing actions. First quarter operating income increased to $23.7 million, compared to $8.4 million in last year’s first quarter, reflecting improved pricing and the benefits from previously completed restructuring and cost actions, which offset the impact of inflation. Framing Systems’ operating income also benefited from the timing of inventory flows and the volatility of aluminum prices, as it sold products this quarter using aluminum that was purchased in previous periods at lower costs. Segment backlog increased to $310 million, up from $281 million at the end of the fourth quarter of fiscal 2022. Framing Systems’ prior year results have been recast to reflect the move of the Sotawall business to the Architectural Services segment, effective this quarter.
Architectural Services revenue grew 14 percent to $103.4 million, from $90.7 million in the prior-year quarter, driven by increased volume from executing projects in backlog. Operating income was $2.9 million, compared to $4.2 million in the prior-year period, primarily reflecting performance write downs on a discrete number of projects, increased costs for investments to support future growth, and a less favorable project mix, partially offset by the higher volume. Segment backlog improved to $681 million, up from $665 million at the end of the fourth quarter of fiscal 2022. Prior-year results for Architectural Services have been recast to reflect the move of the Sotawall business into the segment, effective this quarter.
Architectural Glass revenue in the first quarter was $76.3 million, compared to $83.0 million in the prior-year quarter, primarily reflecting lower volume. Operating income improved to $5.2 million, compared to $2.1 million in last year’s first quarter, driven by productivity gains, the positive impact of restructuring actions completed last year, and improved pricing, which offset the impact of inflation and lower volume.
Large-Scale Optical revenue grew 4 percent to $25.2 million, up from $24.3 million in the first quarter last year, driven by improved pricing and a more favorable sales mix. Operating income was $6.5 million, up from $5.8 million in last year’s first quarter, primarily reflecting improved productivity, partially offset by cost inflation.
Net cash used by operating activities in the first quarter was $30.5 million, compared to $6.9 million provided by operating activities in the prior-year period. The lower cash flow primarily reflected increased working capital related to revenue growth. Capital expenditures were $5.1 million, compared to $4.7 million in last year’s first quarter. During the first quarter, the company repurchased 1.57 million shares of stock for $74.3 million and returned $4.8 million to shareholders through dividend payments.
Quarter-end total debt was $261 million, compared to $165 million at the end of last year’s first quarter. Cash and cash equivalents were $15.2 million, compared to $36.5 million at the end of the first quarter of fiscal 2022.
Based on first-quarter results and increasing confidence in its outlook, the company is raising its guidance for full-year adjusted earnings to a range of $3.50 to $3.90 per diluted share, up from the previously announced range of $2.90 to $3.30. The company continues to expect full-year capital expenditures of $35 million to $40 million.
For the full first quarter results, click here.
About Apogee Enterprises
Apogee Enterprises, Inc. is a leading provider of architectural products and services for enclosing buildings, and glazing products for framing art. Headquartered in Minneapolis, MN, our portfolio of industry-leading products and services includes high-performance architectural glass, windows, curtainwall, storefront and entrance systems, integrated project management and installation services, as well as value-added glass and acrylic for custom picture framing and displays. For more information, visit www.apog.com.
Jeff Huebschen – Vice President Investor Relations & Communications – firstname.lastname@example.org – (952) 487-7538
Source: Apogee Enterprises, Inc.