Apogee Enterprises, Inc. (NASDAQ:APOG) Q1 2024 Earnings Call Transcript

Matt Osberg: Yes. Thanks, Julio. Appreciate the question and happy to be talking to everybody this morning. So, as you think about our outlook and just, kind of, I know you asked specifically on Glass, but think about it from kind of the top, right? And we talked about our ability to raise our outlook for the year, primarily based on the performance we had in our first quarter and some of our increased expectations in Q2. So, I would say that a lot of that increased confidence in the second quarter is going to be driven by Glass. And so as you think about how that would phase-out. I think we’ve seen probably a high point for the year in the first quarter, but we’ll still see I think some strength in Q2 and then that continuing to maybe normalize throughout the back half of the year and get into that range that we talked about.

Julio Romero: Got it. That’s very helpful. And then just thinking about the cash flow in the first quarter was pretty strong. Just talk to the expectations for cash flow for fiscal 2024?

Matt Osberg: Yes. You probably heard in my script, we talked about operating cash flow and free cash flow growth for the year. The big improvement we had in Q1 was primarily driven by, I would say, unusual activity in working capital in the first quarter of last year. So, we’re very pleased to have the improvement that we did in Q1 on its own with a strong cash flow start to the year and we expect to be able to continue to deliver cash flow throughout the quarters. Remember, we said this is usually the lowest cash flow quarter for the year. So, you do expect sequential improvement as we move through the year from where we are in Q1 and getting to a place where we have good cash flow for the year and we’ve got growth both in operating and free cash flow for the year.

Julio Romero: Really helpful. I’ll pass it on. Thanks.

Ty Silberhorn : Thanks, Julio.

Operator: That concludes our question-and-answer session. I’d like to turn the call back to Ty Silberhorn for closing remarks.

Ty Silberhorn: All right. Well, again, I would like to recognize the strong efforts of our team in delivering a great start to the year and our ability to build on that. So, we’re excited to share that progress with you as we go through the next few quarters. Thanks for joining us today. And I hope everyone has a great weekend.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.