Apogee hits its own jackpot with Las Vegas condo boom

Bloomington-based Apogee Enterprises Inc. has struck gold with the condo market, especially in Las Vegas, where 75 to 100 new high-rise condo projects are planned or under construction. Apogee, which makes energy-efficient architectural windows that can be color-tinted, is involved in at least 15 major condo or mixed-use projects in Las Vegas right now, said Brad Austin, senior vice president of Viracon, Apogee´s Owatonna-based subsidiary. Viracon will make windows tinted with real 24-carat gold that will adorn the Trump International Las Vegas and The Residences at the MGM Grand casino, Austin said. Apogee turned in solid first-quarter operating results this week thanks, in part, to "strength in high-end condos, government and institutional work," said CEO Russ Huffer in a conference call with investors. Apogee, which also makes picture-frame and automotive glass, reported income from continuing operations of $3.6 million, or 14 cents per share, up 14 percent this quarter compared to earnings of 11 cents per share the same quarter a year ago. First-quarter revenue of $164.1 million represented an increase of 12 percent compared to the same period a year ago. The company attributed a majority of the growth to its architectural segment, making up about 80 percent of Apogee´s revenue in the first quarter. With few new high-rise office buildings under construction around the country, Apogee has been able to tap into the condo boom that has picked up steam in urban markets from coast to coast, including Minneapolis. In previous years, the condo market used fairly inexpensive windows, but with energy prices going up, developers of condos and mixed-use projects are more apt to pick higher-end windows, said analyst Tyson Bauer of Wealth Monitors Inc. in Overland Park, Kan. Bauer follows Apogee, but does not have a banking relationship or own any shares of the stock. In warm climates like that of Las Vegas, energy-efficient windows are a must to keep the buildings cool, he said.