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•	Solid execution, project backlogs and market conditions drove strong revenue growth, earnings and free cash flow in the quarter

•	Continued progress with recent acquisitions, revenue diversification and operational improvements position Apogee for stable, long-term earnings and free cash flow growth

•	Apogee is raising its fiscal 2019 guidance for earnings and margins, while affirming its outlook for full-year revenues.

•	Continued backlog growth and positive industry fundamentals

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Revenues of $336.5 million were up 24% over the prior year period, driven by acquisition-related and organic growth in Architectural Framing Systems and growth in Architectural Services and in Large-Scale Optical Technologies. This was partially offset by an expected timing-related decline in Architectural Glass. As anticipated, on an organic basis, excluding the EFCO acquisition, revenues were comparable year-over-year.

•	Operating income was $22.0 million, down from $24.1 million a year ago, as a result of the timing-related decline in sales and operating leverage in Architectural Glass, partly offset by higher contribution from Architectural Services. Adjusted operating income was $24.9 million, compared to $26.8 million in the prior year.

•	Earnings per diluted share were $0.54, versus $0.56 in the prior year period. Adjusted EPS was $0.62, consistent with the prior year.

•	Free cash flow was $16.0 million in the quarter.

•	See Reconciliation of Non-GAAP Financial Measures at the end of this release.

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Revenues of $179.0 million were up 62% from a year ago, reflecting sales from EFCO (acquired in the prior-year second quarter) and robust growth in the company’s legacy businesses. This was partly offset by a decline in Sotawall revenues due to project timing, as expected, and a difficult comparison to a strong fiscal 2018 first quarter. Segment revenue growth reflected an expanding geographic presence in North America, as well as new products. Revenues rose 3% organically, excluding the EFCO acquisition, versus prior year.

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Operating income was $12.3 million, compared to $12.0 million in the prior year; adjusted operating income was $15.2 million, compared to $14.0 million. Operating margin was 6.9%, compared to 10.8% in the prior year, as anticipated due to the inclusion of lower margin EFCO sales. Lower Sotawall sales also impacted margins, due to the businesses’ operating leverage, though this was offset by significant, sustainable margin improvements in the segment’s remaining legacy businesses.

•	Segment backlog increased to $427.0 million, from $405.7 million a quarter ago and $255.1 million a year ago, and the project pipeline and bidding continue to be solid.

•	Revenues of $76.9 million were down 21% from a year ago, with soft volumes early in the quarter based on the timing for customer orders.

•	Operating income was $1.6 million and operating margin was 2.1%, declining from $9.3 million and 9.5%, respectively, in the prior year. This was a result of lower volumes.

•	Revenues of $70.7 million were up 41% versus the prior year, as the business executed on the substantial backlog booked over the past year, as expected, and against easier prior year comparisons.

•	Operating income was $5.2 million and operating margin was 7.3%, up significantly from $0.8 million and 1.6%, respectively, in the prior year period, due to volume leverage and strong operating performance.

•	Segment backlog increased to $439.1 million, from $426.3 million a quarter ago and $292.9 million a year ago.

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•	Revenues of $20.8 million were up 12% versus the prior-year period, on strong core picture framing demand, product mix and growth in new markets.

•	Operating income was $5.0 million, up 23% from a year ago. Operating margin rose to 24.0% from 21.8% a year ago, driven by volume leverage and favorable product mix.

•	Revenue growth of approximately 10 percent.

•	Operating margin of 8.9 to 9.4 percent.

•	Adjusted operating margin of 9.2 to 9.7 percent.

•	Earnings of $3.35 to $3.55 per diluted share, up from $3.30 to $3.50 previously.

•	Adjusted EPS of $3.48 to $3.68, up from $3.43 to $3.63 previously.

•	Adjusted fiscal 2019 earnings guidance excludes the after-tax impact of amortization of short-lived acquired intangibles associated with the acquired backlog of Sotawall and EFCO of $3.8 million ($0.13 per diluted share).

•	Capital expenditures of $60 to $65 million.

•	Tax rate of approximately 24 percent.

•	Architectural Glass segment consists of Viracon, the leading fabricator of coated, high-performance architectural glass for global markets.

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Architectural Framing Systems segment businesses design, engineer, fabricate and finish the aluminum frames for window, curtainwall and storefront systems that comprise the outside skin of buildings. Businesses in this segment are: Wausau, a manufacturer of custom aluminum window systems and curtainwall; Sotawall, a manufacturer of unitized curtainwall systems; EFCO, a manufacturer of aluminum window, curtainwall, storefront and entrance systems; Tubelite, a manufacturer of aluminum storefront, entrance and curtainwall products; Alumicor, a manufacturer of aluminum storefront, entrance, curtainwall and window products for Canadian markets; and Linetec, a paint and anodizing finisher of window frames and PVC shutters.

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•	Architectural Services segment consists of Harmon, one of the largest U.S. full-service building glass installation companies.

•	Large-Scale Optical segment, which leverages the same coating technologies used in the company’s Architectural Glass segment, consists of Tru Vue, a value-added glass and acrylic manufacturer primarily for framing and display applications.

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Adjusted operating income, adjusted operating margin, adjusted net earnings and adjusted earnings per diluted share (“adjusted earnings per share or adjusted EPS”) are used by the company to provide meaningful supplemental information about its operating performance by excluding amounts that are not considered part of core operating results when assessing performance to improve comparability of results from period to period. Examples of items excluded to arrive at these adjusted measures include the impact of acquisition-related costs, amortization of short-lived acquired intangibles associated with backlog, and non-recurring restructuring costs.

•	Backlog represents the dollar amount of revenues Apogee expects to recognize in the near-term from firm contracts or orders. The company uses backlog as one of the metrics to evaluate near-term sales trends in its business.

•	Free cash flow is defined as net cash provided by operating activities, minus capital expenditures. The company considers this measure an indication of its financial strength.

•	Days working capital is defined as average working capital (current assets less current liabilities) multiplied by the number of days in the period and then divided by net sales in the period. The company considers this a useful metric in monitoring its performance in managing working capital.

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