Reporting improved FY2013 second-quarter earnings, Apogee’s net sales increased 6%; EPS grew by USD 0.24 per share as architectural segment swung to profitability; backlog grew 32%.
Apogee Enterprises, Inc. has announced fiscal 2013 second-quarter results. Apogee provides distinctive value-added glass solutions for the architectural and picture framing industries.
For the FY13 second quarter vs. prior-year period, revenues of USD 175.9 million were up 6%; operating income was USD 7.6 million, compared to a loss of USD 2.7 million; net earnings per share were USD 0.18, compared to a loss of USD 0.06; per share earnings from continuing operations were USD 0.17, compared to a loss of USD 0.06 – prior-year period included USD 0.05 per share of CEO transition costs.
Architectural segment revenues increased 5%, with operating income of USD 3.0 million compared to a loss of USD 5.1 million – backlog grew USD 72.0 million, or 32%, to USD 299.0 million. Large-scale optical segment revenues increased 19%, with operating income of USD 5.2 million compared to USD 3.5 million. Cash and short-term investments totalled USD 68.3 million, compared to USD 45.3 million.
“We delivered a better than expected second quarter, and in flat markets revenues grew 6% and improved earnings by 24 cents per share,” said Joseph F. Puishys, Apogee chief executive officer. “I’m pleased that the architectural segment returned to profitability in the quarter. In addition, both our architectural and large-scale optical segments grew their top and bottom lines, as well as their margins, and all our operations performed well.
“Our architectural segment backlog reached its highest level in 12 quarters and grew by more than 30% year on year, as our bidding activity strengthens,” he said. “And, we generated positive cash flow, allowing us to increase our cash and short-term investments position by USD 23 million after ongoing capital investments for productivity and growth.”
With regards to FY13 second-quarter segment and operating results vs. prior-year period, Architectural Products and Services saw revenues of USD 156.4 million were up 5%, as a result of share gains in the installation and storefront businesses; operating income was USD 3.0 million, compared to a loss of USD 5.1 million – improving from the prior-year period, with higher architectural glass pricing and the impact from storefront and installation volume growth and good operational performance throughout the segment. Backlog was USD 299.0 million, compared to USD 267.3 million in the first quarter and USD 227.0 million in the prior-year period – approximately USD 166 million, or 56%, of the backlog is expected to be delivered in fiscal 2013, and approximately USD 133 million, or 44%, in fiscal 2014.
Large-Scale Optical Technologies reported revenues of USD 19.6 million up 19%; operating income was USD 5.2 million, compared to USD 3.5 million – operating margin was 26.5%, compared to 21.4%. Significant improvement in revenues and operating income resulted from a better mix of higher value-added glass and acrylic across all picture framing sectors.
Long-term debt was USD 30.8 million, compared to USD 20.9 million at the end of fiscal 2012 – long-term debt includes USD 30.4 million in long-term, low-interest industrial revenue and recovery zone facility bonds.
Cash and short-term investments totalled USD 68.3 million, compared to USD 79.3 million at the end of fiscal 2012 and USD 45.3 million in the prior-year period, while non-cash working capital was USD 57.4 million, compared to USD 44.4 million at the end of fiscal 2012 and USD 68.2 million in the prior-year period.
Capital expenditures year to date were USD 15.7 million for productivity and growth investments. This compares to USD 3.6 million in the prior-year period, and depreciation and amortization year to date was USD 13.1 million.
“With our second-quarter earnings, the quality of our architectural backlog and the visibility this backlog provides for the remainder of the year, we are increasing our earnings outlook for fiscal 2013 to USD 0.56 to USD 0.64 per share, from USD 0.48 to USD 0.58 per share,” said Puishys.
“We continue to anticipate mid single-digit revenue growth for the full year, despite market indicators pointing to a low- to no-growth year,” he said. “We believe growth will continue to come from share gain by our architectural businesses.
“For the full year, we continue to expect positive free cash flow after spending capital of USD 25 to USD 30 million for investments to improve productivity, increase capacity and introduce new products, as well as for maintenance requirements,” Puishys said.
“I believe that our focus on operational improvements, new geographies, new products and new markets will continue to deliver improving top- and bottom-line results during fiscal 2013 and beyond,” Puishys said. “Apogee has significant opportunities to grow domestically and internationally.”