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 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
x | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | o | Smaller reporting company | ||||||||||||||||||
Emerging growth company | ||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Page | ||||||||
PART I | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
(In thousands, except stock data) | August 26, 2023 | February 25, 2023 | ||||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash | ||||||||||||||
Receivables, net | ||||||||||||||
Inventories | ||||||||||||||
Contract assets | ||||||||||||||
Other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Property, plant and equipment, net of accumulated depreciation of $ | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Goodwill | ||||||||||||||
Intangible assets, net | ||||||||||||||
Other non-current assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Accrued compensation and benefits | ||||||||||||||
Contract liabilities | ||||||||||||||
Operating lease liabilities | ||||||||||||||
Other current liabilities | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt | ||||||||||||||
Non-current operating lease liabilities | ||||||||||||||
Non-current self-insurance reserves | ||||||||||||||
Other non-current liabilities | ||||||||||||||
Commitments and contingent liabilities (Note 7) | ||||||||||||||
Shareholders’ equity | ||||||||||||||
Common stock of $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Total shareholders’ equity | ||||||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(In thousands, except per share data) | August 26, 2023 | August 27, 2022 | August 26, 2023 | August 27, 2022 | ||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||
Gross profit | ||||||||||||||||||||||||||
Selling, general and administrative expenses | ||||||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||
Interest expense, net | ||||||||||||||||||||||||||
Other (income) expense, net | ( | ( | ||||||||||||||||||||||||
Earnings before income taxes | ||||||||||||||||||||||||||
Income tax expense (benefit) | ( | |||||||||||||||||||||||||
Net earnings | $ | $ | $ | $ | ||||||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted average basic shares outstanding | ||||||||||||||||||||||||||
Weighted average diluted shares outstanding |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(In thousands) | August 26, 2023 | August 27, 2022 | August 26, 2023 | August 27, 2022 | ||||||||||||||||||||||
Net earnings | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive earnings (loss): | ||||||||||||||||||||||||||
Unrealized (loss) gain on marketable securities, net of $( | ( | ( | ( | |||||||||||||||||||||||
Unrealized gain (loss) on derivative instruments, net of $ | ( | ( | ( | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ||||||||||||||||||||||||
Other comprehensive earnings (loss) | ( | ( | ||||||||||||||||||||||||
Total comprehensive earnings | $ | $ | $ | $ |
Six Months Ended | ||||||||||||||
(In thousands) | August 26, 2023 | August 27, 2022 | ||||||||||||
Operating Activities | ||||||||||||||
Net earnings | $ | $ | ||||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Share-based compensation | ||||||||||||||
Deferred income taxes | ( | |||||||||||||
Gain on disposal of assets | ( | ( | ||||||||||||
Proceeds from New Markets Tax Credit transaction, net of deferred costs | ||||||||||||||
Settlement of New Markets Tax Credit transaction | ( | ( | ||||||||||||
Noncash lease expense | ||||||||||||||
Other, net | ( | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Receivables | ( | ( | ||||||||||||
Inventories | ( | |||||||||||||
Contract assets | ||||||||||||||
Accounts payable and accrued expenses | ( | ( | ||||||||||||
Contract liabilities | ||||||||||||||
Refundable and accrued income taxes | ( | |||||||||||||
Operating lease liability | ( | ( | ||||||||||||
Prepaid expenses and other current assets | ( | ( | ||||||||||||
Net cash provided (used) by operating activities | ( | |||||||||||||
Investing Activities | ||||||||||||||
Capital expenditures | ( | ( | ||||||||||||
Proceeds from sales of property, plant and equipment | ||||||||||||||
Purchases of marketable securities | ( | |||||||||||||
Sales/maturities of marketable securities | ||||||||||||||
Net cash used by investing activities | ( | ( | ||||||||||||
Financing Activities | ||||||||||||||
Borrowings on line of credit | ||||||||||||||
Repayment on debt | ( | |||||||||||||
Payments on line of credit | ( | ( | ||||||||||||
Payments on debt issue costs | ( | |||||||||||||
Repurchase and retirement of common stock | ( | ( | ||||||||||||
Dividends paid | ( | ( | ||||||||||||
Other, net | ( | ( | ||||||||||||
Net cash (used) provided by financing activities | ( | |||||||||||||
Decrease in cash, cash equivalents and restricted cash | ( | ( | ||||||||||||
Effect of exchange rates on cash | ( | |||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | ||||||||||||||
Cash and cash equivalents at end of period | $ | $ | ||||||||||||
Noncash Activity | ||||||||||||||
Capital expenditures in accounts payable | $ | $ |
(In thousands) | Common Shares Outstanding | Common Stock at Par Value | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||
Balance at February 25, 2023 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | ||||||||||||||||||||||||||||||||||
Issuance of stock, net of cancellations | ( | — | ||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Share repurchases | ( | ( | ( | ( | — | ( | ||||||||||||||||||||||||||||||||
Other share retirements | ( | ( | ( | ( | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Balance at May 27, 2023 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Net earnings | — | — | $ | — | $ | — | $ | |||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | ||||||||||||||||||||||||||||||||||
Issuance of stock, net of cancellations | ( | ( | ( | — | ( | |||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Exercise of stock options | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Share repurchases | ( | ( | ( | ( | — | ( | ||||||||||||||||||||||||||||||||
Other share retirements | ( | ( | ( | ( | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Balance at August 26, 2023 | $ | $ | $ | $ | ( | $ |
(In thousands) | Common Shares Outstanding | Common Stock at Par Value | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||
Balance at February 26, 2022 | ( | |||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Issuance of stock, net of cancellations | — | — | ||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Share repurchases | ( | ( | ( | ( | — | ( | ||||||||||||||||||||||||||||||||
Other share retirements | ( | ( | ( | ( | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Balance at May 28, 2022 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Issuance of stock, net of cancellations | ( | ( | — | — | ||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Exercise of stock options | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Other share retirements | ( | ( | ( | ( | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Balance at August 27, 2022 | $ | $ | $ | $ | ( | $ |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(In thousands) | August 26, 2023 | August 27, 2022 | August 26, 2023 | August 27, 2022 | ||||||||||||||||||||||
Recognized at shipment | $ | $ | $ | $ | ||||||||||||||||||||||
Recognized over time | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
(In thousands) | August 26, 2023 | February 25, 2023 | ||||||||||||
Trade accounts | $ | $ | ||||||||||||
Construction contracts | ||||||||||||||
Total receivables | ||||||||||||||
Less: allowance for credit losses | ||||||||||||||
Receivables, net | $ | $ |
(In thousands) | August 26, 2023 | |||||||
Beginning balance | $ | |||||||
Additions charged to costs and expenses | ||||||||
Deductions from allowance, net of recoveries | ( | |||||||
Foreign currency effects | ||||||||
Ending balance | $ |
Other contract-related disclosures | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
(In thousands) | August 26, 2023 | August 27, 2022 | August 26, 2023 | August 27, 2022 | ||||||||||||||||||||||
Revenue recognized related to contract liabilities from prior year-end | $ | $ | $ | $ | ||||||||||||||||||||||
Revenue recognized related to prior satisfaction of performance obligations |
(In thousands) | August 26, 2023 | |||||||
Within | $ | |||||||
Within | ||||||||
Beyond | ||||||||
Total | $ |
(In thousands) | August 26, 2023 | February 25, 2023 | ||||||||||||
Raw materials | $ | $ | ||||||||||||
Work-in-process | ||||||||||||||
Finished goods | ||||||||||||||
Total inventories | $ | $ |
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||
August 26, 2023 | $ | $ | $ | $ | ||||||||||||||||||||||
February 25, 2023 |
(In thousands) | Amortized Cost | Estimated Fair Value | ||||||||||||
Due within one year | $ | $ | ||||||||||||
Due after one year through five years | ||||||||||||||
Total | $ | $ |
(In thousands) | Quoted Prices in Active Markets (Level 1) | Other Observable Inputs (Level 2) | Total Fair Value | |||||||||||||||||
August 26, 2023 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Money market funds | $ | $ | — | $ | ||||||||||||||||
Municipal and corporate bonds | — | |||||||||||||||||||
Foreign currency option contract | — | |||||||||||||||||||
Interest rate swap contract | — | |||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Aluminum hedging contract | — | |||||||||||||||||||
February 25, 2023 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Money market funds | $ | $ | — | $ | ||||||||||||||||
Municipal and corporate bonds | — | |||||||||||||||||||
Interest rate swap contract | — | |||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Foreign currency forward/option contract | — | |||||||||||||||||||
Aluminum hedging contract | — | |||||||||||||||||||
(In thousands) | Architectural Framing Systems | Architectural Glass | Architectural Services | Large-Scale Optical | Total | |||||||||||||||||||||||||||
Balance at February 26, 2022 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Reallocation among reporting units (1) | ( | |||||||||||||||||||||||||||||||
Foreign currency translation | ( | ( | ( | |||||||||||||||||||||||||||||
Balance at February 25, 2023 | ||||||||||||||||||||||||||||||||
Foreign currency translation | ||||||||||||||||||||||||||||||||
Balance at August 26, 2023 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
(1) Represents the reallocation of goodwill as a result of transitioning Sotawall from the Architectural Framing Systems segment to the Architectural Services segment as of the start of the first quarter of fiscal 2023. |
(In thousands) | Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation | Net | ||||||||||||||||||||||
August 26, 2023 | ||||||||||||||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | $ | |||||||||||||||||||||
Other intangibles | ( | |||||||||||||||||||||||||
Total | ( | |||||||||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||||
Trademarks | — | |||||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | $ | |||||||||||||||||||||
February 25, 2023 | ||||||||||||||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||
Other intangibles | ( | ( | ||||||||||||||||||||||||
Total | ( | ( | ||||||||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||||
Trademarks | — | ( | ||||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | ( | $ |
(In thousands) | Remainder of 2024 | 2025 | 2026 | 2027 | 2028 | |||||||||||||||||||||||||||
Estimated amortization expense | $ | $ | $ | $ | $ |
Six Months Ended | ||||||||||||||
(In thousands) | August 26, 2023 | August 27, 2022 | ||||||||||||
Balance at beginning of period | $ | $ | ||||||||||||
Additional accruals | ||||||||||||||
Claims paid | ( | ( | ||||||||||||
Balance at end of period | $ | $ |
Inception date | Termination date | Deferred Benefit | Deferred costs | Net benefit | ||||||||||||||||||||||
May 2022(1) | August 2025 | $ | $ | $ | ||||||||||||||||||||||
September 2018 | September 2025 | $ | $ | $ | ||||||||||||||||||||||
Total | $ | $ | $ |
Awards | Number of Awards | Weighted Average Exercise Price | ||||||||||||
Restricted stock awards and restricted stock units(1) | $ | |||||||||||||
Performance share units ("PSUs")(2) | $ | |||||||||||||
(1) Represent service condition awards which generally vest over a two- or three-year period. | ||||||||||||||
(2) Represent performance condition awards with the grant equal to the target number of performance shares based on the share price at grant date. These grants allow for the right to receive a variable number of shares, between 0% and 200% of target, dependent on achieving a defined performance goal of return on invested capital and being employed at the end of the performance period. |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(In thousands) | August 26, 2023 | August 27, 2022 | August 26, 2023 | August 27, 2022 | ||||||||||||||||||||||
Basic earnings per share – weighted average common shares outstanding | ||||||||||||||||||||||||||
Weighted average effect of nonvested share grants and assumed exercise of stock options | ||||||||||||||||||||||||||
Diluted earnings per share – weighted average common shares and potential common shares outstanding | ||||||||||||||||||||||||||
Stock awards excluded from the calculation of earnings per share because the effect was anti-dilutive (award price greater than average market price of the shares) |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(In thousands) | August 26, 2023 | August 27, 2022 | August 26, 2023 | August 27, 2022 | ||||||||||||||||||||||
Segment net sales | ||||||||||||||||||||||||||
Architectural Framing Systems | $ | $ | $ | $ | ||||||||||||||||||||||
Architectural Glass | ||||||||||||||||||||||||||
Architectural Services | ||||||||||||||||||||||||||
Large-Scale Optical | ||||||||||||||||||||||||||
Intersegment eliminations | ( | ( | ( | ( | ||||||||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||||||||||||
Segment operating income (loss) | ||||||||||||||||||||||||||
Architectural Framing Systems | $ | $ | $ | $ | ||||||||||||||||||||||
Architectural Glass | ||||||||||||||||||||||||||
Architectural Services | ||||||||||||||||||||||||||
Large-Scale Optical | ||||||||||||||||||||||||||
Corporate and other* | ( | ( | ( | ( | ||||||||||||||||||||||
Operating income | $ | $ | $ | $ | ||||||||||||||||||||||
Three Months Ended | % of Net Sales | |||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | August 26, 2023 | August 27, 2022 | $ Change | % Change | August 26, 2023 | August 27, 2022 | ||||||||||||||||||||||||||||||||
Net sales | $ | 353,675 | $ | 372,109 | $ | (18,434) | (5.0) | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||
Cost of sales | 258,304 | 287,173 | (28,869) | (10.1) | 73.0 | 77.2 | ||||||||||||||||||||||||||||||||
Gross profit | 95,371 | 84,936 | 10,435 | 12.3 | 27.0 | 22.8 | ||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 54,818 | 52,864 | 1,954 | 3.7 | 15.5 | 14.2 | ||||||||||||||||||||||||||||||||
Operating income | 40,553 | 32,072 | 8,481 | 26.4 | 11.5 | 8.6 | ||||||||||||||||||||||||||||||||
Interest expense, net | 2,230 | 1,698 | 532 | 31.3 | 0.6 | 0.5 | ||||||||||||||||||||||||||||||||
Other (income) expense, net | (4,900) | 173 | (5,073) | N/M | (1.4) | — | ||||||||||||||||||||||||||||||||
Earnings before income taxes | 43,223 | 30,201 | 13,022 | 43.1 | 12.2 | 8.1 | ||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 9,896 | (7,188) | 17,084 | N/M | 2.8 | (1.9) | ||||||||||||||||||||||||||||||||
Net earnings | $ | 33,327 | $ | 37,389 | $ | (4,062) | (10.9) | % | 9.4 | % | 10.0 | % | ||||||||||||||||||||||||||
Effective tax rate | 22.9 | % | (23.8) | % |
Six Months Ended | % of Net Sales | |||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | August 26, 2023 | August 27, 2022 | $ Change | % Change | August 26, 2023 | August 27, 2022 | ||||||||||||||||||||||||||||||||
Net sales | $ | 715,388 | $ | 728,744 | $ | (13,356) | (1.8) | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||
Cost of sales | 527,031 | 558,191 | (31,160) | (5.6) | 73.7 | 76.6 | ||||||||||||||||||||||||||||||||
Gross profit | 188,357 | 170,553 | 17,804 | 10.4 | 26.3 | 23.4 | ||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 114,037 | 105,265 | 8,772 | 8.3 | 15.9 | 14.4 | ||||||||||||||||||||||||||||||||
Operating income | 74,320 | 65,288 | 9,032 | 13.8 | 10.4 | 9.0 | ||||||||||||||||||||||||||||||||
Interest expense, net | 4,266 | 2,904 | 1,362 | 46.9 | 0.6 | 0.4 | ||||||||||||||||||||||||||||||||
Other (income) expense, net | (4,612) | 1,483 | (6,095) | N/M | (0.6) | 0.2 | ||||||||||||||||||||||||||||||||
Earnings before income taxes | 74,666 | 60,901 | 13,765 | 22.6 | 10.4 | 8.4 | ||||||||||||||||||||||||||||||||
Income tax expense | 17,763 | 781 | 16,982 | 2,174.4 | 2.5 | 0.1 | ||||||||||||||||||||||||||||||||
Net earnings | $ | 56,903 | $ | 60,120 | $ | (3,217) | (5.4) | % | 8.0 | % | 8.2 | % | ||||||||||||||||||||||||||
Effective tax rate | 23.8 | % | 1.3 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | August 26, 2023 | August 27, 2022 | % Change | August 26, 2023 | August 27, 2022 | % Change | ||||||||||||||||||||||||||||||||
Segment net sales | ||||||||||||||||||||||||||||||||||||||
Architectural Framing Systems | $ | 158,801 | $ | 172,867 | (8.1) | % | $ | 322,963 | $ | 336,159 | (3.9) | % | ||||||||||||||||||||||||||
Architectural Glass | 94,096 | 77,352 | 21.6 | 191,298 | 153,617 | 24.5 | ||||||||||||||||||||||||||||||||
Architectural Services | 88,064 | 106,732 | (17.5) | 177,482 | 210,120 | (15.5) | ||||||||||||||||||||||||||||||||
Large-Scale Optical | 23,645 | 25,166 | (6.0) | 46,101 | 50,328 | (8.4) | ||||||||||||||||||||||||||||||||
Intersegment eliminations | (10,931) | (10,008) | 9.2 | (22,456) | (21,480) | 4.5 | ||||||||||||||||||||||||||||||||
Net sales | $ | 353,675 | $ | 372,109 | (5.0) | % | $ | 715,388 | $ | 728,744 | (1.8) | % | ||||||||||||||||||||||||||
Segment operating income (loss) | ||||||||||||||||||||||||||||||||||||||
Architectural Framing Systems | $ | 21,060 | $ | 20,512 | 2.7 | % | $ | 41,005 | $ | 44,177 | (7.2) | % | ||||||||||||||||||||||||||
Architectural Glass | 17,434 | 6,457 | 170.0 | 33,955 | 11,626 | 192.1 | ||||||||||||||||||||||||||||||||
Architectural Services | 3,519 | 5,490 | (35.9) | 2,923 | 8,417 | (65.3) | ||||||||||||||||||||||||||||||||
Large-Scale Optical | 4,663 | 5,991 | (22.2) | 10,188 | 12,489 | (18.4) | ||||||||||||||||||||||||||||||||
Corporate and other* | (6,123) | (6,378) | (4.0) | (13,751) | (11,421) | 20.4 | ||||||||||||||||||||||||||||||||
Operating income | $ | 40,553 | $ | 32,072 | 26.4 | % | $ | 74,320 | $ | 65,288 | 13.8 | % | ||||||||||||||||||||||||||
Segment operating margin | ||||||||||||||||||||||||||||||||||||||
Architectural Framing Systems | 13.3 | % | 11.9 | % | 12.7 | % | 13.1 | % | ||||||||||||||||||||||||||||||
Architectural Glass | 18.5 | 8.3 | 17.7 | 7.6 | ||||||||||||||||||||||||||||||||||
Architectural Services | 4.0 | 5.1 | 1.6 | 4.0 | ||||||||||||||||||||||||||||||||||
Large-Scale Optical | 19.7 | 23.8 | 22.1 | 24.8 | ||||||||||||||||||||||||||||||||||
Corporate and other | N/M | N/M | N/M | N/M | ||||||||||||||||||||||||||||||||||
Operating income | 8.6 | % | 10.4 | % | 9.0 | % | ||||||||||||||||||||||||||||||||
N/M Indicates calculation not meaningful. | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
(In thousands) | August 26, 2023 | August 27, 2022 | % change | August 26, 2023 | August 27, 2022 | % change | ||||||||||||||||||||||||||||||||
Net earnings | $ | 33,327 | $ | 37,389 | (10.9) | % | $ | 56,903 | $ | 60,120 | (5.4) | % | ||||||||||||||||||||||||||
NMTC settlement gain(1) | (4,687) | — | (4,687) | — | ||||||||||||||||||||||||||||||||||
Worthless stock deduction and related discrete tax benefits(2) | — | (13,702) | — | (13,702) | ||||||||||||||||||||||||||||||||||
Income tax impact on above adjustments | 1,148 | — | 1,148 | — | ||||||||||||||||||||||||||||||||||
Adjusted net earnings | $ | 29,788 | $ | 23,687 | 25.8 | % | $ | 53,364 | $ | 46,418 | 15.0 | % | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
August 26, 2023 | August 27, 2022 | % change | August 26, 2023 | August 27, 2022 | % change | |||||||||||||||||||||||||||||||||
Diluted EPS | $ | 1.52 | $ | 1.68 | (9.5) | % | $ | 2.57 | $ | 2.66 | (3.4) | % | ||||||||||||||||||||||||||
NMTC settlement gain(1) | (0.21) | (0.21) | — | |||||||||||||||||||||||||||||||||||
Worthless stock deduction and related discrete tax benefits(2) | — | (0.62) | — | (0.61) | ||||||||||||||||||||||||||||||||||
Income tax impact on above adjustments | 0.05 | — | 0.05 | — | ||||||||||||||||||||||||||||||||||
Adjusted diluted EPS | $ | 1.36 | $ | 1.06 | 28.3 | % | $ | 2.41 | $ | 2.06 | 17.0 | % | ||||||||||||||||||||||||||
Weighted average diluted shares outstanding | 21,962 | 22,245 | 22,105 | 22,563 |
(1) | Realization of a New Market Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other (income) expense, net. | |||||||||||||
(2) | Worthless stock deduction and related discrete income tax benefits from the impairment of the Sotawall business in fiscal 2023, which were recorded in income tax expense (benefit). |
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 (b) | ||||||||||||||||||||||
May 27, 2023 to June 24, 2023 | 146,417 | $ | 41.28 | 144,945 | 988,538 | |||||||||||||||||||||
June 25, 2023 to July 22, 2023 | 27,844 | 44.70 | 15,055 | 973,483 | ||||||||||||||||||||||
July 23, 2023 to August 26, 2023 | — | — | — | 973,483 | ||||||||||||||||||||||
Total | 174,261 | $ | 42.37 | 160,000 | 973,483 |
101# | The following materials from Apogee Enterprises, Inc.’s Quarterly Report on Form 10-Q for the quarter ended August 26, 2023, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) the Consolidated Balance Sheets as of August 26, 2023 and February 25, 2023, (ii) the Consolidated Results of Operations for the three- and six-months ended August 26, 2023 and August 27, 2022, (iii) the Consolidated Statements of Comprehensive Earnings for the three- and six-months ended August 26, 2023 and August 27, 2022, (iv) the Consolidated Statements of Cash Flows for the six-months ended August 26, 2023 and August 27, 2022, (v) the Consolidated Statements of Shareholders' Equity for the three- and six-months ended August 26, 2023 and August 27, 2022, and (vi) Notes to Consolidated Financial Statements. | ||||
104# | Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101) | ||||
Exhibits marked with a (#) sign are filed herewith. |
APOGEE ENTERPRISES, INC. | |||||||||||
Date: October 4, 2023 | By: /s/ Ty R. Silberhorn | ||||||||||
Ty R. Silberhorn President and Chief Executive Officer (Principal Executive Officer) |
Date: October 4, 2023 | By: /s/ Matthew J. Osberg | ||||||||||
Matthew J. Osberg Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
/s/ Ty R. Silberhorn | |||||
Ty R. Silberhorn President and Chief Executive Officer |
/s/ Matthew J. Osberg | |||||
Matthew J. Osberg Executive Vice President and Chief Financial Officer |
/s/ Ty R. Silberhorn | |||||
Ty R. Silberhorn President and Chief Executive Officer | |||||
October 4, 2023 |
/s/ Matthew J. Osberg | |||||
Matthew J. Osberg Executive Vice President and Chief Financial Officer | |||||
October 4, 2023 |
Consolidated Results of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Aug. 26, 2023 |
Aug. 27, 2022 |
Aug. 26, 2023 |
Aug. 27, 2022 |
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Income Statement [Abstract] | ||||
Net sales | $ 353,675 | $ 372,109 | $ 715,388 | $ 728,744 |
Cost of sales | 258,304 | 287,173 | 527,031 | 558,191 |
Gross profit | 95,371 | 84,936 | 188,357 | 170,553 |
Selling, general and administrative expenses | 54,818 | 52,864 | 114,037 | 105,265 |
Operating income | 40,553 | 32,072 | 74,320 | 65,288 |
Interest expense, net | 2,230 | 1,698 | 4,266 | 2,904 |
Other (income) expense, net | (4,900) | 173 | (4,612) | 1,483 |
Earnings before income taxes | 43,223 | 30,201 | 74,666 | 60,901 |
Income tax expense (benefit) | 9,896 | (7,188) | 17,763 | 781 |
Net earnings | $ 33,327 | $ 37,389 | $ 56,903 | $ 60,120 |
Earnings per share - basic | ||||
Basic earnings per share | $ 1.54 | $ 1.71 | $ 2.61 | $ 2.72 |
Earnings per share - diluted | ||||
Diluted earnings per share | $ 1.52 | $ 1.68 | $ 2.57 | $ 2.66 |
Weighted average basic shares outstanding | 21,708 | 21,860 | 21,813 | 22,129 |
Weighted average diluted shares outstanding | 21,962 | 22,245 | 22,105 | 22,563 |
Consolidated Statements of Comprehensive Earnings (unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Aug. 26, 2023 |
Aug. 27, 2022 |
Aug. 26, 2023 |
Aug. 27, 2022 |
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Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 33,327 | $ 37,389 | $ 56,903 | $ 60,120 |
Other comprehensive earnings (loss): | ||||
Unrealized (loss) gain on marketable securities, net of $(8), $(28), $25 and $(102) of tax (benefit) expense, respectively | (28) | (106) | 93 | (382) |
Unrealized gain (loss) on derivative instruments, net of $66, $(152), $(55) and $(1,469) of tax expense (benefit), respectively | 217 | (500) | (180) | (4,816) |
Foreign currency translation adjustments | 508 | (2,777) | 943 | (1,045) |
Other comprehensive earnings (loss) | 697 | (3,383) | 856 | (6,243) |
Total comprehensive earnings | 34,024 | 34,006 | 57,759 | 53,877 |
Supplemental Income Statement Elements [Abstract] | ||||
Tax expense (benefit) on marketable securities | (8) | (28) | 25 | (102) |
Tax expense (benefit) on derivatives | $ 66 | $ (152) | $ (55) | $ (1,469) |
Income Taxes |
6 Months Ended |
---|---|
Aug. 26, 2023 | |
Statement of Financial Position [Abstract] | |
Income Taxes | Income TaxesWe file income tax returns in the U.S. federal jurisdiction, various U.S. state and local jurisdictions, Canada, Brazil and other international jurisdictions. We are no longer subject to U.S. federal tax examinations for years prior to fiscal 2020, or state and local income tax examinations for years prior to fiscal 2015. We are not currently under U.S. federal examination for years subsequent to fiscal year 2019, and there is very limited audit activity of our income tax returns in U.S. state jurisdictions or international jurisdictions.The total liability for unrecognized tax benefits was $5.3 million at August 26, 2023 and at February 25, 2023, respectively. Penalties and interest related to unrecognized tax benefits are recorded in income tax expense. |
Income Taxes (Textual) - USD ($) $ in Thousands |
Aug. 26, 2023 |
Feb. 25, 2023 |
---|---|---|
Income Tax Uncertainties [Abstract] | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 5,300 | $ 5,300 |
Summary of Significant Accounting Policies |
6 Months Ended |
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Aug. 26, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of presentation The consolidated financial statements of Apogee Enterprises, Inc. (we, us, our or the Company) have been prepared in accordance with accounting principles generally accepted in the United States. The information included in this Form 10-Q should be read in conjunction with the Company’s Form 10-K for the year ended February 25, 2023. We use the same accounting policies in preparing quarterly and annual financial statements. All adjustments necessary for a fair presentation of quarterly and year to date operating results are reflected herein and are of a normal, recurring nature. The results of operations for the three- and six-month periods ended August 26, 2023 are not necessarily indicative of the results to be expected for the full year. Reclassifications Certain reclassifications of amounts previously reported have been made to the accompanying consolidated balance sheets, consolidated statements of cash flows and notes to consolidated financial statements to conform to current year presentation of contract assets and liabilities. These reclassifications had no impact on reported cash flows or total assets and liabilities. Adoption of new accounting standards In the first quarter, we adopted the guidance in ASU 2022-04, Liabilities – Supplier Finance Programs, Disclosure of Supplier Finance Program Obligations. The guidance requires that entities that use supplier finance programs disclose information about the nature and potential magnitude of the programs, activity during the period, and changes from period to period. Beginning in the first quarter, we implemented a supplier financing arrangement with U.S. Bank that enables our suppliers, at their sole discretion, to sell their Apogee receivables (i.e., our payment obligations to the suppliers) to U.S. Bank on a non-recourse basis in order to be paid earlier than our payment terms provide. Our suppliers’ voluntary inclusion of invoices in the supplier financing arrangement has no bearing on our payment terms, the amounts we pay, or our liquidity. We have no economic interest in a supplier’s decision to participate in the supplier financing program, and we do not provide any guarantees in connection with it. As of August 26, 2023, $4.9 million of obligations remained outstanding that we have confirmed as valid to the administrators of our program with U.S. Bank. These balances are reflected in accounts payable in the consolidated balance sheets and are reflected in net cash provided (used by) operating activities in our consolidated statements of cash flows when settled.
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Revenue, Receivables and Contract Assets and Liabilities |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Receivables and Contract Assets and Liabilities | Revenue, Receivables and Contract Assets and Liabilities Revenue The following table disaggregates total revenue by timing of recognition (see Note 11 for disclosure of revenue by segment):
Receivables Receivables reflected in the financial statements represent the net amount expected to be collected. An allowance for credit losses is established based on expected losses. Expected losses are estimated by reviewing individual accounts, considering aging, financial condition of the debtor, recent payment history, current and forecast economic conditions and other relevant factors. Upon billing, aging of receivables is monitored until collection. An account is considered current when it is within agreed upon payment terms. An account is written off when it is determined that the asset is no longer collectible.
The following table summarizes the activity in the allowance for credit losses for the six-month period ended:
Contract assets and liabilities Contract assets consist of retainage, costs and earnings in excess of billings and other unbilled amounts typically generated when revenue recognized exceeds the amount billed to the customer. Retainage on construction contracts represents amounts withheld by our customers on long-term projects until the project reaches a level of completion where amounts are released to us from the customer. Contract liabilities consist of billings in excess of costs and earnings and other deferred revenue on contracts. The time period between when performance obligations are complete and payment is due is not significant. In certain parts of our business that recognize revenue over time, progress billings follow an agreed-upon schedule of values. The changes in contract assets and contract liabilities were mainly due to timing of project activity within our businesses that operate under long-term contracts.
Some of our contracts have an expected duration of longer than a year, with performance obligations extending over that time frame. Generally, these contracts are found in our businesses that typically operate with long-term contracts, which recognize revenue over time. The transaction prices associated with unsatisfied performance obligations at August 26, 2023 are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods:
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Supplemental Balance Sheet Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 26, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information | Inventories
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Financial Instruments |
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Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | Financial Instruments Marketable securities Through our wholly-owned insurance subsidiary, Prism Assurance, Ltd. (Prism), we hold the following available-for-sale marketable securities, made up of fixed-maturity investments:
Prism insures a portion of our general liability, workers’ compensation and automobile liability risks using reinsurance agreements to meet statutory requirements. The reinsurance carrier requires Prism to maintain fixed-maturity investments for the purpose of providing collateral for Prism’s obligations under the reinsurance agreements. The amortized cost and estimated fair values of these investments at August 26, 2023, 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 penalty.
Derivative instruments We use interest rate swaps, foreign exchange contracts, commodity swaps and forward purchase contracts to manage risks generally associated with foreign exchange rate, interest rate and commodity price fluctuations. The information that follows explains the various types of derivatives and financial instruments we use, how such instruments are accounted for, and how such instruments impact our financial position and performance. In fiscal 2020, we entered into an interest rate swap to hedge exposure to variability in cash flows from interest payments on our floating-rate revolving credit facility. As of August 26, 2023, the interest rate swap contract had a notional value of $30.0 million and has a maturity date of February 5, 2026. We periodically enter into forward purchase contracts and/or fixed/floating swaps to manage the risk associated with fluctuations in aluminum prices and fluctuations in foreign exchange rates. These contracts generally have an original maturity date of less than one year. As of August 26, 2023, we held aluminum fixed/floating swaps and foreign exchange contracts with U.S. dollar notional values of $12.9 million and $1.6 million, respectively. These derivative instruments are recorded within our consolidated balance sheets within other current assets and liabilities. Gains or losses associated with these instruments are recorded as a component of accumulated other comprehensive income. Fair value measurements Financial assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement: Level 1 (unadjusted quoted prices in active markets for identical assets or liabilities); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). We do not have any Level 3 financial assets or liabilities.
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Goodwill and Other Identifiable Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill represents the excess of the cost over the value of net tangible and identified intangible assets of acquired businesses. We evaluate goodwill for impairment annually as of the first day of our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. At the beginning of the first quarter of fiscal 2023, we began management of the Sotawall and Harmon businesses under the Architectural Services segment in order to create a single, unified offering for larger custom curtainwall projects, which resulted in the combination of the Sotawall and Harmon reporting units into a single reporting unit. We evaluated goodwill on a qualitative basis prior to and subsequent to this change for these reporting units and concluded that no adjustment to the carrying value of goodwill was necessary. Concurrent with the move of Sotawall from the Architectural Framing Systems segment to the Architectural Services segment effective at the start of our first quarter of fiscal 2023, goodwill was reallocated to the affected reporting units within each segment, using a relative fair value approach as outlined in ASC 350, Intangibles - Goodwill and Other. During the second quarter of fiscal 2024, we did not identify any qualitative indicators of impairment at any of our reporting units, and therefore, no interim quantitative goodwill impairment evaluation was performed. The following table presents the carrying amount of goodwill attributable to each reporting segment including the amount of goodwill that was reallocated from the Architectural Framing Systems segment to the Architectural Services segment using the relative fair value approach during the first quarter of fiscal 2023:
Other intangible assets Indefinite-lived intangible assets We have intangible assets for certain acquired trade names and trademarks which are determined to have indefinite useful lives. We test indefinite-lived intangible assets for impairment annually at the same measurement date as goodwill, the first day of our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. During the second quarter of fiscal 2024, we did not identify any qualitative indicators of impairment at any of our reporting units, and therefore, no interim quantitative intangible impairment evaluation was performed. Finite-lived intangible assets Long-lived assets or asset groups, including intangible assets subject to amortization and property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. We use undiscounted cash flows to determine whether impairment exists and measure any impairment loss using discounted cash flows to determine the fair value of long-lived assets. The gross carrying amount of other intangible assets and related accumulated amortization was:
Amortization expense on definite-lived intangible assets was $2.0 million and $2.1 million for the six-month periods ended August 26, 2023 and August 27, 2022, respectively. Amortization expense of other identifiable intangible assets is included in selling, general and administrative expenses. At August 26, 2023, the estimated future amortization expense for definite-lived intangible assets was:
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Debt |
6 Months Ended |
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Aug. 26, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of August 26, 2023, we had a committed revolving credit facility with Wells Fargo Bank, N.A. as administrative agent, and other lenders (U.S. credit facility) with maximum borrowings of up to $385 million and a maturity date of August 5, 2027. Outstanding borrowings under the revolving credit facility were $130.0 million and $156.0 million as of August 26, 2023 and February 25, 2023, respectively. We also maintain two Canadian committed, revolving credit facilities with the Bank of Montreal totaling $25.0 million USD (Canadian facilities). The Canadian facilities expire annually in February, but can be renewed each year solely at our discretion until August 2027. Therefore, we have classified all outstanding amounts under these facilities as long-term debt within our consolidated balance sheets. At August 26, 2023 and February 25, 2023, outstanding borrowings under these Canadian facilities were $3.7 million and $1.8 million, respectively. Our revolving credit facilities contain two maintenance financial covenants that require us to stay below a maximum debt-to-EBITDA ratio of 3.25 and maintain a minimum ratio of EBITDA-to-interest expense of 3.00. Both ratios are computed quarterly, with EBITDA calculated on a rolling four-quarter basis. At August 26, 2023, we were in compliance with both financial covenants. The U.S. credit facility also contains an acquisition holiday. In the event we make an acquisition for which the purchase price is greater than $75 million, we can elect to increase the maximum debt-to-EBITDA ratio to 3.75 for a period of four consecutive fiscal quarters, commencing with the fiscal quarter in which a qualifying acquisition occurs. No more than two acquisition "holidays" can occur during the term of the facility, and at least two fiscal quarters must separate qualifying acquisitions. Borrowings under the credit facilities bear floating interest at either the Base Rate or Term SOFR, plus a margin based on the Leverage Ratio (as defined in the Credit Agreement). For Base Rate borrowings, the margin ranges from 0.125% to 0.75%. For Term SOFR borrowings, the margin ranges from 1.135% to 1.85%. The U.S. credit facility also contains an "accordion" provision. Under this provision, we can request that the facility be increased by as much $200.0 million. Any Lender may elect or decline to participate in the requested increase at the Lender’s sole discretion. At August 26, 2023, we had a total of $15.2 million of ongoing letters of credit related to industrial revenue bonds, construction contracts and insurance collateral that expire in fiscal year 2025 and reduce borrowing capacity under the revolving credit facility. As of August 26, 2023, the amount available for revolving borrowings was $239.8 million and $21.3 million under the Wells Fargo credit facility and Bank of Montreal credit facilities, respectively. At August 26, 2023, debt included $12.0 million of industrial revenue bonds that mature in fiscal years 2036 through 2043. The fair value of our U.S. credit facility, Canadian credit facilities and industrial revenue bonds approximated carrying value at August 26, 2023, and would be classified as Level 2 within the fair value hierarchy described in Note 4, due to the variable interest rates on these instruments.. Interest payments under the U.S. and Canadian credit facilities were $5.4 million and $2.8 million for the six months ended August 26, 2023 and August 27, 2022, respectively.
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Commitments and Contingent Liabilities |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Bond commitments In the ordinary course of business, predominantly in our Architectural Services and Architectural Framing Systems segments, we are required to provide surety or performance bonds that commit payments to our customers for any non-performance. At August 26, 2023, $1.3 billion of these types of bonds were outstanding, of which $452.4 million is in our backlog. These bonds do not have stated expiration dates. We have never been required to make payments under surety or performance bonds with respect to our existing businesses. Warranty and project-related contingencies We reserve estimated exposures on known claims, as well as on a portion of anticipated claims, for product warranty and rework cost, based on historical product liability claims as a ratio of sales. Claim costs are deducted from the accrual when paid. Factors that could have an impact on these accruals in any given period include the following: changes in manufacturing quality, changes in product mix, and any significant changes in sales volume.
Additionally, we are subject to project management and installation-related contingencies as a result of our fixed-price material supply and installation service contracts, primarily in our Architectural Services segment and certain of our Architectural Framing Systems businesses. We manage the risk of these exposures through contract negotiations, proactive project management and insurance coverages. Letters of credit At August 26, 2023, we had $15.2 million of ongoing letters of credit, all of which have been issued under our committed revolving credit facility, as discussed in Note 6. We also have a $3.4 million letter of credit which has been issued outside our committed revolving credit facility, with no impact on our borrowing capacity and debt covenants. Purchase obligations Purchase obligations for raw material commitments and capital expenditures totaled $30.4 million as of August 26, 2023. New Markets Tax Credit (NMTC) transactions We have two outstanding NMTC arrangements which help to support operational expansion. Proceeds received from investors on these transactions are included within other non-current liabilities in our consolidated balance sheets. The NMTC arrangements are subject to 100 percent tax credit recapture for a period of seven years from the date of each respective transaction. Upon the termination of each arrangement, these proceeds will be recognized in earnings in exchange for the transfer of tax credits. The direct and incremental costs incurred in structuring these arrangements have been deferred and are included in other non-current assets in our consolidated balance sheets. These costs will be recognized in conjunction with the recognition of the related proceeds on each arrangement. During the construction phase or for working capital purposes for each project, we are required to hold cash dedicated to fund each project which is classified as restricted cash in our consolidated balance sheets. Variable-interest entities, which have been included within our consolidated financial statements, have been created as a result of the structure of these transactions, as investors in the programs do not have a material interest in their underlying economics. During the second quarter ended August 26, 2023, one NMTC transaction was settled as expected and as a result, a $4.7 million benefit was recorded in other (income) expense, net. The table below provides a summary of estimated benefits related to our outstanding NMTC transactions (in thousands):
(1) Continuation of the August 2018 NMTC financing transaction Litigation The Company is a party to various legal proceedings incidental to its normal operating activities. In particular, like others in the construction supply and services industry, the Company is routinely involved in various disputes and claims arising out of construction projects, sometimes involving significant monetary damages or product replacement. We have in the past and are currently subject to product liability and warranty claims, including certain legal claims related to a commercial sealant product formerly incorporated into our products. In December 2022, the claimant in an arbitration of one such claim was awarded $20 million. The Company has appealed the award and believes, after taking into account all currently available information, including the advice of counsel and the likelihood of available insurance coverage, that this award will not have a material adverse effect on the Company's business, financial condition, results of operations or cash flows. The Company is also subject to litigation arising out of areas such as employment practices, workers compensation and general liability matters. Although it is very difficult to accurately predict the outcome of any such proceedings, facts currently available indicate that no matters will result in losses that would have a material adverse effect on the results of operations, cash flows or financial condition of the Company.
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Share-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based CompensationAs part of our compensation structure, we grant stock-based compensation awards to certain employees and non-employee directors during the fiscal year. These awards may be in the form of incentive stock options (to employees only), nonstatutory options, or nonvested share awards and units, all of which are granted at a price or with an exercise price equal to the fair market value of the Company’s stock at the date of award. Refer to our Form 10-K for further information on our share-based compensation plans. The table below sets forth the number of stock-based compensation awards granted during the six-months ended August 26, 2023, along with the weighted average grant date fair value:
Total share-based compensation expense included in the results of operations was $4.5 million for the six-month period ended August 26, 2023, and $3.4 million for the six-month period ended August 27, 2022. At August 26, 2023, there was $11.0 million of total unrecognized compensation cost related to nonvested share and nonvested share unit awards, which is expected to be recognized over a weighted average period of approximately 22 months. The total fair value of shares vested during the six months ended August 26, 2023 was $5.5 million.
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Earnings per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings per Share The following table presents a reconciliation of the share amounts used in the computation of basic and diluted earnings per share (diluted EPS):
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Segment Information |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Business Segment Data We have four reporting segments: •The Architectural Framing Systems segment designs, engineers, fabricates and finishes aluminum window, curtainwall, storefront and entrance systems for the exterior of buildings. •The Architectural Glass segment coats and fabricates, high-performance glass used in custom window and wall systems on commercial buildings. •The Architectural Services segment integrates technical services, project management, and field installation services to design, engineer, fabricate, and install building glass and curtainwall systems. •The Large-Scale Optical (LSO) segment manufactures high-performance glass and acrylic products for custom framing, museum, and technical glass markets.
*Corporate and other includes certain corporate expenses that are not allocated at a segment level. Due to the varying combinations and integration of individual window, storefront and curtainwall systems, it is impractical to report product revenues generated by class of product, beyond the segment revenues currently reported.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
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Pay vs Performance Disclosure | ||||||
Net earnings | $ 33,327 | $ 23,576 | $ 37,389 | $ 22,731 | $ 56,903 | $ 60,120 |
Insider Trading Arrangements |
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Aug. 26, 2023 | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Revenue, Receivables and Contract Assets and Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 26, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregated revenue data | The following table disaggregates total revenue by timing of recognition (see Note 11 for disclosure of revenue by segment):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net receivables |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses | The following table summarizes the activity in the allowance for credit losses for the six-month period ended:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance obligations expected to be satisfied | expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods:
|
Supplemental Balance Sheet Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 26, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of inventories | Inventories
|
Financial Instruments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 26, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost, gross unrealized gains and losses, and estimated fair values of investments available for sale | e hold the following available-for-sale marketable securities, made up of fixed-maturity investments:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of amortized cost and estimated fair values of investments by contractual maturity | The amortized cost and estimated fair values of these investments at August 26, 2023, 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 penalty.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurements |
|
Goodwill and Other Identifiable Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 26, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill attributable to each business segment |
|
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Schedule of finite lived intangible assets | The gross carrying amount of other intangible assets and related accumulated amortization was:
|
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Schedule of estimated future amortization expense for identifiable intangible assets | At August 26, 2023, the estimated future amortization expense for definite-lived intangible assets was:
|
Commitments and Contingent Liabilities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 26, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees and warranties |
|
Share-Based Compensation (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 26, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Grants in Period and Weighted Average Grant Date Fair Value | The table below sets forth the number of stock-based compensation awards granted during the six-months ended August 26, 2023, along with the weighted average grant date fair value:
|
Earnings per Share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 26, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of basic and diluted earnings per share | The following table presents a reconciliation of the share amounts used in the computation of basic and diluted earnings per share (diluted EPS):
|
Segment Information (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 26, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and operating income data |
|
Summary of Significant Accounting Policies (Details) $ in Thousands |
Aug. 26, 2023
USD ($)
|
---|---|
Accounting Policies [Abstract] | |
Supplier Finance Program, Obligation | $ 4,900 |
Revenue, Receivables and Contract Assets and Liabilities Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Aug. 26, 2023 |
Aug. 27, 2022 |
Aug. 26, 2023 |
Aug. 27, 2022 |
|
Disaggregation of Revenue [Line Items] | ||||
Total | $ 353,675 | $ 372,109 | $ 715,388 | $ 728,744 |
Recognized at shipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 152,240 | 174,693 | 304,895 | 335,857 |
Recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 201,435 | $ 197,416 | $ 410,493 | $ 392,887 |
Revenue, Receivables and Contract Assets and Liabilities Accounts Receivable (Details) - USD ($) $ in Thousands |
Aug. 26, 2023 |
Feb. 25, 2023 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 209,025 | $ 199,063 |
Less: allowance for credit losses | 3,305 | 1,796 |
Receivables, net | 205,720 | 197,267 |
Trade accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 138,283 | 140,732 |
Construction contracts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 70,742 | $ 58,331 |
Revenue, Receivables and Contract Assets and Liabilities Allowance for Credit Losses (Details) $ in Thousands |
6 Months Ended |
---|---|
Aug. 26, 2023
USD ($)
| |
Credit Loss [Abstract] | |
Accounts Receivable, Allowance for Credit Loss, Beginning Balance | $ 1,796 |
Additions charged to costs and expenses | 1,594 |
Deductions from allowance, net of recoveries | (95) |
Foreign currency effects | 10 |
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ 3,305 |
Revenue, Receivables and Contract Assets and Liabilities (Details 4) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Aug. 26, 2023 |
Aug. 27, 2022 |
Aug. 26, 2023 |
Aug. 27, 2022 |
|
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized related to contract liabilities from prior year-end | $ 2,249 | $ 4,978 | $ 24,956 | $ 33,157 |
Revenue recognized related to prior satisfaction of performance obligations | $ 4,477 | $ 4,770 | $ 4,904 | $ 4,946 |
Supplemental Balance Sheet Information - Components of inventories (Details) - USD ($) $ in Thousands |
Aug. 26, 2023 |
Feb. 25, 2023 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 36,465 | $ 36,869 |
Work-in-process | 15,543 | 18,024 |
Finished goods | 20,767 | 23,548 |
Total inventories | $ 72,775 | $ 78,441 |
Financial Instruments (Details) - USD ($) $ in Thousands |
Aug. 26, 2023 |
Feb. 25, 2023 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 10,778 | |
Estimated Fair Value | 10,192 | |
Municipal and Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,778 | $ 10,647 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 588 | 702 |
Estimated Fair Value | $ 10,192 | $ 9,945 |
Financial Instruments (Details 2) $ in Thousands |
Aug. 26, 2023
USD ($)
|
---|---|
Amortized Cost | |
Due within one year | $ 2,717 |
Due after one year through five years | 8,061 |
Total | 10,778 |
Estimated Fair Value | |
Due within one year | 2,675 |
Due after one year through five years | 7,517 |
Total | $ 10,192 |
Financial Instruments (Details Textual) - Designated as Hedging Instrument $ in Millions |
Aug. 26, 2023
USD ($)
|
---|---|
Interest Rate Swap [Member] | |
Derivatives, Fair Value [Line Items] | |
Derivative, Notional Amount | $ 30.0 |
Foreign Exchange Forward | |
Derivatives, Fair Value [Line Items] | |
Derivative, Notional Amount | 1.6 |
Commodity Option [Member] | |
Derivatives, Fair Value [Line Items] | |
Derivative, Notional Amount | $ 12.9 |
Goodwill and Other Identifiable Intangible Assets (Details 2) $ in Thousands |
Aug. 26, 2023
USD ($)
|
---|---|
Schedule of estimated future amortization expense for identifiable intangible assets | |
Remainder of 2024 | $ 2,114 |
2025 | 4,228 |
2026 | 4,211 |
2027 | 4,380 |
2028 | $ 3,913 |
Goodwill and Other Identifiable Intangible Assets (Details Textual) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Aug. 26, 2023 |
Aug. 27, 2022 |
|
Goodwill and Other Identifiable Intangible Assets (Textual) [Abstract] | ||
Amortization expense on identifiable intangible assets | $ 2.0 | $ 2.1 |
Debt (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Aug. 26, 2023 |
Aug. 27, 2022 |
Feb. 25, 2023 |
|
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 385,000 | ||
Interest payments | 5,400 | $ 2,800 | |
Line of Credit Facility, Remaining Borrowing Capacity | 239,800 | ||
Revolving credit facility | |||
Line of Credit Facility [Line Items] | |||
Outstanding borrowings | 130,000 | $ 156,000 | |
Industrial Revenue Bonds | |||
Line of Credit Facility [Line Items] | |||
Debt | 12,000 | ||
Letter of credit | |||
Line of Credit Facility [Line Items] | |||
Debt | 15,200 | ||
Canada | Revolving credit facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 25,000 | ||
Outstanding borrowings | 3,700 | $ 1,800 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 21,300 |
Commitments and Contingent Liabilities (Details 1) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Aug. 26, 2023 |
Aug. 27, 2022 |
|
Guarantees and warranties | ||
Balance at beginning of period | $ 17,893 | $ 13,923 |
Additional accruals | 8,887 | 6,918 |
Claims paid | (4,440) | (4,201) |
Balance at end of period | $ 22,340 | $ 16,640 |
Commitments and Contingent Liabilities (Details 2) $ in Thousands |
6 Months Ended |
---|---|
Aug. 26, 2023
USD ($)
| |
Income Tax Contingency [Line Items] | |
Proceeds received | $ 9,250 |
Deferred costs | 2,635 |
Net benefit | 6,615 |
August 2025 | |
Income Tax Contingency [Line Items] | |
Proceeds received | 6,052 |
Deferred costs | 1,604 |
Net benefit | 4,448 |
September 2025 | |
Income Tax Contingency [Line Items] | |
Proceeds received | 3,198 |
Deferred costs | 1,031 |
Net benefit | $ 2,167 |
Commitments and Contingent Liabilities (Details Textual) $ in Millions |
Aug. 26, 2023
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Face value of performance bonds | $ 1,300.0 |
Companies Backlog Related to Sales | 452.4 |
Purchase obligations | $ 30.4 |
Share-Based Compensation (Details) |
6 Months Ended |
---|---|
Aug. 26, 2023
$ / shares
shares
| |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Grants in Period | shares | 180,450 |
Share Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 42.80 |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Grants in Period | shares | 48,483 |
Share Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 43.59 |
Share-Based Compensation (Details Textual) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Aug. 26, 2023 |
Aug. 27, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Noncash Expense | $ 4,483 | $ 3,394 |
Total unrecognized compensation cost related to nonvested share | $ 11,000 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average period, Nonvested | 22 months | |
Total fair value of shares vested | $ 5,500 |
Earnings per Share Earnings per Share (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Aug. 26, 2023 |
Aug. 27, 2022 |
Aug. 26, 2023 |
Aug. 27, 2022 |
|
Earnings Per Share [Abstract] | ||||
Basic earnings per share – weighted average common shares outstanding | 21,708 | 21,860 | 21,813 | 22,129 |
Weighted average effect of nonvested share grants and assumed exercise of stock options | 254 | 385 | 292 | 434 |
Diluted earnings per share – weighted average common shares and potential common shares outstanding | 21,962 | 22,245 | 22,105 | 22,563 |
Stock awards excluded from the calculation of earnings per share because the effect was anti-dilutive (award price greater than average market price of the shares) | 51 | 120 | 73 | 120 |
Segment Information Segment Information (Details Textual) |
6 Months Ended |
---|---|
Aug. 26, 2023
Reportable_segment
| |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 4 |
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