Gibraltar Announces Third-Quarter 2020 Financial Results
Q3 Revenues Grow 10%, GAAP and Adjusted EPS Grow 36% and 12%, Respectively
Backlog of $304 million up 26% on Renewable Energy and Conservation Demand
Strong Balance Sheet and Liquidity Supports Execution and Ongoing Investment in the Business
Completes Acquisition of Architectural Mailboxes in Residential Products Segment
Buffalo, New York, October 29, 2020 - Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the renewable energy, conservation, residential, industrial and infrastructure markets, today reported its financial results for the three-month period ended September 30, 2020.
“We delivered a solid performance as we continued to focus on executing our business plans. Revenue increased 10.2% and adjusted EPS increased 11.6%, with GAAP and adjusted operating margins improving 280 and 40 basis points respectively,” said President and Chief Executive Officer Bill Bosway. “Our investments across the business over the last nine months have been meaningful, targeted, and are beginning to generate positive results. We also recently completed a $27 million acquisition of Architectural Mailboxes, a complementary addition to our Mail and Package solutions business. We enter the fourth quarter with solid momentum and a backlog of $304 million, up 26%, and a strong, liquid balance sheet to fund key initiatives.”
Third Quarter 2020 Consolidated Results
Gibraltar reported the following consolidated results:
Three Months Ended September 30, | |||||||||||||||||||||||
Dollars in millions, except EPS | GAAP | Adjusted | |||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||
Net Sales | $329.7 | $299.2 | 10.2% | $329.7 | $299.2 | 10.2% | |||||||||||||||||
Net Income | $33.8 | $24.5 | 38.0% | $34.9 | $31.2 | 11.9% | |||||||||||||||||
Diluted EPS | $1.02 | $0.75 | 36.0% | $1.06 | $0.95 | 11.6% | |||||||||||||||||
Third quarter 2020 net sales increased 10.2% to $329.7 million, driven by the Residential Products and Renewable Energy & Conservation segments. Of the 10.2% increase, organic growth accounted for 2.1%, and recent acquisitions contributed 8.1%.
GAAP earnings increased 38.0% to $33.8 million, or $1.02 per share, while adjusted earnings increased 11.9% to $34.9 million, or $1.06 per share, the result of organic growth and marked margin expansion in our Residential Products segment, continued execution in all core businesses, product and services mix, favorable alignment of price to material costs, and ongoing benefits from operational excellence initiatives. Adjusted measures remove charges
for restructuring initiatives, acquisition-related items, senior leadership transition costs, and other reclassifications, as further described in the appended reconciliation of adjusted financial measures.
Third Quarter Segment Results
Renewable Energy & Conservation
For the third quarter, the Renewable Energy & Conservation segment reported:
Three Months Ended September 30, | |||||||||||||||||||||||
Dollars in millions | GAAP | Adjusted | |||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||
Net Sales | $128.3 | $116.8 | 9.8% | $128.3 | $116.8 | 9.8% | |||||||||||||||||
Operating Margin | 11.1% | 16.8% | (570) bps | 11.6% | 17.8% | (620) bps | |||||||||||||||||
Segment revenue increased 9.8% driven by growth in Renewable Energy and previous acquisitions in the Conservation business, offset by a decline in the core Conservation business related to a slowdown in the cannabis and hemp markets. Total segment backlog increased 28% with Renewable Energy and Conservation businesses contributing equally to the increase over 2019. The strength in backlog is the result of strong end market demand in Renewable Energy, and in Conservation, driven by strength in the fruits and vegetables market and increasing activity in the cannabis market.
Adjusted operating margin declined for the quarter driven by near-term market challenges impacting the Conservation business, particularly related to the cannabis and hemp markets. The acquisitions made in the Conservation business delivered margins consistent with expectations, and margins are expected to improve moving forward. Renewable Energy margin performance remains solid, driven by strong execution, participation gains, and product and service mix.
Residential Products
For the third quarter, the Residential Products segment reported:
Three Months Ended September 30, | |||||||||||||||||||||||
Dollars in millions | GAAP | Adjusted | |||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||
Net Sales | $151.7 | $126.3 | 20.1% | $151.7 | $126.3 | 20.1% | |||||||||||||||||
Operating Margin | 21.4% | 13.5% | 790 bps | 21.5% | 16.2% | 530 bps | |||||||||||||||||
Segment revenue increased 20.1% as the home improvement market continued to show solid activity, and through participation gains across our various distribution channels. Adjusted operating margin increased with consistent execution on higher volume, effective price and material cost management, and additional 80/20 initiatives.
Subsequent to quarter-end, Gibraltar acquired Architectural Mailboxes for $27 million, a complementary addition to Gibraltar’s existing mail & package solutions business within the Residential segment. The acquisition provides an entry into new market segments while creating synergy across digital marketing, engineering, and supply chain initiatives. Architectural Mailboxes revenue is expected to be $26 million in 2020.
Industrial & Infrastructure Products
For the third quarter, the Industrial & Infrastructure Products segment reported:
Three Months Ended September 30, | |||||||||||||||||||||||
Dollars in millions | GAAP | Adjusted | |||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||
Net Sales | $49.7 | $56.2 | (11.6)% | $49.7 | $56.2 | (11.6)% | |||||||||||||||||
Operating Margin | 10.5% | 9.7% | 80 bps | 11.0% | 10.2% | 80 bps | |||||||||||||||||
Segment revenue decreased 11.6%, driven by lower demand for core industrial products. The infrastructure business was down slightly as the pandemic affected spending on infrastructure projects in certain end markets. Infrastructure backlog grew slightly.
The increase in adjusted operating margin was driven by continued improvement in execution in the industrial business and effective price and material cost management.
Business Outlook
Gibraltar delivered solid revenue and adjusted EPS growth through the first three quarters, and expects fourth quarter performance to surpass 2019 results. Given the ongoing level of uncertainty related to the pandemic, the economy, and the upcoming election, Gibraltar is maintaining the practice of providing qualitative guidance.
“While our momentum and end market trends continue to be positive, we are closely monitoring the everchanging pandemic landscape and potential impact on the U.S. and global economy,” Bosway commented. “We remain focused on executing our operating playbook, maintaining a safe environment for our people, and meeting our customers’ needs every day. We will also continue key organic and inorganic investments to strengthen our business platforms for the markets we serve.”
Third Quarter 2020 Conference Call Details
Gibraltar will host a conference call today starting at 9:00 a.m. ET to review its results for the third quarter of 2020. Interested parties may access the webcast through the Investors section of the Company’s website at www.gibraltar1.com or dial into the call at (833) 665-0649 or (914) 987-7311. Presentation slides referenced during the conference call will be available for download on the website. A webcast replay of the conference call and a copy of the transcript will be available on the website following the call.
About Gibraltar
Gibraltar Industries is a leading manufacturer and provider of products and services for the renewable energy, conservation, residential, industrial, and infrastructure markets. With a three-pillar strategy focused on business systems, portfolio management, and organization and talent development, Gibraltar’s mission is to create compounding and sustainable value with strong leadership positions in higher growth, profitable end markets. Gibraltar serves customers primarily throughout North America. Comprehensive information about Gibraltar can be found on its website at www.gibraltar1.com.
Forward-Looking Statements
Certain information set forth in this news release, other than historical statements, contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are based, in whole or in part, on current expectations, estimates, forecasts, and projections about the Company’s business, and management’s beliefs about future operations, results, and financial position. These statements are not guarantees of future performance and are subject to a number of risk factors, uncertainties, and assumptions. Actual events, performance, or results could differ materially from the anticipated events, performance, or results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from current expectations
include, among other things, the impacts of COVID-19 on the global economy and on our customers, suppliers, employees, operations, business, liquidity and cash flows, other general economic conditions and conditions in the particular markets in which we operate, changes in customer demand and capital spending, competitive factors and pricing pressures, our ability to develop and launch new products in a cost-effective manner, our ability to realize synergies from newly acquired businesses, and our ability to derive expected benefits from restructuring, productivity initiatives, liquidity enhancing actions, and other cost reduction actions. Before making any investment decisions regarding our company, we strongly advise you to read the section entitled “Risk Factors” in our most recent annual report on Form 10-K which can be accessed under the “SEC Filings” link of the “Investor Info” page of our website at www.Gibraltar1.com. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law or regulation.
Adjusted Financial Measures
To supplement Gibraltar’s consolidated financial statements presented on a GAAP basis, Gibraltar also presented certain adjusted financial measures in this news release. Adjusted financial measures exclude special charges consisting of restructuring costs primarily associated with 80/20 simplification initiatives, senior leadership transition costs, early debt repayment, acquisition related costs, and other reclassifications. These adjustments are shown in the reconciliation of adjusted financial measures excluding special charges provided in the supplemental financial schedules that accompany this news release. The Company believes that the presentation of results excluding special charges provides meaningful supplemental data to investors, as well as management, that are indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods as well as comparison with other companies. Special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations. These adjusted measures should not be viewed as a substitute for the Company’s GAAP results and may be different than adjusted measures used by other companies.
Contact:
LHA Investor Relations
Jody Burfening/Carolyn Capaccio
(212) 838-3777
rock@lhai.com
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| Net Sales | $ | 329,665 | $ | 299,236 | $ | 864,918 | $ | 789,308 | |||||||||||||||
| Cost of sales | 244,222 | 222,658 | 650,830 | 605,272 | |||||||||||||||||||
| Gross profit | 85,443 | 76,578 | 214,088 | 184,036 | |||||||||||||||||||
| Selling, general, and administrative expense | 41,584 | 45,158 | 120,448 | 115,444 | |||||||||||||||||||
| Income from operations | 43,859 | 31,420 | 93,640 | 68,592 | |||||||||||||||||||
| Interest expense | 218 | 17 | 385 | 2,297 | |||||||||||||||||||
| Other expense (income) | 53 | 84 | (1,542) | 660 | |||||||||||||||||||
| Income before taxes | 43,588 | 31,319 | 94,797 | 65,635 | |||||||||||||||||||
| Provision for income taxes | 9,828 | 6,843 | 21,686 | 14,901 | |||||||||||||||||||
| Net income | $ | 33,760 | $ | 24,476 | $ | 73,111 | $ | 50,734 | |||||||||||||||
| Net earnings per share: | |||||||||||||||||||||||
| Basic | $ | 1.03 | $ | 0.75 | $ | 2.24 | $ | 1.57 | |||||||||||||||
| Diluted | $ | 1.02 | $ | 0.75 | $ | 2.22 | $ | 1.55 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 32,635 | 32,470 | 32,606 | 32,357 | |||||||||||||||||||
| Diluted | 32,969 | 32,770 | 32,902 | 32,677 | |||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
| September 30, 2020 | December 31, 2019 | ||||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 179,816 | $ | 191,363 | |||||||
| Accounts receivable, net of allowance of $3,319 and $6,330 | 203,488 | 147,515 | |||||||||
| Inventories, net | 77,943 | 78,476 | |||||||||
| Prepaid expenses and other current assets | 20,306 | 19,748 | |||||||||
| Total current assets | 481,553 | 437,102 | |||||||||
| Property, plant, and equipment, net | 94,983 | 95,409 | |||||||||
| Operating lease assets | 32,359 | 27,662 | |||||||||
| Goodwill | 382,427 | 329,705 | |||||||||
| Acquired intangibles | 108,821 | 92,592 | |||||||||
| Other assets | 1,703 | 1,980 | |||||||||
| $ | 1,101,846 | $ | 984,450 | ||||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 131,746 | $ | 83,136 | |||||||
| Accrued expenses | 106,480 | 98,463 | |||||||||
| Billings in excess of cost | 31,267 | 47,598 | |||||||||
| Total current liabilities | 269,493 | 229,197 | |||||||||
| Deferred income taxes | 40,942 | 40,334 | |||||||||
| Non-current operating lease liabilities | 23,314 | 19,669 | |||||||||
| Other non-current liabilities | 22,022 | 21,286 | |||||||||
| Shareholders’ equity: | |||||||||||
| Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding | — | — | |||||||||
| Common stock, $0.01 par value; authorized 50,000 shares; 33,519 shares and 33,192 shares issued and outstanding in 2020 and 2019 | 335 | 332 | |||||||||
| Additional paid-in capital | 302,107 | 295,582 | |||||||||
| Retained earnings | 478,488 | 405,668 | |||||||||
| Accumulated other comprehensive loss | (6,220) | (5,391) | |||||||||
| Cost of 1,024 and 906 common shares held in treasury in 2020 and 2019 | (28,635) | (22,227) | |||||||||
| Total shareholders’ equity | 746,075 | 673,964 | |||||||||
| $ | 1,101,846 | $ | 984,450 | ||||||||
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2020 | 2019 | ||||||||||
| Cash Flows from Operating Activities | |||||||||||
| Net income | $ | 73,111 | $ | 50,734 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 17,325 | 14,923 | |||||||||
| Stock compensation expense | 6,151 | 10,087 | |||||||||
| Gain on sale of business | (1,881) | — | |||||||||
| Exit activity costs, non-cash | 505 | 479 | |||||||||
| Provision for (benefit of) deferred income taxes | 668 | (429) | |||||||||
| Other, net | 1,402 | 3,267 | |||||||||
| Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||||||||||
| Accounts receivable | (40,176) | (56,645) | |||||||||
| Inventories | 6,102 | 18,617 | |||||||||
| Other current assets and other assets | 6,095 | (6,949) | |||||||||
| Accounts payable | 13,408 | 22,770 | |||||||||
| Accrued expenses and other non-current liabilities | (26,516) | 15,640 | |||||||||
| Net cash provided by operating activities | 56,194 | 72,494 | |||||||||
| Cash Flows from Investing Activities | |||||||||||
| Acquisitions, net of cash acquired | (54,385) | (8,665) | |||||||||
| Net proceeds from sale of property and equipment | 568 | 87 | |||||||||
| Purchases of property, plant, and equipment | (9,335) | (7,703) | |||||||||
| Net proceeds from sale of business | 2,000 | — | |||||||||
| Net cash used in investing activities | (61,152) | (16,281) | |||||||||
| Cash Flows from Financing Activities | |||||||||||
| Long-term debt payments | — | (212,000) | |||||||||
| Payment of debt issuance costs | — | (1,235) | |||||||||
| Purchase of treasury stock at market prices | (6,408) | (3,495) | |||||||||
| Net proceeds from issuance of common stock | 377 | 400 | |||||||||
| Net cash used in financing activities | (6,031) | (216,330) | |||||||||
| Effect of exchange rate changes on cash | (558) | 729 | |||||||||
| Net decrease in cash and cash equivalents | (11,547) | (159,388) | |||||||||
| Cash and cash equivalents at beginning of year | 191,363 | 297,006 | |||||||||
| Cash and cash equivalents at end of period | $ | 179,816 | $ | 137,618 | |||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Three Months Ended September 30,2020 | ||||||||||||||||||||||||||||||||
As Reported In GAAP Statements | Restructuring Charges | Senior Leadership Transition Costs | Acquisition Related Items | Adjusted Financial Measures | ||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | $ | 128,258 | $ | — | $ | — | $ | — | $ | 128,258 | ||||||||||||||||||||||
| Residential Products | 151,718 | — | — | — | 151,718 | |||||||||||||||||||||||||||
| Industrial & Infrastructure Products | 49,767 | — | — | — | 49,767 | |||||||||||||||||||||||||||
| Less Inter-Segment Sales | (78) | — | — | — | (78) | |||||||||||||||||||||||||||
| 49,689 | — | — | — | 49,689 | ||||||||||||||||||||||||||||
| Consolidated sales | 329,665 | — | — | — | 329,665 | |||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 14,195 | 172 | — | 572 | 14,939 | |||||||||||||||||||||||||||
| Residential Products | 32,454 | 186 | — | — | 32,640 | |||||||||||||||||||||||||||
| Industrial & Infrastructure Products | 5,199 | 252 | — | — | 5,451 | |||||||||||||||||||||||||||
| Segments Income | 51,848 | 610 | — | 572 | 53,030 | |||||||||||||||||||||||||||
| Unallocated corporate expense | (7,989) | 17 | 170 | 16 | (7,786) | |||||||||||||||||||||||||||
| Consolidated income from operations | 43,859 | 627 | 170 | 588 | 45,244 | |||||||||||||||||||||||||||
| Interest expense | 218 | — | — | — | 218 | |||||||||||||||||||||||||||
| Other expense | 53 | — | — | — | 53 | |||||||||||||||||||||||||||
| Income before income taxes | 43,588 | 627 | 170 | 588 | 44,973 | |||||||||||||||||||||||||||
| Provision for income taxes | 9,828 | 146 | — | 135 | 10,109 | |||||||||||||||||||||||||||
| Net income | $ | 33,760 | $ | 481 | $ | 170 | $ | 453 | $ | 34,864 | ||||||||||||||||||||||
| Net earnings per share - diluted | $ | 1.02 | $ | 0.02 | $ | 0.01 | $ | 0.01 | $ | 1.06 | ||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 11.1 | % | 0.1 | % | — | % | 0.4 | % | 11.6 | % | ||||||||||||||||||||||
| Residential Products | 21.4 | % | 0.1 | % | — | % | — | % | 21.5 | % | ||||||||||||||||||||||
| Industrial & Infrastructure Products | 10.5 | % | 0.5 | % | — | % | — | % | 11.0 | % | ||||||||||||||||||||||
| Segments Margin | 15.7 | % | 0.2 | % | — | % | 0.2 | % | 16.1 | % | ||||||||||||||||||||||
| Consolidated | 13.3 | % | 0.2 | % | 0.1 | % | 0.2 | % | 13.7 | % | ||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||
As Reported In GAAP Statements | Restructuring Charges | Senior Leadership Transition Costs | Acquisition Related Items | Adjusted Financial Measures | ||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | $ | 116,771 | $ | — | $ | — | $ | — | $ | 116,771 | ||||||||||||||||||||||
| Residential Products | 126,275 | — | — | — | 126,275 | |||||||||||||||||||||||||||
| Industrial & Infrastructure Products | 56,361 | — | — | — | 56,361 | |||||||||||||||||||||||||||
| Less Inter-Segment Sales | (171) | — | — | — | (171) | |||||||||||||||||||||||||||
| 56,190 | — | — | — | 56,190 | ||||||||||||||||||||||||||||
| Consolidated sales | 299,236 | — | — | — | 299,236 | |||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 19,633 | 37 | — | 1,166 | 20,836 | |||||||||||||||||||||||||||
| Residential Products | 17,012 | 3,415 | — | — | 20,427 | |||||||||||||||||||||||||||
Industrial & Infrastructure Products | 5,462 | 285 | — | — | 5,747 | |||||||||||||||||||||||||||
| Segments income | 42,107 | 3,737 | — | 1,166 | 47,010 | |||||||||||||||||||||||||||
| Unallocated corporate expense | (10,687) | 246 | 2,708 | 470 | (7,263) | |||||||||||||||||||||||||||
| Consolidated income from operations | 31,420 | 3,983 | 2,708 | 1,636 | 39,747 | |||||||||||||||||||||||||||
| Interest expense | 17 | — | — | — | 17 | |||||||||||||||||||||||||||
| Other expense | 84 | — | — | — | 84 | |||||||||||||||||||||||||||
| Income before income taxes | 31,319 | 3,983 | 2,708 | 1,636 | 39,646 | |||||||||||||||||||||||||||
| Provision for income taxes | 6,843 | 1,030 | 161 | 417 | 8,451 | |||||||||||||||||||||||||||
| Net income | $ | 24,476 | $ | 2,953 | $ | 2,547 | $ | 1,219 | $ | 31,195 | ||||||||||||||||||||||
| Net earnings per share - diluted | $ | 0.75 | $ | 0.09 | $ | 0.08 | $ | 0.03 | $ | 0.95 | ||||||||||||||||||||||
Operating margin | ||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 16.8 | % | — | % | — | % | 1.0 | % | 17.8 | % | ||||||||||||||||||||||
| Residential Products | 13.5 | % | 2.7 | % | — | % | — | % | 16.2 | % | ||||||||||||||||||||||
| Industrial & Infrastructure Products | 9.7 | % | 0.5 | % | — | % | — | % | 10.2 | % | ||||||||||||||||||||||
| Segments margin | 14.1 | % | 1.2 | % | — | % | 0.4 | % | 15.7 | % | ||||||||||||||||||||||
Consolidated | 10.5 | % | 1.3 | % | 0.9 | % | 0.5 | % | 13.3 | % | ||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||
As Reported In GAAP Statements | Restructuring Charges | Senior Leadership Transition Costs | Acquisition Related Items | Gain on Sale of Business | Adjusted Financial Measures | |||||||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | $ | 323,014 | $ | — | $ | — | $ | — | $ | — | $ | 323,014 | ||||||||||||||||||||||||||
| Residential Products | 394,609 | — | — | — | — | 394,609 | ||||||||||||||||||||||||||||||||
| Industrial & Infrastructure Products | 147,831 | — | — | — | — | 147,831 | ||||||||||||||||||||||||||||||||
| Less Inter-Segment Sales | (536) | — | — | — | — | (536) | ||||||||||||||||||||||||||||||||
| 147,295 | — | — | — | — | 147,295 | |||||||||||||||||||||||||||||||||
| Consolidated sales | 864,918 | — | — | — | — | 864,918 | ||||||||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 29,082 | 578 | — | 2,745 | — | 32,405 | ||||||||||||||||||||||||||||||||
| Residential Products | 74,143 | 670 | — | — | — | 74,813 | ||||||||||||||||||||||||||||||||
| Industrial & Infrastructure Products | 15,832 | 564 | — | — | — | 16,396 | ||||||||||||||||||||||||||||||||
| Segments Income | 119,057 | 1,812 | — | 2,745 | — | 123,614 | ||||||||||||||||||||||||||||||||
| Unallocated corporate expense | (25,417) | 116 | 2,512 | 325 | — | (22,464) | ||||||||||||||||||||||||||||||||
| Consolidated income from operations | 93,640 | 1,928 | 2,512 | 3,070 | — | 101,150 | ||||||||||||||||||||||||||||||||
| Interest expense | 385 | — | — | — | — | 385 | ||||||||||||||||||||||||||||||||
| Other (income) expense | (1,542) | — | — | — | 1,881 | 339 | ||||||||||||||||||||||||||||||||
| Income before income taxes | 94,797 | 1,928 | 2,512 | 3,070 | (1,881) | 100,426 | ||||||||||||||||||||||||||||||||
| Provision for income taxes | 21,686 | 455 | — | 725 | (469) | 22,397 | ||||||||||||||||||||||||||||||||
| Net income | $ | 73,111 | $ | 1,473 | $ | 2,512 | $ | 2,345 | $ | (1,412) | $ | 78,029 | ||||||||||||||||||||||||||
| Net earnings per share – diluted | $ | 2.22 | $ | 0.04 | $ | 0.08 | $ | 0.07 | $ | (0.04) | $ | 2.37 | ||||||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 9.0 | % | 0.2 | % | — | % | 0.8 | % | — | % | 10.0 | % | ||||||||||||||||||||||||||
| Residential Products | 18.8 | % | 0.2 | % | — | % | — | % | — | % | 19.0 | % | ||||||||||||||||||||||||||
| Industrial & Infrastructure Products | 10.7 | % | 0.4 | % | — | % | — | % | — | % | 11.1 | % | ||||||||||||||||||||||||||
| Segments Margin | 13.8 | % | 0.2 | % | — | % | 0.3 | % | — | % | 14.3 | % | ||||||||||||||||||||||||||
| Consolidated | 10.8 | % | 0.2 | % | 0.3 | % | 0.4 | % | — | % | 11.7 | % | ||||||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||
As Reported In GAAP Statements | Restructuring Charges | Senior Leadership Transition Costs | Acquisition Related Items | Debt Repayment | Adjusted Financial Measures | |||||||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | $ | 261,612 | $ | — | $ | — | $ | — | $ | — | $ | 261,612 | ||||||||||||||||||||||||||
| Residential Products | 360,417 | — | — | — | — | 360,417 | ||||||||||||||||||||||||||||||||
| Industrial & Infrastructure Products | 168,096 | — | — | — | — | 168,096 | ||||||||||||||||||||||||||||||||
| Less Inter-Segment Sales | (817) | — | — | — | — | (817) | ||||||||||||||||||||||||||||||||
| 167,279 | — | — | — | — | 167,279 | |||||||||||||||||||||||||||||||||
| Consolidated sales | 789,308 | — | — | — | — | 789,308 | ||||||||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 30,914 | 36 | — | 1,166 | — | 32,116 | ||||||||||||||||||||||||||||||||
| Residential Products | 49,880 | 3,785 | 78 | — | — | 53,743 | ||||||||||||||||||||||||||||||||
Industrial & Infrastructure Products | 13,660 | 1,598 | — | — | — | 15,258 | ||||||||||||||||||||||||||||||||
| Segments income | 94,454 | 5,419 | 78 | 1,166 | — | 101,117 | ||||||||||||||||||||||||||||||||
| Unallocated corporate expense | (25,862) | 919 | 6,973 | 474 | — | (17,496) | ||||||||||||||||||||||||||||||||
| Consolidated income from operations | 68,592 | 6,338 | 7,051 | 1,640 | — | 83,621 | ||||||||||||||||||||||||||||||||
| Interest expense | 2,297 | — | — | — | (1,079) | 1,218 | ||||||||||||||||||||||||||||||||
Other expense | 660 | — | — | — | — | 660 | ||||||||||||||||||||||||||||||||
| Income before income taxes | 65,635 | 6,338 | 7,051 | 1,640 | 1,079 | 81,743 | ||||||||||||||||||||||||||||||||
| Provision for income taxes | 14,901 | 1,616 | 481 | 418 | 269 | 17,685 | ||||||||||||||||||||||||||||||||
| Net income | $ | 50,734 | $ | 4,722 | $ | 6,570 | $ | 1,222 | $ | 810 | $ | 64,058 | ||||||||||||||||||||||||||
| Net earnings per share - diluted | $ | 1.55 | $ | 0.15 | $ | 0.20 | $ | 0.04 | $ | 0.02 | $ | 1.96 | ||||||||||||||||||||||||||
Operating margin | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 11.8 | % | — | % | — | % | 0.4 | % | — | % | 12.3 | % | ||||||||||||||||||||||||||
| Residential Products | 13.8 | % | 1.1 | % | — | % | — | % | — | % | 14.9 | % | ||||||||||||||||||||||||||
| Industrial & Infrastructure Products | 8.2 | % | 1.0 | % | — | % | — | % | — | % | 9.1 | % | ||||||||||||||||||||||||||
| Segments margin | 12.0 | % | 0.7 | % | — | % | 0.1 | % | — | % | 12.8 | % | ||||||||||||||||||||||||||
Consolidated | 8.7 | % | 0.8 | % | 0.9 | % | 0.2 | % | — | % | 10.6 | % | ||||||||||||||||||||||||||