QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Minnesota | 41-0919654 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
4400 West | Minneapolis | Minnesota | 55435 | |||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common stock, par value $0.33 1/3 per share | APOG | The Nasdaq Stock Market LLC |
Large accelerated filer | x | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | o | Smaller reporting company | ||||||||||||||||||
Emerging growth company | ||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. |
Page | ||||||||
PART I | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. | ||||||||
(In thousands, except stock data) | August 27, 2022 | February 26, 2022 | ||||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 22,065 | $ | 37,583 | ||||||||||
Restricted cash | 8,684 | — | ||||||||||||
Receivables, net | 231,853 | 168,592 | ||||||||||||
Inventories | 98,046 | 80,494 | ||||||||||||
Costs and earnings on contracts in excess of billings | 29,522 | 30,403 | ||||||||||||
Other current assets | 34,048 | 20,820 | ||||||||||||
Total current assets | 424,218 | 337,892 | ||||||||||||
Property, plant and equipment, net | 232,766 | 249,995 | ||||||||||||
Operating lease right-of-use assets | 42,505 | 47,912 | ||||||||||||
Goodwill | 129,476 | 130,102 | ||||||||||||
Intangible assets | 70,377 | 72,481 | ||||||||||||
Other non-current assets | 49,632 | 49,481 | ||||||||||||
Total assets | $ | 948,974 | $ | 887,863 | ||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable | $ | 86,871 | $ | 92,104 | ||||||||||
Accrued payroll and related benefits | 41,338 | 50,977 | ||||||||||||
Billings in excess of costs and earnings on uncompleted contracts | 29,616 | 8,659 | ||||||||||||
Operating lease liabilities | 11,498 | 12,744 | ||||||||||||
Current portion long-term debt | — | 1,000 | ||||||||||||
Other current liabilities | 64,060 | 67,462 | ||||||||||||
Total current liabilities | 233,383 | 232,946 | ||||||||||||
Long-term debt | 250,834 | 162,000 | ||||||||||||
Non-current operating lease liabilities | 34,625 | 39,591 | ||||||||||||
Non-current self-insurance reserves | 23,038 | 22,544 | ||||||||||||
Other non-current liabilities | 50,354 | 44,583 | ||||||||||||
Commitments and contingent liabilities (Note 8) | ||||||||||||||
Shareholders’ equity | ||||||||||||||
Common stock of $0.33-1/3 par value; authorized 50,000,000 shares; issued and outstanding 22,209,925 and 23,701,491 respectively | 7,403 | 7,901 | ||||||||||||
Additional paid-in capital | 141,575 | 149,713 | ||||||||||||
Retained earnings | 240,245 | 254,825 | ||||||||||||
Accumulated other comprehensive loss | (32,483) | (26,240) | ||||||||||||
Total shareholders’ equity | 356,740 | 386,199 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 948,974 | $ | 887,863 |
(In thousands, except stock data) | December 2, 2017 | March 4, 2017 | ||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 12,845 | $ | 19,463 | ||||
Short-term available for sale securities | 482 | 548 | ||||||
Restricted cash | — | 7,834 | ||||||
Receivables, net of allowance for doubtful accounts | 246,863 | 185,740 | ||||||
Inventories | 98,062 | 73,409 | ||||||
Refundable income taxes | — | 1,743 | ||||||
Other current assets | 16,536 | 8,724 | ||||||
Total current assets | 374,788 | 297,461 | ||||||
Property, plant and equipment, net | 302,904 | 246,748 | ||||||
Available for sale securities | 9,766 | 9,041 | ||||||
Deferred tax assets | 6,128 | 4,025 | ||||||
Goodwill | 152,881 | 101,334 | ||||||
Intangible assets | 173,856 | 106,686 | ||||||
Other non-current assets | 23,445 | 19,363 | ||||||
Total assets | $ | 1,043,768 | $ | 784,658 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 62,655 | $ | 63,182 | ||||
Accrued payroll and related benefits | 33,769 | 51,244 | ||||||
Accrued self-insurance reserves | 8,834 | 8,575 | ||||||
Other current liabilities | 60,923 | 34,200 | ||||||
Billings in excess of costs and earnings on uncompleted contracts | 38,830 | 28,857 | ||||||
Accrued income taxes | 4,520 | — | ||||||
Total current liabilities | 209,531 | 186,058 | ||||||
Long-term debt | 231,276 | 65,400 | ||||||
Unrecognized tax benefits | 4,837 | 3,980 | ||||||
Long-term self-insurance reserves | 17,038 | 8,831 | ||||||
Deferred tax liabilities | 2,910 | 4,025 | ||||||
Other non-current liabilities | 59,481 | 45,787 | ||||||
Commitments and contingent liabilities (Note 14) | ||||||||
Shareholders’ equity | ||||||||
Common stock of $0.33-1/3 par value; authorized 50,000,000 shares; issued and outstanding 28,641,445 and 28,680,841 respectively | 9,547 | 9,560 | ||||||
Additional paid-in capital | 154,357 | 150,111 | ||||||
Retained earnings | 375,280 | 341,996 | ||||||
Common stock held in trust | (908 | ) | (875 | ) | ||||
Deferred compensation obligations | 908 | 875 | ||||||
Accumulated other comprehensive loss | (20,489 | ) | (31,090 | ) | ||||
Total shareholders’ equity | 518,695 | 470,577 | ||||||
Total liabilities and shareholders’ equity | $ | 1,043,768 | $ | 784,658 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(In thousands, except per share data) | August 27, 2022 | August 28, 2021 | August 27, 2022 | August 28, 2021 | ||||||||||||||||||||||
Net sales | $ | 372,109 | $ | 325,797 | $ | 728,744 | $ | 651,803 | ||||||||||||||||||
Cost of sales | 287,173 | 277,795 | 558,191 | 536,091 | ||||||||||||||||||||||
Gross profit | 84,936 | 48,002 | 170,553 | 115,712 | ||||||||||||||||||||||
Selling, general and administrative expenses | 52,864 | 51,070 | 105,265 | 102,739 | ||||||||||||||||||||||
Operating income (loss) | 32,072 | (3,068) | 65,288 | 12,973 | ||||||||||||||||||||||
Interest expense, net | 1,698 | 1,072 | 2,904 | 2,310 | ||||||||||||||||||||||
Other expense (income), net | 173 | (105) | 1,483 | 209 | ||||||||||||||||||||||
Earnings (loss) before income taxes | 30,201 | (4,035) | 60,901 | 10,454 | ||||||||||||||||||||||
Income tax (benefit) expense | (7,188) | (1,919) | 781 | 1,753 | ||||||||||||||||||||||
Net earnings (loss) | $ | 37,389 | $ | (2,116) | $ | 60,120 | $ | 8,701 | ||||||||||||||||||
Earnings (loss) per share - basic | $ | 1.71 | $ | (0.08) | $ | 2.72 | $ | 0.34 | ||||||||||||||||||
Earnings (loss) per share - diluted | $ | 1.68 | $ | (0.08) | $ | 2.66 | $ | 0.34 | ||||||||||||||||||
Weighted average basic shares outstanding | 21,860 | 25,140 | 22,129 | 25,271 | ||||||||||||||||||||||
Weighted average diluted shares outstanding | 22,245 | 25,140 | 22,563 | 25,637 |
Three Months Ended | Nine Months Ended | |||||||||||||||
(In thousands, except per share data) | December 2, 2017 | November 26, 2016 | December 2, 2017 | November 26, 2016 | ||||||||||||
Net sales | $ | 356,506 | $ | 274,072 | $ | 972,721 | $ | 800,407 | ||||||||
Cost of sales | 264,947 | 201,204 | 724,868 | 590,581 | ||||||||||||
Gross profit | 91,559 | 72,868 | 247,853 | 209,826 | ||||||||||||
Selling, general and administrative expenses | 57,024 | 39,609 | 161,438 | 117,269 | ||||||||||||
Operating income | 34,535 | 33,259 | 86,415 | 92,557 | ||||||||||||
Interest income | 106 | 271 | 390 | 799 | ||||||||||||
Interest expense | 1,594 | 150 | 3,689 | 495 | ||||||||||||
Other income (expense), net | 303 | (158 | ) | 560 | 350 | |||||||||||
Earnings before income taxes | 33,350 | 33,222 | 83,676 | 93,211 | ||||||||||||
Income tax expense | 9,704 | 10,670 | 26,517 | 30,540 | ||||||||||||
Net earnings | $ | 23,646 | $ | 22,552 | $ | 57,159 | $ | 62,671 | ||||||||
Earnings per share - basic | $ | 0.82 | $ | 0.78 | $ | 1.98 | $ | 2.18 | ||||||||
Earnings per share - diluted | $ | 0.82 | $ | 0.78 | $ | 1.98 | $ | 2.17 | ||||||||
Weighted average basic shares outstanding | 28,736 | 28,828 | 28,812 | 28,807 | ||||||||||||
Weighted average diluted shares outstanding | 28,818 | 28,892 | 28,862 | 28,916 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(In thousands) | August 27, 2022 | August 28, 2021 | August 27, 2022 | August 28, 2021 | ||||||||||||||||||||||
Net earnings (loss) | $ | 37,389 | $ | (2,116) | $ | 60,120 | $ | 8,701 | ||||||||||||||||||
Other comprehensive (loss) earnings: | ||||||||||||||||||||||||||
Unrealized (loss) gain on marketable securities, net of $(28), $2, $(102) and $1 of tax (benefit) expense, respectively | (106) | 4 | (382) | 4 | ||||||||||||||||||||||
Unrealized (loss) gain on derivative instruments, net of $(152), $(203), $(1,469) and $8 of tax (benefit) expense, respectively | (500) | (666) | (4,816) | 26 | ||||||||||||||||||||||
Foreign currency translation adjustments | (2,777) | (4,300) | (1,045) | 1,580 | ||||||||||||||||||||||
Other comprehensive (loss) earnings | (3,383) | (4,962) | (6,243) | 1,610 | ||||||||||||||||||||||
Total comprehensive earnings (loss) | $ | 34,006 | $ | (7,078) | $ | 53,877 | $ | 10,311 |
Three Months Ended | Nine Months Ended | |||||||||||||||
(In thousands) | December 2, 2017 | November 26, 2016 | December 2, 2017 | November 26, 2016 | ||||||||||||
Net earnings | $ | 23,646 | $ | 22,552 | $ | 57,159 | $ | 62,671 | ||||||||
Other comprehensive earnings: | ||||||||||||||||
Unrealized loss on marketable securities, net of $78, $139, $28 and $105 of tax benefit, respectively | (143 | ) | (258 | ) | (51 | ) | (192 | ) | ||||||||
Foreign currency translation adjustments | (3,838 | ) | (1,783 | ) | 10,652 | 2,742 | ||||||||||
Other comprehensive earnings | (3,981 | ) | (2,041 | ) | 10,601 | 2,550 | ||||||||||
Total comprehensive earnings | $ | 19,665 | $ | 20,511 | $ | 67,760 | $ | 65,221 |
Six Months Ended | ||||||||||||||
(In thousands) | August 27, 2022 | August 28, 2021 | ||||||||||||
Operating Activities | ||||||||||||||
Net earnings | $ | 60,120 | $ | 8,701 | ||||||||||
Adjustments to reconcile net earnings to net cash (used) provided by operating activities: | ||||||||||||||
Depreciation and amortization | 21,448 | 25,808 | ||||||||||||
Share-based compensation | 3,394 | 3,261 | ||||||||||||
Deferred income taxes | 6,858 | (4,560) | ||||||||||||
Asset impairment | — | 15,403 | ||||||||||||
Gain on disposal of assets | (695) | (1,355) | ||||||||||||
Proceeds from New Markets Tax Credit transaction, net of deferred costs | 18,390 | — | ||||||||||||
Settlement of New Markets Tax Credit transaction | (19,523) | — | ||||||||||||
Noncash lease expense | 6,160 | 6,216 | ||||||||||||
Other, net | 2,653 | 578 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Receivables | (65,760) | 15,520 | ||||||||||||
Inventories | (17,636) | (3,607) | ||||||||||||
Costs and earnings on contracts in excess of billings | 840 | 3,212 | ||||||||||||
Accounts payable and accrued expenses | (8,226) | (10,895) | ||||||||||||
Billings in excess of costs and earnings on uncompleted contracts | 21,051 | (2,144) | ||||||||||||
Refundable and accrued income taxes | (20,486) | 1,981 | ||||||||||||
Operating lease liability | (6,684) | (6,240) | ||||||||||||
Other, net | (4,547) | 3,028 | ||||||||||||
Net cash (used) provided by operating activities | (2,643) | 54,907 | ||||||||||||
Investing Activities | ||||||||||||||
Capital expenditures | (9,255) | (10,121) | ||||||||||||
Proceeds from sales of property, plant and equipment | 4,122 | 1,292 | ||||||||||||
Other, net | 450 | 66 | ||||||||||||
Net cash used by investing activities | (4,683) | (8,763) | ||||||||||||
Financing Activities | ||||||||||||||
Borrowings on line of credit | 409,880 | — | ||||||||||||
Repayment on debt | (151,000) | (2,000) | ||||||||||||
Payments on line of credit | (171,000) | — | ||||||||||||
Payments on debt issue costs | (687) | — | ||||||||||||
Proceeds from exercise of stock options | — | 4,115 | ||||||||||||
Repurchase and retirement of common stock | (74,312) | (22,419) | ||||||||||||
Dividends paid | (9,602) | (10,060) | ||||||||||||
Other, net | (2,815) | (1,853) | ||||||||||||
Net cash provided (used) by financing activities | 464 | (32,217) | ||||||||||||
(Decrease) increase in cash, cash equivalents and restricted cash | (6,862) | 13,927 | ||||||||||||
Effect of exchange rates on cash | 28 | 617 | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 37,583 | 47,277 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 30,749 | $ | 61,821 | ||||||||||
Noncash Activity | ||||||||||||||
Capital expenditures in accounts payable | $ | 2,019 | $ | 374 |
Nine Months Ended | ||||||||
(In thousands) | December 2, 2017 | November 26, 2016 | ||||||
Operating Activities | ||||||||
Net earnings | $ | 57,159 | $ | 62,671 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 39,774 | 24,270 | ||||||
Share-based compensation | 4,645 | 4,403 | ||||||
Deferred income taxes | (3,339 | ) | (3,335 | ) | ||||
Gain on disposal of assets | (78 | ) | (287 | ) | ||||
Proceeds from New Markets Tax Credit transaction, net of deferred costs | — | 5,109 | ||||||
Other, net | (1,286 | ) | (1,281 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Receivables | (16,131 | ) | (15,235 | ) | ||||
Inventories | (1,348 | ) | (9,555 | ) | ||||
Accounts payable and accrued expenses | (27,449 | ) | 1,897 | |||||
Billings in excess of costs and earnings on uncompleted contracts | 9,869 | 4,896 | ||||||
Refundable and accrued income taxes | 7,108 | (1,073 | ) | |||||
Other, net | (2,685 | ) | 335 | |||||
Net cash provided by operating activities | 66,239 | 72,815 | ||||||
Investing Activities | ||||||||
Capital expenditures | (38,946 | ) | (44,548 | ) | ||||
Proceeds from sales of property, plant and equipment | 253 | 1,716 | ||||||
Acquisition of business, net of cash acquired | (184,826 | ) | — | |||||
Change in restricted cash | 7,834 | (14,884 | ) | |||||
Purchases of marketable securities | (10,154 | ) | (3,021 | ) | ||||
Sales/maturities of marketable securities | 9,288 | 3,703 | ||||||
Other, net | 941 | (2,168 | ) | |||||
Net cash used in investing activities | (215,610 | ) | (59,202 | ) | ||||
Financing Activities | ||||||||
Borrowings on line of credit | 314,700 | — | ||||||
Payments on line of credit | (150,700 | ) | — | |||||
Shares withheld for taxes, net of stock issued to employees | (1,561 | ) | (910 | ) | ||||
Repurchase and retirement of common stock | (10,833 | ) | (10,817 | ) | ||||
Dividends paid | (11,971 | ) | (10,687 | ) | ||||
Other | 2,039 | (408 | ) | |||||
Net cash provided by (used in) financing activities | 141,674 | (22,822 | ) | |||||
Decrease in cash and cash equivalents | (7,697 | ) | (9,209 | ) | ||||
Effect of exchange rates on cash | 1,079 | 338 | ||||||
Cash and cash equivalents at beginning of year | 19,463 | 60,470 | ||||||
Cash and cash equivalents at end of period | $ | 12,845 | $ | 51,599 | ||||
Noncash Activity | ||||||||
Capital expenditures in accounts payable | $ | 1,859 | $ | 6,683 | ||||
Deferred payments on acquisition of business | 7,500 | — |
(In thousands) | Common Shares Outstanding | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||
Balance at February 26, 2022 | 23,701 | $ | 7,901 | $ | 149,713 | $ | 254,825 | $ | (26,240) | $ | 386,199 | |||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 22,731 | — | 22,731 | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on marketable securities, net of $74 tax benefit | — | — | — | — | (276) | (276) | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on derivative instruments, net of $1,317 tax benefit | — | — | — | — | (4,316) | (4,316) | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 1,732 | 1,732 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock, net of cancellations | 100 | 33 | 23 | — | — | 56 | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 1,597 | — | — | 1,597 | ||||||||||||||||||||||||||||||||||||||||||||
Share repurchases | (1,571) | (524) | (10,350) | (63,438) | — | (74,312) | ||||||||||||||||||||||||||||||||||||||||||||
Other share retirements | (30) | (10) | (198) | (1,120) | — | (1,328) | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends | — | — | — | (4,793) | — | (4,793) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at May 28, 2022 | 22,200 | $ | 7,400 | $ | 140,785 | $ | 208,205 | $ | (29,100) | $ | 327,290 | |||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 37,389 | — | 37,389 | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on marketable securities, net of $28 tax benefit | — | — | — | — | (106) | (106) | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on derivative instruments, net of $152 tax benefit | — | — | — | — | (500) | (500) | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (2,777) | (2,777) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock, net of cancellations | (14) | (5) | 61 | — | — | 56 | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 1,797 | — | — | 1,797 | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 36 | 12 | (954) | — | — | (942) | ||||||||||||||||||||||||||||||||||||||||||||
Other share retirements | (13) | (4) | (114) | (540) | — | (658) | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends | — | — | — | (4,809) | — | (4,809) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at August 27, 2022 | 22,209 | $ | 7,403 | $ | 141,575 | $ | 240,245 | $ | (32,483) | $ | 356,740 | |||||||||||||||||||||||||||||||||||||||
(In thousands) | Common Shares Outstanding | Common Stock | Additional Paid-In Capital | Retained Earnings | Common Stock Held in Trust | Deferred Compensation Obligation | Accumulated Other Comprehensive (Loss) Income | ||||||||||||||||||||
Balance at March 4, 2017 | 28,680 | $ | 9,560 | $ | 150,111 | $ | 341,996 | $ | (875 | ) | $ | 875 | $ | (31,090 | ) | ||||||||||||
Net earnings | — | — | — | 57,159 | — | — | — | ||||||||||||||||||||
Unrealized loss on marketable securities, net of $28 tax benefit | — | — | — | — | — | — | (51 | ) | |||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | 10,652 | ||||||||||||||||||||
Issuance of stock, net of cancellations | 106 | 36 | 147 | — | (33 | ) | 33 | — | |||||||||||||||||||
Share-based compensation | — | — | 4,645 | — | — | — | — | ||||||||||||||||||||
Exercise of stock options | 100 | 33 | 801 | — | — | — | — | ||||||||||||||||||||
Share repurchases | (200 | ) | (67 | ) | (1,091 | ) | (9,675 | ) | — | — | — | ||||||||||||||||
Other share retirements | (45 | ) | (15 | ) | (256 | ) | (2,229 | ) | — | — | — | ||||||||||||||||
Cash dividends | — | — | — | (11,971 | ) | — | — | — | |||||||||||||||||||
Balance at December 2, 2017 | 28,641 | $ | 9,547 | $ | 154,357 | $ | 375,280 | $ | (908 | ) | $ | 908 | $ | (20,489 | ) | ||||||||||||
Balance at February 27, 2016 | 28,684 | $ | 9,561 | $ | 145,528 | $ | 282,477 | $ | (837 | ) | $ | 837 | $ | (31,371 | ) | ||||||||||||
Net earnings | — | — | — | 62,671 | — | — | — | ||||||||||||||||||||
Unrealized loss on marketable securities, net of $105 tax benefit | — | — | — | — | — | — | (192 | ) | |||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | 2,742 | ||||||||||||||||||||
Issuance of stock, net of cancellations | 139 | 46 | 94 | — | (26 | ) | 26 | — | |||||||||||||||||||
Share-based compensation | — | — | 4,403 | — | — | — | — | ||||||||||||||||||||
Tax deficit associated with stock plans | — | — | (1,229 | ) | — | — | — | — | |||||||||||||||||||
Exercise of stock options | 125 | 42 | 1,211 | — | — | — | — | ||||||||||||||||||||
Share repurchases | (250 | ) | (83 | ) | (1,357 | ) | (9,376 | ) | — | — | — | ||||||||||||||||
Other share retirements | (52 | ) | (17 | ) | (271 | ) | (2,015 | ) | — | — | — | ||||||||||||||||
Cash dividends | — | — | — | (10,687 | ) | — | — | — | |||||||||||||||||||
Balance at November 26, 2016 | 28,646 | $ | 9,549 | $ | 148,379 | $ | 323,070 | $ | (863 | ) | $ | 863 | $ | (28,821 | ) |
(In thousands) | Common Shares Outstanding | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||
Balance at February 27, 2021 | 25,714 | $ | 8,571 | $ | 154,958 | $ | 357,243 | $ | (28,027) | $ | 492,745 | |||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 10,817 | — | 10,817 | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on marketable securities, net of $0 tax expense | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on derivative instruments, net of $211tax expense | — | — | — | — | 692 | 692 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 5,880 | 5,880 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock, net of cancellations | 90 | 30 | (7) | — | — | 23 | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 1,674 | — | — | 1,674 | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 179 | 60 | 4,055 | — | — | 4,115 | ||||||||||||||||||||||||||||||||||||||||||||
Share repurchases | (357) | (119) | (2,218) | (10,288) | — | (12,625) | ||||||||||||||||||||||||||||||||||||||||||||
Other share retirements | (20) | (7) | (121) | (607) | — | (735) | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends | — | — | — | (5,035) | — | (5,035) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at May 29, 2021 | 25,606 | $ | 8,535 | $ | 158,341 | $ | 352,130 | $ | (21,455) | $ | 497,551 | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (2,116) | — | (2,116) | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on marketable securities, net of $2 tax expense | — | — | — | — | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on derivative instruments, net of $203 tax benefit | — | — | — | — | (666) | (666) | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (4,300) | (4,300) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock, net of cancellations | 67 | 22 | — | — | — | 22 | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 1,587 | — | — | 1,587 | ||||||||||||||||||||||||||||||||||||||||||||
Share repurchases | (249) | (83) | (1,616) | (8,095) | — | (9,794) | ||||||||||||||||||||||||||||||||||||||||||||
Other share retirements | (30) | (9) | (197) | (496) | — | (702) | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends | — | — | — | (5,025) | — | (5,025) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at August 28, 2021 | 25,394 | $ | 8,465 | $ | 158,115 | $ | 336,398 | $ | (26,417) | $ | 476,561 | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(In thousands) | August 27, 2022 | August 28, 2021 | August 27, 2022 | August 28, 2021 | ||||||||||||||||||||||
Recognized at shipment | $ | 174,693 | $ | 137,783 | $ | 335,857 | $ | 278,066 | ||||||||||||||||||
Recognized over time | 197,416 | 188,014 | 392,887 | 373,737 | ||||||||||||||||||||||
Total | $ | 372,109 | $ | 325,797 | $ | 728,744 | $ | 651,803 |
(In thousands) | August 27, 2022 | February 26, 2022 | ||||||||||||
Trade accounts | $ | 146,035 | $ | 129,085 | ||||||||||
Construction contracts | 65,482 | 12,857 | ||||||||||||
Contract retainage | 22,267 | 28,782 | ||||||||||||
Total receivables | 233,784 | 170,724 | ||||||||||||
Less: allowance for credit losses | 1,931 | 2,132 | ||||||||||||
Receivables, net | $ | 231,853 | $ | 168,592 |
(In thousands) | August 27, 2022 | February 26, 2022 | ||||||||||||
Beginning balance | $ | 2,132 | $ | 1,947 | ||||||||||
Additions charged to costs and expenses | 45 | 729 | ||||||||||||
Deductions from allowance, net of recoveries | (244) | (514) | ||||||||||||
Other changes (1) | (2) | (30) | ||||||||||||
Ending balance | $ | 1,931 | $ | 2,132 | ||||||||||
(1) Result of foreign currency effects |
(In thousands) | August 27, 2022 | February 26, 2022 | ||||||||||||
Contract assets | $ | 51,789 | $ | 59,185 | ||||||||||
Contract liabilities | 32,022 | 11,373 | ||||||||||||
Other contract-related disclosures | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
(In thousands) | August 27, 2022 | August 28, 2021 | August 27, 2022 | August 28, 2021 | ||||||||||||||||||||||
Revenue recognized related to contract liabilities from prior year-end | $ | 4,978 | $ | 2,479 | $ | 33,157 | $ | 16,579 | ||||||||||||||||||
Revenue recognized related to prior satisfaction of performance obligations | 4,770 | 5,354 | 4,946 | 7,518 |
Stock Options and SARs | Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||
Outstanding at March 4, 2017 | 229,901 | $ | 9.90 | ||||||||||
Awards exercised | (100,000 | ) | 8.34 | ||||||||||
Outstanding and exercisable at December 2, 2017 | 129,901 | $ | 11.10 | 3.0 Years | $ | 4,878,738 |
Nonvested Shares and Units | Number of Shares and Units | Weighted Average Grant Date Fair Value | |||||
Nonvested at March 4, 2017 | 279,204 | $ | 44.79 | ||||
Granted | 124,416 | 55.40 | |||||
Vested | (130,093 | ) | 45.31 | ||||
Canceled | (7,000 | ) | 55.89 | ||||
Nonvested at December 2, 2017 | 266,527 | $ | 49.20 |
August 27, 2022 | ||||||||
Within one year | $ | 501,856 | ||||||
Within two years | 293,561 | |||||||
Beyond two years | 117,867 | |||||||
Total | $ | 913,284 |
(In thousands) | August 27, 2022 | February 26, 2022 | ||||||||||||
Raw materials | $ | 51,284 | $ | 42,541 | ||||||||||
Work-in-process | 17,121 | 18,144 | ||||||||||||
Finished goods | 29,641 | 19,809 | ||||||||||||
Total inventories | $ | 98,046 | $ | 80,494 |
(In thousands) | August 27, 2022 | February 26, 2022 | ||||||||||||
Warranties | $ | 13,482 | $ | 11,786 | ||||||||||
Income and other taxes | 6,519 | 15,770 | ||||||||||||
Accrued self-insurance reserves | 12,471 | 8,796 | ||||||||||||
Accrued freight | 2,410 | 2,078 | ||||||||||||
Deferred revenue | 2,405 | 2,714 | ||||||||||||
Other | 26,773 | 26,318 | ||||||||||||
Total other current liabilities | $ | 64,060 | $ | 67,462 |
Three Months Ended | Nine Months Ended | ||||||||||
(In thousands) | December 2, 2017 | November 26, 2016 | December 2, 2017 | November 26, 2016 | |||||||
Basic earnings per share – weighted average common shares outstanding | 28,736 | 28,828 | 28,812 | 28,807 | |||||||
Weighted average effect of nonvested share grants and assumed exercise of stock options | 82 | 64 | 50 | 109 | |||||||
Diluted earnings per share – weighted average common shares and potential common shares outstanding | 28,818 | 28,892 | 28,862 | 28,916 |
(In thousands) | August 27, 2022 | February 26, 2022 | ||||||||||||
Deferred benefit from New Markets Tax Credit transactions | $ | 9,250 | $ | 9,165 | ||||||||||
Retirement plan obligations | 6,857 | 7,041 | ||||||||||||
Deferred compensation plan | 7,290 | 9,483 | ||||||||||||
Deferred tax liabilities | 7,611 | 2,296 | ||||||||||||
Other | 19,346 | 16,598 | ||||||||||||
Total other non-current liabilities | $ | 50,354 | $ | 44,583 |
(In thousands) | December 2, 2017 | March 4, 2017 | |||||
Raw materials | $ | 35,565 | $ | 22,761 | |||
Work-in-process | 24,919 | 16,154 | |||||
Finished goods | 34,951 | 29,372 | |||||
Costs and earnings in excess of billings on uncompleted contracts | 2,627 | 5,122 | |||||
Total inventories | $ | 98,062 | $ | 73,409 |
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||
December 2, 2017 | |||||||||||
Municipal bonds | 10,334 | 17 | (103 | ) | 10,248 | ||||||
March 4, 2017 | |||||||||||
Municipal bonds | 9,595 | 91 | (97 | ) | 9,589 |
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||
August 27, 2022 | $ | 11,344 | $ | 3 | $ | 565 | $ | 10,782 | ||||||||||||||||||
February 26, 2022 | 11,862 | 45 | 123 | 11,784 |
(In thousands) | Amortized Cost | Estimated Fair Value | ||||||||||||
Due within one year | $ | 1,430 | $ | 1,419 | ||||||||||
Due after one year through five years | 9,578 | 9,069 | ||||||||||||
Due after five years through 10 years | 336 | 294 | ||||||||||||
Total | $ | 11,344 | $ | 10,782 |
(In thousands) | Amortized Cost | Estimated Fair Value | |||||
Due within one year | $ | 482 | $ | 482 | |||
Due after one year through five years | 4,418 | 4,385 | |||||
Due after five years through 10 years | 4,627 | 4,578 | |||||
Due after 10 years through 15 years | 141 | 141 | |||||
Due beyond 15 years | 666 | 662 | |||||
Total | $ | 10,334 | $ | 10,248 |
(In thousands) | Quoted Prices in Active Markets (Level 1) | Other Observable Inputs (Level 2) | Total Fair Value | |||||||||||||||||
August 27, 2022 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Money market funds | $ | 15,034 | $ | — | $ | 15,034 | ||||||||||||||
Municipal and corporate bonds | — | 10,782 | 10,782 | |||||||||||||||||
Cash surrender value of life insurance | — | 16,625 | 16,625 | |||||||||||||||||
Interest rate swap contract | — | 1,584 | 1,584 | |||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deferred compensation | — | 10,299 | 10,299 | |||||||||||||||||
Foreign currency forward/option contract | — | 82 | 82 | |||||||||||||||||
Aluminum hedging contract | — | 3,515 | 3,515 | |||||||||||||||||
February 26, 2022 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Money market funds | $ | 19,288 | $ | — | $ | 19,288 | ||||||||||||||
Municipal and corporate bonds | — | 11,784 | 11,784 | |||||||||||||||||
Cash surrender value of life insurance | — | 17,831 | 17,831 | |||||||||||||||||
Aluminum hedging contract | — | 2,133 | 2,133 | |||||||||||||||||
Interest rate swap contract | — | 718 | 718 | |||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deferred compensation | — | 12,491 | 12,491 | |||||||||||||||||
Foreign currency forward/option contract | — | 161 | 161 | |||||||||||||||||
(In thousands) | Quoted Prices in Active Markets (Level 1) | Other Observable Inputs (Level 2) | Total Fair Value | ||||||||
December 2, 2017 | |||||||||||
Cash equivalents | |||||||||||
Money market funds | $ | 1,696 | $ | — | $ | 1,696 | |||||
Commercial paper | — | — | — | ||||||||
Total cash equivalents | 1,696 | — | 1,696 | ||||||||
Short-term securities | |||||||||||
Municipal bonds | — | 482 | 482 | ||||||||
Long-term securities | |||||||||||
Municipal bonds | — | 9,766 | 9,766 | ||||||||
Total assets at fair value | $ | 1,696 | $ | 10,248 | $ | 11,944 | |||||
March 4, 2017 | |||||||||||
Cash equivalents | |||||||||||
Money market funds | $ | 4,423 | $ | — | $ | 4,423 | |||||
Commercial paper | — | 5,500 | 5,500 | ||||||||
Total cash equivalents | 4,423 | 5,500 | 9,923 | ||||||||
Short-term securities | |||||||||||
Municipal bonds | — | 548 | 548 | ||||||||
Long-term securities | |||||||||||
Municipal bonds | — | 9,041 | 9,041 | ||||||||
Total assets at fair value | $ | 4,423 | $ | 15,089 | $ | 19,512 |
(In thousands) | |||
Net working capital | $ | 34,156 | |
Property, plant and equipment | 43,815 | ||
Goodwill | 57,460 | ||
Other intangible assets | 71,500 | ||
Less: Long-term liabilities acquired, net | 14,605 | ||
Net assets acquired | $ | 192,326 |
(In thousands) | Estimated fair value | Estimated useful life (in years) | ||||
Customer relationships | $ | 34,800 | 16 | |||
Tradename | 32,400 | Indefinite | ||||
Backlog | 4,300 | 1.5 | ||||
$ | 71,500 |
Three Months Ended | Nine Months Ended | |||||||||||||||
In thousands, except per share data | December 2, 2017 | November 26, 2016 | December 2, 2017 | November 26, 2016 | ||||||||||||
Net sales | $ | 356,506 | $ | 368,387 | $ | 1,044,465 | $ | 1,083,352 | ||||||||
Net earnings | 24,453 | 25,971 | 59,564 | 72,171 | ||||||||||||
Earnings per share | ||||||||||||||||
Basic | 0.85 | 0.90 | 2.07 | 2.50 | ||||||||||||
Diluted | 0.85 | 0.90 | 2.06 | 2.50 |
(In thousands) | Architectural Framing Systems | Architectural Services | Architectural Glass | Large-Scale Optical | Total | |||||||||||||||||||||||||||
Balance at February 27, 2021 | $ | 93,099 | $ | 1,120 | $ | 25,322 | $ | 10,557 | $ | 130,098 | ||||||||||||||||||||||
Foreign currency translation | 82 | — | (78) | — | 4 | |||||||||||||||||||||||||||
Balance at February 26, 2022 | 93,181 | 1,120 | 25,244 | 10,557 | 130,102 | |||||||||||||||||||||||||||
Reallocation among reporting units (1) | (2,048) | 2,048 | — | — | — | |||||||||||||||||||||||||||
Foreign currency translation | (644) | (53) | 71 | — | (626) | |||||||||||||||||||||||||||
Balance at August 27, 2022 | $ | 90,489 | $ | 3,115 | $ | 25,315 | $ | 10,557 | $ | 129,476 | ||||||||||||||||||||||
(1) Represents the reallocation of goodwill as a result of transitioning Sotawall from the Architectural Framing Systems segment to the Architectural Services segment as of the start of the first quarter of fiscal 2023. |
(In thousands) | Architectural Framing Systems | Architectural Glass | Architectural Services | Large-Scale Optical | Total | ||||||||||||||
Balance at February 27, 2016 | $ | 36,680 | $ | 25,639 | $ | 1,120 | $ | 10,557 | $ | 73,996 | |||||||||
Goodwill acquired | 27,444 | — | — | — | 27,444 | ||||||||||||||
Foreign currency translation | (423 | ) | 317 | — | — | (106 | ) | ||||||||||||
Balance at March 4, 2017 | 63,701 | 25,956 | 1,120 | 10,557 | 101,334 | ||||||||||||||
Goodwill acquired, net | 49,256 | — | — | — | 49,256 | ||||||||||||||
Foreign currency translation | 2,241 | 50 | — | — | 2,291 | ||||||||||||||
Balance at December 2, 2017 | 115,198 | $ | 26,006 | $ | 1,120 | $ | 10,557 | $ | 152,881 |
(In thousands) | Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation | Net | (In thousands) | Gross Carrying Amount | Accumulated Amortization | Impairment Expense | Foreign Currency Translation | Net | ||||||||||||||||||||||||||||||||||||||
December 2, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
August 27, 2022 | August 27, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Definite-lived intangible assets: | Definite-lived intangible assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Debt issue costs | $ | 4,516 | $ | (3,169 | ) | $ | — | $ | 1,347 | |||||||||||||||||||||||||||||||||||||||
Non-compete agreements | 6,286 | (6,122 | ) | 10 | 174 | |||||||||||||||||||||||||||||||||||||||||||
Customer relationships | 120,273 | (18,753 | ) | 3,788 | 105,308 | Customer relationships | $ | 89,495 | $ | (48,556) | $ | — | $ | (997) | $ | 39,942 | ||||||||||||||||||||||||||||||||
Trademarks and other intangibles | 30,250 | (13,616 | ) | 1,055 | 17,689 | |||||||||||||||||||||||||||||||||||||||||||
Total definite-lived intangible assets | $ | 161,325 | $ | (41,660 | ) | $ | 4,853 | $ | 124,518 | |||||||||||||||||||||||||||||||||||||||
Other intangibles | Other intangibles | 39,347 | (35,572) | — | (361) | 3,414 | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | 128,842 | (84,128) | — | (1,358) | 43,356 | ||||||||||||||||||||||||||||||||||||||||||
Indefinite-lived intangible assets: | Indefinite-lived intangible assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Trademarks | 48,461 | — | 877 | 49,338 | Trademarks | 27,129 | — | — | (108) | 27,021 | ||||||||||||||||||||||||||||||||||||||
Total intangible assets | $ | 209,786 | $ | (41,660 | ) | $ | 5,730 | $ | 173,856 | Total intangible assets | $ | 155,971 | $ | (84,128) | $ | — | $ | (1,466) | $ | 70,377 | ||||||||||||||||||||||||||||
March 4, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
February 26, 2022 | February 26, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Definite-lived intangible assets: | Definite-lived intangible assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Debt issue costs | $ | 4,066 | $ | (2,960 | ) | $ | — | $ | 1,106 | |||||||||||||||||||||||||||||||||||||||
Non-compete agreements | 6,286 | (6,025 | ) | (65 | ) | 196 | ||||||||||||||||||||||||||||||||||||||||||
Customer relationships | 82,479 | (14,013 | ) | (145 | ) | 68,321 | Customer relationships | $ | 122,961 | $ | (47,226) | $ | (33,608) | $ | 141 | $ | 42,268 | |||||||||||||||||||||||||||||||
Trademarks and other intangibles | 25,950 | (4,917 | ) | (31 | ) | 21,002 | ||||||||||||||||||||||||||||||||||||||||||
Total definite-lived intangible assets | $ | 118,781 | $ | (27,915 | ) | $ | (241 | ) | $ | 90,625 | ||||||||||||||||||||||||||||||||||||||
Other intangibles | Other intangibles | 41,838 | (35,613) | (3,127) | (14) | 3,084 | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | 164,799 | (82,839) | (36,735) | 127 | 45,352 | ||||||||||||||||||||||||||||||||||||||||||
Indefinite-lived intangible assets: | Indefinite-lived intangible assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Trademarks | 16,022 | — | 39 | 16,061 | Trademarks | 39,832 | — | (12,738) | 35 | 27,129 | ||||||||||||||||||||||||||||||||||||||
Total intangible assets | $ | 134,803 | $ | (27,915 | ) | $ | (202 | ) | $ | 106,686 | Total intangible assets | $ | 204,631 | $ | (82,839) | $ | (49,473) | $ | 162 | $ | 72,481 |
(In thousands) | Remainder of 2023 | 2024 | 2025 | 2026 | 2027 | |||||||||||||||||||||||||||
Estimated amortization expense | $ | 2,258 | $ | 4,362 | $ | 4,332 | $ | 4,315 | $ | 4,313 |
(In thousands) | Remainder of Fiscal 2018 | Fiscal 2019 | Fiscal 2020 | Fiscal 2021 | Fiscal 2022 | ||||||||||||||
Estimated amortization expense | $ | 4,922 | $ | 13,235 | $ | 8,219 | $ | 8,213 | $ | 7,904 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(In thousands) | August 27, 2022 | August 28, 2021 | August 27, 2022 | August 28, 2021 | ||||||||||||||||||||||
Operating lease cost | $ | 2,954 | $ | 3,518 | $ | 6,005 | $ | 6,899 | ||||||||||||||||||
Short-term lease cost | 346 | 240 | 660 | 464 | ||||||||||||||||||||||
Variable lease cost | 857 | 734 | 1,763 | 1,457 | ||||||||||||||||||||||
Total lease cost | $ | 4,157 | $ | 4,492 | $ | 8,428 | $ | 8,820 |
Six Months Ended | ||||||||||||||
(In thousands except weighted-average data) | August 27, 2022 | August 28, 2021 | ||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 7,069 | $ | 7,186 | ||||||||||
Lease assets obtained in exchange for new operating lease liabilities | $ | 701 | $ | 1,281 | ||||||||||
Weighted-average remaining lease term - operating leases | 5.0 years | 5.7 years | ||||||||||||
Weighted-average discount rate - operating leases | 2.86 | % | 2.95 | % |
August 27, 2022 |
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands) | December 2, 2017 | November 26, 2016 | December 2, 2017 | November 26, 2016 | |||||||||||
Interest cost | $ | 133 | $ | 139 | $ | 399 | $ | 417 | |||||||
Expected return on assets | (10 | ) | (10 | ) | (30 | ) | (30 | ) | |||||||
Amortization of unrecognized net loss | 57 | 56 | 171 | 168 | |||||||||||
Net periodic benefit cost | $ | 180 | $ | 185 | $ | 540 | $ | 555 |
Remainder of Fiscal 2023 | $ | 6,676 | ||||||
11,426 | ||||||||
Fiscal 2025 | 10,018 | |||||||
Fiscal 2026 | 7,975 | |||||||
Fiscal 2027 | 6,479 | |||||||
Fiscal 2028 | 2,973 | |||||||
Thereafter | 3,786 | |||||||
Total lease payments | 49,333 | |||||||
Less: Amounts representing interest | 3,210 | |||||||
Present value of lease liabilities | $ | 46,123 |
(In thousands) | December 2, 2017 | March 4, 2017 | |||||
Deferred benefit from New Market Tax Credit transactions | $ | 16,708 | $ | 16,708 | |||
Retirement plan obligations | 9,635 | 9,635 | |||||
Deferred compensation plan | 10,104 | 7,463 | |||||
Other | 23,034 | 11,981 | |||||
Total other non-current liabilities | $ | 59,481 | $ | 45,787 |
(In thousands) | Remainder of Fiscal 2018 | Fiscal 2019 | Fiscal 2020 | Fiscal 2021 | Fiscal 2022 | Thereafter | Total | ||||||||||||||||||||
Total minimum payments | $ | 3,615 | $ | 13,546 | $ | 11,493 | $ | 8,477 | $ | 7,626 | $ | 21,232 | $ | 65,989 |
Six Months Ended | ||||||||||||||
(In thousands) | August 27, 2022 | August 28, 2021 | ||||||||||||
Balance at beginning of period | $ | 13,923 | $ | 14,999 | ||||||||||
Additional accruals | 6,918 | 4,400 | ||||||||||||
Claims paid | (4,201) | (5,871) | ||||||||||||
Balance at end of period | $ | 16,640 | $ | 13,528 |
Nine Months Ended | |||||||
(In thousands) | December 2, 2017 | November 26, 2016 | |||||
Balance at beginning of period | $ | 21,933 | $ | 16,340 | |||
Additional accruals | 3,443 | 6,082 | |||||
Claims paid | (8,254 | ) | (4,878 | ) | |||
Acquired reserves | 5,571 | — | |||||
Balance at end of period | $ | 22,693 | $ | 17,544 |
Inception date | Termination date | Deferred Benefit | Deferred costs | Net benefit | ||||||||||||||||||||||
June 2016 | June 2023 | $ | 6.0 | $ | 1.2 | $ | 4.8 | |||||||||||||||||||
September 2018 | September 2025 | 3.2 | 1.0 | 2.2 | ||||||||||||||||||||||
May 2022 | August 2025 | 6.1 | 1.6 | 4.5 | ||||||||||||||||||||||
Total | $ | 15.3 | $ | 3.8 | $ | 11.5 |
Stock Options and SARs | Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||||||||||||||
Outstanding at beginning of year | 370,800 | $ | 23.04 | |||||||||||||||||||||||
Awards exercised | (145,060) | 23.04 | ||||||||||||||||||||||||
Awards canceled/expired | (67,740) | 23.04 | ||||||||||||||||||||||||
Outstanding at end of period | 158,000 | $ | 23.04 | 0.9 years | $ | 2,000,280 | ||||||||||||||||||||
Vested or expected to vest at end of period | 158,000 | $ | 23.04 | 0.9 years | $ | 2,000,280 | ||||||||||||||||||||
Nonvested shares and units | Number of Shares and Units | Weighted Average Grant Date Fair Value | ||||||||||||
Nonvested at February 26, 2022 (1) | 488,944 | $ | 30.14 | |||||||||||
Granted (2) | 174,393 | 46.45 | ||||||||||||
Vested | (134,499) | 27.94 | ||||||||||||
Canceled (3) | (44,232) | 36.00 | ||||||||||||
Nonvested at August 27, 2022(4) | 484,606 | $ | 36.09 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(In thousands) | August 27, 2022 | August 28, 2021 | August 27, 2022 | August 28, 2021 | ||||||||||||||||||||||
Basic earnings per share – weighted average common shares outstanding | 21,860 | 25,140 | 22,129 | 25,271 | ||||||||||||||||||||||
Weighted average effect of nonvested share grants and assumed exercise of stock options | 385 | — | 434 | 366 | ||||||||||||||||||||||
Diluted earnings per share – weighted average common shares and potential common shares outstanding | 22,245 | 25,140 | 22,563 | 25,637 | ||||||||||||||||||||||
Stock awards excluded from the calculation of earnings per share because the effect was anti-dilutive (award price greater than average market price of the shares) | 120 | 4 | 120 | 8 |
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands) | December 2, 2017 | November 26, 2016 | December 2, 2017 | November 26, 2016 | |||||||||||
Net sales from operations | |||||||||||||||
Architectural Framing Systems | $ | 194,157 | $ | 90,850 | $ | 493,672 | $ | 264,212 | |||||||
Architectural Glass | 96,940 | 107,002 | 292,026 | 299,567 | |||||||||||
Architectural Services | 49,077 | 64,380 | 146,056 | 204,934 | |||||||||||
Large-Scale Optical | 26,003 | 22,084 | 64,897 | 63,382 | |||||||||||
Intersegment eliminations | (9,671 | ) | (10,244 | ) | (23,930 | ) | (31,688 | ) | |||||||
Net sales | $ | 356,506 | $ | 274,072 | $ | 972,721 | $ | 800,407 | |||||||
Operating income (loss) from operations | |||||||||||||||
Architectural Framing Systems | $ | 18,452 | $ | 11,838 | $ | 46,958 | $ | 35,070 | |||||||
Architectural Glass | 9,107 | 11,708 | 28,687 | 30,855 | |||||||||||
Architectural Services | 2,547 | 4,918 | 4,102 | 14,336 | |||||||||||
Large-Scale Optical | 6,724 | 5,910 | 15,022 | 15,613 | |||||||||||
Corporate and other | (2,295 | ) | (1,115 | ) | (8,354 | ) | (3,317 | ) | |||||||
Operating income | $ | 34,535 | $ | 33,259 | $ | 86,415 | $ | 92,557 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(In thousands) | August 27, 2022 | August 28, 2021 | August 27, 2022 | August 28, 2021 | ||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||
Architectural Framing Systems | $ | 172,867 | $ | 136,973 | $ | 336,159 | $ | 273,741 | ||||||||||||||||||
Architectural Services | 106,732 | 96,370 | 210,120 | 187,102 | ||||||||||||||||||||||
Architectural Glass | 77,352 | 79,373 | 153,617 | 162,404 | ||||||||||||||||||||||
Large-Scale Optical | 25,166 | 23,543 | 50,328 | 47,771 | ||||||||||||||||||||||
Intersegment eliminations | (10,008) | (10,462) | (21,480) | (19,215) | ||||||||||||||||||||||
Net sales | $ | 372,109 | $ | 325,797 | $ | 728,744 | $ | 651,803 | ||||||||||||||||||
Operating income (loss) | ||||||||||||||||||||||||||
Architectural Framing Systems | $ | 20,512 | $ | 8,381 | $ | 44,177 | $ | 16,752 | ||||||||||||||||||
Architectural Services | 5,490 | 7,139 | 8,417 | 11,365 | ||||||||||||||||||||||
Architectural Glass | 6,457 | (16,995) | 11,626 | (14,867) | ||||||||||||||||||||||
Large-Scale Optical | 5,991 | 5,483 | 12,489 | 11,330 | ||||||||||||||||||||||
Corporate and other | (6,378) | (7,076) | (11,421) | (11,607) | ||||||||||||||||||||||
Operating income (loss) | $ | 32,072 | $ | (3,068) | $ | 65,288 | $ | 12,973 | ||||||||||||||||||
(In thousands) | Architectural Framing | Architectural Glass | Corporate & Other | Total | ||||||||||||||||||||||
Balance at February 27, 2021 | $ | 2,872 | $ | 230 | $ | 161 | $ | 3,263 | ||||||||||||||||||
Restructuring expense | 2,000 | 1,036 | 1,039 | 4,075 | ||||||||||||||||||||||
Payments | (3,567) | (529) | (972) | (5,068) | ||||||||||||||||||||||
Other adjustments | (865) | — | — | (865) | ||||||||||||||||||||||
Balance at February 26, 2022 | 440 | 737 | 228 | 1,405 | ||||||||||||||||||||||
Restructuring expense | — | 62 | — | 62 | ||||||||||||||||||||||
Payments | (171) | (531) | (136) | (838) | ||||||||||||||||||||||
Other adjustments | (151) | (17) | — | (168) | ||||||||||||||||||||||
Balance at August 27, 2022 | $ | 118 | $ | 251 | $ | 92 | $ | 461 |
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations Forward-looking statements This Quarterly Report on Form 10-Q, including the section, Management’s Discussion and Analysis of Financial Condition and Results of Operations, |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
August 27, 2022 | August 28, 2021 | August 27, 2022 | August 28, 2021 | ||||||||||||||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
Cost of sales | 77.2 | 85.3 | 76.6 | 82.2 | |||||||||||||||||||
Gross profit | 22.8 | 14.7 | 23.4 | 17.8 | |||||||||||||||||||
Selling, general and administrative expenses | 14.2 | 15.7 | 14.4 | 15.8 | |||||||||||||||||||
Operating income (loss) | 8.6 | (0.9) | 9.0 | 2.0 | |||||||||||||||||||
Interest expense, net | 0.5 | 0.3 | 0.4 | 0.4 | |||||||||||||||||||
Other expense (income), net | — | — | 0.2 | — | |||||||||||||||||||
Earnings (loss) before income taxes | 8.1 | (1.2) | 8.4 | 1.6 | |||||||||||||||||||
Income tax (benefit) expense | (1.9) | (0.6) | 0.1 | 0.3 | |||||||||||||||||||
Net earnings (loss) | 10.0 | % | (0.6) | % | 8.2 | % | 1.3 | % | |||||||||||||||
Effective tax rate | (23.8) | % | 47.6 | % | 1.3 | % | 16.8 | % |
Three Months Ended | Nine Months Ended | ||||||||||
(Percent of net sales) | December 2, 2017 | November 26, 2016 | December 2, 2017 | November 26, 2016 | |||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
Cost of sales | 74.3 | 73.4 | 74.5 | 73.8 | |||||||
Gross profit | 25.7 | 26.6 | 25.5 | 26.2 | |||||||
Selling, general and administrative expenses | 16.0 | 14.5 | 16.6 | 14.7 | |||||||
Operating income | 9.7 | 12.1 | 8.9 | 11.5 | |||||||
Interest and other (expense) income, net | (0.3 | ) | — | (0.3 | ) | — | |||||
Earnings before income taxes | 9.4 | 12.1 | 8.6 | 11.5 | |||||||
Income tax expense | 2.7 | 3.9 | 2.7 | 3.8 | |||||||
Net earnings | 6.6 | % | 8.2 | % | 5.9 | % | 7.7 | % | |||
Effective tax rate | 29.1 | % | 32.1 | % | 31.7 | % | 32.8 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
(In thousands) | August 27, 2022 | August 28, 2021 | % Change | August 27, 2022 | August 28, 2021 | % Change | ||||||||||||||||||||||||||||||||
Net sales | $ | 172,867 | $ | 136,973 | 26.2 | % | $ | 336,159 | $ | 273,741 | 22.8 | % | ||||||||||||||||||||||||||
Operating income | 20,512 | 8,381 | 144.7 | % | 44,177 | 16,752 | 163.7 | % | ||||||||||||||||||||||||||||||
Operating margin | 11.9 | % | 6.1 | % | 13.1 | % | 6.1 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
(In thousands) | December 2, 2017 | November 26, 2016 | % Change | December 2, 2017 | November 26, 2016 | % Change | |||||||||||||
Net sales | $ | 194,157 | $ | 90,850 | 113.7 | % | 493,672 | 264,212 | 86.8 | % | |||||||||
Operating income | 18,452 | 11,838 | 55.9 | % | 46,958 | 35,070 | 33.9 | % | |||||||||||
Operating margin | 9.5 | % | 13.0 | % | 9.5 | % | 13.3 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | December 2, 2017 | November 26, 2016 | % Change | December 2, 2017 | November 26, 2016 | % Change | |||||||||||||||
Net sales | $ | 96,940 | $ | 107,002 | (9.4 | )% | $ | 292,026 | $ | 299,567 | (2.5 | )% | |||||||||
Operating income | 9,107 | 11,708 | (22.2 | )% | 28,687 | 30,855 | (7.0 | )% | |||||||||||||
Operating margin | 9.4 | % | 10.9 | % | 9.8 | % | 10.3 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
(In thousands) | August 27, 2022 | August 28, 2021 | % Change | August 27, 2022 | August 28, 2021 | % Change | ||||||||||||||||||||||||||||||||
Net sales | $ | 106,732 | $ | 96,370 | 10.8 | % | $ | 210,120 | $ | 187,102 | 12.3 | % | ||||||||||||||||||||||||||
Operating income | 5,490 | 7,139 | (23.1) | % | 8,417 | 11,365 | (25.9) | % | ||||||||||||||||||||||||||||||
Operating margin | 5.1 | % | 7.4 | % | 4.0 | % | 6.1 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
(In thousands) | August 27, 2022 | August 28, 2021 | % Change | August 27, 2022 | August 28, 2021 | % Change | ||||||||||||||||||||||||||||||||
Net sales | $ | 77,352 | $ | 79,373 | (2.5) | % | $ | 153,617 | $ | 162,404 | (5.4) | % | ||||||||||||||||||||||||||
Operating income (loss) | 6,457 | (16,995) | 138.0 | % | 11,626 | (14,867) | 178.2 | % | ||||||||||||||||||||||||||||||
Operating margin | 8.3 | % | (21.4) | % | 7.6 | % | (9.2) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | December 2, 2017 | November 26, 2016 | % Change | December 2, 2017 | November 26, 2016 | % Change | |||||||||||||||
Net sales | $ | 49,077 | $ | 64,380 | (23.8 | )% | $ | 146,056 | $ | 204,934 | (28.7 | )% | |||||||||
Operating income | 2,547 | 4,918 | (48.2 | )% | 4,102 | 14,336 | (71.4 | )% | |||||||||||||
Operating margin | 5.2 | % | 7.6 | % | 2.8 | % | 7.0 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
(In thousands) | August 27, 2022 | August 28, 2021 | % Change | August 27, 2022 | August 28, 2021 | % Change | ||||||||||||||||||||||||||||||||
Net sales | $ | 25,166 | $ | 23,543 | 6.9 | % | $ | 50,328 | $ | 47,771 | 5.4 | % | ||||||||||||||||||||||||||
Operating income | 5,991 | 5,483 | 9.3 | % | 12,489 | 11,330 | 10.2 | % | ||||||||||||||||||||||||||||||
Operating margin | 23.8 | % | 23.3 | % | 24.8 | % | 23.7 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In thousands) | December 2, 2017 | November 26, 2016 | % Change | December 2, 2017 | November 26, 2016 | % Change | |||||||||||||||
Net sales | $ | 26,003 | $ | 22,084 | 17.7 | % | $ | 64,897 | $ | 63,382 | 2.4 | % | |||||||||
Operating income | 6,724 | 5,910 | 13.8 | % | 15,022 | 15,613 | (3.8 | )% | |||||||||||||
Operating margin | 25.9 | % | 26.8 | % | 23.1 | % | 24.6 | % |
Selected cash flow data | Six Months Ended | |||||||||||||
(In thousands) | August 27, 2022 | August 28, 2021 | ||||||||||||
Operating Activities | ||||||||||||||
Net cash (used) provided by operating activities | $ | (2,643) | $ | 54,907 | ||||||||||
Investing Activities | ||||||||||||||
Capital expenditures | (9,255) | (10,121) | ||||||||||||
Proceeds from sales of property, plant and equipment | 4,122 | 1,292 | ||||||||||||
Financing Activities | ||||||||||||||
Borrowings on line of credit | 409,880 | — | ||||||||||||
Repayment on debt | (151,000) | (2,000) | ||||||||||||
Payments on line of credit | (171,000) | — | ||||||||||||
Repurchase and retirement of common stock | (74,312) | (22,419) | ||||||||||||
Dividends paid | (9,602) | (10,060) |
Selected cash flow data | Nine Months Ended | ||||||
(In thousands) | December 2, 2017 | November 26, 2016 | |||||
Operating Activities | |||||||
Net cash provided by operating activities | $ | 66,239 | $ | 72,815 | |||
Investing Activities | |||||||
Capital expenditures | (38,946 | ) | (44,548 | ) | |||
Acquisition of business, net of cash acquired | (184,826 | ) | — | ||||
Change in restricted cash | 7,834 | (14,884 | ) | ||||
Financing Activities | |||||||
Proceeds from issuance of debt | 314,700 | — | |||||
Payments on debt | (150,700 | ) | — | ||||
Repurchase and retirement of common stock | (10,833 | ) | (10,817 | ) | |||
Dividends paid | (11,971 | ) | (10,687 | ) |
Payments Due by Fiscal Period | |||||||||||||||||||||||||||
(In thousands) | Remainder of Fiscal 2018 | Fiscal 2019 | Fiscal 2020 | Fiscal 2021 | Fiscal 2022 | Thereafter | Total | ||||||||||||||||||||
Long-term debt obligations | $ | 597 | $ | 1,583 | $ | 108 | $ | 5,508 | $ | 211,108 | $ | 13,022 | $ | 231,926 | |||||||||||||
Operating leases (undiscounted) | 3,615 | 13,546 | 11,493 | 8,477 | 7,626 | 21,232 | 65,989 | ||||||||||||||||||||
Purchase obligations | 48,572 | 67,615 | 2,247 | 1,230 | 1,230 | — | 120,894 | ||||||||||||||||||||
Total cash obligations | $ | 52,784 | $ | 82,744 | $ | 13,848 | $ | 15,215 | $ | 219,964 | $ | 34,254 | $ | 418,809 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
(In thousands, except per share data) | December 2, 2017 | November 26, 2016 | % Change | December 2, 2017 | November 26, 2016 | % Change | ||||||||||||||||
Net earnings | $ | 23,646 | $ | 22,552 | 5 | % | $ | 57,159 | $ | 62,671 | (9 | )% | ||||||||||
Amortization of short-lived acquired intangibles | 2,924 | — | N/M | 7,608 | — | N/M | ||||||||||||||||
Acquisition-related costs | 423 | — | N/M | 4,840 | — | N/M | ||||||||||||||||
Income tax impact on above adjustments (1) | (974 | ) | — | N/M | (4,120 | ) | — | N/M | ||||||||||||||
Adjusted net earnings | $ | 26,019 | $ | 22,552 | 15 | % | $ | 65,487 | $ | 62,671 | 4 | % | ||||||||||
Earnings per diluted common share | $ | 0.82 | $ | 0.78 | 5 | % | $ | 1.98 | $ | 2.17 | (9 | )% | ||||||||||
Amortization of short-lived acquired intangibles | 0.10 | — | N/M | 0.26 | — | N/M | ||||||||||||||||
Acquisition-related costs | 0.01 | — | N/M | 0.17 | — | N/M | ||||||||||||||||
Income tax impact on above adjustments (1) | (0.03 | ) | — | N/M | (0.14 | ) | — | N/M | ||||||||||||||
Adjusted earnings per diluted common share | $ | 0.90 | $ | 0.78 | 15 | % | $ | 2.27 | $ | 2.17 | 5 | % | ||||||||||
(1) Income tax impact on adjustments was calculated using the quarterly effective income tax rate of 29.1% and the nine-month period effective income tax rate of 33.1%. |
Framing Systems Segment | Corporate | Consolidated | ||||||||||||||||
(In thousands) | Operating income | Operating margin | Operating income (loss) | Operating income | Operating margin | |||||||||||||
Three Months Ended December 2, 2017 | ||||||||||||||||||
Operating income (loss) | $ | 18,452 | 9.5 | % | $ | (2,295 | ) | $ | 34,535 | 9.7 | % | |||||||
Amortization of short-lived acquired intangibles | 2,924 | 1.5 | — | 2,924 | 0.8 | |||||||||||||
Acquisition-related costs | — | — | 423 | 423 | 0.1 | |||||||||||||
Adjusted operating income (loss) | $ | 21,376 | 11.0 | % | $ | (1,872 | ) | $ | 37,882 | 10.6 | % | |||||||
Three Months Ended November 26, 2016 | ||||||||||||||||||
Operating income (loss) (1) | $ | 11,838 | 13.0 | % | $ | (1,115 | ) | $ | 33,259 | 12.1 | % | |||||||
Nine Months Ended December 2, 2017 | ||||||||||||||||||
Operating income (loss) | $ | 46,958 | 9.5 | % | $ | (8,354 | ) | $ | 86,415 | 8.9 | % | |||||||
Amortization of short-lived acquired intangibles | 7,608 | 1.5 | — | 7,608 | 0.8 | |||||||||||||
Acquisition-related costs | — | — | 4,840 | 4,840 | 0.5 | |||||||||||||
Adjusted operating income (loss) | $ | 54,566 | 11.1 | % | $ | (3,514 | ) | $ | 98,863 | 10.2 | % | |||||||
Nine Months Ended November 26, 2016 | ||||||||||||||||||
Operating income (loss) (1) | $ | 35,070 | 13.3 | % | $ | (3,317 | ) | $ | 92,557 | 11.5 | % | |||||||
(1) Expenses related to amortization of short-lived acquired intangibles and acquisition-related costs are not applicable to the three- and nine-month periods ended November 26, 2016, and therefore no adjustments have been made. |
Period | Total Number of Shares Purchased (a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b) | Maximum Number of Shares that May Yet Be Purchased under the Plans or Programs (b) | ||||||||||||||||||||||
May 29, 2022 to June 25, 2022 | 3,510 | $ | 41.19 | — | 1,253,399 | |||||||||||||||||||||
June 26, 2022 to July 23, 2022 | 11,199 | 40.10 | — | 1,253,399 | ||||||||||||||||||||||
July 24, 2022 to August 27, 2022 | 1,606 | 41.47 | — | 1,253,399 | ||||||||||||||||||||||
Total | 16,315 | $ | 40.61 | — | 1,253,399 |
Period | Total Number of Shares Purchased (a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b) | Maximum Number of Shares that May Yet Be Purchased under the Plans or Programs (b) | |||||||||
September 3, 2017 to September 30, 2017 | — | $ | — | — | 742,367 | ||||||||
October 1, 2017 to October 28, 2017 | — | — | — | 742,367 | |||||||||
October 29, 2017 to December 2, 2017 | 304 | 46.80 | — | 742,367 | |||||||||
Total | 304 | $ | 46.80 | — | 742,367 |
101# | |||||
The following materials from Apogee Enterprises, Inc.’s Quarterly Report on Form 10-Q for the quarter ended | |||||
104# | Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101) | ||||
Exhibits marked with a (#) sign are filed herewith. |
APOGEE ENTERPRISES, INC. | |||||||||||
Date: September 29, 2022 | |||||||||||
Ty R. Silberhorn President and Chief Executive Officer (Principal Executive Officer) |
Date: | By: /s/ | ||||||||||
Mark R. Augdahl | |||||
Interim Chief Financial Officer | |||||
(Principal Financial | |||||