Apogee Enterprises Inc. Reports Operating Results (10-Q)
Apogee Enterprises has a market cap of $675.5 million; its shares were traded at around $24.76 with a P/E ratio of 42 and P/S ratio of 1. The dividend yield of Apogee Enterprises stocks is 1.6%.
Highlight of Business Operations:Selling, general and administrative expenses for the third quarter were up $3.3 million over the prior year and increased as a percent of net sales to 16.2 percent from 15.8 percent in the prior-year period. For the nine-month period, selling, general and administrative expenses were up $4.9 million and were flat at 16.9 percent of net sales. The increase in spending for both the three and nine-month periods was primarily due to increased expense for incentive and long-term executive compensation programs, as Company operating performance has improved. In addition, we increased research and development and sales and marketing costs, as we continue to invest in new products, markets and geographies. For the nine-month period, these items were partially offset by a decrease in expenses related to CEO transition costs of $1.8 million that were incurred in the prior-year nine-month period.
Third-quarter net sales of $168.8 million were up 11.0 percent over prior-year net sales of $152.1 million, and net sales of $460.0 million for the nine-month period increased 5.4 percent over the prior-year period. For the quarter, revenues for all segment businesses increased over the prior-year period, with the largest increase occurring in the installation business as it grew share through expansion into new domestic geographies; better pricing in the architectural glass business also contributed to revenue growth. For the nine-month period, revenue growth in the installation and storefront businesses from expanding our domestic geographic footprint and share gains were partially offset by lower volume in the architectural glass business.
Third quarter net sales of $21.6 million decreased 4.9 percent from prior-year net sales of $22.8 million. The decrease in the quarter as compared to a strong prior-year quarter was due to the timing of customer promotions and the impact
of the East Coast hurricane. For the nine-month period, net sales were $60.5 million, an increase of 5.7 percent over the prior-year period of $57.2 million. The increase for the year-to-date period was due to a better mix of higher value-added picture framing products across all markets.
Operating income of $6.6 million in the quarter was down 11.5 percent from the prior-year period and operating margins were down 2.2 percentage points to 30.3 percent, compared to 32.5 percent in the prior-year period due to the decline in revenue for the quarter. Operating income improved 9.4 percent in the nine-month period to $17.0 million from $15.6 million in the prior-year period, and operating margins were 28.1 percent, up 0.9 percentage points over the prior-year period of 27.2 percent. The strong mix of value-added picture framing products and the impact from higher volume contributed to increased operating income and margins for the year-to-date period.
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