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BUFFALO, N.Y.–()–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 June 30, 2020.

“Our organization responded well to a better than expected demand profile in our Residential Products and Renewable Energy & Conservation end markets during the quarter. Despite the continuous challenge of the pandemic, our decision to keep our team intact enabled us to deliver revenue growth and adjusted EPS growth of 8.8% and 15.1%, respectively,” said President and Chief Executive Officer Bill Bosway. “As important, our GAAP and adjusted operating margins improved 200 and 130 basis points, respectively, supporting our continued investment in our business. We are gaining momentum and starting to see more consistent performance across our businesses, with our backlog continuing to build, up 14% to $277 million.”

Second Quarter 2020 Consolidated Results

Gibraltar reported the following consolidated results:

 

Three Months Ended June 30,

Dollars in millions, except EPS

GAAP

Adjusted

 

2020

2019

% Change

2020

2019

% Change

Net Sales

$285.8

$262.7

8.8%

$285.8

$262.7

8.8%

Net Income

$27.3

$19.9

37.2%

$27.7

$23.7

16.9%

Diluted EPS

$0.83

$0.61

36.1%

$0.84

$0.73

15.1%

Second quarter 2020 net sales increased 8.8% to $285.8 million, driven by the Residential Products and Renewable Energy & Conservation segments. Of the 8.8% increase, organic growth was 1.6%, and recent acquisitions contributed 7.2%.

GAAP earnings increased 37.2% to $27.3 million, or $0.83 per share, while adjusted earnings increased 16.9% to $27.7 million, or $0.84 per share, the result of organic growth in both Residential Products and Renewable Energy and Conservation, marked margin expansion in Residential and Industrial & Infrastructure Products, continued execution in all core businesses, product and services mix, favorable alignment of price to material costs, and ongoing benefits from operational excellence initiatives. Special items removed from both the second quarters of 2020 and 2019 are further described in the appended reconciliation of adjusted financial measures.

Mr. Bosway stated, “We continue to execute our operating playbook as we deal with the pandemic and make necessary adjustments as the current environment evolves. Our top priorities remain our organization, keeping them and their families as safe and healthy as possible, ensuring our supply chain operates well, and maintaining a high level of responsiveness to customers.”

Second Quarter Segment Results

Renewable Energy & Conservation

For the second quarter, the Renewable Energy & Conservation segment reported:

 

Three Months Ended June 30,

Dollars in millions

GAAP

Adjusted

 

2020

2019

% Change

2020

2019

% Change

Net Sales

$98.3

$76.0

29.3%

$98.3

$76.0

29.3%

Operating Margin

9.4%

12.7%

(330) bps

10.9%

12.6%

(170) bps

Renewable Energy & Conservation revenues increased 29.3%, with organic growth of 4.2%, and inorganic growth of 25.1% resulting from the acquisitions of Apeks Supercritical, Thermo Energy Solutions and Delta Separations. Segment backlog increased, up 15% versus 2019, the result of good market dynamics and participation gains, particularly in renewable energy, and the impact of recent acquisitions.

The segment’s core business continued to grow, driven by renewable energy, and delivered improved operating results driven by participation gains, product and service mix, strong execution, and continued improved solar tracker field performance. These benefits were partly offset by slower market demand for cannabis growing solutions. The impact on margins from acquisitions was consistent with expectations, with the pandemic creating near-term cannabis processing end market demand challenges, and while there have been a few integration challenges, integration overall is expected to be completed on time to deliver targeted returns in year three. Adjusted operating margin for the second quarter of 2020 and 2019 removes special charges for acquisition related items and restructuring initiatives, as further described in the appended reconciliation of adjusted financial measures.

Residential Products

For the second quarter, the Residential Products segment reported:

 

Three Months Ended June 30,

Dollars in millions

GAAP

Adjusted

 

2020

2019

% Change

2020

2019

% Change

Net Sales

$139.5

$130.4

7.0%

$139.5

$130.4

7.0%

Operating Margin

20.0%

15.9%

410 bps

20.2%

16.2%

400 bps

Residential Products revenue increased 7.0% due to strong repair and remodel activity as homeowners started to “nest” during the pandemic and through participation gains across key product lines and customers. Adjusted operating margin increased due to consistent execution, better price and material cost management, product mix, 80/20 initiatives, and volume leverage. Adjusted operating margin for the second quarters of 2020 and 2019 removes the special charges for restructuring initiatives under the 80/20 program as further described in the appended reconciliation of adjusted financial measures.

Industrial & Infrastructure Products

For the second quarter, the Industrial & Infrastructure Products segment reported:

 

Three Months Ended June 30,

Dollars in millions

GAAP

Adjusted

 

2020

2019

% Change

2020

2019

% Change

Net Sales

$48.1

$56.2

(14.4)%

$48.1

$56.2

(14.4)%

Operating Margin

13.8%

7.2%

660 bps

14.5%

9.6%

490 bps

Segment revenue decreased 14.4%, driven by lower demand for core industrial products during the pandemic. The infrastructure business was comparable with the prior year’s quarter, and its backlog continued to grow.

The increase in adjusted operating margin was driven by continued improvement in execution in our industrial business, a more favorable alignment of price to material costs, mix and continued benefits from 80/20 profit improvement initiatives. Adjusted operating margin for the second quarters of 2020 and 2019 removes special charges for restructuring initiatives as further described in the appended reconciliation of adjusted financial measures.

Business Outlook

Although the Company delivered strong financial performance in the first half of 2020 and continues to experience a growing backlog, the uncertain pace and strength of an economic recovery in the current environment continue to make providing reliable quantitative guidance difficult.

Bill Bosway commented, “Our momentum and current market trends support a solid outlook for the remainder of the year and give us confidence that our second half of the year will be stronger than the first half. However, the current status of the pandemic across the country, and understanding its potential impact on our markets, makes it challenging to provide an outlook and guidance with reliable precision. Therefore, we will continue with suspension of quantitative guidance and will revisit this practice in three months. In the near term, we will continue to focus on what is in front of us and on what we can control. The resiliency inherent in our business model and our strong balance sheet position us to continue investing in our business and strengthening our position in the markets we serve.”

Second 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 second quarter of 2020. Interested parties may access the webcast through the Investor Info section of the Company’s website at www.gibraltar1.com or dial into the call at (877) 407-3088 or (201) 389-0927. 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.

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2020

 

 

2019

 

 

2020

 

 

2019

Net Sales

$

285,814

 

 

 

$

262,655

 

 

 

$

535,253

 

 

 

$

490,072

 

Cost of sales

213,556

 

 

 

199,097

 

 

 

406,608

 

 

 

382,614

 

Gross profit

72,258

 

 

 

63,558

 

 

 

128,645

 

 

 

107,458

 

Selling, general, and administrative expense

37,667

 

 

 

36,952

 

 

 

78,864

 

 

 

70,286

 

Income from operations

34,591

 

 

 

26,606

 

 

 

49,781

 

 

 

37,172

 

Interest expense

214

 

 

 

219

 

 

 

167

 

 

 

2,280

 

Other (income) expense

(1,787

)

 

 

(13

)

 

 

(1,595

)

 

 

576

 

Income before taxes

36,164

 

 

 

26,400

 

 

 

51,209

 

 

 

34,316

 

Provision for income taxes

8,872

 

 

 

6,487

 

 

 

11,858

 

 

 

8,058

 

Net income

$

27,292

 

 

 

$

19,913

 

 

 

$

39,351

 

 

 

$

26,258

 

 

 

 

 

 

 

 

 

Net earnings per share:

 

 

 

 

 

 

 

Basic

$

0.84

 

 

 

$

0.62

 

 

 

$

1.21

 

 

 

$

0.81

 

Diluted

$

0.83

 

 

 

$

0.61

 

 

 

$

1.20

 

 

 

$

0.80

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

32,605

 

 

 

32,321

 

 

 

32,596

 

 

 

32,300

 

Diluted

32,860

 

 

 

32,642

 

 

 

32,868

 

 

 

32,630

 

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 

 

June 30,

2020

 

December 31,

2019

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

120,859

 

 

 

$

191,363

 

 

Accounts receivable, net of allowance of $6,270 and $6,330

193,609

 

 

 

147,515

 

 

Inventories

79,058

 

 

 

78,476

 

 

Prepaid expenses and other current assets

22,849

 

 

 

19,748

 

 

Total current assets

416,375

 

 

 

437,102

 

 

Property, plant, and equipment, net

94,723

 

 

 

95,409

 

 

Operating lease assets

33,383

 

 

 

27,662

 

 

Goodwill

378,740

 

 

 

329,705

 

 

Acquired intangibles

110,481

 

 

 

92,592

 

 

Other assets

1,794

 

 

 

1,980

 

 

 

$

1,035,496

 

 

 

$

984,450

 

 

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

116,853

 

 

 

$

83,136

 

 

Accrued expenses

94,009

 

 

 

98,463

 

 

Billings in excess of cost

29,281

 

 

 

47,598

 

 

Total current liabilities

240,143

 

 

 

229,197

 

 

Deferred income taxes

40,022

 

 

 

40,334

 

 

Non-current operating lease liabilities

24,400

 

 

 

19,669

 

 

Other non-current liabilities

21,167

 

 

 

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; 33,413 shares and 33,192 shares issued and outstanding in 2020 and 2019

334

 

 

 

332

 

 

Additional paid-in capital

299,829

 

 

 

295,582

 

 

Retained earnings

444,728

 

 

 

405,668

 

 

Accumulated other comprehensive loss

(8,438

)

 

 

(5,391

)

 

Cost of 993 and 906 common shares held in treasury in 2020 and 2019

(26,689

)

 

 

(22,227

)

 

Total shareholders’ equity

709,764

 

 

 

673,964

 

 

 

$

1,035,496

 

 

 

$

984,450

 

 

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

Six Months Ended

June 30,

 

2020

 

 

2019

 

Cash Flows from Operating Activities

 

 

 

Net income

$

39,351

 

 

 

$

26,258

 

 

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

 

 

 

Depreciation and amortization

11,054

 

 

 

9,892

 

 

Stock compensation expense

4,171

 

 

 

6,091

 

 

Gain on sale of business

(1,881

)

 

 

 

 

Exit activity costs, non-cash

346

 

 

 

 

 

(Benefit of) provision for deferred income taxes

(216

)

 

 

278

 

 

Other, net

1,018

 

 

 

2,437

 

 

Changes in operating assets and liabilities, excluding the effects of acquisitions:

 

 

 

Accounts receivable

(25,842

)

 

 

(41,156

)

 

Inventories

5,661

 

 

 

13,464

 

 

Other current assets and other assets

1,996

 

 

 

(4,983

)

 

Accounts payable

(1,732

)

 

 

4,012

 

 

Accrued expenses and other non-current liabilities

(41,181

)

 

 

(9,807

)

 

Net cash (used in) / provided by operating activities

(7,255

)

 

 

6,486

 

 

Cash Flows from Investing Activities

 

 

 

Acquisitions, net of cash acquired

(54,385

)

 

 

(264

)

 

Net proceeds from sale of property and equipment

59

 

 

 

60

 

 

Purchases of property, plant, and equipment

(5,231

)

 

 

(6,265

)

 

Net proceeds from sale of business

704

 

 

 

 

 

Net cash used in investing activities

(58,853

)

 

 

(6,469

)

 

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

(4,462

)

 

 

(3,149

)

 

Net proceeds from issuance of common stock

78

 

 

 

208

 

 

Net cash used in financing activities

(4,384

)

 

 

(216,176

)

 

Effect of exchange rate changes on cash

(12

)

 

 

1,035

 

 

Net decrease in cash and cash equivalents

(70,504

)

 

 

(215,124

)

 

Cash and cash equivalents at beginning of year

191,363

 

 

 

297,006

 

 

Cash and cash equivalents at end of period

$

120,859

 

 

 

$

81,882

 

 

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

June 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

 

$

98,259

 

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

$

98,259

 

 

Residential Products

 

139,472

 

 

 

 

 

 

 

 

 

 

 

 

139,472

 

 

Industrial & Infrastructure Products

 

48,263

 

 

 

 

 

 

 

 

 

 

 

 

48,263

 

 

Less Inter-Segment Sales

 

(180

)

 

 

 

 

 

 

 

 

 

 

 

(180

)

 

 

 

48,083

 

 

 

 

 

 

 

 

 

 

 

 

48,083

 

 

Consolidated sales

 

285,814

 

 

 

 

 

 

 

 

 

 

 

 

285,814

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

9,188

 

 

 

388

 

 

 

 

1,172

 

 

 

 

 

10,748

 

 

Residential Products

 

27,964

 

 

 

263

 

 

 

 

 

 

 

 

 

28,227

 

 

Industrial & Infrastructure Products

 

6,644

 

 

 

314

 

 

 

 

 

 

 

 

 

6,958

 

 

Segments Income

 

43,796

 

 

 

965

 

 

 

 

1,172

 

 

 

 

 

45,933

 

 

Unallocated corporate expense

 

(9,205

)

 

 

45

 

 

116

 

 

50

 

 

 

 

 

(8,994

)

 

Consolidated income from operations

 

34,591

 

 

 

1,010

 

 

116

 

 

1,222

 

 

 

 

 

36,939

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

214

 

 

 

 

 

 

 

 

 

 

 

 

214

 

 

Other (income) expense

 

(1,787

)

 

 

 

 

 

 

 

 

1,881

 

 

 

94

 

 

Income before income taxes

 

36,164

 

 

 

1,010

 

 

116

 

 

1,222

 

 

(1,881

)

 

 

36,631

 

 

Provision for income taxes

 

8,872

 

 

 

236

 

 

 

 

274

 

 

(469

)

 

 

8,913

 

 

Net income

 

$

27,292

 

 

 

$

774

 

 

$

116

 

 

$

948

 

 

$

(1,412

)

 

 

$

27,718

 

 

Net earnings per share – diluted

 

$

0.83

 

 

 

$

0.02

 

 

$

 

 

$

0.03

 

 

$

(0.04

)

 

 

$

0.84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

9.4

 

%

 

0.4

%

 

%

 

1.2

%

 

 

%

 

10.9

 

%

Residential Products

 

20.0

 

%

 

0.2

%

 

%

 

%

 

 

%

 

20.2

 

%

Industrial & Infrastructure Products

 

13.8

 

%

 

0.7

%

 

%

 

%

 

 

%

 

14.5

 

%

Segments Margin

 

15.3

 

%

 

0.3

%

 

%

 

0.4

%

 

 

%

 

16.1

 

%

Consolidated

 

12.1

 

%

 

0.4

%

 

%

 

0.4

%

 

 

%

 

12.9

 

%

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

June 30, 2019

 

 

As Reported In GAAP Statements

 

Restructuring and Acquisition Related Items

 

Senior Leadership Transition Costs

 

Debt Repayment

 

Adjusted Financial Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

$

76,004

 

 

 

$

 

 

 

$

 

 

 

$

 

 

 

$

76,004

 

 

Residential Products

 

130,433

 

 

 

 

 

 

 

 

 

 

 

 

130,433

 

 

Industrial & Infrastructure Products

 

56,547

 

 

 

 

 

 

 

 

 

 

 

 

56,547

 

 

Less Inter-Segment Sales

 

(329

)

 

 

 

 

 

 

 

 

 

 

 

(329

)

 

 

 

56,218

 

 

 

 

 

 

 

 

 

 

 

 

56,218

 

 

Consolidated sales

 

262,655

 

 

 

 

 

 

 

 

 

 

 

 

262,655

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

9,649

 

 

 

(95

)

 

 

 

 

 

 

 

 

9,554

 

 

Residential Products

 

20,778

 

 

 

219

 

 

 

78

 

 

 

 

 

 

21,075

 

 

Industrial & Infrastructure Products

 

4,069

 

 

 

1,346

 

 

 

 

 

 

 

 

 

5,415

 

 

Segments income

 

34,496

 

 

 

1,470

 

 

 

78

 

 

 

 

 

 

36,044

 

 

Unallocated corporate expense

 

(7,890

)

 

 

670

 

 

 

1,770

 

 

 

 

 

 

(5,450

)

 

Consolidated income from operations

 

26,606

 

 

 

2,140

 

 

 

1,848

 

 

 

 

 

 

30,594

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

219

 

 

 

 

 

 

 

 

 

(38

)

 

 

181

 

 

Other income

 

(13

)

 

 

 

 

 

 

 

 

 

 

 

(13

)

 

Income before income taxes

 

26,400

 

 

 

2,140

 

 

 

1,848

 

 

 

38

 

 

 

30,426

 

 

Provision for income taxes

 

6,487

 

 

 

533

 

 

 

(301

)

 

 

9

 

 

 

6,728

 

 

Net income

 

$

19,913

 

 

 

$

1,607

 

 

 

$

2,149

 

 

 

$

29

 

 

 

$

23,698

 

 

Net earnings per share – diluted

 

$

0.61

 

 

 

$

0.05

 

 

 

$

0.07

 

 

 

$

 

 

 

$

0.73

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

12.7

 

%

 

(0.1

)

%

 

 

%

 

 

%

 

12.6

 

%

Residential Products

 

15.9

 

%

 

0.2

 

%

 

0.1

 

%

 

 

%

 

16.2

 

%

Industrial & Infrastructure Products

 

7.2

 

%

 

2.4

 

%

 

 

%

 

 

%

 

9.6

 

%

Segments margin

 

13.1

 

%

 

0.6

 

%

 

 

%

 

 

%

 

13.7

 

%

Consolidated

 

10.1

 

%

 

0.8

 

%

 

0.7

 

%

 

 

%

 

11.6

 

%

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Six Months Ended

June 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

 

$

194,756

 

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

$

194,756

 

 

Residential Products

 

242,891

 

 

 

 

 

 

 

 

 

 

 

 

242,891

 

 

Industrial & Infrastructure Products

 

98,064

 

 

 

 

 

 

 

 

 

 

 

 

98,064

 

 

Less Inter-Segment Sales

 

(458

)

 

 

 

 

 

 

 

 

 

 

 

(458

)

 

 

 

97,606

 

 

 

 

 

 

 

 

 

 

 

 

97,606

 

 

Consolidated sales

 

535,253

 

 

 

 

 

 

 

 

 

 

 

 

535,253

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

14,887

 

 

 

406

 

 

 

 

2,173

 

 

 

 

 

17,466

 

 

Residential Products

 

41,689

 

 

 

484

 

 

 

 

 

 

 

 

 

42,173

 

 

Industrial & Infrastructure Products

 

10,633

 

 

 

312

 

 

 

 

 

 

 

 

 

10,945

 

 

Segments Income

 

67,209

 

 

 

1,202

 

 

 

 

2,173

 

 

 

 

 

70,584

 

 

Unallocated corporate expense

 

(17,428

)

 

 

99

 

 

2,342

 

 

309

 

 

 

 

 

(14,678

)

 

Consolidated income from operations

 

49,781

 

 

 

1,301

 

 

2,342

 

 

2,482

 

 

 

 

 

55,906

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

167

 

 

 

 

 

 

 

 

 

 

 

 

167

 

 

Other (income) expense

 

(1,595

)

 

 

 

 

 

 

 

 

1,881

 

 

 

286

 

 

Income before income taxes

 

51,209

 

 

 

1,301

 

 

2,342

 

 

2,482

 

 

(1,881

)

 

 

55,453

 

 

Provision for income taxes

 

11,858

 

 

 

309

 

 

 

 

590

 

 

(469

)

 

 

12,288

 

 

Net income

 

$

39,351

 

 

 

$

992

 

 

$

2,342

 

 

$

1,892

 

 

$

(1,412

)

 

 

$

43,165

 

 

Net earnings per share – diluted

 

$

1.20

 

 

 

$

0.03

 

 

$

0.07

 

 

$

0.05

 

 

$

(0.04

)

 

 

$

1.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

7.6

 

%

 

0.2

%

 

%

 

1.1

%

 

 

%

 

9.0

 

%

Residential Products

 

17.2

 

%

 

0.2

%

 

%

 

%

 

 

%

 

17.4

 

%

Industrial & Infrastructure Products

 

10.9

 

%

 

0.3

%

 

%

 

%

 

 

%

 

11.2

 

%

Segments Margin

 

12.6

 

%

 

0.2

%

 

%

 

0.4

%

 

 

%

 

13.2

 

%

Consolidated

 

9.3

 

%

 

0.2

%

 

0.4

%

 

0.5

%

 

 

%

 

10.4

 

%

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Six Months Ended

June 30, 2019

 

 

As Reported In GAAP Statements

 

Restructuring and Acquisition Related Items

 

Senior Leadership Transition Costs

 

Debt Repayment

 

Adjusted Financial Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

$

144,841

 

 

 

$

 

 

 

$

 

 

$

 

 

 

$

144,841

 

 

Residential Products

 

234,142

 

 

 

 

 

 

 

 

 

 

 

234,142

 

 

Industrial & Infrastructure Products

 

111,735

 

 

 

 

 

 

 

 

 

 

 

111,735

 

 

Less Inter-Segment Sales

 

(646

)

 

 

 

 

 

 

 

 

 

 

(646

)

 

 

 

111,089

 

 

 

 

 

 

 

 

 

 

 

111,089

 

 

Consolidated sales

 

490,072

 

 

 

 

 

 

 

 

 

 

 

490,072

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

11,281

 

 

 

(1

)

 

 

 

 

 

 

 

11,280

 

 

Residential Products

 

32,868

 

 

 

370

 

 

 

78

 

 

 

 

 

33,316

 

 

Industrial & Infrastructure Products

 

8,198

 

 

 

1,313

 

 

 

 

 

 

 

 

9,511

 

 

Segments income

 

52,347

 

 

 

1,682

 

 

 

78

 

 

 

 

 

54,107

 

 

Unallocated corporate expense

 

(15,175

)

 

 

677

 

 

 

4,265

 

 

 

 

 

(10,233

)

 

Consolidated income from operations

 

37,172

 

 

 

2,359

 

 

 

4,343

 

 

 

 

 

43,874

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

2,280

 

 

 

 

 

 

 

 

(1,079

)

 

 

1,201

 

 

Other expense

 

576

 

 

 

 

 

 

 

 

 

 

 

576

 

 

Income before income taxes

 

34,316

 

 

 

2,359

 

 

 

4,343

 

 

1,079

 

 

 

42,097

 

 

Provision for income taxes

 

8,058

 

 

 

587

 

 

 

320

 

 

269

 

 

 

9,234

 

 

Net income

 

$

26,258

 

 

 

$

1,772

 

 

 

$

4,023

 

 

$

810

 

 

 

$

32,863

 

 

Net earnings per share – diluted

 

$

0.80

 

 

 

$

0.06

 

 

 

$

0.12

 

 

$

0.03

 

 

 

$

1.01

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

7.8

 

%

 

 

%

 

%

 

 

%

 

7.8

 

%

Residential Products

 

14.0

 

%

 

0.2

 

%

 

%

 

 

%

 

14.2

 

%

Industrial & Infrastructure Products

 

7.4

 

%

 

1.2

 

%

 

%

 

 

%

 

8.6

 

%

Segments margin

 

10.7

 

%

 

0.3

 

%

 

%

 

 

%

 

11.0

 

%

Consolidated

 

7.6

 

%

 

0.5

 

%

 

0.9

%

 

 

%

 

9.0

 

%

 

0
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