Apogee Q4, Full-Year Earnings Increase Significantly; FY08 Guidance Raised
MINNEAPOLIS--(BUSINESS WIRE)--April 11, 2007--Apogee Enterprises, Inc. (Nasdaq:APOG) today announced fiscal 2007 fourth quarter and full-year earnings. Apogee provides distinctive value-added glass solutions for the architectural and picture framing industries.
FY07 FULL YEAR HIGHLIGHTS
-- Revenues increased 17 percent to $778.8 million.
-- Earnings from continuing operations were $1.12 per share, up
29 percent from earnings of $0.87 per share a year ago. Net
earnings were $1.12 per share compared to $0.85 per share last
year.
-- Operating margin was 6.1 percent, compared to 4.6 percent the
prior year.
-- Architectural segment revenues were up 21 percent, and
operating income more than doubled compared to the prior year.
-- Operating margin was 5.8 percent, up significantly from 3.2
percent the prior year.
-- Large-scale optical segment revenues decreased 6 percent as
expected, and operating income decreased 32 percent versus the
prior year.
-- Decision was made to discontinue the auto glass segment, with
annual revenues of approximately $27 million, in the fourth
quarter.
-- Auto replacement windshield manufacturing ended in the fourth
quarter, and manufacturing of recreational vehicle (RV) and
bus windshields will continue until sale of the business is
completed, which is expected by the end of the third quarter
of fiscal 2008.
-- Outlook for fiscal year 2008 earnings from continuing
operations has been increased to a range of $1.27 to $1.37 per
share, up from prior guidance of $1.20 to $1.30 per share.
FY07 FOURTH QUARTER HIGHLIGHTS
-- Revenues of $206.2 million were up 17 percent versus the
prior-year period.
-- Earnings from continuing operations were $0.32 per share
versus $0.21 per share a year earlier. Net earnings were $0.34
per share versus $0.19 per share in the prior-year period.
-- Operating margin was 6.6 percent, compared to 4.4 percent in
the prior-year period.
-- Architectural segment revenues were up 20 percent, and
operating income increased 140 percent versus the prior-year
period.
-- Large-scale optical segment revenues declined 3 percent as
expected, and operating income decreased 27 percent versus the
strong prior-year period.
-- Expect to complete the sale of the non-core, pre-framed
art/wall decor product line by the third quarter of fiscal
2008.
Commentary
"We are very pleased with fiscal 2007 results, which were driven by our architectural segment," said Russell Huffer, Apogee chairman and chief executive officer. "We achieved significant improvement in our architectural operating margin in fiscal 2007, increasing to 5.8 percent from 3.2 percent in the prior year. Architectural pricing increased, and operations improved. In addition, we had a better mix of projects with higher margins than during the prior year. And, strong markets supported our performance.
"We finalized our strategic plans to exit the auto glass segment, with the fourth quarter decision to sell the RV and bus windshield business," Huffer said. "We stopped producing aftermarket auto windshields late in fiscal 2007 and have started converting the facility to provide additional architectural glass capacity.
"Our large-scale optical segment fiscal 2007 results declined versus the prior year as some customers offered a less favorable mix of value-added framing products," he said. "However, later in the year, key framing customers converted to our best products, which offer visual benefits to consumers, and we started to see the positive results of this strategy at the end of the fourth quarter.
"As a result of our strong fourth quarter, we generated free cash flow of more than $8 million for the full year after investing approximately $40 million in capital expenditures," said Huffer. (Free cash flow is defined as operating cash flow less capital expenditures.) "Our debt level of $35 million was also significantly lower than anticipated due to improved earnings, reduced working capital requirements and the timing of some capital expenditures.
"Our fourth quarter performance underscored the strength of our architectural segment, which delivered significant growth in both revenues and operating income," said Huffer. "Our architectural backlog again grew and now stands at $424 million, positioning Apogee for further growth in fiscal 2008."
FOURTH QUARTER SEGMENT AND OPERATING HIGHLIGHTS
Architectural Products and Services
-- Revenues of $184.3 million were up 20 percent over the
prior-year period. All segment businesses contributed to this
growth.
-- Operating income was $12.1 million, up 140 percent from a year
ago.
-- Operating margin was 6.6 percent, compared to 3.3 percent in
the prior-year period and 5.5 percent through the first three
quarters of the fiscal year.
-- Continued to see improvement in operating margins due to
pricing, productivity and project mix, as older, less
profitable projects have been replaced with better margin
jobs.
-- Segment backlog was $423.8 million, compared to backlog of
$321.0 million in the prior-year period and $389.5 million at
the end of the third quarter.
Large-Scale Optical Technologies
-- Revenues of $22.0 million were down 3 percent from the
prior-year period due to lower pre-framed art/wall decor
sales.
-- Operating income was $2.5 million, down 27 percent from the
prior-year period.
-- Operating margin in the fourth quarter was 11.4 percent,
compared to 15.2 percent in the prior-year period.
-- Included a $900,000 pre-tax, non-cash charge related to the
planned exit of the approximately $8 million revenue
pre-framed art/wall decor product line, expected to be
completed by the fiscal 2008 third quarter.
-- Without the charge related to the product line exit, operating
income in the quarter would have been flat as national
customers purchased product mixes incorporating our best
value-added framing products.
Equity in Affiliates
-- Pre-tax earnings were $0.4 million from investment in PPG Auto
Glass, LLC, compared to earnings of $0.1 million in the
prior-year period.
Discontinued Operations
-- The auto glass segment was classified as discontinued
operations, effective with the fourth quarter. Historical
financial statements (attached) have been adjusted to reflect
the auto glass segment as discontinued operations.
-- Net income from discontinued operations was $0.4 million,
compared to a net loss of $0.4 million in the prior-year
period.
-- Ended auto replacement windshield production in the quarter
and sold some of the production equipment, resulting in income
for the quarter.
-- Sale and transition of the remaining auto glass segment
manufacturing assets - the RV and bus windshield business -
are expected to be completed by the end of the fiscal 2008
third quarter.
Financial Condition
-- Long-term debt was $35.4 million at the end of the fiscal
year, compared to $45.2 million at the end of the prior year
and $56.2 million in the third quarter.
-- Long-term debt-to-total-capital ratio was 13.1 percent, down
from fiscal 2006 year-end.
-- Non-cash working capital (current assets, excluding cash, less
current liabilities) was $70.4 million, compared to
$94.0 million at the end of the third quarter and $70.6
million at the end of fiscal 2006. The decrease from the third
quarter was driven by reduced days sales outstanding and
timing of payables.
-- Depreciation and amortization were $18.5 million for the year,
up 6 percent from the prior year.
-- Capital expenditures were $39.9 million for fiscal 2007,
including investments in architectural glass fabrication
capacity expansions. This compares to capital expenditures of
$29.4 million in fiscal 2006.
OUTLOOK
"We have increased our fiscal 2008 earnings guidance to $1.27 to $1.37 per share, as a result of our strong finish to fiscal 2007 and our large architectural backlog of $423.8 million with improving job margins," said Huffer. "We also lowered our expected tax rate for fiscal 2008, which accounts for $0.03 of the increase in our earnings per share outlook. Our earlier guidance for earnings from continuing operations was $1.20 to $1.30 per share.
"We are expecting continued strong performance from our architectural segment and anticipate operating margins of 6.4 to 6.7 percent, up significantly from our fiscal 2007 operating margin of 5.8 percent," said Huffer. "Fiscal 2008 architectural operating margins include the negative full-year impact of approximately 0.3 percent from the startup of our new Southwest facility during the first quarter. We expect to maintain the operating improvements we've achieved in our architectural glass business, and see continued improvement in our installation and window businesses.
"We are slightly increasing our architectural revenue outlook in terms of dollars, but with our stronger than expected revenue growth in the fourth quarter, the architectural growth rate for fiscal 2008 will be slightly lower than we had previously anticipated," he said. "Our current outlook is for architectural revenue growth of 10 to 13 percent.
"Our commercial construction markets continue to be strong, based on our backlog and market forecasts, and the sectors we serve value our energy-efficient, hurricane and blast value-added glass products and services," said Huffer.
"As we focus on growing sales of our best value-added picture framing glass products, we are now expecting operating margins of 11 to 12 percent for the large-scale optical segment," he said. "Segment revenues will be flat in fiscal 2008 as picture framing growth is offset by the planned sale of our pre-framed art/wall decor product line and continued transition away from consumer electronics products.
"We anticipate another year of significant growth in fiscal 2008, led by the performance of our architectural segment," said Huffer. "We are more sharply focused on executing our strategies related to our architectural and picture framing businesses, with the planned exit of two smaller, non-core business lines this year."
The following statements are based on current expectations for fiscal 2008. These statements are forward-looking, and actual results may differ materially.
-- Overall fiscal 2008 revenues for the year are expected to
increase 9 to 12 percent. (Fiscal 2008 is a 52-week year,
while the prior year had 53 weeks; on a comparable-year basis,
fiscal 2008 growth would be approximately 11 to 14 percent.)
-- Architectural segment revenues are expected to increase 10 to
13 percent (prior guidance was 12 to 15 percent).
-- Large-scale optical segment revenues are expected to be flat
(prior guidance was down slightly).
-- Annual gross margins are expected to be approximately 20 to
20.5 percent, or 1 to 1.5 percentage points higher than in
fiscal 2007; increased pricing, operational improvements and
cost reductions are expected to more than offset increases in
wages, health care, energy, materials and freight.
-- Selling, general and administrative expenses as a percent of
sales are projected to be approximately 13 to 13.5 percent.
-- Expected annual operating margins by segment are:
architectural, 6.4 to 6.7 percent; and large-scale optical, 11
to 12 percent (prior guidance was 10 to 11 percent).
-- Equity in affiliates, which reflects Apogee's portion of the
results of the PPG Auto Glass joint venture, is expected to
report pre-tax earnings of approximately $2 million.
-- Capital expenditures are projected to be approximately $40 to
$45 million, including capital for capacity expansions in the
architectural and large-scale optical segments.
-- Depreciation and amortization are estimated at $22 to $23
million for the year.
-- Debt is expected to be approximately $35 to $45 million at
year end.
-- The effective tax rate for the full year is anticipated to be
approximately 34.5 percent, down from prior guidance of 36
percent as a result of updating our full-year tax rate
computation.
-- Fiscal 2008 earnings per share from continuing operations are
expected to range from $1.27 to $1.37, up from prior guidance
of $1.20 to $1.30 per share.
The discussion above, including all statements in the Outlook section, contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect Apogee management's expectations or beliefs as of the date of this release. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements are qualified by factors that may affect the operating results of the company, including the following: operational risks within (A) the architectural segment: i) competitive, price-sensitive and changing market conditions, including unforeseen delays in project timing and work flow; ii) economic conditions and the cyclical nature of the North American commercial construction industry; iii) product performance, reliability or quality problems that could delay payments, increase costs, impact orders or lead to litigation; iv) the segment's ability to fully utilize production capacity; and v) construction and ramp-up to full production of the third Viracon plant in a timely and cost-efficient manner; and (B) the large-scale optical segment: i) markets that are impacted by consumer confidence and trends; ii) dependence on a relatively small number of customers; iii) changing market conditions, including unfavorable shift in product mix; iv) ability to utilize manufacturing facilities; and v) the company's ability to complete the planned sale of the pre-framed art/wall decor product line in a timely and effective manner. Additional factors include: i) revenue and operating results that are volatile; ii) self-insurance risk related to a material product liability event and to health insurance programs; iii) performance of the PPG Auto Glass, LLC joint venture; iv) management of discontinued operations exiting activities, including the company's ability to complete the planned sale of the RV and bus windshield manufacturing assets in a timely and effective manner; v) cost of compliance with governmental regulations relating to hazardous substances; and vi) foreign currency risk related to certain discontinued operations. The company cautions investors that actual future results could differ materially from those described in the forward-looking statements, and that other factors may in the future prove to be important in affecting the company's results of operations. New factors emerge from time to time and it is not possible for management to predict all such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or a combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. For a more detailed explanation of the foregoing and other risks and uncertainties, see Item 1A of the company's Annual Report on Form 10-K for the fiscal year ended February 25, 2006.
TELECONFERENCE AND SIMULTANEOUS WEBCAST
Analysts, investors and media are invited to listen to Apogee's live teleconference or webcast at 10 a.m. Central Time tomorrow, April 12. To participate in the teleconference, call 1-866-203-2528 toll free or 617-213-8847 international, access code 47430308. The replay will be available from noon Central Time on Thursday, April 12, through midnight Central Time on Thursday, April 19, by calling 1-888-286-8010 toll free, access code 82133517. To listen to the live conference call over the internet, go to the Apogee web site at http://www.apog.com and click on "investor relations" and then the webcast link at the top of that page. The webcast also will be archived on the company's web site.
Apogee Enterprises, Inc., headquartered in Minneapolis, is a world leader in technologies involving the design and development of value-added glass products and services. The company is organized in two segments:
-- Architectural products and services companies design,
engineer, fabricate, install, maintain and renovate the walls
of glass and windows comprising the outside skin of commercial
and institutional buildings. Businesses in this segment are:
Viracon, the leading fabricator of coated, high-performance
architectural glass for global markets; Harmon, Inc., one of
the largest U.S. full-service building glass installation,
maintenance and renovation companies; Wausau Window and Wall
Systems, a manufacturer of custom aluminum window systems and
curtainwall; and Linetec, a paint and anodizing finisher of
window frames and PVC shutters.
-- Large-scale optical segment consists of Tru Vue, a value-added
glass and acrylic manufacturer for the custom framing and
pre-framed art markets, and a producer of optical thin film
coatings for consumer electronics displays.
Apogee Enterprises, Inc. & Subsidiaries
Consolidated Condensed Statement of Income
(Unaudited)
Thirteen Thirteen
Weeks Ended Weeks Ended %
Dollar amounts in thousands, except March 3, February 25,
for per share amounts 2007 2006 Change
-------------- ------------ ------
Net sales $206,202 $175,643 17%
Cost of goods sold 165,971 141,734 17%
-------------- ------------
Gross profit 40,231 33,909 19%
Selling, general and administrative
expenses 26,676 26,248 2%
-------------- ------------
Operating income 13,555 7,661 77%
Interest income 201 215 -7%
Interest expense 354 659 -46%
Other (expense) income, net (7) 46 N/M
Equity in income of affiliated
companies 361 53 581%
-------------- ------------
Earnings from continuing operations
before income taxes 13,756 7,316 88%
Income taxes 4,518 1,531 195%
-------------- ------------
Earnings from continuing
operations 9,238 5,785 60%
Earnings (loss) from discontinued
operations 437 (439) N/M
-------------- ------------
Net earnings $9,675 $5,346 81%
============== ============
Earnings per share - basic:
Earnings from continuing
operations $0.33 $0.21 57%
Earnings (loss) from
discontinued operations $0.02 ($0.01) N/M
Net earnings $0.35 $0.20 75%
Average common shares outstanding 27,912,112 27,365,065 2%
Earnings per share - diluted:
Earnings from continuing
operations $0.32 $0.21 52%
Earnings (loss) from
discontinued operations $0.02 ($0.02) N/M
Net earnings $0.34 $0.19 79%
Average common and common
equivalent shares outstanding 28,670,788 28,107,836 2%
Cash dividends per common share $0.0675 $0.0650 4%
Fifty-three Fifty-two
Weeks Ended Weeks Ended %
Dollar amounts in thousands, except March 3, February 25,
for per share amounts 2007 2006 Change
----------- ------------ ------
Net sales $778,847 $665,457 17%
Cost of goods sold 630,433 537,035 17%
----------- ------------
Gross profit 148,414 128,422 16%
Selling, general and administrative
expenses 100,689 97,528 3%
----------- ------------
Operating income 47,725 30,894 54%
Interest income 1,024 805 27%
Interest expense 2,652 2,402 10%
Other (expense) income, net (22) 66 N/M
Equity in income of affiliated
companies 2,724 2,623 4%
----------- ------------
Earnings from continuing
operations
before income taxes 48,799 31,986 53%
Income taxes 17,147 7,749 121%
----------- ------------
Earnings from continuing
operations 31,652 24,237 31%
Earnings (loss) from discontinued
operations 1 (469) N/M
----------- ------------
Net earnings $31,653 $23,768 33%
=========== ============
Earnings per share - basic:
Earnings from continuing
operations $1.14 $0.88 30%
Earnings (loss) from
discontinued operations $- ($0.01) N/M
Net earnings $1.14 $0.87 31%
Average common shares outstanding 27,688,386 27,406,504 1%
Earnings per share - diluted:
Earnings from continuing
operations $1.12 $0.87 29%
Earnings (loss) from
discontinued operations $- ($0.02) N/M
Net earnings $1.12 $0.85 32%
Average common and common
equivalent shares outstanding 28,246,464 28,003,040 1%
Cash dividends per common share $0.2650 $0.2550 4%
----------------------------------------------------------------------
Business Segments Information
(Unaudited)
Thirteen Thirteen
Weeks Ended Weeks Ended %
March 3, February 25,
2007 2006 Change
----------- ------------ ------
Sales
Architectural $184,312 $153,105 20%
Large-Scale Optical 21,968 22,554 -3%
Eliminations (78) (16) -388%
----------- ------------
Total $206,202 $175,643 17%
=========== ============
Operating income (loss)
Architectural $12,120 $5,060 140%
Large-Scale Optical 2,496 3,420 -27%
Corporate and other (1,061) (819) -30%
----------- ------------
Total $13,555 $7,661 77%
=========== ============
Fifty-three Fifty-two
Weeks Ended Weeks Ended %
March 3, February 25,
2007 2006 Change
------------ ------------ ------
Sales
Architectural $694,888 $576,189 21%
Large-Scale Optical 84,082 89,313 -6%
Eliminations (123) (45) -173%
------------ ------------
Total $778,847 $665,457 17%
============ ============
Operating income (loss)
Architectural $40,323 $18,424 119%
Large-Scale Optical 10,215 15,122 -32%
Corporate and other (2,813) (2,652) -6%
------------ ------------
Total $47,725 $30,894 54%
============ ============
----------------------------------------------------------------------
Consolidated Condensed Balance Sheets
(Unaudited)
March 3, February 25,
2007 2006
---------- ------------
Assets
Current assets $222,484 $203,134
Net property, plant and equipment 134,256 111,298
Other assets 92,421 89,526
---------- ------------
Total assets $449,161 $403,958
========== ============
Liabilities and shareholders' equity
Current liabilities $145,859 $127,809
Long-term debt 35,400 45,200
Other liabilities 32,234 31,896
Shareholders' equity 235,668 199,053
---------- ------------
Total liabilities and shareholders'
equity $449,161 $403,958
========== ============
N/M = Not meaningful
Apogee Enterprises, Inc. & Subsidiaries
Consolidated Condensed Statement of Cash Flows
(Unaudited)
Fifty-three Fifty-two Fifty-two
Weeks Ended Weeks Ended Weeks Ended
Dollar amounts in thousands March 3, February 25, February 26,
2007 2006 2005
----------- ------------ ------------
Net earnings $31,653 $23,768 $16,645
Net (earnings) loss from
discontinued operations (1) 469 (1,431)
Depreciation and amortization 18,536 17,449 16,703
Stock-based compensation 5,127 1,681 459
Results from equity investments (2,724) (2,623) 1,272
Other, net (2,908) (1,120) 396
Changes in operating assets and
liabilities (1,612) (5,171) (3,245)
----------- ------------ ------------
Net cash provided by continuing
operating activities 48,071 34,453 30,799
----------- ------------ ------------
Capital expenditures (39,893) (29,361) (19,531)
Proceeds on sale of property 1,650 178 1,043
Acquisition of businesses, net
of cash acquired (444) (420) (6,804)
Net purchases of marketable
securities (1,070) (4,127) (149)
Other investing activities 5,000 (5,000) (12)
----------- ------------ ------------
Net cash used in investing
activities (34,757) (38,730) (25,453)
----------- ------------ ------------
(Payments on) proceeds from long-
term debt and revolving credit
agreement (9,800) 9,900 (4,658)
Proceeds from issuance of common
stock, net of cancellations 6,702 4,685 831
Repurchase and retirement of
common stock - (4,044) (1,859)
Dividends paid (9,312) (6,989) (6,695)
Other, net 1,758 (350) -
----------- ------------ ------------
Net cash (used in) provided by
financing activities (10,652) 3,202 (12,381)
----------- ------------ ------------
Cash (used in) provided by
discontinued operations (1,151) (216) 5,180
----------- ------------ ------------
Increase (decrease) in cash and
cash equivalents 1,511 (1,291) (1,855)
Cash and cash equivalents at
beginning of year 4,676 5,967 7,822
----------- ------------ ------------
Cash and cash equivalents at end
of period $6,187 $4,676 $5,967
=========== ============ ============
Apogee Enterprises, Inc. & Subsidiaries
Consolidated Condensed Quarterly Statement of Income
Presented to Reflect Discontinued Operation(a)
(Unaudited)
Dollar amounts in thousands,
except for per share amounts First Qtr Second Qtr Third Qtr
June 3, September 2, December 2,
2006 2006 2006
------------ ------------ ------------
Fiscal 2007
--------------------------------
Net sales $187,005 $181,755 $203,885
Cost of goods sold 154,161 147,068 163,233
------------ ------------ ------------
Gross profit 32,844 34,687 40,652
Selling, general and
administrative expenses 24,698 24,255 25,060
------------ ------------ ------------
Operating income 8,146 10,432 15,592
Interest income 323 279 221
Interest expense 822 794 683
Other (expense) income, net (58) 30 14
(Loss) equity in income of
affiliated companies (190) 1,473 1,080
------------ ------------ ------------
Earnings from continuing
operations before income
taxes and other items below 7,399 11,420 16,224
Income taxes 2,537 4,099 5,992
------------ ------------ ------------
Earnings from continuing
operations 4,862 7,321 10,232
(Loss) earnings from
discontinued operations (120) 12 (329)
------------ ------------ ------------
Net earnings $4,742 $7,333 $9,903
============ ============ ============
Earnings per share - basic:
Earnings from continuing
operations $0.18 $0.27 $0.37
(Loss) earnings from
discontinued operations ($0.01) $- ($0.01)
Net earnings $0.17 $0.27 $0.36
Average common shares
outstanding 27,603,473 27,586,396 27,651,561
Earnings per share - diluted:
Earnings from continuing
operations $0.17 $0.26 $0.36
Earnings (loss) from
discontinued operations $- $- ($0.01)
Net earnings $0.17 $0.26 $0.35
Average common shares
outstanding 28,021,688 27,993,684 28,299,695
First Qtr Second Qtr Third Qtr
May 28, August 27, November 26,
2005 2005 2005
------------ ------------ ------------
Fiscal 2006
--------------------------------
Net sales $155,580 $165,673 $168,561
Cost of goods sold 126,196 133,514 135,592
------------ ------------ ------------
Gross profit 29,384 32,159 32,969
Selling, general and
administrative expenses 23,271 23,936 24,071
------------ ------------ ------------
Operating income 6,113 8,223 8,898
Interest income 187 206 197
Interest expense 596 544 604
Other (expense) income, net (34) 73 (19)
Equity in (loss) income of
affiliated companies 190 1,256 1,124
------------ ------------ ------------
Earnings from continuing
operations before income
taxes and other items below 5,860 9,214 9,596
Income taxes 1,952 3,348 918
------------ ------------ ------------
Earnings from continuing
operations 3,908 5,866 8,678
Earnings (loss) from
discontinued operations 32 (358) 295
------------ ------------ ------------
Net earnings $3,940 $5,508 $8,973
============ ============ ============
Earnings per share - basic:
Earnings from continuing
operations $0.14 $0.21 $0.32
Earnings (loss) from
discontinued operations $- ($0.01) $0.01
Net earnings $0.14 $0.20 $0.33
Average common shares
outstanding 27,280,889 27,591,362 27,388,701
Earnings per share - diluted:
Earnings from continuing
operations $0.14 $0.21 $0.31
Earnings (loss) from
discontinued operations $- ($0.01) $0.01
Net earnings $0.14 $0.20 $0.32
Average common shares
outstanding 27,750,695 28,017,502 28,136,534
Dollar amounts in thousands, except for per
share amounts Fourth Qtr Full Year
March 3, March 3,
2007 2007
----------- -----------
Fiscal 2007
----------------------------------------------
Net sales $206,202 $778,847
Cost of goods sold 165,971 630,433
----------- -----------
Gross profit 40,231 148,414
Selling, general and administrative expenses 26,676 100,689
----------- -----------
Operating income 13,555 47,725
Interest income 201 1,024
Interest expense 354 2,652
Other (expense) income, net (7) (22)
(Loss) equity in income of affiliated
companies 361 2,724
----------- -----------
Earnings from continuing operations before
income taxes and other items below 13,756 48,799
Income taxes 4,518 17,147
----------- -----------
Earnings from continuing operations 9,238 31,652
(Loss) earnings from discontinued operations 437 1
----------- -----------
Net earnings $9,675 $31,653
=========== ===========
Earnings per share - basic:
Earnings from continuing operations $0.33 $1.14
(Loss) earnings from discontinued operations $0.02 $-
Net earnings $0.35 $1.14
Average common shares outstanding 27,912,112 27,688,386
Earnings per share - diluted:
Earnings from continuing operations $0.32 $1.12
Earnings (loss) from discontinued operations $0.02 $-
Net earnings $0.34 $1.12
Average common shares outstanding 28,670,788 28,246,464
Fourth Qtr Full Year
February February
25, 2006 25, 2006
----------- -----------
Fiscal 2006
----------------------------------------------
Net sales $175,643 $665,457
Cost of goods sold 141,734 537,035
----------- -----------
Gross profit 33,909 128,422
Selling, general and administrative expenses 26,248 97,528
----------- -----------
Operating income 7,661 30,894
Interest income 215 805
Interest expense 659 2,402
Other (expense) income, net 46 66
Equity in (loss) income of affiliated
companies 53 2,623
----------- -----------
Earnings from continuing operations before
income taxes and other items below 7,316 31,986
Income taxes 1,531 7,749
----------- -----------
Earnings from continuing operations 5,785 24,237
Earnings (loss) from discontinued operations (439) (469)
----------- -----------
Net earnings $5,346 $23,768
=========== ===========
Earnings per share - basic:
Earnings from continuing operations $0.21 $0.88
Earnings (loss) from discontinued operations ($0.01) ($0.01)
Net earnings $0.20 $0.87
Average common shares outstanding 27,365,065 27,406,504
Earnings per share - diluted:
Earnings from continuing operations $0.21 $0.87
Earnings (loss) from discontinued operations ($0.02) ($0.02)
Net earnings $0.19 $0.85
Average common shares outstanding 28,107,836 28,003,040
(a) There were no changes to the revenue, operating income or
operating margins for the Architectural and Large-Scale Optical
segments as a result of the discontinuance of the Auto Glass segment.
CONTACT: Apogee Enterprises, Inc.
Investor Relations:
Mary Ann Jackson, 952-487-7538
mjackson@apog.com
SOURCE: Apogee Enterprises, Inc.