Minnesota | 0-6365 | 41-0919654 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
4400 West 78th Street, Suite 520, Minneapolis, Minnesota | 55435 | |||
(Address of principal executive offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
APOGEE ENTERPRISES, INC. | ||
By: | /s/ James S. Porter | |
James S. Porter Chief Financial Officer |
Exhibit Number | Description | |||||
99.1 | Press Release issued by Apogee Enterprises, Inc. dated September 18, 2013. |
▪ | Operating income up 24 percent, EPS up 17 percent |
▪ | Acquisition supports product, geographic growth strategies |
▪ | Fiscal 2014 EPS outlook narrowed to $0.93-$1.00, from $0.90-$1.00 |
▪ | Revenues of $178.3 million were up 1 percent. |
▪ | Operating income of $9.4 million was up 24 percent. |
▪ | Earnings per share of $0.21 were up 17 percent. |
▪ | Architectural Glass segment had revenue growth of 11 percent and improved operating income. |
▪ | Consolidated backlog of $304.2 million was up 1 percent. |
▪ | Cash and short-term investments of $73.7 million were up 8 percent. |
▪ | Revenues of $70.0 million were up 11 percent. |
▪ | Operating income was $0.8 million, improved from an operating loss of $2.0 million. |
◦ | Operating margin was 1.1 percent, compared to negative 3.2 percent. |
▪ | Top- and bottom-line increases resulted from improved mix, pricing and productivity. |
▪ | Revenues of $42.2 million were down 10 percent due to the timing of project flow. |
▪ | Operating loss was $0.8 million, improved from an operating loss of $1.0 million despite the decline in current quarter revenues. |
◦ | Operating margin was negative 1.9 percent, compared to negative 2.2 percent as project margins increase from the cycle trough. |
▪ | Revenues of $49.5 million were down 5 percent. |
▪ | Operating income was $5.2 million, compared to $6.1 million. |
◦ | Operating margin was 10.5 percent, compared to 11.6 percent. |
▪ | Solid top- and bottom-line growth in the storefront and finishing businesses was offset by the window business results, where revenues and operating income declined with an anticipated gap in the schedule for more complex projects. |
▪ | During the quarter, completed an acquisition that adds an historic window renovation product line. |
▪ | Revenues of $19.7 million were up 1 percent. |
▪ | Operating income was $5.3 million, compared to $5.2 million. |
◦ | Operating margin was 26.9 percent, up from 26.5 percent. |
▪ | Consolidated backlog was $304.2 million up from $301.8 million in the first quarter of fiscal 2014 and $301.3 million in the prior-year period. |
◦ | Approximately $202 million, or 66 percent, of the backlog is expected to be delivered in fiscal 2014, and approximately $102 million, or 34 percent, in fiscal 2015. |
▪ | Debt was $20.8 million, compared to $30.8 million at the end of fiscal 2013. Almost all the debt is long-term, low-interest industrial revenue bonds. |
▪ | Cash and short-term investments totaled $73.7 million, compared to $85.6 million at the end of fiscal 2013 and $68.3 million in the prior-year period. |
▪ | Non-cash working capital was $70.3 million, compared to $54.1 million at the end of fiscal 2013 and $57.4 million in the prior-year period. |
▪ | Capital expenditures year to date were $8.2 million, compared to $15.7 million in the prior-year period. |
▪ | Depreciation and amortization year to date was $13.2 million. |
▪ | Architectural Glass segment consists of Viracon, the leading fabricator of coated, high-performance architectural glass for global markets. |
▪ | Architectural Services segment consists of Harmon, Inc., one of the largest U.S. full-service building glass installation and renovation companies. |
▪ | 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 Window and Wall Systems, a manufacturer of custom aluminum window systems and curtainwall; Tubelite, a fabricator of aluminum storefront, entrance and curtainwall products; and Linetec, a paint and anodizing finisher of window frames and PVC shutters. |
▪ | Large-Scale Optical segment consists of Tru Vue, a value-added glass and acrylic manufacturer primarily for the custom picture framing market. |
Apogee Enterprises, Inc. & Subsidiaries | |||||||||||||||||||||
Consolidated Condensed Statement of Income | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Thirteen | Thirteen | Twenty-six | Twenty-six | ||||||||||||||||||
Weeks Ended | Weeks Ended | % | Weeks Ended | Weeks Ended | % | ||||||||||||||||
Dollar amounts in thousands, except for per share amounts | August 31, 2013 | September 1, 2012 | Change | August 31, 2013 | September 1, 2012 | Change | |||||||||||||||
Net sales | $ | 178,287 | $ | 175,940 | 1 | % | $ | 357,598 | $ | 330,074 | 8 | % | |||||||||
Cost of goods sold | 139,752 | 139,803 | — | % | 282,677 | 262,862 | 8 | % | |||||||||||||
Gross profit | 38,535 | 36,137 | 7 | % | 74,921 | 67,212 | 11 | % | |||||||||||||
Selling, general and administrative expenses | 29,177 | 28,584 | 2 | % | 59,449 | 57,342 | 4 | % | |||||||||||||
Operating income | 9,358 | 7,553 | 24 | % | 15,472 | 9,870 | 57 | % | |||||||||||||
Interest income | 213 | 43 | 395 | % | 387 | 315 | 23 | % | |||||||||||||
Interest expense | 246 | 251 | (2 | )% | 745 | 614 | 21 | % | |||||||||||||
Other (expense) income, net | (104 | ) | 393 | N/M | (34 | ) | 411 | N/M | |||||||||||||
Earnings before income taxes | 9,221 | 7,738 | 19 | % | 15,080 | 9,982 | 51 | % | |||||||||||||
Income tax expense | 3,100 | 2,681 | 16 | % | 4,800 | 3,319 | 45 | % | |||||||||||||
Net earnings | $ | 6,121 | $ | 5,057 | 21 | % | $ | 10,280 | $ | 6,663 | 54 | % | |||||||||
Earnings per share - basic | $ | 0.21 | $ | 0.18 | 17 | % | $ | 0.36 | $ | 0.24 | 50 | % | |||||||||
Average common shares outstanding | 28,394,147 | 27,922,058 | 2 | % | 28,417,402 | 27,854,913 | 2 | % | |||||||||||||
Earnings per share - diluted | $ | 0.21 | $ | 0.18 | 17 | % | $ | 0.35 | $ | 0.24 | 46 | % | |||||||||
Average common and common | |||||||||||||||||||||
equivalent shares outstanding | 29,210,505 | 28,436,466 | 3 | % | 29,273,992 | 28,329,766 | 3 | % | |||||||||||||
Cash dividends per common share | $ | 0.0900 | $ | 0.0900 | — | % | $ | 0.1800 | $ | 0.1800 | — | % | |||||||||
Business Segments Information | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Thirteen | Thirteen | Twenty-six | Twenty-six | ||||||||||||||||||
Weeks Ended | Weeks Ended | % | Weeks Ended | Weeks Ended | % | ||||||||||||||||
August 31, 2013 | September 1, 2012 | Change | August 31, 2013 | September 1, 2012 | Change | ||||||||||||||||
Sales | |||||||||||||||||||||
Architectural Glass | $ | 69,974 | $ | 63,277 | 11 | % | $ | 144,777 | $ | 122,342 | 18 | % | |||||||||
Architectural Services | 42,177 | 46,653 | (10 | )% | 88,653 | 85,571 | 4 | % | |||||||||||||
Architectural Framing Systems | 49,450 | 52,170 | (5 | )% | 93,896 | 94,577 | (1 | )% | |||||||||||||
Large-scale Optical | 19,745 | 19,571 | 1 | % | 39,218 | 38,829 | 1 | % | |||||||||||||
Eliminations | (3,059 | ) | (5,731 | ) | 47 | % | (8,946 | ) | (11,245 | ) | 20 | % | |||||||||
Total | $ | 178,287 | $ | 175,940 | 1 | % | $ | 357,598 | $ | 330,074 | 8 | % | |||||||||
Operating income (loss) | |||||||||||||||||||||
Architectural Glass | $ | 770 | $ | (2,018 | ) | N/M | $ | 2,141 | $ | (4,424 | ) | N/M | |||||||||
Architectural Services | (787 | ) | (1,019 | ) | 23 | % | (1,752 | ) | (3,598 | ) | 51 | % | |||||||||
Architectural Framing Systems | 5,180 | 6,066 | (15 | )% | 7,244 | 9,162 | (21 | )% | |||||||||||||
Large-scale Optical | 5,316 | 5,196 | 2 | % | 10,014 | 10,464 | (4 | )% | |||||||||||||
Corporate and other | (1,121 | ) | (672 | ) | (67 | )% | (2,175 | ) | (1,734 | ) | (25 | )% | |||||||||
Total | $ | 9,358 | $ | 7,553 | 24 | % | $ | 15,472 | $ | 9,870 | 57 | % | |||||||||
Consolidated Condensed Balance Sheets | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
August 31, 2013 | March 2, 2013 | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Current assets | $ | 249,286 | $ | 251,841 | |||||||||||||||||
Net property, plant and equipment | 163,721 | 168,948 | |||||||||||||||||||
Other assets | 95,482 | 99,352 | |||||||||||||||||||
Total assets | $ | 508,489 | $ | 520,141 | |||||||||||||||||
Liabilities and shareholders' equity | |||||||||||||||||||||
Current liabilities | $ | 105,348 | $ | 122,167 | |||||||||||||||||
Long-term debt | 20,701 | 20,756 | |||||||||||||||||||
Other liabilities | 43,458 | 43,900 | |||||||||||||||||||
Shareholders' equity | 338,982 | 333,318 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 508,489 | $ | 520,141 | |||||||||||||||||
N/M = Not meaningful |
Apogee Enterprises, Inc. & Subsidiaries | |||||||||
Consolidated Condensed Statement of Cash Flows | |||||||||
(Unaudited) | |||||||||
Twenty-six | Twenty-six | ||||||||
Weeks Ended | Weeks Ended | ||||||||
Dollar amounts in thousands | August 31, 2013 | September 1, 2012 | |||||||
Net earnings | $ | 10,280 | $ | 6,663 | |||||
Depreciation and amortization | 13,175 | 13,113 | |||||||
Stock-based compensation | 2,306 | 2,318 | |||||||
Other, net | (1,992 | ) | 400 | ||||||
Changes in operating assets and liabilities | (11,507 | ) | (12,061 | ) | |||||
Net cash provided by operating activities | 12,262 | 10,433 | |||||||
Capital expenditures | (8,236 | ) | (15,679 | ) | |||||
Proceeds on sale of property | 458 | 18 | |||||||
Acquisition of business, net of cash acquired | (2,155 | ) | — | ||||||
Net sales (purchases) of restricted investments | 19,856 | (7,920 | ) | ||||||
Net sales (purchases) of marketable securities | 11,179 | (14,593 | ) | ||||||
Investments in life insurance | — | (900 | ) | ||||||
Net cash provided by (used in) investing activities | 21,102 | (39,074 | ) | ||||||
Proceeds from issuance of debt | — | 10,000 | |||||||
Payments on debt | (10,029 | ) | (86 | ) | |||||
Shares withheld for taxes, net of stock issued to employees | (1,361 | ) | (554 | ) | |||||
Dividends paid | (5,277 | ) | (5,193 | ) | |||||
Other, net | 1,550 | (4 | ) | ||||||
Net cash (used in) provided by financing activities | (15,117 | ) | 4,163 | ||||||
Increase (decrease) in cash and cash equivalents | 18,247 | (24,478 | ) | ||||||
Effect of exchange rates on cash | (373 | ) | 4 | ||||||
Cash and cash equivalents at beginning of year | 37,767 | 54,027 | |||||||
Cash and cash equivalents at end of period | $ | 55,641 | $ | 29,553 |
Contact: | Mary Ann Jackson |
Investor Relations | |
952-487-7538 | |
mjackson@apog.com |
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