Slide 1: Apogee Enterprises, Inc. Fiscal 2023 Third Quarter Earnings Call
Apogee Enterprises, Inc. Fiscal 2023 Third Quarter Earnings Call December 22, 2022 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 Mark Augdahl Interim Chief Financial Officer Q&A Salesforce Tower and Wolf Point East | Chicago Featuring Harmon curtainwall and Viracon glass Q3 FY2023 Earnings | December 22, 2022 Apogee Enterprises, In
Slide 4: FY2023 Third Quarter Highlights
FY2023 Third Quarter Highlights • Double-digit revenue growth, led by Framing Systems and Glass Net sales $368 M +10% year-over-year • Record adjusted earnings per share • Effectively managing pricing and costs to offset inflation Adjusted operating 9.4% • Strong operational execution and productivi
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: Our Strategy is Driving Results
Our Strategy is Driving Results Adjusted Operating Margin and EPS Trend* $1.06 $1.07 12.0% $1.00 $1.00 $0.91 10.0% $0.80 9.3% 9.4% 8.6% 8.0% $0.63 8.4% $0.60 $0.53 6.3% 6.0% $0.42 $0.40 5.4% 4.9% 4.0% $0.20 2.0% $0.00 0.0% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Adjusted EPS* Adjuste
Slide 7: Consolidated Results
Consolidated Results Third quarter Year-to-date $ in millions, except EPS $ in millions, except EPS Q3 FY23 Q3 FY22 Change FY23 FY22 Change Net sales $368 $334 10% Net sales $1,097 $986 11% Adjusted operating income* $34.8 $21.1 65% Adjusted operating income* $100.0 $54.9 82% Adjusted operating marg
Slide 8: Segment Results
Segment Results Third quarter FY2023 Year-to-date FY2023 Revenue Operating Revenue Operating $M margin $M margin Architectural Framing Systems $165 13.4% Architectural Framing Systems $501 13.2% Year-over-year change 17% 490 bps* Year-over-year change 21% 580 bps* Architectural Services $102 5.9% Ar
Slide 9: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet $ in millions Thirty-Nine Thirty-Nine Weeks Ended Weeks Ended Commentary Nov 26, 2022 Nov 27, 2021 • $54 million of cash from operations in Q3 Cash flow from operations $51.1 $86.3 Capital expenditures $18.1 $13.1 • Lower YTD cash flow due to increased working capital tie
Slide 10: FY2023 Outlook
FY2023 Outlook Key Assumptions • Expect full year revenue growth of approximately 10%, primarily driven by Framing Systems Adjusted • Expect full-year margin expansion, primarily driven by improved earnings $3.90 to $4.05 performance in Framing Systems and Glass per share* • Anticipate continued cha
Slide 11: Concluding Remarks
Concluding Remarks • Execution of our strategy is driving improved results • Double-digit revenue growth and record adjusted EPS • Effectively managing pricing and costs to offset inflation • Strong operational execution and productivity • Positioning the company to outperform, regardless of the cyc
Slide 12: Q&A
Q&A Q3 FY2023 Earnings | December 22, 2022 Apogee Enterprises, Inc. 12
Slide 13: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted net earnings and adjusted earnings per diluted common share (Unaudited) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended In thousands November 26, 2022 November 27, 2021 November 26, 2022 November 27, 2021 Net earnings (
Slide 14: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted operating income and adjusted operating margin (Unaudited) Three Months Ended November 26, 2022 Framing Systems Segment Glass Segment Corporate Consolidated Operating Operating Operating Operating Operating Operating Operating In thousands incom
Slide 15: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted operating income and adjusted operating margin (Unaudited) Nine Months Ended November 26, 2022 Framing Systems Segment Glass Segment Corporate Consolidated Operating Operating Operating Operating Operating Operating Operating In thousands income
Slide 16: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures EBITDA and Adjusted EBITDA (Unaudited) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended In thousands November 26, 2022 November 27, 2021 November 26, 2022 November 27, 2021 Net earnings (loss) $ 23,765 $ 11,057 $ 83,885 $ 19,759
Slide 17: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted operating margin and adjusted earnings per diluted common share trend (Unaudited) (U.S. Dollars in thousands) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Net Sales $ 326,006 $ 325,797 $ 334,217 $ 327,957 $ 356,635 $ 372,109 $ 367,847
Slide 18: Fiscal 2022 Pro Forma Segment Results
Fiscal 2022 Pro Forma Segment Results Fiscal 2022 Reclassified Pro Forma Segment Data (unaudited) Net Sales for FY2022 Pro Forma Net Sales for Reclassified Segments for FY2022* (in thousands) Q1 Q2 Q3 Q4 FY 2022 (in thousands) Q1 Q2 Q3 Q4 FY 2022 Architectural Framing Systems 151,840 149,972 151,665