Sat. Jan 18th, 2020

Apogee Enterprises Reports Fiscal 2k20 2nd-Quarter Results

26 min read

Apogee Enterprises, Inc. (Nasdaq: APOG) recently declared its fiscal 2k20 second-quarter results. Second-quarter revenue was $357.10M, contrast to $362.10M in the 2nd-quarter of financial year 2k19. Earnings for each diluted share were $0.720, equal to the previous year duration. Adjusted earnings1 in previous year’s 2nd-quarter were $0.740 for each diluted share.

Segment Results

Architectural Framing Systems
Architectural Framing Systems revenue in the 2nd-quarter was $187.40M, contrast to $189.90M in the previous year duration. Second-quarter operating income was $15.50M, contrast to $18.30M in the previous year quarter. Last year’s 2nd-quarter included $1.10M of cost for the amortization of short-lived attained intangibles. Apart From that cost, adjusted operating income in the prior year quarter was $19.40M. 2nd-quarter operating margin was 8.30 percent, down from 9.6 percent and adjusted operating margin of 10.20 percent in last year’s 2nd-quarter, mainly because of a less favourable project mix. Segment backlog stands at $388.00M, contrast to $407.00M a quarter ago.

Architectural Glass
Architectural Glass grew 13.00 percent in the 2nd-quarter, with revenue of $99.10M contrast to $88.10M in the prior year quarter, mainly driven by raised volume and more favourable sales mix. Operating income improved to $6.50M and operating margin raised to 6.50 percent, contrast to $1.70M and 2.0 percent respectively in last year’s 2nd-quarter, mainly driven by operating leverage on the higher volume, more favourable mix, and improved productivity contrast to the prior year, partially offset by start-up costs related to planned growth programs.

Architectural Services
As expected, Architectural Services’ revenue reduced to $61.60M in the 2nd-quarter, contrast to $76.50M in the prior-year quarter, on lower volumes because of the timing of project activity. Second-quarter operating income was $4.00M with operating margin of 6.50 percent, contrast to $7.60M and 10.00 percent respectively in the prior year duration, reflecting reduced operating leverage on the reduced volumes. The segment continued to have strong order flow during the quarter, with segment backlog increasing to $502.00M, from $483.00M previous quarter.

Large-Scale Optical
Large-Scale Optical revenue was $20.80M, up 2.0 percent contrast to $20.40M in the 2nd-quarter last year because of improved sales mix. Operating income was $4.60M, contrast to $4.20M in the prior year duration, with operating margin improving to 22.30 percent, from 20.8 percent in the prior year quarter, driven by the more favourable sales mix.

Financial Condition
Fiscal year-to-date, cash offered by operating activities is $17.80M, contrast to $47.90M through the 1st-half of fiscal 2k19. The year-over-year difference mainly reflects raised working capital related to legacy EFCO projects, as revealed in previous quarters. Capital expenditures through the 1st-half of the fiscal year were $22.60M, contrast to $24.20M in the prior year duration, as the company continued to make investments in growth and productivity improvement programs. Fiscal year-to-date, the company has returned $29.20M of cash to shareholders through share repurchases and dividend payments, up from $8.80M in the prior year duration. During the quarter, the company reduced its total debt by $20.00M to $273.00M, contrast to $293.00M at the end of the 1st-quarter.

The company reaffirmed its guidance for fiscal 2k20. For the full-year the company continues to expect:

  • Revenue growth of 1.0 to 3.0 percent, with growth in three of the company’s segments, partially offset by a decline in Architectural Services because of the execution plans for projects in backlog.
  • Operating margins between 8.20 to 8.60 percent, with margin improvement in Architectural Glass and Architectural Framing Systems, offset by reduced margins in Architectural Services because of reduced leverage on lower volumes and less favourable project maturity contrast to fiscal 2k19. Margins will also be negatively influenced by start-up costs related to the planned growth investment in Architectural Glass, costs associated with supply chain programs, and raised corporate costs from higher legal and other advisory costs.
  • Diluted earnings for each share in the range of $3.00 to $3.20, which excludes the possible benefit of any potential cost recovery associated with the EFCO-related charges the company recorded in the previous financial year.
  • Tax rate of about 24.50 percent.
  • Capital expenditures of $60.00 to $65.00M.


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