Apogee Announces Profits in FY2012, Revenue Growth in Architectural Segment
Aprl 12, 2012

by Sahely Mukerji, smukerji@glass.com

Apogee Enterprises Inc. of Minneapolis reported its fourth-quarter and full-year results today.

"Apogee's revenue grew 14 percent for the full year," said Joseph F. Puishys, CEO and president, during a conference call. "The architectural segment revenues grew 15 percent [this year]. Our Brazilian acquisition contributed five points to that growth; the other ten points came from organic growth. The architectural segment results improved by $9 million in the fourth quarter year over year."

The backlog in the architectural segment grew to $242 million in the fourth quarter, compared to $230.7 million in the third quarter and $237.2 million in the prior-year period. "Pending orders have remained consistent, and we're continuing to see a robust backlog for the last five quarters," Puishys said. "Seventy-six percent of the backlog is expected to be delivered in 2013 and 14 percent in 2014."

Apogee reported revenues of $662.5 million in fiscal year 2012 and an operating income of $3.8 million compared to a loss of $21.0 million last year.

The architectural segment revenues grew in fiscal 2012, with an operating loss of $12.1 million compared to a loss of $37.7 million last year.

The company invested $25 million in growth and productivity, in upgrades and new products this year, Puishys said. "We are upgrading our architectural glass factory in Georgia. When that facility starts operating, we'll see more revenue growth."

Apogee is bidding more on private work now, according to Puishys. "It certainly feels like we're off the bottom now," he said. "We're anticipating mid-single digit growth in revenue in 2013. We'll show year-over-year improvement every quarter in 2013. The second half will be stronger than the first half."

Puishys said the fiscal 2013 conversion rate is extremely achievable, and the favorable comps in the first half will come from backlogs and in the second half from margins. "Our mid-single digit growth in 2013 is based on flat and slightly below flat end markets," Puishys said. "If the markets are better than flat, we'll perform better."

The installation and storefront segment will grow along with the architectural segment, Puishys said. "The backlog was known coming into this year, and we closed out well," he said. "We had maintained some key management programs. Installation is going to be one of our strongest businesses this year. We've discussed geographic opportunities, and Texas will be important in that segment in fiscal 2013."