Minnesota | 0-6365 | 41-0919654 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
4400 West 78th Street, Suite 520, Minneapolis, Minnesota | 55435 | |||
(Address of principal executive offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
APOGEE ENTERPRISES, INC. | ||
By: | /s/ James S. Porter | |
James S. Porter Chief Financial Officer |
Exhibit Number | Description | |||||
99.1 | Press Release issued by Apogee Enterprises, Inc. dated December 18, 2012. |
• | Revenues increased 9 percent |
• | Operating income grew 59 percent |
• | EPS improved 40 percent |
▪ | Revenues of $190.4 million were up 9 percent. |
▪ | Operating income was $11.4 million, up from $7.2 million. |
▪ | Earnings per share were $0.28, up from $0.20. |
▪ | Architectural segment revenues increased 11 percent, with operating income of $5.8 million compared to $0.6 million |
• | Backlog was $300.4 million, compared to $299.0 million in the second quarter and $225.1 million in the prior-year period. |
▪ | Large-scale optical segment revenues declined 5 percent, with operating income of $6.6 million compared to $7.4 million. |
▪ | Cash and short-term investments totaled $75.0 million, compared to $46.4 million. |
▪ | Revenues of $168.8 million were up 11 percent, with growth in all segment businesses, led by the installation business. |
▪ | Operating income was $5.8 million, compared to $0.6 million. |
• | Operating margin was 3.5 percent, compared to 0.4 percent. |
• | Results improved from the prior-year period, with higher architectural glass pricing, improving installation margins, better mix and good operational performance throughout the segment. |
▪ | Backlog was $300.4 million, compared to $299.0 million in the second quarter and $225.1 million in the prior-year period. |
• | Approximately $111 million, or 37 percent, of the backlog is expected to be delivered in fiscal 2013, and approximately $189 million, or 63 percent, in fiscal 2014. |
▪ | Revenues of $21.6 million were down $1.1 million, or 5 percent. |
▪ | Operating income was $6.6 million, compared to $7.4 million in a strong prior-year period. |
• | Operating margin was 30.3 percent, compared to 32.5 percent. |
▪ | The timing of customer promotions and the East Coast hurricane impacted results. |
▪ | Long-term debt was $30.8 million, compared to $20.9 million at the end of fiscal 2012. |
• | Long-term debt includes $30.4 million in long-term, low-interest industrial revenue and recovery zone facility bonds. |
▪ | Cash and short-term investments totaled $75.0 million, compared to $79.3 million at the end of fiscal 2012 and $46.4 million in the prior-year period. |
▪ | Non-cash working capital was $59.9 million, compared to $44.4 million at the end of fiscal 2012 and $70.9 million in the prior-year period. |
▪ | Capital expenditures year to date were $21.3 million, primarily for productivity and growth investments. This compares to $6.2 million in the prior year-to-date period. |
▪ | Depreciation and amortization year to date was $19.8 million. |
▪ | Architectural products and services companies design, engineer, fabricate, install 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 architectural glass for global markets; Harmon, Inc., one of the largest U.S. full-service building glass installation and renovation companies; Wausau Window and Wall Systems, a manufacturer of custom aluminum window systems and curtainwall; Tubelite, a fabricator of aluminum storefront, entrance and curtainwall products; and Linetec, a paint and anodizing finisher of window frames and PVC shutters. |
▪ | Large-scale optical segment consists of Tru Vue, a value-added glass and acrylic manufacturer for the custom picture framing market. |
Apogee Enterprises, Inc. & Subsidiaries | |||||||||||||||||||||
Consolidated Condensed Statement of Income | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Thirteen | Thirteen | Thirty-nine | Thirty-nine | ||||||||||||||||||
Weeks Ended | Weeks Ended | % | Weeks Ended | Weeks Ended | % | ||||||||||||||||
Dollar amounts in thousands, except for per share amounts | December 1, 2012 | November 26, 2011 | Change | December 1, 2012 | November 26, 2011 | Change | |||||||||||||||
Net sales | $ | 190,416 | $ | 174,853 | 9 | % | $ | 520,490 | $ | 493,748 | 5 | % | |||||||||
Cost of goods sold | 148,176 | 140,125 | 6 | % | 411,038 | 409,383 | — | % | |||||||||||||
Gross profit | 42,240 | 34,728 | 22 | % | 109,452 | 84,365 | 30 | % | |||||||||||||
Selling, general and administrative expenses | 30,829 | 27,572 | 12 | % | 88,170 | 83,314 | 6 | % | |||||||||||||
Operating income | 11,411 | 7,156 | 59 | % | 21,282 | 1,051 | N/M | ||||||||||||||
Interest income | 253 | 216 | 17 | % | 569 | 769 | (26 | )% | |||||||||||||
Interest expense | 330 | 434 | (24 | )% | 945 | 1,042 | (9 | )% | |||||||||||||
Other income (expense), net | 198 | (90 | ) | N/M | 370 | 4 | N/M | ||||||||||||||
Earnings from continuing operations before income taxes | 11,532 | 6,848 | 68 | % | 21,276 | 782 | N/M | ||||||||||||||
Income tax expense (benefit) | 3,480 | 1,312 | 165 | % | 6,800 | (900 | ) | N/M | |||||||||||||
Earnings from continuing operations | 8,052 | 5,536 | 45 | % | 14,476 | 1,682 | N/M | ||||||||||||||
Earnings from discontinued operations | — | — | - | 239 | — | N/M | |||||||||||||||
Net earnings | $ | 8,052 | $ | 5,536 | 45 | % | $ | 14,715 | $ | 1,682 | N/M | ||||||||||
Earnings per share - basic: | |||||||||||||||||||||
Earnings from continuing operations | $ | 0.29 | $ | 0.20 | 45 | % | $ | 0.52 | $ | 0.06 | N/M | ||||||||||
Earnings from discontinued operations | $ | — | — | - | $ | 0.01 | — | N/M | |||||||||||||
Net earnings | $ | 0.29 | $ | 0.20 | 45 | % | $ | 0.53 | $ | 0.06 | N/M | ||||||||||
Average common shares outstanding | 28,028,700 | 27,662,909 | 1 | % | 27,912,842 | 27,773,471 | 1 | % | |||||||||||||
Earnings per share - diluted: | |||||||||||||||||||||
Earnings from continuing operations | $ | 0.28 | $ | 0.20 | 40 | % | $ | 0.51 | $ | 0.06 | N/M | ||||||||||
Earnings from discontinued operations | $ | — | — | - | $ | 0.01 | — | N/M | |||||||||||||
Net earnings | $ | 0.28 | $ | 0.20 | 40 | % | $ | 0.52 | $ | 0.06 | N/M | ||||||||||
Average common and common | |||||||||||||||||||||
equivalent shares outstanding | 28,832,096 | 27,823,745 | 4 | % | 28,497,209 | 27,943,252 | 2 | % | |||||||||||||
Cash dividends per common share | $ | 0.0900 | $ | 0.0815 | 10 | % | $ | 0.2700 | $ | 0.2445 | 10 | % | |||||||||
Business Segments Information | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Thirteen | Thirteen | Thirty-nine | Thirty-nine | ||||||||||||||||||
Weeks Ended | Weeks Ended | % | Weeks Ended | Weeks Ended | % | ||||||||||||||||
December 1, 2012 | November 26, 2011 | Change | December 1, 2012 | November 26, 2011 | Change | ||||||||||||||||
Sales | |||||||||||||||||||||
Architectural | $ | 168,770 | $ | 152,087 | 11 | % | $ | 460,015 | $ | 436,516 | 5 | % | |||||||||
Large-Scale Optical | 21,648 | 22,769 | (5 | )% | 60,477 | 57,235 | 6 | % | |||||||||||||
Eliminations | (2 | ) | (3 | ) | 33 | % | (2 | ) | (3 | ) | 33 | % | |||||||||
Total | $ | 190,416 | $ | 174,853 | 9 | % | $ | 520,490 | $ | 493,748 | 5 | % | |||||||||
Operating income (loss) | |||||||||||||||||||||
Architectural | $ | 5,837 | $ | 580 | N/M | $ | 6,978 | $ | (11,597 | ) | N/M | ||||||||||
Large-Scale Optical | 6,557 | 7,411 | (12 | )% | 17,021 | 15,559 | 9 | % | |||||||||||||
Corporate and other | (983 | ) | (835 | ) | (18 | )% | (2,717 | ) | (2,911 | ) | 7 | % | |||||||||
Total | $ | 11,411 | $ | 7,156 | 59 | % | $ | 21,282 | $ | 1,051 | N/M | ||||||||||
Consolidated Condensed Balance Sheets | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
December 1, 2012 | March 3, 2012 | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Current assets | $ | 253,231 | $ | 229,439 | |||||||||||||||||
Net property, plant and equipment | 162,358 | 159,547 | |||||||||||||||||||
Other assets | 108,092 | 104,118 | |||||||||||||||||||
Total assets | $ | 523,681 | $ | 493,104 | |||||||||||||||||
Liabilities and shareholders' equity | |||||||||||||||||||||
Current liabilities | $ | 118,394 | $ | 105,771 | |||||||||||||||||
Long-term debt | 30,775 | 20,916 | |||||||||||||||||||
Other liabilities | 44,370 | 45,219 | |||||||||||||||||||
Shareholders' equity | 330,142 | 321,198 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 523,681 | $ | 493,104 | |||||||||||||||||
N/M = Not meaningful |
Apogee Enterprises, Inc. & Subsidiaries | |||||||||
Consolidated Condensed Statement of Cash Flows | |||||||||
(Unaudited) | |||||||||
Thirty-nine | Thirty-nine | ||||||||
Weeks Ended | Weeks Ended | ||||||||
Dollar amounts in thousands | December 1, 2012 | November 26, 2011 | |||||||
Net earnings | $ | 14,715 | $ | 1,682 | |||||
Net earnings from discontinued operations | (239 | ) | — | ||||||
Depreciation and amortization | 19,817 | 20,615 | |||||||
Stock-based compensation | 3,514 | 3,343 | |||||||
Other, net | (167 | ) | 1,180 | ||||||
Changes in operating assets and liabilities | (14,596 | ) | (31,540 | ) | |||||
Net cash provided by (used in) continuing operating activities | 23,044 | (4,720 | ) | ||||||
Capital expenditures | (21,265 | ) | (6,206 | ) | |||||
Proceeds on sale of property | 48 | 10,314 | |||||||
Acquisition of intangibles | (15 | ) | (68 | ) | |||||
Net (purchases) sales of restricted investments | (4,752 | ) | 12,665 | ||||||
Net (purchases) sales of marketable securities | (13,915 | ) | 5,807 | ||||||
Investments in life insurance | (1,451 | ) | (1,435 | ) | |||||
Net cash (used in) provided by investing activities | (41,350 | ) | 21,077 | ||||||
Proceeds from issuance of debt | 10,000 | 121 | |||||||
Payments on debt | (125 | ) | (1,287 | ) | |||||
Shares withheld for taxes, net of stock issued to employees | (261 | ) | (743 | ) | |||||
Repurchase and retirement of common stock | — | (2,392 | ) | ||||||
Dividends paid | (7,751 | ) | (6,865 | ) | |||||
Other, net | (194 | ) | (121 | ) | |||||
Net cash provided by (used in) financing activities | 1,669 | (11,287 | ) | ||||||
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 |
Contact: | Mary Ann Jackson |
Investor Relations | |
952-487-7538 | |
mjackson@apog.com |
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