Slide 1: Fiscal 2022 Second Quarter Earnings Call
Apogee Enterprises, Inc. Fiscal 2022 Second Quarter Earnings Call September 21, 2021 5050 Syracuse | Denver, CO | LEED Gold © JC Buck/Black Bike Productions LLC
Slide 2: Non-GAAP measures & forward-looking statements
Non-GAAP measures & forward-looking statements This presentation contains non-GAAP financial measures which the company uses to evaluate historical and prospective financial performance, measure operational profitability on a consistent basis, and provide enhanced transparency to the investment comm
Slide 3: Agenda
Agenda Introductory remarks Ty Silberhorn Chief Executive Officer Financial results and outlook Nisheet Gupta Executive Vice President and Chief Financial Officer Q&A 330 Madison Avenue | New York | LEED Gold Q2 FY2022 Earnings | September 21, 2021 Apogee Enterprises, Inc. 3
Slide 4: FY2022 second quarter highlights
FY2022 second quarter highlights • Sequential improvement in adjusted margin & earnings compared to Q1 • Continued strong performance in Architectural Services and LSO Net sales $326 M +2% year-over-year • Strong cash flow and financial position; returning cash to shareholders • Several headwinds im
Slide 5: FY2022 priorities
FY2022 priorities • Health and safety of our employees People • Talent management and development Operational • Rigor, focus and urgency on the vital few execution • Drive simplification and standardization Enterprise • Continue to build a more competitive cost model transformation • Strengthen core
Slide 6: Beginning to implement our new strategy
Beginning to implement our new strategy Focus, simplification, and improved execution to accelerate profitable growth Moving to become the economic leader in our target markets • Driving value for customers through differentiated offerings • Clear go-to-market strategies • Relentless focus on operat
Slide 7: Consolidated results
Consolidated results Second quarter Year-to-date $ in millions, except EPS $ in millions, except EPS Q2 FY22 Q2 FY21 Change FY22 FY21 Change Net sales $326 $319 2% Net sales $652 $609 7% Adjusted operating income* $17.7 $25.5 (30)% Adjusted operating income* $33.8 $33.4 1% Adjusted operating margin*
Slide 8: Segment results
Segment results Second quarter FY2022 Year-to-date FY2022 Adjusted Adjusted Revenue Revenue operating operating $M $M margin* margin* Architectural Framing Systems $150 6.9% Architectural Framing Systems $302 6.1% Year-over-year change (2)% (70) bps Year-over-year change -% (20) bps Architectural Gl
Slide 9: Cash flow and balance sheet
Cash flow and balance sheet $ in millions Twenty-Six Twenty-Six Weeks Ended Weeks Ended Aug 28, 2021 Aug 29, 2020 Highlights Cash flow from operations $54.9 $85.3 • Continued strong cash flow Capital expenditures $10.1 $14.2 • Returned $32.5 million of cash to shareholders YTD Free cash flow* $44.8
Slide 10: FY2022 outlook
FY2022 outlook Key Planning Assumptions • Continued softness in architectural end markets • Expect continued pressure from inflation, primarily in Framing & Glass • Working to mitigate inflation through pricing, and continued progress Adjusted on cost and productivity initiatives earnings $2.20 to $
Slide 11: Concluding remarks
Concluding remarks • Driving progress in a challenging operating environment • Sequential performance improvements vs. Q1 • Strong cash flow and balance sheet • Continued headwinds from inflation and supply chain challenges • Taking action to protect margins in the near-term • Beginning to execute o
Slide 12: Q&A
Q&A Q2 FY2022 Earnings | September 21, 2021 Apogee Enterprises, Inc. 12
Slide 13: Backlog trend
Backlog trend Segment backlog at period end ($M) 700 600 500 400 Architectural Services 300 Framing Systems 200 100 0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Q2 FY22 Q2 FY2022 Earnings | September 21, 2021 Apogee Enterprises, Inc. 13
Slide 14: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted net earnings and adjusted earnings per diluted common share (Unaudited) Three Months Ended Three Months Ended Six Months Ended Six Months Ended In thousands August 28, 2021 August 29, 2020 August 28, 2021 August 29, 2020 Net (loss) earnings $ (2
Slide 15: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted operating income and adjusted operating margin (Unaudited) Three Months Ended August 28, 2021 Framing Systems Segment Glass Segment Corporate Consolidated Operating Operating Operating Operating Operating Operating Operating In thousands income
Slide 16: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted operating income and adjusted operating margin (Unaudited) Six Months Ended August 28, 2021 Framing Systems Segment Glass Segment Corporate Consolidated Operating Operating Operating Operating Operating Operating Operating In thousands income ma
Slide 17: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures EBITDA and Adjusted EBITDA (Unaudited) Three Months Ended Three Months Ended Six Months Ended Six Months Ended In thousands August 28, 2021 August 29, 2020 August 28, 2021 August 29, 2020 Net (loss) earnings $ (2,116) $ 17,658 $ 8,701 $ 20,534 Income tax