Slide 1: Fiscal 2021 Second Quarter Earnings Call
APOGEE ENTERPRISES, INC. Apogee Enterprises, Inc. Fiscal 2021 Second Quarter Earnings Call September 17, 2020
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 and business update Joe Puishys Chief Executive Officer Financial results Nisheet Gupta Executive Vice President and CFO Q&A 330 Madison Avenue Q2 FY2021 Earnings | September 17, 2020 | Apogee Enterprises, Inc. New York, NY
Slide 4: Executive summary
Executive summary COVID Response Q2 Highlights We took decisive actions to stabilize our business • Continued revenue impact from COVID-related volume declines and project delays • Prioritized the health & safety of employees • Strong recovery in LSO compared to Q1 • Adapted our business & supply ch
Slide 5: Strategies implemented since 2012 position Apogee to manage through the current environment
The strategies we’ve implemented since 2012 position Apogee to manage through the current environment • Diversified our business by geography, project type & size Diversified our • Reduced dependence on architectural glass for large projects business • Built scale in higher growth potential Framing
Slide 6: FY2021 Q2 Consolidated Results
FY2021 Q2 Consolidated Results 2nd Quarter 2nd Quarter Year-to-date Year-to-date All numbers in $M, except per share and where noted FY21 FY20 FY21 FY20 Revenues $319.5 $357.1 $608.6 $712.4 Operating income 23.2 27.6 29.7 50.6 Adjusted operating income* 25.5 27.6 33.4 50.6 Operating margin 7.3% 7.7%
Slide 7: FY2021 Q2 Segment Results
FY2021 Q2 Segment Results 2nd Quarter 2nd Quarter Year-to-date Year-to-date All numbers in $M, except where noted FY21 FY20 FY21 FY20 Revenues Architectural Framing Systems $152.9 $187.4 $303.1 $367.9 Architectural Glass 86.6 99.1 163.5 199.4 Architectural Services 73.7 61.6 137.2 126.7 Large-Scale
Slide 8: Backlog Trend
Backlog Trend Segment Backlog at Period End 700 600 500 400 300 200 100 0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 YTD FY21 Architectural Services Framing Systems Apogee Enterprises, Inc. 8 Q2 FY2021 Earnings | September 17, 2020 | Apogee Enterprises, Inc.
Slide 9: Update on cost actions
Update on cost actions • Procurement savings initiative & Framing Systems improvements - Over $10 million benefit YTD - Expect full-year savings over $20 million; all sustainable - Significant opportunities remain On-track to deliver $40M+ savings in current year • Temporary actions in response to C
Slide 10: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet Twenty-Six Twenty-Six All numbers in $M Weeks Ended Weeks Ended Aug 29, 2020 Aug 31, 2019 Cash flow from operations $85.3 $17.8 Capital expenditures 14.2 22.6 Free cash flow* 71.1 (4.8) Share repurchases 4.7 20.0 Dividends paid 9.8 9.2 Total debt 167.7 272.8 *Free cash fl
Slide 11: Outlook
Outlook • Not providing detailed financial guidance due to continued uncertainty • Signs of stabilization in end markets, but COVID and economic risks remain • Expect revenue & earnings to improve in the 2nd half of FY21, compared to first half • Anticipate continued soft market conditions and proje
Slide 12: Concluding Remarks
Concluding Remarks • Managing what we can control in a challenging environment • Took decisive action to respond to COVID • Strong execution and cost control offset Q2 revenue decline • Cost reductions tracking ahead of expectations • Cash flow significantly above prior year • Well positioned to man
Slide 13: OApoge
* OApoge enrer;orises, 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 Twenty-Six Twenty-Six Weeks Ended Weeks Ended Weeks Ended Weeks Ended In thousands August 29, 2020 August 31, 2019 August 29, 2020 August 31, 2019 Net earn
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 August 29, 2020 Corporate Consolidated In thousands Operating loss Operating income Operating margin Operating (loss) income $ (2,176) $ 23,215 7.3% COVID-19 (1) 1,316
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Operating Income and Adjusted Operating Margin (Unaudited) Six Months Ended August 29, 2020 Corporate Consolidated In thousands Operating loss Operating income Operating margin Operating (loss) income $ (4,720) $ 29,683 4.9% COVID-19 (1) 2,696 2
Slide 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures EBITDA and Adjusted EBITDA (Unaudited) Thirteen Thirteen Twenty-Six Twenty-Six Weeks Ended Weeks Ended Weeks Ended Weeks Ended In thousands August 29, 2020 August 31, 2019 August 29, 2020 August 31, 2019 Net earnings $ 17,658 $ 19,279 $ 20,534 $ 34,722 I