Apogee Reports Second Quarter Fiscal 2005 Earnings; Announces Architectural Manufacturing Expansion.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. -- 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 ), today announced fiscal 2005 second quarter earnings. Apogee 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 . HIGHLIGHTS --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 $0.16 per share, versus $0.09 per share a year earlier. (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 .) --Includes $0.05 per share from net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of a class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax settlement with certain flat glass manufacturers covering 1991 to 1995. The proceeds are included in 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. for each segment. Prior-year second quarter results include a charge of $0.01 per share for closure of a small architectural finishing facility. --Revenues increased 11 percent versus the prior-year period. --Operating margin was 4.6 percent, or 3.1 percent excluding the flat glass settlement. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 2.4 percent in the prior-year period. Improved efficiencies on increased volume were offset by continued competitive architectural pricing and lower auto glass pricing. --Architectural segment revenues were up 21 percent, and operating income grew to $4.6 million from $0.9 million in the prior-year period. Increased volume led to higher capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. . In addition, project execution improved, while pricing remained competitive. --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. grew 24 percent from the prior-year period, and was down slightly from the first quarter level as new orders that went into backlog nearly offset strong revenues. --Large-scale optical segment revenues declined 17 percent as expected, while operating income increased from the prior-year period, largely due to the flat glass settlement. Sales of higher-margin value-added picture framing glazing Glazing The application of finely ground glass, or glass-forming materials, or a mixture of both, to a ceramic body and heating (firing) to a temperature where the material or materials melt, forming a coating of glass on the surface of the ware. products continue to be strong. --Auto glass segment revenues were down 28 percent and operating income declined 24 percent. Results were impacted by soft market conditions and termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of certain supply pricing amendments in fiscal 2004. --Apogee today announced an expansion of architectural glass fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. capacity estimated to cost approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $12 million. --Stock repurchases totaled $1.9 million, or 172,325 shares, in the quarter. Second quarter earnings from continuing operations were $0.16 per share, or $4.3 million, versus earnings of $0.09 per share, or $2.5 million, in the prior-year period. Revenues were $151.0 million, compared to revenues of $135.8 million in the same period last year. Net earnings in the second quarter, including discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , also were $0.16 per share, or $4.3 million. This compares to a net loss of $0.07 per share, or $1.9 million, in the prior-year period related to the sale of Harmon Harmon is a surname, and may refer to:
Commentary "We are pleased that our second quarter results met internal expectations," 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. "Our architectural segment again turned in a solid performance in soft commercial construction markets. The large-scale optical segment is benefiting from the consolidation of its two businesses into one as it enters the traditionally strongest part of its year. "I am very encouraged by our success at executing initiatives to increase architectural market share and to improve performance in this segment, along with some market strengthening," said Huffer. "With this momentum, we committed to the following key strategy in our growth plan. "We are investing approximately $12 million to expand our architectural glass fabrication capacity by approximately $20 million in annual revenue. This new capacity will be available to serve growth in our core, higher-end markets resulting from our initiatives and the market exit of an architectural glass 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: . We've we've Contraction of we have. we've have been focused on growing sales of our value-added glass, including energy-efficient, hurricane hurricane, tropical cyclone in which winds attain speeds greater than 74 mi (119 km) per hr. Wind speeds reach over 190 mi (289 km) per hr in some hurricanes. and blast 1. blast - BLT, used especially for large data sends over a network or comm line. Opposite of snarf. Usage: uncommon. The variant "blat" has been reported. 2. blast - [HP/Apollo] Synonymous with nuke. Sometimes the message "Unable to kill all processes. products, to the office, health care, education and institutional markets. We will also leverage this core market capacity to serve a portion of the broader market for smaller, less complex projects within 500 miles of our two facilities. "We will be breaking ground for the expansion in our third quarter and expect to begin full operations on the additional line at our Statesboro, Georgia Statesboro is a city in southeast Georgia, United States, serving as the county seat of Bulloch CountyGR6. Statesboro was chartered in 1803, starting as a small farming community providing the basic essentials for surrounding farms. , Viracon facility next summer during our fiscal 2006 second quarter," he said. SEGMENT AND OPERATING HIGHLIGHTS Architectural Products and Services --Revenues of $125.2 million were up 21 percent. Apogee continues to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the non-residential commercial construction market. --Operating income was $4.6 million, including flat glass settlement proceeds of $0.8 million. This was up significantly from earnings of $0.9 million a year ago. Improved earnings resulted from higher sales, and improved efficiency and project execution, somewhat offset by competitive pricing. --Operating margin was 3.7 percent, or 3.1 percent excluding the flat glass settlement. This compares to prior-year second quarter margin of 1.3 percent, excluding finishing plant shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down costs of $0.5 million. --Segment backlog was $223.9 million, compared to a backlog of $181.2 million in the prior-year period and $233.7 million at the end of the first quarter. Large-Scale Optical Technologies --Revenues of $17.7 million were down 17 percent as expected, compared to the prior-year period. This was due to elimination of approximately $1.2 million in revenues from sale of the matboard product line, as well as exit from certain consumer electronics products. Sales of value-added picture framing glass products grew more than 20 percent in the quarter. --Operating income was $1.7 million including proceeds of $0.3 million from the flat glass settlement, compared to $1.3 million the prior-year period. --Operating margin was 9.5 percent, or 7.8 percent excluding the flat glass settlement. The improvement from the prior-year margin of 6.2 percent is due to the transition to higher-margin picture framing glazing products, as well as efficiencies gained from consolidation of the two segment businesses. Automotive Replacement Glass and Services --Revenues of $8.0 million were down 28 percent from the prior-year period. --Operating income was $1.2 million, compared to $1.6 million in the prior-year period. --Segment results were breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations without the flat glass settlement of $1.1 million. --Segment results were impacted by soft market conditions with reduced demand and pricing, along with termination of certain supply agreement pricing amendments during fiscal 2004. Equity in Affiliates --Earnings of $0.2 million from investment in 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 were down slightly versus the prior-year period. The positive impact of terminating the pricing amendments to the joint venture supply agreement was more than offset by reduced volume and pricing. Discontinued Operations --There was no earnings per share impact in the quarter. This compares to a prior-year loss of $0.16 per share, reflecting operating results for Harmon AutoGlass that were more than offset by a charge of $0.18 per share for reducing its carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. . Financial Condition --Long-term debt was $43.2 million at the end of the second quarter, up from $39.7 million at the end of fiscal 2004. Purchase of a used coater and other equipment for the architectural glass expansion and 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. increased debt. --Debt-to-total-capital ratio was slightly higher at 20 percent. --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. ) was $64.2 million compared to $59.4 million at the end of fiscal 2004. Working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. increased as revenues grew. --Depreciation and amortization were $4.6 million in the second quarter, down 6 percent compared to the prior year. --Capital expenditures for the first six months were $10.5 million, with almost half of the expenditures related to the architectural glass expansion. This compares to $3.0 million the prior-year first half. OUTLOOK "Based on achieving another solid quarter for our architectural segment and the flat glass settlement of $0.05 per share in the period, we are increasing our fiscal 2005 guidance range to $0.45 to $0.55 per share," said Huffer. The previous range was $0.35 to $0.50 per share. "Achieving this guidance is contingent on Adj. 1. contingent on - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent upon, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent a continuation continuation - continuation passing style of current architectural market trends and project flow timing, with no significant external events," he said. "We expect that our architectural segment will continue to do better than the commercial construction industry this year," Huffer said. "We are anticipating architectural segment revenue growth of 14 to 17 percent for the fiscal year with continued pressure on margins. This is an increase from our previous outlook of 8 to 11 percent growth. We are gaining architectural market share with the success of our initiatives, including growth in our installation business and penetration The successful unauthorized breach of a security perimeter. See penetration test. of protective and hurricane markets. "It is also encouraging that our commercial construction markets are expected to grow next year, based on forecasts from F.W. Dodge," he said. "Dodge anticipates overall non-residential construction market growth of 4 percent and office building growth of 10 percent." These forecasts for calendar 2004 correlate to Apogee's fiscal 2006 due to the average nine-month lag between project starts and the installation of glass on buildings. "The large-scale optical segment expects to grow value-added glass sales more than 20 percent in fiscal 2005," Huffer said. "However, we anticipate revenues for the segment will be flat to down slightly for the full year as we continue to transition from matboard and some consumer electronics products to picture framing 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. . 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. "We expect to continue to generate positive operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. that will allow us to pay our dividend, reduce debt and 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. , including current growth initiatives," said Huffer. "We do not anticipate making further stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. during this fiscal year as we evaluate additional strategic opportunities. "We have repositioned Apogee for a stronger future through our strategies for growing our architectural products and services, and picture framing glazing businesses," he said. "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 with our progress to date. We are gaining architectural market share and have decided to expand our capacity. Our architectural products and services businesses are making significant operational improvements, both through our Six Sigma/Lean effort and by leveraging synergies. These efforts are starting to yield improved margins. We will continue to evaluate strategic opportunities to leverage assets and grow these businesses. "Our large-scale optical segment has seen 20 percent growth year to date in value-added picture framing products. We've been partnering with mass merchandisers and distributors to deliver more affordable products to convert consumers from clear glass to value-added products. At the same time, we are focused on growing sales in museum, fine art and international markets. We also expect growth from our recently expanded line of acrylic framing products, which allows us to offer a total glazing solution." 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 9 to 12 percent (prior range was 5 to 8 percent). --Architectural segment revenues are expected to increase from 14 to 17 percent (prior range was 8 to 11 percent) during the year. --Gaining market share with success of segment growth initiatives and exit of an architectural glass fabricator, but at continued lower margins due to the competitive environment when projects were bid several months ago. --Large-scale optical segment revenues are expected to be flat to down slightly compared to the prior year, with growth in picture framing glazing products offset by decreases in sales of consumer electronics and the sale of the matboard line. --Sales of value-added picture framing products are expected to grow more than 20 percent (prior guidance was 10 to 15 percent). --Auto glass segment revenues are expected to be more than 20 percent lower than in fiscal 2004 (prior guidance was more than 15 percent lower). --Challenging market conditions are leading to lower pricing. --Annual gross margins are expected to be 1 to 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 by segment are: architectural, 2.5 to 3.5 percent (prior range was 1.5 to 3 percent); large-scale optical, 8 to 10 percent (prior range was 7 to 10 percent); and auto glass, 4 to 5 percent (prior range was 6 to 7 percent). --Selling, general and administrative expenses as a percent of sales are projected to be 1 to 1.5 percentage points lower than in fiscal 2004. --Equity in affiliates, which reflects Apogee's portion of the results of the PPG Auto Glass joint venture, is expected to report a loss of $0.5 to $1 million (prior guidance was breakeven to earnings of $1 million). Competitive market with lower pricing is impacting performance. --Full-year capital expenditures are targeted at $25 to $30 million, including the new investment in architectural capacity and excluding any additional strategic initiatives. (Prior guidance was $15 million excluding strategic initiatives.) --Depreciation and amortization are estimated at $18 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 additional strategic initiatives. --The effective tax rate for the full year is anticipated to be approximately 32 percent. --Earnings per share from continuing operations are expected to range from $0.45 to $0.55 for the full year, including $0.05 per share from the flat glass settlement. (Prior guidance was $0.35 to $0.50 per share.) 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 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. 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 Viracon/Curvlite and 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. ; 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 With regard to computer memory, it means "temporary" and not "highly changeable," which is the usual meaning of the word. See volatile memory. 1. (programming) volatile - volatile variable. 2. (storage) volatile - See non-volatile storage. ; 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 foregoing and other risks and uncertainties, see Exhibit 99.1 to the company's Annual 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 February February: see month. 28, 2004. 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, September September: see month. 16. To participate in the teleconference, call 1-800-259-0251 toll free or 617-614-3671 international, access code 94994778. The replay will be available from noon Central Time on Thursday Thursday: see week. , September 16, through midnight Central Time on Thursday, September 23 by calling 1-888-286-8010 toll free, access code 67358187. 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, 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 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 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 August 28, August 30, %
for per share amounts 2004 2003 Change
------------ ----------- -------
Net sales $150,957 $135,844 11%
Cost of goods sold 122,813 111,468 10%
------------ -----------
Gross profit 28,144 24,376 15%
Selling, general and administrative
expenses 21,213 21,172 0%
------------ -----------
Operating income 6,931 3,204 116%
Interest income 455 153 N/M
Interest expense 878 917 -4%
Other income (expense), net 6 (6) N/M
Equity in income (loss) of affiliated
companies 184 555 -67%
------------ -----------
Earnings from continuing operations
before income taxes and other
items below 6,698 2,989 124%
Income taxes 2,377 488 387%
------------ -----------
Earnings from continuing
operations 4,321 2,501 73%
(Loss) earnings from discontinued
operations - (4,352) N/M
------------ -----------
Net earnings (loss) $4,321 ($1,851) N/M
============ ===========
Earnings per share - basic:
Earnings from continuing operations $0.16 $0.09 78%
(Loss) earnings from discontinued
operations $- ($0.16) N/M
Net earnings (loss) $0.16 ($0.07) N/M
Average common shares outstanding 27,066,144 27,057,482 0%
Earnings per share - diluted:
Earnings from continuing operations $0.16 $0.09 78%
Loss from discontinued operations $- ($0.16) N/M
Net earnings (loss) $0.16 ($0.07) N/M
Average common and common
equivalent shares outstanding 27,646,350 27,829,435 -1%
Cash dividends per common share $0.0600 $0.0575 4%
Twenty-six Twenty-six
Weeks Ended Weeks Ended
Dollar amounts in thousands, except August 28, August 30, %
for per share amounts 2004 2003 Change
------------ ----------- -------
Net sales $296,857 $257,311 15%
Cost of goods sold 242,899 210,460 15%
------------ -----------
Gross profit 53,958 46,851 15%
Selling, general and administrative
expenses 42,730 41,719 2%
------------ -----------
Operating income 11,228 5,132 119%
Interest income 1,538 312 N/M
Interest expense 1,776 1,883 -6%
Other income (expense), net (36) (6) N/M
Equity in income (loss) of affiliated
companies (466) (6) N/M
------------ -----------
Earnings from continuing operations
before income taxes and other
items below 10,488 3,549 196%
Income taxes 3,078 639 382%
------------ -----------
Earnings from continuing
operations 7,410 2,910 155%
(Loss) earnings from discontinued
operations 67 (4,454) N/M
------------ -----------
Net earnings (loss) $7,477 ($1,544) N/M
============ ===========
Earnings per share - basic:
Earnings from continuing operations $0.27 $0.10 170%
(Loss) earnings from discontinued
operations $0.01 ($0.16) N/M
Net earnings (loss) $0.28 ($0.06) N/M
Average common shares outstanding 27,085,220 27,001,702 0%
Earnings per share - diluted:
Earnings from continuing operations $0.27 $0.10 170%
Loss from discontinued operations $- ($0.16) N/M
Net earnings (loss) $0.27 ($0.06) N/M
Average common and common
equivalent shares outstanding 27,708,792 27,738,165 0%
Cash dividends per common share $0.1200 $0.1150 4%
----------------------------------------------------------------------
Business Segments Information
(Unaudited)
Thirteen Thirteen
Weeks Ended Weeks Ended
August 28, August 30, %
2004 2003 Change
------------ ----------- -------
Sales
Architectural $125,212 $103,508 21%
Large-scale Optical 17,706 21,220 -17%
Auto Glass 8,045 11,131 -28%
Eliminations (6) (15) 60%
------------ -----------
Total $150,957 $135,844 11%
------------ -----------
Operating income (loss)
Architectural $4,631 $855 442%
Large-scale Optical 1,674 1,307 28%
Auto Glass 1,239 1,632 -24%
Corporate and other (613) (590) -4%
------------ -----------
Total $6,931 $3,204 116%
------------ -----------
Twenty-six Twenty-six
Weeks Ended Weeks Ended
August 28, August 30, %
2004 2003 Change
------------ ----------- -------
Sales
Architectural $242,761 $198,452 22%
Large-scale Optical 36,254 36,957 -2%
Auto Glass 17,864 21,922 -19%
Eliminations (22) (20) -10%
------------ -----------
Total $296,857 $257,311 15%
------------ -----------
Operating income (loss)
Architectural $7,807 $1,801 333%
Large-scale Optical 2,249 956 135%
Auto Glass 2,379 3,575 -33%
Corporate and other (1,207) (1,200) -1%
------------ -----------
Total $11,228 $5,132 119%
------------ -----------
----------------------------------------------------------------------
Consolidated Condensed Balance Sheets
(Unaudited)
August 28, February 28,
2004 2004
------------ ------------
Assets
Current assets $168,649 $157,853
Net property, plant and equipment 100,453 98,536
Other assets 79,716 78,813
------------ ------------
Total assets $348,818 $335,202
------------ ------------
Liabilities and shareholders' equity
Current liabilities $99,006 $90,638
Long-term debt 43,200 39,650
Other liabilities 35,676 37,458
Shareholders' equity 170,936 167,456
------------ ------------
Total liabilities and shareholders'
equity $348,818 $335,202
------------ ------------
N/M = Not meaningful
Apogee Enterprises, Inc. & Subsidiaries
Consolidated Statement of Cash Flows
(Unaudited)
Twenty-six Twenty-six
Weeks Ended Weeks Ended
August 28, August 30,
Dollar amounts in thousands 2004 2003
-------------- ------------
Net earnings (loss) $7,477 ($1,544)
Net (earnings) loss from discontinued
operations (67) 4,454
Depreciation & amortization 9,040 10,173
Losses from equity investments 466 6
Other, net 272 (559)
Changes in operating assets and liabilities (7,261) (9,021)
-------------- ------------
Net cash provided by continuing operating
activities 9,927 3,509
-------------- ------------
Capital expenditures (10,539) (3,046)
Proceeds on sale of property 86 15
Net (purchases) sales of marketable
securities (411) 1,662
Other investing activities (12) (43)
-------------- ------------
Net cash used in investing activities (10,876) (1,412)
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Net proceeds from (payments on) long-term
debt and revolving credit agreement 3,542 (7,090)
Proceeds from issuance of common stock 327 1,332
Repurchase and retirement of common stock (1,909) -
Dividends paid (3,292) (3,157)
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Net cash used in financing activities (1,332) (8,915)
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Cash (used in) provided by discontinued
operations (89) 5,682
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Decrease in cash and cash equivalents (2,370) (1,136)
Cash and cash equivalents at beginning of
year 7,822 10,166
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Cash and cash equivalents at end of period $5,452 $9,030
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