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 MINNEAPOLIS, Sept. 21 /PRNewswire/ -- Benefiting from continued strong demand for automotive glass products, Apogee Enterprises, Inc. (NASDAQ-NMS: APOG) today announced record sales and improved earnings in its second quarter of fiscal 1994.
 For the quarter ended Aug. 28, 1993, Apogee's net earnings increased 25 percent to $2,441,000, or 18 cents per share, compared to $1,949,000, or 15 cents per share, in the comparable period one year ago. Sales rose 20 percent to $175,568,000 from $145,802,000 in the earlier period.
 "We're happy to have produced another improved quarter," said Donald W. Goldfus, chairman and chief executive officer. "Thanks in particular to the continued strong demand for the fabrication, distribution and installation of automotive glass, our net income in the second quarter exceeded what we earned in the first six months of last year.
 "We wouldn't want to overstate the comparison with last year, which was a weak period for the company," Goldfus acknowledged, "but we believe that we are headed in the right direction."
 Net income for the six months ended Aug. 28, 1993, totaled $3,884,000, or 29 cents per share, up 71 percent from $2,268,000, or 17 cents per share one year ago. Sales for the six-month period totaled $324,320,000, a 17 percent increase from $276,680,000 in the first half of fiscal 1993. The first quarter and six months data for fiscal 1994 include a one-time gain of $525,000, or 4 cents per share, due to adoption of Financial Accounting Standards Board Statement No. 109 -- Accounting for Income Taxes. Excluding the gain, the company earned 25 cents per share in the first half.
 The company ended the second quarter of fiscal 1994 with a backlog of $375 million, a 33 percent increase from its $282 million backlog at the end of last year's second quarter. Included in the current total is the $41 million backlog assumed when Apogee's Commercial Construction Division acquired the French curtainwall contracting firm, CFEM Facades, in July.
 Goldfus said CFEM is expected to make a significant contribution to the Commercial Construction Division over the next several quarters. Despite a 21 percent increase in sales in the second quarter, the division, which includes Harmon Contract, suffered a large quarterly operating loss.
 "Construction-related markets in the U.S. are still in the doldrums and prices are being squeezed like never before," Goldfus said. "Thus, it is still too early to call for a return to profitability for the division," he added.
 Margin pressures also contributed to a Window Fabrication Division operating loss, despite an 11 percent sales gain. Goldfus noted continued strong sales and profits by the division's window coverings (blinds and shutters) operations.
 The Glass Fabrication Division, which is successfully balancing weak demand and reduced supply of architectural fabrication services in the wake of an industry consolidation, produced a 43 percent increase in operating income for the quarter. Revenues increased 16 percent. Goldfus said the Curvlite auto glass unit made another strong contribution to profits, as did the Tru Vue picture glass company.
 Goldfus said the highlight of the quarter came from Apogee's auto glass-related Installation and Distribution Division, which tripled earnings on 22 percent higher sales. The division operates 238 Harmon Glass auto glass stores, the 44-location Glass Depot wholesale system and the 3,000-affiliate Harmon Glass Network.
 Demand for replacement auto glass continues to be strong, and the company's "customer-focused, service-driven" marketing strategy appears to be gaining market share, Goldfus said.
 Viratec Thin Films, Apogee's optical-grade glass coating joint venture with Marvin Windows, generated a solid contribution to operating income on higher sales, according to Goldfus. Viratec continues to find new, global sources for its proprietary coated glass that enhances contrast and reduces eye fatigue for users of computer displays, he said.
 Apogee closed the quarter with shareholders' equity of $114.9 million, or $8.69 per share, compared to $111.9 million, or $8.49 per share, a year earlier. Long-term debt, at $42.1 million, represented 25 percent of total capitalization. The company's working capital of $83.6 million at Aug. 28, 1993, represented a current ratio of 1.7-to-1.
 Apogee Enterprises is an industry leader in the fabrication, installation and distribution of glass and aluminum. Its products and services include glass, windows and curtainwall for commercial and institutional construction and remodeling markets; curtainwall installation at major high-rise construction sites; design, manufacture and installation of institutional and government security systems; metal and glass coating services; fabrication, sale and installation of automotive glass; and such consumer-oriented products as venetian blinds, shutters, picture frame glass and computer anti-glare screens. Headquartered in Minneapolis, the company's stock is traded on NASDAQ's National Market System under the symbol APOG.
 For more information on Apogee Enterprises, Inc. via facsimile at no cost, simply dial 1-800-PRO-INFO and enter the company code number 014.
 13 Weeks Ended Change
 8/28/93 8/29/92
 Net sales $175,568,000 $145,802,000 20
 Earnings before income taxes 3,906,000 3,050,000 28
 Income taxes 1,465,000 1,101,000 33
 Net earnings before cumulative
 effect of change in accounting
 principle 2,441,000 1,949,000 25
 Cumulative effect of change in
 accounting principle -- -- --
 Net earnings $2,441,000 $1,949,000 25
 Earnings per share before
 cumulative effect of change
 in accounting principle $0.18 $0.15 20
 Cumulative effect of change in
 accounting principle -- -- --
 Earnings per common and common
 equivalent share $0.18 $0.15 20
 Average common & common equivalent
 shares outstanding 13,268,000 13,292,000 --
 Cash dividends per common share $0.070 $0.065 8
 26 Weeks Ended Change
 8/28/93 8/29/92
 Net sales $324,320,000 $276,680,000 17
 Earnings before income taxes 5,375,000 3,600,000 49
 Income taxes 2,016,000 1,332,000 51
 Net earnings before cumulative
 effect of change in accounting
 principle 3,359,000 2,268,000 48
 Cumulative effect of change in
 accounting principle 525,000 -- N/A
 Net earnings $3,884,000 $2,268,000 71
 Earnings per share before
 cumulative effect of change
 in accounting principle $0.25 $0.17 47
 Cumulative effect of change in
 accounting principle $0.04 -- N/A
 Earnings per common and common
 equivalent share $0.29 $0.17 71
 Average common & common equivalent
 shares outstanding 13,240,000 13,402,000 --
 Cash dividends per common share $0.140 $0.130 8
 -0- 9/21/93
 /CONTACT: Donald W. Goldfus, chairman and CEO, or William G. Gardner, treasurer of Apogee, 612-835-1874; or Michael Rosenbaum of The Financial Relations Board, 312-266-7800, for Apogee/

CO: Apogee Enterprises, Inc. ST: Minnesota IN: CST SU: ERN

KH-AL -- MN005 -- 4114 09/21/93 11:16 EDT
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Publication:PR Newswire
Date:Sep 21, 1993

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