Earnings call transcript Q4 2023

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Operator

Welcome to the Q4 2023 Apogee Enterprises Incorporated Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Jeff Huebschen, Investor Relations. ahead. go Please

Jeff Huebschen

Augdahl, Good fiscal Michelle. today and to and welcome Ty Officer. Thank fourth morning, quarter Enterprises Mark Officer Executive XXXX Apogee’s me Chief earnings Apogee Financial Silberhorn, you, Chief everyone Interim call. are With

that remind the today’s in are slides Relations section of I’d remarks. everyone to are These like there to available Investor accompany Apogee’s website.

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

I’d business call More management’s materially. also statements. financial found be and Actual like press expectations to contain reflect differ Apogee’s remind may information everyone results and can about information. that These SEC today’s available filings. results will in our factors based that release currently on affect forward-looking could

the will to that, turn Ty. with call And over I you,

Ty Silberhorn

Thanks, Jeff.

year continue share. company team the quarter a terrific a to was a these solid leading per strategy revenue built across record the entire the congratulate to like for finish results. execution to full-year we and for terrific and executing our improve earnings While I'd Apogee, momentum we Apogee fourth to

touch on year, more and driving on then for turn from This and morning, strategy fiscal we that strategy in Mark priorities and sustainable it quarter to details the ‘XX, continue I'll highlights I'll as our quarter how improvements the our in the over business, is our the our outlook. to execute

fourth in our expected. results quarter were as largely Overall,

costs. execution, managing and solid operational have to effectively continue We price

improvement operating exceeding work we that Services Glass Systems. business. in softer-than-expected impressive volume, shutdowns XX%. especially the we of Results of through integration impacted as Framing margin seasonality were with quarter another holiday sales and Sotawall to expected, As progress delivered the continue Architectural and normal Architectural in

fiscal above ‘XX. positive from cash level. full-year throughout the our strategy, we continued trends last By quarter sustainable results the very improvements in operations quarter strong. fourth Finally, cash our established have flow made strong business. year's was Bringing executing These in

our today's we shown of of advancing overview an of each strategy reminder, This page year, a strategy. four on is our As made great pillar progress presentation.

highlights Some listed five. the are on of page

We our to approach significant gains [Technical maintained the pricing more Architectural a and offset Glass. productivity our in especially initiatives, of improvement improved Difficulty] continuous which We than lean these to cost Together, on inflation. strong advanced us allowed and overall continued impact we management. focus

value away products Glass, We performing in differentiated shift margin and continue our our work continue Systems, added rationalized we products. offerings products. differentiated we moving our higher to Architectural emphasize Framing we to increase mix selling Optical, to highest products. of In In toward Large-Scale And premium, services. lower strategies from

of strategy, for and our To acquisitions. active processes support capabilities the our second execution we've portfolio M&A selection improving our strengthened pillar management, future

Sotawall with also We Services. Architectural into significant progress made integrating

Finally, results key work three for improved year. pillars programs, talent financial the of This for our all we our enabler strategy. evident in development which was is our a

the particularly and Glass that were Framing Most long-term position acknowledge quarters we segments underperforming were better our grew $X.XX grew increased past XX%, Systems XX% in Glass to to their Full-year and results our two to Investor Adjusted compared been year, income revenue a earnings than At record these more to of share. last record impressive. potential. has adjusted focus Architectural for XX% Day, success. Full-year per six a $X.XX billion. and operating Framing

by and in and both At has targets November three-year Investor we for on margin capital, in Day ‘XX performance by beyond. Framing improved growth. to progression our fiscal ranges Page invested margin financial six return XXX last year also basis Both operating and improved shows XXX we their expect XXXX, the segments continued are points, of targeted strong performing points. basis margin and compared established now segments. within for margins revenue

We seven. page as reflected reaching each on on these episodes to our way of are well

‘XX goal than our reached ROIC in XX.X%, of fiscal exceeding greater XX%.

many In great fact, margin growth construction. direction fiscal a our growth all plus four progress segments the part improved moved surpassed new rate in strategic the restructuring company. And from revenue years. was company an one strong some our of first target we toward of X.X% to we three-year for non-residential away margin Operating the result XX% ‘XX in above especially were This and as XX% year ROIC, after as for lower just plan. set volume our

toward well progress As we positioned move our into fiscal strategic drive targets. remains to framework further financial our XXXX,

will this environment, challenging even will the for issue do in remain market foreseeable a inflation We an while lower future.

combined We markets activity with rates impact economic and overall construction labor tight likely will expect some interest at higher level. uncertainty continued

our drive transforming And a through performance we Apogee team's company. confident However, we will further performing, higher efforts, in that resilient into are I'm the year more ahead. gains

year. These And to part the program to of Apogee our manufacturing more focusing let our to define part heavily two go Glass. operating small, an how framework reinvigorated. page And on on years, effort several Page on tools into in first starting at needed talent We System lean for support AMS AMS Architectural a just AMS Apogee's from priorities fiscal new Day, introduced our build of be this principles we run we with view multi-year these, eight business. me world-class of for been a detail or outlines nine. with our brought started other We we Investor and the companies of improvement. key business, our efforts. supporting that have Management is the as culture on the but based continuous one

to to changes move line. into to learned bottom that there, fiscal experimented AMS. near-term we quickly real will organization. generate we continue scope to the We of expand was and to the From making broaden goal deeper improvements approach Our results. delivered our ‘XX, the In began

lean. of toolkit the other And will company. We will into our expand parts of deployment move the in beyond deeper Glass foundation the initial we going beyond

next build drive and gains productivity projects drive AMS, of the continued to continued of margin strengthen our hoppers the which I'd this area with designed priority challenged improvement future to ability several for like next Due on productivity achieve synergies organization discuss the to pipelines, is page years. improvements. muscle the meaningful to We've XX. the acquisitions, potential And deployment see we outlined to will to

disciplined the and foundation. From and value see of and pipeline an this ‘XX. forward. We've fiscal our growth year generate our We talent, as important has accomplished of a in M&A approach needed To established will to evaluating capabilities acquisitions, part continue developed work, proactive a opportunities screening defined plan build much strengthen a for team clear We target strategy strategy to companies. work we and a going of our for added past this from key engagement. potential our

Importantly, from a to developed synergies. capabilities have core drive to we approach integration. detailed In also Apogee's value leverage deal, any will we

some characteristics on chart outlines in deals. XX page for will we potential The look

We support further mix. This will our business project solutions leader. means existing or an differentiated either diversify seek acquisitions our attractive help that strengthen core becoming our us adding strategy that adjacencies and of construction into economic expand

lens apply our long-term ensure to also to are We performance. rigorous to will financial potential accretive deals a financial acquisitions

and closer objectives. the and New As strategy margin our Year, while our XX% our sustaining our achieving I'm will to growth priorities on for goal, we move confident advance we focus ROIC

done. But know we progress of proud our made the not year. the over past are is we work We

become is aligned gains. the Our markets entire leader in drive team and economic continued target to our performance

that, to let guidance. over turn quarter me on With call the more details the for Mark our and

Mark Augdahl

solid with closed everyone. and our good Ty, built a we've positive momentum year year. morning, out fourth We the fiscal continuing the Thanks, quarter throughout

the Starting found page details. more XX. Let me on consolidated provide with results

Ty strong, more solid across revenue. in offset the [Technical negatively allowing we impacted us to while out As volume than inflation. We most Seasonality expected. remains played execution the extended and largely of business, pricing mentioned, our quarter holiday as Difficulty] had

the in revenue product primarily lower improved primarily growth to offset Framing grew few This related Systems. growth, by segment revenue the double-digit Glass partially past in quarters, X% pricing also driven was Total had by mix. in Services. from Architectural quarter. Like and $XXX was pricing inflation The million

with to decreased, offset by year. margins Systems Framing margin and strong in insurance the and This Glass. and primarily margins along nearly increased compensation income was the by These corporate for operating in Adjusted segment, performance higher costs. prior lower Architectural were Services compared driven expense

a higher interest we tax headwind, from by million, primarily compared The statutory this rate expense in rate, rates. tax earlier the adjusted We took up excluded remained stock $X.X benefit last Interest million to deduction the driven worthless was This quarter year's to earnings. the primarily in benefits quarter. than to tax our our $X.X fourth related year. due lower was

$X.XX in the per our the in million, down X% from bottom last share adjusted year, down earnings line, fourth were count repurchases quarter. $XX.X from diluted share slightly due At year's year. earlier $X.XX Our was share to last

on shown page are results XX. full-year Our

driven Ty all As record was I'd and full-year revenue increased we by record sales. note growth year. achieved another of mentioned, to that Framing for also while per Large-Scale the revenues Systems four their achieved Optical like year earnings segments share,

increased and by Framing improved XX% Systems in margins basis income by operating strong and gains XXX adjusted Full-year driven by points, Glass. both

basis We are XX.X% our particularly happy and invested points capital, XX% return above was up target. to this on with XXX our improved

along starting last million driven mix. solid move income another Let's with actions compared to sales margins and taken improved Systems. by revenue on to primarily Operating basis to $XX.X favorable with more results up pricing grew XX, XX.X%, Framing points, inflation XX%, year. offset slide segment had XXX increased quarter, Framing a to to

margin down driven Architectural Sotawall of primarily to backlog. Operating projects XX%, this reflecting to decreased in lower profitability Revenue due volume was to X.X%, on our now legacy timing was Turning projects. by Services. lower

to profitability in the we pursuing we've Sotawall, And have operates business Sotawall segment, under see made we now segment. overall into the of that Harmon brand Services We for integrate entire competed own work progress -- going and significant the Sotawall great past. brand the improve Services and the segment We type opportunity model. longer no the forward, our are to retired in

slightly at Looking well last services make the the year was order with progress. but team during quarter, million reflecting for Glass, and to above $XXX continued orders which backlog, well the Architectural positioning down fiscal the compared us terrific level, intake solid XXXX. third backlog, to year and in In year's finished

reaching Operating was XX% Glass driven XX.X%. margins quarters. higher, by mix Revenue million, pricing reflects towards have continued strategic consecutive and to Adjusted shift in $XX to sequentially six continuing this now products. operating and for improved our trend more premium margin improved grew

was deliver Revenue pricing primarily X%, Large-Scale income grew to and operating improved due increased Optical Finally, to to continued performance. down costs. slightly due steady operating

in turn the XX. to operations on operations. the We strong with cash had page This flow to $XX cash slightly was flow of cash cash cash related to balance million We last found another from year's capital quarter the sheet which from performance quarter, of with level. due million, first given working very flow full-year inflation. happy $XXX to Let's and pushed above significant the increased especially were use

than full-year up productivity the to our ramped in margin investments fourth of million. X CapEx, quarter, our We was this to businesses, We in and automation spending the deploy for systems million the paid included in bringing used support CapEx Other This leverage $XX use our below down EBITDA. improved to debt business. puts quarter primary enhance reduction. higher expand debt in times capital better cash adjusted capacity of quarter through $XX net our

continue reduction, to CapEx to to addition In and return shareholders. also we debt cash

reiterate our to dividend balanced to to our invest continue our through strategy on shareholders a and shown $XX plan support page We to strategy. share the quarter, for deployment buybacks million we XX. X% returned to increased capital full-year to commitment and We the dividends. During want by

capital In million fiscal we addition of $XX to in million ‘XX, spending potential $XX evaluating acquisitions. to expect

a our capital to maintaining return while to approach supported We balanced continued to continue strong flow will is from sheet. cash by strong cash also This shareholders balance deployment operations.

page by our XX. is start which discussing me outlook, on found Let

in the operations would year, to quarter. We of will point fourth range be meaning I $X.XX. in ‘XX we to fiscal a share $X.XX have an expect extra out full-year week of earnings the like XX-week per that will

Architectural forecast, income the For impact This which extra on timing to of approximately extra flow slowdown revenue Services, revenue, flat the Sotawall framing in add week cycle will due is the will second-half as in year. slightly expect the to non-residential in accordingly. we flow full-year our in are week Including the we of to lower operations, based especially up legacy statement to primarily construction through full-year, due potential we latest ramp be our Also, X% and cautious of business. being market could some volume fiscal This of about projects. the projects short volumes declining.

improvements. company. margin This we Even declining be flat expect deploy will AMS the with the primarily as spectrum further across of revenue, by gains broader to productivity continued driven we

I'd also to of in ’XX, a Systems costs timing in benefit fiscal headwind and aluminum not will the and the $X benefit Framing will first-half volatility inventory to for Framing the year-over-year quarter. that in ‘XX, This remind a flows. first of repeat like due had the everyone million of especially fiscal Systems be

We interest we two at continue driven to to average to -- expect long-term and rate quarters, return expect expense the rates, run higher past a approximately to tax rate of similar XX.X%. by rate of our

I'll that, for Ty to concluding it turn With back over remarks. some

Ty Silberhorn

Thanks, Mark.

like few extend his for quarters our as Mark to to outstanding I'd CFO. gratitude up, the wrap past all my I over of Interim Before work

this later during this finance a transition segment. Officer, Architectural will to As Mark the you new Osberg, leadership seen, to continue would support company provide join to who and will we Glass Chief named Financial Matt the valuable month. and our organization Matt may have recently

team executive Mark. leadership, Our grateful for your is

gains, company. [Technical to we our They significant exceptionally of a improved growth. ‘XX, operational made also teams. and structure we've more As responsible productivity them into for fiscal wrap competitive Difficulty] proud established Apogee are I a this want cost our transforming a fiscal We've provision profitable accomplished built broader to together higher year. our everything performing, recognize stronger we've I'm more long-term drive execution, and

record and We share. have toward significant per our momentum and we financial earnings achieving targets delivered revenue

of positioning our executing expect create many Looking the continued years ahead all value we our Difficulty] for peak to for ‘XX, come. progress fiscal stakeholders to company [Technical strategy, to by

that, to are take ready With questions. your we

Operator

from question Securities. Moore [Operator Chris Instructions] with comes First CJS

Your open. line is now

Chris Moore

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

Ty Silberhorn

Good morning, Chris.

Chris Moore

start maybe Good morning. Yes, just ‘XX with the guide.

down. Do the expect in to So any you of growth revenue slightly volume flat segments?

Ty Silberhorn

know, as to guidance Well, you don't we give segments. specific

last that we we playing at would on revenue we have this this, out services have it's earlier, as that think the that were XXXX way was and expect now volume they're looked and the and and and commented if did jobs a executing will, fact I downturn. that's which calendar calendar you that decline, being in ‘XX, by trough, driven the from won

declines. from our when look of really -- we driver big the the revenue volume perspective that's and a So at

short growth. As look as cycle look Framing now. we the other at right look others, it's we got to in segments, flattish But the business predict to we we've to hard that at

Mark Augdahl

me is reduction Yes, essentially and offset maybe and to really just Harmon with segment at will I Glass at Systems. we're other Services segments. was our pretty comment pricing primarily flattish be going mix volume the within expecting in volume It's or the what excuse opportunities the Framing much

Chris Moore

Got it. -- is to necessary to is to $X.XX a And function Or that there that revenue? high-end? $X.XX, range helpful. are there to side the It’s of things other be EPS get very that

Ty Silberhorn

through only a which that, driver to big I on could the for focused higher side that drive perspective, would especially one, Well, Glass, and been that manage get will, help higher premium as continued and that look that in we expect one end but well. higher AMS you up, favorable market, think also price only on at expecting a help environment, We continued profit will is the are do us improvement could important get are end. the shift, to in might progress that pricing as then we square Framing, any per that's flattish. strong offerings, really the that driving deployment. out so us a Glass door volumes fiscal has so product favorable our helps value-added a but even to products higher that us our And And headwinds push not ensure end. that come that's productivity that And shift us if with mix We primarily and will unit help continue thing to higher we foot this ‘XX. help from those into range not of do revenue profitability from expect selling of that

Mark Augdahl

other what kind levels. obviously, at the than of faster market to just If we'll the drifting its Obviously, market current at then expect, levels. bounce deteriorates we one lower current need maybe would the but be end, along we comment. to towards market conditions And at continue least

Chris Moore

Maybe from one it. Got just more me.

April versus walk aluminum mechanisms you since Can is ‘XX the significantly that ‘XX? and down just ‘XX. pricing So, impacts through how

Ty Silberhorn

Well, we've think had. I as driven know, mean, lot you a industry that by that's I pricing, the challenges of raw is material our of And some right?

and what costs to input in response in ‘XX, we've that and If a raised adjust that's pricing whole year changes, and we The in changes we as have prices not only were most seen significantly. ago, you but we the half prices. go those industry competitors a a fiscal improved believe major making generally model have back

in as down As pricing that our but we're shift we're on give pricing we'll ultimately Glass, have believe market going doing to our fiscal selling change, to power and winning helps adjust in strength us value and promise, of market our pricing power to we service value-added some that and forward. the that products conditions premium delivering the comes higher appropriate, in work ‘XX providing. That the in

Chris Moore

it. Appreciate it. there. leave Thanks it Got guys. I'll

Ty Silberhorn

Thanks, Chris.

Operator

with question Hallum. next from The Craig Instructions] Eric [Operator Stine comes

Your now line is open.

Eric Stine

everyone. morning, Good

Ty Silberhorn

Good morning.

Mark Augdahl

Good morning.

Eric Stine

necessarily Ty, back higher about got you've bit? being so terms fiscal little I down that, unexpected that to in about services can just we also know but you is thinking Hey, a of backlog. go modestly, ‘XX talked not this

backlog to that. Now know I added that you've Sotawall

Sotawall? of backlog out a you're the things? in just further Is increase Or of those time? it added stretched how is seeing lot curious terms is year-over-year little two something of So square get where kind to that a the

Ty Silberhorn

Yes.

there's couple of a think I things.

spread out larger time. So one, backlog over that is

at of down, a revenues work fiscal strength into the but forward still due to think of that, ‘XX, move fiscal in backlog to you to that. on if there's we read points I total lot as some expect -- you positives look we that if So ’XX, be

some projects, changes the the Sotawall now we're adopting executing model that types that Sotawall the business projects. Harmon after a they of projects those As winddown of use and in the That we model. mode with transition in against go they

for ‘XX. some revenue we margin So expect into only with go and margin that that as there's we here fiscal the them see for do actually that lower improvement services, profit happening year improvement, path not can for because fiscal that they possibility but that a will see in see improve the even in in decline on likely periods right to even revenue margin transition of well. now as the and ‘XX percentage We dollars

Eric Stine

industry it. Got but helpful have side, I put to all, That's the words pricing if does want it you the sound even back the your going you agree price I on you guess, mean, depending need maybe or add? with I like even confidence Or just in to you in on some to then costs? input statement? move your to, value normal practices, guess readjust not or my would just I I So don't higher mouth if mean, color. And at lockstep to to hold if given have in with ability curious

Ty Silberhorn

little Yes. Well, there back play and agreement just maybe it it you maybe I'll a in and reword there's an Eric. bit, to

the pricing stable. now, probably from perspective until As market we an market, look overall right remains think a relatively there is significant decline market in we at

a structure than pricing premium really that to different we that previously the AMS maintain importantly, and we cost muscle Apogee help Our had will our System. platform, shift we most I have And have level. strengthened Management in us think

then to as pricing continued operations, that drive -- downward on to potential now. we've even some one we that So pressure. productivity degree offerings from premium if some see that, is productivity the move got helps pressure, our ability our that to we're offset we forward even in price to there And confidence focused stay as

Eric Stine

me pipeline in been yours part of been about be things pipeline. maybe Okay, the talk a just important one maybe I that’s the got that if mean and the of M&A and ready looks it. -- outlook? an it's to And like your what for that that's focus then maybe Clearly, a pipeline last advanced growth. have just just on

Ty Silberhorn

building been Yes, really we have focused capabilities. on our

So talent with help experienced process. we that some brought the us into organization to

and model, integration cost portions that that acquisition. deliver we’d businesses kind did our not about this of We derived We manage and meaningful the we synergies talked way acquisitions, to from have forward in the substantial operate but those going built integrate we with to the holding acquisitions look drive as playbook. value of return way a past would company the

we done that So have work.

built and great are we we will of proactive expect pipeline. that of have believe come would what add very have to things businesses sometimes and could we things evaluating look fits be a in a pipeline. to and in I to come be reactive process that we'll will in be continue identifying that to. part And been is We certainly strategic process to at market meaning we And market robust a targets we take that value and that process. And think formal

Eric Stine

you. Okay. Thank

Operator

Thielman with [Operator from Brent Instructions] comes question D.A. Davidson. Next

Your line open. is now

Brent Thielman

Hey Good morning. thanks.

Ty Silberhorn

morning, Good Brent.

Mark Augdahl

morning. Good

Brent Thielman

increasing the construction? Hey, like maybe What that caution some be sounds maybe all concerns just we out see Ty. sort seeing given are are build I'd the customers, businesses today. you're, forecast lead conservative credit this of, embeds environment some tell tightening around you of there curious about Any second-half? I your that of, in kind environment Maybe trends sort about more can what some today? commercial you It the that, guess, given feedback in after activities bid macro just now? owners market shorter in the hearing that, quote that time the from right view seeing, outlook

Ty Silberhorn

record it's I'm choppiness. going a bit sound but Yes, to a like broken continued Brent,

month we regard we a of, this by activity, businesses, of slowdown month of followed normal typically strong would really of see activity. continue see month we our a strong we bid one bid to kind but activity, what when So as look across kind

some that uncertainty So in that just the us still for there's indicates market.

towards are ‘XX softness whether calendar those leading it's indicators the into coming that's as calendar right Obviously, ABI, of we like indicators or point the at end what pointing some ‘XX, to towards now. get point some leading

to put that's So when end think really driven. together the of low we about guidance our our guidance,

it's our You're cautionary part. on correct saying in

Just especially fiscal and of calendar that, bit carries our consumer in which second-half of which spend cycle ‘XX. into that sits the a in our year, looking could then soften at the short of most business, that LSO Framing little in

so And that a focused and our that we occur. is that the thought we that, just possibility was put make when together just range we're should to cautious process and want guidance it to of thoughtful trying and be that preparing that low-end we're sure that for

Brent Thielman

that It relative you one Yes. fiscal there a And Ty, continues out that to prior services further fair I always statement up your does more out. a little out to business well sound little Is as holding you look a things mean, is like backlog the been has years. reasonably that visibility happen. that get booking of extended into ‘XX?

Ty Silberhorn

Yes, a fair statement. that's

that of how other -- of what -- a lot know, versus we're share terms I a in in You companies think and conservative we reminder, backlog. we that’s

backlog that a confidence been in high or awarded got on already that formally So has have that. things that we're counting we've orders level, it’s

that also that overall. strength that So -- us gives the confidence in backlog of

Brent Thielman

out operating This your margins here. very this put anomalies segment? in seem just double-digit then, lower these, what I in appreciate all for Any Glass, in effective that on kind that. set you mean, to guess is I to look, I the do? initiatives mean, sustaining levels be quarter? really of, in fiscal particular I Okay. And you views ‘XX solid place

Ty Silberhorn

value to start to Yes, time talked to ‘XX, driver and exactly as And we would flow. productivity. we through do. this it revenue strengthening higher And costs really driving we for is was what that. the how work really operations out about, products manage our our take set Fiscal those added and

started and see up see can QX so And and to we in that we that some up QX. show showing of in QX

So fiscal forward, likely as gains the but in we've at to to that us seeing we're product the high-end we X% we're out as of a XX% good forward likely high-end sustain for we're mix coming step what big Glass, range confidence behind at be we the through gives that that productivity out the through. to we're going laid move get that probably got of given going be won't flowing just news now at we where now mix for is of ’XX

Brent Thielman

you maintenance then And CapEx of are beyond year? all focused levels or on higher the -- kind somewhat Okay. CapEx? of this levels spending for fiscal What capital

Ty Silberhorn

Yes.

last years, are spend So most the second-half tied I'd to -- business. of above strategic fiscal say maintenance. capital. towards on the increase of segments spend to Each investments growth that return invested in of couple investments, of our was started the ‘XX for that those some We of now XX% on

So view for they where Difficulty] profit together can and investment growth look solid [Technical frankly, from story our story at. us to a delivery bring

helps a step here ‘XX think a bit a only pricing better product of more from systems perspective. So tight we're helps our that in margin investments automation you're effectively give up making some in of I but fiscal and are and some investments, then deal that investments us in our us businesses with manage a those not investments. us some We're not mix labor going bump capacity related to cost, with guidance some markets. but help ‘XX, to And -- into fiscal support seeing

Brent Thielman

guys. Thanks right. Appreciate All Okay. it.

Ty Silberhorn

Thanks, Brent.

Operator

[Operator Instructions] Please next standby question. our for

Our next Julio with Sidoti. question Romero comes from

now Your is line open.

Ty Silberhorn

Julio. morning, Good

Julio Romero

deployment could on maybe capacity Thanks. the more with stay could fourth that morning. quarter? was I $XX million and good in a we you CapEx expanded into what -- morning, CapEx granularity Hey, businesses just sizable if hoping Good little you

Ty Silberhorn

to We've in I that in investment you but avoid some talked on you, we make there. detail some make it to and we've been beyond spoken but business. there's some news, of good able Large-Scale to local wanting tell -- They would Art Optical, investments. to do before businesses, them I those Well, and we've that leads for given that sense expand on us Framing market they've know need will stuff and to the to be capacity got capacity about able made I be Custom

up the started got off to investment and that spending ground ramp that QX. for So in

Framing for business. of areas in automation where that businesses. strengthen then will levels some other high some And to some parts we then have them their other drive help the service And ability investments equipment upgrades the really the probably made and

Julio Romero

helpful. of had back higher productivity to that business the Glass And the then you're the you to earlier with Okay. That's regards very the you've in some good success the and in turning really Q&A talked Glass end business, improvements. towards range about

productivity as would to in look any Just there upside from to volume so op fiscal performance the mix and margins impressive to really maintain margin of from we just the or unless maybe kind leverage ‘XX, ‘XX? be goal is full-year the

Ty Silberhorn

benefit say made in shift with we even continue really of is that in that we progress now a mix. to then helps What flat Glass gain, think that did upside in that also we perspective work support Glass. and QX, comp, we're to about from fiscal some hold margin Well, at volumes then and And $XXX would as but ‘XX for looked they've the talked that's those grow now like those so I our And margins Framing we $XXX Framing, Framing. provided AMS with put or premium, tough press while improved into Glass was one-time doing full we've we within court that volumes. view is sustainable from that, mean, we Glass Framing, a in even got because seeing I QX lot the were

even margins productivity from bit manage be a that to weaken So going that see using able to within we're if hold able business. AMS path being some work markets us should our little the a that we confidence now that's underway of gives framing to

Julio Romero

last Very me. one good. just maybe Okay. for And then

You on the Sotawall you've talked the services. into progress integration earlier about made

what's now, you that ‘XX? fiscal the regards as biggest going you stand you forward guess, into with I As head to business see integrating challenge

Ty Silberhorn

has cleanup I'd really Well, done say the job part Canada. strengthen facility you big the good in of will, they're the team a just moving if that in as integration execution that to projects and of of inflow that were working racks, and

QX projects. they work those around in So that finalize frankly hit of did that them cleanup and as some some

up than So a that bit being ended had affected. little we worse

and now progression a QX. I improvement we at to we'll expect from that think, before, good I of, continued base As margin see, commented we're kind foundational that of on QX normal

QX services on how project their year. manage flow the has of for up then works their Remember low way kind a they and

think improvement, into brand not we for those that see margin up back that because that range projects we getting ended at of X% sold to them move fiscal be fully the like behind segment. were into for margin our will the model, lower on So see get back But being ‘XX, with back range we track just that X% the set finalize Sotawall and get would those we as some they under some had and probably as services. Day we they they'll that we to our we as than more that start to margin within into start then Harman into get us Investor Services think to

Mark Augdahl

so to Sotawall, And say, that would just Yes. improve through opportunity as could AMS if And AMS it's there's from infancy, an of its Sotawall as I maybe well. services part as excluded I well. in add still the integration, margins being isn't

Julio Romero

it. for best luck appreciate the Thanks the taking questions of in ‘XX. much fiscal very Got color and I there.

Ty Silberhorn

Julio. Thanks,

Operator

further no closing the conference at time. Ty to Silberhorn, remarks. this like show I for questions now I would CEO, back to turn

Ty Silberhorn

us for confident everyone Have delivering our record joining to today. ‘XX. to this thanks thanks year few And and to talk on and Well, a build our months. right. fiscal a for success day in great a in team a we'll you on big we're All ability

Operator

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

You may now disconnect.

Apogee Enterprises (APOG) 12 Apr 232023 Q4 Earnings call transcript