Apogee Enterprises, Inc.
- Company Name
- Apogee Enterprises, Inc.
- Stock Symbol
- Class Period
- June 28, 2018 to September 17, 2018
- Motion Deadline
- January 4, 2019
- District of Minnesota
The complaint charges Apogee and certain of its officers with violations of the Securities Exchange Act of 1934. Apogee, an industry leader in architectural products and services, engages in the design and development of glass and metal products for enclosing commercial buildings, framing and displays in the United States and nine international locations. The Company operates through four segments: Architectural Glass, Architectural Services, Architectural Framing Systems and Large-Scale Optical Technologies. The Architectural Glass segment fabricates glass used in customized window and curtain wall systems comprising the outside skin of commercial and institutional buildings. The Company claims to generate most of its revenue through its architectural glass, metal and installation businesses.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or concealed adverse information regarding the Company’s business, operations and prospects, including that Apogee lacked the labor force required to ramp up production to meet its previously announced guidance; Apogee was unable to hire, train and retain new employees; and, as a consequence, Apogee’s productivity and margins would be negatively impacted. As a result of this and other information being withheld from the market, the price of the Company’s common stock was artificially inflated, reaching a high of more than $50 per share during the Class Period.
The Class Period begins on June 28, 2018, when the Apogee issued a press release announcing the Company’s financial and operating results for the first fiscal quarter ended June 2, 2018, touting Apogee’s growth, margins and profitability. During a conference call following the earnings announcement, the Company’s CEO stated: “I want to remind everyone that our visibility, which is critical to our forecast here, goes well beyond our nearly $1 billion in booked backlog. It also includes awards that are not yet in backlog. It includes commitments and wins, bidding activity, and architectural calls. All of these indicators continue to be very positive and support an outlook for at least two-plus years of end market growth.”
Then, on September 18, 2018, the Company reported disappointing quarterly financial and operating results for the second fiscal quarter and six month ended September 1, 2018, including operating income for the Company’s Architectural Glass segment of just $1.7 million (as compared to operating income of $10.3 million in the previous year’s quarter), and reduced its financial guidance for the coming fiscal year. During a conference call following the announcement of Apogee’s financial results, defendants acknowledged that “[a]t the root of the issues was the challenge of hiring and training qualified new employees in an extremely tight labor market . . . . Should we have been better prepared for these challenges? The simple answer is yes.” As a result of these disclosures, the Company’s stock price declined nearly 12%.