Apogee Enterprises, Inc. · NASDAQ:APOG
Apogee Enterprises — Q1 2025 Earnings Presentation
18 slides from Apogee Enterprises's earnings presentation, Jun 27, 2024
Slide 1: Fiscal 2025 First Quarter Earnings Call
Apogee Enterprises, Inc. Fiscal 2025 First Quarter Earnings Call June 27, 2024 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 its historical and prospective financial performance, measure operational profitability on a consistent basis, as a factor in determining executive compensation, a
Slide 3: Agenda
Agenda Introductory remarks Ty Silberhorn Chief Executive Officer Financial results and outlook Matt Osberg Chief Financial Officer Q&A Brooklyn Health Center, New York Photo courtesy of Terry Wieckert Q1 FY2025 Earnings | June 27, 2024 Apogee Enterprises, Inc. 3
Slide 4: FY2025 First Quarter Highlights
FY2025 First Quarter Highlights • Lower sales volume driven by softening end markets Net sales $332 M (8)% year-over-year • Solid execution, cost management, and productivity gains drove significant adjusted margin improvement, offsetting Adjusted lower net sales operating $42.5 M +26% year-over-yea
Slide 5: Executing our Enterprise Strategy
Executing our Enterprise Strategy Create Peak Value by building ECONOMIC ACTIVELY STRENGTHEN differentiated LEADER MANAGE CORE IN TARGET CAPABILITIES & businesses with MARKETS THE PORTFOLIO PLATFORMS strong operational FOUNDATIONAL ENABLERS execution • Results-driven Culture • Apogee Management Syst
Slide 6: Market Outlook
Market Outlook FMI forecast for construction put in place in the U.S. by building type Forecasted 2024 Forecasted Put-in-Place Building Type Growth Rate Spend ($ billions) Multifamily residential -8% $133 Office (excluding data centers) -2% $74 Shifting market dynamics driving Commercial -2% $130 co
Slide 7: Increasing our focus on growth
Increasing our focus on growth Capture share ➢ Geographic expansion ➢ Improved product & service performance Embedding Focus on higher growth opportunities a Growth ➢ Architectural product diversification Mindset ➢ Expansion into adjacent markets Invest to accelerate growth ➢ Organic investments ➢ A
Slide 8: Consolidated Results
Consolidated Results $ in millions, except EPS Q1 FY25 Q1 FY24 Change Commentary • Net sales declined due to lower volumes in Framing Systems, Net sales $331.5 $361.7 (8.3)% Glass, and LSO, partially offset by growth in Services. Adjusted operating income* $42.5 $33.8 25.9% • Adjusted operating marg
Slide 9: Segment Results
Segment Results First Quarter FY2025 Segment Adjusted net sales operating $M margin* % Architectural Framing Systems $133.2 14.5% Year-over-year change (18.9)% 240 bps Architectural Glass $86.7 19.7% Year-over-year change (10.8)% 270 bps Architectural Services $99.0 5.7% Year-over-year change 10.7%
Slide 10: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet $ in millions Q1 FY2025 Q1 FY2024 Commentary Cash flow from operations $5.5 $21.3 Capital expenditures $7.2 $7.4 • Lower cash from operations primarily driven by increased working capital requirements compared to last year’s Q1 Free cash flow* $(1.7) $13.9 • Q1 cash flow
Slide 11: FY2025 Outlook
FY2025 Outlook Additional details (7)% to (4)% • Net sales impacted by: Net sales compared to FY24 ‒ ~2 percentage point decline related to reverting to a 52-week year ‒ ~1 percentage point decline related to Project Fortify • Reversion to 52-week year expected to reduce adjusted diluted EPS by ~$0.
Slide 12: Concluding Remarks
Concluding Remarks • A good start to fiscal 2025 • Delivered significant profit growth despite lower sales • Continued progress to advance our strategy • Strong adjusted diluted EPS* growth • Strong financial position and deploying capital to drive value • Raising our full year adjusted diluted EPS*
Slide 13: Q&A
Q&A Q1 FY2025 Earnings | June 27, 2024 Apogee Enterprises, Inc. 13
Slide 14: 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 In thousands June 1, 2024 May 27, 2023 Net earnings $ 31,011 $ 23,576 Restructuring charges (1) 1,122 — Income tax impact on above adjustments (2) (275) — Adjust
Slide 15: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted operating income (loss) and adjusted operating margin (Unaudited) Three Months Ended June 1, 2024 Architectural Architectural Architectural Corporate In thousands Framing Systems Glass Services LSO and Other Consolidated Operating income (loss)
Slide 16: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin (Earnings before interest, taxes, depreciation, and amortization) (Unaudited) Three Months Ended In thousands June 1, 2024 May 27, 2023 Net earnings $ 31,011 $ 23,576 Income tax expense 10,063 7,867 Int
Slide 17: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Net Leverage Ratio (Unaudited) Net Debt (in thousands) June 1, 2024 March 2, 2024 Long-term debt $ 77,000 $ 62,000 Less: cash and cash equivalents 30,363 37,216 Net debt $ 46,637 $ 24,784 Trailing 12 months, ending Trailing 12 months, ending Adjusted EBI
Slide 18: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Fiscal 2025 Outlook Reconciliation of Fiscal 2025 outlook of estimated diluted earnings per share to adjusted diluted earnings per share (Unaudited) Fiscal Year Ending March 1, 2025 Low Range High Range Diluted earnings per share $ 4.56 $ 4.88 Restructur