Apogee Enterprises, Inc. (NASDAQ:APOG) Q1 2024 Earnings Conference Call June 23, 2023 9:00 AM ET Company Participants Jeff Huebschen - Vice President, Investor Relations Ty Silberhorn - Chief Executive Officer Matt Osberg - Chief Financial Officer Conference Call Participants Chris Moore - CJS Securities Eric Stine - Craig Hallum Julio Romero - Sidoti Operator Good day and thank you for standing by. Welcome to the First Quarter 2024 Apogee Enterprises’ Earnings Conference Call. At this time, all participant ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________________ FORM 10-K _________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 25, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | --- | --- | --- | |------------------------------------------------------------------------- ...

Apogee Enterprises, Inc. (NASDAQ:APOG) Q4 2023 Earnings Conference Call April 12, 2023 9:00 AM ET Company Participants Jeff Huebschen - Vice President, Investor Relations & Communications Ty Silberhorn - Chief Executive Officer Mark Augdahl - Interim Chief Financial Officer Conference Call Participants Chris Moore - CJS Securities Eric Stine - Craig Hallum Brent Thielman - D.A. Davidson Julio Romero - Sidoti & Company Operator Welcome to the Q4 2023 Apogee Enterprises Incorporated Earnings Conference Call. ...

Apogee Enterprises, Inc. Fiscal 2023 Fourth Quarter Earnings Call April 12, 2023 5050 Syracuse | Denver, CO | © JC Buck/Black Bike Productions LLC Non-GAAP measures & forward-looking statements This presentation contains non-GAAP financial measures which the company uses to evaluate historical and prospective financial performance, measure operational profitability on a consistent basis, and provide enhanced transparency to the investment community. Definitions for these non-GAAP financial measures are incl ...

[PART I Financial Information](index=3&type=section&id=PART%20I%20Financial%20Information) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements detail the company's financial position, operations, and cash flows [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $918.4 million, driven by higher receivables and a rise in long-term debt | Balance Sheet Items (In thousands) | November 26, 2022 | February 26, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $21,746 | $37,583 | | Receivables, net | $222,554 | $168,592 | | Total current assets | $396,690 | $337,892 | | Total assets | $918,446 | $887,863 | | Long-term debt | $203,735 | $162,000 | | Total liabilities | $540,808 | $501,664 | | Total shareholders' equity | $377,638 | $386,199 | [Consolidated Results of Operations](index=5&type=section&id=Consolidated%20Results%20of%20Operations) The company reported significant year-over-year growth in net sales and profitability for Q3 and the nine-month period | Metric (In thousands, except EPS) | Q3 FY2023 (ended Nov 26, 2022) | Q3 FY2022 (ended Nov 27, 2021) | YoY Change | | :--- | :--- | :--- | :--- | | Net sales | $367,847 | $334,217 | +10.1% | | Gross profit | $86,608 | $64,680 | +34.0% | | Operating income | $34,761 | $17,710 | +96.3% | | Net earnings | $23,765 | $11,057 | +115.0% | | Diluted EPS | $1.07 | $0.44 | +143.2% | | Metric (In thousands, except EPS) | Nine Months FY2023 (ended Nov 26, 2022) | Nine Months FY2022 (ended Nov 27, 2021) | YoY Change | | :--- | :--- | :--- | :--- | | Net sales | $1,096,591 | $986,020 | +11.2% | | Gross profit | $257,161 | $180,393 | +42.6% | | Operating income | $100,049 | $30,684 | +226.0% | | Net earnings | $83,885 | $19,759 | +324.5% | | Diluted EPS | $3.74 | $0.78 | +379.5% | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased due to working capital needs, while financing activities funded share repurchases and dividends | Cash Flow Activity (In thousands) | Nine Months Ended Nov 26, 2022 | Nine Months Ended Nov 27, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $51,112 | $86,291 | | Net cash used by investing activities | ($11,984) | ($11,647) | | Net cash used by financing activities | ($51,597) | ($43,994) | | (Decrease) increase in cash | ($12,469) | $30,650 | - Financing activities included **$74.3 million for share repurchases** and **$14.4 million for dividends** paid during the first nine months of fiscal 2023[15](index=15&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key disclosures include a segment reporting change, a backlog of $861.4 million, a significant tax benefit, and a pending legal award - Effective at the start of fiscal 2023, the Sotawall business was moved from the Architectural Framing Systems segment to the Architectural Services segment[23](index=23&type=chunk) - As of November 26, 2022, the company had **$861.4 million in unsatisfied performance obligations (backlog)**, with **$493.3 million** expected to be recognized as revenue within one year[30](index=30&type=chunk) - In Q2 FY2023, the company claimed a worthless stock loss deduction related to its investment in Sotawall Limited, generating a **net tax benefit of $13.7 million**[81](index=81&type=chunk) - In December 2022, a claimant in an arbitration was awarded **$20 million** against the company, which the company intends to appeal[74](index=74&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Q3 FY2023 sales growth driven by pricing, improved margins, segment performance, and an updated outlook [Overview and Results of Operations](index=24&type=section&id=Overview%20and%20Results%20of%20Operations) A new enterprise strategy contributed to a 10.1% sales increase and significant margin expansion in the third quarter - The company's new enterprise strategy focuses on three key elements: becoming the economic leader in target markets, actively managing the portfolio to drive higher margins, and strengthening core capabilities[96](index=96&type=chunk)[97](index=97&type=chunk) | Metric (% of Net Sales) | Q3 FY2023 | Q3 FY2022 | | :--- | :--- | :--- | | Gross profit | 23.5% | 19.4% | | Operating income | 9.4% | 5.3% | | Net earnings | 6.5% | 3.3% | [Segment Analysis](index=26&type=section&id=Segment%20Analysis) Segment performance varied, with strong growth in Architectural Framing Systems and a profit turnaround in Architectural Glass - **Architectural Framing Systems:** Q3 net sales increased **16.6% to $165.0 million**, and operating margin expanded to **13.4% from 8.5%** YoY, driven by inflation-related pricing actions[105](index=105&type=chunk)[106](index=106&type=chunk) - **Architectural Services:** Q3 net sales decreased **3.2% to $102.0 million**, with operating margin contracting to **5.9% from 7.4%** YoY, reflecting lower profitability on legacy Sotawall projects[108](index=108&type=chunk)[109](index=109&type=chunk) - **Architectural Glass:** Q3 net sales grew **9.8% to $81.5 million**, and the segment reported **operating income of $7.5 million** compared to a loss of $1.3 million YoY, due to improved pricing and productivity[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - **Large-Scale Optical (LSO):** Q3 net sales decreased **2.5% to $26.7 million**, but operating margin increased to **26.7% from 21.9%** YoY, aided by a non-recurring property tax adjustment[113](index=113&type=chunk)[114](index=114&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a solid liquidity position, having amended its credit facility while continuing share repurchases - Net cash from operations decreased to **$51.1 million** for the first nine months of FY2023 from $86.3 million in the prior year, due to increased working capital[116](index=116&type=chunk) - The company repurchased **1,571,139 shares for $74.3 million** in the first nine months of FY2023, with **1,253,399 shares** remaining authorized for repurchase[118](index=118&type=chunk) - During Q2, the company amended its revolving credit facility, increasing it to **$385 million** with a maturity of August 2027, and used borrowings to repay its **$150 million term loan**[119](index=119&type=chunk) [Outlook](index=29&type=section&id=Outlook) The company narrowed its full-year guidance, projecting adjusted EPS between $3.90 and $4.05 and revenue growth of approximately 10% | Full-Year FY2023 Guidance | Value | | :--- | :--- | | Adjusted EPS | $3.90 to $4.05 | | Revenue Growth | ~10% | | Capital Expenditures | ~$40 million | [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes in the company's market risk since the previous fiscal year-end - There have been no material changes in market risk since February 26, 2022[131](index=131&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The Chief Executive Officer and Interim Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the evaluation date[132](index=132&type=chunk) - No changes occurred during the fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[132](index=132&type=chunk) [PART II Other Information](index=30&type=section&id=PART%20II%20Other%20Information) [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is appealing a $20 million arbitration award which it believes will not have a material adverse effect - In December 2022, an arbitration claimant was awarded **$20 million** related to a commercial sealant product claim[133](index=133&type=chunk) - The Company plans to appeal the award and believes it will not have a material adverse effect on its financial condition, results of operations, or cash flows[133](index=133&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) No material changes or additions to previously disclosed risk factors were reported for the quarter - No material changes or additions to risk factors were reported for the quarter[134](index=134&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased during the third quarter, with 1,253,399 shares remaining under the repurchase authorization - No shares were purchased pursuant to the publicly announced repurchase program during the third fiscal quarter[135](index=135&type=chunk)[136](index=136&type=chunk) - As of November 26, 2022, the company has authorization to repurchase an additional **1,253,399 shares**[136](index=136&type=chunk) [Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including required CEO and CFO certifications and iXBRL data

Apogee Enterprises, Inc. (NASDAQ:APOG) Q3 2023 Earnings Conference Call December 22, 2022 9:00 AM ET Company Participants Jeff Huebschen - Investor Relations Ty Silberhorn - Chief Executive Officer Mark Augdahl - Interim Chief Financial Officer Conference Call Participants Chris Moore - CJS Securities Eric Stine - Craig-Hallum Brent Thielman - D.A. Davidson Julio Romero - Sidoti & Company Operator Good day and thank you for standing by. Welcome to the Apogee Enterprises Fiscal 2023 Third Quarter Earnings Co ...

Apogee Enterprises, Inc. (NASDAQ:APOG) Q2 2023 Conference Call September 20, 2022 9:00 AM ET Company Participants Jeff Huebschen - Vice President, Investor Relations Ty Silberhorn - Chief Executive Officer Mark Augdahl - Interim Chief Financial Officer Conference Call Participants C. Moore - JCS Securities Aaron Spychalla - Craig Hallum Brent Thielman - D.A. Davidson Julio Romero - Sidoti Operator Good day and thank you for standing by. Welcome to the Apogee Enterprises Fiscal 2023 Second Quarter Earnings C ...

PART I Financial Information [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Q1 FY23 financial statements show 9.4% net sales growth and doubled net earnings to $22.7 million, with negative operating cash flow and increased long-term debt [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Net sales reached $356.6 million, operating income doubled to $33.2 million, and diluted EPS rose to $1.00, with negative operating cash flow Consolidated Results of Operations (Q1 FY23 vs Q1 FY22) | Financial Metric | Three Months Ended May 28, 2022 (in thousands) | Three Months Ended May 29, 2021 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $356,635 | $326,006 | +9.4% | | **Gross Profit** | $85,617 | $67,710 | +26.4% | | **Operating Income** | $33,216 | $16,042 | +107.0% | | **Net Earnings** | $22,731 | $10,817 | +110.1% | | **Diluted EPS** | $1.00 | $0.42 | +138.1% | Key Balance Sheet Items (As of May 28, 2022) | Account | May 28, 2022 (in thousands) | February 26, 2022 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $15,186 | $37,583 | | Receivables, net | $193,741 | $168,592 | | Inventories | $98,517 | $80,494 | | Total current assets | $371,161 | $337,892 | | Long-term debt | $261,000 | $162,000 | | Total shareholders' equity | $327,290 | $386,199 | | **Total assets** | **$906,950** | **$887,863** | - Net cash used by operating activities was **$(30.5) million**, a significant shift from **$6.9 million** provided in the prior-year period, mainly due to increases in receivables and inventories. Net cash provided by financing activities was **$17.6 million**, driven by **$99.0 million** in net borrowings, which was partially offset by **$74.3 million** in share repurchases[15](index=15&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Segment reporting changed, reallocating Sotawall and goodwill; remaining performance obligations total $810.6 million, and share repurchase authorization increased - Effective at the start of Q1 fiscal 2023, the Sotawall business was moved from the Architectural Framing Systems segment to the Architectural Services segment, with comparative fiscal 2022 segment results recast to reflect this change[22](index=22&type=chunk)[83](index=83&type=chunk) - As of May 28, 2022, the transaction price associated with unsatisfied performance obligations was approximately **$810.6 million**, with **$505.1 million** expected to be recognized as revenue within one year[28](index=28&type=chunk)[29](index=29&type=chunk) - Goodwill was reallocated between the Architectural Framing Systems and Architectural Services segments due to the transition of the Sotawall business, with no impairment identified during the quarter[48](index=48&type=chunk)[49](index=49&type=chunk) - Subsequent to the end of the quarter, the Board of Directors increased the share repurchase authorization by an additional **1,000,000 shares**[88](index=88&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes 9.4% net sales growth to strong segments, with gross margin improving to 24.0% from pricing actions, and raised full-year adjusted EPS guidance - The company has established a new enterprise strategy with three key elements: becoming the economic leader in target markets, actively managing the portfolio to drive higher margins and returns, and strengthening core capabilities through a center-led functional model[95](index=95&type=chunk) - Consolidated net sales increased **9.4%** year-over-year, driven by growth in Architectural Framing Systems and Architectural Services. Gross margin expanded by **320 basis points** to **24.0%**, primarily due to inflation-related pricing actions[98](index=98&type=chunk)[101](index=101&type=chunk) - The company raised its full-year adjusted earnings guidance to a range of **$3.50 to $3.90** per diluted share, up from the previous range of **$2.90 to $3.30**, citing strong first-quarter results and the impact of share repurchases[121](index=121&type=chunk) [Segment Analysis](index=23&type=section&id=Segment%20Analysis) Architectural Framing Systems led with 182.7% operating income growth, while Architectural Services' income fell 30.7% due to write-downs, and Architectural Glass income surged 142.9% Segment Performance (Q1 FY23) | Segment | Net Sales (in thousands) | Operating Income (in thousands) | Operating Margin | YoY Sales Change | YoY Op. Income Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Architectural Framing Systems | $163,292 | $23,665 | 14.5% | +19.4% | +182.7% | | Architectural Services | $103,388 | $2,927 | 2.8% | +13.9% | -30.7% | | Architectural Glass | $76,265 | $5,169 | 6.8% | -8.1% | +142.9% | | Large-Scale Optical (LSO) | $25,162 | $6,498 | 25.8% | +3.9% | +11.1% | - Architectural Framing Systems' operating margin increased by **840 basis points**, benefiting from improved pricing and the timing of inventory flows, which offset cost inflation[104](index=104&type=chunk) - Architectural Services' operating margin decreased by **190 basis points**, reflecting performance write-downs on a discrete number of projects and increased costs for investments[107](index=107&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Operating activities used $30.5 million cash due to working capital, while financing provided $17.6 million from $99.0 million net debt borrowings, funding $74.3 million in share repurchases - Net cash used by operating activities was **$30.5 million**, compared to **$6.8 million** provided in the prior year, reflecting increased working capital to support revenue growth[113](index=113&type=chunk) - During the first three months of fiscal 2023, the company repurchased **1,571,139 shares** for a total cost of **$74.3 million**[115](index=115&type=chunk) - As of May 28, 2022, outstanding borrowings under the revolving credit facility were **$99.0 million**, and the company also has a **$150 million** term loan[116](index=116&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk have occurred since the fiscal year ended February 26, 2022 - There have been no material changes in market risk since February 26, 2022[127](index=127&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of May 28, 2022, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of May 28, 2022, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[128](index=128&type=chunk) - There were no changes in the company's internal control over financial reporting during the fiscal quarter that materially affected, or are reasonably likely to materially affect, these controls[128](index=128&type=chunk) PART II Other Information [Item 1. Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, none of which are expected to have a material adverse effect on financial condition or operations - The Company is party to various legal proceedings incidental to its normal operating activities, including disputes from construction projects, product liability, and employment matters, with no matters currently expected to result in material adverse losses[129](index=129&type=chunk) [Item 1A. Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) No material changes or additions to risk factors have occurred since the fiscal year ended February 26, 2022 - There have been no material changes or additions to the risk factors discussed in the Annual Report on Form 10-K for the fiscal year ended February 26, 2022[130](index=130&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 1,571,139 shares for $74.3 million in Q1 FY23, with 253,399 shares remaining authorized for repurchase Share Repurchases in Q1 FY2023 | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | Feb 27 - Mar 26, 2022 | 553,539 | $47.27 | 553,539 | | Mar 27 - Apr 23, 2022 | 1,019,451 | $47.19 | 1,017,600 | | Apr 24 - May 28, 2022 | 28,233 | $44.00 | — | | **Total** | **1,601,223** | **$47.13** | **1,571,139** | - As of the end of the quarter, the company had authorization to repurchase an additional **253,399 shares** under its plans[132](index=132&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents and officer certifications