Slide 1: Fiscal 2019 Fourth Quarter Earnings Call
APOGEE ENTERPRISES, INC. Apogee Enterprises, Inc. Fiscal 2019 Fourth Quarter Earnings Call April 11, 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 Q4 FY2019 Earnings | April 11, 2019 | Apogee Enterprises, Inc. 3
Slide 4: FY2019 Highlights
FY2019 • Full-year revenue up 6%; eighth consecutive year of growth Highlights • Robust demand drove strong order flow and backlog growth • Record full-year revenue, operating income, and backlog in Architectural Services • Made significant progress toward returning Architectural Glass to prior prod
Slide 5: FY2020 Key Focus Areas
FY2020 • Execute and complete legacy EFCO projects Key Focus Areas • Complete the return of Arch. Glass to prior productivity levels • Continue to drive growth in Architectural Glass, focused on new market opportunities • Drive organic growth & margin expansion in Framing Systems • Continue sales an
Slide 6: FY2019 Q4 and Full-year Consolidated Results
FY2019 Q4 and Full-year Consolidated Results 4th Quarter 4th Quarter Full Year Full-Year All numbers in $M, except per share and where noted FY19 FY18 FY19 FY18 Revenues $346.3 $353.5 $1,403 $1,326 Operating income (loss) (14.8) 27.9 67.3 114.3 Adjusted operating income* 31.2 34.1 116.3 132.9 Operat
Slide 7: FY2019 Q4 and Full-year Segment Results
FY2019 Q4 and Full-year Segment Results 4th Quarter 4th Quarter Full Year Full Year All numbers in $M, except where noted FY19 FY18 FY19 FY18 Revenues Architectural Framing Systems $170.6 $183.5 $720.8 $677.2 Architectural Glass 103.7 92.1 367.2 384.1 Architectural Services 66.3 67.7 286.3 213.8 Lar
Slide 8: Backlog Trend
Backlog Trend Segment Backlog at Fiscal Year-End ($ in millions) • Record year-end backlogs in both 500 Architectural Services and Framing Systems 400 • Backlogs primarily tied to longer lead-time projects 300 • Roughly 50% of Architectural Services backlog expected to revenue in FY20 – remainder in
Slide 9: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet All numbers in $M FY2019 FY2018 Cash flow from operations $96.4 $127.5 Capital expenditures 60.7 53.2 Free cash flow* 35.7 74.3 Share repurchases 43.3 33.7 Dividends paid 17.9 16.4 Long-term debt 245.7 215.9 *Free cash flow is defined as cash flow from operations less cap
Slide 10: Outlook
Outlook FY2020 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 Q4 FY2019 Earnings | April 11, 2019 | Apogee Enterprises, Inc. 10
Slide 11: FY2020 Segment Guidance
FY2020 Segment Guidance Segment Revenue Growth Operating Margin Architectural Framing Systems Mid-single digit 8.0% to 8.5% Architectural Glass ~10% ~7% Architectural Services Down ~15% 6% to 7% Large-Scale Optical Mid-single digit ~25% Commentary • Expect continued productivity improvements in Arch
Slide 12: Apogee
* Apogee enrer;orises, INC.
Slide 13: Reconciliation of Q4 FY19 Non-GAAP Financial Measures
Reconciliation of Q4 FY19 Non-GAAP Financial Measures Adjusted Net Earnings and Adjusted Earnings per Diluted Common Share (Unaudited) Thirteen Thirteen Fifty-two Fifty-two Weeks Ended Weeks Ended Weeks Ended Weeks Ended In thousands March 2, 2019 March 3, 2018 March 2, 2019 March 3, 2018 Net (loss)
Slide 14: Reconciliation of Q4 FY19 Non-GAAP Financial Measures
Reconciliation of Q4 FY19 Non-GAAP Financial Measures Adjusted Operating Income and Adjusted Operating Margin (Unaudited) Thirteen Weeks Ended March 2, 2019 Framing Systems Segment Architectural Glass Segment Corporate Consolidated Operating Operating Operating Operating Operating Operating Operatin
Slide 15: Reconciliation of Full-Year FY19 Non-GAAP Financial Measures
Reconciliation of Full-Year FY19 Non-GAAP Financial Measures Adjusted Operating Income and Adjusted Operating Margin (Unaudited) Fifty-two Weeks Ended March 2, 2019 Framing Systems Segment Architectural Glass Segment Corporate Consolidated Operating Operating Operating Operating Operating Operating
Slide 16: Reconciliation of Q4 FY19 Non-GAAP Financial Measures
Reconciliation of Q4 FY19 Non-GAAP Financial Measures EBITDA and Adjusted EBITDA (Unaudited) Thirteen Thirteen Fifty-two Fifty-two Weeks Ended Weeks Ended Weeks Ended Weeks Ended In thousands March 2, 2019 March 3, 2018 March 2, 2019 March 3, 2018 Net (loss) earnings $ (12,084) $ 22,329 $ 45,694 $ 7