Slide 1: Fiscal 2020 Second Quarter Earnings Call
APOGEE ENTERPRISES, INC. Apogee Enterprises, Inc. Fiscal 2020 Second Quarter Earnings Call September 17, 2019
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 Joe Puishys Chief Executive Officer Results and outlook Jim Porter Executive Vice President and Chief Financial Officer Q&A Q2 FY2020 Earnings | September 17, 2019 | Apogee Enterprises, Inc. 3
Slide 4: Q2 Highlights
Q2 Highlights • Solid quarter, with results in-line with our expectations • Strong year-over-year improvement in Architectural Glass • Continued backlog growth in Architectural Services • Significant progress toward completing legacy EFCO projects • Making progress on key initiatives to advance our
Slide 5: FY2020 Q2 Consolidated Results
FY2020 Q2 Consolidated Results 2nd Quarter 2nd Quarter Year-to-date Year-to-date All numbers in $M, except per share and where noted FY20 FY19 FY20 FY19 Revenues $357.1 $362.1 $712.4 $698.7 Operating income 27.6 28.7 50.6 50.7 Adjusted operating income* 27.6 29.3 50.6 53.6 Operating margin 7.7% 7.9%
Slide 6: FY2020 Q2 Segment Results
FY2020 Q2 Segment Results 2nd Quarter 2nd Quarter Year-to-date Year-to-date All numbers in $M, except where noted FY20 FY19 FY20 FY19 Revenues Architectural Framing Systems $187.4 $189.9 $367.9 $368.9 Architectural Glass 99.1 88.1 199.4 165.0 Architectural Services 61.6 76.5 126.7 147.2 Large-Scale
Slide 7: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet Twenty-Six Twenty-Six All numbers in $M Weeks Ended Weeks Ended Aug 31, 2019 Sep 1, 2018 Cash flow from operations $17.8 $47.9 Capital expenditures 22.6 24.2 Free cash flow* (4.8) 23.7 Share repurchases 20.0 0 Dividends paid 9.2 8.8 Total debt 272.8 224.9 *Free cash flow
Slide 8: Outlook
Outlook FY2020 Guidance • Reaffirming our previous guidance – Revenue growth of 1 to 3% – Operating margin between 8.2 to 8.6% – Diluted EPS in the range of $3.00 to $3.20 – Tax rate approximately 24.5% – Capital expenditures of $60 to $65 million Q2 FY2020 Earnings | September 17, 2019 | Apogee Ent
Slide 9: FY2020 Segment Guidance
FY2020 Segment Guidance Segment Revenue Growth Operating Margin Architectural Framing Systems Mid-single digit 8.0% to 8.5% Architectural Glass Upper-single digit 6% to 7% Architectural Services Down ~10% ~7% Large-Scale Optical Mid-single digit ~25% Commentary • Expect continued productivity improv
Slide 10: Apogee
* Apogee enrer;orises, INC.
Slide 11: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Net Earnings and Adjusted Earnings per Diluted Common Share (Unaudited) Thirteen Thirteen Twenty-Six Twenty-Six Weeks Ended Weeks Ended Weeks Ended Weeks Ended In thousands August 31, 2019 September 1, 2018 August 31, 2019 September 1, 2018 Net
Slide 12: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Operating Income and Adjusted Operating Margin (Unaudited) Thirteen Weeks Ended August 31, 2019 Framing Systems Segment Corporate Consolidated Operating Operating Operating Operating Operating In thousands income margin income (loss) income marg
Slide 13: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Operating Income and Adjusted Operating Margin (Unaudited) Twenty-Six Weeks Ended August 31, 2019 Framing Systems Segment Corporate Consolidated Operating Operating Operating Operating Operating In thousands income margin income (loss) income ma
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures EBITDA and Adjusted EBITDA (Unaudited) Thirteen Thirteen Twenty-Six Twenty-Six Weeks Ended Weeks Ended Weeks Ended Weeks Ended In thousands August 31, 2019 September 1, 2018 August 31, 2019 September 1, 2018 Net earnings $ 19,279 $ 20,513 $ 34,722 $ 35,8