Apogee Enterprises Inc.’s third-quarter revenue was $313.6 million, compared to $337.9 million in the third quarter of fiscal year 2020, which ended November 28, 2020. This reflects market-related volume declines in the architectural framing systems and architectural glass segments and was offset partially by growth in the architectural services and large-scale optical segments. The company’s Q3 2021 operating income was $49.8 million, compared to $21.6 million during the same period last year.

Earnings were $1.42 per diluted share, compared to $0.57 per diluted share in the prior-year period, which included a pre-tax gain of $19.3 million on the sale of a building and $1.4 million of pre-tax costs related to COVID-19. Excluding these items, adjusted earnings increased to $0.90 per diluted share, from $0.57 in the prior year.

“We delivered another strong quarter, with adjusted earnings growth and improved cash flow, despite continued challenges from COVID-19 and soft conditions in our architectural end markets,” says Joseph F. Puishys, chief executive officer. “We focused aggressively on managing costs and improving execution across our business and remain on track to achieve our full-year cost reduction goal of over $40 million. Architectural services continued its strong performance, with double-digit revenue and profit growth, and large-scale optical returned to growth, rebounding faster than expected from its shutdown earlier in the year.”

Architectural Framing Systems

Third-quarter revenue for Apogee’s architectural framing systems segment, which includes Alumicor, EFCO Corp., Linetec, Sotawall, Tubelite and Wausau Window and Wall Systems, was $136.7 million, compared to $165.5 million in the prior-year period, primarily reflecting COVID-19 and market-related project delays, and lower volume for short lead-time products. Operating income in the quarter increased to $7.2 million, with operating margin of 5.3%, from $6.3 million and 3.8% respectively in the prior-year quarter, primarily driven by cost reductions, which offset the impact of lower revenue. Segment backlog increased to $408 million, compared to $404 million at the end of the second quarter.

Architectural Glass

Third-quarter revenue for the architectural glass segment, which includes Viracon, was $84.8 million, compared to $89.4 million in the prior-year quarter. The segment had operating income of $10.8 million and operating margin of 12.8%, compared to operating income of $4 million and margin of 4.6% in last year’s third quarter. Third quarter results included $7.4 million of operating income related to a new markets tax credit transaction.

Architectural Services

Third-quarter revenue for the architectural services segment, which includes Harmon, grew 11% to $76.7 million, from $69 million in the prior-year quarter, driven by increased volume from executing projects in backlog. Third-quarter operating income increased to $8.6 million with operating margin of 11.2%, up from $6.5 million and 9.5% respectively in the prior-year period, primarily driven by strong project execution. Segment backlog stood at $597 million, compared to $665 million at the end of the last quarter, and $607 million a year ago.

Large-Scale Optical

Revenue for the large-scale optical segment, which includes Tru Vue, was $25.3 million, up from $24.4 million in the third quarter last year, driven by increased volume. Segment revenue grew sequentially by 50% compared to the second quarter, as customer demand increased significantly following the segment’s COVID-related shutdown earlier in the year. Segment operating income was $26.1 million with operating margin of 103.4%, which included a $19.3 million gain on the sale-leaseback of a building. Excluding this gain, adjusted operating income was $6.8 million, in-line with the prior-year quarter, with adjusted operating margin of 26.8%, compared to 27.7% last year.

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