Apogee Enterprises 2nd Quarter Earnings Increase Significantly, Exceed Prior-Year Results for Fourth Consecutive Quarter.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Sept. 19, 2001 CURRENT YEAR GUIDANCE RAISED TO $0.85-$0.90 PER SHARE, FROM $0.64-$0.74 Apogee apogee (ăp`əjē), point farthest from the earth in the orbit of a body about the earth. See apsis. The farthest point. Enterprises, Inc. (Nasdaq:APOG APOG Advanced Operational Planning Group APOG Aberdeen Police Officer's Guild ), which develops and delivers value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: glass products and services for the architectural, large-scale large-scale adj. 1. Large in scope or extent. 2. Drawn or made large to show detail. large-scale Adjective 1. wide-ranging or extensive 2. optical and automotive industries Automotive Industries, Ltd. (Hebrew: תעשיות רכב נצרת עלית, תע"ר , today announced that second quarter fiscal 2002 net earnings increased more than 140 percent compared to the prior-year period and significantly exceeded expectations. Second quarter earnings were $0.36 per share, or $10.3 million, versus $0.15 per share, or $4.2 million, in the fiscal 2001 period. All earnings per share figures refer to diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . Reported revenues for the second quarter totaled $210.2 million, compared to revenues of $236.4 million in the same period last year. Revenues were down 3 percent compared to the second quarter of last year after being adjusted for the formation of the PPG PPG Points Per Game (basketball player statistic) PPG Power Play Goals (hockey) PPG Planning Policy Guidance (UK) PPG Programmable Pulse Generator PPG Power Puff Girls Auto Glass, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control joint venture in July July: see month. 2000. The company's operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 7.6 percent in the second quarter, up from 4.5 percent in the prior-year period. "Our success in achieving consistent earnings growth is evident - we have now exceeded prior-year earnings for the fourth consecutive quarter," said Russell Russell, English noble family. It first appeared prominently in the reign of Henry VIII when John Russell, 1st earl of Bedford, 1486?–1555, rose to military and diplomatic importance. Huffer huff n. A fit of anger or annoyance; a pique: stormed off in a huff. v. huffed, huff·ing, huffs v.intr. 1. To puff; blow. 2. , Apogee chairman, president and chief executive officer. "And, I'm I'm Contraction of I am. Our Living Language Speakers of some scattered varieties of American English sometimes use I'm instead of I've or I have in present perfect constructions, as in pleased to report that despite the economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. , we are seeing growth in our architectural segment, our largest and strongest, as the construction industry continues to expand its use of our value-added glass and window products and services. At the same time, our auto glass segment met our objectives during its strongest seasonal quarter, while we continue to experience softness in the large-scale optical segment." Architectural products and services Revenues for Apogee's largest segment grew 6 percent to $120.0 million, compared to $113.1 million in the prior-year quarter. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 50 percent to $9.0 million, from $6.0 million a year ago. This strong growth was due to a combination of increased revenue, more efficient and effective operations, and a higher-margin product mix. The architectural segment backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. held at $190.4 million, consistent with the record levels reported at the end of the first quarter and fiscal 2001 and equal to about six months work. The backlog is up 7 percent from the prior-year period. The segment's operating margin increased to 7.5 percent from 5.3 percent in the previous-year period. Large-scale optical technologies In the second quarter, revenues were $15.0 million, compared to $21.6 million in the prior-year period. The segment reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1.5 million, compared to operating income of $1.4 million in the same period last year. The segment's performance has been significantly impacted by the severe downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in the PC industry and a slowdown in retail markets. Automotive replacement glass and services Reported automotive segment revenues for the second quarter were $75.2 million, compared to $101.7 million in the prior-year period. Segment revenues decreased 9 percent compared to the second quarter of last year after being adjusted for the PPG Auto Glass joint venture. Although strategies initiated last year to reduce low-margin business continue to impact revenues, they have resulted in improved profitability. The segment reported operating income of $8.9 million, compared to $3.4 million in the same period last year. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 70 percent of the improvement resulted from the amendments made to the supply agreements related to the PPG Auto Glass joint venture, owned 34 percent by Apogee and 66 percent by PPG Industries PPG Industries (NYSE: PPG) was founded in 1883 as the Pittsburgh Plate Glass Company. PPG is an American manufacturer of glass and chemical products, including automotive safety glass. , of which approximately one-third was a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. net increase. These amendments permanently adjusted pricing for Apogee's windshield manufacturing business, resulting in higher income for the segment. These amendments led to lower earnings during the current quarter and into the future for PPG Auto Glass, which is reported in equity in affiliates. The remainder of the increase was the result of operational improvements and cost reductions implemented at our retail facilities late last year. Equity in affiliates Apogee's income from investments in affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. was $0.3 million in the second quarter versus a loss of $0.7 million in the prior-year period. The current year includes Apogee's portion of the results of the PPG Auto Glass joint venture formed in the fiscal 2001 second quarter, offset by funding of the TerraSun joint venture. Financial condition Apogee employed its strong cash flow during the quarter to reduce its long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. by $18 million to $86.5 million, from $104.3 million at the end of the first quarter. The company's debt-to-total-capital ratio declined to 35 percent, a significant improvement from 51 percent at the end of last year's second quarter. Apogee's EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become was $22.4 million for the second quarter, up from $19.9 million in the same period last year. In the second quarter, depreciation and amortization totaled $6.5 million, compared with $9.2 million in the year-ago quarter. Working capital increased slightly to $46.5 million at the end of the quarter, versus $45.0 million in last year's second quarter. Capital expenditures were $2.8 million in the quarter, a decrease from $6.2 million in last year's second quarter. Outlook "Building on our strong first half, we are increasing our guidance for fiscal 2002, ending March 2, 2002, to $0.85 to $0.90 per share, from our previous range of $0.64 to $0.74," said Huffer. "Based on our stated objective to grow earnings at least 15 percent annually and providing the economy doesn't does·n't Contraction of does not. decline significantly, in fiscal 2003 we are targeting earnings of at least $1.00 per share for the first time in Apogee's history. "We continue to monitor the softness in our large-scale optical segment markets and backlogs in our architectural segment which had experienced some minor project delays, and remain conservative in our outlook for the automotive segment as the retail unit continues to validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data its streamlined business model through an entire business cycle," he said. The following statements, all related to fiscal 2002 unless otherwise indicated, are based on current expectations. These statements are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , and actual results may differ materially. -- The company has revised its revenue expectations to flat (after being adjusted for the formation of the PPG Auto Glass joint venture) from previously anticipated single-digit growth. -- Architectural products and services: Apogee expects single-digit growth (revised from high single-digit growth) as markets continue to shift to the value-added materials and services provided by Apogee's businesses and the company captures previously unmet demand. The construction industry is Apogee's largest market and impacts this segment. Although independent construction industry research firms continue to predict a flat to down market overall for calendar 2001, the segments in which Apogee participates are expected by these firms to have single-digit growth for the same period. The segment is expected to maintain its first half strength into the third quarter, with some seasonal softening in the fourth quarter. -- Large-scale optical technologies: Apogee anticipates revenues will be down significantly due largely to the severe downturn in the PC industry as well as a slowdown in retail markets. The segment is expected to show some holiday season improvement in picture framing glass and matboard sales, though less than normal due to economic uncertainty. -- Automotive replacement glass and services: Revenues are now expected to be down for the year (after being adjusted for the formation of the PPG Auto Glass joint venture) versus previous expectations of flat revenues. Apogee anticipates increased windshield prices in retail and manufacturing to hold for much of this year. The automotive segment is expected to experience historical seasonal slowing in the second half. -- The pricing changes in the amendments made to the supply agreements related to the PPG Auto Glass joint venture are expected to favorably impact the automotive segment operating margin by 3 to 4 percentage points over last year. -- Apogee's estimated fiscal 2002 earnings of $0.85 to $0.90 cents per share (increased from $0.64 to $0.74) broken down for the second half are: Q3, $0.16 to $0.18; and Q4, $0.13 to $0.16. -- Capital spending is anticipated to be approximately $20 million for fiscal 2002 versus the prior estimate of $25 million. -- Depreciation and amortization is expected to be approximately $30 million in fiscal 2002. The discussion above contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements reflect management's current expectations or beliefs. There can be no assurances given that the ongoing reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. and realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of Harmon Harmon is a surname, and may refer to:
adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. operating results. In addition, there can be no assurances that Apogee's expected architectural segment growth due to its strength serving high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. markets with value-added products will not be impacted by the slowing economy. There also can be no assurances that there will not be further erosion in large-scale optical segment revenues due to the severe downturn in the PC industry and a slowdown in retail markets. The company cautions readers that actual future results could differ materially from those described in the forward-looking statements depending upon the outcome of certain factors, including the risks and uncertainties identified in Exhibit 99 to the company's Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended March 3, 2001. Teleconference and simultaneous webcast Analysts, investors and media are invited to listen to Apogee's live teleconference or webcast at 10 a.m. Central Daylight Time tomorrow, September September: see month. 20. To participate in the teleconference, call 1-877-679-9054 toll free or 952-556-2802 local, and reference "Apogee Enterprises." The replay will be available from noon Central Daylight Time on Thursday Thursday: see week. , September 20, through midnight Central Daylight Time on Thursday, September 27, by calling 1-800-615-3210 toll free, access code 5517568. To listen to the live conference call over the internet, go to the Apogee web site at http://www.apog.com and click on "investor relations Investor relations The process by which the corporation communicates with its investors. " and then the webcast link at the top of that page. The webcast also will be archived on the company's web site. Apogee Enterprises, Inc., headquartered in Minneapolis Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. , is a world leader in technologies involving the design and development of value-added glass products, services and systems. The company is organized in three segments: -- Architectural products and services companies design, engineer, fabricate and install the walls of glass and windows comprising the outside skin of commercial and institutional buildings. Businesses in this segment are: Viracon, a leading global fabricator fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: of coated, high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" architectural glass; Harmon, Inc., the largest U.S. full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. building glass installation and maintenance company; Wausau Wausau (wô`sô), city (1990 pop. 37,060), seat of Marathon co., central Wis., on the Wisconsin River; settled 1839, inc. 1872. It is an industrial, commercial, and agricultural city in the heart of Wisconsin's dairy region. Window & Wall Systems, a manufacturer of custom, non-residential aluminum window systems and curtainwall; and Linetec, one of the largest U.S. architectural paint and anodizing anodizing Method of coating metal for corrosion resistance, electrical insulation, thermal control, abrasion resistance, sealing, improving paint adhesion, and decorative finishing. finishers. -- Large-scale optical technologies companies develop and produce high technology glass that enhances the visual performance of products for the display, imaging and picture framing industries. Businesses in this segment are: Tru Vue, a leading U.S. value-added glass and matboard manufacturer for the art and framing industry; and Viratec, a leading global producer of optical thin film coatings for the display and imaging markets. -- Automotive replacement glass and services companies fabricate, repair and replace automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of windshields and windows. Businesses in this segment are: Harmon AutoGlass, a leading U.S. chain of retail auto glass replacement and repair stores; and Viracon/Curvlite, a leading U.S. fabricator of aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. foreign and domestic car windshields.
Apogee Enterprises, Inc. & Subsidiaries
Consolidated Condensed Statement of Income
(Unaudited)
Thirteen Thirteen
Weeks Weeks
Ended Ended %
Sept. 1, Sept. 2, Change
2001 2000
----------- ----------- -----
Net sales $210,233 $236,364 -11%
Cost of goods sold 158,833 189,308 -16%
----------- -----------
Gross profit 51,400 47,056 9%
Selling, general and administrative
expenses 35,476 36,391 -3%
----------- -----------
Operating income (loss) 15,924 10,665 49%
Interest expense, net 1,234 3,180 -61%
Equity in income (loss) of affiliated
companies 297 (665) N/M
----------- -----------
Earnings (loss) from continuing
operations before income taxes and
other items below 14,987 6,820 120%
Income taxes 4,646 2,620 77%
----------- -----------
Earnings (loss) from continuing
operations 10,341 4,200 146%
Earnings (loss) from discontinued
operations - - -
----------- -----------
Net earnings (loss) $10,341 $4,200 146%
=========== ===========
Earnings per share - basic:
Earnings (loss) from continuing
operations $0.37 $0.15 143%
Earnings (loss) from discontinued
operations $- $- -
Net earnings (loss) $0.37 $0.15 147%
Average common shares outstanding 28,267,287 27,852,033 1%
Earnings per share - diluted:
Earnings (loss) from continuing
operations $0.36 $0.15 137%
Earnings (loss) from discontinued
operations $- $- -
Net earnings (loss) $0.36 $0.15 140%
Average common and common
equivalent shares outstanding 28,889,019 27,853,179 4%
Cash dividends per common share $0.053 $0.053 0%
Apogee Enterprises, Inc. & Subsidiaries
Consolidated Condensed Statement of Income
(Unaudited)
Twenty-six Twenty-seven
Weeks Weeks
Ended Ended %
Sept. 1, Sept. 2, Change
2001 2000
----------- ----------- -----
Net sales $413,839 $473,617 -13%
Cost of goods sold 317,135 378,647 -16%
----------- -----------
Gross profit 96,704 94,970 2%
Selling, general and administrative
expenses 72,807 77,351 -6%
----------- -----------
Operating income (loss) 23,897 17,619 36%
Interest expense, net 3,156 5,962 -47%
Equity in income (loss) of affiliated
companies 2,365 (1,356) N/M
----------- -----------
Earnings (loss) from continuing
operations before income taxes and
other items below 23,106 10,301 124%
Income taxes 7,163 4,080 76%
----------- -----------
Earnings (loss) from continuing
operations 15,943 6,221 156%
Earnings (loss) from discontinued
operations - - -
----------- -----------
Net earnings (loss) $15,943 $6,221 156%
=========== ===========
Earnings per share - basic:
Earnings (loss) from continuing
operations $0.57 $0.22 154%
Earnings (loss) from discontinued
operations $- $- -
Net earnings (loss) $0.57 $0.22 154%
Average common shares outstanding 28,126,012 27,826,537 1%
Earnings per share - diluted:
Earnings (loss) from continuing
operations $0.56 $0.22 149%
Earnings (loss) from discontinued
operations $- $- -
Net earnings (loss) $0.56 $0.22 149%
Average common and common
equivalent shares outstanding 28,603,867 27,827,110 3%
Cash dividends per common share $0.105 $0.105 0%
----------------------------------------------------------------------
Business Segments Information
(Unaudited)
Thirteen Thirteen
Weeks Weeks
Ended Ended %
Sept. 1, Sept. 2, Change
2001 2000
----------- --------- ------
Sales
Architectural $120,059 $113,110 6%
Large-Scale Optical 14,980 21,638 -31%
Auto Glass 75,197 101,713 -26%
Eliminations (3) (97) 97%
----------- -----------
Total $210,233 $236,364 -11%
----------- -----------
Operating income (loss)
Architectural $9,000 $5,993 50%
Large-Scale Optical (1,475) 1,376 N/M
Auto Glass 8,919 3,427 160%
Corporate and other (520) (131) -297%
----------- -----------
Total $15,924 $10,665 49%
----------- -----------
Business Segments Information
(Unaudited)
Twenty-six Twenty-seven
Weeks Weeks
Ended Ended %
Sept. 1, Sept. 2, Change
2001 2000
----------- ----------- -----
Sales $236,285 $224,117 5%
Architectural 35,487 41,280 -14%
Large-Scale Optical 142,073 208,492 -32%
Auto Glass (6) (272) 98%
Eliminations ----------- -----------
$413,839 $473,617 -13%
Total ----------- -----------
Operating income (loss) $16,021 $12,327 30%
Architectural (1,491) 319 N/M
Large-Scale Optical 10,381 6,217 67%
Auto Glass (1,014) (1,244) 18%
Corporate and other ----------- -----------
$23,897 $17,619 36%
Total ----------- -----------
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion