Apogee Enterprises, Inc. · NASDAQ:APOG
Apogee Enterprises — Q3 2024 Earnings Presentation
15 slides from Apogee Enterprises's earnings presentation, Dec 21, 2023
Slide 1: Fiscal 2024 Third Quarter Earnings Call
Apogee Enterprises, Inc. Nasdaq: APOG Fiscal 2024 Third Quarter Earnings Call December 21, 2023 Taxation Building – Trenton, NJ © Greg West Photography
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 Matt Osberg Chief Financial Officer Q&A University of Washington, Nanoengineering & Sciences Building | Seattle, WA Q3 FY2024 Earnings | December 21, 2023 Apogee Enterprises, Inc. 3
Slide 4: FY2024 Third Quarter Highlights
FY2024 Third Quarter Highlights Q3 FY2024 Results • Second consecutive quarter of double-digit adjusted diluted EPS growth Net sales $340 M (8)% year-over-year • Third quarter and YTD operating margins above 10% target • Continued sales growth and margin expansion in Glass Operating $37.6 M income +
Slide 5: Executing our Enterprise Strategy
Executing our Enterprise Strategy Create Peak Value by building ECONOMIC ACTIVELY STRENGTHEN differentiated LEADER MANAGE CORE IN TARGET CAPABILITIES & businesses with MARKETS THE PORTFOLIO PLATFORMS strong operational FOUNDATIONAL ENABLERS execution • Results-driven Culture • Apogee Management Syst
Slide 6: Consolidated Results
Consolidated Results Third quarter Year-to-date $ in millions, except EPS $ in millions, except EPS Q3 FY24 Q3 FY23 Change FY24 FY23 Change Net sales $339.7 $367.8 (7.6)% Net sales $1,055.1 $1,096.6 (3.8)% Operating income $37.6 $34.8 8.3% Operating income $112.0 $100.0 11.9% Operating margin 11.1%
Slide 7: Segment Results
Segment Results Third quarter FY2024 Year-to-date FY2024 Segment Segment Segment Segment net sales operating net sales operating $M margin $M margin Architectural Framing Systems $139.6 12.2% Architectural Framing Systems $462.5 12.5% Year-over-year change (15.4)% (120) bps Year-over-year change (7.
Slide 8: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet $ in millions Thirty-Nine Thirty-Nine Weeks Ended Weeks Ended Highlights Nov 25, 2023 Nov 26, 2022 Cash flow from operations $129.3 $51.1 • Year-over-year cash flow increase primarily driven by Capital expenditures $27.0 $18.1 improvement in working capital Free cash flow
Slide 9: FY2024 Outlook
FY2024 Outlook Key Assumptions Adjusted • FY2024 is a 53-week year, with an extra week in the fourth quarter diluted $4.55 to $4.70 • Now expect net sales decline of approximately 3% compared to FY2023 EPS* • Continue to expect long-term average tax rate of approximately 24.5% Increased from previou
Slide 10: Concluding Remarks
Concluding Remarks • Another strong quarter for Apogee • Execution of our strategy is driving operational performance • Continued margin expansion and adjusted diluted EPS growth • Strong cash flow and balance sheet provide flexibility to create value • Increasing our full-year adjusted diluted EPS
Slide 11: Q&A
Q&A Q3 FY2024 Earnings | December 21, 2023 Apogee Enterprises, Inc. 11
Slide 12: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted net earnings and adjusted diluted earnings per share (Unaudited) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended In thousands November 25, 2023 November 26, 2022 November 25, 2023 November 26, 2022 Net earnings $ 26,974
Slide 13: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures EBITDA and Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) (Unaudited) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended In thousands November 25, 2023 November 26, 2022 November 25, 2023 November
Slide 14: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Net Leverage (Unaudited) Net Debt (in thousands) November 25, 2023 February 25, 2023 Long-term debt $ 100,666 $ 169,837 Less: cash and cash equivalents 23,407 19,924 Net debt $ 77,259 $ 149,913 Trailing 12 months, ending Trailing 12 months, ending Adjust
Slide 15: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Fiscal 2024 Outlook Reconciliation of Fiscal 2024 outlook of estimated diluted earnings per share to adjusted diluted net earnings per share (Unaudited) Fiscal Year Ending March 2, 2024 Low Range High Range Diluted earnings per share $ 4.71 $ 4.86 NMTC s