Apogee Enterprises CEO Joseph Puishys will retire at the end of February from the Bloomington-based company he has led since 2011.
The announcement came as the company reported second-quarter results that largely improved on results from the quarter before, which were greatly affected by the coronavirus pandemic.
Puishys, who came to the architectural glass company from Honeywell, will remain with the company as it conducts a search for his successor, according to a Securities and Exchange Commission filing on Thursday.
“I’d like to thank all of Apogee’s employees for their support and partnership over the past nine years,” Puishys said. “It has truly been an honor to lead Apogee’s team and I am proud of what we’ve accomplished.”
Under Puishys, annual company revenue grew from $583 million in 2011 to $1.4 billion in its last fiscal year ended Feb. 28. Shares have had a total return of 123% under his tenure, even with a big price dip in March because of the pandemic.
Eric Stine, a senior research analyst with Minneapolis-based Craig-Hallum Capital Group, wrote in a research note Thursday that Apogee is a “much different business” than when Puishys took over.
It is “more diversified by end market (retrofit, small glass initiative) and geography, having a more broad offering under the Apogee brand, and with an ongoing sharp focus on cost reductions and profitability improvement,” Stine wrote.
For the quarter ended Aug. 29, the company earned $17.7 million, or 68 cents per share, compared with $19.3 million, or 73 cents per share, in the same quarter last year.
While earnings per share decreased 7%, the company showed an adjusted earnings per-share increase after COVID-19 related pretax costs and other charges were accounted for.
The company’s adjusted earnings per share of 73 cents rose 1 cent from the second quarter last year and more than double the consensus Wall Street analyst expectation.
The company, which makes architectural glass and glass framing systems for commercial and industrial buildings, said the effect of COVID-19 was felt in three of the company’s four business segments as total revenue decreased 11% to $319.5 million.
“Our team turned in impressive results in the second quarter, delivering adjusted earnings growth despite a challenging economic situation,” Puishys said in a statement. “As we forecast last quarter, each of our four segments delivered increased revenue and profitability in the second quarter compared to the first quarter.”
While all four segments — architectural framing systems, architectural glass, architectural services and large-scale optical — all saw an increase in revenue over the first quarter of this year, only the architectural services unit’s revenue increased over the same period last year.
Revenue in the services business increased 20% to $73.7 million, as it worked through project backlogs.
COVID-related project delays meant less revenue for the glass and glass framing segments, while end customers for optical glass remained closed for portions of the quarter. Revenue for the architectural framing systems segment, Apogee’s largest, was $152.9 million, down 18.5%.
Shares of Apogee closed Thursday at $23.50, up more than 13%. Since the start of the year, Apogee shares have lost 30% in value.