Apogee Enterprises Reports Fiscal 2024 Third Quarter Results
Apogee Enterprises, Inc. (Nasdaq: APOG) reports 15% growth in diluted EPS to $1.23 and 7.6% decline in net sales to $339.7 million for the third quarter of fiscal 2024. Operating margin expands 170 bps to 11.1%, and cash flow from operations increases to $129 million year-to-date. The company updates its full-year adjusted diluted EPS outlook to a range of $4.55 to $4.70.
The reported increase of 15% in diluted earnings per share (EPS) to $1.23 for Apogee Enterprises, Inc. is a significant indicator of the company's profitability. Despite a 7.6% decline in net sales, the company's ability to expand its operating margin by 170 basis points to 11.1% suggests effective cost management and operational efficiency. The rise in operating margin above the 10% target for a second consecutive quarter may be viewed favorably by investors, as it reflects the company's ability to generate profit from its sales.
The 15% sequential backlog growth in Architectural Services indicates a healthy pipeline of future revenues, which could signal sustained performance. However, the reduced net sales could be a point of concern, indicating potential challenges in market demand or competitive pressures. The increase in gross margin by 310 basis points to 26.6% is noteworthy, as it implies the company's pricing power and product mix improvements are yielding positive results.
From a financial health perspective, the improved cash flow from operations and reduced net leverage ratio to 0.4x demonstrate a stronger balance sheet. This financial stability affords the company flexibility for strategic investments and shareholder returns, as evidenced by the $27.5 million returned through share repurchases and dividends.
Apogee Enterprises' focus on differentiated offerings and productivity gains within the Architectural Glass segment, which saw an 11.6% growth in net sales, aligns with industry trends favoring premium, high-performance products. The segment's operating margin improvement to 16.7% of net sales is a testament to the strategic shift and operational improvements.
However, the Architectural Framing Systems and Architectural Services segments experienced lower volumes and a less favorable mix of projects, respectively. These trends could reflect broader industry dynamics, such as a slowdown in construction or shifts in client project portfolios. The 15% growth in the Architectural Services segment backlog, though, does suggest a robust demand for specialized services, which could mitigate the impact of the current less favorable mix.
Investors should consider the implications of the company's increased full-year adjusted diluted EPS outlook to a range of $4.55 to $4.70, which could indicate management's confidence in continued operational improvements and cost efficiencies. The projected decline in net sales of approximately 3% for fiscal 2024, including the extra week of operations, should be balanced against the company's profitability measures and backlog growth when evaluating its future performance.
The reported financial results of Apogee Enterprises provide insights into the broader economic landscape, particularly in the construction and architectural services sectors. The company's ability to grow its operating income and EPS amidst a sales decline may reflect a resilient business model in a potentially contracting market. The strategic emphasis on premium products and services could be an effective hedge against economic downturns, as these segments often maintain demand despite broader market challenges.
Lower short-term incentive compensation expenses and reduced insurance-related costs as factors contributing to improved profitability suggest that the company is benefiting from internal cost-saving measures. These actions could be indicative of a proactive response to economic headwinds or a strategic shift towards leaner operations.
The reduced net interest expense, reflecting a lower average debt level, is a positive sign in an environment of rising interest rates. This reduction in financial leverage positions the company to better withstand economic fluctuations and interest rate volatility. The increase in capital expenditures to support strategic initiatives also highlights a forward-looking investment approach that could drive long-term growth.
12/21/2023 - 06:30 AM
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 $4.70
MINNEAPOLIS --(BUSINESS WIRE)--
Apogee Enterprises, Inc. (Nasdaq: APOG) today reported its fiscal 2024 third-quarter results. The Company reported the following selected financial results:
Three Months Ended
($ 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 $4.70 4 . 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
Source: Apogee Enterprises, Inc.
What are Apogee Enterprises, Inc.'s (Nasdaq: APOG) third-quarter financial results?
Apogee Enterprises, Inc. (Nasdaq: APOG) reported 15% growth in diluted EPS to $1.23 and a 7.6% decline in net sales to $339.7 million for the third quarter of fiscal 2024. Operating margin expanded 170 bps to 11.1%.
What is the year-to-date cash flow from operations for Apogee Enterprises, Inc. (Nasdaq: APOG)?
The year-to-date cash flow from operations for Apogee Enterprises, Inc. (Nasdaq: APOG) increased to $129 million.
What is the updated full-year adjusted diluted EPS outlook for Apogee Enterprises, Inc. (Nasdaq: APOG)?
Apogee Enterprises, Inc. (Nasdaq: APOG) updated its full-year adjusted diluted EPS outlook to a range of $4.55 to $4.70.