Apogee Enterprises Inc (NASDAQ:APOG) Q4 2020 Earnings Conference Call - Final Transcript

Apr 02, 2020 • 09:00 am ET


Apogee Enterprises Inc (NASDAQ:APOG) Q4 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. And welcome to the Apogee's Fiscal 2020 Fourth Quarter 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]

I would now like to introduce your host for this conference call, Mr. Jeff Huebschen, you may begin.

Jeff Huebschen

Thank you, Kevin. Good morning and welcome to Apogee Enterprises fiscal 2020 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 is provided in the earnings release we issued this morning, which is also available on our website. 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, and thank you everyone for joining us this morning. I hope all of you, your families and your colleagues are safe and healthy during these challenging times. I'm going to make a few comments about our fourth quarter and how we closed fiscal 2020. Then, I'll spend some time updating you about the events that have happened since the end of our fourth quarter and how Apogee is responding to the COVID-19 crisis and its potential impact on our business. Jim will provide some additional details around the results and our financial condition. And then I will take your questions.

Let me start with the fourth quarter results. We ended the fiscal year with a solid quarter, earnings above our guidance range, led by continued strong performance in Architectural Services segment, yet all of our businesses met or exceeded expectations. And we also benefited from some favorable discrete tax items in the quarter. We continue to win new business and expand our backlog. Architectural Services grew its backlog by over $50 million to a new record of $660 million to end the year. Backlog also increased 14% in Architectural Framing Systems, and order flow in our short lead time US Framing businesses remain strong as well.

Cash flow was particularly strong in the quarter. Jim will provide more details on our financial condition. Yet, I'd like to highlight the year-over-year increase in cash flow from operations and free cash flow where we delivered over $50 million of operating cash flow in the quarter. We use this cash to continue our balanced capital deployment approach, investing in our business, returning cash to shareholders and very importantly, reducing our debt. I'd also like to point out