Apogee Enterprises, Inc. (NASDAQ:APOG) Q2 2024 Earnings Call Transcript

We’re always introducing or working with customers from a new product perspective. But I would say right now, as we look at those, we don’t see things other than the coder investment we made in Large-Scale Optical. We don’t see things that are going to take a major capital investment at this point to introduce a dramatically new product offering into the market space. As we look at diversification in the portfolio and you think about adding new products that really move us into other adjacencies within in the segments we’re already playing in. Acquisitions is likely a way for us to step into that.

Jonathan Braatz: Sure. Sure. When you speak about new geographies organically speaking. We’re not talking about a new footprint but just expanding existing facilities and making those capital investments in current facilities as opposed to new greenfield plants?

Ty Silberhorn: It could be a combination of both, but I think you’d see us be thoughtful in how we do that. I like a real options approach. So if we think there’s an untapped market that we’re really missing an opportunity on, let’s say, on the West Coast. How would we step into that in an optional way that gives us some presence in our ability to serve the local market before we would make major investments in terms of manufacturing, say, coding, extruding capabilities, et cetera. So as we look at those geographies, I think, we can reach some of those with some additional capacity in existing facilities, freight logistics and our ability to have short lead times will limit just how much we can do there. So even an incremental step of having a distribution center, warehouse, et cetera, there’s small things we can do to make some minor investments to get a footprint in a market and then prove that out before we make some significant capital investments in equipment.

Jonathan Braatz: Okay. Sounds great. Thank you very much.

Ty Silberhorn: Thanks, Jon.

Operator: Thank you. I’m sure there are no further questions in the queue. I would now like to turn the call back over to CEO, Ty Silberhorn for closing remarks.

Ty Silberhorn: All right. Well, thanks, everyone, for joining us today. Another great quarter for Apogee. We couldn’t be more proud of our team and the accomplishments that we’ve delivered to date. And as we touched on, we still see a lot of opportunities for our business as we move ahead. We look forward to talking to everyone in the next quarter. Have a great day.

Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.