Apogee Enterprises, Inc. · NASDAQ:APOG
Apogee Enterprises — Q3 2020 Earnings Presentation
17 slides from Apogee Enterprises's earnings presentation, Dec 19, 2019
Slide 1: Fiscal 2020 Third Quarter Earnings Call
APOGEE ENTERPRISES, INC. Apogee Enterprises, Inc. Fiscal 2020 Third Quarter Earnings Call December 19, 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 3 Q3 FY2020 Earnings | December 19, 2019 | Apogee Enterprises, Inc.
Slide 4: Q3 Highlights
• Q3 results below our expectations, driven by Q3 Highlights Architectural Framing Systems, leading to reduced full- year outlook • Taking action to address near-term performance issues – Leadership changes – Accelerating integration & cost reduction initiatives – Procurement savings program • Sever
Slide 5: Framing Systems Integration Opportunities
Framing Systems Integration Opportunities Architectural Framing Systems has initiated a plan focused on several operational and commercial improvements, including cost savings, integrated product management and pricing strategies, and supply chain and operational efficiencies Operational & supply Re
Slide 6: Cost Reduction Actions
Cost Reduction Actions Procurement Savings Program • Program to realize purchasing synergies and savings across all of Apogee • Partnered with leading advisory firm to accelerate our efforts • Targeting savings in all categories of spend • Moving to more centralized procurement model to leverage sca
Slide 7: FY2020 Q3 Consolidated Results
FY2020 Q3 Consolidated Results 3rd Quarter 3rd Quarter Year-to-date Year-to-date All numbers in $M, except per share and where noted FY20 FY19 FY20 FY19 Revenues $337.9 $357.7 $1,050.3 $1,056.4 Operating income (loss) 21.6 31.4 72.2 82.1 Adjusted operating income* 21.7 31.5 72.4 85.1 Operating margi
Slide 8: FY2020 Q3 Segment Results
FY2020 Q3 Segment Results 3rd Quarter 3rd Quarter Year-to-date Year-to-date All numbers in $M, except where noted FY20 FY19 FY20 FY19 Revenues Architectural Framing Systems $165.5 $181.3 $533.4 $550.2 Architectural Glass 89.4 98.5 288.9 263.5 Architectural Services 69.0 72.8 195.8 220.1 Large-Scale
Slide 9: Backlog Trend
Backlog Trend 9 Q3 FY2020 Earnings | December 19, 2019 | Apogee Enterprises, Inc.
Slide 10: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet All numbers in $M Q3 FY20 YTD Q3 FY19 YTD Cash flow from operations $53.6 $70.6 Capital expenditures 41.2 33.9 Free cash flow* 12.4 36.7 Share repurchases 20.0 23.3 Dividends paid 13.8 13.2 Total debt 251.3 232.7 *Free cash flow is defined as cash flow from operations les
Slide 11: Outlook
Outlook FY2020 Guidance Current Prior* Revenue Flat to down 1% 1% - 3% growth EPS $2.15 - $2.30 $3.00 - $3.20 Tax rate ~ 24.5% ~ 24.5% CapEx ~ $55 million $60 to $65 million * As of September 17, 2019 11 Q3 FY2020 Earnings | December 19, 2019 | Apogee Enterprises, Inc.
Slide 12: FY2020 Segment Guidance
FY2020 Segment Guidance Segment Revenue Growth Operating Margin Architectural Framing Systems Down mid-single digit 5.0% to 5.5% Mid to upper-single digit Architectural Glass ~6% growth Architectural Services Down ~10% 7% to 8% Low to mid-single digit Large-Scale Optical ~25% growth 12 Q3 FY2020 Ear
Slide 13: Apogee
“ Apogee enterorises, INC.
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Net Earnings and Adjusted Earnings per Diluted Common Share (Unaudited) Thirteen Thirteen Thirty-Nine Thirty-Nine Weeks Ended Weeks Ended Weeks Ended Weeks Ended In thousands November 30, 2019 December 1, 2018 November 30, 2019 December 1, 2018
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Operating Income and Adjusted Operating Margin (Unaudited) Thirteen Weeks Ended November 30, 2019 Framing Systems Segment Corporate Consolidated Operating Operating Operating Operating In thousands income margin Operating loss income margin Oper
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Operating Income and Adjusted Operating Margin (Unaudited) Thirty-Nine Weeks Ended November 30, 2019 Framing Systems Segment Corporate Consolidated Operating Operating Operating Operating In thousands income margin Operating loss income margin O
Slide 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of 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 November 30, 2019 December 1, 2018 November 30, 2019 December 1, 2018 Net earnings $ 15,234 $ 21,891 $ 49,956 $