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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.

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