Apogee Enterprises, Inc., which develops and delivers value-added glass products and services for the architectural, large-scale optical and automotive industries, announced on 17 September 2003 its 2…
Apogee Enterprises, Inc., which develops and delivers value-added glass products and services for the architectural, large-scale optical and automotive industries, announced on 17 September 2003 its 2Q 2003 results, revised its guidance to reflect the expected sale of Harmon AutoGlass, which was announced on 10 September 2003, and lowered full-year guidance. Apogee had previously provided guidance of USD 0.14 to USD 0.18 per share for the 2Q of fiscal 2004. Excluding Harmon AutoGlass, Apogee“s 2Q guidance for continuing operations would have ranged from USD 0.10 to USD 0.12 per share. Apogee reported 2Q earnings per share from continuing operations of USD 0.09, or USD 2.5 million, which includes a charge of USD 0.01 per share, or USD 0.5 million, resulting from the closure of a small satellite architectural paint finishing facility in Atlanta, Georgia. This compares to earnings from continuing operations of USD 0.25 per share, or USD 7.1 million, in the prior-year period. All earnings per share figures refer to diluted earnings per share. Prior-year results have been reclassified to reflect Harmon AutoGlass as a discontinued operation. 2Q net results were a loss of USD 0.07 per share, or USD 1.9 million, compared with net earnings of USD 0.30 per share, or USD 8.6 million, in the previous-year period. This reflects a loss of USD 0.16 per share from discontinued operations in the 2Q, which includes a charge of USD 0.18 per share, or USD 5.0 million, due to reduction of the carrying value of Harmon AutoGlass. 2Q revenues from continuing operations totaled USD 135.8 million, down 8 percent compared to revenues of USD 147.8 million in the same period 2002. Commenting on results, Russell Huffer, Apogee chairman, president and chief executive officer acknowleged that “earnings from continuing operations were slightly below expectations” but the company was “pleased that the large-scale optical segment 2Q revenues were slightly ahead of expectations due to stronger than anticipated growth in sales of value-added picture framing glass and anti-reflective acrylic products”. Architectural revenues for the quarter were down in line with the market, and margins in glass installation were hit by isolated project management issues which the company was addressing. He added that cash flow remained solid and despite being below guidance and incurring charges from discontinued operations, long term debt was down USD 10 million from the 1Q at USD 40.4 million. As for the rest of the year, Huffer said the turnaround in commercial building was not happening as fast as expected, leading to project delays which in turn put pressure on margins: “As a result, we are lowering full-year guidance for continuing operations by USD 0.08 per share to USD 0.38 – USD 0.50, from USD 0.46 – USD 0.58 per share adjusted for the treatment of Harmon AutoGlass as a discontinued operation. Prior guidance before the discontinued operations adjustment was USD 0.50 – USD 0.65 per share. New full-year net earnings guidance including anticipated charges in discontinued operations is USD 0.04 – USD 0.27 per share.” For fiscal 2004, Huffer said the sale of Harmon AutoGlass would allow Apogee to focus on architectural and picture framing glass where the company enjoyed a solid market position and greater opportunities for growth.