Apogee Enterprises, Inc. · NASDAQ:APOG
Apogee Enterprises — Q4 2024 Earnings Presentation
25 slides from Apogee Enterprises's earnings presentation, Apr 18, 2024
Slide 1: Apogee Enterprises, Inc. Fiscal 2024 Fourth Quarter Earnings Call
Apogee Enterprises, Inc. Nasdaq: APOG Fiscal 2024 Fourth Quarter Earnings Call April 18, 2024 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 the Company’s historical and prospective financial performance, measure operational profitability on a consistent basis, as a factor in determining executive compe
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 Q4 FY2024 Earnings April 18, 2024 Apogee Enterprises, Inc. 3
Slide 4: 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 5: Full-Year FY2024 Highlights
Full-Year FY2024 Highlights • Record adj. operating income and adj. diluted EPS Net sales $1.42 B (2)% year-over-year • Record cash flow generation Adjusted operating $146.2 M • Achieved step change in Architectural Glass performance income* +16% year-over-year • Delivered sustainable cost and produ
Slide 6: Driving Progress Toward our Financial Targets
Driving Progress Toward our Financial Targets Fiscal 2025 Enterprise Targets (announced at our Nov 2021 investor day) > 12% > 10% > 1.2x Construction Index Adjusted Adjusted ROIC* Revenue Growth Operating Margin** 16.5% 10.7% ✓ 13.8% 10.3% Target Target 8.7% 7.7% 8.1% 7.1% 6.3% ✓ -1.6% Non-Res FY24
Slide 7: Segment Margin Performance
Segment Margin Performance SEGMENT ADJUSTED FY2024 OPERATING MARGIN TARGET RESULTS* Framing 9-12% 10-15% 11.8% Systems Increasing our target margin range for Framing Systems Glass 10-15% 18.0% Services 7-9% 3.8% LSO 20%+ 24.4% *Segment adjusted operating margin is a Q4 FY2024 Earnings April 18, 2024
Slide 8: Market Outlook
Market Outlook FMI forecast for construction put in place in the U.S. by building type Forecasted 2024 Forecasted Put-in-Place Building Type Growth Rate Spend ($ billions) Multifamily residential -8% $133 Office (excluding data centers) -2% $74 Shifting market dynamics driving Commercial -2% $130 co
Slide 9: Continuing to Execute our Strategy – Project Fortify
Continuing to Execute our Strategy – Project Fortify Project Fortify was announced on January 30, 2024 and will position Framing Systems for continued profitable growth, as well as optimize processes and streamline resources in the Services and Corporate Segments ▪ Phase out lower-margin product off
Slide 10: Advancing the Apogee Management System
Advancing the Apogee Management System A multi-year approach for Lay the foundation Expand the scope Embed in the culture building an • Add key talent • Expand toolkit to • Shared language & operating framework other businesses philosophy • Reinvigorate Lean and tools to support • Go beyond Lean: •
Slide 11: 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 12: FY2024 Fourth-Quarter Results
FY2024 Fourth-Quarter Results $ in millions, except EPS Q4 FY24* Q4 FY23 Change Commentary • Net sales growth driven by improved pricing & mix Net sales $361.8 $344.1 5.2% • Adjusted operating income and margin increase driven by: Adjusted operating income** $34.3 $25.7 33.1% – Improved pricing and
Slide 13: FY2024 Full-Year Results
FY2024 Full-Year Results $ in millions, except EPS FY2024* FY2023 Change Commentary Net sales $1,417 $1,441 (1.6)% • Net sales decline reflects lower volumes, partially offset by improved product mix & pricing Adjusted operating income** $146.2 $125.8 16.3% • Adjusted operating income and margin inc
Slide 14: Segment Results
Segment Results Fourth quarter FY2024 Full Year FY2024 Segment Adjusted Segment Adjusted net sales operating net sales operating $M margin % $M margin % Architectural Framing Systems $139.2 9.2% Architectural Framing Systems $601.7 11.8% Year-over-year change (6.3)% (130) bps Year-over-year change (
Slide 15: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet $ in millions FY2024 FY2023 Highlights Cash flow from operations $204.2 $102.7 Capital expenditures $43.2 $45.2 • Record cash flow from operations and free cash flow Free cash flow* $161.0 $57.5 • Year-over-year cash flow increase primarily driven by improvement in workin
Slide 16: 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 17: Concluding Remarks
Concluding Remarks • Execution of our strategy has driven sustainable operating improvements – Significant cost and productivity improvements – Grew our mix of differentiated product & service offerings – Strengthened core processes and systems • Full-year adjusted operating margin and ROIC exceeded
Slide 18: Q&A
Q&A Q4 FY2024 Earnings April 18, 2024 Apogee Enterprises, Inc. 18
Slide 19: 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 Twelve Months Ended March 2, 2024 February 25, 2023 March 2, 2024 February 25, 2023 In thousands (14 weeks) (13 weeks) (53 weeks) (52 weeks) Net earnings $ 15,73
Slide 20: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted operating income (loss) and adjusted operating margin (Unaudited) Three Months Ended March 2, 2024 Architectural Architectural Architectural Corporate In thousands Framing Systems Glass Services LSO and Other Consolidated Operating income (loss)
Slide 21: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted operating income (loss) and adjusted operating margin (Unaudited) Twelve Months Ended March 2, 2024 Architectural Architectural Architectural Corporate In thousands Framing Systems Glass Services LSO and Other Consolidated Operating income (loss
Slide 22: 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 Twelve Months Ended March 2, 2024 February 25, 2023 March 2, 2024 February 25, 2023 In thousands (14 week
Slide 23: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Net Leverage Ratio (Unaudited) Net Debt (in thousands) March 2, 2024 February 25, 2023 Long-term debt $ 62,000 $ 169,837 Less: cash and cash equivalents 37,216 19,924 Net debt $ 24,784 $ 149,913 Trailing 12 months, ending Trailing 12 months, ending Adjus
Slide 24: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted Return on Invested Capital Reconciliation (Unaudited) Twelve Months Ended March 2, 2024 February 25, 2023 In thousands, except percentages (53 weeks) (52 weeks) Operating income $ 133,833 $ 125,788 Restructuring charges (1) 12,403 — Adjusted ope
Slide 25: 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 $ 4.25 $ 4.55 Restructur