Apogee Reports Fiscal 2004 Full-Year, Q4 Earnings; Provides FY05 Guidance.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--April 7, 2004 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 fiscal 2004 full-year and fourth quarter earnings. For the 12-month period ended February February: see month. 28, 2004, Apogee's earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the were $0.17 per share or $4.6 million, compared with $1.02 per share or $28.9 million a year ago. 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 . Fiscal 2004 net results, which include charges resulting from the sale of Harmon Harmon is a surname, and may refer to:
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. at the unit, were a loss of $0.20 per share, or $5.6 million, compared to prior-year net earnings of $1.06 per share or $29.9 million. Revenues from continuing operations for fiscal 2004 were $535.3 million, down 8 percent from $584.9 million last year. "The ongoing 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. in commercial construction markets significantly impacted our performance this past fiscal year," 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 and chief executive officer. "During this challenging year, we developed and started to implement new initiatives designed to grow our strategic architectural products and services, and picture framing glass product lines. Our goal is to improve our business performance through our strategies during a cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. down market for our largest segment, architectural. "Apogee's earnings from continuing operations were consistent with our early February guidance of $0.19 to $0.22 per share, excluding charges of $0.03 per share related to the sale of our non-strategic picture framing matboard product line; an agreement to sell the line was signed the last week of the fiscal year," he said. "Our net results, which include discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , were a loss primarily related to the sale of Harmon AutoGlass, a key step in the strategic repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. of our company. "Our large-scale optical segment continued to successfully convert the picture framing industry to its value-added products," Huffer said. "Results were impacted by charges taken in the fourth quarter related to the integration of the two businesses in the segment and the sale of the non-strategic matboard product line completed in March 2004, moves designed to increase focus on our profitable picture framing glass products. "A significant portion of our fiscal 2004 operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before came from our windshield manufacturing business, which provides the majority of its production under a supply agreement that ends in July July: see month. 2005," he said. "We are in discussions regarding a new supply agreement. "Despite our difficult year, we increased our dividend 4.4 percent, funded $1.3 million in share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. and reduced our 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 $7.6 million to $39.7 million at year end," he said. Fourth quarter results Apogee reported a fourth quarter loss from continuing operations of $0.14 per share, or $3.7 million, versus earnings of $0.27 per share, or $7.5 million, in the prior-year period. Fourth quarter revenues of $134.5 million were down 8 percent as expected, compared to revenues of $145.9 million in the same period last year. The net loss in the fiscal 2004 fourth quarter was $0.24 per share or $6.5 million, versus net earnings of $0.31 per share, or $8.5 million in the prior-year period as Apogee absorbed charges related to its strategic repositioning initiatives. Fourth quarter discontinued operations reported a loss of $0.10 per share, or $2.8 million, compared with earnings of $0.04 per share, or $1.0 million, in the fiscal 2003 period, due to charges related to the sale of Harmon AutoGlass and operating losses. "As we had anticipated, significant construction project delays, along with challenging job margins, impacted architectural segment results," said Huffer. "Also contributing to the quarter's continuing operations losses were pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charges of $1.7 million resulting from the sale of our matboard product line, completed March 31, 2004, and the integration of our two large-scale optical businesses to better serve picture framing markets, as well as a $1.4 million one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. reduction in autoglass segment earnings due to previously-discussed pricing amendments." Architectural products and services Fourth quarter revenues for Apogee's largest segment, architectural products and services, continued to be below the prior year as expected, due to the soft commercial construction market overall and specifically the office sector, usually Apogee's largest market. Revenues were down 8 percent to $104.0 million, compared to $113.2 million in the prior-year quarter. There was an operating loss of $4.1 million, compared to earnings of $6.5 million a year ago. As had been anticipated in our previous guidance, approximately $16 million in fourth quarter revenues shifted into fiscal 2005 as a result of project delays and adjustments to project timing and flow. This revenue shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. , along with margin issues on isolated projects in the installation and window and curtainwall manufacturing businesses, led to the segment operating loss. 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. increased to $224.5 million, up more than 50 percent from a year ago. The fourth quarter backlog compares to $209.1 million at the end of the third quarter and a backlog of $147.3 million in the prior-year period. All segment businesses contributed to the fourth-quarter increase in the backlog. Large-scale optical technologies Fourth quarter large-scale optical segment revenues were $20.4 million, down 6 percent compared to revenues of $21.7 million in the prior-year period. Revenues were slightly below expectations due to lower sales in consumer electronics markets. The segment had an operating loss of $0.7 million, compared to 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. of $2.4 million in an unusually strong prior-year period. Impacting fiscal 2004 fourth quarter earnings were $0.6 million in pre-tax restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. as the two businesses in the segment are integrated and $1.1 million in charges related to the sale of the matboard product line, completed in the first quarter of fiscal 2005. Automotive replacement glass and services Auto glass segment revenues for the fourth quarter, which reflect only the manufacturing business, were $10.1 million, versus $11.1 million in the prior-year period. The segment reported operating income of $1.4 million, down from $3.7 million in the prior-year period. This was primarily due to amending the existing 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 joint venture pricing amendments to better reflect market pricing, which resulted in a one-time reduction of $1.4 million. Overall manufacturing pricing declined approximately 7 percent compared to a year ago on flat volume. Apogee has received the required advance notice from 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. that its windshield supply agreement will be terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: on the expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. in July 2005, which is during fiscal 2006, and is in discussions regarding a new supply agreement. This is not expected to impact fiscal 2005 earnings. Equity in affiliates Apogee's loss from investments in PPG Auto Glass, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control was $2.3 million in the fourth quarter, versus a loss of $1.6 million in the prior-year period. This joint venture performance reflects reduced volume and ongoing replacement auto glass market pricing pressures, slightly offset by improved operating performance. Discontinued operations Fourth quarter discontinued operations reported a loss of $0.10 per share, or $2.8 million, compared with earnings of $0.04 per share, or $1.0 million, in the fiscal 2003 period. The current quarter results include an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge of $2.3 million related to the sale of Harmon AutoGlass, as well as operating losses prior to the closing on January 2, 2004, but no adjustments for European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. discontinued operations. Prior-year period discontinued operations included after-tax income of $3.6 million from discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: European curtainwall operations, offset by the performance of Harmon AutoGlass. For the full-year, discontinued operations had a loss of $0.37 per share, or $10.2 million, compared to earnings of $0.04 or $1.0 million the prior year. Financial condition Long-term debt was $39.7 million at the end of the fourth quarter, down from $41.7 million at the end of the third quarter and $47.3 million at the end of fiscal 2003. The company's debt-to-total-capital ratio was 19 percent at the end of the year, compared to 21 percent at the end of the prior year. Non-cash working capital (current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. , excluding cash, less current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. ) increased slightly to $59.4 million at the end of the quarter, from $57.1 million at the end of the third quarter. For fiscal 2004, depreciation and amortization for continuing operations totaled $19.7 million, compared to $20.8 million in fiscal 2003. Full-year capital expenditures for continuing operations were $11.5 million, even with $11.2 million in the prior year. Full-year results benefited by $0.13 per share, or $3.6 million, due to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacts of constant tax deductions Tax deduction An expense that a taxpayer is allowed to deduct from taxable income. tax deduction See deduction. and credits relative to a reduced base of pre-tax income, and additional deductions from an intellectual property donation. Outlook "We are anticipating a better performance in fiscal 2005 than we delivered this past year due to our stronger architectural backlog, improving performance in our glass installation business and success with our picture framing glass strategies," said Huffer. "We are continuing to face uncertainty, though, as we enter the year since the commercial construction markets have yet to begin a sustained rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective . As a result, our guidance for fiscal 2005 is earnings from continuing operations ranging from $0.30 to $0.50 per share, with our architectural segment being the key driver within this wide range. "The low end of the range reflects flat markets for our architectural segment but some increased penetration in the education, health care and government sectors served, as well as a continuation of the current rate of project delays," said Huffer. "To achieve the high end of our guidance range, we'll we'll Contraction of we will. we'll we will or we shall we'll will ~shall need to see overall market improvement of the 4 percent F.W. Dodge is calling for over calendar 2004, which will impact us late in our fiscal year, and stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders of project timing. Also impacting our performance within the range is the rate at which we improve the predictability and performance of our glass installation business. "A key metric to measure our architectural progress is our backlog, which currently provides a solid level of work for us in the first half of fiscal 2005. We are starting out this fiscal year with a much larger backlog than we had last year as our markets have somewhat stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. , and our goal is to continue year-over-year growth in the architectural backlog," he said. "The large-scale optical segment will continue to convert picture framers to use of value-added glass, with sales of these products expected to grow 10 to 15 percent in fiscal 2005," he said. "However, we anticipate revenues for the segment will be flat with our strategic sale of the low-margin matboard product line and exit from low-margin consumer electronics coatings. As the segment continues to sell a greater proportion of value-added framing glass, rather than other lower-margin products, we expect our profitability will continue to improve. "Although fiscal 2005 remains challenging for our architectural segment, we are starting to see some positive trends," Huffer said. "Our inbound in·bound 1 adj. Bound inward; incoming: inbound commuter traffic. Adj. 1. inbound order rates for architectural glass fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. and windows and curtainwall have improved in the last few months. Our backlog has grown more than 50 percent over the past year, which is clear evidence that we are winning more business in tough market conditions. I am encouraged that we are seeing stability in pricing and margins in the architectural segment. "Apogee's expectations for architectural revenue growth in fiscal 2005 surpass the industry outlook for the year," he said. "The latest industry forecasts from F.W. Dodge called for the total non-residential market to be down 2.2 percent, with our important office sector declining 8.8 percent. These Dodge calendar 2003 forecasts correlate to Apogee's fiscal 2005 because the timing of our products and services lags construction project starts by about nine months. The calendar 2004 forecast, which impacts Apogee in late fiscal 2005 and fiscal 2006, is for an increase of 4.0 percent for total non-residential and 9.6 percent for the office sector. "We'll continue to use our positive cash flow to pay our dividend, fund capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. and finance our growth as markets improve," said Huffer. "Other uses for cash, including debt reduction and stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. , will be considered in conjunction with strategic opportunities, including expansions in value-added architectural glass and storefront markets. "This year will be pivotal in repositioning Apogee for a stronger future through our strategies for growing our architectural products and services, and picture framing glass businesses. These strategies are designed to help grow our core businesses, obtain new revenues from extensions of these businesses, and achieve higher profitability on our revenues," he said. "In addition, we have incorporated in our fiscal 2005 guidance $5 million in pre-tax overhead savings from consolidating our large-scale optical businesses and streamlining our glass installation management organization. These efforts are part of a larger initiative to realign 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. overhead costs overhead costs see fixed costs. to better serve our growth opportunities and improve returns." Huffer noted that for fiscal 2005 Apogee will be providing annual guidance, and not quarterly expectations, due to the unpredictability of architectural markets and project flow timing. The following statements are based on current expectations for fiscal 2005. 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. -- Overall revenues for the year are expected to increase 3 to 8 percent, with most of the growth occurring in the first half of the year. -- Architectural segment revenues are expected to increase from 6 percent (no market improvement) to 11 percent (market improvement) during the year. -- Large-scale optical revenues are expected to be flat compared to the prior year. -- Auto glass manufacturing revenues are expected to be more than 15 percent lower than in fiscal 2004. -- Annual gross margins are expected to be approximately 2 percentage points higher than the prior year, as operational improvements and cost reductions are somewhat offset by higher costs for wages and insurance. -- Expected annual operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: by segment are: architectural, approximately 1.5 to 3 percent; large-scale optical, 6 to 11 percent; and auto glass, 6 to 7 percent. -- Year-over-year quarterly growth in the architectural backlog is required to meet EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. expectations. -- Large-scale optical sales of value-added picture framing glass products are expected to grow 10 to 15 percent, offset by no sales of matboard products and declining consumer electronics revenues. -- SG&A is projected to be slightly lower as a percent of sales. -- Equity in affiliates, which reflects Apogee's portion of the results of the PPG AG joint venture, is expected to have income of approximately $4 million, with the earnings resulting from amending the existing PPG Auto Glass joint venture pricing amendments to better reflect market pricing. -- Full-year capital expenditures are targeted at $15 million, excluding any strategic initiatives. -- Depreciation and amortization is estimated at $19 million for the year. -- Debt is expected to be reduced further by year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , excluding any strategic initiatives. -- The effective tax rate for the full year is anticipated to be 34 percent. -- Earnings per share from continuing operations are expected to range from $0.30 to $0.50 for the full year. -- Discontinued operations in early fiscal 2005 are expected to reflect limited costs related to the finalization Writing the table of contents (TOC) on a recordable CD or DVD disc. The finalization process ensures that the disc can be played back on most CD and DVD players. See disc-at-once. of the sale of Harmon AutoGlass. The discussion above, including all statements in the Outlook section, 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 Apogee management's expectations or beliefs as of the date of this release. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements are qualified by factors that may affect the operating results of the company, including the following: Operational risks within (A) the Architectural segment: i) competitive, price-sensitive and changing market conditions, including unforeseen delays in project timing and work flow; ii) economic conditions and the cyclical nature of the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. commercial construction industry; iii) product performance, reliability or quality problems that could delay payments, increase costs, impact orders or lead to litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; and iv) the segment's ability to fully utilize production capacity; (B) the Large-Scale Optical segment: i) integration of the two manufacturing facilities in this segment; ii) timing of the transition of manufacturing capacity from consumer electronics to picture framing products; iii) markets that are impacted by consumer confidence; iv) dependence on a relatively small number of customers; and v) ability to utilize manufacturing facilities; and (C) the Auto Glass segment: i) negotiation of a new 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. supply agreement between Curvlite and PPG Industries; ii) changes in market dynamics; iii) market seasonality; iv) highly competitive, fairly mature industry; and v) performance of the PPG Auto Glass, LLC joint venture. Additional factors include: i) revenue and operating results that are volatile; ii) the possibility of a material product liability event; iii) the costs of compliance with governmental regulations relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc hazardous substances; iv) management of discontinued operations exiting activities; and v) foreign currency risk related to discontinued operations. The company cautions readers that actual future results could differ materially from those described in the forward-looking statements. The company wishes to caution investors that other factors may in the future prove to be important in affecting the company's results of operations. New factors emerge from time to time and it is not possible for management to predict all such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or a combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. For a more detailed explanation of the forgoing for·go also fore·go tr.v. for·went , for·gone , for·go·ing, for·goes To abstain from; relinquish: unwilling to forgo dessert. and other risks and uncertainties, see Exhibit 99.1 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 1, 2003. Teleconference and simultaneous webcast Analysts, investors and media are invited to listen to Apogee's live teleconference or webcast at 10 a.m. Central Time tomorrow, April 8. To participate in the teleconference, call 1-800-901-5213 toll free or 617-786-2962 international, access code 28617219. The replay will be available from noon Central Time on Thursday Thursday: see week. , April 8, through midnight Central Time on Thursday, April 15, by calling 1-888-286-8010 toll free, access code 45218907. 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, install, maintain and renovate the walls of glass and windows comprising the outside skin of commercial and institutional buildings. Businesses in this segment are: Viracon, the leading 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 for global markets; Harmon, Inc., one of 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, maintenance and renovation companies; 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 and Wall Systems, a manufacturer of custom aluminum window systems and curtainwall; and Linetec, a paint and anodizing anodizing Method of coating metal for corrosion resistance, electrical insulation, thermal control, abrasion resistance, sealing, improving paint adhesion, and decorative finishing. finisher of window frames and PVC PVC: see polyvinyl chloride. PVC in full polyvinyl chloride Synthetic resin, an organic polymer made by treating vinyl chloride monomers with a peroxide. shutters. -- Large-scale optical technologies segment consists of Tru Vue, a value-added glass and acrylic acrylic, artificial fiber made from a special group of vinyl compounds, primarily acrylonitrile. Acrylic fibers are thermoplastic (i.e., soften when heated, reharden upon cooling), have low moisture regain, are low in density, and can be made into bulky fabrics. manufacturer for the custom framing and pre-framed art markets, and a producer of optical thin film coatings for consumer electronics displays. -- Automotive replacement glass and services segment consists of Viracon/Curvlite, a 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 Ended Weeks Ended
Dollar amounts in thousands, except February 28, March 1, %
for per share amounts 2004 2003 Change
------------ ----------- ------
Net sales $134,456 $145,877 -8%
Cost of goods sold 115,170 109,810 5%
------------ -----------
Gross profit 19,286 36,067 -47%
Selling, general and administrative
expenses 23,073 23,888 -3%
------------ -----------
Operating (loss) income (3,787) 12,179 N/M
Interest income 125 177 -29%
Interest expense 934 982 -5%
Other income (expense), net 79 (33) N/M
Equity in (loss) of affiliated
companies (2,343) (1,570) -49%
------------ -----------
(Loss) earnings from continuing
operations before income taxes
and other items below (6,860) 9,771 N/M
Income tax (benefit) expense (3,128) 2,264 N/M
------------ -----------
(Loss) earnings from continuing
operations (3,732) 7,507 N/M
(Loss) earnings from discontinued
operations (2,768) 1,041 N/M
------------ -----------
Net (loss) earnings ($6,500) $8,548 N/M
============ ===========
Earnings per share - basic:
(Loss) earnings from continuing
operations ($0.14) $0.28 N/M
(Loss) earnings from discontinued
operations ($0.10) $0.04 N/M
Net (loss) earnings ($0.24) $0.32 N/M
Average common shares outstanding 27,045,453 27,028,124 0%
Earnings per share - diluted:
(Loss) earnings from continuing
operations ($0.14) $0.27 N/M
(Loss) earnings from discontinued
operations ($0.10) $0.04 N/M
Net (loss) earnings ($0.24) $0.31 N/M
Average common and common equivalent
shares outstanding 27,045,453 27,659,674 -2%
Cash dividends per common share $0.0600 $0.0575 4%
Fifty-two Fifty-two
Weeks Ended Weeks Ended
Dollar amounts in thousands, except February 28, March 1, %
for per share amounts 2004 2003 Change
------------ ----------- ------
Net sales $535,329 $584,882 -8%
Cost of goods sold 440,862 439,658 0%
------------ -----------
Gross profit 94,467 145,224 -35%
Selling, general and administrative
expenses 86,720 99,656 -13%
------------ -----------
Operating (loss) income 7,747 45,568 -83%
Interest income 568 1,071 -47%
Interest expense 3,713 4,468 -17%
Other income (expense), net 67 958 -93%
Equity in (loss) of affiliated
companies (3,165) (2,530) -25%
------------ -----------
(Loss) earnings from continuing
operations before income taxes
and other items below 1,504 40,599 -96%
Income tax (benefit) expense (3,128) 11,717 N/M
------------ -----------
(Loss) earnings from continuing
operations 4,632 28,882 -84%
(Loss) earnings from discontinued
operations (10,225) 1,033 N/M
------------ -----------
Net (loss) earnings ($5,593) $29,915 N/M
============ ===========
Earnings per share - basic:
(Loss) earnings from continuing
operations $0.17 $1.05 -84%
(Loss) earnings from discontinued
operations ($0.38) $0.04 N/M
Net (loss) earnings ($0.21) $1.09 N/M
Average common shares outstanding 27,036,855 27,520,951 -2%
Earnings per share - diluted:
(Loss) earnings from continuing
operations $0.17 $1.02 -83%
(Loss) earnings from discontinued
operations ($0.37) $0.04 N/M
Net (loss) earnings ($0.20) $1.06 N/M
Average common and common equivalent
shares outstanding 27,818,881 28,347,137 -2%
Cash dividends per common share $0.2350 $0.2250 4%
----------------------------------------------------------------------
Business Segments Information
(Unaudited)
Thirteen Thirteen
Weeks Ended Weeks Ended
February 28, March 1, %
2004 2003 Change
------------ ----------- ------
Sales
Architectural $104,018 $113,179 -8%
Large-Scale Optical 20,366 21,651 -6%
Auto Glass 10,086 11,069 -9%
Eliminations (14) (22) 36%
------------ -----------
Total $134,456 $145,877 -8%
------------ -----------
Operating income (loss)
Architectural ($4,077) $6,453 N/M
Large-Scale Optical (653) 2,370 N/M
Auto Glass 1,369 3,653 -63%
Corporate and other (425) (297) -43%
------------ -----------
Total ($3,786) $12,179 N/M
------------ -----------
Fifty-two Fifty-two
Weeks Ended Weeks Ended
February 28, March 1, %
2004 2003 Change
------------ ----------- ------
Sales
Architectural $411,425 $458,811 -10%
Large-Scale Optical 79,367 79,705 0%
Auto Glass 44,582 46,423 -4%
Eliminations (45) (57) 21%
------------ -----------
Total $535,329 $584,882 -8%
------------ -----------
Operating income (loss)
Architectural ($592) $32,134 N/M
Large-Scale Optical 2,793 3,694 -24%
Auto Glass 7,779 11,800 -34%
Corporate and other (2,233) (2,060) -8%
------------ -----------
Total $7,747 $45,568 -83%
------------ -----------
----------------------------------------------------------------------
Consolidated Condensed Balance Sheets
(Unaudited)
February 28, March 1,
2004 2003
------------ ------------
Assets
Current assets $167,947 $171,463
Net property, plant and equipment 98,536 108,966
Other assets 78,813 102,412
------------ ------------
Total assets $345,296 $382,841
------------ ------------
Liabilities and shareholders' equity
Current liabilities $100,731 $120,428
Long-term debt 39,650 47,258
Other liabilities 37,459 36,945
Shareholders' equity 167,456 178,210
------------ ------------
Total liabilities and shareholders'
equity $345,296 $382,841
------------ ------------
Apogee Enterprises, Inc. & Subsidiaries
Consolidated Statement of Cash Flows
(Unaudited)
Fifty-two Fifty-two
Weeks Ended Weeks Ended
Dollar amounts in thousands February 28, March 1,
2004 2003
------------ ------------
Net (loss) earnings ($5,593) $29,915
Net loss (earnings) from discontinued
operations 10,225 (1,033)
Depreciation & amortization 19,748 20,798
Results from equity-method investments 3,165 2,530
Other, net 2,835 (4,325)
Changes in operating assets and liabilities (11,790) 4,130
------------ ------------
Net cash provided by continuing operating
activities 18,590 52,015
------------ ------------
Capital expenditures (11,459) (11,208)
Other investing activities 6,457 9,819
------------ ------------
Net cash (used in) investing activities (5,002) (1,389)
------------ ------------
(Payments on) long-term debt and revolving
credit agreement (7,840) (21,940)
Proceeds from issuance of common stock 1,031 1,455
Repurchase and retirement of common stock (1,292) (18,000)
Dividends paid (6,450) (6,246)
Other, net - (835)
------------ ------------
Net cash (used in) financing activities (14,551) (45,566)
------------ ------------
Cash (used in) discontinued operations (1,381) (10,255)
------------ ------------
(Decrease) in cash and cash equivalents (2,344) (5,195)
Cash and cash equivalents at beginning of
year 10,166 15,361
------------ ------------
Cash and cash equivalents at end of period $7,822 $10,166
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