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Apogee reports fiscal 2011 results


April 13, 2011
By Apogee Enterprises

April 6, 2011 – Apogee
Enterprises announced fiscal 2011 full-year
and fourth-quarter results. Apogee provides distinctive value-added
glass solutions for the architectural and picture framing industries. All figures are in U.S. dollars.

FY11 FULL YEAR VS. PRIOR-YEAR PERIOD

 

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  • Revenues of $582.8 million were down 16 per cent.
  • Operating loss was $21 million, compared to earnings of $45.4 million.
  • Per share loss from continuing operations was $0.51, versus earnings of $1.13.
  • Architectural segment revenues
    declined 19 per cent, while there was an operating loss of $37.7 million
    compared to earnings of $31.6 million.
  • Large-scale optical segment revenues increased seven per cent, and operating income was $20.5 million.
  • Net loss was $0.37 per share, compared to net earnings of $1.15 per share.
    • Discontinued operations provided
      net earnings from resolution of outstanding exposures related to foreign
      operations discontinued in 1998.
  • Cash and short-term investments
    totaled $60.6 million, compared to $46.4 million at the end of the third
    quarter, and $102.6 million at the end of fiscal 2010.

    • A Brazilian architectural glass fabricator was acquired for approximately $21 million in cash in the third quarter.

FY11 FOURTH QUARTER VS. PRIOR-YEAR PERIOD

 

  • Revenues of $147.9 million were flat.
  • Operating loss was $5.6 million, compared to a loss of $0.2 million.
  • Per share loss from continuing operations was $0.12, versus earnings of $0.01.
  • Architectural segment revenues declined two percent, with an operating loss of $9.9 million.
    • Backlog ended at $237.2 million,
      compared to $165.7 million at the end of the third quarter and $227.5
      million at the end of the prior year.
  • Large-scale optical segment revenues grew 10 per cent, while operating income increased 54 per cent to $5.5 million.
  • Net loss was $0.16 per share, compared to net earnings of $0.02 per share.
    • Discontinued operations expense was
      $0.04 per share from resolution of the final significant exposure
      related to foreign operations discontinued in 1998.

Commentary

"Our fiscal 2011 results were impacted by extremely challenging
commercial construction market conditions for our architectural segment.
Architectural segment revenues were down consistent with our markets
served, and low architectural glass pricing and low segment capacity
utilization led to losses," said Russell Huffer, Apogee CEO. "Earnings from our picture framing business were unable to
offset architectural segment losses.

"Our strategy to manage our business over a cycle has positioned us
to sustain these losses while maintaining a strong balance sheet and
cash on hand. At year-end, our cash and short-term investments totalled
approximately $60 million," he said. "During fiscal 2011, we also
remained focused on longer-term opportunities and used cash to purchase a
leading architectural glass fabricator in Brazil, giving Apogee entrée
to the large developing market for energy-efficient architectural glass
products in Latin America.

"In the fiscal 2011 fourth quarter, we achieved our highest quarterly
revenue level for the year, and had positive cash flow from
operations," Huffer said. "However, architectural segment losses,
resulting from low architectural glass pricing, low segment capacity
utilization, expenses related to architectural glass quality issues and
costs to implement architectural glass productivity improvements, more
than offset another good performance in our large-scale optical segment,
where retail picture framing markets are beginning to improve.

"Architectural segment revenue declines slowed and backlog grew in
the fourth quarter, signaling that our markets may be stabilizing. We
believe that we are well positioned for a market rebound with our strong
balance sheet, green energy-efficient products, expertise in complex
institutional projects, and success in pursuing installation work in new
domestic geographies," he said.


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