Apogee Wausau Group, Inc., a unit of leading glass products maker Apogee Enterprises Inc.
(APOG - Analyst Report
), has purchased the assets of Benchmark Sales Agency, Inc., operating as Custom Window Company, Inc. Terms of the deal were undisclosed.
Englewood, Colo.-based Custom Window makes historically accurate, aluminum window products that represent annual sales of roughly $10 million. Its products include projected windows for the competitive K-12 school market and low-rise office applications, self-balancing double-hung windows and historically accurate window systems.
The acquisition is expected to broaden Apogee Wausau’s (operating as Wausau Window and Wall Systems) product range and geographic footprint in the U.S. The acquisition is in sync with Apogee’s strategy to expand its architectural framing systems segment through geographic expansion, new products and domestic acquisition. The Custom Window takeover will enable the company to better serve its customers in the Western U.S. and the historical renovation market nationwide.
Apogee is a leader in technologies for the design and development of value-added glass products, services and systems. The company reported its first-quarter fiscal 2014 (ended Jun 1, 2013) results on Jun 25.
Earnings of 14 cents per share for the quarter more than doubled from 6 cents per share earned a year ago. However, it trailed the Zacks Consensus Estimate of 17 cents. Revenues rose 16% year over year to $179.3 million in the quarter, beating the Zacks Consensus Estimate of $174 million. The improvement was driven by growth across the board, especially Architectural Glass and Architectural Services segments.
Geographic growth in the domestic markets and introduction of new products are expected to contribute to revenue growth in fiscal 2014. Moreover, improvements in volume, mix, project margins and operating leverage will drive earnings.
Apogee’s backlog remains strong, which bodes well for its future performance. Focus on operational improvements, expansion in new geographies and markets, and new product launches will fuel Apogee’s revenue growth going forward. The U.S. construction is finally stabilizing and is on the road to the much-awaited recovery, which looks promising for the company.
However, macroeconomic conditions may continue to be a headwind for Apogee. Moderating global economic growth and economic uncertainty can limit its near-term revenue visibility.
Apogee currently has a Zacks Rank #4 (Sell).