Research Desk Line-up: GMS Inc. Post Earnings Coverage

LONDON, UK / ACCESSWIRE / July 6, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Apogee Enterprises, Inc. (NASDAQ: APOG), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=APOG, following the Company's release of its first quarter fiscal 2018 earnings results on June 22, 2017. The glass products Company's revenue and earnings numbers lagged behind market estimates. The Company also updated its fiscal 2018 guidance based on EFCO's acquisition. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the General Building Materials industry. Pro-TD has currently selected GMS Inc. (NYSE: GMS) for due-diligence and potential coverage as the Company reported on June 29, 2017, its financial results for Q4 and fiscal year which ended on April 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on GMS Inc. when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on APOG; also brushing on GMS. With the links below you can directly download the report of your stock of interest-free of charge at:

http://protraderdaily.com/optin/?symbol=APOG

http://protraderdaily.com/optin/?symbol=GMS

Earnings Reviewed

For the thirteen weeks ended June 03, 2017, Apogee reported revenues of $272.31 million, up 10% compared to revenue of $247.88 million in Q1 FY17. The Company's revenue numbers fell marginally behind Analysts' expectations of $273 million.

For Q1 FY18, Apogee posted operating income of $24.1 million, down 8% on a y-o-y basis. The Company's adjusted operating income for the reported quarter totaled $26.8 million up 2% compared to the year-ago comparable period. Apogee's operating margin was 8.9%, or 9.9% on an adjusted basis, against 10.6% in the prior year's corresponding period.

Apogee reported net income of $16.10 million or $0.56 per diluted share as compared to net income of $17.72 million or $0.62 per diluted share for Q1 FY17. The Company posted adjusted earnings of $0.62 per diluted share, up 2% on y-o-y basis. Apogee's adjusted results exclude $0.07 per share of amortization of short-lived intangibles associated with the acquired backlog of Sotawall, and $0.02 per share of acquisition-related charges for Sotawall and EFCO, partially offset by $0.03 per share of tax impact. The Company's earnings lagged Wall Street expectation of $0.71 per share.

Segment Results

For Q1 FY18, Apogee's Architectural Glass segment revenues totaled $97.7 million up 5% on a y-o-y basis, on mid-size project growth in the United States. The segment's operating income was $9.3 million, down 2% while operating margin was 9.5% compared to 10.2% in the prior year's same quarter. Planned costs related to the startup of oversize glass production impacted the operating margin by 100 basis points.

Apogee's Architectural Framing Systems revenues surged 36% to $110.5 million, including the addition of Sotawall and 8% growth from the other segment businesses. The segment's operating income grew to $12.0 million, up 17% on a y-o-y basis, while adjusted operating income surged 37% to $14.0 million in the reported quarter. In Q1 FY18, Architectural Framing System's had an operating margin of 10.8%, or 12.7% on an adjusted basis, compared to 12.6% in Q1 FY17. Both the fiscal 2018 operating margin and adjusted operating margin were negatively impacted by approximately $1.1 million, or 100 basis points, due to a receivable write-off related to a customer bankruptcy. The segment's backlog grew $10 million sequentially to $255.1 million.

For Q1 FY18, Apogee's Architectural Services revenues totaled $50.2 million, down 20% on a y-o-y basis, on the timing of project activity. The segment's operating income slumped 75% to $0.8 million while operating margin was recorded at 1.6%, compared to 5.1%, due to lower volume leverage on project management, engineering, and manufacturing capacity. The segment's backlog grew almost $40 million on a sequential basis to $292.9 million.

Apogee's Large-Scale Optical Technologies segment recorded revenues of $18.6 million, down 7% on a y-o-y basis, attributed to the timing of customer orders. The segment's operating income totaled $4.1 million for the reported quarter, down 13% on a y-o-y basis, while operating margin was 21.8%, compared to 23.2% in Q1 FY17 due to lower volume.

Financial Condition

Apogee's cash dividends in the quarter totaled $4 million, and first-quarter capital expenditures, primarily for productivity and capabilities, were $11.4 million. The Company's debt at the end of the reported quarter was $71.4 million, and Apogee expanded its revolving credit facility early in Q2 FY18 to fund the $192 million acquisition of EFCO.

On June 22, 2017, Apogee's Board of Directors announced it has declared a quarterly cash dividend of $0.14 per share, payable on July 25, 2017, to shareholders of record on July 10, 2017.

FY18 OUTLOOK

Apogee announced that it is updating its full-year fiscal 2018 outlook to incorporate the June 12 acquisition of EFCO as well as Sotawall and EFCO acquisition-related charges and amortization of short-lived intangibles associated with a backlog.

For FY18, Apogee is forecasting revenue growth of 26% to 28%. The Company expects operating margin of 10.5% to 11.0%, with the addition of EFCO's revenues at a mid-single digit operating margin. Apogee is estimating earnings of $3.31 to $3.51 per diluted share for FY18 and adjusted EPS of $3.65 to $3.85 for the fiscal year. The Company is expecting to incur capital expenditures of approximately $60 million for FY18.

Stock Performance

On Wednesday, July 05, 2017, the stock closed the trading session at $57.22, slightly down 0.90% from its previous closing price of $57.74. A total volume of 661.60 thousand shares has exchanged hands, which was higher than the 3-month average volume of 293.68 thousand shares. Apogee Enterprises' stock price rallied 2.18% in the last one month, 3.90% in the past six months, and 23.99% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 6.83%. The stock is trading at a PE ratio of 19.64 and has a dividend yield of 0.98%. The stock currently has a market cap of $1.62 billion.

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