Apogee Enterprises, Inc., a leading supplier of value-added glass solutions for the architectural and picture framing industries, has announced fiscal 2011 first-quarter results.
During the FY11 firs…
Apogee Enterprises, Inc., a leading supplier of value-added glass solutions for the architectural and picture framing industries, has announced fiscal 2011 first-quarter results. During the FY11 first-quarter compared to the prior-year period: n revenues were USD 143.0 million, a decrease of 21%; n operating loss totalled USD 6.1 million, compared to earnings of USD 11.7 million; n loss from continuing operations came to USD 0.13 per share, versus earnings of USD 0.27 per share; n architectural segment revenues decreased 24%, with an operating loss of USD 8.6 million; n backlog ended at USD 214.9 million, compared to USD 227.5 million at the end of fiscal 2010 and USD 310.0 million in the prior-year period; n large-scale optical segment revenues were up 18%, and operating income increased 69% to USD 3.4 million; n cash and short-term investments were USD 69.6 million, compared to USD102.6 million at the end of fiscal 2010. With regards to architectural products and services for the same period; comparing to the prior year: n revenues were down 24% at USD 126.4 million. In fact, revenues declined for all businesses, also due to lower pricing in architectural glass and gaps in project timing in the installation and window businesses that continued from the fourth quarter; n operating loss came to USD 8.6 million, compared to income of USD 10.8 million, caused by declining pricing, which was lower than anticipated in response to competitive conditions, and lower volume; n Backlog ended at USD 214.9 million, versus USD 227.5 million at the end of fiscal 2010 and USD 310.0 million for the prior-year period. However, even if bid-to-award timing remains slow, bidding activity is starting to grow; n government, education and health care projects increased to almost three-quarters of the backlog; while office projects are about a quarter; and the condo and hotel/entertainment sectors are each a small percentage of future projects; n about USD 160 million – 74% of the backlog – is expected to be delivered in fiscal 2011, and about USD 55 million – or 26% – in fiscal 2012. Large-Scale Optical Technologies reported the following results: n revenues of USD 16.7 million saw an increase of 18%; n operating income was up 69% at USD 3.4 million, while operating margin was 20.2%, compared to 14.0%; n revenues and operating income saw growth as volume and mix of best-value added picture framing products increased, compared to a very weak prior-year quarter. The company also announced financial conditions as follows: n USD 20.4 million long-term debt, an increase from USD 8.4 million at the end of fiscal 2010. The amount of USD 12 million, resulting from long-term, low-interest recovery zone facility bonds established during the quarter, is included in both first-quarter long-term debt and long-term assets; n cash and short-term investments dropped to USD 69.6 mainly caused by seasonal working capital uses, as well as annual payments for incentive compensation, retirement plans and taxes; n non-cash working capital (current assets, excluding cash and short-term investments, less current liabilities) totalled USD 46.3 million, compared to USD 15.1 million at the end of fiscal 2010; n capital expenditures dropped 5% from USD 2.1 million during the prior-year period; n depreciation and amortization totalled USD 7.0 million, a decrease of 4% compared to the prior-year period. “Fiscal 2011 will be challenging for our architectural segment,” Huffer said. “As a late-cycle commercial construction company, Apogee lags its markets. “We continue to estimate that companywide revenues for the year will be down 10 to 15%,” he said. “We now anticipate a loss for the year for Apogee, as lower than expected architectural glass pricing will likely continue through fiscal 2011. Expected earnings in our large-scale optical segment will be unable to offset architectural losses. We continue to expect that the second half will be stronger than the first half for Apogee.