Recag/C4_28 · Datasets at Hugging Face

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Thanks. Hey, good morning, guys.
Yes, may be we could -- Good morning. Just start with framing. Obviously, EFCO's still struggling. Can you kind of talk a little bit about the core framing business versus EFCO in terms of kind of the margin performance on the core framing?
Sure, Chris. This is Jim. I'll cover that. I mean, our kind of core businesses, when we look at legacy businesses that have been in our portfolio for a number -- for a long time, I mean, we continue to see nice growth and margin expansion across those businesses in the fiscal '19 and see that going forward as well.
The -- it sounds like by Q3 of this year, most of the troubles -- troubled EFCO contracts will be completed. So reasonable to assume that -- I don't know, from your remarks last quarter and then forward in terms of improved EFCO -- improved framing margins is reasonable?
Yes. Chris, this is Joe. I also want to comment. EFCO is -- the core business of EFCO is performing better.
We're starting to see productivity. I had mentioned orders were very strong. I put a new sales leader in place in the second half of last year. He was our -- one of our top guys here at Apogee.
He has had experience at our Harmon installation business, at our Wausau window and wall. And he is the fellow that I charged with creating and developing our retrofit business. We moved him down to join the team at EFCO. We're starting to see really good rewards from that.
The orders have to come first. Q4 was strong in orders. Q1 has remained very strong. We're only 5.5 weeks into our new year, but it's still important.
And so the core EFCO business is starting to look good. The overhang from these legacy projects, one in particular has been substantial, and the distraction of that goes away. We're almost done with manufacturing the product, and we're more than halfway through the installation. We should be substantially complete by August with the installation at the field site, at the project site.
And then after we get through that, I can focus on some recovery efforts that I mentioned on the call.
And Chris, within -- specifically within framing systems, that legacy work should really kind of be through there in the first half of the year. So our expectation is to see that margin improvements really starting in Q3. Turning over to Q4, and knowing that we have a little bit of seasonality where Q3 is stronger than Q4 in framing systems.
Got it. That's helpful. Jim, you had mentioned anticipated increased corporate costs from higher legal and advisory. Can you maybe just talk to that a little bit?
Yes. I mean, I think really, the bottom line is on our corporate line, we're probably estimating at this point about $2 million of increased cost in the corporate line. And it's a variety of legal expenses associated with various activities kind of outside the core business as well as legal activities related to the legacy projects and the charges that we talked about and those types of things.
Got it. All right. Let me jump back in line. I appreciate it guys.
Thanks you. And our next question comes from the line of Eric Stine with Craig-Hallum. Your line is open.
Maybe just sticking with EFCO. I mean -- and this may be a tough question, but any -- I mean, any thoughts on your confidence level regarding the ability, whether it's insurance or legal, to recover some of this? I mean obviously, you've got a -- would seem to have a pretty good leg to stand on. And I know it's part of our process. But just maybe thoughts on how you see that progressing.
Yes. So Eric, I -- let me be clear and I kind of fumbled my -- my tongue was fumbling in the call. Any recoveries are not included in the charges, they're not included in the $3 and $3.20 guidance that Jim highlighted today. So obviously, they are upside.
I don't want to comment on anything and then lower our odds of success. I do feel confident that we have certain paths we can take. We obviously have insurance. We also have actions -- other actions we plan to take.
I'm just going to be silent on those and hopefully deliver some good news in the future year or years. And I'll have to leave it at that, Eric.
Got it. No, understood. Well, and this question maybe in that same category, but just in terms of the investment in glass. And it was -- thank you for quantifying that amount, and I know you're not sharing a whole lot.
But just from a high level, I mean, is that -- -- should we think of that as new geography or just a new part of our market for you? If you're able to answer that.
Yes. No, I appreciate the question. And I would have preferred to say nothing today, Eric. I don't want to gift wrap a package to competitors and I know you understand that.
The shareholders would be upset and I would be distraught. But we had to say something because of the overhang. glass is improving more than 150 basis points year over year. So we could not ignore that.
We would have had more questions, we'd go down a rat hole. And unfortunately, we'd be forced to mislead by not talking about it. That said, I believe by the end of the first quarter and certainly by some point in the second quarter, we'll be able to talk more thoroughly about this effort. It's been well thought out.
It is organic. I don't want anyone to believe we have an acquisition. And it is not related to further headcount adds in our existing facility. But it was important to highlight that.
But beyond that, Eric, I'm going to have to ask you to hold on.
Yes. No, that's helpful. OK. Maybe last one for me.
I'm interested, Joe, in your commentary, you talked about a large slate of jobs set to enter backlog in the services business. And I know that you have that from time to time, but maybe if you could just talk about, on top of the growth that you saw this quarter, how that large slate of jobs might compare to the typical quarter or maybe year over year, some way to make a comparison there.
Yes. Our installation business has done an amazing job of project selection over the last several years. Actually, their efforts on project selection began about seven years ago and has been paying dividends. They -- field execution at the sites.
I used singular word earlier when I said site. I didn't need to say that. At the construction sites, they've done a phenomenal job. So there's two parts of the company: The selection and the design engineering of the curtain wall solution, and then the other half of the company is at the project site going up the side of the building.
They've done a phenomenal job. Their backlog grew substantially in the fiscal-year '19. It -- I'll go out on a limb and tell you, I expect the first quarter backlog will expand again. And they just have an early substantial slate of jobs that they've been awarded but we're not through the contracting process yet.
So they will enter backlog late this quarter and into Q2. And there's a pretty large slate of projects that will be awarded, so some won, that we're active on many of them and feel good about our chances on some core projects. So we believe the momentum will continue on an upward trajectory for that business. It is literally impossible in that world, when your average win is in excess of $20 million, it's literally impossible to have the projects roll in so that your revenue stream is steady.
We've tried to. But from the time you are verbally awarded a project to the time you actually start to revenue it, it's usually a year. And that lumpiness, as projects get pushed out, it's literally impossible to have a smooth flow. If you look at that business kind of over a 24-month cycle, which frankly based on award to revenue flow, it's probably more appropriate, you can see the business performance has been steady as opposed to some of the year-over-year lumpiness.
The pipeline also allows us to maintain that disciplined project selection. We don't get desperate to go after risky jobs because of a hole in the pipeline. So the pipeline is very strong, you'll see backlog increase in Q1. Beyond that, I don't want to get into backlog projections.
But as I mentioned, we've got more than $100 million in backlog in that business than we did a year ago. And that -- look what happened after the last -- after the year after that pipeline, we had a record year. So you say, well, why isn't F '20 going to be even better? It's just because of the flow of work that we have. There's a lot more in the second year, meaning F '21, than there was in the second year just a year ago.
We liked it. We liked the problem. And we obviously hope the business continues to outperform expectations.
Joe or Jim, on glass, any sense how much the weather-related disruptions impacted margins? I know it was a challenging quarter from that perspective. And then should we -- understanding some of the headwinds to the year, should we see some sequential progress into the first quarter?
Yes. Let me give you -- Jim will give you the detailed answer, Brent. Let me just tell you that it was unprecedented, what happened in February. The amount of -- I mean, there were a mandatory closure of the highways.
It was bizarre. We here in Minneapolis had easy weather -- or relatively easy. Southern Minnesota one hour away, highways were closed. The National Guard was trying to rescue people on the highway.
I think we had seven days of weather-related production shutdowns, mean -- and I think we had about 14 shifts of production that we lost. Because it happened in February, I didn't have a chance to make it up later in the quarter. That was the end of the quarter. It impacted our large-scale optical factory as well.
We don't call it out because the business is much smaller, but it impacted that business as well. So it was real. The basis points impact or the earnings per share impact is -- I'll let jim comment on it.
Yes, Joe, I'll take that. I mean, specifically, Brent, related to architectural glass, we estimate that in the quarter, it had over 100 basis point drag on operating margins of that segment. And as Joe had described it, I mean it was probably kind of split between a little bit of loss of revenue which really wasn't material. But not just the plant shutdowns but having many days where we had staffing storages because employees couldn't get to the factory just led to productivity challenges in the business.
So in the quarter, as I said, it's a little over 100 basis points. And that should -- that goes away.
Yep. OK. And then you guys are projecting 7% margins in that segment this year. Understand some of these investments are going to weigh on margins a little bit as we go through the year.
Is it your expectation to get back to double digits in this business as those costs kind of go away?
Absolutely. We -- as we continue to improve our productivity, get this project launched, that will give us some head -- tailwinds on revenue growth and margin expansion. Without question, this business has to get back to double digits.
And as we have been saying, our expectation is as we get to the end of the second quarter, we expect to be at that run rate. So we expect the second half of the year to be at that double-digit operating margin level.
Got it. The installation business, great. I mean, obviously, a really great year. Joe, I want to get your thoughts.
I know you want to manage kind of how large that business gets, the piece of the whole pie. But does this year's performance change at all kind of your thresholds for how large you want the business to get?
Yes, we don't want this to be a $500 million part of our portfolio as a public company. It is obviously a bit of a challenge. For my 7.5, almost eight years I've been here, we've never operated differently just because we're a public company, but it's a headache, clearly. The business has continued on an upward trajectory for all these eight years.
I -- we still have room for growth. We're not going to add another, let's call it, shift of project managers and engineers because that would be problematic when a slowdown happens. So we can continue to grow the business. I think the revenue of approximately $300 million are where I'd like to be at -- in the -- as we approach the top of the cycle.
And maybe in the low 200s at the bottom end of a cycle at lowest. But I think our -- my expectations on operating margin, Brent, admittedly, are now higher. The business has performed better in all aspects, project selection and execution. I'm very proud of the team.
We talk about F '20 as a return to really great results. F '20 is going to be at historically high levels for that business. And we shouldn't talk about it in any other manner. It just won't be as powerful as the F '19 results, but the backlog is better, as I mentioned, than a year ago.
I hope the projects in backlog will prove to be better than the margin that we just experienced. Jim mentioned maturity. That's a key factor. The age of our projects is younger in F '20 than it wasn't F '19.
And that's important. As we close out projects, we tend to take good news later in the projects for obvious reasons. If we ever have bad news, we take it immediately. But as we execute well, you see a little bit more margin pickup as projects progress to the end of the installation.
Our F '20 maturity is a little bit lower so we've been little conservative on our expectation there. I think the business will continue to perform extremely well. And I would say my margin expectations of a stretch goal of getting to 10% someday are no longer a stretch goal. I believe that that can be more of our norm than at the peak markets.
Got it. Last one, if I could. Just sticking with that segment, Joe. I understand the long lead times kind of associated with it and obviously factored that into the outlook.
Does seem like a really strong market right now. I mean, would you agree there's still opportunities to kind of fill in some holes through the year? Or is that just work you don't really necessarily want to pursue?
Well, they can still win projects that will have beginning revenue flows in F '20. It -- as we get to this point in the calendar, it's most projects that they get awarded will have very little revenue flow, some design engineering. So they can fill in a few holes, but it's -- everything we're booking now will be for F '21 and beyond. Projects do slip out, sometimes, they pull forward.
So our confidence in our forecast for that business is pretty solid. Filling in more holes would be a challenge at this point in the calendar year.
OK. Great. Thank you. I'll turn it over.
Hey, good morning. Thanks for taking the questions.
Yes. Hey, Julio. Good morning.
I wanted to ask about the retrofit initiative. Nice job growing that about $50 million for the year. Can you just give us a refresher on what the margins look like for that work? And what would be a fair expectation for retrofit revenues for the upcoming year?
Yes, the margins are generally reflective of our existing businesses. All the revenues do go through our current segments. But this is business we would not have had without this initiative. It is what we call a make market.
You're convincing customers, you're working with customers kind of on a project basis. There's often not competition. You're a partner, the project either goes forward or it doesn't. I believe when I came here, I brought this initiative.
We had a massive effort in this in the industry I came from, which was on the inside of buildings. It tends to be anti-cyclical at times. I want to point out the $50 million were awards or orders. The revenue stream follows that.
I still believe we can get to $100 million as an annual impact. We have added to the team. We're working on further expanding our footprint across the geography of the U.S. with this initiative.
We've hired energy engineers and sales people for this. They collaborate with our framing systems businesses. And it usually involves pulling through our own glass. It's typically not the installation target market for us, so we're usually using regional installers, but it does use our glass, our window and wall systems, our finishing capability.
And I'll continue to push this initiative going forward. And as I said, I hope to see $100 million a year before I retire.
OK, very good. And just on the capex, $60 million to $65 million, how much of that would be maintenance versus growth?
OK. Very good. I'll hop back in the queue. Thanks very much.
OK. Chelsea, can you see if there are any more questions from any of the listeners?
I'm not showing any further questions at this time. I'll now turn the call back to Mr. Joe Puishys for closing remarks.
OK. Thank you, Chelsea. And all of our investors and analysts, thank you for listening today. I'll be meeting with many folks over the next week on the road.
Jim and I are available, and Jeff, to follow up phone calls. I know we had a lot on the table today. The good news is I believe our fiscal '20 guidance is extremely realistic and we look forward to delivering on the guidance we provided today. And look forward to our next call with all of you.
Thank you, have a great day.
Officer Ryan Stone, who was under investigation, was targeted because he's a whistleblower, his attorney says.
SPRINGFIELD, Ore. -- The Springfield police officer who was placed on leave after allegedly using excessive force is back on the job, and his attorney claims he's being targeted because he's a whistleblower.
Amber Fossen, a spokeswoman for the city, confirmed that Officer Ryan Stone went back to work Dec. 20 after being placed on leave on April 12.
Stone's conduct was called into question after he arrested a man named Austin Stewart, who was allegedly jaywalking near the intersection of Highway 126 and Main Street on April 7.
KEZI 9 News has obtained the police dash camera video of that arrest.
In the video, you can see Stone asking Stewart for his name and explaining why he stopped him. Later Stone asks Stewart to sit on the curb before throwing him to ground. Soon after you can hear Stone asking Stewert to put his hands behind his back and then using his Taser on him.
All charges against Stewart were dropped, and Springfield police conducted an internal investigation into the arrest.
In those reports, Stone said he feared Stewart would run and believed he gave a false name. Investigators wrote Stewert showed no signs of running and Stone never confirmed if the name he was given was true. According to the documents, Stone reported that Stewart said he was not going to sit down and comply.
However, in the video, the only words Stewart is heard saying are fragmented uttterances, not a refusal to comply.
A special prosecutor in Linn County conducted an investigation to see if Stone committed any crimes but said there was not enough evidence to charge him.
Stone could still be reprimanded by the Springfield Police Department.
At a recent public grievance hearing over the allegations, an attorney representing Stone accused Lt. Scott McKee, who investigated Stone's conduct, of lying. McKee is now on leave and said an investigation into his conduct will take place.
In a notice of tort claim sent to Springfield city leaders back in October, Stone's attorney Christopher Lundberg wrote the department conducted an overzealous and relentless effort to find fault with Stone.
Lundberg wrote Stone was called a "snitch" by other officers after he reported one of them for leaving a handgun in an unsecured area among other things.
KEZI 9 News reached out to Springfield Police Chief Rick Lewis for comment but hasn’t heard back.
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It was rough going this weekend for Will Smith's latest offering. Although the movie came in at number one, that was due to the slowness of the February box office doldrums than a massive audience turn out.
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Thanks. Hey, good morning, guys.

Yes, may be we could -- Good morning. Just start with framing. Obviously, EFCO's still struggling. Can you kind of talk a little bit about the core framing business versus EFCO in terms of kind of the margin performance on the core framing?

Sure, Chris. This is Jim. I'll cover that. I mean, our kind of core businesses, when we look at legacy businesses that have been in our portfolio for a number -- for a long time, I mean, we continue to see nice growth and margin expansion across those businesses in the fiscal '19 and see that going forward as well.

The -- it sounds like by Q3 of this year, most of the troubles -- troubled EFCO contracts will be completed. So reasonable to assume that -- I don't know, from your remarks last quarter and then forward in terms of improved EFCO -- improved framing margins is reasonable?

Yes. Chris, this is Joe. I also want to comment. EFCO is -- the core business of EFCO is performing better.

We're starting to see productivity. I had mentioned orders were very strong. I put a new sales leader in place in the second half of last year. He was our -- one of our top guys here at Apogee.

He has had experience at our Harmon installation business, at our Wausau window and wall. And he is the fellow that I charged with creating and developing our retrofit business. We moved him down to join the team at EFCO. We're starting to see really good rewards from that.

The orders have to come first. Q4 was strong in orders. Q1 has remained very strong. We're only 5.5 weeks into our new year, but it's still important.

And so the core EFCO business is starting to look good. The overhang from these legacy projects, one in particular has been substantial, and the distraction of that goes away. We're almost done with manufacturing the product, and we're more than halfway through the installation. We should be substantially complete by August with the installation at the field site, at the project site.

And then after we get through that, I can focus on some recovery efforts that I mentioned on the call.

And Chris, within -- specifically within framing systems, that legacy work should really kind of be through there in the first half of the year. So our expectation is to see that margin improvements really starting in Q3. Turning over to Q4, and knowing that we have a little bit of seasonality where Q3 is stronger than Q4 in framing systems.

Got it. That's helpful. Jim, you had mentioned anticipated increased corporate costs from higher legal and advisory. Can you maybe just talk to that a little bit?

Yes. I mean, I think really, the bottom line is on our corporate line, we're probably estimating at this point about $2 million of increased cost in the corporate line. And it's a variety of legal expenses associated with various activities kind of outside the core business as well as legal activities related to the legacy projects and the charges that we talked about and those types of things.

Got it. All right. Let me jump back in line. I appreciate it guys.

Thanks you. And our next question comes from the line of Eric Stine with Craig-Hallum. Your line is open.

Maybe just sticking with EFCO. I mean -- and this may be a tough question, but any -- I mean, any thoughts on your confidence level regarding the ability, whether it's insurance or legal, to recover some of this? I mean obviously, you've got a -- would seem to have a pretty good leg to stand on. And I know it's part of our process. But just maybe thoughts on how you see that progressing.

Yes. So Eric, I -- let me be clear and I kind of fumbled my -- my tongue was fumbling in the call. Any recoveries are not included in the charges, they're not included in the $3 and $3.20 guidance that Jim highlighted today. So obviously, they are upside.

I don't want to comment on anything and then lower our odds of success. I do feel confident that we have certain paths we can take. We obviously have insurance. We also have actions -- other actions we plan to take.

I'm just going to be silent on those and hopefully deliver some good news in the future year or years. And I'll have to leave it at that, Eric.

Got it. No, understood. Well, and this question maybe in that same category, but just in terms of the investment in glass. And it was -- thank you for quantifying that amount, and I know you're not sharing a whole lot.

But just from a high level, I mean, is that -- -- should we think of that as new geography or just a new part of our market for you? If you're able to answer that.

Yes. No, I appreciate the question. And I would have preferred to say nothing today, Eric. I don't want to gift wrap a package to competitors and I know you understand that.

The shareholders would be upset and I would be distraught. But we had to say something because of the overhang. glass is improving more than 150 basis points year over year. So we could not ignore that.

We would have had more questions, we'd go down a rat hole. And unfortunately, we'd be forced to mislead by not talking about it. That said, I believe by the end of the first quarter and certainly by some point in the second quarter, we'll be able to talk more thoroughly about this effort. It's been well thought out.

It is organic. I don't want anyone to believe we have an acquisition. And it is not related to further headcount adds in our existing facility. But it was important to highlight that.

But beyond that, Eric, I'm going to have to ask you to hold on.

Yes. No, that's helpful. OK. Maybe last one for me.

I'm interested, Joe, in your commentary, you talked about a large slate of jobs set to enter backlog in the services business. And I know that you have that from time to time, but maybe if you could just talk about, on top of the growth that you saw this quarter, how that large slate of jobs might compare to the typical quarter or maybe year over year, some way to make a comparison there.

Yes. Our installation business has done an amazing job of project selection over the last several years. Actually, their efforts on project selection began about seven years ago and has been paying dividends. They -- field execution at the sites.

I used singular word earlier when I said site. I didn't need to say that. At the construction sites, they've done a phenomenal job. So there's two parts of the company: The selection and the design engineering of the curtain wall solution, and then the other half of the company is at the project site going up the side of the building.

They've done a phenomenal job. Their backlog grew substantially in the fiscal-year '19. It -- I'll go out on a limb and tell you, I expect the first quarter backlog will expand again. And they just have an early substantial slate of jobs that they've been awarded but we're not through the contracting process yet.

So they will enter backlog late this quarter and into Q2. And there's a pretty large slate of projects that will be awarded, so some won, that we're active on many of them and feel good about our chances on some core projects. So we believe the momentum will continue on an upward trajectory for that business. It is literally impossible in that world, when your average win is in excess of $20 million, it's literally impossible to have the projects roll in so that your revenue stream is steady.

We've tried to. But from the time you are verbally awarded a project to the time you actually start to revenue it, it's usually a year. And that lumpiness, as projects get pushed out, it's literally impossible to have a smooth flow. If you look at that business kind of over a 24-month cycle, which frankly based on award to revenue flow, it's probably more appropriate, you can see the business performance has been steady as opposed to some of the year-over-year lumpiness.

The pipeline also allows us to maintain that disciplined project selection. We don't get desperate to go after risky jobs because of a hole in the pipeline. So the pipeline is very strong, you'll see backlog increase in Q1. Beyond that, I don't want to get into backlog projections.

But as I mentioned, we've got more than $100 million in backlog in that business than we did a year ago. And that -- look what happened after the last -- after the year after that pipeline, we had a record year. So you say, well, why isn't F '20 going to be even better? It's just because of the flow of work that we have. There's a lot more in the second year, meaning F '21, than there was in the second year just a year ago.

We liked it. We liked the problem. And we obviously hope the business continues to outperform expectations.

Joe or Jim, on glass, any sense how much the weather-related disruptions impacted margins? I know it was a challenging quarter from that perspective. And then should we -- understanding some of the headwinds to the year, should we see some sequential progress into the first quarter?

Yes. Let me give you -- Jim will give you the detailed answer, Brent. Let me just tell you that it was unprecedented, what happened in February. The amount of -- I mean, there were a mandatory closure of the highways.

It was bizarre. We here in Minneapolis had easy weather -- or relatively easy. Southern Minnesota one hour away, highways were closed. The National Guard was trying to rescue people on the highway.

I think we had seven days of weather-related production shutdowns, mean -- and I think we had about 14 shifts of production that we lost. Because it happened in February, I didn't have a chance to make it up later in the quarter. That was the end of the quarter. It impacted our large-scale optical factory as well.

We don't call it out because the business is much smaller, but it impacted that business as well. So it was real. The basis points impact or the earnings per share impact is -- I'll let jim comment on it.

Yes, Joe, I'll take that. I mean, specifically, Brent, related to architectural glass, we estimate that in the quarter, it had over 100 basis point drag on operating margins of that segment. And as Joe had described it, I mean it was probably kind of split between a little bit of loss of revenue which really wasn't material. But not just the plant shutdowns but having many days where we had staffing storages because employees couldn't get to the factory just led to productivity challenges in the business.

So in the quarter, as I said, it's a little over 100 basis points. And that should -- that goes away.

Yep. OK. And then you guys are projecting 7% margins in that segment this year. Understand some of these investments are going to weigh on margins a little bit as we go through the year.

Is it your expectation to get back to double digits in this business as those costs kind of go away?

Absolutely. We -- as we continue to improve our productivity, get this project launched, that will give us some head -- tailwinds on revenue growth and margin expansion. Without question, this business has to get back to double digits.

And as we have been saying, our expectation is as we get to the end of the second quarter, we expect to be at that run rate. So we expect the second half of the year to be at that double-digit operating margin level.

Got it. The installation business, great. I mean, obviously, a really great year. Joe, I want to get your thoughts.

I know you want to manage kind of how large that business gets, the piece of the whole pie. But does this year's performance change at all kind of your thresholds for how large you want the business to get?

Yes, we don't want this to be a $500 million part of our portfolio as a public company. It is obviously a bit of a challenge. For my 7.5, almost eight years I've been here, we've never operated differently just because we're a public company, but it's a headache, clearly. The business has continued on an upward trajectory for all these eight years.

I -- we still have room for growth. We're not going to add another, let's call it, shift of project managers and engineers because that would be problematic when a slowdown happens. So we can continue to grow the business. I think the revenue of approximately $300 million are where I'd like to be at -- in the -- as we approach the top of the cycle.

And maybe in the low 200s at the bottom end of a cycle at lowest. But I think our -- my expectations on operating margin, Brent, admittedly, are now higher. The business has performed better in all aspects, project selection and execution. I'm very proud of the team.

We talk about F '20 as a return to really great results. F '20 is going to be at historically high levels for that business. And we shouldn't talk about it in any other manner. It just won't be as powerful as the F '19 results, but the backlog is better, as I mentioned, than a year ago.

I hope the projects in backlog will prove to be better than the margin that we just experienced. Jim mentioned maturity. That's a key factor. The age of our projects is younger in F '20 than it wasn't F '19.

And that's important. As we close out projects, we tend to take good news later in the projects for obvious reasons. If we ever have bad news, we take it immediately. But as we execute well, you see a little bit more margin pickup as projects progress to the end of the installation.

Our F '20 maturity is a little bit lower so we've been little conservative on our expectation there. I think the business will continue to perform extremely well. And I would say my margin expectations of a stretch goal of getting to 10% someday are no longer a stretch goal. I believe that that can be more of our norm than at the peak markets.

Got it. Last one, if I could. Just sticking with that segment, Joe. I understand the long lead times kind of associated with it and obviously factored that into the outlook.

Does seem like a really strong market right now. I mean, would you agree there's still opportunities to kind of fill in some holes through the year? Or is that just work you don't really necessarily want to pursue?

Well, they can still win projects that will have beginning revenue flows in F '20. It -- as we get to this point in the calendar, it's most projects that they get awarded will have very little revenue flow, some design engineering. So they can fill in a few holes, but it's -- everything we're booking now will be for F '21 and beyond. Projects do slip out, sometimes, they pull forward.

So our confidence in our forecast for that business is pretty solid. Filling in more holes would be a challenge at this point in the calendar year.

OK. Great. Thank you. I'll turn it over.

Hey, good morning. Thanks for taking the questions.

Yes. Hey, Julio. Good morning.

I wanted to ask about the retrofit initiative. Nice job growing that about $50 million for the year. Can you just give us a refresher on what the margins look like for that work? And what would be a fair expectation for retrofit revenues for the upcoming year?

Yes, the margins are generally reflective of our existing businesses. All the revenues do go through our current segments. But this is business we would not have had without this initiative. It is what we call a make market.

You're convincing customers, you're working with customers kind of on a project basis. There's often not competition. You're a partner, the project either goes forward or it doesn't. I believe when I came here, I brought this initiative.

We had a massive effort in this in the industry I came from, which was on the inside of buildings. It tends to be anti-cyclical at times. I want to point out the $50 million were awards or orders. The revenue stream follows that.

I still believe we can get to $100 million as an annual impact. We have added to the team. We're working on further expanding our footprint across the geography of the U.S. with this initiative.

We've hired energy engineers and sales people for this. They collaborate with our framing systems businesses. And it usually involves pulling through our own glass. It's typically not the installation target market for us, so we're usually using regional installers, but it does use our glass, our window and wall systems, our finishing capability.

And I'll continue to push this initiative going forward. And as I said, I hope to see $100 million a year before I retire.

OK, very good. And just on the capex, $60 million to $65 million, how much of that would be maintenance versus growth?

OK. Very good. I'll hop back in the queue. Thanks very much.

OK. Chelsea, can you see if there are any more questions from any of the listeners?

I'm not showing any further questions at this time. I'll now turn the call back to Mr. Joe Puishys for closing remarks.

OK. Thank you, Chelsea. And all of our investors and analysts, thank you for listening today. I'll be meeting with many folks over the next week on the road.

Jim and I are available, and Jeff, to follow up phone calls. I know we had a lot on the table today. The good news is I believe our fiscal '20 guidance is extremely realistic and we look forward to delivering on the guidance we provided today. And look forward to our next call with all of you.

Thank you, have a great day.

Officer Ryan Stone, who was under investigation, was targeted because he's a whistleblower, his attorney says.

SPRINGFIELD, Ore. -- The Springfield police officer who was placed on leave after allegedly using excessive force is back on the job, and his attorney claims he's being targeted because he's a whistleblower.

Amber Fossen, a spokeswoman for the city, confirmed that Officer Ryan Stone went back to work Dec. 20 after being placed on leave on April 12.

Stone's conduct was called into question after he arrested a man named Austin Stewart, who was allegedly jaywalking near the intersection of Highway 126 and Main Street on April 7.

KEZI 9 News has obtained the police dash camera video of that arrest.

In the video, you can see Stone asking Stewart for his name and explaining why he stopped him. Later Stone asks Stewart to sit on the curb before throwing him to ground. Soon after you can hear Stone asking Stewert to put his hands behind his back and then using his Taser on him.

All charges against Stewart were dropped, and Springfield police conducted an internal investigation into the arrest.

In those reports, Stone said he feared Stewart would run and believed he gave a false name. Investigators wrote Stewert showed no signs of running and Stone never confirmed if the name he was given was true. According to the documents, Stone reported that Stewart said he was not going to sit down and comply.

However, in the video, the only words Stewart is heard saying are fragmented uttterances, not a refusal to comply.

A special prosecutor in Linn County conducted an investigation to see if Stone committed any crimes but said there was not enough evidence to charge him.

Stone could still be reprimanded by the Springfield Police Department.

At a recent public grievance hearing over the allegations, an attorney representing Stone accused Lt. Scott McKee, who investigated Stone's conduct, of lying. McKee is now on leave and said an investigation into his conduct will take place.

In a notice of tort claim sent to Springfield city leaders back in October, Stone's attorney Christopher Lundberg wrote the department conducted an overzealous and relentless effort to find fault with Stone.

Lundberg wrote Stone was called a "snitch" by other officers after he reported one of them for leaving a handgun in an unsecured area among other things.

KEZI 9 News reached out to Springfield Police Chief Rick Lewis for comment but hasn’t heard back.

Whether you lost your last dime in a casino or you’re just looking to save a pretty penny, Reno, Nevada, is home to a flurry of free activities. From high-end cultural excursions to outdoor recreational adventures, “The Biggest Little City in the World” delivers fun at no cost.

Fleischmann Planetarium and Science Center is on the University of Nevada, Reno, campus. Start your visit with a trip to the Science Center, where ever-changing exhibits explore a variety of topics pertaining to the solar system. The attached planetarium hosts free shows for the public in its 60-seat theater with a massive star projector. Truckee River Walk is a leisurely pathway along the waterway in the heart of downtown Reno. Sunbathe or picnic along the patches of grass tucked along the trail or take in the views of the rushing water from the numerous benches alongside the water. Take a break from nature and enjoy some window shopping at the casual storefronts in the surrounding region.

Idlewild Park is tucked away in the city’s southwest region and along Truckee River. The park is home to two playgrounds, softball and baseball fields, volleyball courts and a paved bike path that travels around a lake. The park also has a 1-acre rose garden with more than 200 varieties of roses in bloom from early June through September. Set in southeast Reno, Mira Loma Park includes a variety of recreational facilities such as soccer fields, tennis and basketball courts, horseshoe pits and a 1-mile walking trail. The park also has a large skate park outfitted with bowls, fun boxes and half-pipes. The park is open to skateboarders, roller skaters and BMXers.

On the second Saturday of each month, the Nevada Museum of Art hosts the "Hands On!" series, which provides free admission to all visitors. On this day, ages 3 to adult are encouraged to create pieces of art together during arts and crafts workshops. The museum showcases more than 2,000 works of art from the 19th and 20th centuries, such as Dennis Oppenheim sculptures and Carl Oskar Borg paintings. The Downtown Reno Library is the Washoe County Library System’s urban hub. The library hosts an array of free events throughout the year, including story-time sessions for children, movie nights, literary speakers and after-hour concerts.

Circus Circus Reno is home to family friendly entertainment showcased at its carnival-themed midway. Housed under a big tent in the heart of the casino, the festive atmosphere includes live performances throughout the day and evening, including high-flying acrobats, jugglers and animal shows. The nearby Circus Cabaret stages free live musical acts, including classic rock, country and R&B musicians. Make your way past the clanging slot machines at Harrah’s Reno to the massive race and sports book. Relax in the plush lounge chairs and watch live sporting events on the 20 big-screen televisions and two enormous HD televisions hanging on the wall. The casino also is home to The Stage @ The Zone, an on-site nightclub with no cover charge, and DJs and dancing.

It was rough going this weekend for Will Smith's latest offering. Although the movie came in at number one, that was due to the slowness of the February box office doldrums than a massive audience turn out.

At $19 million, Focus isn't the worst debut for a Smith headliner, but is more in line with his more thoughtful dramas like Seven Pounds or Ali rather than his thriller and action flicks which usually clear $40 million on opening weekend. Even the train wreck that was After Earth managed to open at $27 million.

Horror films are almost always bankable, what with fake blood and bad acting always being cheap commodities in the Hollywood market. Even though The Lazarus Effect only made $10 million for a fifth place opening, the movie has already tripled its dirt cheap $3 million production budget.