Apogee Enterprises, Inc
) Chief Executive Officer, Joe F. Puishys during its
fourth-quarter fiscal 2014 conference call stated that strong
fiscal 2014 results along with a growing backlog and prospects of
future awards has set the momentum for improved results in 2015.
Puishys added that it is a stepping stone toward achieving the
company's previously-stated goal of $1 billion in revenues and
10% operating margin by the end of fiscal 2016.
The leader in technologies for design and development of
value-added glass products, services and systems, reported
earnings per share of 95 cents in fiscal 2014, up 42% year over
year driven by increased sales and improving pricing and project
margins. During the year, Apogee invested in two acquisitions:
Custom Window Company, Inc., which makes historically accurate
aluminum window products, and Toronto-based Alumicor Limited,
which finishes and fabricates aluminum frames for window,
storefront, entrance and curtainwall products for the Canadian
commercial construction industry.
This is in sync with the company's strategy of international
growth and new product introductions. The company is at its
highest level ever with respect to new product introductions.
Backlog at year end increased 11% from the prior-year period to
$330 million. In addition, based on the growing pipeline of
awards, improvement in markets, acquisitions and successful
implementation of its growth strategies, the company guided
revenue growth in a range of 15% to 20% and earnings per share in
the range of $1.35 to $1.50 for 2015.
Operating income in 2013 improved 47% with contribution from all
of its segments. Puishys attributed 50% of this improvement to
productivity improvement and lean implementation across Apogee's
factories. He expects a similar positive impact in fiscal 2015.
Puishys projected capital spending for fiscal 2015 to be about
$40 million. The spending will aid in product development
capabilities and productivity as well as positive free cash flow.
He remains confident that the company will outperform its
commercial construction markets by approximately five percentage
points, as in the last several years. He highlighted that
McGraw Hill Financial, Inc.
) has projected high-single-digit growth for Apogee's end
markets. Furthermore, the Architectural Billing Index continues
to indicate modest increases in billings for architects.
While discussing the financial details, Apogee's Chief Financial
Officer, Jim S. Porter added that the first quarter is generally
the softest in terms of revenue and expects it to decline
sequentially based on the timing of backlog flow and negative
impact from winter weather. He expects third-quarter results to
outperform the other quarters.
According to Puishys, fiscal 2014 results along with the
company's strategies to grow through new geographies, new
products and new markets has put it well on track to achieve its
2016 targets as stated above. He added that focus on continued
productivity and operational improvements will also help ensure
10% operating margin in this time frame.
Apogee currently carries a Zacks Rank #3 (Hold). Some other
stocks worth considering in the industrial product sector include
). Both of these sport a Zacks Rank #1 (Strong Buy).
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