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APOG Reports Strong Q4 Results, Shares Drop 0.49%

Apogee Enterprises reported fiscal fourth-quarter net sales of $351.4 million, up 1.6% from $345.7 million a year earlier, as higher price and mix more than offset lower volume.

Net earnings jumped to $16.6 million from $2.5 million, and diluted earnings per share rose to $0.78 from $0.11. Adjusted diluted EPS increased to $0.92 from $0.89. Adjusted EBITDA edged up to $42.4 million from $41.1 million, while adjusted EBITDA margin widened to 12.1% from 11.9%.

Operating income climbed to $25.8 million from $6.1 million, and operating margin expanded to 7.3% from 1.8%. Gross margin improved to 22.4% from 21.6%, while SG&A fell to 15.1% of sales from 19.8%.

For the full fiscal year, net sales rose 3.2% to $1.40 billion from about $1.36 billion. But operating income fell to $84.5 million from $118.1 million, and operating margin slipped to 6.0% from 8.7%. Adjusted EBITDA declined to $167.3 million from $192.7 million, with margin narrowing to 11.9% from 14.2%. Diluted EPS dropped to $2.52 from $3.89, and adjusted diluted EPS fell to $3.47 from $4.97.

Cash from operations was $55.8 million in the quarter, up from $30.0 million, and $122.5 million for the year, down from $125.2 million. Capital expenditures totaled $27.3 million for the year, compared with $35.6 million a year earlier. The company returned $37.2 million to shareholders through $15.0 million of share repurchases and $22.2 million of dividends.

Long-term debt fell to $232.3 million, down $52.7 million, and the consolidated leverage ratio improved to 1.3x. The company said it substantially completed Project Fortify phase 2 in the quarter and incurred $3.9 million of pre-tax charges, bringing total pre-tax charges under the program to $27.4 million.

By segment in the fourth quarter: Architectural metals sales fell 1.9% to $110.0 million, while adjusted EBITDA rose to $7.2 million from $7.0 million. Architectural services sales increased 7.8% to $127.1 million, with adjusted EBITDA flat at $9.6 million. Architectural glass sales dropped 10.4% to $67.4 million, and adjusted EBITDA fell to $9.1 million from $14.1 million. Performance surfaces sales rose 13.5% to $54.3 million, while adjusted EBITDA declined to $10.5 million from $12.8 million.

Backlog in architectural services ended the quarter at $693.8 million, down from $774.7 million at the end of the third quarter. As a result of these announcements, the company's shares have moved -0.49% on the market, and are now trading at a price of $32.72. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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