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Apogee Enterprises Reports a 10.9% Drop in Net Income for Q2 2023
By USInMinutes - Sep 19, 2023, 12:57 PM ET
Last Updated - Sep 19, 2023, 12:57 PM EDT
Revenue Declines by 5% in the Second Quarter
Apogee Enterprises, Inc.(APOG), a leading provider of architec tural glass, framing systems, and services, has released its financial results for the second quarter of 2023. The company reported a 10.9% decrease in net income compared to the same period last year. Additionally, revenue declined by 5.0% during the quarter. Let's delve into the details of Apogee's financial performance and business segments.
Net Income Decline
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Apogee's net income for the three months ended August 26, 2023, was $33.3 million, down 10.9% from $37.4 million in the same period in 2022. This decrease reflects the challenges the company faced during the quarter.
Revenue Decline
The company's revenue for the second quarter of 2023 amounted to $353.7 million, compared to $372.1 million in the prior year, representing a 5.0% decline in net sales.
Segment Performance
Architectural Framing Systems: Segment net sales decreased by 8.1% to $158.8 million in Q2 2023 compared to $172.9 million in Q2 2022.
Architectural Glass:This segment performed well, with a 21.6% increase in net sales, reaching $94.1 million in Q2 2023, up from $77.4 million in Q2 2022.
Architectural Services: This segment faced challenges, reporting a 17.5% decline in net sales, amounting to $88.1 million in Q2 2023 compared to $106.7 million in Q2 2022.
Large-Scale Optical: Net sales in this segment declined by 6.0%, reaching $23.6 million in Q2 2023, down from $25.2 million in Q2 2022.
Operating Income: The company reported an operating income of $40.6 million for Q2 2023, reflecting a robust 26.4% increase compared to $32.1 million in Q2 2022.
Balance Sheet Highlights
- Apogee's total assets as of August 26, 2023, stood at $908.6 million, slightly down from $915.4 million in February 25, 2023.
- Current assets amounted to $376.3 million, with cash and cash equivalents at $18.4 million.
- Long-term debt was recorded at $145.7 million.
- Shareholders' equity increased to $432.3 million.
Cash Flow Analysis
For the six months ended August 26, 2023, Apogee reported:
- Net earnings of $56.9 million.
- Net cash provided by operating activities of $62.6 million.
- Capital expenditures of $15.0 million.
- Net cash used by investing activities of $15.1 million.
- Net cash (used) provided by financing activities of ($50.1) million.
- A decrease in cash, cash equivalents, and restricted cash by $2.6 million, totaling $18.4 million at the end of the period.
Apogee Enterprises faced headwinds during the second quarter of 2023, with a decline in both net income and revenue. The company's performance across various segments varied, with architectural glass showing strength while architectural services faced challenges. Apogee continues to focus on managing its cash flow and maintaining a strong balance sheet in a dynamic market environment.
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