Apogee Enterprises, Inc. · NASDAQ:APOG
Apogee Enterprises — Q3 2022 Earnings Presentation
15 slides from Apogee Enterprises's earnings presentation, Dec 21, 2021
Slide 1: Fiscal 2022 Third Quarter Earnings Call
Fiscal 2022 Third Quarter Earnings Call December 21, 2021 Nano Engineering & Science Building | University of Washington | LEED Silver Photo by: Aaron Leitz Photography, courtesy of ZGF
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 Q3 FY2022 Earnings | December 21, 2021 Apogee Enterprises, Inc. 3
Slide 4: FY2022 Third-Quarter Highlights
FY2022 Third-Quarter Highlights • Revenue up 6.6%, with growth in three segments Net sales $334 M • Sequential margin expansion & adjusted earnings growth compared to Q2 +6.6% year-over-year • Record revenue and strong profitability in Architectural Services Adjusted • Taking action to mitigate supp
Slide 5: Executing our New Enterprise Strategy
Executing our New 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 •
Slide 6: Consolidated Results
Consolidated Results Third quarter Year-to-date $ in millions, except EPS $ in millions, except EPS Q3 FY22 Q3 FY21 Change FY22 FY21 Change Net sales $334 $314 7% Net sales $986 $922 7% Adjusted operating income* $21.1 $31.8 (34)% Adjusted operating income* $54.9 $65.2 (16)% Adjusted operating margi
Slide 7: Segment Results
Segment Results Third quarter FY2022 Year-to-date FY2022 Adjusted Adjusted Revenue Revenue operating operating $M $M margin* margin* Architectural Framing Systems $152 7.0% Architectural Framing Systems $453 6.4% Year-over-year change 11% 170 bps Year-over-year change 3% 40 bps Architectural Glass $
Slide 8: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet $ in millions Thirty-Nine Thirty-Nine Weeks Ended Weeks Ended Nov 27, 2021 Nov 28, 2020 Highlights Cash flow from operations $86.3 $120.5 • Continued strong cash flow Capital expenditures $13.1 $17.1 • Lowest net debt level since FY2017 Free cash flow* $73.2 $103.4 • No s
Slide 9: FY2022 Outlook
FY2022 Outlook Key Assumptions • Adjusted earnings guidance excludes the impact of restructuring and impairment costs • Expect continued pressure from inflation, primarily in Framing & Glass Adjusted • Working to mitigate inflation through pricing, and continued progress earnings $2.25 to $2.40 on c
Slide 10: Concluding Remarks
Concluding Remarks • Continued progress in a challenging operating environment • Sequential performance improvements vs. Q2 • Strong cash flow and balance sheet • Taking action to offset inflation and supply chain challenges • Executing our new strategy to position for the long-term Wolf Point East
Slide 11: Q&A
Q&A Q3 FY2022 Earnings | December 21, 2021 Apogee Enterprises, Inc. 11
Slide 12: 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 Nine Months Ended Nine Months Ended In thousands November 27, 2021 November 28, 2020 November 27, 2021 November 28, 2020 Net earnings $
Slide 13: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted operating income and adjusted operating margin (Unaudited) Three Months Ended November 27, 2021 Framing Systems Segment Glass Segment LSO Segment Corporate Consolidated Operating Operating Operating Operating Operating Operating Operating Operat
Slide 14: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted operating income and adjusted operating margin (Unaudited) Nine Months Ended November 27, 2021 Framing Systems Segment Glass Segment LSO Segment Corporate Consolidated Operating Operating Operating Operating Operating Operating Operating Operati
Slide 15: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures EBITDA and Adjusted EBITDA (Unaudited) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended In thousands November 27, 2021 November 28, 2020 November 27, 2021 November 28, 2020 Net earnings $11,057 $ 37,273 $ 19,759 $ 57,807 Income t