Page 1

apogee Apogee Enterprises Reports Fiscal 2022 Third Quarter Results December 21 , 2021 • Third - quarter revenue grows 6.6 percent , to $ 334 million • Third - quarter earnings of $ 0.44 per diluted share , which includes $ 6.4 million of pre - tax restructuring and impairment costs • Adjusted earnings of $ 0.63 per diluted share • Continued strong cash flow , with $ 86 million of cash from operations year to date MINNEAPOLIS -- ( BUSINESS WIRE ) -- Dec . 21 , 2021-- Apogee Enterprises , Inc. ( Nasdaq : APOG ) today announced its fiscal 2022 third - quarter results . Third - quarter revenue grew 6.6 percent to $ 334.2 million , compared to $ 313.6 million in the third quarter of fiscal year 2021 , led by growth in Architectural Services and Architectural Framing Systems . Third quarter earnings were $ 0.44 per diluted share , which included $ 3.4 million of pre - tax costs related to previously announced restructuring actions and $ 3.0 million of pre - tax costs for the impairment of a minority equity investment . This compares to earnings of $ 1.42 per diluted share in last year's third quarter , 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 . Adjusted earnings in the third quarter were $ 0.63 per diluted share , compared to $ 0.90 in the third quarter of fiscal 2021.1 Commentary " As we outlined in our recent investor day , we are shifting Apogee's focus to become the economic leader in our target markets , while building the operating model and capabilities needed to enable profitable growth , " said Ty R. Silberhorn , Chief Executive Officer . " During the third quarter , we drove further progress on our new strategic plan . We continued to execute the restructuring and cost reduction actions we announced in August , made progress implementing our enterprise transformation initiatives , and relaunched our Lean and continuous improvement program . In the coming quarters , we expect to continue our strategic pivot , positioning Apogee for improved operating performance . " Mr. Silberhorn continued , " While we are still early into our transformation journey , these efforts are beginning to be reflected in our financial results . Earnings this quarter improved sequentially compared to the second quarter , with encouraging progress on both revenue growth and margin expansion . We also continued to generate strong cash flow , further improving the company's financial position . I am proud of our team for delivering these results despite continued cost inflation and supply chain challenges . " Segment Results Architectural Framing Systems Architectural Framing Systems revenue grew 11 percent , to $ 151.7 million , from $ 136.7 million in the prior - year period , primarily driven by flow - through from pricing actions taken to offset inflation . Third - quarter operating income increased to $ 10.7 million , up from $ 7.2 million in last year's third quarter , primarily driven by improved pricing and the benefits from restructuring actions , which offset the impact of cost inflation . Segment backlog increased to $ 419 million , compared to $ 406 million at the end of the second quarter . Architectural Glass Architectural Glass revenue in the third quarter was $ 74.3 million , compared to $ 84.8 million in the prior - year quarter , primarily reflecting lower volume , partially offset by an improved sales mix . Architectural Glass had a third - quarter operating loss of $ ( 1.3 ) million , which included $ 3.5 million of restructuring costs . Excluding these costs , third - quarter adjusted operating income2 was $ 2.2 million , compared to $ 10.8 million in last year's third quarter . Architectural Glass ' results in last year's third quarter included $ 7.4 million of operating income related to a New Markets Tax Credit transaction . Architectural Services Architectural Services revenue grew 20 percent to $ 92.0 million , up from $ 76.7 million in the prior - year quarter , driven by increased volume from executing projects in backlog . Third - quarter operating income increased to $ 9.2 million , compared to $ 8.6 million in the prior - year period , primarily reflecting the increased volume , partially offset by a less favorable project mix . Segment backlog of $ 572 million was unchanged from the end of the second quarter . Large - Scale Optical Large - Scale Optical revenue grew 8 percent to $ 27.4 million , up from $ 25.3 million in the third quarter last year , primarily driven by a more favorable sales mix . Operating income was $ 6.0 million , compared to $ 26.1 million in last year's third quarter . Last year's third quarter included a $ 19.3 million gain on the sale of a building . Third - quarter adjusted operating income² was $ 6.0 million , compared to $ 6.8 million in the prior - year period , primarily reflecting short - term costs for expedited freight , partially offset by the more favorable sales mix . Corporate and Other Corporate and other costs in the third quarter increased to $ 6.9 million , up from $ 3.0 million in the prior - year quarter , primarily due to increased health care costs . Corporate and other costs in last year's third quarter included $ 1.4 million of COVID - related costs . Financial Condition Fiscal year to date , net cash provided by operating activities was $ 86.3 million , compared to $ 120.5 million in the first nine months of fiscal 2021. Cash flow in the prior - year period benefited from reduced working capital and temporary actions related to COVID . Capital expenditures through the first nine months of the fiscal year were $ 13.1 million , down from $ 17.1 million in the same period last year , as the company slowed some investments