Apogee Enterprises, Inc. · NASDAQ:APOG
Apogee Enterprises — Q1 2024 Earnings Presentation
16 slides from Apogee Enterprises's earnings presentation, Jun 23, 2023
Slide 1: Fiscal 2024 First Quarter Earnings Call
Apogee Enterprises, Inc. Fiscal 2024 First Quarter Earnings Call June 23, 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 Q1 FY2024 Earnings | June 23, 2023 Apogee Enterprises, Inc. 3
Slide 4: FY2024 First Quarter Highlights
FY2024 First Quarter Highlights Q1 FY2024 Results • Revenue & EPS growth, driven by solid execution Net sales $362 M • Strong margin performance, with 9.3% operating margin +1.4% year-over-year • Significant operating income & margin growth in Architectural Glass Operating $33.8 M • Continued strong
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: Architectural Glass – Building an Economic Leader
Architectural Glass – Building an Economic Leader Glass Segment Executing our Strategy Adjusted Operating Margin* Trend 17.0% • Deployed the Apogee Management System – Significant productivity gains – Improved quality, service, and delivery 11.7% • Facility consolidation drove sustainable cost impro
Slide 7: Segment Margin Targets
Segment Margin Targets Increasing our margin expectations for Architectural Glass Annual segment margin targets Previous Targets New Targets (last updated in April 2022) (as of June 2023) Framing 9-12% No change Systems Glass 7-10% 10-15% Services 7-9% No change LSO 20%+ No change Q1 FY2024 Earnings
Slide 8: FY2024 Priorities
FY2024 Priorities Continuing to execute our three-pillar strategy ECONOMIC • Invest in organic growth initiatives LEADER IN TARGET • Deliver sustainable productivity gains through AMS deployment MARKETS ACTIVELY • Continue to strengthen M&A capabilities and build pipeline MANAGE THE PORTFOLIO • Grow
Slide 9: Consolidated Results
Consolidated Results $ in millions, except EPS Q1 FY24 Q1 FY23 Change Highlights • Revenue growth driven by strong growth in Architectural Net sales $361.7 $356.6 1.4% Glass, partially offset by lower volume in Architectural Services Operating income $33.8 $33.2 1.7% • Operating income growth primar
Slide 10: Segment Results
Segment Results First Quarter FY2024 Segment Segment net sales operating $M margin Architectural Framing Systems $164.2 12.1% Year-over-year change 0.5% (240) bps Architectural Glass $97.2 17.0% Year-over-year change 27.5% 1,020 bps Architectural Services $89.4 (0.7)% Year-over-year change (13.5)% (
Slide 11: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet $ in millions Q1 FY2024 Q1 FY2023 Highlights Cash flow from operations $21.3 $(30.5) • Increased cash from ops primarily driven by lower working capital requirements compared to last year’s first quarter Capital expenditures $7.4 $5.1 Free cash flow* $13.9 $(35.6) • Incre
Slide 12: FY2024 Outlook
FY2024 Outlook Key Assumptions • FY2024 will be a 53-week year, with an extra week in the fourth quarter • Expect flat to slightly declining revenue compared to FY2023, reflecting lower volume in Architectural Services and Framing Systems, partially offset Diluted by growth in Architectural Glass Ea
Slide 13: Concluding Remarks
Concluding Remarks • A strong start to fiscal 2024 • Continued progress to advance our strategy and improve execution • Solid margin performance, led by results in Glass • Increased cash flow and deploying capital to drive value • Positioned to drive further progress toward our financial goals • Inc
Slide 14: Q&A
Q&A Q1 FY2024 Earnings | June 23, 2023 Apogee Enterprises, Inc. 14
Slide 15: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Earnings before interest, taxes, depreciation and amortization (EBITDA) (Unaudited) Three Months Three Months Ended Ended In thousands May 27, 2023 May 28, 2022 Net earnings $23,576 $ 22,731 Income tax expense 7,867 7,969 Interest expense, net 2,036 1,20
Slide 16: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Architectural Glass segment adjusted operating income and adjusted operating margin (unaudited) (U.S. Dollars in thousands) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Architectural Glass segment net sales $ 83,031 $ 79,373 $