Slide 1: Fiscal 2023 Second Quarter Earnings Call
Apogee Enterprises, Inc. Fiscal 2023 Second Quarter Earnings Call September 20, 2022 5050 Syracuse | Denver, CO | © 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 Mark Augdahl Interim Chief Financial Officer Q&A 330 Madison Avenue | New York | LEED Gold Q2 FY2023 Earnings | September 20, 2022 Apogee Enterprises, Inc. 3
Slide 4: Executing our Enterprise Strategy
Executing our Enterprise Strategy Three Pillar Enterprise Strategy ECONOMIC ACTIVELY STRENGTHEN LEADER MANAGE CORE IN TARGET THE PORTFOLIO CAPABILITIES & MARKETS PLATFORMS To Unlock Profitable Growth FOUNDATIONAL ENABLERS • Results-driven Culture • Apogee Management System • Talent Development • Bes
Slide 5: FY2023 Second Quarter Highlights
FY2023 Second Quarter Highlights • Record quarterly revenue and earnings per share Net sales $372 M +14% year-over-year • Effectively managing pricing and costs to offset inflation • Achieving benefits from restructuring and cost saving actions Adjusted operating 8.6% • Lean efforts driving producti
Slide 6: FY2023 Priorities
FY2023 Priorities KPI ECONOMIC • Advance Lean / Continuous Improvement initiative LEADER Margin IN TARGET • Drive effective price management expansion MARKETS • Invest to grow value-add offerings • Strengthen M&A capabilities ACTIVELY ROIC MANAGE • Integrate Sotawall improvement THE PORTFOLIO • Incr
Slide 7: Consolidated Results
Consolidated Results Second quarter Year-to-date $ in millions, except EPS $ in millions, except EPS Q2 FY23 Q2 FY22 Change FY23 FY22 Change Net sales $372 $326 14% Net sales $729 $652 12% Adjusted operating income* $32.1 $17.7 81% Adjusted operating income* $65.3 $33.8 93% Adjusted operating margin
Slide 8: Segment Results
Segment Results Second quarter FY2023 Year-to-date FY2023 Adjusted Adjusted Revenue Revenue operating operating $M $M margin* margin* Architectural Framing Systems $173 11.9% Architectural Framing Systems $336 13.1% Year-over-year change 26% 430 bps Year-over-year change 23% 620 bps Architectural Se
Slide 9: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet $ in millions Twenty-Six Twenty-Six Weeks Ended Weeks Ended Commentary Aug 27, 2022 Aug 28, 2021 • Cash from operations improved significantly in Q2 Cash flow from operations $(2.6) $54.9 compared to Q1 Capital expenditures $9.3 $10.1 • Lower YTD cash flow due to increase
Slide 10: FY2023 Outlook
FY2023 Outlook Key Assumptions • Expect full year revenue growth of 8-10%, primarily driven by Framing Systems Adjusted • Expect full-year margin expansion, primarily driven by improved earnings $3.75 to $4.05 performance in Framing Systems and Glass per share* • Anticipate continued challenges from
Slide 11: Concluding Remarks
Concluding Remarks • Execution of our strategy is driving improved results • Strengthening operational execution and productivity • Effectively managing pricing and costs to offset inflation • Positioning the company to outperform, regardless of the cycle • Increasing our full-year guidance CIBC Squ
Slide 12: Q&A
Q&A Q2 FY2023 Earnings | September 20, 2022 Apogee Enterprises, Inc. 12
Slide 13: 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 27, 2022 August 28, 2021 August 27, 2022 August 28, 2021 Net earnings (loss) $ 37
Slide 14: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted operating income and adjusted operating margin (Unaudited) Three Months Ended August 27, 2022 Framing Systems Segment Glass Segment Corporate Consolidated Operating Operating Operating Operating Operating Operating Operating In thousands income
Slide 15: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted operating income and adjusted operating margin (Unaudited) Six Months Ended August 27, 2022 Framing Systems Segment Glass Segment Corporate Consolidated Operating Operating Operating Operating Operating Operating Operating In thousands income ma
Slide 16: 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 27, 2022 August 28, 2021 August 27, 2022 August 28, 2021 Net earnings (loss) $ 37,389 $ (2,116) $ 60,120 $ 8,701 Income tax
Slide 17: Fiscal 2022 Pro Forma Segment Results
Fiscal 2022 Pro Forma Segment Results Fiscal 2022 Reclassified Pro Forma Segment Data (unaudited) Net Sales for FY2022 Pro Forma Net Sales for Reclassified Segments for FY2022* (in thousands) Q1 Q2 Q3 Q4 FY 2022 (in thousands) Q1 Q2 Q3 Q4 FY 2022 Architectural Framing Systems 151,840 149,972 151,665