Apogee Enterprises Inc.’s second-quarter 2021 revenue was $319.5 million, compared to $357.1 million in the second quarter of fiscal year 2020, reflecting COVID-19 and market related volume declines in three of the company’s segments. That’s according to the company’s fiscal 2021 second-quarter results.
Earnings were $0.67 per diluted share, compared to $0.72 per diluted share in the prior year period, reflecting the lower revenue, partially offset by cost savings and improved productivity. Adjusted earnings were $0.73 per diluted share, compared to $0.72 in the prior year. Adjusted results excluded $2.3 million of pre-tax costs related to COVID-19 and acquired project matters.
“Our team turned in impressive results in the second quarter, delivering adjusted earnings growth despite a challenging economic situation. As we forecasted last quarter, each of our four segments delivered increased revenue and profitability in the second quarter compared to the first quarter. Large-scale optical recovered sharply from the first quarter, returning to profitability, and we benefited from strong execution and effective cost and cash management across our business,” says Joseph F. Puishys, CEO. “While conditions in our end markets remain uncertain, Apogee is well positioned to navigate the current environment. Over the past several years, we have successfully diversified our business to enable more stable performance, moving from a concentration in high-rise buildings toward a more balanced customer offering across project types and building sizes. We’ve built a robust backlog, providing visibility in the long lead-time parts of our business. We’ve driven sustainable cost reductions and improved productivity, with additional opportunities for further gains. Finally, our strong balance sheet and cash flow provide significant financial flexibility to drive future growth and shareholder value.”
Architectural Framing Systems Segment
Second-quarter revenue for Apogee’s architectural framing systems segment, which includes Alumicor, EFCO Corp., Linetec, Sotawall, Tubelite and Wausau Window and Wall Systems, was $152.9 million compared to $187.4 million in the prior year period. Operating income in the quarter was $11.7 million, with operating margin of 7.6%, compared to $15.5 million and 8.3%, respectively, in the prior year quarter, reflecting the lower revenue, partially offset by cost reductions and improved productivity. Segment backlog stands at $404 million, compared to $423 million a quarter ago.
Architectural Glass Segment
Second-quarter revenue for the architectural glass segment, which includes Viracon, was $86.6 million, compared to $99.1 million in the prior year quarter. The segment had operating income of $5 million and operating margin of 5.7%, compared to operating income of $6.5 million and margin of 6.5% in last year’s second quarter, reflecting the lower volume, partially offset by strong factory productivity and effective cost management.
Architectural Services Segment
Revenue for the architectural services segment, which includes Harmon, grew 20% to $73.7 million, compared to $61.6 million in the prior-year quarter, as the segment executed projects in its substantial backlog. Second-quarter operating income increased to $6.6 million with operating margin of 8.9%, up from $4.0 million and 6.5%, respectively, in the prior-year period. Segment backlog decreased to $665 million, compared to the record level of $685 million last quarter, but remains 32% above last year’s level of $502 million.
Large-Scale Optical Segment
Revenue for the large-scale optical segment, which includes Tru Vue, was $16.9 million, down from $20.8 million in the second quarter last year, on lower volume. By the end of the second quarter, the segment’s customers had largely reopened, after having been closed for most of the first quarter due to COVID-19 related restrictions. In addition, the segment’s two primary manufacturing locations resumed normal operations during the quarter, after being closed for most of the first and second quarters. Segment operating income was $2.1 million with operating margin of 12.7%, compared to $4.6 million and 22.3%, respectively, in last year’s second quarter.