Apogee Enterprises Inc (NASDAQ:APOG) Q4 2019 Earnings Conference Call - Final Transcript

Apr 11, 2019 • 09:00 am ET


Apogee Enterprises Inc (NASDAQ:APOG) Q4 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to Apogee's Fiscal 2019 Fourth Quarter Earnings Conference Call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions) As a reminder, today's conference may be recorded.

I would now like to turn the call over to Mr. Jeff Huebschen. Sir, you may begin.

Jeff Huebschen

Thank you. Good morning, and welcome to Apogee Enterprises fiscal 2019 fourth quarter earnings call. With me today are Joe Puishys, Apogee's Chief Executive Officer; and Jim Porter, Chief Financial Officer. I'd like to remind everyone that there are slides to accompany today's remarks, which are available in the Investor Relations section of Apogee's website.

During this call, we will reference certain non-GAAP financial measures. Definitions of these non-GAAP measures and a reconciliation to the nearest GAAP measures are provided in the earnings release we issued this morning which is also available on our website. Also I'd like to remind everyone that our call will contain forward-looking statements, reflecting management's expectations, which are based on currently available information. Actual results may differ materially. More information about factors that could affect Apogee's business and financial results can be found in our SEC filings.

And with that I'll turn the call over to you, Joe.

Joseph F. Puishys

All right. Thanks, Jeff. Good morning, everyone. Thanks for joining us. By now most of you have had a chance to read our press release. This morning I'd like to review our fiscal 2019 and the progress we are making on our key strategies.

We'll discuss the charge we recorded in the quarter of course and highlight our outlook and long-term direction as well as comment on our favorable end markets. I'll turn it over to Jim for more details on the quarter and our guidance.

For 2019 we made progress on many fronts, despite a few challenges during the year. We delivered on another year of growth with revenue increasing to a record $1.4 billion. We continued to see solid demand for Apogee's products and services, reflecting healthy end markets and the strength of Apogee's portfolio in the markets we serve.

Full year orders for the entire Company were up 12% compared to fiscal year '18. We ended the year with higher backlogs, driven by the long lead time parts of our business. In particular, our Architectural Services segment which is our large curtainwall installation business known as Harmon continued to show great strength. Full year revenue grew 33%.

Strong operating leverage, disciplined project selection and impressive execution at the site led to record profitability, and we finished the year with a record backlog, and a large slate of jobs about to enter backlog. In Architectural Glass, we made significant progress toward overcoming the challenges we faced earlier in the fiscal year.

We saw order growth and began to recover some share in large projects. We hired and trained nearly 400 net new production employees during the year, an