APOG Apogee Enterprises Inc

• Third quarter diluted EPS grows 15% to $1.23, on net sales of $340 million
• Operating margin expands 170 bps to 11.1%
• New project awards drive 15% sequential backlog growth in Architectural Services
• Year-to-date cash flow from operations increases $78 million to $129 million
• Increasing full-year adjusted diluted EPS outlook to a range of $4.55 to $4.70

Apogee Enterprises, Inc. (Nasdaq: APOG) today reported its fiscal 2024 third-quarter results. The Company reported the following selected financial results:

 

 

Three Months Ended

 

 

($ in thousands, except per share amounts)

 

November 25, 2023

 

November 26, 2022

 

% Change

Net Sales

 

$

339,714

 

 

$

367,847

 

 

(7.6

)%

Operating income

 

$

37,647

 

 

$

34,761

 

 

8.3

%

Operating margin %

 

 

11.1

%

 

 

9.4

%

 

18.1

%

Diluted earnings per share

 

$

1.23

 

 

$

1.07

 

 

15.0

%

Additional Non-GAAP Measures1

 

 

 

 

 

 

Adjusted diluted earnings per share

 

$

1.23

 

 

$

1.07

 

 

15.0

%

Adjusted EBITDA

 

 

47,281

 

 

 

44,686

 

 

5.8

%

“Our team continued to deliver strong results, with another quarter of year-over-year margin expansion, double-digit adjusted EPS growth, and significantly improved cash flow, despite lower revenue,” said Ty R. Silberhorn, Chief Executive Officer. “Execution of our strategy continues to drive improved performance, enabling us to achieve operating margin above our 10% target for the second consecutive quarter.”

Mr. Silberhorn continued, “As we move forward, we will continue to focus on building differentiated offerings that provide compelling value for our customers, driving productivity gains, and improving our cost structure. Additionally, our strong cash flow and balance sheet provide significant flexibility to make investments to accelerate our profitable growth.”

Consolidated Results (Third Quarter Fiscal 2024 Compared to Third Quarter Fiscal 2023)

• Net sales were $339.7 million compared to $367.8 million, primarily reflecting lower volumes, partially offset by improved mix and pricing.

• Gross profit increased by 4.3% to $90.3 million and gross margin improved by 310 bps to 26.6%, primarily driven by higher pricing, improved product mix, lower short-term incentive compensation expense, and lower insurance-related expense, partially offset by the impact of lower volume and a less favorable mix of projects in Services.

• Selling, general and administrative expenses increased $0.8 million to 15.5% of net sales compared to 14.1%, primarily due to higher salaries and benefit costs, partially offset by lower short-term incentive compensation expense.

• Operating income grew 8.3% to $37.6 million, and operating margin increased 170 basis points to 11.1% primarily driven by improved segment operating margin in Architectural Glass as well as the Architectural Glass segment comprising a higher mix of the consolidated results, partially offset by lower segment operating margin in Architectural Framing Systems.

• Net interest expense was $1.5 million, compared to $2.6 million, reflecting a lower average debt level, partially offset by higher average interest rates.

• Income tax expense was $8.3 million, compared to $7.9 million.

• Diluted earnings per share (“EPS”) grew 15% to $1.23.

Segment Results (Third Quarter Fiscal 2024 Compared to Third Quarter Fiscal 2023)

Architectural Framing Systems

Architectural Framing Systems net sales were $139.6 million, compared to $165.0 million, primarily reflecting lower volume due to slowing demand in our short-cycle business, partially offset by a more favorable sales mix. Operating income was $17.0 million, or 12.2% of net sales, compared to $22.1 million, or 13.4% of net sales, primarily reflecting the impact of lower volume, partially offset by improved sales mix, the impact of cost savings initiatives, improved productivity, and lower short-term incentive compensation expenses. Segment backlog2 at the end of the quarter was $183.9 million, compared to $197.5 million at the end of the second quarter.

Architectural Glass

Architectural Glass net sales grew 11.6%, to $91.0 million, primarily driven by improved mix and pricing, reflecting the strategic shift to emphasize premium, high-performance products. This was partially offset by lower volume. Operating income increased to $15.2 million, or 16.7% of net sales, compared to $7.5 million, or 9.1% of net sales. The higher operating margin was primarily driven by the impact of improved mix and pricing, partially offset by the impact of lower volume and cost inflation.

Architectural Services

Architectural Services net sales were $94.7 million, compared to $102.0 million, primarily reflecting a less favorable mix of projects. Operating income was $5.3 million, or 5.6% of net sales, compared to $6.0 million, or 5.9% of net sales. The change in operating margin was primarily driven by a less favorable mix of projects, partially offset by lower short-term incentive compensation expense. Segment backlog at the end of the quarter was $776.5 million, an increase of 15% compared to $674.4 million at the end of the second quarter, as several large projects were awarded in the quarter.

Large-Scale Optical

Large-Scale Optical net sales were $26.0 million, compared to $26.7 million, primarily reflecting lower volume, partially offset by a more favorable mix and pricing. Operating income was $7.1 million, with operating margin improving to 27.3% of net sales, compared to 26.7%, due to favorable mix and pricing.

Corporate and Other

Corporate and other expense was $6.9 million, compared to $7.9 million, primarily reflecting lower insurance-related costs.

Financial Condition

Net cash provided by operating activities in the quarter was $66.7 million, compared to $53.8 million in last year’s third quarter. Fiscal year to date, net cash provided by operating activities increased to $129.3 million, compared to $51.1 million in the prior-year period. The improved cash flow was primarily driven by favorable working capital changes compared to the prior year. Fiscal year to date, capital expenditures were $27.0 million, compared to $18.1 million last year, as the Company increased investments in projects to support its strategy. Fiscal year to date, the Company has returned $27.5 million of cash to shareholders through share repurchases and dividend payments.

Quarter-end total long-term debt was $100.7 million, compared to $169.8 million at the end of fiscal 2023. The net leverage ratio3 as of the end of the third quarter improved to 0.4x compared to 0.9x at the end of fiscal 2023.

Updated Outlook

The Company increased its outlook for full-year GAAP diluted EPS to a range of $4.71 to $4.86, and adjusted diluted EPS to a range of $4.55 to $4.704. As a reminder, fiscal 2024 is a 53-week year, with an extra week in the fourth quarter. Including the extra week of operations, the Company now expects net sales to decline approximately 3% compared to fiscal 2023. The Company continues to expect a long-term average tax rate of approximately 24.5% and now expects capital expenditures in fiscal 2024 between $40 to $50 million.

Conference Call Information

The Company will host a conference call today at 8:00 a.m. Central Time to discuss its financial results and provide a business update. This call will be webcast and is available in the Investor Relations section of the company’s website, along with presentation slides, at https://www.apog.com/events-and-presentations. A replay and transcript of the webcast will be available on the company’s website for one year from the date of the conference call.

About Apogee Enterprises

Apogee Enterprises, Inc. (Nasdaq: APOG) is a leading provider of architectural products and services for enclosing buildings, and high-performance glass and acrylic products used for preservation, energy conservation, and enhanced viewing. 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.

Use of Non-GAAP Financial Measures

Management uses non-GAAP measures to evaluate the Company’s historical and prospective financial performance, measure operational profitability on a consistent basis, and provide enhanced transparency to the investment community. Non-GAAP measures should be viewed in addition to, and not as a substitute for, the reported financial results of the Company prepared in accordance with GAAP. Other companies may calculate these measures differently, limiting the usefulness of the measures for comparison with other companies. This release and other financial communications may contain the following non-GAAP measures:

• Adjusted net earnings and adjusted diluted earnings per share (or “adjusted diluted EPS”) are used by the Company to provide meaningful supplemental information about its operating performance by excluding amounts that are not considered part of core operating results to enhance comparability of results from period to period.
• Adjusted EBITDA represents adjusted net earnings before interest, taxes, depreciation, and amortization. The Company believes this metric provides useful information to investors and analysts about the Company's core operating performance.
• Free cash flow is defined as net cash provided by operating activities, minus capital expenditures. The Company considers this measure an indication of its financial strength. However, free cash flow does not fully reflect the Company’s ability to freely deploy generated cash, as it does not reflect, for example, required payments on indebtedness and other fixed obligations.
• Net debt is a non-GAAP measure defined as total debt (current debt plus long-term debt) on our consolidated balance sheet, less cash and cash equivalents. The Company considers this measure helpful to evaluate our capital structure and financial leverage, and our ability to fund investing and financing activities.
• Net leverage ratio is a non-GAAP ratio defined as net debt divided by trailing twelve months adjusted EBITDA. The Company considers this measure helpful to evaluate our capital structure and financial leverage, and our ability to fund investing and financing activities.

Backlog is an operating measure used by management to assess future potential sales revenue. Backlog is defined as the dollar amount of signed contracts or firm orders, generally as a result of a competitive bidding process, which is expected to be recognized as revenue. Backlog is not a term defined under U.S. GAAP and is not a measure of contract profitability. Backlog should not be used as the sole indicator of future revenue because the Company has a substantial number of projects with short lead times that book-and-bill within the same reporting period that are not included in backlog.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “should” and similar expressions are intended to identify “forward-looking statements”. 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 results, performance, financial condition, prospects and opportunities of the Company, including the following: (A) U.S. and global economic conditions, including the cyclical nature of the North American and Latin American commercial construction industries and the potential impact of an economic downturn or recession; (B) fluctuations in foreign currency exchange rates; (C) actions of new and existing competitors; (D) ability to effectively utilize and increase production capacity; (E) departure of key personnel and ability to source sufficient labor; (F) product performance, reliability and quality issues; (G) project management and installation issues that could affect the profitability of individual contracts; (H) changes in consumer and customer preference, or architectural trends and building codes; (I) dependence on a relatively small number of customers in one operating segment; (J) net sales and operating results that could differ from market expectations; (K) self-insurance risk related to a material product liability or other events for which the Company is liable; (L) dependence on information technology systems and information security threats; (M) cost of compliance with and changes in environmental regulations; (N) supply chain disruptions, including fluctuations in the availability and cost of materials used in our products and the impact of trade policies and regulations; (O) integration of acquisitions and management of acquired contracts; (P) impairment of goodwill or indefinite-lived intangible assets; (Q) our ability to successfully implement our strategy to become the economic leader in our target markets and build an operating model to enable profitable growth and execute our priorities for fiscal year 2024; (R) increases in costs related to employee health care benefits; (S) risks that anticipated results from business restructuring initiatives will not be achieved, implementation of cost-saving and business restructuring initiatives may take more time or cost more than expected, the anticipated cost savings may be materially less than anticipated, and the restructuring may result in disruption in delivery of services to our customers; (T) U.S. and global instability and uncertainty arising from events outside of our control; and (U) the impact of cost inflation and rising interest rates. 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, performance, prospects, or opportunities. 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 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. More information concerning potential factors that could affect future financial results is included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 25, 2023, and in subsequent filings with the U.S. Securities and Exchange Commission.

______________________________

1 See Use of Non-GAAP Financial Measures and a reconciliation to the most directly comparable GAAP measures later in this press release.

2 Backlog is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures later in this press release for more information.

3 Net leverage ratio is a non-GAAP financial measure. See Use of Non-GAAP Financial Measures later in this press release for more information.

4 See reconciliation of Fiscal 2024 estimated adjusted diluted earnings per share to GAAP diluted earnings per share later in this press release.

Apogee Enterprises, Inc.

Consolidated Condensed Statements of Income

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Nine Months Ended

 

 

(In thousands, except per share amounts)

 

November 25, 2023

 

November 26, 2022

 

% Change

 

November 25, 2023

 

November 26, 2022

 

% Change

Net sales

 

$

339,714

 

$

367,847

 

(7.6

)%

 

$

1,055,102

 

 

$

1,096,591

 

(3.8

)%

Cost of sales

 

 

249,409

 

 

281,239

 

(11.3

)%

 

 

776,440

 

 

 

839,430

 

(7.5

)%

Gross profit

 

 

90,305

 

 

86,608

 

4.3

%

 

 

278,662

 

 

 

257,161

 

8.4

%

Selling, general and administrative expenses

 

 

52,658

 

 

51,847

 

1.6

%

 

 

166,695

 

 

 

157,112

 

6.1

%

Operating income

 

 

37,647

 

 

34,761

 

8.3

%

 

 

111,967

 

 

 

100,049

 

11.9

%

Interest expense, net

 

 

1,454

 

 

2,590

 

(43.9

)%

 

 

5,720

 

 

 

5,494

 

4.1

%

Other expense (income), net

 

 

890

 

 

552

 

61.2

%

 

 

(3,722

)

 

 

2,035

 

N/M

 

Earnings before income taxes

 

 

35,303

 

 

31,619

 

11.7

%

 

 

109,969

 

 

 

92,520

 

18.9

%

Income tax expense

 

 

8,329

 

 

7,854

 

6.0

%

 

 

26,092

 

 

 

8,635

 

202.2

%

Net earnings

 

$

26,974

 

$

23,765

 

13.5

%

 

$

83,877

 

 

$

83,885

 

—

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.24

 

$

1.09

 

13.8

%

 

$

3.82

 

 

$

3.81

 

0.3

%

Diluted earnings per share

 

$

1.23

 

$

1.07

 

15.0

%

 

$

3.80

 

 

$

3.74

 

1.6

%

Weighted average basic shares outstanding

 

 

21,819

 

 

21,870

 

(0.2

)%

 

 

21,981

 

 

 

22,043

 

(0.3

)%

Weighted average diluted shares outstanding

 

 

22,013

 

 

22,278

 

(1.2

)%

 

 

22,093

 

 

 

22,456

 

(1.6

)%

Cash dividends per common share

 

$

0.2400

 

$

0.2200

 

9.1

%

 

$

0.7200

 

 

$

0.6600

 

9.1

%

Apogee Enterprises, Inc.

Business Segment Information

(Unaudited)

 

 

Three Months Ended

 

 

 

Nine Months Ended

 

 

(In thousands)

 

November 25, 2023

 

November 26, 2022

 

% Change

 

November 25, 2023

 

November 26, 2022

 

% change

Segment net sales

 

 

 

 

 

 

 

 

 

 

 

 

Architectural Framing Systems

 

$

139,585

 

 

$

165,013

 

 

(15.4

)%

 

$

462,548

 

 

$

501,172

 

 

(7.7

)%

Architectural Glass

 

 

90,964

 

 

 

81,541

 

 

11.6

%

 

 

282,262

 

 

 

235,158

 

 

20.0

%

Architectural Services

 

 

94,662

 

 

 

102,031

 

 

(7.2

)%

 

 

272,144

 

 

 

312,151

 

 

(12.8

)%

Large-Scale Optical

 

 

26,009

 

 

 

26,660

 

 

(2.4

)%

 

 

72,110

 

 

 

76,988

 

 

(6.3

)%

Intersegment eliminations

 

 

(11,506

)

 

 

(7,398

)

 

55.5

%

 

 

(33,962

)

 

 

(28,878

)

 

17.6

%

Net sales

 

$

339,714

 

 

$

367,847

 

 

(7.6

)%

 

$

1,055,102

 

 

$

1,096,591

 

 

(3.8

)%

Segment operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Architectural Framing Systems

 

$

16,981

 

 

$

22,089

 

 

(23.1

)%

 

$

57,986

 

 

$

66,266

 

 

(12.5

)%

Architectural Glass

 

 

15,164

 

 

 

7,461

 

 

103.2

%

 

 

49,119

 

 

 

19,087

 

 

157.3

%

Architectural Services

 

 

5,288

 

 

 

6,032

 

 

(12.3

)%

 

 

8,211

 

 

 

14,449

 

 

(43.2

)%

Large-Scale Optical

 

 

7,100

 

 

 

7,109

 

 

(0.1

)%

 

 

17,288

 

 

 

19,598

 

 

(11.8

)%

Corporate and other

 

 

(6,886

)

 

 

(7,930

)

 

(13.2

)%

 

 

(20,637

)

 

 

(19,351

)

 

6.6

%

Operating income

 

$

37,647

 

 

$

34,761

 

 

8.3

%

 

$

111,967

 

 

$

100,049

 

 

11.9

%

Segment operating margin

 

 

 

 

 

 

 

 

 

 

 

 

Architectural Framing Systems

 

 

12.2

%

 

 

13.4

%

 

 

 

 

12.5

%

 

 

13.2

%

 

 

Architectural Glass

 

 

16.7

%

 

 

9.1

%

 

 

 

 

17.4

%

 

 

8.1

%

 

 

Architectural Services

 

 

5.6

%

 

 

5.9

%

 

 

 

 

3.0

%

 

 

4.6

%

 

 

Large-Scale Optical

 

 

27.3

%

 

 

26.7

%

 

 

 

 

24.0

%

 

 

25.5

%

 

 

Corporate and other

 

 

N/M

 

 

 

N/M

 

 

 

 

 

N/M

 

 

 

N/M

 

 

 

Operating margin

 

 

11.1

%

 

 

9.4

%

 

 

 

 

10.6

%

 

 

9.1

%

 

 

• Segment net sales is defined as net sales for a certain segment and includes revenue related to intersegment transactions.
• Segment operating income is defined as operating income for a certain segment including operating income related to intersegment transactions and excluding certain corporate costs that are not allocated at a segment level.
• Segment operating margin is defined as segment operating income divided by segment net sales.

Apogee Enterprises, Inc.

Consolidated Condensed Balance Sheets

(Unaudited)

(In thousands)

 

November 25, 2023

 

February 25, 2023

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

23,407

 

 

$

19,924

 

Restricted cash

 

 

—

 

 

 

1,549

 

Receivables, net

 

 

198,249

 

 

 

197,267

 

Inventories

 

 

70,267

 

 

 

78,441

 

Contract assets

 

 

48,146

 

 

 

59,403

 

Other current assets

 

 

32,390

 

 

 

26,517

 

Total current assets

 

 

372,459

 

 

 

383,101

 

Property, plant and equipment, net

 

 

246,206

 

 

 

248,867

 

Operating lease right-of-use assets

 

 

38,849

 

 

 

41,354

 

Goodwill

 

 

129,053

 

 

 

129,026

 

Intangible assets, net

 

 

64,174

 

 

 

67,375

 

Other non-current assets

 

 

44,114

 

 

 

45,642

 

Total assets

 

$

894,855

 

 

$

915,365

 

Liabilities and shareholders' equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

 

83,107

 

 

 

86,549

 

Accrued compensation and benefits

 

 

42,768

 

 

 

51,651

 

Contract liabilities

 

 

35,770

 

 

 

28,011

 

Operating lease liabilities

 

 

12,358

 

 

 

11,806

 

Other current liabilities

 

 

62,572

 

 

 

64,532

 

Total current liabilities

 

 

236,575

 

 

 

242,549

 

Long-term debt

 

 

100,666

 

 

 

169,837

 

Non-current operating lease liabilities

 

 

29,547

 

 

 

33,072

 

Non-current self-insurance reserves

 

 

31,830

 

 

 

29,316

 

Other non-current liabilities

 

 

40,506

 

 

 

44,183

 

Total shareholders’ equity

 

 

455,731

 

 

 

396,408

 

Total liabilities and shareholders’ equity

 

$

894,855

 

 

$

915,365

Apogee Enterprises, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

 

 

Nine Months Ended

(In thousands)

 

November 25, 2023

 

November 26, 2022

Operating Activities

 

 

 

 

Net earnings

 

$

83,877

 

 

$

83,885

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

31,185

 

 

 

31,925

 

Share-based compensation

 

 

6,644

 

 

 

5,961

 

Deferred income taxes

 

 

1,296

 

 

 

2,341

 

Gain on disposal of assets

 

 

(50

)

 

 

(1,484

)

Proceeds from New Markets Tax Credit transaction, net of deferred costs

 

 

—

 

 

 

18,390

 

Settlement of New Markets Tax Credit transaction

 

 

(4,687

)

 

 

(19,523

)

Noncash lease expense

 

 

8,742

 

 

 

8,924

 

Other, net

 

 

10

 

 

 

4,700

 

Changes in operating assets and liabilities:

 

 

 

 

Receivables

 

 

(846

)

 

 

(55,791

)

Inventories

 

 

8,256

 

 

 

(5,822

)

Contract assets

 

 

11,194

 

 

 

(8,314

)

Accounts payable

 

 

(1,902

)

 

 

(19,780

)

Accrued expenses

 

 

(7,015

)

 

 

7,281

 

Contract liabilities

 

 

7,635

 

 

 

24,702

 

Refundable and accrued income taxes

 

 

(7,587

)

 

 

(14,391

)

Operating lease liability

 

 

(9,214

)

 

 

(9,168

)

Prepaid expenses and other current assets

 

 

1,714

 

 

 

(2,724

)

Net cash provided by operating activities

 

 

129,252

 

 

 

51,112

 

Investing Activities

 

 

 

 

Capital expenditures

 

 

(26,956

)

 

 

(18,119

)

Proceeds from sales of property, plant and equipment

 

 

247

 

 

 

5,212

 

Purchases of marketable securities

 

 

(969

)

 

 

—

 

Sales/maturities of marketable securities

 

 

1,370

 

 

 

923

 

Net cash used by investing activities

 

 

(26,308

)

 

 

(11,984

)

Financing Activities

 

 

 

 

Borrowings on line of credit

 

 

195,851

 

 

 

430,879

 

Repayment on debt

 

 

—

 

 

 

(151,000

)

Payments on line of credit

 

 

(265,000

)

 

 

(239,000

)

Payments on debt issuance costs

 

 

—

 

 

 

(790

)

Repurchase and retirement of common stock

 

 

(11,821

)

 

 

(74,312

)

Dividends paid

 

 

(15,690

)

 

 

(14,415

)

Other, net

 

 

(3,781

)

 

 

(2,959

)

Net cash used by financing activities

 

 

(100,441

)

 

 

(51,597

)

Increase (decrease) in cash, cash equivalents and restricted cash

 

 

2,503

 

 

 

(12,469

)

Effect of exchange rates on cash

 

 

(569

)

 

 

350

 

Cash, cash equivalents and restricted cash at beginning of year

 

 

21,473

 

 

 

37,583

 

Cash and cash equivalents at end of period

 

$

23,407

 

 

$

25,464

 

Apogee Enterprises, Inc.

Reconciliation of Non-GAAP Financial Measures

Adjusted Net Earnings and Adjusted Diluted Earnings per Share

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

(In thousands)

 

November 25, 2023

 

November 26, 2022

 

November 25, 2023

 

November 26, 2022

Net earnings

 

$

26,974

 

 

$

23,765

 

 

$

83,877

 

 

$

83,885

 

NMTC settlement gain(1)

 

 

—

 

 

 

—

 

 

 

(4,687

)

 

 

—

 

Worthless stock deduction and related discrete tax benefits(2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(13,702

)

Income tax impact on above adjustments

 

 

—

 

 

 

—

 

 

 

1,148

 

 

 

—

 

Adjusted net earnings

 

$

26,974

 

 

$

23,765

 

 

$

80,338

 

 

$

70,183

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

November 25, 2023

 

November 26, 2022

 

November 25, 2023

 

November 26, 2022

Diluted earnings per share

 

$

1.23

 

 

$

1.07

 

 

$

3.80

 

 

$

3.74

 

NMTC settlement gain(1)

 

 

—

 

 

 

—

 

 

 

(0.21

)

 

 

—

 

Worthless stock deduction and related discrete tax benefits(2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.61

)

Income tax impact on above adjustments

 

 

—

 

 

 

—

 

 

 

0.05

 

 

 

—

 

Adjusted diluted earnings per share

 

$

1.23

 

 

$

1.07

 

 

$

3.64

 

 

$

3.13

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

 

22,013

 

 

 

22,278

 

 

 

22,093

 

 

 

22,456

 

(1)

Realization of a New Market Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other expense (income), net.

(2)

Worthless stock deduction and related discrete income tax benefits from the impairment of the Sotawall business in fiscal 2023 which was recorded in income tax expense (benefit).

Apogee Enterprises, Inc.

Reconciliation of Non-GAAP Measure - Adjusted EBITDA

(Earnings before interest, taxes, depreciation and amortization)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

(In thousands)

 

November 25, 2023

 

November 26, 2022

 

November 25, 2023

 

November 26, 2022

Net earnings

 

$

26,974

 

 

$

23,765

 

 

$

83,877

 

 

$

83,885

 

Income tax expense

 

 

8,329

 

 

 

7,854

 

 

 

26,092

 

 

 

8,635

 

Interest expense, net

 

 

1,454

 

 

 

2,590

 

 

 

5,720

 

 

 

5,494

 

Depreciation and amortization

 

 

10,524

 

 

 

10,477

 

 

 

31,185

 

 

 

31,925

 

EBITDA

 

$

47,281

 

 

$

44,686

 

 

$

146,874

 

 

$

129,939

 

NMTC settlement gain(1)

 

 

—

 

 

 

—

 

 

 

(4,687

)

 

 

—

 

Adjusted EBITDA

 

$

47,281

 

 

$

44,686

 

 

$

142,187

 

 

$

129,939

 

(1)

Realization of a New Market Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other expense (income), net.

Apogee Enterprises, Inc.

Reconciliation of Non-GAAP Measure - Net Leverage Ratio

(Unaudited)

 

 

 

 

 

 

Net Debt (In thousands)

 

November 25, 2023

 

February 25, 2023

Total debt

 

$

100,666

 

 

$

169,837

 

Less: Cash and cash equivalents

 

 

23,407

 

 

 

19,924

 

Net Debt

 

$

77,259

 

 

$

149,913

 

 

 

 

 

 

 

 

 

Trailing twelve months ending

Adjusted EBITDA

 

November 25, 2023

 

February 25, 2023

Net earnings

 

$

104,099

 

 

$

104,107

 

Income tax expense

 

 

29,971

 

 

 

12,514

 

Interest expense, net

 

 

7,886

 

 

 

7,660

 

Depreciation and amortization

 

 

41,663

 

 

 

42,403

 

EBITDA

 

$

183,619

 

 

$

166,684

 

NMTC Settlement Gain(1)

 

 

(4,687

)

 

 

—

 

Adjusted EBITDA

 

$

178,932

 

 

$

166,684

 

 

 

 

 

 

 

Net Leverage

 

November 25, 2023

 

February 25, 2023

Net Debt

 

$

77,259

 

 

$

149,913

 

Adjusted EBITDA

 

 

178,932

 

 

 

166,684

 

Net Leverage Ratio

 

0.4 x

 

 

0.9 x

 

 

 

 

 

 

 

(1)

Realization of a New Market Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other expense (income), net.

Apogee Enterprises, Inc.

Fiscal 2024 Outlook

Reconciliation of Fiscal 2024 outlook of estimated

Diluted Earnings per Share to Adjusted Diluted Earnings per Share

(Unaudited)

 

 

 

 

 

 

 

Fiscal Year Ending March 2, 2024

 

 

Low Range

 

High Range

Diluted earnings per share

 

$

4.71

 

 

$

4.86

 

NMTC settlement gain(1) per share

 

 

(0.21

)

 

 

(0.21

)

Income tax impact on above adjustments per share

 

 

0.05

 

 

 

0.05

 

Adjusted diluted earnings per share

 

$

4.55

 

 

$

4.70

 

(1)

Realization of a New Market Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other expense (income), net.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231221982128/en/

Jeff Huebschen Vice President, Investor Relations & Communications 952.487.7538 ir@apog.com