(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||||||||
(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)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Emerging growth company |
ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
Exhibit Number | Description | ||||||||||||||||
104 | Cover page interactive data file (embedded within the Inline XBRL document) |
APOGEE ENTERPRISES, INC. | ||||||||
By: | /s/ Matthew J. Osberg | |||||||
Matthew J. Osberg Executive Vice President and Chief Financial Officer |
Three Months Ended | ||||||||||||||||||||
(Unaudited, $ in thousands, except per share amounts) | March 2, 2024 | February 25, 2023 | % Change | |||||||||||||||||
Net Sales | $ | 361,840 | $ | 344,105 | 5.2% | |||||||||||||||
Operating income | $ | 21,866 | $ | 25,739 | (15.0)% | |||||||||||||||
Operating margin | 6.0 | % | 7.5 | % | (20.0)% | |||||||||||||||
Diluted earnings per share | $ | 0.71 | $ | 0.91 | (22.0)% | |||||||||||||||
Additional Non-GAAP Measures1 | ||||||||||||||||||||
Adjusted operating income | $ | 34,269 | $ | 25,739 | 33.1% | |||||||||||||||
Adjusted operating margin | 9.5 | % | 7.5 | % | 26.7% | |||||||||||||||
Adjusted diluted earnings per share | $ | 1.14 | $ | 0.86 | 32.6% | |||||||||||||||
Adjusted EBITDA | $ | 43,039 | $ | 36,745 | 17.1% | |||||||||||||||
Adjusted EBITDA margin | 11.9 | % | 10.7 | % | 11.2% |
Apogee Enterprises, Inc. | ||||||||||||||||||||||||||||||||||||||
Consolidated Condensed Statements of Income | ||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||||||||
March 2, 2024 | February 25, 2023 | March 2, 2024 | February 25, 2023 | |||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | (14 weeks) | (13 weeks) | % Change | (53 weeks) | (52 weeks) | % Change | ||||||||||||||||||||||||||||||||
Net sales | $ | 361,840 | $ | 344,105 | 5.2 | % | $ | 1,416,942 | $ | 1,440,696 | (1.6) | % | ||||||||||||||||||||||||||
Cost of sales | 273,374 | 265,993 | 2.8 | % | 1,049,814 | 1,105,423 | (5.0) | % | ||||||||||||||||||||||||||||||
Gross profit | 88,466 | 78,112 | 13.3 | % | 367,128 | 335,273 | 9.5 | % | ||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 66,600 | 52,373 | 27.2 | % | 233,295 | 209,485 | 11.4 | % | ||||||||||||||||||||||||||||||
Operating income | 21,866 | 25,739 | (15.0) | % | 133,833 | 125,788 | 6.4 | % | ||||||||||||||||||||||||||||||
Interest expense, net | 949 | 2,166 | (56.2) | % | 6,669 | 7,660 | (12.9) | % | ||||||||||||||||||||||||||||||
Other expense (income), net | 1,633 | (528) | N/M | (2,089) | 1,507 | N/M | ||||||||||||||||||||||||||||||||
Earnings before income taxes | 19,284 | 24,101 | (20.0) | % | 129,253 | 116,621 | 10.8 | % | ||||||||||||||||||||||||||||||
Income tax expense | 3,548 | 3,879 | (8.5) | % | 29,640 | 12,514 | 136.9 | % | ||||||||||||||||||||||||||||||
Net earnings | $ | 15,736 | $ | 20,222 | (22.2) | % | $ | 99,613 | $ | 104,107 | (4.3) | % | ||||||||||||||||||||||||||
Basic earnings per share | $ | 0.72 | $ | 0.92 | (21.7) | % | $ | 4.55 | $ | 4.73 | (3.8) | % | ||||||||||||||||||||||||||
Diluted earnings per share | $ | 0.71 | $ | 0.91 | (22.0) | % | $ | 4.51 | $ | 4.64 | (2.8) | % | ||||||||||||||||||||||||||
Weighted average basic shares outstanding | 21,819 | 21,900 | (0.4) | % | 21,871 | 22,007 | (0.6) | % | ||||||||||||||||||||||||||||||
Weighted average diluted shares outstanding | 22,102 | 22,326 | (1.0) | % | 22,091 | 22,416 | (1.4) | % | ||||||||||||||||||||||||||||||
Cash dividends per common share | $ | 0.2500 | $ | 0.2400 | 4.2 | % | $ | 0.9700 | $ | 0.9000 | 7.8 | % |
Apogee Enterprises, Inc. | ||||||||||||||||||||||||||||||||||||||
Business Segment Information | ||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||||||||
March 2, 2024 | February 25, 2023 | March 2, 2024 | February 25, 2023 | |||||||||||||||||||||||||||||||||||
(In thousands) | (14 weeks) | (13 weeks) | % Change | (53 weeks) | (52 weeks) | % Change | ||||||||||||||||||||||||||||||||
Segment net sales | ||||||||||||||||||||||||||||||||||||||
Architectural Framing Systems | $ | 139,188 | $ | 148,606 | (6.3) | % | $ | 601,736 | $ | 649,778 | (7.4) | % | ||||||||||||||||||||||||||
Architectural Glass | 96,187 | 81,396 | 18.2 | % | 378,449 | 316,554 | 19.6 | % | ||||||||||||||||||||||||||||||
Architectural Services | 106,278 | 98,476 | 7.9 | % | 378,422 | 410,627 | (7.8) | % | ||||||||||||||||||||||||||||||
Large-Scale Optical | 27,113 | 27,227 | (0.4) | % | 99,223 | 104,215 | (4.8) | % | ||||||||||||||||||||||||||||||
Intersegment eliminations | (6,926) | (11,600) | (40.3) | % | (40,888) | (40,478) | 1.0 | % | ||||||||||||||||||||||||||||||
Net sales | $ | 361,840 | $ | 344,105 | 5.2 | % | $ | 1,416,942 | $ | 1,440,696 | (1.6) | % | ||||||||||||||||||||||||||
Segment operating income (loss) | ||||||||||||||||||||||||||||||||||||||
Architectural Framing Systems | $ | 6,847 | $ | 15,609 | (56.1) | % | $ | 64,833 | $ | 81,875 | (20.8) | % | ||||||||||||||||||||||||||
Architectural Glass | 18,927 | 9,523 | 98.8 | % | 68,046 | 28,610 | 137.8 | % | ||||||||||||||||||||||||||||||
Architectural Services | 3,629 | 3,691 | (1.7) | % | 11,840 | 18,140 | (34.7) | % | ||||||||||||||||||||||||||||||
Large-Scale Optical | 6,945 | 5,750 | 20.8 | % | 24,233 | 25,348 | (4.4) | % | ||||||||||||||||||||||||||||||
Corporate and other | (14,482) | (8,834) | 63.9 | % | (35,119) | (28,185) | 24.6 | % | ||||||||||||||||||||||||||||||
Operating income | $ | 21,866 | $ | 25,739 | (15.0) | % | $ | 133,833 | $ | 125,788 | 6.4 | % | ||||||||||||||||||||||||||
Segment operating margin | ||||||||||||||||||||||||||||||||||||||
Architectural Framing Systems | 4.9 | % | 10.5 | % | 10.8 | % | 12.6 | % | ||||||||||||||||||||||||||||||
Architectural Glass | 19.7 | % | 11.7 | % | 18.0 | % | 9.0 | % | ||||||||||||||||||||||||||||||
Architectural Services | 3.4 | % | 3.7 | % | 3.1 | % | 4.4 | % | ||||||||||||||||||||||||||||||
Large-Scale Optical | 25.6 | % | 21.1 | % | 24.4 | % | 24.3 | % | ||||||||||||||||||||||||||||||
Corporate and other | N/M | N/M | N/M | N/M | ||||||||||||||||||||||||||||||||||
Operating margin | 6.0 | % | 7.5 | % | 9.4 | % | 8.7 | % |
Apogee Enterprises, Inc. | ||||||||||||||
Consolidated Condensed Balance Sheets | ||||||||||||||
(Unaudited) | ||||||||||||||
(In thousands) | March 2, 2024 | February 25, 2023 | ||||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 37,216 | $ | 19,924 | ||||||||||
Restricted cash | — | 1,549 | ||||||||||||
Receivables, net | 173,557 | 197,267 | ||||||||||||
Inventories, net | 69,240 | 78,441 | ||||||||||||
Contract assets | 49,502 | 59,403 | ||||||||||||
Other current assets | 29,124 | 26,517 | ||||||||||||
Total current assets | 358,639 | 383,101 | ||||||||||||
Property, plant and equipment, net | 244,216 | 248,867 | ||||||||||||
Operating lease right-of-use assets | 40,221 | 41,354 | ||||||||||||
Goodwill | 129,182 | 129,026 | ||||||||||||
Intangible assets, net | 66,114 | 65,966 | ||||||||||||
Other non-current assets | 45,692 | 47,051 | ||||||||||||
Total assets | $ | 884,064 | $ | 915,365 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable | 84,755 | 86,549 | ||||||||||||
Accrued compensation and benefits | 53,801 | 51,651 | ||||||||||||
Contract liabilities | 34,755 | 28,011 | ||||||||||||
Operating lease liabilities | 12,286 | 11,806 | ||||||||||||
Other current liabilities | 59,108 | 64,532 | ||||||||||||
Total current liabilities | 244,705 | 242,549 | ||||||||||||
Long-term debt | 62,000 | 169,837 | ||||||||||||
Non-current operating lease liabilities | 31,907 | 33,072 | ||||||||||||
Non-current self-insurance reserves | 30,552 | 29,316 | ||||||||||||
Other non-current liabilities | 43,875 | 44,183 | ||||||||||||
Total shareholders’ equity | 471,025 | 396,408 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 884,064 | $ | 915,365 |
Apogee Enterprises, Inc. | ||||||||||||||
Consolidated Statement of Cash Flows | ||||||||||||||
(Unaudited) | ||||||||||||||
Twelve Months Ended | ||||||||||||||
March 2, 2024 | February 25, 2023 | |||||||||||||
(In thousands) | (53 weeks) | (52 weeks) | ||||||||||||
Operating Activities | ||||||||||||||
Net earnings | $ | 99,613 | $ | 104,107 | ||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 41,588 | 42,403 | ||||||||||||
Share-based compensation | 9,721 | 8,656 | ||||||||||||
Deferred income taxes | (9,748) | (7,185) | ||||||||||||
Asset impairment on property, plant, and equipment | 6,195 | — | ||||||||||||
Loss (gain) on disposal of assets | 826 | (3,815) | ||||||||||||
Proceeds from New Markets Tax Credit transaction, net of deferred costs | — | 18,390 | ||||||||||||
Settlement of New Markets Tax Credit transaction | (4,687) | (19,523) | ||||||||||||
Non-cash lease expense | 11,721 | 11,878 | ||||||||||||
Other, net | 4,615 | 5,399 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Receivables | 23,993 | (62,304) | ||||||||||||
Inventories | 9,366 | 1,731 | ||||||||||||
Contract assets | 9,880 | (3,380) | ||||||||||||
Accounts payable | (2,655) | (5,491) | ||||||||||||
Accrued compensation and benefits | 2,102 | (1,810) | ||||||||||||
Contract liabilities | 6,590 | 20,952 | ||||||||||||
Operating lease liability | (12,632) | (12,149) | ||||||||||||
Refundable and accrued income taxes | 6,523 | (6,976) | ||||||||||||
Other current assets and liabilities | 1,143 | 11,813 | ||||||||||||
Net cash provided by operating activities | 204,154 | 102,696 | ||||||||||||
Investing Activities | ||||||||||||||
Capital expenditures | (43,180) | (45,177) | ||||||||||||
Proceeds from sales of property, plant and equipment | 293 | 7,755 | ||||||||||||
Purchases of marketable securities | (2,953) | — | ||||||||||||
Sales/maturities of marketable securities | 2,165 | 9,712 | ||||||||||||
Net cash used by investing activities | (43,675) | (27,710) | ||||||||||||
Financing Activities | ||||||||||||||
Proceeds from revolving credit facilities | 196,964 | 485,879 | ||||||||||||
Repayment on debt | — | (151,000) | ||||||||||||
Repayments on revolving credit facilities | (304,817) | (327,865) | ||||||||||||
Repurchase of common stock | (11,821) | (74,312) | ||||||||||||
Dividends paid | (21,133) | (19,670) | ||||||||||||
Other, net | (3,800) | (4,055) | ||||||||||||
Net cash used by financing activities | (144,607) | (91,023) | ||||||||||||
Effect of exchange rates on cash | (129) | (73) | ||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 15,743 | (16,110) | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 21,473 | 37,583 | ||||||||||||
Cash and cash equivalents at end of year | $ | 37,216 | $ | 21,473 |
Apogee Enterprises, Inc. | ||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||
Adjusted Net Earnings and Adjusted Diluted Earnings per Share | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
March 2, 2024 | February 25, 2023 | March 2, 2024 | February 25, 2023 | |||||||||||||||||||||||
(In thousands) | (14 weeks) | (13 weeks) | (53 weeks) | (52 weeks) | ||||||||||||||||||||||
Net earnings | $ | 15,736 | $ | 20,222 | $ | 99,613 | $ | 104,107 | ||||||||||||||||||
Restructuring charges (1) | 12,403 | — | 12,403 | — | ||||||||||||||||||||||
NMTC settlement gain (2) | — | — | (4,687) | — | ||||||||||||||||||||||
Worthless stock deduction and related discrete tax benefits (3) | — | (1,131) | — | (14,833) | ||||||||||||||||||||||
Income tax impact on above adjustments | (3,039) | — | (1,890) | — | ||||||||||||||||||||||
Adjusted net earnings | $ | 25,100 | $ | 19,091 | $ | 105,439 | $ | 89,274 | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
March 2, 2024 | February 25, 2023 | March 2, 2024 | February 25, 2023 | |||||||||||||||||||||||
(14 weeks) | (13 weeks) | (53 weeks) | (52 weeks) | |||||||||||||||||||||||
Diluted earnings per share | $ | 0.71 | $ | 0.91 | $ | 4.51 | $ | 4.64 | ||||||||||||||||||
Restructuring charges (1) | 0.56 | — | 0.56 | — | ||||||||||||||||||||||
NMTC settlement gain (2) | — | — | (0.21) | — | ||||||||||||||||||||||
Worthless stock deduction and related discrete tax benefits (3) | — | (0.05) | — | (0.66) | ||||||||||||||||||||||
Income tax impact on above adjustments | (0.14) | — | (0.09) | — | ||||||||||||||||||||||
Adjusted diluted earnings per share | $ | 1.14 | $ | 0.86 | $ | 4.77 | $ | 3.98 | ||||||||||||||||||
Weighted average diluted shares outstanding | 22,102 | 22,326 | 22,091 | 22,416 |
(1) | Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs. | |||||||||||||
(2) | Realization of a New Market Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other expense (income), net. | |||||||||||||
(3) | Worthless stock deduction and related discrete income tax benefits from the impairment of the Sotawall business in fiscal 2023 which was recorded in income tax expense. |
Apogee Enterprises, Inc. | |||||||||||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||||||||
Adjusted Operating Income (Loss) and Adjusted Operating Margin | |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 2, 2024 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Architectural Framing Systems | Architectural Glass | Architectural Services | LSO | Corporate and Other | Consolidated | |||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 6,847 | $ | 18,927 | $ | 3,629 | $ | 6,945 | $ | (14,482) | $ | 21,866 | |||||||||||||||||||||||||||||
Restructuring charges (1) | 5,970 | — | 2,526 | — | 3,907 | 12,403 | |||||||||||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | 12,817 | $ | 18,927 | $ | 6,155 | $ | 6,945 | $ | (10,575) | $ | 34,269 | |||||||||||||||||||||||||||||
Operating margin | 4.9 | % | 19.7 | % | 3.4 | % | 25.6 | % | N/M | 6.0 | % | ||||||||||||||||||||||||||||||
Restructuring charges (1) | 4.3 | — | 2.4 | — | N/M | 3.4 | |||||||||||||||||||||||||||||||||||
Adjusted operating margin | 9.2 | % | 19.7 | % | 5.8 | % | 25.6 | % | N/M | 9.5 | % | ||||||||||||||||||||||||||||||
Three Months Ended February 25, 2023 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Architectural Framing Systems | Architectural Glass | Architectural Services | LSO | Corporate and Other | Consolidated | |||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 15,609 | $ | 9,523 | $ | 3,691 | $ | 5,750 | $ | (8,834) | $ | 25,739 | |||||||||||||||||||||||||||||
Operating margin | 10.5 | % | 11.7 | % | 3.7 | % | 21.1 | % | N/M | 7.5 | % | ||||||||||||||||||||||||||||||
(1) | Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs. |
Apogee Enterprises, Inc. | |||||||||||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||||||||
Adjusted Operating Income (Loss) and Adjusted Operating Margin | |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||
Twelve Months Ended March 2, 2024 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Architectural Framing Systems | Architectural Glass | Architectural Services | LSO | Corporate and Other | Consolidated | |||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 64,833 | $ | 68,046 | $ | 11,840 | $ | 24,233 | $ | (35,119) | $ | 133,833 | |||||||||||||||||||||||||||||
Restructuring charges (1) | 5,970 | — | 2,526 | — | 3,907 | 12,403 | |||||||||||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | 70,803 | $ | 68,046 | $ | 14,366 | $ | 24,233 | $ | (31,212) | $ | 146,236 | |||||||||||||||||||||||||||||
Operating margin | 10.8 | % | 18.0 | % | 3.1 | % | 24.4 | % | N/M | 9.4 | % | ||||||||||||||||||||||||||||||
Restructuring charges (1) | 1.0 | — | 0.7 | — | N/M | 0.9 | |||||||||||||||||||||||||||||||||||
Adjusted operating margin | 11.8 | % | 18.0 | % | 3.8 | % | 24.4 | % | N/M | 10.3 | % | ||||||||||||||||||||||||||||||
Twelve Months Ended February 25, 2023 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Architectural Framing Systems | Architectural Glass | Architectural Services | LSO | Corporate and Other | Consolidated | |||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 81,875 | $ | 28,610 | $ | 18,140 | $ | 25,348 | $ | (28,185) | $ | 125,788 | |||||||||||||||||||||||||||||
Operating margin | 12.6 | % | 9.0 | % | 4.4 | % | 24.3 | % | N/M | 8.7 | % | ||||||||||||||||||||||||||||||
(1) | Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs. |
Apogee Enterprises, Inc. | ||||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||
Adjusted EBITDA and Adjusted EBITDA Margin (Earnings before interest, taxes, depreciation and amortization) | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
March 2, 2024 | February 25, 2023 | March 2, 2024 | February 25, 2023 | |||||||||||||||||||||||
(In thousands) | (14 weeks) | (13 weeks) | (53 weeks) | (52 weeks) | ||||||||||||||||||||||
Net earnings | $ | 15,736 | $ | 20,222 | $ | 99,613 | $ | 104,107 | ||||||||||||||||||
Income tax expense | 3,548 | 3,879 | 29,640 | 12,514 | ||||||||||||||||||||||
Interest expense, net | 949 | 2,166 | 6,669 | 7,660 | ||||||||||||||||||||||
Depreciation and amortization | 10,403 | 10,478 | 41,588 | 42,403 | ||||||||||||||||||||||
EBITDA | $ | 30,636 | $ | 36,745 | $ | 177,510 | $ | 166,684 | ||||||||||||||||||
Restructuring charges (1) | 12,403 | — | 12,403 | — | ||||||||||||||||||||||
NMTC settlement gain (2) | — | — | (4,687) | — | ||||||||||||||||||||||
Adjusted EBITDA | $ | 43,039 | $ | 36,745 | $ | 185,226 | $ | 166,684 | ||||||||||||||||||
EBITDA Margin | 8.5 | % | 10.7 | % | 12.5 | % | 11.6 | % | ||||||||||||||||||
Adjusted EBITDA Margin | 11.9 | % | 10.7 | % | 13.1 | % | 11.6 | % |
(1) | Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs. | |||||||||||||
(2) | Realization of a New Market Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other expense (income), net. |
Apogee Enterprises, Inc. | ||||||||||||||
Reconciliation of Non-GAAP Measure - Net Leverage Ratio | ||||||||||||||
(Unaudited) | ||||||||||||||
Net Debt (In thousands) | March 2, 2024 | February 25, 2023 | ||||||||||||
Total debt | $ | 62,000 | $ | 169,837 | ||||||||||
Less: Cash and cash equivalents | 37,216 | 19,924 | ||||||||||||
Net Debt | $ | 24,784 | $ | 149,913 | ||||||||||
Trailing twelve months ending | ||||||||||||||
Adjusted EBITDA | March 2, 2024 | February 25, 2023 | ||||||||||||
Net earnings | $ | 99,613 | $ | 104,107 | ||||||||||
Income tax expense | 29,640 | 12,514 | ||||||||||||
Interest expense, net | 6,669 | 7,660 | ||||||||||||
Depreciation and amortization | 41,588 | 42,403 | ||||||||||||
EBITDA | $ | 177,510 | $ | 166,684 | ||||||||||
Restructuring charges (1) | 12,403 | — | ||||||||||||
NMTC settlement gain (2) | (4,687) | — | ||||||||||||
Adjusted EBITDA | $ | 185,226 | $ | 166,684 | ||||||||||
Net Leverage | March 2, 2024 | February 25, 2023 | ||||||||||||
Net Debt | $ | 24,784 | $ | 149,913 | ||||||||||
Adjusted EBITDA | 185,226 | 166,684 | ||||||||||||
Net Leverage Ratio | 0.1 | x | 0.9 | x | ||||||||||
(1) | Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs. | ||||
(2) | Realization of a New Market Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other expense (income), net. |
Apogee Enterprises, Inc. | |||||||||||||||||
Reconciliation of Non-GAAP Measure - Adjusted Return on Invested Capital Reconciliation | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Twelve Months Ended | |||||||||||||||||
(In thousands, except percentages) | March 2, 2024 | February 25, 2023 | |||||||||||||||
Operating income | $ | 133,833 | $ | 125,788 | |||||||||||||
Restructuring charges (1) | 12,403 | — | |||||||||||||||
Adjusted operating income | $ | 146,236 | $ | 125,788 | |||||||||||||
Tax adjustment (2) | 35,828 | 30,818 | |||||||||||||||
Adjusted operating income after taxes | $ | 110,408 | $ | 94,970 | |||||||||||||
Average invested capital (3) | $ | 668,555 | $ | 686,124 | |||||||||||||
Adjusted return on invested capital (ROIC) (4) | 16.5 | % | 13.8 | % | |||||||||||||
(1) | Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs. | ||||||||||||||||
(2) | Income tax impact calculated using an estimated statutory tax rate of 24.5%, which reflects the estimated blended statutory tax rate for the jurisdiction in which the charge or income occurred. | ||||||||||||||||
(3) | Average invested capital represents a trailing five quarter average of total assets less average current liabilities (excluding current portion long-term debt). | ||||||||||||||||
(4) | Adjusted ROIC calculated by dividing adjusted operating income after taxes by average invested capital |
Apogee Enterprises, Inc. | ||||||||||||||
Fiscal 2025 Outlook | ||||||||||||||
Reconciliation of Fiscal 2025 outlook of estimated Diluted Earnings per Share to Adjusted Diluted Earnings per Share | ||||||||||||||
(Unaudited) | ||||||||||||||
Fiscal Year Ending March 1, 2025 | ||||||||||||||
Low Range | High Range | |||||||||||||
Diluted earnings per share | $ | 4.25 | $ | 4.55 | ||||||||||
Restructuring charges (1) | 0.13 | 0.26 | ||||||||||||
Income tax impact on above adjustments per share | (0.03) | (0.06) | ||||||||||||
Adjusted diluted earnings per share | $ | 4.35 | $ | 4.75 | ||||||||||
(1) | Restructuring charges related to Project Fortify. |
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