FY07 FULL YEAR HIGHLIGHTS
-- Revenues increased 17 percent to $778.8 million.
-- Earnings from continuing operations were $1.12 per share, up
29 percent from earnings of $0.87 per share a year ago. Net
earnings were $1.12 per share compared to $0.85 per share last
-- Operating margin was 6.1 percent, compared to 4.6 percent the
-- Architectural segment revenues were up 21 percent, and
operating income more than doubled compared to the prior year.
-- Operating margin was 5.8 percent, up significantly from 3.2
percent the prior year.
-- Large-scale optical segment revenues decreased 6 percent as
expected, and operating income decreased 32 percent versus the
-- Decision was made to discontinue the auto glass segment, with
annual revenues of approximately $27 million, in the fourth
-- Auto replacement windshield manufacturing ended in the fourth
quarter, and manufacturing of recreational vehicle (RV) and
bus windshields will continue until sale of the business is
completed, which is expected by the end of the third quarter
of fiscal 2008.
-- Outlook for fiscal year 2008 earnings from continuing
operations has been increased to a range of $1.27 to $1.37 per
share, up from prior guidance of $1.20 to $1.30 per share.
FY07 FOURTH QUARTER HIGHLIGHTS
-- Revenues of $206.2 million were up 17 percent versus the
-- Earnings from continuing operations were $0.32 per share
versus $0.21 per share a year earlier. Net earnings were $0.34
per share versus $0.19 per share in the prior-year period.
-- Operating margin was 6.6 percent, compared to 4.4 percent in
the prior-year period.
-- Architectural segment revenues were up 20 percent, and
operating income increased 140 percent versus the prior-year
-- Large-scale optical segment revenues declined 3 percent as
expected, and operating income decreased 27 percent versus the
strong prior-year period.
-- Expect to complete the sale of the non-core, pre-framed
art/wall decor product line by the third quarter of fiscal
"We are very pleased with fiscal 2007 results, which were driven by our architectural segment," said Russell Huffer, Apogee chairman and chief executive officer. "We achieved significant improvement in our architectural operating margin in fiscal 2007, increasing to 5.8 percent from 3.2 percent in the prior year. Architectural pricing increased, and operations improved. In addition, we had a better mix of projects with higher margins than during the prior year. And, strong markets supported our performance.
"We finalized our strategic plans to exit the auto glass segment, with the fourth quarter decision to sell the RV and bus windshield business," Huffer said. "We stopped producing aftermarket auto windshields late in fiscal 2007 and have started converting the facility to provide additional architectural glass capacity.
"Our large-scale optical segment fiscal 2007 results declined versus the prior year as some customers offered a less favorable mix of value-added framing products," he said. "However, later in the year, key framing customers converted to our best products, which offer visual benefits to consumers, and we started to see the positive results of this strategy at the end of the fourth quarter.
"As a result of our strong fourth quarter, we generated free cash flow of more than $8 million for the full year after investing approximately $40 million in capital expenditures," said Huffer. (Free cash flow is defined as operating cash flow less capital expenditures.) "Our debt level of $35 million was also significantly lower than anticipated due to improved earnings, reduced working capital requirements and the timing of some capital expenditures.
"Our fourth quarter performance underscored the strength of our architectural segment, which delivered significant growth in both revenues and operating income," said Huffer. "Our architectural backlog again grew and now stands at $424 million, positioning Apogee for further growth in fiscal 2008."