Apogee Enterprises Reports Fiscal 2019 Third Quarter Results

PDF Version

Third quarter reported earnings of $0.78 per diluted share; with adjusted EPS of $0.80

Architectural Glass operating margin improves sequentially by 390 basis points

Architectural Services revenue grows 48 percent, with strong margin improvement and increased backlog

Year-to-date cash flow from operations increases to $71 million; year-to-date free cash flow up 35 percent to $37 million

Company updates full-year guidance

MINNEAPOLIS--(BUSINESS WIRE)--Dec. 20, 2018-- Apogee Enterprises, Inc. (Nasdaq: APOG) today announced its fiscal 2019 third-quarter results.

Third-Quarter Highlights

  • Revenue increased to $357.7 million, from $356.5 million in the prior year quarter.
  • Operating income was $31.4 million, down from $34.5 million in last year’s third quarter. Adjusted operating income was $32.1 million, compared to $37.9 million in the prior year quarter, primarily reflecting lower revenue and margins in Architectural Framing Systems, partially offset by higher revenues and margins in Architectural Services.
  • Earnings were $0.78 per diluted share (EPS), compared to $0.82 in the prior year period, with adjusted earnings of $0.80 per diluted share (adjusted EPS), compared to $0.90 last year.
  • Architectural Services revenue grew 48 percent to $72.8 million, with operating margin improving to 11.9 percent and backlog increasing to $419.2 million.
  • Year-to-date net cash provided by operating activities was $70.6 million, up from $66.2 million in the prior year period. Year-to-date free cash flow increased 35 percent to $36.8 million.

Adjusted operating income, adjusted EPS and free cash flow are non-GAAP financial measures. See Use and Reconciliation of Non-GAAP Financial Measures at the end of this press release for more information and reconciliation to the most directly comparable GAAP measures.

Commentary

“During the third quarter our Architectural Services segment continued to deliver robust performance, with nearly 50 percent revenue growth and strong margin gains, while our Large-Scale Optical segment also posted strong margin improvement,” said Joseph F. Puishys, Chief Executive Officer. “Overall we continued executing our strategy to grow and diversify the company and we remain confident in Apogee’s long-term opportunity to generate profitable growth and cash flow.”

“In Architectural Glass, we made progress toward ramping-up production and improving productivity. We continued to hire and train new workers, while improving factory throughput and driving nearly 400 basis points of sequential margin expansion. We have a good road map to further improvements and are focused on driving continued progress in the fourth quarter. We still have significant work ahead of us and now expect our efforts to return to prior margin levels will extend into the first part of fiscal 2020, while continued strong order flow should support top-line growth for the next several quarters.”

Puishys concluded, “We saw reduced revenue and profits in Architectural Framing Systems, reflecting lower volumes due to project timing delays. We see this as largely a timing issue, as bidding and award activity remains solid. The lower volumes also impacted the segment’s operating margins, offsetting the underlying progress we continue to make in improving operational performance. We now expect this near-term impact will carry over into the fourth quarter, which led us to revise our full-year guidance. Based on strong bidding activity, we remain confident in Framing Systems’ strong competitive position and long-term potential.”

Segment Results

Architectural Framing Systems

Architectural Framing Systems revenue was $181.3 million, compared to $194.2 million in the prior year quarter, primarily due to lower volumes, reflecting timing delays in some of the markets we serve. Operating income was $12.9 million and operating margin was 7.1 percent, down from $18.5 million and 9.5 percent respectively in the prior year quarter, primarily driven by the lower volumes. Adjusted operating income was $13.6 million with adjusted operating margin of 7.5 percent, compared to $21.4 million and 11.0 percent respectively in the prior year quarter. Segment backlog declined to $407.9 million, compared to $428.4 million a quarter ago.

Architectural Glass

Architectural Glass had third quarter revenue of $98.5 million compared to $96.9 in the prior year quarter. Operating income was $5.9 million, compared to $9.1 million in last year’s third quarter. Sequentially, Architectural Glass revenue grew 11.9 percent compared to the second quarter of fiscal 2019 and operating margin improved to 5.9 percent, a 390 basis point increase compared to the second quarter, as the segment benefited from operating leverage and made progress toward overcoming the labor and productivity issues that reduced its profitability in the first half of the fiscal year.

Architectural Services

Architectural Services’ revenue increased to $72.8 million, up from $49.1 million in last year’s third quarter, as the segment continued to execute on the substantial backlog booked over the past several quarters. The segment posted strong profitability improvements, with operating income increasing to $8.7 million and operating margin of 11.9 percent, compared to $2.5 million and 5.2 percent respectively in the prior year period, driven by operating leverage on higher volumes and strong project execution. Segment backlog increased to $419.2 million, up from $404.9 million last quarter and $346.3 million a year ago.

Large-Scale Optical

Large-Scale Optical revenue was $23.4 million, compared to $26.0 million in the third quarter last year. Operating income was $6.6 million, compared to $6.7 million in the prior year period, with operating margin improving to 28.4 percent, from 25.9 percent in the prior year quarter.

Financial Condition

The company ended the quarter with $232.7 million of long-term debt. Year-to-date net cash provided by operating activities increased 7 percent to $70.6 million. Capital expenditures for the first nine months of the fiscal year were $33.9 million, compared to $38.9 million in the same period last year, as the company continued to make disciplined investments in growth and productivity improvement initiatives. During the quarter, the company repurchased 600,000 shares of stock for $23.3 million. Year-to-date, Apogee has returned $36.5 million of cash to shareholders through dividend payments and share repurchases, a 60 percent increase compared to the same period last year.

Outlook

The company is updating its outlook for the full year to reflect lower volumes in Architectural Framing Systems and operational improvement efforts in Architectural Glass which are now expected to extend into fiscal 2020.

The company’s updated outlook for fiscal 2019 includes:

  • Revenue growth of 6 to 7 percent, compared to 8 to 10 percent previously
  • Operating margin of approximately 8.4 percent, compared to 8.3 to 8.8 percent previously
  • Adjusted operating margin of approximately 8.7 percent, compared to 8.6 to 9.1 percent previously
  • EPS of approximately $3.00, at the low-end of the previous guidance range of $3.00 to $3.20
  • Adjusted EPS of approximately $3.13, compared to $3.13 to $3.33 previously
  • Adjusted fiscal 2019 earnings guidance excludes the after-tax impact of amortization of short-lived acquired intangibles associated with the acquired backlog of Sotawall and EFCO of $3.8 million ($0.13 per diluted share).
  • Capital expenditures of approximately $60 million.
  • Tax rate of approximately 24 percent.

Conference Call Information

The company will host a conference call today at 8:00 a.m. Central Time to discuss its financial results and outlook. The call will be webcast and is available in the Investor Relations section of the company’s website at http://ir.apog.com/events-and-presentations. The webcast also will be archived for replay on the company’s web site.

About Apogee Enterprises

Apogee Enterprises, Inc., headquartered in Minneapolis, is a leader in the design and development of value-added glass and metal products and services for enclosing commercial buildings, framing and displays. The company is organized in four segments, with three of the segments serving the commercial construction market:

  • Architectural Framing Systems segment businesses design, engineer, fabricate and finish the aluminum frames for window, curtainwall and storefront systems that comprise the outside skin of buildings. Businesses in this segment are: Wausau, a manufacturer of custom aluminum window systems and curtainwall; Sotawall, a manufacturer of unitized curtainwall systems; EFCO, a manufacturer of aluminum window, curtainwall, storefront and entrance systems; Tubelite, a manufacturer of aluminum storefront, entrance and curtainwall products; Alumicor, a manufacturer of aluminum storefront, entrance, curtainwall and window products for Canadian markets; and Linetec, a paint and anodizing finisher of window frames and PVC shutters.
  • Architectural Glass segment consists of Viracon, the leading fabricator of coated, high-performance architectural glass for global markets.
  • Architectural Services segment consists of Harmon, one of the largest U.S. full-service building glass installation companies.
  • Large-Scale Optical segment, which leverages the same coating technologies used in the company’s Architectural Glass segment, consists of Tru Vue, a value-added glass and acrylic manufacturer primarily for framing and display applications.

Use of Non-GAAP Financial Measures

This release and other financial communications may contain the following non-GAAP measures:

  • Adjusted operating income, adjusted operating margin, adjusted net earnings and adjusted earnings per diluted share (“adjusted earnings per share” or “adjusted 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. Examples of items excluded to arrive at these adjusted measures include the impact of acquisition-related costs, amortization of short-lived acquired intangibles associated with backlog, and non-recurring restructuring costs.
  • Backlog represents the dollar amount of revenues Apogee expects to recognize from firm contracts or orders. The company uses backlog as one of the metrics to evaluate sales trends in its long lead time operating segments.
  • 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.
  • Adjusted EBITDA is equal to the sum of adjusted operating income depreciation and amortization expenses. We believe this metric provides useful information to investors and analysts about the Company's performance because it eliminates the effects of period-to-period changes in taxes, interest expense, and costs associated with capital investments and acquired companies.

Management uses these 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. These 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.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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 operating results of the company, including the following: (A) global economic conditions and the cyclical nature of the North American and Latin American commercial construction industries, which impact our three architectural segments, and consumer confidence and the conditions of the U.S. economy, which impact our large-scale optical segment; (B) fluctuations in foreign currency exchange rates; (C) actions of new and existing competitors; (D) ability to effectively utilize and increase production capacity; (E) loss of key personnel and inability to source sufficient labor; (F) product performance, reliability and quality issues; (G) project management and installation issues that could result in losses on 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 certain business segments; (J) revenue and operating results that could differ from market expectations; (K) self-insurance risk related to a material product liability or other event 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) commodity price fluctuations, trade policy impacts, and supply availability; and (O) integration of recent acquisitions. 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 of operations. 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 March 3, 2018 and in subsequent filings with the U.S. Securities and Exchange Commission.

Apogee Enterprises, Inc.

Consolidated Condensed Statements of Income

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen

 

Thirteen

 

 

 

Thirty-Nine

 

Thirty-Nine

 

 

 

 

Weeks Ended

 

Weeks Ended

 

%

 

Weeks Ended

 

Weeks Ended

 

%

In thousands, except per share amounts

 

December 1, 2018

 

December 2, 2017

 

Change

 

December 1, 2018

 

December 2, 2017

 

Change

Net sales

 

$

357,718

 

 

$

356,506

 

 

—

%

 

$

1,056,382

 

 

$

972,721

 

 

9

%

Cost of sales

 

273,628

 

 

264,947

 

 

3

%

 

807,096

 

 

724,868

 

 

11

%

Gross profit

 

84,090

 

 

91,559

 

 

(8

)%

 

249,286

 

 

247,853

 

 

1

%

Selling, general and administrative expenses

 

52,682

 

 

57,024

 

 

(8

)%

 

167,224

 

 

161,438

 

 

4

%

Operating income

 

31,408

 

 

34,535

 

 

(9

)%

 

82,062

 

 

86,415

 

 

(5

)%

Interest income

 

809

 

 

106

 

 

663

%

 

1,719

 

 

390

 

 

341

%

Interest expense

 

2,941

 

 

1,594

 

 

85

%

 

7,514

 

 

3,689

 

 

104

%

Other (expense) income, net

 

(655

)

 

303

 

 

N/M

 

(459

)

 

560

 

 

N/M

Earnings before income taxes

 

28,621

 

 

33,350

 

 

(14

)%

 

75,808

 

 

83,676

 

 

(9

)%

Income tax expense

 

6,730

 

 

9,704

 

 

(31

)%

 

18,030

 

 

26,517

 

 

(32

)%

Net earnings

 

$

21,891

 

 

$

23,646

 

 

(7

)%

 

$

57,778

 

 

$

57,159

 

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic

 

$

0.79

 

 

$

0.82

 

 

(4

)%

 

$

2.06

 

 

$

1.98

 

 

4

%

Average common shares outstanding

 

27,836

 

 

28,736

 

 

(3

)%

 

28,030

 

 

28,812

 

 

(3

)%

Earnings per share - diluted

 

$

0.78

 

 

$

0.82

 

 

(5

)%

 

$

2.04

 

 

$

1.98

 

 

3

%

Average common and common equivalent shares outstanding

 

28,156

 

 

28,818

 

 

(2

)%

 

28,304

 

 

28,862

 

 

(2

)%

Cash dividends per common share

 

$

0.1575

 

 

$

0.1400

 

 

13

%

 

$

0.4725

 

 

$

0.4200

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Segment Information

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen

 

Thirteen

 

 

 

Thirty-Nine

 

Thirty-Nine

 

 

 

 

Weeks Ended

 

Weeks Ended

 

%

 

Weeks Ended

 

Weeks Ended

 

%

In thousands

 

December 1, 2018

 

December 2, 2017

 

Change

 

December 1, 2018

 

December 2, 2017

 

Change

Sales

 

 

 

 

 

 

 

 

 

 

 

 

Architectural Framing Systems

 

$

181,306

 

 

$

194,157

 

 

(7

)%

 

$

550,193

 

 

$

493,672

 

 

11

%

Architectural Glass

 

98,524

 

 

96,940

 

 

2

%

 

263,533

 

 

292,026

 

 

(10

)%

Architectural Services

 

72,828

 

 

49,077

 

 

48

%

 

220,051

 

 

146,056

 

 

51

%

Large-Scale Optical

 

23,377

 

 

26,003

 

 

(10

)%

 

64,522

 

 

64,897

 

 

(1

)%

Eliminations

 

(18,317

)

 

(9,671

)

 

89

%

 

(41,917

)

 

(23,930

)

 

75

%

Total

 

$

357,718

 

 

$

356,506

 

 

—

%

 

$

1,056,382

 

 

$

972,721

 

 

9

%

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Architectural Framing Systems

 

$

12,903

 

 

$

18,452

 

 

(30

)%

 

$

43,554

 

 

$

46,958

 

 

(7

)%

Architectural Glass

 

5,851

 

 

9,107

 

 

(36

)%

 

9,168

 

 

28,687

 

 

(68

)%

Architectural Services

 

8,659

 

 

2,547

 

 

240

%

 

21,435

 

 

4,102

 

 

423

%

Large-Scale Optical

 

6,628

 

 

6,724

 

 

(1

)%

 

15,845

 

 

15,022

 

 

5

%

Corporate and other

 

(2,633

)

 

(2,295

)

 

15

%

 

(7,940

)

 

(8,354

)

 

(5

)%

Total

 

$

31,408

 

 

$

34,535

 

 

(9

)%

 

$

82,062

 

 

$

86,415

 

 

(5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apogee Enterprises, Inc.

 

 

Consolidated Condensed Balance Sheets

 

 

(Unaudited)

 

 

In thousands

 

 

 

 

 

 

 

December 1, 2018

 

March 3, 2018

 

 

Assets

 

 

 

 

 

 

 

Current assets

 

$

372,775

 

 

$

336,278

 

 

 

Net property, plant and equipment

 

302,209

 

 

304,063

 

 

 

Other assets

 

405,996

 

 

381,979

 

 

 

Total assets

 

$

1,080,980

 

 

$

1,022,320

 

 

 

Liabilities and shareholders' equity

 

 

 

 

 

 

Current liabilities

 

$

212,646

 

 

$

208,152

 

 

 

Long-term debt

 

232,726

 

 

215,860

 

 

 

Other liabilities

 

104,734

 

 

86,953

 

 

 

Shareholders' equity

 

530,874

 

 

511,355

 

 

 

Total liabilities and shareholders' equity

 

$

1,080,980

 

 

$

1,022,320

 

 

 

Consolidated Condensed Statement of Cash Flows

(Unaudited)

 

 

 

 

 

 

 

Thirty-Nine

 

Thirty-Nine

 

 

Weeks Ended

 

Weeks Ended

In thousands

 

December 1, 2018

 

December 2, 2017

Net earnings

 

$

57,778

 

 

$

57,159

 

Depreciation and amortization

 

38,378

 

 

39,774

 

Share-based compensation

 

4,724

 

 

4,645

 

Proceeds from new markets tax credit transaction, net of deferred costs

 

8,850

 

 

—

 

Other, net

 

7,302

 

 

(4,703

)

Changes in operating assets and liabilities

 

(46,388

)

 

(30,636

)

Net cash provided by operating activities

 

70,644

 

 

66,239

 

Capital expenditures

 

(33,867

)

 

(38,946

)

Proceeds on sale of property

 

12,332

 

 

253

 

Acquisition of businesses and intangibles

 

—

 

 

(184,826

)

Net purchases of marketable securities

 

(3,193

)

 

(866

)

Other, net

 

(2,209

)

 

941

 

Net cash used in investing activities

 

(26,937

)

 

(223,444

)

Borrowings on line of credit, net

 

16,500

 

 

164,000

 

Shares withheld for taxes, net of stock issued to employees

 

(1,591

)

 

(1,561

)

Repurchase and retirement of common stock

 

(23,313

)

 

(10,833

)

Dividends paid

 

(13,180

)

 

(11,971

)

Other, net

 

413

 

 

2,039

 

Net cash (used in) provided by financing activities

 

(21,171

)

 

141,674

 

Increase (Decrease) in cash and cash equivalents

 

22,536

 

 

(15,531

)

Effect of exchange rates on cash

 

(498

)

 

1,079

 

Cash, cash equivalents and restricted cash at beginning of year

 

19,359

 

 

27,297

 

Cash, cash equivalents and restricted cash at end of period

 

$

41,397

 

 

$

12,845

 

Apogee Enterprises, Inc.

Reconciliation of Non-GAAP Financial Measures

Adjusted Net Earnings and Adjusted Earnings per Diluted Common Share

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Thirteen

 

Thirteen

 

Thirty-Nine

 

Thirty-Nine

 

 

Weeks Ended

 

Weeks Ended

 

Weeks Ended

 

Weeks Ended

In thousands

 

December 1, 2018

 

December 2, 2017

 

December 1, 2018

 

December 2, 2017

Net earnings

 

$

21,891

 

 

$

23,646

 

 

$

57,778

 

 

$

57,159

 

Amortization of short-lived acquired intangibles

 

717

 

 

2,924

 

 

4,655

 

 

7,608

 

Acquisition-related costs

 

—

 

 

423

 

 

—

 

 

4,840

 

Income tax impact on above adjustments (1)

 

(168

)

 

(974

)

 

(1,108

)

 

(4,120

)

Adjusted net earnings

 

$

22,440

 

 

$

26,019

 

 

$

61,325

 

 

$

65,487

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen

 

Thirteen

 

Thirty-Nine

 

Thirty-Nine

 

 

Weeks Ended

 

Weeks Ended

 

Weeks Ended

 

Weeks Ended

 

 

December 1, 2018

 

December 2, 2017

 

December 1, 2018

 

December 2, 2017

Earnings per diluted common share

 

$

0.78

 

 

$

0.82

 

 

$

2.04

 

 

$

1.98

 

Amortization of short-lived acquired intangibles

 

0.03

 

 

0.10

 

 

0.16

 

 

0.26

 

Acquisition-related costs

 

—

 

 

0.01

 

 

—

 

 

0.17

 

Income tax impact on above adjustments (1)

 

(0.01

)

 

(0.03

)

 

(0.04

)

 

(0.14

)

Adjusted earnings per diluted common share

 

$

0.80

 

 

$

0.90

 

 

$

2.17

 

 

$

2.27

 

(1) Income tax impact on adjustments was calculated using the estimated quarterly effective income tax rate of 23.5% in the current year and 29.1% in the prior year and for the year-to-date period using the estimated annual effective income tax rate of 23.8% in the current year and 33.1% in the prior year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA and Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

Thirteen

 

Thirteen

 

Thirty-Nine

 

Thirty-Nine

 

 

Weeks Ended

 

Weeks Ended

 

Weeks Ended

 

Weeks Ended

In thousands

 

December 1, 2018

 

December 2, 2017

 

December 1, 2018

 

December 2, 2017

Net earnings

 

$

21,891

 

 

$

23,646

 

 

$

57,778

 

 

$

57,159

 

Income tax expense

 

6,730

 

 

9,704

 

 

18,030

 

 

26,517

 

Other expense (income), net

 

655

 

 

(303

)

 

459

 

 

(560

)

Interest expense, net

 

2,132

 

 

1,488

 

 

5,795

 

 

3,299

 

Depreciation and amortization

 

11,921

 

 

14,712

 

 

38,378

 

 

39,774

 

EBITDA

 

43,329

 

 

49,247

 

 

120,440

 

 

126,189

 

Amortization of short-lived acquired intangibles

 

717

 

 

2,924

 

 

4,655

 

 

7,608

 

Acquisition-related costs

 

—

 

 

423

 

 

—

 

 

4,840

 

Adjusted EBITDA

 

$

44,046

 

 

$

52,594

 

 

$

125,095

 

 

$

138,637

 

Adjusted Operating Income and Adjusted Operating Margin

(Unaudited)

 

 

Thirteen Weeks Ended December 1, 2018

 

 

Framing Systems Segment

 

Corporate

 

Consolidated

In thousands

 

Operating
income

 

Operating
margin

 

Operating
income (loss)

 

Operating
income

 

Operating
margin

Operating income (loss)

 

$

12,903

 

 

7.1

%

 

$

(2,633

)

 

$

31,408

 

 

8.8

%

Amortization of short-lived acquired intangibles

 

717

 

 

0.4

%

 

—

 

 

717

 

 

0.2

%

Adjusted operating income (loss)

 

$

13,620

 

 

7.5

%

 

$

(2,633

)

 

$

32,125

 

 

9.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen Weeks Ended December 2, 2017

 

 

Framing Systems Segment

 

Corporate

 

Consolidated

In thousands

 

Operating
income

 

Operating
margin

 

Operating
income (loss)

 

Operating
income

 

Operating
margin

Operating income (loss)

 

$

18,452

 

 

9.5

%

 

$

(2,295

)

 

$

34,535

 

 

9.7

%

Amortization of short-lived acquired intangibles

 

2,924

 

 

1.5

%

 

—

 

 

2,924

 

 

0.8

%

Acquisition-related costs

 

—

 

 

—

%

 

423

 

 

423

 

 

0.1

%

Adjusted operating income (loss)

 

$

21,376

 

 

11.0

%

 

$

(1,872

)

 

$

37,882

 

 

10.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirty-Nine Weeks Ended December 1, 2018

 

 

Framing Systems Segment

 

Corporate

 

Consolidated

In thousands

 

Operating
income

 

Operating
margin

 

Operating
income (loss)

 

Operating
income

 

Operating
margin

Operating income (loss)

 

$

43,554

 

 

7.9

%

 

$

(7,940

)

 

$

82,062

 

 

7.8

%

Amortization of short-lived acquired intangibles

 

4,655

 

 

0.8

%

 

—

 

 

4,655

 

 

0.4

%

Adjusted operating income (loss)

 

$

48,209

 

 

8.8

%

 

$

(7,940

)

 

$

86,717

 

 

8.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirty-Nine Weeks Ended December 2, 2017

 

 

Framing Systems Segment

 

Corporate

 

Consolidated

In thousands

 

Operating
income

 

Operating
margin

 

Operating
income (loss)

 

Operating
income

 

Operating
margin

Operating income (loss)

 

$

46,958

 

 

9.5

%

 

$

(8,354

)

 

$

86,415

 

 

8.9

%

Amortization of short-lived acquired intangibles

 

7,608

 

 

1.5

%

 

—

 

 

7,608

 

 

0.8

%

Acquisition-related costs

 

—

 

 

—

%

 

4,840

 

 

4,840

 

 

0.5

%

Adjusted operating income (loss)

 

$

54,566

 

 

11.1

%

 

$

(3,514

)

 

$

98,863

 

 

10.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Source: Apogee Enterprises, Inc.

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