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 June 24, 2015. |
• | Revenues up 14% |
• | Operating income up 133% |
• | EPS up 98% |
• | FY16 outlook: EPS range increased to $2.10-$2.25 on 10-15% revenue growth |
• | Revenues of $240.0 million were up 14 percent. |
• | Operating income of $18.2 million was up 133 percent. |
• | Earnings per share of $0.41 were up 98 percent. |
• | Backlog of $470.8 million was up 22 percent. |
• | Revenues of $101.2 million were up 27 percent on strong volume with increased pricing and improved mix. |
• | Operating income grew to $8.3 million, compared to $2.8 million. |
◦ | Operating margin expanded 470 basis points to 8.2 percent, compared to 3.5 percent. |
◦ | The segment benefitted from operating leverage on volume growth, improved pricing and productivity in the United States, and successfully ramping up the Utah facility. |
• | Revenues of $55.7 million were up 8 percent. |
• | Operating income was $0.9 million, compared to $0.2 million. |
◦ | Operating margin expanded 130 basis points to 1.7 percent, compared to 0.4 percent, as project margins continue to improve. |
• | Revenues of $71.9 million were up 12 percent, with growth across all U.S. businesses. |
• | Operating income grew to $5.3 million, compared to $1.9 million. |
◦ | Operating margin expanded 430 basis points to 7.3 percent, compared to 3.0 percent. |
◦ | Improvement resulted from leveraging segment volume growth and increased pricing. |
• | Revenues of $20.2 million were up 1 percent. |
• | Operating income of $4.9 million was up 23 percent from $4.0 million. |
◦ | Operating margin expanded 430 basis points to 24.1 percent, compared to 19.8 percent. |
◦ | A higher value-added product mix and strong productivity improvements contributed to the increased operating margin. |
• | Backlog of $470.8 million was down 4 percent from the backlog of $490.8 million in the fourth quarter, and up 22 percent from $385.1 million in the prior-year period. |
◦ | Approximately $311 million, or 66 percent, of the backlog is expected to be delivered in fiscal 2016, and approximately $160 million, or 34 percent, in fiscal 2017 and beyond. |
• | Cash and short-term investments totaled $63.5 million, compared to $52.5 million at the end of fiscal 2015 and $17.7 million in the prior-year period. |
• | Debt was $21.8 million, compared to $20.6 million in the prior-year period. Almost all the debt is long-term, low-interest industrial revenue bonds. |
• | Non-cash working capital was $98.3 million, compared to $97.5 million at the end of fiscal 2015 and $91.6 million in the prior-year period. |
• | Capital expenditures in the first quarter were $8.8 million, compared to $8.7 million in the prior-year period. |
• | Depreciation and amortization in the first quarter was $7.7 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. |
• | Backlog is defined as the dollar amount of revenues Apogee expects to recognize in the future from firm contracts or orders received, as well as those that are in progress. |
• | Free cash flow is defined as net cash flow provided by operating activities, minus capital expenditures. |
• | Non-cash working capital is defined as current assets, excluding cash and short-term available for sale securities, short-term restricted investments and current portion of long-term debt, less current liabilities. |
Apogee Enterprises, Inc. & Subsidiaries | ||||||||||
Consolidated Condensed Statement of Income | ||||||||||
(Unaudited) | ||||||||||
Thirteen | Thirteen | |||||||||
Weeks Ended | Weeks Ended | % | ||||||||
Dollar amounts in thousands, except for per share amounts | May 30, 2015 | May 31, 2014 | Change | |||||||
Net sales | $ | 239,962 | $ | 210,883 | 14 | % | ||||
Cost of goods sold | 184,374 | 169,445 | 9 | % | ||||||
Gross profit | 55,588 | 41,438 | 34 | % | ||||||
Selling, general and administrative expenses | 37,364 | 33,621 | 11 | % | ||||||
Operating income | 18,224 | 7,817 | 133 | % | ||||||
Interest income | 237 | 249 | (5 | )% | ||||||
Interest expense | 167 | 193 | (13 | )% | ||||||
Other (expense) income, net | 48 | 1,283 | (96 | )% | ||||||
Earnings before income taxes | 18,342 | 9,156 | 100 | % | ||||||
Income tax expense | 6,216 | 3,054 | 104 | % | ||||||
Net earnings | $ | 12,126 | $ | 6,102 | 99 | % | ||||
Earnings per share - basic | $ | 0.42 | $ | 0.21 | 97 | % | ||||
Average common shares outstanding | 29,044,481 | 28,777,464 | 1 | % | ||||||
Earnings per share - diluted | $ | 0.41 | $ | 0.21 | 98 | % | ||||
Average common and common equivalent shares outstanding | 29,478,963 | 29,384,879 | — | % | ||||||
Cash dividends per common share | $ | 0.1100 | $ | 0.1000 | 10 | % | ||||
Business Segments Information | ||||||||||
(Unaudited) | ||||||||||
Thirteen | Thirteen | |||||||||
Weeks Ended | Weeks Ended | % | ||||||||
May 30, 2015 | May 31, 2014 | Change | ||||||||
Sales | ||||||||||
Architectural Glass | $ | 101,175 | $ | 79,634 | 27 | % | ||||
Architectural Services | 55,652 | 51,616 | 8 | % | ||||||
Architectural Framing Systems | 71,900 | 64,222 | 12 | % | ||||||
Large-scale Optical | 20,219 | 20,061 | 1 | % | ||||||
Eliminations | (8,984 | ) | (4,650 | ) | (93 | )% | ||||
Total | $ | 239,962 | $ | 210,883 | 14 | % | ||||
Operating income (loss) | ||||||||||
Architectural Glass | $ | 8,283 | $ | 2,800 | 196 | % | ||||
Architectural Services | 942 | 184 | 412 | % | ||||||
Architectural Framing Systems | 5,261 | 1,931 | 172 | % | ||||||
Large-scale Optical | 4,870 | 3,964 | 23 | % | ||||||
Corporate and other | (1,132 | ) | (1,062 | ) | (7 | )% | ||||
Total | $ | 18,224 | $ | 7,817 | 133 | % | ||||
Consolidated Condensed Balance Sheets | ||||||||||
(Unaudited) | ||||||||||
May 30, 2015 | February 28, 2015 | |||||||||
Assets | ||||||||||
Current assets | $ | 297,744 | $ | 298,975 | ||||||
Net property, plant and equipment | 192,374 | 193,540 | ||||||||
Other assets | 117,765 | 119,542 | ||||||||
Total assets | $ | 607,883 | $ | 612,057 | ||||||
Liabilities and shareholders' equity | ||||||||||
Current liabilities | $ | 135,979 | $ | 149,028 | ||||||
Long-term debt | 21,727 | 20,587 | ||||||||
Other liabilities | 59,273 | 59,966 | ||||||||
Shareholders' equity | 390,904 | 382,476 | ||||||||
Total liabilities and shareholders' equity | $ | 607,883 | $ | 612,057 | ||||||
N/M = Not meaningful |
Apogee Enterprises, Inc. & Subsidiaries | |||||||||
Consolidated Condensed Statement of Cash Flows | |||||||||
(Unaudited) | |||||||||
Thirteen | Thirteen | ||||||||
Weeks Ended | Weeks Ended | ||||||||
Dollar amounts in thousands | May 30, 2015 | May 31, 2014 | |||||||
Net earnings | $ | 12,126 | $ | 6,102 | |||||
Depreciation and amortization | 7,741 | 6,766 | |||||||
Stock-based compensation | 1,040 | 1,250 | |||||||
Other, net | (3,324 | ) | (2,531 | ) | |||||
Changes in operating assets and liabilities | 3,272 | (10,391 | ) | ||||||
Net cash provided by operating activities | 20,855 | 1,196 | |||||||
Capital expenditures | (8,753 | ) | (8,738 | ) | |||||
Proceeds on sale of property | 1 | 201 | |||||||
Net sales of restricted investments | — | 798 | |||||||
Net (purchases) sales of marketable securities | (34,091 | ) | 384 | ||||||
Investments in life insurance | (823 | ) | — | ||||||
Net cash used in investing activities | (43,666 | ) | (7,355 | ) | |||||
Net proceeds from revolving credit agreement | 1,199 | — | |||||||
Payments on debt | (10 | ) | (12 | ) | |||||
Shares withheld for taxes, net of stock issued to employees | (2,028 | ) | (3,164 | ) | |||||
Repurchase and retirement of common stock | — | (863 | ) | ||||||
Dividends paid | (3,215 | ) | (3,078 | ) | |||||
Other, net | 3,619 | 1,589 | |||||||
Net cash used in financing activities | (435 | ) | (5,528 | ) | |||||
Decrease in cash and cash equivalents | (23,246 | ) | (11,687 | ) | |||||
Effect of exchange rates on cash | (735 | ) | 315 | ||||||
Cash and cash equivalents at beginning of year | 52,185 | 28,465 | |||||||
Cash and cash equivalents at end of period | $ | 28,204 | $ | 17,093 |
Contact: | Mary Ann Jackson |
Investor Relations | |
952-487-7538 | |
mjackson@apog.com |
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