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Aug 28, 2021
Apogee Enterprises Q2 2022 Earnings Report
Reported second-quarter results with revenue growth and adjusted earnings, driven by Architectural Services and Large-Scale Optical, while facing challenges from cost inflation and supply chain issues.
Key Takeaways
Apogee Enterprises reported a 2% increase in revenue to $325.8 million, driven by growth in Architectural Services and Large-Scale Optical. The company had a net loss of $(0.08) per diluted share, but adjusted earnings were $0.53 per diluted share. They also generated strong cash flow from operations of $48 million.
Second-quarter revenue increased by 2% year-over-year to $326 million.
The company reported a second-quarter loss of $(0.08) per diluted share, including $20.8 million in pre-tax restructuring costs.
Adjusted earnings for the second quarter were $0.53 per diluted share.
Apogee generated strong cash flow, with $48 million from operations in the second quarter.
Apogee Enterprises
Apogee Enterprises
Apogee Enterprises Revenue by Segment
Revenue by Segment
Architectural Services Revenue
CapyFin.comArchitectural Glass Revenue
CapyFin.com Forward Guidance
The company is now providing guidance of full year adjusted earnings in the range of $2.20 to $2.40 per diluted share, which excludes the impact of restructuring costs. This guidance includes $7 to $10 million of expected pre-tax costs related to investments in transformation initiatives. The company anticipates significant cost inflation through the remainder of the fiscal year, which it will work to mitigate through pricing actions, improved execution, and cost-savings measures.
Positive Outlook
- Adjusted earnings per share are expected to be in the range of $2.20 to $2.40.
- Guidance excludes restructuring costs.
- The company will work to mitigate cost inflation through pricing actions.
- The company will work to mitigate cost inflation through improved execution.
- The company will work to mitigate cost inflation through cost-savings measures.
Challenges Ahead
- Guidance includes $7 to $10 million of expected pretax costs related to investments in transformation initiatives.
- The company anticipates significant cost inflation through the remainder of the fiscal year.
- Tax rate of approximately 24.5 percent is expected in the second half of fiscal 2022.
- Full-year capital expenditures are expected to be approximately $35 million.
- Construction end markets that remain well below pre-pandemic levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income