Slide 1: Fiscal 2024 Second Quarter Earnings Call
Apogee Enterprises, Inc. Fiscal 2024 Second Quarter Earnings Call September 19, 2023 5050 Syracuse | Denver, CO | © JC Buck/Black Bike Productions LLC
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 Q2 FY2024 Earnings | September 19, 2023 Apogee Enterprises, Inc. 3
Slide 4: FY2024 Second Quarter Highlights
FY2024 Second Quarter Highlights Q2 FY2024 Results • Operating margin of 11.5%, exceeding our target of “>10%” Net sales $354 M • Adjusted diluted EPS grew 28% to a record $1.36 (5)% year-over-year • Strong revenue growth and margin expansion in Glass Operating $40.6 M • Sequential margin improvemen
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 (AMS) • Talent Development
Slide 6: 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 7: Consolidated Results
Consolidated Results Second quarter Year-to-date $ in millions, except EPS $ in millions, except EPS Q2 FY24 Q2 FY23 Change FY24 FY23 Change Net sales $353.7 $372.1 (5.0)% Net sales $715.4 $728.7 (1.8)% Operating income $40.6 $32.1 26.4% Operating income $74.3 $65.3 13.8% Operating margin 11.5% 8.6%
Slide 8: Segment Results
Segment Results Second quarter FY2024 Year-to-date FY2024 Segment Segment Segment Segment net sales operating net sales operating $M margin $M margin Architectural Framing Systems $158.8 13.3% Architectural Framing Systems $323.0 12.7% Year-over-year change (8.1)% 140 bps Year-over-year change (3.9)
Slide 9: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet $ in millions Twenty-Six Twenty-Six Weeks Ended Weeks Ended Highlights Aug 26, 2023 Aug 27, 2022 Cash flow from operations $62.6 $(2.6) • Year-over-year cash flow increase primarily driven by Capital expenditures $15.0 $9.3 improvement in working capital compared to last
Slide 10: FY2024 Outlook
FY2024 Outlook Key Assumptions • FY2024 is a 53-week year, with an extra week in the fourth quarter Adjusted • Continue to expect flat to slightly declining net sales compared to FY2023 diluted $4.35 to $4.65 • Continue to expect long-term average tax rate of approximately 24.5% EPS* • Continue to e
Slide 11: Concluding Remarks
Concluding Remarks • Continued progress to advance our strategy and improve execution • Another quarter of strong margin expansion and adjusted EPS growth • Increased cash flow and deploying capital to drive value • Increasing our full-year adjusted EPS outlook • Positioned to drive further progress
Slide 12: Q&A
Q&A Q2 FY2024 Earnings | September 19, 2023 Apogee Enterprises, Inc. 12
Slide 13: 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 Three Months Ended Six Months Ended Six Months Ended In thousands August 26, 2023 August 27, 2022 August 26, 2023 August 27, 2022 Net earnings $ 33,327 $ 37,389
Slide 14: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures EBITDA and Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) (Unaudited) Three Months Ended Three Months Ended Six Months Ended Six Months Ended In thousands August 26, 2023 August 27, 2022 August 26, 2023 August 27, 2022
Slide 15: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Net Leverage (Unaudited) Net Debt (in thousands) August 26, 2023 February 25, 2023 Total debt $ 145,675 $ 169,837 Less: cash and cash equivalents 18,423 19,924 Net debt $ 127,252 $ 149,913 Trailing 12 months, ending Trailing 12 months, ending Adjusted EB
Slide 16: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Fiscal 2024 Outlook Reconciliation of Fiscal 2024 outlook of estimated diluted earnings per share to adjusted diluted net earnings per share (Unaudited) Fiscal Year Ending March 2, 2024 Low Range High Range Diluted earnings per share $ 4.51 $ 4.81 NMTC s