Slide 1: Fiscal 2019 Third Quarter Earnings Call
Apogee Enterprises, Inc. Fiscal 2019 Third Quarter Earnings Call December 20, 2018
Slide 2: Non-GAAP measures & forward-looking statements
Non-GAAP measures & forward-looking statements This presentation contains non-GAAP financial measures when talking about Apogee’s performance. Definitions for these non-GAAP financial measures are included in today’s press release. This presentation also contains forward-looking statements reflectin
Slide 3: FY2019 Third Quarter Highlights
FY2019 Third Quarter Highlights • Reported EPS of $0.78; adjusted EPS of $0.80* • 390 bps sequential margin improvement in Architectural Glass • Architectural Services revenue increases 48 percent, with strong margin improvement and increased backlog • Year-to-date cash flow from operations increase
Slide 4: Long-Term Outlook Remains Positive
Long-Term Outlook Remains Positive • Successfully reshaped and diversified Apogee’s business mix • Favorable market conditions with multi-year visibility • Strong order flow and healthy backlog • Multiple drivers for continued organic growth • Significant opportunities to drive margin expansion • St
Slide 5: Consolidated Results
Consolidated Results All numbers in $M, except per share and where noted Q3 FY19 Q3 FY18 Change Revenues $357.7 $356.5 0% Gross profit 84.1 91.6 (8)% SG&A 52.7 57.0 (8)% Operating income 31.4 34.5 (9)% Adjusted operating income* 32.1 37.9 (15)% Operating margin 8.8% 9.7% (90) bps Adjusted operating
Slide 6: Segment Results
Segment Results All numbers in $M, except where noted Q3 FY19 Q3 FY18 Change Revenues Architectural Framing Systems $181.3 $194.2 (7)% Architectural Glass 98.5 96.9 2% Architectural Services 72.8 49.1 48% Large-Scale Optical 23.4 26.0 (10)% Operating Margin Arch. Framing Systems 7.1% 9.5% (240) bps
Slide 7: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet All numbers in $M Q3 FY19 YTD Q3 FY18 YTD Cash flow from operations $70.6 $66.2 Capital expenditures 33.9 38.9 Free cash flow* 36.8 27.3 Share repurchases 23.3 10.8 Dividends paid 13.2 12.0 Long-term debt 232.7 231.3 *See reconciliation of non-GAAP financial measures tabl
Slide 8: Outlook
Outlook Updated FY19 Guidance • Revenue growth of 6-7%, compared to 8% to 10% previously • Operating margin of approximately 8.4%, compared to 8.3% to 8.8% previously • Adjusted operating margin* of approximately 8.7%, from 8.6% to 9.1% previously • EPS of approximately $3.00, at the low-end of the
Slide 9: Apogee Enterprises, Inc.
Apogee Enterprises, Inc. 9
Slide 10: Reconciliation of Q3 FY19 Non-GAAP Financial Measures
Reconciliation of Q3 FY19 Non-GAAP Financial Measures Adjusted Net Earnings and Adjusted Earnings per Diluted Common Share (Unaudited) Thirteen Thirteen Weeks Ended Weeks Ended In thousands December 1, 2018 December 2, 2017 Net earnings $ 21,891 $ 23,646 Amortization of short-lived acquired intangib
Slide 11: Reconciliation of Q3 FY19 Non-GAAP Financial Measures
Reconciliation of Q3 FY19 Non-GAAP Financial Measures Adjusted Operating Income and Adjusted Operating Margin (Unaudited) Thirteen Weeks Ended December 1, 2018 Framing Systems Segment Corporate Consolidated Operating Operating Operating Operating Operating In thousands income margin income (loss) in
Slide 12: Reconciliation of Q3 FY19 Non-GAAP Financial Measures
Reconciliation of Q3 FY19 Non-GAAP Financial Measures EBITDA and Adjusted EBITDA (Unaudited) Thirteen Thirteen Thirty-Nine Thirty-Nine Weeks Ended Weeks Ended Weeks Ended Weeks Ended In thousands December 1, 2018 December 2, 2017 December 1, 2018 December 2, 2017 Net earnings $ 21,891 $ 23,646 $ 57,