x | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Minnesota | 41-0919654 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
4400 West 78th Street – Suite 520, Minneapolis, MN | 55435 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ¨ | Accelerated filer | x | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | ||
PART I | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 6. | ||
Item 1. | Financial Statements |
(In thousands, except per share data) | December 1, 2012 | March 3, 2012 | ||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 37,418 | $ | 54,027 | ||||
Short-term marketable securities available for sale | 25,154 | 11,664 | ||||||
Restricted short-term investments | 12,392 | 13,603 | ||||||
Receivables, net of allowance for doubtful accounts | 127,361 | 108,424 | ||||||
Inventories | 42,538 | 34,045 | ||||||
Deferred tax assets | 4,022 | 4,294 | ||||||
Other current assets | 4,346 | 3,382 | ||||||
Total current assets | 253,231 | 229,439 | ||||||
Property, plant and equipment, net | 162,358 | 159,547 | ||||||
Marketable securities available for sale | 10,356 | 7,936 | ||||||
Restricted investments | 14,290 | 9,533 | ||||||
Goodwill | 61,375 | 61,617 | ||||||
Intangible assets | 14,281 | 16,092 | ||||||
Other assets | 7,790 | 8,940 | ||||||
Total assets | $ | 523,681 | $ | 493,104 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 39,310 | $ | 34,025 | ||||
Accrued payroll and related benefits | 23,977 | 23,699 | ||||||
Accrued self-insurance reserves | 5,507 | 4,668 | ||||||
Other accrued expenses | 22,521 | 19,017 | ||||||
Current liabilities of discontinued operations | 345 | 799 | ||||||
Billings in excess of costs and earnings on uncompleted contracts | 26,262 | 22,550 | ||||||
Current portion long-term debt | 83 | 108 | ||||||
Accrued income taxes | 389 | 905 | ||||||
Total current liabilities | 118,394 | 105,771 | ||||||
Long-term debt | 30,775 | 20,916 | ||||||
Unrecognized tax benefits | 7,338 | 8,918 | ||||||
Long-term self-insurance reserves | 7,627 | 9,605 | ||||||
Deferred tax liabilities | 2,696 | 2,247 | ||||||
Other long-term liabilities | 26,224 | 23,929 | ||||||
Liabilities of discontinued operations | 485 | 520 | ||||||
Commitments and contingent liabilities (Note 13) | ||||||||
Shareholders’ equity | ||||||||
Common stock of $0.33-1/3 par value; authorized 50,000,000 shares; issued and outstanding 28,437,410 and 28,062,049, respectively | 9,479 | 9,354 | ||||||
Additional paid-in capital | 117,679 | 113,046 | ||||||
Retained earnings | 209,379 | 203,558 | ||||||
Common stock held in trust | (767 | ) | (745 | ) | ||||
Deferred compensation obligations | 767 | 745 | ||||||
Accumulated other comprehensive loss | (6,395 | ) | (4,760 | ) | ||||
Total shareholders’ equity | 330,142 | 321,198 | ||||||
Total liabilities and shareholders’ equity | $ | 523,681 | $ | 493,104 |
Three Months Ended | Nine Months Ended | |||||||||||||||
(In thousands, except per share data) | December 1, 2012 | November 26, 2011 | December 1, 2012 | November 26, 2011 | ||||||||||||
Net sales | $ | 190,416 | $ | 174,853 | $ | 520,490 | $ | 493,748 | ||||||||
Cost of sales | 148,176 | 140,125 | 411,038 | 409,383 | ||||||||||||
Gross profit | 42,240 | 34,728 | 109,452 | 84,365 | ||||||||||||
Selling, general and administrative expenses | 30,829 | 27,572 | 88,170 | 83,314 | ||||||||||||
Operating income | 11,411 | 7,156 | 21,282 | 1,051 | ||||||||||||
Interest income | 253 | 216 | 569 | 769 | ||||||||||||
Interest expense | 330 | 434 | 945 | 1,042 | ||||||||||||
Other income (expense), net | 198 | (90 | ) | 370 | 4 | |||||||||||
Earnings from continuing operations before income taxes | 11,532 | 6,848 | 21,276 | 782 | ||||||||||||
Income tax expense (benefit) | 3,480 | 1,312 | 6,800 | (900 | ) | |||||||||||
Earnings from continuing operations | 8,052 | 5,536 | 14,476 | 1,682 | ||||||||||||
Earnings from discontinued operations, net of income taxes | — | — | 239 | — | ||||||||||||
Net earnings | $ | 8,052 | $ | 5,536 | $ | 14,715 | $ | 1,682 | ||||||||
Earnings per share – basic | ||||||||||||||||
Earnings from continuing operations | $ | 0.29 | $ | 0.20 | $ | 0.52 | $ | 0.06 | ||||||||
Earnings from discontinued operations | — | — | 0.01 | — | ||||||||||||
Net earnings | $ | 0.29 | $ | 0.20 | $ | 0.53 | $ | 0.06 | ||||||||
Earnings per share – diluted | ||||||||||||||||
Earnings from continuing operations | $ | 0.28 | $ | 0.20 | $ | 0.51 | $ | 0.06 | ||||||||
Earnings from discontinued operations | — | — | 0.01 | — | ||||||||||||
Net earnings | $ | 0.28 | $ | 0.20 | $ | 0.52 | $ | 0.06 | ||||||||
Weighted average basic shares outstanding | 28,029 | 27,663 | 27,913 | 27,773 | ||||||||||||
Weighted average diluted shares outstanding | 28,832 | 27,824 | 28,497 | 27,943 | ||||||||||||
Cash dividends declared per common share | $ | 0.0900 | $ | 0.0815 | $ | 0.2700 | $ | 0.2445 |
Three Months Ended | Nine Months Ended | |||||||||||||||
(In thousands) | December 1, 2012 | November 26, 2011 | December 1, 2012 | November 26, 2011 | ||||||||||||
Net earnings | $ | 8,052 | $ | 5,536 | $ | 14,715 | $ | 1,682 | ||||||||
Other comprehensive (loss) earnings: | ||||||||||||||||
Unrealized (loss) gain on marketable securities, net of $0, $0, $5 and $(4) tax expense (benefit), respectively | (2 | ) | 1 | 9 | (7 | ) | ||||||||||
Foreign currency translation adjustments | (116 | ) | (3,728 | ) | (1,644 | ) | (2,385 | ) | ||||||||
Other comprehensive loss | (118 | ) | (3,727 | ) | (1,635 | ) | (2,392 | ) | ||||||||
Total comprehensive earnings (loss) | $ | 7,934 | $ | 1,809 | $ | 13,080 | $ | (710 | ) |
Nine Months Ended | ||||||||
(In thousands) | December 1, 2012 | November 26, 2011 | ||||||
Operating Activities | ||||||||
Net earnings | $ | 14,715 | $ | 1,682 | ||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||||
Net earnings from discontinued operations | (239 | ) | — | |||||
Depreciation and amortization | 19,817 | 20,615 | ||||||
Stock-based compensation | 3,514 | 3,343 | ||||||
Deferred income taxes | 697 | 1,812 | ||||||
Excess tax benefits from stock-based compensation | (380 | ) | (38 | ) | ||||
Gain on disposal of assets | (877 | ) | (705 | ) | ||||
Other, net | 393 | 111 | ||||||
Changes in operating assets and liabilities: | ||||||||
Receivables | (19,506 | ) | (20,990 | ) | ||||
Inventories | (8,672 | ) | (4,544 | ) | ||||
Accounts payable and accrued expenses | 12,635 | (772 | ) | |||||
Billings in excess of costs and earnings on uncompleted contracts | 3,712 | (3,650 | ) | |||||
Refundable and accrued income taxes | (1,783 | ) | (2,191 | ) | ||||
Other, net | (982 | ) | 607 | |||||
Net cash provided by (used in) continuing operating activities | 23,044 | (4,720 | ) | |||||
Investing Activities | ||||||||
Capital expenditures | (21,265 | ) | (6,206 | ) | ||||
Proceeds from sales of property, plant and equipment | 48 | 10,314 | ||||||
Acquisition of intangibles | (15 | ) | (68 | ) | ||||
Purchases of restricted investments | (10,000 | ) | (12,329 | ) | ||||
Sales/maturities of restricted investments | 5,248 | 24,994 | ||||||
Purchases of marketable securities | (40,837 | ) | (16,891 | ) | ||||
Sales/maturities of marketable securities | 26,922 | 22,698 | ||||||
Investments in corporate-owned life insurance policies | (1,451 | ) | (1,435 | ) | ||||
Net cash (used in) provided by investing activities | (41,350 | ) | 21,077 | |||||
Financing Activities | ||||||||
Proceeds from issuance of debt | 10,000 | 121 | ||||||
Payments on debt | (125 | ) | (1,287 | ) | ||||
Payments on debt issue costs | (574 | ) | (159 | ) | ||||
Shares withheld for taxes, net of stock issued to employees | (261 | ) | (743 | ) | ||||
Excess tax benefits from stock-based compensation | 380 | 38 | ||||||
Repurchase and retirement of common stock | — | (2,392 | ) | |||||
Dividends paid | (7,751 | ) | (6,865 | ) | ||||
Net cash provided by (used in) financing activities | 1,669 | (11,287 | ) | |||||
Cash Flows of Discontinued Operations | ||||||||
Net cash used in operating activities | (123 | ) | (3,300 | ) | ||||
Net cash used in discontinued operations | (123 | ) | (3,300 | ) | ||||
(Decrease) increase in cash and cash equivalents | (16,760 | ) | 1,770 | |||||
Effect of exchange rates on cash | 151 | (148 | ) | |||||
Cash and cash equivalents at beginning of year | 54,027 | 24,302 | ||||||
Cash and cash equivalents at end of period | $ | 37,418 | $ | 25,924 | ||||
Noncash Activity | ||||||||
Capital expenditures in accounts payable | $ | 888 | $ | 175 |
1. | Basis of Presentation |
2. | New Accounting Standards |
3. | Stock-Based Compensation |
Nine Months Ended | |
November 26, 2011 | |
Dividend yield | 3.9% |
Expected volatility | 56.1% |
Risk-free interest rate | 0.8% |
Expected lives | 4.6 Years |
Options/SARs Outstanding | ||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||
Outstanding at March 3, 2012 | 1,815,293 | $ | 15.71 | |||||||||
Awards exercised | (293,284 | ) | 13.56 | |||||||||
Awards canceled | (71,623 | ) | 21.41 | |||||||||
Outstanding at December 1, 2012 | 1,450,386 | $ | 15.87 | 5.3 Years | $ | 10,757,229 | ||||||
Vested or Expected to Vest at December 1, 2012 | 1,450,386 | $ | 15.87 | 5.3 Years | $ | 10,757,229 | ||||||
Exercisable at December 1, 2012 | 1,150,045 | $ | 17.83 | 4.4 Years | $ | 6,378,258 |
Nonvested Shares and Units | ||||||
Number of Shares and Units | Weighted Average Grant Date Fair Value | |||||
Nonvested at March 3, 2012 | 981,813 | $ | 12.64 | |||
Granted | 226,885 | 14.84 | ||||
Vested | (298,479 | ) | 12.82 | |||
Canceled(1) | (64,203 | ) | 13.42 | |||
Nonvested at December 1, 2012(2) | 846,016 | $ | 13.11 |
(1) | Includes 61,403 nonvested share units canceled under the fiscal 2010-2012 performance period because Apogee performed below target level for that performance period. Nonvested share units of 160,196 (at target) were previously granted in fiscal 2010 for this performance period. |
(2) | Includes a total of 292,118 nonvested share units granted and outstanding at target level for fiscal 2011-2013 and 2012-2014. |
4. | Earnings per Share |
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands, except per share data) | December 1, 2012 | November 26, 2011 | December 1, 2012 | November 26, 2011 | |||||||||||
Basic earnings per share – weighted common shares outstanding | 28,029 | 27,663 | 27,913 | 27,773 | |||||||||||
Weighted average effect of nonvested share grants and assumed exercise of stock options | 803 | 161 | 584 | 170 | |||||||||||
Diluted earnings per share – weighted common shares and potential common shares outstanding | 28,832 | 27,824 | 28,497 | 27,943 | |||||||||||
Earnings per share – basic | $ | 0.29 | $ | 0.20 | $ | 0.53 | $ | 0.06 | |||||||
Earnings per share – diluted | 0.28 | 0.20 | 0.52 | 0.06 | |||||||||||
Stock options excluded from the calculation of earnings per share because the exercise price was greater than the average market price of the common shares | 529 | 1,365 | 235 | 1,334 |
5. | Inventories |
(In thousands) | December 1, 2012 | March 3, 2012 | |||||
Raw materials | $ | 15,864 | $ | 12,772 | |||
Work-in-process | 9,205 | 7,956 | |||||
Finished goods | 13,046 | 10,386 | |||||
Costs and earnings in excess of billings on uncompleted contracts | 4,423 | 2,931 | |||||
Total inventories | $ | 42,538 | $ | 34,045 |
6. | Marketable Securities |
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||
December 1, 2012 | |||||||||||||||
Municipal bonds | $ | 35,566 | $ | 145 | $ | (201 | ) | $ | 35,510 | ||||||
Total investments | $ | 35,566 | $ | 145 | $ | (201 | ) | $ | 35,510 | ||||||
March 3, 2012 | |||||||||||||||
Municipal bonds | $ | 19,670 | $ | 188 | $ | (258 | ) | $ | 19,600 | ||||||
Total investments | $ | 19,670 | $ | 188 | $ | (258 | ) | $ | 19,600 |
Less Than 12 Months | Greater Than or Equal to 12 Months | Total | |||||||||||||||||||||
(In thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||
Municipal bonds | $ | 11,987 | $ | (8 | ) | $ | 1,057 | $ | (193 | ) | $ | 13,044 | $ | (201 | ) | ||||||||
Total investments | $ | 11,987 | $ | (8 | ) | $ | 1,057 | $ | (193 | ) | $ | 13,044 | $ | (201 | ) |
(In thousands) | Amortized Cost | Estimated Market Value | |||||
Due within one year | $ | 25,155 | $ | 25,154 | |||
Due after one year through five years | 3,983 | 4,015 | |||||
Due after five years through 10 years | 4,781 | 4,882 | |||||
Due after 10 years through 15 years | 1,530 | 1,338 | |||||
Due beyond 15 years | 117 | 121 | |||||
Total | $ | 35,566 | $ | 35,510 |
7. | Fair Value Measurements |
(In thousands) | Quoted Prices in Active Markets (Level 1) | Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Total Fair Value | |||||||||||
December 1, 2012 | |||||||||||||||
Cash equivalents | |||||||||||||||
Money market funds | $ | 17,886 | $ | — | $ | — | $ | 17,886 | |||||||
Total cash equivalents | 17,886 | — | — | 17,886 | |||||||||||
Short-term marketable securities available for sale | |||||||||||||||
Municipal bonds | $ | — | $ | 25,154 | $ | — | $ | 25,154 | |||||||
Total short-term marketable securities available for sale | — | 25,154 | — | 25,154 | |||||||||||
Marketable securities available for sale | |||||||||||||||
Municipal bonds | $ | — | $ | 10,356 | $ | — | $ | 10,356 | |||||||
Total marketable securities available for sale | — | 10,356 | — | 10,356 | |||||||||||
Restricted investments | |||||||||||||||
Money market funds | $ | 26,682 | $ | — | $ | — | $ | 26,682 | |||||||
Total restricted investments | 26,682 | — | — | 26,682 | |||||||||||
Mutual fund investments | |||||||||||||||
Mutual funds | $ | 174 | $ | — | $ | — | $ | 174 | |||||||
Total mutual fund investments | 174 | — | — | 174 | |||||||||||
Total assets at fair value | $ | 44,742 | $ | 35,510 | $ | — | $ | 80,252 | |||||||
March 3, 2012 | |||||||||||||||
Cash equivalents | |||||||||||||||
Money market funds | $ | 46,141 | $ | — | $ | — | $ | 46,141 | |||||||
Total cash equivalents | 46,141 | — | — | 46,141 | |||||||||||
Short-term marketable securities available for sale | |||||||||||||||
Municipal bonds | $ | — | $ | 11,664 | $ | — | $ | 11,664 | |||||||
Total short-term marketable securities available for sale | — | 11,664 | — | 11,664 | |||||||||||
Marketable securities available for sale | |||||||||||||||
Municipal bonds | $ | — | $ | 7,936 | $ | — | $ | 7,936 | |||||||
Total marketable securities available for sale | — | 7,936 | — | 7,936 | |||||||||||
Restricted investments | |||||||||||||||
Money market funds | $ | 23,136 | $ | — | $ | — | $ | 23,136 | |||||||
Total restricted investments | 23,136 | — | — | 23,136 | |||||||||||
Mutual fund investments | |||||||||||||||
Mutual funds | $ | 1,150 | $ | — | $ | — | $ | 1,150 | |||||||
Total mutual fund investments | 1,150 | — | — | 1,150 | |||||||||||
Total assets at fair value | $ | 70,427 | $ | 19,600 | $ | — | $ | 90,027 |
8. | Goodwill and Other Identifiable Intangible Assets |
(In thousands) | Architectural | Large-Scale Optical | Total | ||||||||
Balance at February 26, 2011 | $ | 51,447 | $ | 10,557 | $ | 62,004 | |||||
Foreign currency translation | (387 | ) | — | (387 | ) | ||||||
Balance at March 3, 2012 | 51,060 | 10,557 | 61,617 | ||||||||
Foreign currency translation | (242 | ) | — | (242 | ) | ||||||
Balance at December 1, 2012 | $ | 50,818 | $ | 10,557 | $ | 61,375 |
December 1, 2012 | |||||||||||||||
(In thousands) | Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation | Net | |||||||||||
Debt issue costs | $ | 3,497 | $ | (2,158 | ) | $ | — | $ | 1,339 | ||||||
Non-compete agreements | 6,824 | (5,962 | ) | (34 | ) | 828 | |||||||||
Customer relationships | 15,628 | (9,243 | ) | (233 | ) | 6,152 | |||||||||
Purchased intellectual property | 8,210 | (2,075 | ) | (173 | ) | 5,962 | |||||||||
Total | $ | 34,159 | $ | (19,438 | ) | $ | (440 | ) | $ | 14,281 |
March 3, 2012 | |||||||||||||||
(In thousands) | Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation | Net | |||||||||||
Debt issue costs | $ | 2,923 | $ | (1,897 | ) | $ | — | $ | 1,026 | ||||||
Non-compete agreements | 6,889 | (5,488 | ) | (64 | ) | 1,337 | |||||||||
Customer relationships | 16,069 | (8,376 | ) | (396 | ) | 7,297 | |||||||||
Purchased intellectual property | 8,517 | (1,794 | ) | (291 | ) | 6,432 | |||||||||
Total | $ | 34,398 | $ | (17,555 | ) | $ | (751 | ) | $ | 16,092 |
(In thousands) | Remainder of Fiscal 2013 | Fiscal 2014 | Fiscal 2015 | Fiscal 2016 | Fiscal 2017 | ||||||||||||||
Estimated amortization expense | $ | 677 | $ | 1,849 | $ | 1,656 | $ | 1,329 | $ | 1,161 |
9. | Debt |
10. | Employee Benefit Plans |
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands) | December 1, 2012 | November 26, 2011 | December 1, 2012 | November 26, 2011 | |||||||||||
Interest cost | $ | 142 | $ | 164 | $ | 426 | $ | 492 | |||||||
Expected return on assets | (44 | ) | (54 | ) | (132 | ) | (162 | ) | |||||||
Amortization of unrecognized net loss | 53 | 30 | 159 | 90 | |||||||||||
Net periodic benefit cost | $ | 151 | $ | 140 | $ | 453 | $ | 420 |
11. | Income Taxes |
12. | Discontinued Operations |
(In thousands) | December 1, 2012 | March 3, 2012 | |||||
Summary Balance Sheets of Discontinued Businesses | |||||||
Accounts payable and accrued liabilities | $ | 345 | $ | 799 | |||
Long-term liabilities | 485 | 520 |
13. | Commitments and Contingent Liabilities |
(In thousands) | Remainder of Fiscal 2013 | Fiscal 2014 | Fiscal 2015 | Fiscal 2016 | Fiscal 2017 | Thereafter | Total | ||||||||||||||||||||
Total minimum payments | $ | 1,825 | $ | 7,083 | $ | 5,996 | $ | 5,842 | $ | 4,054 | $ | 5,457 | $ | 30,257 |
Nine Months Ended | |||||||
(In thousands) | December 1, 2012 | November 26, 2011 | |||||
Balance at beginning of period | $ | 7,210 | $ | 9,887 | |||
Additional accruals | 3,197 | 2,370 | |||||
Claims paid | (2,185 | ) | (4,530 | ) | |||
Balance at end of period | $ | 8,222 | $ | 7,727 |
14. | Segment Information |
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands) | December 1, 2012 | November 26, 2011 | December 1, 2012 | November 26, 2011 | |||||||||||
Net Sales from Continuing Operations | |||||||||||||||
Architectural | $ | 168,770 | $ | 152,087 | $ | 460,015 | $ | 436,516 | |||||||
Large-Scale Optical | 21,648 | 22,769 | 60,477 | 57,235 | |||||||||||
Intersegment eliminations | (2 | ) | (3 | ) | (2 | ) | (3 | ) | |||||||
Net sales | $ | 190,416 | $ | 174,853 | $ | 520,490 | $ | 493,748 | |||||||
Operating Income (Loss) from Continuing Operations | |||||||||||||||
Architectural | $ | 5,837 | $ | 580 | $ | 6,978 | $ | (11,597 | ) | ||||||
Large-Scale Optical | 6,557 | 7,411 | 17,021 | 15,559 | |||||||||||
Corporate and other | (983 | ) | (835 | ) | (2,717 | ) | (2,911 | ) | |||||||
Operating income | $ | 11,411 | $ | 7,156 | $ | 21,282 | $ | 1,051 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended | Nine Months Ended | ||||||||
(Percent of net sales) | December 1, 2012 | November 26, 2011 | December 1, 2012 | November 26, 2011 | |||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |
Cost of sales | 77.8 | 80.1 | 79.0 | 82.9 | |||||
Gross profit | 22.2 | 19.9 | 21.0 | 17.1 | |||||
Selling, general and administrative expenses | 16.2 | 15.8 | 16.9 | 16.9 | |||||
Operating income | 6.0 | 4.1 | 4.1 | 0.2 | |||||
Interest income | 0.1 | 0.1 | 0.1 | 0.2 | |||||
Interest expense | 0.1 | 0.2 | 0.2 | 0.2 | |||||
Other income (expense), net | 0.1 | (0.1 | ) | 0.1 | — | ||||
Earnings from continuing operations before income taxes | 6.1 | 3.9 | 4.1 | 0.2 | |||||
Income tax expense (benefit) | 1.9 | 0.7 | 1.3 | (0.1 | ) | ||||
Earnings from continuing operations | 4.2 | % | 3.2 | % | 2.8 | % | 0.3 | % | |
Earnings from discontinued operations, net of income taxes | — | % | — | % | — | % | — | % | |
Net earnings | 4.2 | % | 3.2 | % | 2.8 | % | 0.3 | % | |
Effective tax rate for continuing operations | 30.2 | % | 19.2 | % | 32.0 | % | NM |
• | Consolidated net sales increased 8.9 percent, or $15.6 million, for the third quarter ended December 1, 2012, compared to the prior-year period and increased $26.7 million, or 5.4 percent, for the nine-month period. The increase in the quarter was primarily from share gains and geographic expansion in the installation business, as well as better pricing in the architectural glass business. The year-to-date growth was due to the growth in the installation business along with expansion in the storefront business, and a higher mix of value-added glass and acrylic in the LSO segment, partially offset by volume declines in the architectural glass business. |
• | Gross profit as a percent of sales for the quarter ended December 1, 2012 increased to 22.2 percent from 19.9 percent in the prior-year period, an increase of 2.3 percentage points. For the nine-month period, gross profit as a percent of sales was 21.0 percent, an improvement of 3.9 percentage points over the prior-year period. The increased gross margins were largely due to higher architectural glass pricing, the margin impact from volume growth in the storefront and installation businesses, a better mix of projects and good operational performance at all of our businesses. The year-to-date period was also positively impacted by an improved mix of higher value-added picture framing glass and acrylic in the LSO segment. |
• | Selling, general and administrative expenses for the third quarter were up $3.3 million over the prior year and increased as a percent of net sales to 16.2 percent from 15.8 percent in the prior-year period. For the nine-month period, selling, general and administrative expenses were up $4.9 million and were flat at 16.9 percent of net sales. The increase in spending for both the three and nine-month periods was primarily due to increased expense for incentive and long-term executive compensation programs, as Company operating performance has improved. In addition, we increased research and development and sales and marketing costs, as we continue to invest in new products, markets and geographies. For the nine-month period, these items were partially offset by a decrease in expenses related to CEO transition costs of $1.8 million that were incurred in the prior-year nine-month period. |
• | Income tax expense in the current-year quarter included a benefit of approximately $0.6 million as a result of entering into a settlement agreement with a state government with respect to certain issues for fiscal years 2005 through 2009. Income tax expense for the third quarter of fiscal 2012 included a benefit of approximately $1.1 million from statute of limitation expirations for fiscal years 2005 through 2008. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | December 1, 2012 | November 26, 2011 | % Change | December 1, 2012 | November 26, 2011 | % Change | |||||||||||||||
Net Sales from Continuing Operations | |||||||||||||||||||||
Architectural | $ | 168,770 | $ | 152,087 | 11.0 | % | $ | 460,015 | $ | 436,516 | 5.4 | % | |||||||||
Large-Scale Optical | 21,648 | 22,769 | (4.9 | ) | 60,477 | 57,235 | 5.7 | ||||||||||||||
Intersegment eliminations | (2 | ) | (3 | ) | NM | (2 | ) | (3 | ) | NM | |||||||||||
Net sales | $ | 190,416 | $ | 174,853 | 8.9 | % | $ | 520,490 | $ | 493,748 | 5.4 | % | |||||||||
Operating Income (Loss) from Continuing Operations | |||||||||||||||||||||
Architectural | $ | 5,837 | $ | 580 | NM | $ | 6,978 | $ | (11,597 | ) | NM | ||||||||||
Large-Scale Optical | 6,557 | 7,411 | (11.5 | ) | 17,021 | 15,559 | 9.4 | ||||||||||||||
Corporate and other | (983 | ) | (835 | ) | (17.7 | ) | (2,717 | ) | (2,911 | ) | 6.7 | ||||||||||
Operating income | $ | 11,411 | $ | 7,156 | NM | $ | 21,282 | $ | 1,051 | NM | |||||||||||
NM = not meaningful | |||||||||||||||||||||
Operating Margins | |||||||||||||||||||||
Architectural | 3.5 | % | 0.4 | % | 1.5 | % | (2.7 | )% | |||||||||||||
Large-Scale Optical | 30.3 | 32.5 | 28.1 | 27.2 | |||||||||||||||||
Operating margin | 6.0 | % | 4.1 | % | 4.1 | % | 0.2 | % |
• | Third-quarter net sales of $168.8 million were up 11.0 percent over prior-year net sales of $152.1 million, and net sales of $460.0 million for the nine-month period increased 5.4 percent over the prior-year period. For the quarter, revenues for all segment businesses increased over the prior-year period, with the largest increase occurring in the installation business as it grew share through expansion into new domestic geographies; better pricing in the architectural glass business also contributed to revenue growth. For the nine-month period, revenue growth in the installation and storefront businesses from expanding our domestic geographic footprint and share gains were partially offset by lower volume in the architectural glass business. |
• | The segment reported operating income of $5.8 million in the current quarter, compared to $0.6 million in the prior-year quarter, with operating margins of 3.5 percent compared to 0.4 percent in the prior-year quarter. For the nine-month period, the segment reported operating income of $7.0 million, compared to a loss of $11.6 million, while operating margins were 1.5 percent compared to a negative 2.7 percent in the prior-year period. The improved margins for both the quarter and nine-month periods were due primarily to improved architectural glass pricing, improved margins in the installation business, better mix and good operational performance throughout the segment. |
• | Architectural backlog at December 1, 2012, increased to $300.4 million, up approximately 33 percent over the prior-year period, and 27 percent over the fourth quarter of fiscal 2012. We expect approximately $111 million of the December 1, 2012 backlog to flow during the remainder of fiscal 2013, with the rest to flow in fiscal 2014. |
• | Third quarter net sales of $21.6 million decreased 4.9 percent from prior-year net sales of $22.8 million. The decrease in the quarter as compared to a strong prior-year quarter was due to the timing of customer promotions and the impact |
• | Operating income of $6.6 million in the quarter was down 11.5 percent from the prior-year period and operating margins were down 2.2 percentage points to 30.3 percent, compared to 32.5 percent in the prior-year period due to the decline in revenue for the quarter. Operating income improved 9.4 percent in the nine-month period to $17.0 million from $15.6 million in the prior-year period, and operating margins were 28.1 percent, up 0.9 percentage points over the prior-year period of 27.2 percent. The strong mix of value-added picture framing products and the impact from higher volume contributed to increased operating income and margins for the year-to-date period. |
• | At December 1, 2012, our consolidated backlog was $302.9 million, up approximately 34 percent over the prior-year period and up 27 percent over the end of fiscal 2012. |
• | The backlog of the Architectural segment represented more than 99 percent of consolidated backlog. |
• | We view backlog as an important statistic in evaluating the level of sales activity and short-term sales trends in our business. However, as backlog is only one indicator, and is not an effective indicator of our ultimate profitability, we do not believe that backlog should be used as the sole indicator of future earnings of the Company. |
Nine Months Ended | |||||||
(Cash effect, in thousands) | December 1, 2012 | November 26, 2011 | |||||
Operating Activities | |||||||
Net cash provided by (used in) continuing operating activities | $ | 23,044 | $ | (4,720 | ) | ||
Investing Activities | |||||||
Capital expenditures | (21,265 | ) | (6,206 | ) | |||
Proceeds from sales of property, plant and equipment | 48 | 10,314 | |||||
Change in restricted investments, net | (4,752 | ) | 12,665 | ||||
Net (purchases) sales of marketable securities | (13,915 | ) | 5,807 | ||||
Financing Activities | |||||||
Proceeds from issuance of debt | 10,000 | 121 | |||||
Repurchase and retirement of common stock | — | (2,392 | ) |
Future Cash Payments Due by Fiscal Period | |||||||||||||||||||||||||||
(In thousands) | 2013 Remaining | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | ||||||||||||||||||||
Continuing operations | |||||||||||||||||||||||||||
Industrial revenue bonds | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 18,400 | $ | 18,400 | |||||||||||||
Recovery zone facility bonds | — | — | — | — | — | 12,000 | 12,000 | ||||||||||||||||||||
Other debt obligations | 83 | 58 | 58 | 58 | 58 | 143 | 458 | ||||||||||||||||||||
Operating leases (undiscounted) | 1,825 | 7,083 | 5,996 | 5,842 | 4,054 | 5,457 | 30,257 | ||||||||||||||||||||
Purchase obligations | 46,498 | 31,186 | 133 | — | — | — | 77,817 | ||||||||||||||||||||
Other obligations | 42 | 146 | — | — | — | — | 188 | ||||||||||||||||||||
Total cash obligations | $ | 48,448 | $ | 38,473 | $ | 6,187 | $ | 5,900 | $ | 4,112 | $ | 36,000 | $ | 139,120 |
Amount of Commitment Expiration Per Fiscal Period | |||||||||||||||||||||||||||
(In thousands) | 2013 Remaining | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | ||||||||||||||||||||
Standby letters of credit | $ | — | $ | 31,256 | $ | — | $ | — | $ | — | $ | 4,500 | $ | 35,756 |
• | Overall revenues for the year are expected to grow 5 to 6 percent over fiscal 2012. |
• | We anticipate earnings per share of $0.62 to $0.67. |
• | Capital expenditures are projected to be approximately $30 million. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
a) | Evaluation of Disclosure Controls and Procedures. As of the end of the period covered by this report (the Evaluation Date), we carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act)). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the Evaluation Date, our disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in applicable rules and forms, and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure. |
b) | Changes in internal controls: There was no change in the Company’s internal control over financial reporting that occurred during the fiscal quarter ended December 1, 2012, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased (a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b) | Maximum Number of Shares that May Yet Be Purchased under the Plans or Programs | ||||||||
September 2, 2012 through September 29, 2012 | 16,358 | $ | 19.63 | — | 970,877 | |||||||
September 30, 2012 through October 27, 2012 | — | — | — | 970,877 | ||||||||
October 28, 2012 through December 1, 2012 | 9,981 | 22.20 | — | 970,877 | ||||||||
Total | 26,339 | $ | 20.48 | — | 970,877 |
(a) | The shares in this column represent shares that were surrendered to us by plan participants to satisfy stock-for-stock option exercises or withholding tax obligations related to stock-based compensation. |
(b) | In April 2003, the Board of Directors authorized the repurchase of 1,500,000 shares of Company stock, which was announced on April 10, 2003. In January 2008, the Board of Directors increased the authorization by 750,000 shares, which was announced on January 24, 2008. In October 2008, the Board of Directors increased the authorization by 1,000,000 shares, which was announced on October 8, 2008. The Company’s repurchase program does not have an expiration date. |
Item 6. | Exhibits |
10.1 | Amended and Restated Credit Agreement, dated as of October 19, 2012, by and among Apogee Enterprises, Inc., as the Borrower, the Lenders referred to herein, Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender, and Comerica Bank, as Documentation Agent and Issuing Lender. Incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed on October 25, 2012. |
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. |
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. |
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101 | The following materials from Apogee Enterprises, Inc.’s Quarterly Report on Form 10-Q for the quarter ended December 1, 2012 are furnished herewith, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets as of December 1, 2012 and March 3, 2012, (ii) the Consolidated Results of Operations for the three and nine months ended December 1, 2012 and November 26, 2011, (iii) the Consolidated Statements of Comprehensive Earnings for the three and nine months ended December 1, 2012 and November 26, 2011, (iv) the Consolidated Statements of Cash Flows for the nine months ended December 1, 2012 and November 26, 2011, and (v) Notes to Consolidated Financial Statements. |
APOGEE ENTERPRISES, INC. | |||
Date: January 10, 2013 | By: /s/ Joseph F. Puishys | ||
Joseph F. Puishys President and Chief Executive Officer (Principal Executive Officer) |
Date: January 10, 2013 | By: /s/ James S. Porter | ||
James S. Porter Chief Financial Officer (Principal Financial and Accounting Officer) |
10.1 | Amended and Restated Credit Agreement, dated as of October 19, 2012, by and among Apogee Enterprises, Inc., as the Borrower, the Lenders referred to herein, Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender, and Comerica Bank, as Documentation Agent and Issuing Lender. Incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed on October 25, 2012. |
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. |
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. |
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101 | The following materials from Apogee Enterprises, Inc.’s Quarterly Report on Form 10-Q for the quarter ended December 1, 2012 are furnished herewith, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets as of December 1, 2012 and March 3, 2012, (ii) the Consolidated Results of Operations for the three and nine months ended December 1, 2012 and November 26, 2011, (iii) the Consolidated Statements of Comprehensive Earnings for the three and nine months ended December 1, 2012 and November 26, 2011, (iv) the Consolidated Statements of Cash Flows for the nine months ended December 1, 2012 and November 26, 2011, and (v) Notes to Consolidated Financial Statements. |
1. | I have reviewed this quarterly report on Form 10-Q of Apogee Enterprises, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Joseph F. Puishys | |
Joseph F. Puishys President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Apogee Enterprises, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ James S. Porter | |
James S. Porter Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Joseph F. Puishys | |
Joseph F. Puishys President and Chief Executive Officer | |
January 10, 2013 |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ James S. Porter | |
James S. Porter Chief Financial Officer | |
January 10, 2013 |
Marketable Securities (Details 1) (USD $)
In Thousands, unless otherwise specified |
Dec. 01, 2012
|
---|---|
Schedule of length of time that available-for-sale securities were in continuous unrealized loss positions | |
Less Than 12 Months, Fair Value | $ 11,987 |
Less Than 12 Months, Unrealized Losses | (8) |
Greater Than or Equal to 12 Months, Fair Value | 1,057 |
Greater Than or Equal to 12 Months, Unrealized Losses | (193) |
Total Fair Value | 13,044 |
Total Unrealized Losses | (201) |
Municipal bonds [Member]
|
|
Schedule of length of time that available-for-sale securities were in continuous unrealized loss positions | |
Less Than 12 Months, Fair Value | 11,987 |
Less Than 12 Months, Unrealized Losses | (8) |
Greater Than or Equal to 12 Months, Fair Value | 1,057 |
Greater Than or Equal to 12 Months, Unrealized Losses | (193) |
Total Fair Value | 13,044 |
Total Unrealized Losses | $ (201) |
Commitments and Contingent Liabilities (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 01, 2012
|
---|---|
Future minimum rental payments under noncancelable operating leases | |
Total minimum payments, Remainder of Fiscal 2013 | $ 1,825 |
Total minimum payments, Fiscal 2014 | 7,083 |
Total minimum payments, Fiscal 2015 | 5,996 |
Total minimum payments, Fiscal 2016 | 5,842 |
Total minimum payments, Fiscal 2017 | 4,054 |
Total minimum payments, Thereafter | 5,457 |
Total | $ 30,257 |
Commitments and Contingent Liabilities (Details 1) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended | |
---|---|---|
Dec. 01, 2012
|
Nov. 26, 2011
|
|
Guarantees and warranties | ||
Balance at beginning of period | $ 7,210 | $ 9,887 |
Additional accruals | 3,197 | 2,370 |
Claims paid | (2,185) | (4,530) |
Balance at end of period | $ 8,222 | $ 7,727 |
Goodwill and Other Identifiable Intangible Assets (Details 2) (USD $)
In Thousands, unless otherwise specified |
Dec. 01, 2012
|
---|---|
Schedule of estimated future amortization expense for identifiable intangible assets | |
Estimated amortization expense, Remainder of Fiscal 2013 | $ 677 |
Estimated amortization expense, Fiscal 2014 | 1,849 |
Estimated amortization expense, Fiscal 2015 | 1,656 |
Estimated amortization expense, Fiscal 2016 | 1,329 |
Estimated amortization expense, Fiscal 2017 | $ 1,161 |
Segment Information (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 01, 2012
|
Nov. 26, 2011
|
Dec. 01, 2012
Segment
|
Nov. 26, 2011
|
|
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | 2 | |||
Sales and operating income data | ||||
Net sales | $ 190,416 | $ 174,853 | $ 520,490 | $ 493,748 |
Operating income (loss) | 11,411 | 7,156 | 21,282 | 1,051 |
Architectural [Member]
|
||||
Sales and operating income data | ||||
Net sales | 168,770 | 152,087 | 460,015 | 436,516 |
Operating income (loss) | 5,837 | 580 | 6,978 | (11,597) |
Large-Scale Optical [Member]
|
||||
Sales and operating income data | ||||
Net sales | 21,648 | 22,769 | 60,477 | 57,235 |
Operating income (loss) | 6,557 | 7,411 | 17,021 | 15,559 |
Intersegment eliminations [Member]
|
||||
Sales and operating income data | ||||
Net sales | (2) | (3) | (2) | (3) |
Corporate and other [Member]
|
||||
Sales and operating income data | ||||
Operating income (loss) | $ (983) | $ (835) | $ (2,717) | $ (2,911) |
Marketable Securities (Tables)
|
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Dec. 01, 2012
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Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost, gross unrealized gains and losses, and estimated fair values of investments available for sale | The amortized cost, gross unrealized gains and losses, and estimated fair values of investments available for sale at December 1, 2012 and March 3, 2012, are as follows:
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Schedule of length of time that available-for-sale securities were in continuous unrealized loss positions | The following table presents the length of time that available-for-sale securities were in continuous unrealized loss positions, but were not deemed to be other than temporarily impaired, as of December 1, 2012:
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Schedule of amortized cost and estimated fair values of investments by contractual maturity | The amortized cost and estimated fair values of investments at December 1, 2012, by contractual maturity are shown below. Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|
Employee Benefit Plans (Details Textual) (USD $)
In Millions, unless otherwise specified |
Dec. 01, 2012
|
---|---|
Compensation and Retirement Disclosure [Abstract] | |
Deferred compensation liability | $ 2.8 |
Investments in corporate-owned life insurance policies | 3.0 |
Mutual Fund Investments | $ 0.2 |
Inventories (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 01, 2012
|
Mar. 03, 2012
|
---|---|---|
Components of inventories | ||
Raw materials | $ 15,864 | $ 12,772 |
Work-in-process | 9,205 | 7,956 |
Finished goods | 13,046 | 10,386 |
Costs and earnings in excess of billings on uncompleted contracts | 4,423 | 2,931 |
Total inventories | $ 42,538 | $ 34,045 |
Discontinued Operations (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 01, 2012
|
Mar. 03, 2012
|
---|---|---|
Summary balance sheets of discontinued businesses | ||
Accounts payable and accrued liabilities | $ 345 | $ 799 |
Long-term liabilities | $ 485 | $ 520 |
Goodwill and Other Identifiable Intangible Assets (Details Textual) (USD $)
In Millions, unless otherwise specified |
9 Months Ended | |
---|---|---|
Dec. 01, 2012
|
Nov. 26, 2011
|
|
Goodwill and Other Identifiable Intangible Assets (Textual) [Abstract] | ||
Amortization expense on identifiable intangible assets | $ 2.0 | $ 2.2 |
New Accounting Standards
|
9 Months Ended |
---|---|
Dec. 01, 2012
|
|
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards In June 2011, the Financial Accounting Standards Board (FASB) amended its guidance on the presentation of comprehensive income in financial statements to improve the comparability, consistency and transparency of financial reporting and to increase the prominence of items that are recorded in other comprehensive income. The new guidance allows an entity to present components of net income and other comprehensive income in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. The new guidance eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. While the new guidance changes the presentation of comprehensive income, there are no changes to the components that are recognized in net income or other comprehensive income under current accounting guidance. This new guidance was effective for fiscal years and interim periods beginning after December 15, 2011, Apogee’s fiscal year 2013. The Company has adopted this guidance as of March 4, 2012 and has presented total comprehensive income in the Consolidated Statements of Comprehensive Earnings. In September 2011, the FASB amended U.S. GAAP on testing goodwill for impairment. Under this new guidance, entities testing goodwill for impairment now have an option of performing a qualitative assessment before having to calculate the fair value of a reporting unit. If an entity determines, on the basis of qualitative factors, that the fair value of the reporting unit is more-likely-than-not less than the carrying amount, the existing quantitative impairment test is required. Otherwise, no further impairment testing is required. The amendments were effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, Apogee’s fiscal year 2013. The adoption of this new standard in the first quarter of fiscal 2013 did not have an impact on Apogee’s consolidated financial position, results of operations or cash flows. No other new accounting pronouncements issued or effective during the first nine months of fiscal 2013 have had or are expected to have a material impact on the consolidated financial statements. |