Slide 1: Apogee Enterprises, Inc. Fiscal 2021 Fourth Quarter Earnings Call
Apogee Enterprises, Inc. Fiscal 2021 Fourth Quarter Earnings Call April 8, 2021 Gulch Crossing | Nashville, TN | LEED Gold © Eric Prine, Attic Fire 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 Nisheet Gupta Executive Vice President and Chief Financial Officer Q&A 330 Madison Avenue | New York | LEED Gold Q4 FY2021 Earnings | April 8, 2021 Apogee Enterprises, Inc. 3
Slide 4: FY2021 fourth quarter highlights
FY2021 fourth quarter highlights • Adjusted EPS growth despite revenue headwinds Net sales $309 M (8)% year-over-year • Margins supported by cost management & improved execution • Double-digit top and bottom-line growth in Architectural Services Adjusted operating 7.1% +190 bps year-over-year • Larg
Slide 5: FY2022 priorities
FY2022 priorities • Health and safety of our employees People • Talent management and development Operational • Rigor, focus and urgency on the vital few execution • Drive simplification and standardization Enterprise • Continue to build a more competitive cost model transformation • Strengthen core
Slide 6: Consolidated results
Consolidated results Fourth quarter Full year $ in millions, except EPS $ in millions, except EPS Q4 FY21 Q4 FY20 Change FY21 FY20 Change Net sales $309 $337 (8)% Net sales $1,231 $1,387 (11)% Gross margin 22.6% 23.0% (40) bps Gross margin 22.4% 23.0% (60) bps Adjusted operating income* $22.0 $17.6
Slide 7: Segment results
Segment results Fourth quarter FY2021 Full year FY2021 Adjusted Adjusted Revenue operating Revenue operating margin* margin* Architectural Framing Systems $131 2.7% Architectural Framing Systems $571 5.2% Year-over-year change (14)% 140 bps Year-over-year change (17)% (10) bps Architectural Glass $8
Slide 8: Update on cost actions
Update on cost actions Temporary actions in response to COVID • FY21 savings ~$20 million • Reversed in Q3/Q4 and will not continue into FY22 Achieved our goal of $40M savings in FY21 Procurement savings & Framing Systems improvements Further progress in • FY21 savings of $20 million; all sustainabl
Slide 9: Cash flow and balance sheet
Cash flow and balance sheet $ in millions Full-Year Full-Year FY21 FY20 Highlights Cash flow from operations $142 $107 • Record cash flow from operations and free cash flow Capital expenditures $26 $51 • Reduced net debt by $85 million Free cash flow* $116 $56 • Returned $52.5 million to shareholder
Slide 10: FY2022 outlook
FY2022 outlook Key Planning Assumptions • Continued softness in architectural end markets • Backlog supports growth in Architectural Services • LSO demand returns to pre-pandemic levels Earnings $2.10 to $2.35 • Continued progress on cost and productivity initiatives per share • Headwind vs. FY21 fr
Slide 11: Concluding remarks
Concluding remarks • Solid results to conclude a challenging year for our business • Q4 adjusted earnings growth, despite revenue decline • Continued progress on improving our cost structure and execution • Strong cash flow and balance sheet • Using end-market uncertainty as a catalyst for transform
Slide 12: Q&A
Q&A Q4 FY2021 Earnings | April 8, 2021 Apogee Enterprises, Inc. 12
Slide 13: Backlog trend
Backlog trend Segment backlog at period end ($M) 700 600 500 400 Architectural Services 300 Framing Systems 200 100 0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Q4 FY2021 Earnings | April 8, 2021 Apogee Enterprises, Inc. 13
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) Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended In thousands February 27, 2021 February 29, 2020 February 27, 2021 February 29, 2020 Net (loss)
Slide 15: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted operating income and adjusted operating margin (Unaudited) Three Months Ended February 27, 2021 Framing Systems Segment Glass Segment LSO Segment Corporate Consolidated Operating Operating Operating Operating Operating Operating Operating Operat
Slide 16: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted operating income and adjusted operating margin (Unaudited) Twelve Months Ended February 27, 2021 Framing Systems Segment Glass Segment LSO Segment Corporate Consolidated Operating Operating Operating Operating Operating Operating Operating Opera
Slide 17: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures EBITDA and Adjusted EBITDA (Unaudited) Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended In thousands February 27, 2021 February 29, 2020 February 27, 2021 February 29, 2020 Net (loss) earnings $ (42,371) $ 11,958 $ 15,436 $ 6