Slide 1: Fiscal 2023 First Quarter Earnings Call
Apogee Enterprises, Inc. Fiscal 2023 First Quarter Earnings Call June 23, 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 Nisheet Gupta Executive Vice President and Chief Financial Officer Q&A 330 Madison Avenue | New York | LEED Gold Q1 FY2023 Earnings | June 23, 2022 Apogee Enterprises, Inc. 3
Slide 4: FY2023 First Quarter Highlights
FY2023 First Quarter Highlights • Double-digit growth in Framing Systems and Services Net sales $357 M +9% year-over-year • Effectively managing pricing and costs to offset inflation • Achieving benefits from restructuring and cost saving actions Operating 9.3% • Lean efforts driving improved produc
Slide 5: 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 6: FY2023 Priorities
FY2023 Priorities Bolded: investments and results evident in our Q1 performance 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 ROI
Slide 7: Consolidated Results
Consolidated Results First Quarter FY2023 $ in millions, except EPS Q1 FY23 Q1 FY22 Change Net sales $357 $326 9% Gross margin 24.0% 20.8% 320 bps Operating income $33.2 $16.0 107% Operating margin 9.3% 4.9% 440 bps EBITDA* $42.8 $28.7 49% Diluted EPS $1.00 $0.42 138% *Non-GAAP metric, see reconcili
Slide 8: Segment Results
Segment Results First Quarter FY2023 Operating Revenue margin Architectural Framing Systems $163 14.5% Year-over-year change +19% +840 bps Architectural Services $103 2.8% Year-over-year change +14% (190) bps Architectural Glass $76 6.8% Year-over-year change (8)% +420 bps Large-Scale Optical $25 25
Slide 9: Aluminum Cost Trend
Aluminum Cost Trend • Aluminum is Apogee’s largest raw material cost, especially in Framing Systems • Longer lead time projects typically hedged • Shorter lead time projects impacted by volatility in market pricing • Q1 results benefitted from timing of inventory flows and pricing actions • We assum
Slide 10: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet $ in millions Q1 FY2023 Q1 FY2022 Commentary Cash flow from operations $(30.5) $6.9 • Lower cash flow due to working capital to support growth Capital expenditures $5.1 $4.7 • As typical, Q1 cash flow was impacted by the timing of Free cash flow* $(35.6) $2.2 certain annu
Slide 11: FY2023 Outlook
FY2023 Outlook Key Assumptions • Expect continued revenue growth, primarily driven by Framing Systems • Revenue in other three segments roughly flat vs. F22 Adjusted earnings $3.50 to $3.90 • Expect year-over-year margin expansion, primarily driven by improved performance in Framing Systems and Glas
Slide 12: Concluding Remarks
Concluding Remarks • Execution of our strategy is driving improved results • Effectively managing pricing and costs to offset inflation • Strengthening operational execution and productivity • Well positioned to capitalize/mitigate economic or market shifts • Positioned to deliver continued year-ove
Slide 13: Q&A
Q&A Q1 FY2023 Earnings | June 23, 2022 Apogee Enterprises, Inc. 13
Slide 14: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures EBITDA (Unaudited) Three Months Three Months Ended Ended In thousands May 28, 2022 May 29, 2021 Net earnings $22,731 $ 10,817 Income tax expense 7,969 3,672 Interest expense, net 1,206 1,238 Depreciation and amortization 10,849 12,980 EBITDA $ 42,755 $ 2
Slide 15: 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