APOG: Reports Costs for Exit/Disposal Activities

TL;DR

**APOG is incurring costs for exit/disposal activities, signaling potential restructuring.**

AI Summary

Apogee Enterprises, Inc. filed an 8-K on January 30, 2024, reporting an event from January 10, 2024. This filing indicates that the company is incurring costs associated with exit or disposal activities, suggesting a restructuring or divestiture. While specific dollar amounts are not disclosed in this summary, such activities can impact future profitability and operational efficiency, which matters to investors as it could signal efforts to streamline the business or address underperforming assets.

Why It Matters

This filing signals potential restructuring or divestiture, which could lead to short-term costs but long-term operational improvements or a more focused business model for Apogee Enterprises, Inc.

Risk Assessment

Risk Level: medium — The filing indicates costs associated with exit or disposal activities, which can be unpredictable in their financial impact and execution, posing a medium risk.

Analyst Insight

A smart investor would monitor subsequent filings for details on the nature and financial impact of these exit or disposal activities, as they could signal strategic shifts or asset sales that affect future earnings.

Key Players & Entities

• APOGEE ENTERPRISES, INC. (company) — the registrant filing the 8-K
• January 10, 2024 (date) — date of the earliest event reported
• January 30, 2024 (date) — date the 8-K was filed
• 0-6365 (other) — Commission File Number
• 41-0919654 (other) — I.R.S. Employer Identification Number
• Common Stock, $0.33 1/3 Par Value (other) — title of class of securities registered
• APOG (other) — trading symbol on The Nasdaq Stock Market LLC

FAQ

Key Financial Figures

• $0.33 — nge on which registered Common Stock, $0.33 1/3 Par Value APOG The Nasdaq Stock Mar
• $16 million — Company expects to incur approximately $16 million to $18 million of pre-tax charges in co
• $18 million — s to incur approximately $16 million to $18 million of pre-tax charges in connection with P
• $7 million — oject Fortify, including: approximately $7 million to $9 million of severance and employee
• $9 million — including: approximately $7 million to $9 million of severance and employee related costs
• $2 million — f severance and employee related costs, $2 million to $3 million of contract termination c
• $3 million — d employee related costs, $2 million to $3 million of contract termination costs, and $6 m
• $6 million — lion of contract termination costs, and $6 million to $7 million of other expenses. Cash e
• $11 million — unts, are estimated to be approximately $11 million to $13 million. The Company will record
• $13 million — ated to be approximately $11 million to $13 million. The Company will record these charges
• $12 million — s from Project Fortify of approximately $12 million to $14 million, with approximately 60%
• $14 m — Fortify of approximately $12 million to $14 million, with approximately 60% of the sa

Filing Documents

• apog-20240110.htm (8-K) — 29KB
• exhibit991toformprojectfor.htm (EX-99.1) — 13KB
• image_0a.jpg (GRAPHIC) — 7KB
• 0000006845-24-000029.txt ( ) — 180KB
• apog-20240110.xsd (EX-101.SCH) — 2KB
• apog-20240110_lab.xml (EX-101.LAB) — 23KB
• apog-20240110_pre.xml (EX-101.PRE) — 12KB
• apog-20240110_htm.xml (XML) — 3KB

05 Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities. On January 10, 2024, the Board of Directors of Apogee Enterprises, Inc. (the "Company"), approved certain restructuring actions intended to streamline its business structure, enable a more efficient cost model, and better position the Company for profitable growth (referred to as "Project Fortify"). Project Fortify includes strategic changes in the Architectural Framing Systems Segment to simplify the Segment's organizational structure and brand portfolio, and eliminating certain lower-margin product and service offerings. The Company will also implement actions to optimize processes and streamline resources in its Architectural Services and Corporate Segments. These actions will include a reduction in the Company's workforce by approximately 250 employees and the closure of a manufacturing facility and certain administrative offices. The Company broadly communicated these actions internally on January 30, 2024. The Company expects to incur approximately $16 million to $18 million of pre-tax charges in connection with Project Fortify, including: approximately $7 million to $9 million of severance and employee related costs, $2 million to $3 million of contract termination costs, and $6 million to $7 million of other expenses. Cash expenditures related to these actions, which are included in the foregoing amounts, are estimated to be approximately $11 million to $13 million. The Company will record these charges as incurred. The Company expects annualized cost savings from Project Fortify of approximately $12 million to $14 million, with approximately 60% of the savings to be realized in fiscal year 2025 and the remainder in fiscal 2026. The Company expects the actions associated with the plan to be substantially completed by the end of the third quarter of fiscal 2025. The actual timing, costs and savings associated with Project Fortify may differ from the Company's expectations and estimates and suc

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. On January 30, 2024, the Company issued a press release stating that any restructuring charges incurred associated with Project Fortify as described in Item 2.05 of this Form 8-K, are expected to be adjusted out of GAAP earnings and therefore would not impact its adjusted diluted earnings per share outlook for fiscal 2024 or 2025.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits (d) Exhibits. Exhibit Number Description 99.1 Press Release issued by Apogee Enterprises, Inc. dated January 10, 2024. 104 Cover page interactive data file (embedded within the Inline XBRL document) Certain statements within this Form 8-K may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "intend," "estimate," "forecast," "project," "plans", "goals", "should" and similar expressions are intended to identify "forward-looking statements". These forward-looking statements include statements regarding our future structure, growth, profitability, positioning, results, expenses, targets and other statements that are not historical in nature. These statements reflect Apogee management's expectations or beliefs as of the date of this release. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In particular, statements regarding the Company's restructuring and cost-savings plans disclosed in this release constitute forward-looking statements. These forward-looking statements are subject to significant risks that could cause actual results to differ materially from the expectations reflected in the forward-looking statements. Such risks include, without limitation, that: we may be unable to achieve our anticipated results from the business restructuring initiatives; implementation of the cost-saving and business restructuring initiatives may take more time or cost more than expected; the anticipated cost saving initiatives may not be achieved, or they may be materially less than anticipated; and the restructuring may result in disruption in delivery of services to our customers. More information concerning potential factors that could affect future financial results is included in the company's Ann

View Full Filing

View this 8-K filing on SEC EDGAR