APOG - Earnings call transcript Q4 2022 | Apogee Enterprises, Inc.

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Operator

Good morning and thank you for standing by. Welcome to the Apogee fiscal year 2022 fourth quarter earnings conference call. At this time, all participants are in listen-only mode. After the speakers’ presentation, there will be a question and answer session. To ask a question during this session, you need to press star, one on your telephone. to Huebschen. conference like host to now Jeff today, would hand over the your I ahead. go Please

Jeff Huebschen

website. Thank section you With today’s to morning and to XXXX in Ty Catherine. remind Good available Apogee’s remarks. Nisheet fourth of Enterprises’ to Silberhorn, Investor there Officer. the quarter These fiscal Gupta, Apogee everyone Chief are earnings I’d Executive that accompany call. Chief me Apogee’s Financial are everyone today Relations Officer, and like welcome slides are

this reference a Definitions to are During will of these release the measures measures. we non-GAAP financial morning. earnings call, certain GAAP issued the measures reconciliation provided this we and in nearest

information. reminder, Sotawall architectural services the that contain first be with a segment the our the otherwise unit, business systems included on to of can will be the forward-looking in quarters. statements. framing results Sotawall could With our results filings. business financial These today’s available factors and XXXX, about fiscal remind More unit over Beginning As quarter affect turn include reflect to may based everyone that, SEC call will Apogee’s the mentioned, consistent that found call management’s currently materially. information unless segment. I’ll you, architectural business with differ release Actual Ty. in like and I’d prior press expectations in results

Ty Silberhorn

for everyone morning. this and us Jeff, joining you thanks Thank

on up we the I some to we’ll fiscal on outlook. comment excited team your to for our that will questions. dealing a Nisheet be shaping quarter construction. new embarking provide fourth fiscal then build will quarter this strategy, accomplished from and fiscal year, strategic the results take morning, year very and in review ’XX expected managing After This more progress are delivering a our wrap outlook our I’m you we new our that, details year to our I’m solid and while continued our ’XX, challenging proud a how We is momentum ’XX, the would advancing on direction what full this on and touch the and in on and year. were how non-residential year. fiscal Entering solid with pandemic highlights outlook. downturn update work We of our the through full quarter,

meaningful have supply difficult the inflation As In our rose our on year for team improvements We strategy. productive significant very challenges, on. Through term while were were the above the to we team the Apogee face work, for efforts. head progressed, new thank of but to those and cost our in issues and list their added chain quarter, fourth want tremendous last delivering through execute a a year. team’s to to our that entire continued we navigated term I year. end company near a set also results long the path but

a As three pillars, are has of X Page deck. which our outlined on reminder, our strategy

structure target and we operations. are differentiated leader growing become cost building to service markets. product offerings our This also more the in First, working economic and competitive while means efficient

in markets. Our goal target margin is top to generator become a our

we portfolio more active best our and under-performers, invest to differentiated Second, will businesses, address performing to be manager. We offerings. an plan the grow add

our improve Our overall goal is invested to return on capital.

our we strengthen Third, will capabilities. core

greater value create in all more allow and acquire and an peak look to scalability and efficiency us that our are we and systems better future. We These as model, support provides lower for processes to stakeholders. operating enable shifts building costs, the businesses, will grow

During we the all across drove three year, progress pillars. these of

in scale transitioned realignment We us that and integrated of we will on go production comment actions completed a serve offerings leverages our clarity of framing value strategy Velocity glass, better to on more how Statesboro, can a on pursue business presentation, of customers. the completed we highlights facility, more Georgia and creating listed customers. market we are in of of we differentiate Some our the business, few. where Minnesota. Page deliver systems, capabilities and to exited and In I with the premium architectural These our our higher to the position our focusing remaining all we sale flagship plant and X for

we that capabilities. core year, on will strengthen projects During improve our the to back several operations. drove also progress took We office steps

strong our and added with the president transformation continuous improvement of segment across glass execution experience, office for establishing leadership management skill program. for also new drive initiatives. a organization. This We business key We set added relevant stronger new to new talent our we operations in key included brought and lean

emphasis having are glass year. focus lean segment on we already beginning revitalized lean with are efforts driving was positive that a initial organization an are in impact. improvements this are segment, framing parts of now show productivity The where the other Our the expanding we the and to P&L, to our

economic into move priorities we Slide persist From execute our we ’XX, through of much through are the fiscal continue a fiscal As challenges on external in to presentation. likely faced ’XX. will the our perspective, broader ’XX we strategy listed of X to fiscal

With markets that continued pricing focus mind, key cost remain some management other areas. expect We and raw inflation materials, in freight will tight for and and categories.

us do than of and key meaningful the headwinds, primarily supply margin units we expect will segments. materials. are drive levels or glass expansion Despite teams these maintain service procurement customers. the market our framing our in allow and to for This offer Additionally, ensure to to business raw working better

cost continued reduction improvements completed lean the efforts. our We we along through productivity will do this restructuring the with of by this year actions securing and benefits

forward. integrating move improving we will and our portfolio strengthen our management, would part acquisitions work continue processes growth we a day started potential acquisitions during To talent pipeline We’ve M&A identifying, our investor plan highlighted that be rebuild and active key for key our evaluate to this, of our the evaluating acquisitions. to as adding we capability, and Turning support to strategy. M&A to

just is For and than us, buying more businesses. portfolio selling management

recent to existing underperformed managing of services the part a we Sotawall its ’XX. thorough As from generated potential its review we segment. the fiscal conducted of it a and Sotawall the has years, framing in move loss business In as staged portfolio,

previously to of services. we ’XX. will Sotawall architectural integrated will during have Sotawall with quarter single They fully architectural team plan move business We into Harmon fiscal within proven first services announced, leadership a the As our model. a operating with business

years will this an position for and economic operational expect the long as transition capabilities add term maintaining We improvements position will architectural its drive to in leader. and scale growth while coming significant services

increasing to comes from that our higher of businesses, also We revenue are margin working the in portion improve sales the differentiated offerings. mix existing

products. We optical, this aim sales have consistently similar where great offered progress glass in with have had success shifted architectural higher large value and towards to make We in scale we the alignment our our on of with toward shift premium have more competitive the where framing In the the parts new enables of advantages. strongest systems, focus we segment the market market.

segments, through bidding margin for in expect in our position accelerate both and selling will which to additional us We shift ’XX. activities this expansion fiscal

is priority capabilities. to third Our core our continuing strengthen

capital, of plan and will and further we Apogee our elements our transformation out to advance support simplify other to optimize office back continue system, we’ll to In build We and to begin investments make this, enterprise processes. lean to management add improving of projects our in expand program expect further capabilities these growth. positioning translate earnings should margins, and for progress and ’XX significant improve on goals: invested the return productivity. our beyond. into above to growth financial This we increasing and make Through toward efforts, all market company fiscal

executing this over their thanking by once success results we Apogee again me right to contributions details that, more well, it positioned the have as we for it we are With the provide Nisheet Let are for year. outlook. move that on team turn Nisheet? to and our forward. and me the am confident close I let continued strategy,

Nisheet Gupta

our Ty, Thank you morning growth. and a fiscal line good was strong quarter The year. achieved bottom fourth everyone. top to We and close

Our actions shareholders. flow, return inflation offset impact of us solid to cash allowing pricing we and to and cash cost generated the

was provide our growth starting some from framing led fourth The quarter segments, several me with on both adjusted revenue of items excluded X XX% along This over growth by that quarter our included results. details, and presentation. in LSO services X% in quarter more grew Fourth with we results architectural Let X%. systems. Page

we First, to Sotawall. related impairment charge an took

mentioned ’XX. fiscal Ty into fully plan Sotawall announced, we of to integrate previously architectural QX As and the starting in segment services

quarter, finalize fourth we integrate to the continued the to integration our optimal During and strategic approach services evaluate into architectural plans. Sotawall

were As we assets evaluated part mainly certain determined Sotawall assets impaired. intangible that of this, assets, and the

the expect segment. services the see in combined leadership of performance under business improved future for We to the the

we quarter, fourth quarter, of restructuring actions the the summer. announced the In we restructuring execute million had $X.X we last costs. to During continued

to a million restructuring, facility the of in Georgia. in Statesboro, This led glass the sold As our part has gain we quarter. $XX.X

has to achieve executed largely with teams targeted beginning incurred million Everything pleased of cash sale, fiscal our how we complete, the is are proceeded and on have We the restructuring. overall the during restructuring million cash are and the schedule Overall, we this, we the the positive When expense. savings. was costs. year cost year. $X program Statesboro restructuring $XX.X for was Of proceeds from include significantly the

Improved restructuring last momentum the operating $XXX that I This was reflects actions, were diluted lower and This improved the count. are a the The down grew sequentially margin of was fourth fully year. led for also Slide driver record and impact than XXX impact pricing growth revenue top by of quarter. savings was COVID-related inflation. the driven pricing recovered margins first $X.XX Full share. year annual of earnings X.X%. were inflation core offset achieved we year’s gain in full revenue to from established Adjusted quarter. shutdowns services fiscal adjusted impairment, year last This saw $XX.X growth X%, operating year and points $X.XX Margins markets quarter. our to its and cost efforts. million. positive earnings benefited Large million from the optical per highlight better income million sale in fourth from have of share adjusted X. fully and assets, by systems. than year XX% framing on scale results higher quarter in the earnings shown sales operating and of year’s line and Full Excluding Adjusted per to basis which the adjusted was of the $XXX and grew improved especially restructuring the mainly This in primary like business. exceeded Full was architectural renewed each our year. during would share. year’s income last This last demonstrates time. on impact margins

points. key by ROIC metric Finally, improved our XX performance basis of

shows included that earnings ROIC new calculation. We presentation our have a in reconciliation our table

continue basis. Going annual on to we an performance forward, will share ROIC

fourth better systems, taken framing to revenue This inflation. XXX turn architectural by than quarter Let’s X.X% results Starting on Volumes pricing Slide XX. the that driven to margin than segment’s actions is was Adjusted basis primarily [indiscernible]. grew points last segment year. year, offset - well last but below term lower X%. with was operating long were

we see as restructuring Going from cost improved forward, performance achieve we margin framing the benefits in efforts. expect to reduction our and

architectural glass, XX%. to down was revenue Moving

expected, non-residential had while year As been project fewer volumes. this downturn. past a new We lower awards mainly driven in was construction by has over the

We are X.X%. higher last Adjusted basis away third basis than was XXX XXX margin This operating from some shifting also points sales. year points strategically and quarter. margin than better low was

gains to along with are restructuring our productivity program. cost beginning achieve savings from from our lean We

conversion Operating XX% to quarter This high. income increased a along was and to $XXX grew million. services, record driven order project a new declined backlog Moving million. by volumes. driven of execution $XX.X strong in was revenue by also record volume. million from $XX leverage Services to This the revenue was lower with strong architectural

As a be reminder, to services quarter uneven from orders can quarter.

in by next bidding the which encouraged should quarters. few the rebound to orders a recent in are activity We months, lead over increasing

XX.X%. and Turning driven scale grew were $XX high quarter. of at This to fourth revenue value year’s was optical, compared strong by margins large increased products, to XX% million of mainly last sales

quarters. seen in Finally, were lower costs the costs. rate past below several we run This favorable year by the insurance quarter was have last mainly driven fourth than and corporate

was Page Turning flow to This cash sheet million. balance by record flow from year’s strong. followed was Full last $XXX year cash XX, million. cash remain of our and flow very operations $XXX

of $XX assets. from also cash sale million in brought We of

investments Our some lower this completed strategic as than we while capital our remains review. slowed spending normal we year

well is net times times less of one below remains This Our leverage target X.X EBITDA. than adjusted our EBITDA.

fourth on debt building near this buying no In cash put quarter, is have limited term and we strong back our some revolving low our we are to our maturities stock. leverage, flow, credit capital undrawn. decided spending, We of sheet. facility balance the With and cash work cash to

X.X million quarter, we $XX million. the shares for purchased During

stock. purchased million full year, of we For $XXX the

forward, Page capital on cash The today’s deploy day shared Going investor for XX strategy shareholders. we’ll [indiscernible] our presentation. of we to continue allocation value is on

is will priority drive include profitable organic M&A. growth. first both to investments Our investing This and

capital and dividend shareholders. Our to intend will buybacks. share evaluate opportunistic continue increase We to is returning priority second our to

We will also a maintain strong work balance to sheet.

our by XX. outlook, up which on discussing wrap Page me Let is

for range providing of EPS of We year-over-year share. midpoint, initial would a fiscal are ’XX $X.XX At growth. guidance $X.XX adjusted to be the in per this XX%

in We be expect mainly pricing will total will fiscal ’XX. and driven grow framing This company revenue by systems.

volume. bottom flat services of in segments pandemic to revenue given focused during value, the is not the the other three glass relatively declined expect We and that backlog on

be expansion glass continue to our framing drive also drive improvements. significant the mainly will operational we We and to as in benefits achieve This during from the and year. systems restructuring expect margin

are will earnings the what fiscal saw similar providing guidance, to not ’XX. flow year we in we next While expect we quarterly be of

As results Sotawall we we XX plan with move segment year. appendix today’s of the move our the services. mentioned, all our included reflect during forma of the term Page presentation, day the the presented investor guidance thank Also would ’XX. into over architectural To in like team to year-over-year work updating first architectural margin I quarter into fiscal to of earnings in we presentation. tables Apogee the To close, Sotawall we comparisons, are with for help their past services pro of on to we long

systems. during We challenges have strengthened year. have We new the delivered investing growth, we core by results despite delivered standard in many strong and EPS our processes deployed

concluding turn new to are execute Ty in a and well I’ll have strategy to over our for it With for we that, year. results back We remarks. fiscal some begun next even positioned on stronger

Ty Silberhorn

simplify Thanks well strategic We’ve business. our significant Nisheet. is and Apogee’s shift taken steps underway. to align

structure. cost We a building more are competitive

We are advancing establishing are in a our initiatives. our we new operating program, and model enterprise transformation lean grounded

with earnings continue beginning progress during our to results financial new improving adjusted is In Our margins we ’XX, year. fiscal our the will quarter to strategy. show in sequentially execute each and

this in even runway do without be to put earnings volume expect deliver to year significant is We offerings. recover, your we’re to mix the in and the as questions. positive. spend growth stabilizes, ahead see We marginally only shift With core we years that, for meaningful take place ready our growth, further economy projected as markets our long improvements higher to a value

Operator

first Our Chris CJS from comes [Operator instructions] question Moore with Securities.

open. is line Your

Chris Moore

guys. morning questions. for good Hey, taking a couple Thanks

Ty Silberhorn

Good morning.

Chris Moore

Good morning.

offset fully into ’XX guide? fiscal that in pricing the So QX. Is inflation assumption built

Nisheet Gupta

Chris, good morning.

last inflationary we This all right we going all, aluminum, over lot of the prices that first able on offset have that teams that inflation that into do offset We that muscle very see work done of the inflation quarter are to energy ’XX. can offsetting guidance. trend so pleased been fiscal teams of where volatility therefore now, ’XX, and with have recently, our our a were to have commodity of has in they on you we the First optimistic the quarter. and our is impact continue the cautiously fiscal will prices new built to throughout businesses, as throughout continue built our across is--that have been is most the market

Chris Moore

thanks. it, Got

construction was calendar day, it’s targeted on growth. that I the you there, revenue the ’XX. investor times growth index focus the The On you saw last at SMI X% guys think I guys about for number X.X talked believe really, non-residential last--I

for ’XX? is for a Apogee ’XX, your business lag if better that is calendar of that the Given in X% accurate baseline lines, of some

Ty Silberhorn

this - Chris Ty. thanks Yes, is

but day was is look that but correct, that you current hit there’s of even we the to give perfect, SMI, kind in XX we revised current dollars, number but likely felt some at year. and revenue, ADI our was to our reason used with that view to chose guide. would investor that it at is up that a As how it’s it inflation so recently closer more Dodge been number, and be of where that matching to directionally has in X% of good an price XX-month not so down It’s

You positive what That as the that were wrap-up I looking at we see X% X% know, made comment we into do here marginally my to factoring that is growth. assumptions. and our

Chris Moore

you’re Got likelihood it, out has about growth of Last one those either framing. growth. on three very you’ll LSO, get like Glass It direction? highest helpful. flat. from services, is looks the of one Which some that’s me the roughly surprising revenue talking in of out

Ty Silberhorn

whether cycle their or driven is shorter from so that tend we’ve trying of Well, in to a we to faster. I’d take to shorter that’s If even have framing respond a supply has ahead the cycle, seen pricing A get percent people standpoint, where demand, that in pick-up likely time. say ground larger the projects by revenues see we’re on hold. That’s see framing. there

of framing, competitive We’re but because course, a we from, that. to it’s going look doing stay perspective, being the come kind some we by where customer be of to offset likely pricing when part a have large at from of costs expect work, drivers to led the to also we marketplace in

Chris Moore

it Appreciate leave guys. it, I’ll it. there. Got

Ty Silberhorn

Chris. Thank you

Nisheet Gupta

Chris. Thanks

Operator

Thank you.

Our Eric question with Hallum. Stine next from comes Craig

Your line is open.

Eric Stine

everyone. morning Good

Ty Silberhorn

morning. Good

Nisheet Gupta

morning. Good

Eric Stine

the I also one corner and your stick kind to you’ve dig in commentary framing, with just of lot that a is Maybe take where there bit, with release you Sotawall changes that is in but thought on yet there’s expanded your it a feels you’ve just go, your the think like a just maybe of thoughts some that to that there, but so on kind more exiting, be seems much and like of expectation framing. temperature. On improvement maybe little hand, the on that bit certainly is. will turned business got little that know your going expand just

Ty Silberhorn

question, the Sure, appreciate Eric.

the at a have we area When pro to shift, view. so was to drag pay you attention at forma As one we’ve look appendix we look fourth that that that Sotawall Sotawall framing, performance, got in framing is in our quarter.

the started in price upside even fiscal we we on a efforts momentum off both did do to ’XX, relatively a come also there to them year, framing we’re out then that as of upside the we sequentially side, and We there’s do for efforts from reinvigorating that terms that and and we because here quarter. loss staying framing, inflationary did perspective. that the to in structure and through last forward advantage Setting margin they carry do bulk so fourth the Sota lean expect ahead of of actually from margin that year. was shifted so did in year cost, saw some expect framing. in flat a that the frankly for We aside, we there’s loss taking really glass, the there better. closed improvements What we and there, pricing quarter saw framing some perspective just as the move post with cost

Eric Stine

is able Okay. see just That’s outlook view. helpful. more Maybe I or thoughts late guided not high about you on cycle. that to know that, just for backlog you’ve and level a this the year-over-year, question view dip you a services that’s kind been know projects, but of you maybe where you’ve in is multi-year services. upfront just flat fill there The fiscal through will some there turning so is think you as I ’XX had as so that be business to to then, the a work

Ty Silberhorn

you right that cycle months, - terms hit our XX if the longer the of in you downturn on is business. will, That and of downturn, valley there Yes, it that last that. business, now awarded, jobs through so to once for outperformed market services relatively is respect to up them end to that that flat the point they’ve would our flowing again with

building may at we the for that levels, of million. their year, at be to but look fill of strong, look it’s as a we historical I well potentially did ’XX on beyond and they is upside, there some of that’s good which that continues were were guide a be still little above well. as team, in looking The think bodes gap That is so fiscal they year, at bit over as work fiscal that $XXX the As well focused ’XX. now kind backlog, able just they last if to

to attention on the turned working Now, their flow ’XX. executing they’ve job not up starting fiscal on but to just build

Eric Stine

in light to on. Okay, know interest now. love high or some labor love some chain, parts you’ve trends of I degree, going moving would or a these projects that’s going there the just Maybe of in thoughts your least market many the I supply whether one the that Would there guidance here, into that last good your factored at you great. your but the rates, know headwinds that it’s I large are potentially how level are just all degree, Clearly have right everything of so me, after. but from on been to impacts those. on higher are thoughts

Ty Silberhorn

say material we’re and is I and concern that. monitoring Sure. the watching still would inflation material--raw that biggest

perspective. working a from We’re customer

challenges on materials We’re trying this that last where lot our most out just but a balance do the we of and what of also to stay raw taking we through year, fiscal offset to general I on ’XX, some so to costs saw so need bulk think competitive, of carry pricing calendar materials. is supply of year, of can the which raw and price we

projects as eye get most to reassess on broader supply a impact those with keeping their in how corporate are to terms that built only we’ve they ensuring associated customers. at potential of does level the costs doing market service to that organization, or units level, right continue not on we additional From We greenlighted help projects. those we to of importantly costs just up continue the an that’s might lean that our perspective, very be so some strong focus but be and business muscle procurement probably that within not heavily will a only not manage but support

We in area. haven’t that trend negative seen a

the that’s so It’s see some backdrop as in reports just see, to now economy, the We continue market given pick-up have shown, but an expansionary right just the growth. a bumpy interest We do number, or at to of bidding folks higher long activity. term, as to we’re a material start size another rates re-think of piece point projects looking projects. timing at some of costs or at minimum what cause

Eric Stine

Okay, that’s helpful. Thanks.

Ty Silberhorn

All right.

Operator

Thank you.

Our Romero comes with from next Sidoti. question Julio

open. is line Your

Julio Romero

Hey, good morning. the Thanks questions. taking for

Ty Silberhorn

morning. Good

Nisheet Gupta

Good morning.

Julio Romero

On sequential margin does there the glass continue really the segment, sales. first jump flattish talk a strength and saw sequential on nice you into you just Could in margin the the about quarter? what’s there, driving that

Ty Silberhorn

I probably the up do on we around side. restructuring, improvement. step capturing that margin Yes, that will the would percent improvements, just it’s really are flat them to the Year-over-year work a that of perspective improvement to they of glass, see expect quarter. started productivity not the well, on the that restructuring has from in that’s year if business even as the that. volume, biggest say revenue, capturing expect touched from margin that see to to standpoint productivity of do to with as as a before doing a well It benefits We continue on continue, that total a as on fourth we the show so really work

Nisheet Gupta

Velocity that about that really site business losses as that the two restructuring have in we we if And have you us not Julio, and the sites have that part we down have just was we to productivity making improved so of down the anymore there there, the had the Ty that shut shut down, also and quarter. shut think add for those money with not we are fourth Statesboro Statesboro mentioned,

Julio Romero

on maybe framing helpful I know quarter orders so the volumes and just speak of Could year-over-year, expectations That’s a just think down off had segment? for were about great. high down I there. you in but your sequentially the can you volumes volumes talk segment? Okay, base, a little framing in you in bit really the the

Ty Silberhorn

a there by for we it led was was so I think revenue at when negative framing, look volume. price,

primarily are starting fiscal As will the see we of to still we’ll that see--we’re price, we look business going see at some still through and led volume as think well. ’XX, come positive I indicators but revenue we’ll that growth by see on that to

Nisheet Gupta

We’ve we also bidding increase definitely monitoring framing activity very are the the in and in carefully. seen some segment it

not well the achieve As improving framing you are this about story on gain profitability, volume about is and it’s on track we to our that. the much for know, year but

Julio Romero

last me understood. just corporate from one Maybe on Yes, is the cost line.

there costs some drove just for bit rate ’XX? mentioned a a good You us was little into we head that as that insurance normal. corporate remind fiscal favorable you Can run than what’s lower

Nisheet Gupta

corporate’s ins that got Yes, so a of it. lot and outs go into

go If true-downs true It had million in many corporate million million [indiscernible] and corporate, costs this insurance about that $X be expect $X normal quarter a us, medical down a corporate, we quarter. we costs $X we and would depends will a you last year, things. million million half in three, medical costs. In that think year costs rate. will normal so in so we to expect this have $X.X a million true had I on we would about of significant those of the a and headwind were during and course up, normalize year, for run year, charge $X Last true-ups

Julio Romero

Very very helpful, much. thanks

Ty Silberhorn

Julio. Thanks

Operator

you. Thank

Our Braatz next Jon with Kansas question City from comes Capital.

open. is line Your

Jon Braatz

third given gone quarter you $XX first we about aluminum unrecovered months. costs costs the Where quarter? Good have In Ty, you stand call, nine that the to end were we significantly? of through Are now the today raw everyone. question. I mentioned up that than million a where do worse morning third amounted the material had at

Ty Silberhorn

Jon. we’re better, say slightly I would

slightly you gotten positive, inflation year, As price versus bit we has saw in gotten fourth commented, number offset look that better. the little full it’s so worse, at probably quarter price we the a if and not

time. market things adding to that balance whole the work the so customers on continue in we we’re sure standpoint, make those and value we’re can same to for pricing stay As we continue but we’ll our go also to drive, to working cost out forward, competitive stay from a at

Jon Braatz

look more you So fiscal down that costs? balance, as year to begin XXXX, ahead we bit you to to little come recover on continue or expect a those towards and next of

Nisheet Gupta

quarter as data so our inflation Yes, had the for clarify, first all think point is quarter first been good to and four, that’s which productivity, able this with in increases just four. about the price we and news so the we to quarter teams offset have

year, can there with offset next through As have will the unless be of the we impact price that is move into inflation the that that muscle teams lead a increases time short come businesses. built that all material volatility our significant will

to ’XX question, to in are headwind volatility inflation we a a unless answer of lot your very big positioned market. not So there’s well fiscal in the on have

Jon Braatz

Okay, Absolutely, understood. yes.

as costs Okay. Then restructuring assimilation do you you any secondly, services, costs this year? or envision or integration to costs transition Sotawall

Ty Silberhorn

the this plan has point, they’ll costs whatever integration. have that built into with doing their At team

business the and on a built there’s has was year. most like our much services of systems, had them the Sotawall their into same That’s built historically, plan standalone same acquisitions that. guidance, unit to budget for that that so getting so business into operated unit, been expense related platforms, and some

Nisheet Gupta

happening We integration fiscal are not expecting for Sotawall any ’XX. large restructuring the charge in

Jon Braatz

thank Okay, you.

Ty Silberhorn

Jon. you Thank

Operator

you. Thank

Karimi Zane from question with a have DA We Davidson.

line Your open. is

Zane Karimi

color gentlemen, so morning the I good and far. Hey, appreciate

Ty Silberhorn

Good morning Zane.

Zane Karimi

framing, the will over at the outlook segment guidance? between in but increase the when ’XX, looking this expectations, two year and trying understand, implying First off fiscal earnings backlog for the growth in drive some just within you’re which really the initiatives has improved we’re I’m that material here, self-help of to

Nisheet Gupta

things are landed think $X.XX looking earnings at there. the $X.XX, so are year this couple we at for we a about guidance, of right, a midpoint you If of happening and

quarter, repurchases share That’s the the the a we big a of year. the that impact fiscal have that in driver. of first will big in fourth next majority for all to EPS ’XX, First, did

of impact restructuring year-over-year, The all second our impact three is are taking, all into driver fiscal third have year of the will the be and the impact In is those be range the a that we guidance think fourth quarters, That EPS the will we well of year, our the the in we and Those within teams our items actions actions for full midpoint had a negative year. driver that the achieving. not believe offset not had impact. first in and story gain that next we to ’XX, $X.XX and That negative inflation of coming is have to big tickets lot three net that’s able we will only next negative big third second year-over-year. quarter. of a are we is big going were

Zane Karimi

that. process restructuring you appreciate bit conclude so? after I what’s acquisitions little over about the Then or today the Great, quarter thought the next maybe actions on more a

Ty Silberhorn

to Yes that I’ll Zane, talk point.

will be acquisitions intend pull As to at said we’re how growth that lever investor do approach so a part of we to going we a we that. our as strategy, in day, disciplined take

the an As associated we the our we at so the there focus future. over will, area we that in as will forward, if as that’s that, work that of with to process will look an remarks, some in I started past rebuilding strengthen my commented pipeline, go you it strengthen and and months, point few capabilities M&A continue action we’ll be area and that

Zane Karimi

Okay, it. I appreciate

Operator

Thank no the to you, to in are queue. for I’d Ty call turn questions and other comments. like Silberhorn back the any there closing

Ty Silberhorn

thank All right, well you.

the Let employees. call our once end congratulating and again thanking me today by

was ahead. in accomplished greater a in well positioned a have we fiscal deal turbulent ’XX, the what as and great the for company success as year We years

couple call, to great day. quarter we and well, thanks us for you updating forward a on today the those months. as look joining of first results in our on Have For a

Operator

for participating. Thank This you concludes today’s conference call.

a Everyone day. disconnect. great now may You have

Apogee Enterprises (APOG) 7 Apr 222022 Q4 Earnings call transcript