Restructuring

6 Months Ended

Aug. 31, 2024

Restructuring and Related Activities [Abstract]

During the fourth quarter of fiscal 2024, we announced strategic actions to further streamline our business operations, enable a more efficient cost model, and better position the Company for profitable growth (referred to as “Project Fortify”). Project Fortify primarily impacts the Architectural Framing Systems Segment and includes:

•Eliminating certain lower-margin product and service offerings, enabling consolidation into a single operating entity.

•Transferring production operations from the Company’s facility in Walker, Michigan, to the Company’s facilities in Monett, Missouri and Wausau, Wisconsin.

•Simplifying the segment’s brand portfolio and commercial model to improve flexibility, better leverage the Company’s capabilities, and enhance customer service.

Additionally, the Company has implemented actions to optimize processes and streamline resources in its Architectural Services Segment and Corporate.

During the second quarter of fiscal 2025, we incurred $1.2 million of pre-tax costs associated with Project Fortify, of which $0.9 million was included within cost of sales and $0.3 million was included within selling, general and administrative expenses. During the first six-months of fiscal 2025, we incurred $2.3 million of pre-tax costs associated with Project Fortify, of which $1.5 million was included within cost of sales and $0.8 million was included within selling, general and administrative expenses. Since announcing Project Fortify, we have incurred $14.7 million of pre-tax costs. The Company expects these restructuring actions to be substantially complete by the end of the third quarter of fiscal 2025 and expects to incur total pre-tax charges of approximately $15.0 million to $16.0 million. Total Project Fortify restructuring charges are expected to include:

•$6.5 million to $7.0 million of severance and employee related costs;

•Approximately $1.7 million of contract termination costs; and

•$6.5 million to $7.5 million of other expenses.

The Company expects that these actions will lead to annualized cost savings of $13 million to $14 million.


	Three Months Ended August 31, 2024
(In thousands)	Architectural Framing		Architectural Services		Corporate & Other		Total

Termination benefits	$	271	$	172	$	5	$	448
Contract termination costs	108		—		—		108
Other restructuring charges	537		86		—		623
Total restructuring charges	$	916	$	258	$	5	$	1,179


	Six Months Ended August 31, 2024
(In thousands)	Architectural Framing		Architectural Services		Corporate & Other		Total

Termination benefits	$	573	$	172	$	129	$	874
Contract termination costs	108		—		—		108
Other restructuring charges	1,233		86		—		1,319
Total restructuring charges	$	1,914	$	258	$	129	$	2,301

The following table summarizes our restructuring related accrual balances included within accrued payroll and related benefits and other current liabilities in the consolidated balance sheets. All remaining accrual balances are expected to be paid within fiscal 2025.


(In thousands)	Architectural Framing		Architectural Services		Corporate & Other		Total






Balance at March 2, 2024	$	2,814	$	2,067	$	56	$	4,937
Restructuring expense	736		—		124		860
Payments	(3,195)		(348)		(117)		(3,660)
Other adjustments	778		—		—		778
Balance at August 31, 2024	$	1,133	$	1,719	$	63	$	2,915

The charges presented in the rollforward of our restructuring accruals do not include items charged directly to expense as incurred, as those items are not reflected in accrued payroll and related benefits and other current liabilities in the consolidated balance sheets.