Apogee Enterprises, Inc.

Hello, and welcome to Apple G Enterprises Inc. Q2 2024 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during this session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I will now like to hand the conference over to Jeff Heption, so you may begin.

Thank you, Tawanda. Good morning, and welcome to Apogee Enterprises' fiscal 2024 second quarter earnings call. With me today are Ty Silberhorn, Apogee's chief executive officer, and Matt Osberg, chief financial officer. I'd like to remind everyone that there are slides to accompany today's remarks. These are available in the investor relations section of Apogee's website. During this call, we will reference certain non-GAAP financial measures. Definitions of these measures and reconciliation to the nearest GAAP measures are provided in the earnings release and slide deck we issued this morning. I'd also like to remind everyone that our call will contain forward-looking statements. These reflect management's expectations based on currently available information. Actual results may differ materially. More information about factors that could affect Apogee's business and financial results can be found in today's press release and in our SEC filings. And with that, I'll turn the call over to you, Ty.

Thank you, Jeff. Good morning, everyone, and thanks for joining us. Apogee has delivered another terrific quarter as we continue to advance our strategy. Let me touch on some highlights from the quarter and connect those to how our strategy continues to drive sustainable improvements in our business. Then I'll turn it over to Matt for more details on the quarter and our outlook. Let's start with the highlights, which are on page four in our presentation. Overall, this was another strong quarter that continued the positive momentum we've established the past two years. We are especially pleased to report an operating margin that exceeded our 10% target for the first time since we established our financial goals in late 2021. This margin expansion drove adjusted earnings per share to a new quarterly record. I'm proud of our team for the work they've done to achieve these milestones. Just as importantly, we've demonstrated that we can meaningfully grow profit dollars and cash flow even in an environment without meaningful volume growth. Once again, Architectural Glass led the way, continuing their revenue and profit growth trend. As a reminder, when we began our strategic transformation two years ago, the glass segment had operating margins in the low single digits. We've now achieved eight consecutive quarters of sequential margin improvement. I'd like to recognize the entire GLAS team for this tremendous success. Our improved results are being driven by our three pillar strategy, which is highlighted on page five in our presentation. We've made great progress toward becoming an economic leader. We better defined our target markets, We're focused on differentiated products and services. We've built more competitive cost structures, and we've made great strides to improve operational execution. In our second pillar, actively managing the portfolio, we've taken steps to shift our portfolio to higher margin offerings, which drive improved ROIC performance. We're making investments to scale and grow our top performing businesses. We've implemented focused improvement plans to strengthen underperformers. And we are increasing the mix of differentiated offerings across our portfolio. Finally, we are strengthening our core capabilities. The foundation of this is deploying the Apigee Management System, which is our approach to lean and continuous improvement. We are also continuing our shift from a decentralized operating model to one with center-led functional expertise that better supports the needs of our business. And we are improving our approach to talent management and talent development at all levels of the organization. As we move forward, we see significant opportunities to continue to build on this success. When we announced our new financial goals in 2021, we had operating margins in the low to mid single digits, and we were not earning our cost of capital. As we began to execute our strategy, improving margins and ROIC was the primary focus, especially in glass and framing systems, which were underperforming their potential. In several cases, we made the strategic decision to move away from lower margin sales where we did not have differentiated offerings. Now that we have substantially improved our margins and are earning above our cost of capital, it is appropriate to shift more focus to driving profitable revenue growth. We are making strategic investments that will enable organic growth, We are leveraging our improved execution and service levels to gain market share. We are working to further diversify our project mix in the higher growth sectors. And we continue to explore potential acquisition opportunities that support our strategy, accelerate our growth, and our diversification. These efforts will create opportunities across the enterprise to drive above market growth in the years ahead. We will do this while sustaining the things that have made us successful these past two years, staying focused on driving productivity and execution, carefully managing our cost structure, and further strengthening our results-driven culture. With that, let me turn it over to Matt.