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Apogee Enterprises Inc. saw a slight dip in fourth-quarter 2020 and full-year fiscal 2020 revenue compared to the same periods in 2019. Fourth-quarter revenue was $337.1 million, compared to $346.3 million in the fourth quarter of fiscal year 2019. Full-year fiscal 2020 revenue was $1.38 billion, compared to $1.4 billion in the prior-year.
Net cash provided by operating activities in fiscal 2020 was $107.3 million, an increase of 11% compared to $96.4 million last year. Capital expenditures for the fiscal year were $51.4 million, compared to $60.7 million in fiscal 2019. During the quarter, the company reduced its total debt by $33 million, to $218 million, compared to $251 million at the end of the third quarter, and down from $246 million at the end of fiscal 2019.
“We had a strong fourth quarter, ending fiscal 2020 on a positive note, with earnings above our prior guidance range, strong order flow leading to record backlog levels and cash flow from operations well above the prior year,” says Joseph F. Puishys, CEO. “We also made significant progress on key strategic initiatives, including our procurement savings program and other cost-savings actions, with line of sight to our $30 to $40 million annual savings target when fully implemented. We entered fiscal year 2021 with a solid foundation, good momentum in our business and a path to improved performance.”
Architectural Framing Systems Segment
As forecasted, fourth quarter revenue for Apogee’s architectural framing systems segment, which includes Alumicor, EFCO Corp., Linetec, Sotawall, Tubelite and Wausau Window and Wall Systems, declined to $153.2 million, from $170.6 million in the prior year period, primarily due to lower volumes. Operating income was $2 million, with operating margin of 1.3%, compared to $6.1 million and 3.6% respectively in the prior year quarter, reflecting lower revenue and the impact of operational difficulties that were identified in the third quarter, which have been addressed. Operating income in the prior-year quarter included a $3.1 million charge for a trade name impairment. Excluding this charge, adjusted operating income in the prior-year period was $9.5 million. Segment backlog increased by 14% to $432 million, compared to $378 million a quarter ago.
Architectural Glass Segment
Fourth quarter revenue for the architectural glass segment, which includes Viracon, was $98.3 million, compared to $103.7 million in the prior year quarter, reflecting lower volumes driven by increased competition from foreign competitors leveraging the strength of the U.S. dollar. Operating income was $3.8 million and operating margin was 3.9%, in-line with the Apogee’s expectations, but down from $7.3 million and 7.1%, respectively in last year’s fourth quarter, due to start-up costs related to the new manufacturing facility for the small projects growth initiative, higher insurance costs and decreased volumes, partially offset by improved factory productivity.
Architectural Services Segment
The architectural services segment, which includes Harmon, continued to have strong order flow during the quarter, with segment backlog increasing by 9% to a record $660 million, from $607 million last quarter. The segment’s revenue grew to $73.4 million in the fourth quarter, up from $66.3 million in the prior-year quarter, on higher volumes driven by favorable project timing. Fourth-quarter operating income was $8.5 million with operating margin of 11.6%, compared to the record levels of $9.1 million and 13.7% respectively in the prior-year period. Operating income and margins in the prior-year quarter benefited from favorable project maturity as a number of projects came to completion.
Large-Scale Optical Segment
Revenue for the large-scale optical segment, which includes Tru Vue, was $21.5 million, compared to $24 million in the fourth quarter last year, primarily due to lower U.S. retail sales. Operating income was $7.1 million and operating margin was 33%, compared to $7.2 million and 29.9%, respectively in last year’s fourth quarter, reflecting good cost control and higher productivity, which offset the lower revenue.
“Even with this solid performance and encouraging momentum in our business, the events surrounding the COVID-19 outbreak that have happened since the quarter-end have become our primary focus. As a company, we are stepping up to this challenge. Our top priority is safeguarding the health and safety of our employees and their families, while we continue to serve our customers and ensure the long-term health of our business. We have a robust action plan in place to reduce the risk of infection in our facilities, minimize disruption to our operations and manage a rapidly changing environment,” says Puishys. “To this point, all of Apogee’s architectural segments continue to operate, ship product and meet our customer’s requirements, while our large-scale optical segment is seeing a more significant reduction in near-term customer demand. The situation is evolving quickly and we are assessing the potential impact on our business and evaluating actions to react to changing market conditions. In light of this uncertainty, we are not providing annual guidance for fiscal 2021 at this time.”
“As all of us come together to fight our way through the COVID-19 situation, we know there will be light ahead. We’re dealing with this period of uncertainty starting from a position of strength and I am confident that we have the resources to navigate through this environment. I am also confident that Apogee will emerge from this situation poised for future success,” adds Puishys.
