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 April 9, 2014. |
• | Q4 revenues up 19 percent, EPS up 80% |
• | FY14 revenues up 10 percent, EPS up 42% |
• | Backlog grows to $330 million, up 11% |
• | FY15 outlook: double-digit revenue growth, 50% operating income growth |
• | Revenues of $214.4 million were up 19 percent. |
• | Operating income of $12.1 million was up 97 percent. |
• | Earnings per share of $0.27 were up 80 percent. |
• | Consolidated backlog of $330 million was up 11 percent, or $31 million. |
• | Revenues of $771.4 million were up 10 percent. |
• | Operating income of $40.3 million was up 47 percent. |
• | Earnings per share of $0.95 were up 42 percent. |
• | Cash and short-term investments were $28.7 million. |
◦ | Free cash flow of $11.1 million after capital expenditures of $41.9 million. |
◦ | Completed two acquisitions during the fiscal year for approximately $54 million in cash. |
▪ | Revenues of $75.7 million were up 9 percent with growth in the United States and Brazil. |
• | Operating income of $0.1 million was improved from a loss of $0.4 million due to improved mix and pricing on flat volumes, partially offset by timing of expenses and increased incentive compensation. |
◦ | Operating margin was 0.1 percent, compared to negative 0.6 percent, up 70 basis points. |
• | Revenues of $63.5 million were up 22 percent. |
• | Operating income of $5.9 million was up 111 percent. |
◦ | Operating margin was 9.3 percent, compared to 5.4 percent, up 390 basis points. |
• | Top- and bottom-line growth resulted from favorable project timing and cost flow and generally good execution, along with improving project margins. |
• | Revenues of $63.2 million were up 41 percent, with organic growth of 16 percent excluding the Canadian acquisition. |
• | Operating income was $1.9 million, compared to a loss of $0.2 million. |
◦ | Operating margin was 3.0 percent, compared to negative 0.3 percent, up 330 basis points. |
• | Top- and bottom-line increases were driven by performance in the window business. |
• | Revenues were $19.2 million, compared to $19.5 million due to retail softness impacted by the severe winter weather, partially offset by good sales growth in the fine art and museum market. |
• | Operating income of $5.2 million was up 30 percent due to reduced expenses and a strong mix of higher value-added framing products. |
◦ | Operating margin was 27.0 percent, compared to 20.4 percent, up 660 basis points. |
• | Backlog was $329.6 million, up 10 percent from $299.9 million in the third quarter and up 11 percent from $298.3 million in the prior-year period. |
◦ | Approximately $314 million, or 95 percent, of the backlog is expected to be delivered in fiscal 2015, and approximately $15 million, or 5 percent, in fiscal 2016 and beyond. |
• | Debt was $20.7 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 $28.7 million, compared to $22.5 million in the third quarter and $85.6 million at the end of fiscal 2013. |
• | Non-cash working capital was $77.3 million, compared to $72.1 million in the third quarter and $54.2 million at the end of fiscal 2013. |
◦ | Third and fourth quarters included addition of working capital from Alumicor acquisition. |
• | Capital expenditures for the year were $41.9 million, compared to $34.7 million in fiscal 2013. Fiscal 2014 investments included the new Architectural Glass coater for improved capabilities and new products, as well as Architectural Framing Systems capacity additions in the finishing and U.S. storefront businesses. |
• | Depreciation and amortization for the year was $26.6 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; Alumicor, a fabricator of aluminum storefront, entrance, curtainwall and window products for Canadian markets; 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 | Fifty-two | Fifty-two | ||||||||||||||||||
Weeks Ended | Weeks Ended | % | Weeks Ended | Weeks Ended | % | ||||||||||||||||
Dollar amounts in thousands, except for per share amounts | March 1, 4014 | March 2, 2013 | Change | March 1, 4014 | March 2, 2013 | Change | |||||||||||||||
Net sales | $ | 214,417 | $ | 179,734 | 19 | % | $ | 771,445 | $ | 700,224 | 10 | % | |||||||||
Cost of goods sold | 167,475 | 143,452 | 17 | % | 606,193 | 554,491 | 9 | % | |||||||||||||
Gross profit | 46,942 | 36,282 | 29 | % | 165,252 | 145,733 | 13 | % | |||||||||||||
Selling, general and administrative expenses | 34,837 | 30,144 | 16 | % | 124,967 | 118,314 | 6 | % | |||||||||||||
Operating income | 12,105 | 6,138 | 97 | % | 40,285 | 27,419 | 47 | % | |||||||||||||
Interest income | 234 | 189 | 24 | % | 827 | 758 | 9 | % | |||||||||||||
Interest expense | 286 | 550 | (48 | )% | 1,259 | 1,494 | (16 | )% | |||||||||||||
Other (expense) income, net | (159 | ) | (385 | ) | 59 | % | (87 | ) | 224 | N/M | |||||||||||
Earnings before income taxes | 11,894 | 5,392 | 121 | % | 39,766 | 26,907 | 48 | % | |||||||||||||
Income tax expense | 3,856 | 996 | 287 | % | 11,780 | 7,796 | 51 | % | |||||||||||||
Net earnings | $ | 8,038 | $ | 4,396 | 83 | % | $ | 27,986 | $ | 19,111 | 46 | % | |||||||||
Earnings per share - basic | $ | 0.28 | $ | 0.16 | 75 | % | $ | 0.98 | $ | 0.68 | 44 | % | |||||||||
Average common shares outstanding | 28,614,742 | 28,076,220 | 2 | % | 28,483,251 | 27,953,686 | 2 | % | |||||||||||||
Earnings per share - diluted | $ | 0.27 | $ | 0.15 | 80 | % | $ | 0.95 | $ | 0.67 | 42 | % | |||||||||
Average common and common | |||||||||||||||||||||
equivalent shares outstanding | 29,571,261 | 29,072,573 | 2 | % | 29,373,886 | 28,641,050 | 3 | % | |||||||||||||
Cash dividends per common share | $ | 0.1000 | $ | 0.0900 | 11 | % | $ | 0.3700 | $ | 0.3600 | 3 | % | |||||||||
Business Segments Information | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Thirteen | Thirteen | Fifty-two | Fifty-two | ||||||||||||||||||
Weeks Ended | Weeks Ended | % | Weeks Ended | Weeks Ended | % | ||||||||||||||||
March 1, 4014 | March 2, 2013 | Change | March 1, 4014 | March 2, 2013 | Change | ||||||||||||||||
Sales | |||||||||||||||||||||
Architectural Glass | $ | 75,668 | $ | 69,193 | 9 | % | $ | 293,810 | $ | 266,456 | 10 | % | |||||||||
Architectural Services | 63,531 | 51,874 | 22 | % | 203,351 | 186,570 | 9 | % | |||||||||||||
Architectural Framing Systems | 63,182 | 44,954 | 41 | % | 216,059 | 191,137 | 13 | % | |||||||||||||
Large-scale Optical | 19,210 | 19,470 | (1 | )% | 81,127 | 79,947 | 1 | % | |||||||||||||
Eliminations | (7,174 | ) | (5,757 | ) | (25 | )% | (22,902 | ) | (23,886 | ) | 4 | % | |||||||||
Total | $ | 214,417 | $ | 179,734 | 19 | % | $ | 771,445 | $ | 700,224 | 10 | % | |||||||||
Operating income (loss) | |||||||||||||||||||||
Architectural Glass | $ | 79 | $ | (428 | ) | N/M | $ | 3,861 | $ | (4,391 | ) | N/M | |||||||||
Architectural Services | 5,880 | 2,787 | 111 | % | 4,479 | (1,008 | ) | N/M | |||||||||||||
Architectural Framing Systems | 1,904 | (152 | ) | N/M | 14,930 | 14,584 | 2 | % | |||||||||||||
Large-scale Optical | 5,180 | 3,972 | 30 | % | 21,252 | 20,993 | 1 | % | |||||||||||||
Corporate and other | (938 | ) | (41 | ) | (2,188 | )% | (4,237 | ) | (2,759 | ) | (54 | )% | |||||||||
Total | $ | 12,105 | $ | 6,138 | 97 | % | $ | 40,285 | $ | 27,419 | 47 | % | |||||||||
Consolidated Condensed Balance Sheets | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
March 1, 4014 | March 2, 2013 | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Current assets | $ | 242,792 | $ | 251,841 | |||||||||||||||||
Net property, plant and equipment | 193,946 | 168,948 | |||||||||||||||||||
Other assets | 128,619 | 99,352 | |||||||||||||||||||
Total assets | $ | 565,357 | $ | 520,141 | |||||||||||||||||
Liabilities and shareholders' equity | |||||||||||||||||||||
Current liabilities | $ | 136,834 | $ | 122,167 | |||||||||||||||||
Long-term debt | 20,659 | 20,756 | |||||||||||||||||||
Other liabilities | 55,234 | 43,900 | |||||||||||||||||||
Shareholders' equity | 352,630 | 333,318 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 565,357 | $ | 520,141 | |||||||||||||||||
N/M = Not meaningful |
Apogee Enterprises, Inc. & Subsidiaries | |||||||||
Consolidated Condensed Statement of Cash Flows | |||||||||
(Unaudited) | |||||||||
Fifty-two | Fifty-two | ||||||||
Weeks Ended | Weeks Ended | ||||||||
Dollar amounts in thousands | March 1, 4014 | March 2, 2013 | |||||||
Net earnings | $ | 27,986 | $ | 19,111 | |||||
Depreciation and amortization | 26,550 | 26,529 | |||||||
Stock-based compensation | 4,661 | 4,395 | |||||||
Proceeds from new markets tax credit transaction, net of deferred costs | 7,471 | — | |||||||
Other, net | (9,583 | ) | 2,276 | ||||||
Changes in operating assets and liabilities | (4,164 | ) | (11,788 | ) | |||||
Net cash provided by operating activities | 52,921 | 40,523 | |||||||
Capital expenditures | (41,852 | ) | (34,664 | ) | |||||
Proceeds on sale of property | 806 | 1,078 | |||||||
Acquisition of businesses and intangibles, net of cash acquired | (53,301 | ) | (15 | ) | |||||
Net sales (purchases) of restricted investments | 23,915 | (4,528 | ) | ||||||
Net sales (purchases) of marketable securities | 26,458 | (17,552 | ) | ||||||
Investments in life insurance | — | (1,451 | ) | ||||||
Net cash used in investing activities | (43,974 | ) | (57,132 | ) | |||||
Proceeds from issuance of debt | — | 10,000 | |||||||
Payments on debt | (10,082 | ) | (164 | ) | |||||
Stock issued to employees, net of shares withheld | 710 | 862 | |||||||
Dividends paid | (10,764 | ) | (10,316 | ) | |||||
Other, net | 2,560 | (150 | ) | ||||||
Net cash (used in) provided by financing activities | (17,576 | ) | 232 | ||||||
Decrease in cash and cash equivalents | (8,629 | ) | (16,377 | ) | |||||
Effect of exchange rates on cash | (673 | ) | 117 | ||||||
Cash and cash equivalents at beginning of year | 37,767 | 54,027 | |||||||
Cash and cash equivalents at end of period | $ | 28,465 | $ | 37,767 |
Contact: | Mary Ann Jackson |
Investor Relations | |
952-487-7538 | |
mjackson@apog.com |
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