UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 26, 2018 (July 26, 2018)
GIBRALTAR INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware | 0-22462 | 16-1445150 | ||
(State or other jurisdiction of incorporation ) | (Commission File Number) | (IRS Employer Identification No.) | ||
3556 Lake Shore Road
P.O. Box 2028
Buffalo, New York 14219-0228
(Address of principal executive offices) (Zip Code)
(716) 826-6500
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
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TABLE OF CONTENTS
Item 2.02 Results of Operations and Financial Condition | 3 | ||||
Item 7.01 Regulation FD Disclosure | 3 | ||||
Item 9.01 Financial Statements and Exhibits | 3 | ||||
SIGNATURE | 4 | ||||
2
Item 2.02 Results of Operations and Financial Condition
and
Item 7.01 Regulation FD Disclosure
The following information is furnished pursuant to both Item 2.02 and Item 7.01:
On July 26, 2018, Gibraltar Industries, Inc. (the “Company”) issued a news release and held a conference call regarding results for the three months ended June 30, 2018. A copy of the news release (the “Release”) is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The Company references adjusted financial information in both the Release and the conference call. A reconciliation of these adjusted financial measures is contained in the Release. The information in this Form 8-K under the captions Items 2.02 and 7.01 and Item 9.01, including the Release, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, unless the Company specifically incorporates it by reference in a document filed under the Securities Act or the Exchange Act.
Item 9.01 Financial Statements and Exhibits
(a)-(c) Not Applicable
(d) Exhibits:
Exhibit No. | Description | |
Earnings Release issued by Gibraltar Industries, Inc. on July 26, 2018 | ||
3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GIBRALTAR INDUSTRIES, INC. | ||||
Date: | July 26, 2018 | |||
By: | /s/ Jeffrey J. Watorek | |||
Jeffrey J. Watorek | ||||
Vice President, Treasurer and Secretary | ||||
4
Gibraltar Announces Second-Quarter 2018 Financial Results
Reports Revenues of $266.0 million, GAAP EPS of $0.70 and Adjusted EPS of $0.71
Revenues up 7% YOY; GAAP EPS up 71% YOY; Adjusted EPS up 65% YOY
Maintains Guidance for Full-Year 2018
Buffalo, New York, July 26, 2018 - Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and distributor of building products for the residential, industrial, infrastructure, and renewable energy and conservation markets, today reported its financial results for the three- and six-month periods ended June 30, 2018. All financial metrics in this release reflect only the Company’s continuing operations unless otherwise noted.
Second-quarter Consolidated Results
Gibraltar reported the following consolidated results:
Three Months Ended June 30, | |||||||
Dollars in millions, except EPS | GAAP | Adjusted | |||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||
Net Sales | $266.0 | $247.6 | 7.4% | $266.0 | $247.6 | 7.4% | |
Net Income | $22.8 | $13.2 | 72.7% | $23.1 | $14.0 | 65.0% | |
Diluted EPS | $0. 70 | $0.41 | 70.7% | $0.71 | $0.43 | 65.1% | |
The Company reported second-quarter 2018 net sales of $266.0 million at the higher end of its expectations outlined in its first-quarter earnings release. The 7 percent year-over-year increase was driven by higher sales across all business segments.
GAAP and adjusted earnings exceeded the Company’s guidance due to improving performance in the Renewable Energy & Conservation and Industrial & Infrastructure businesses, the success of 80/20 simplification initiatives, a greater mix of higher-margin innovative products, better alignment of selling prices to material costs and a tax benefit related to performance share vesting. The adjusted amounts for the second quarter of 2018 and 2017 remove special items from both periods, as described in the appended reconciliation of adjusted financial measures.
Management Comments
“We delivered a strong second quarter as we achieved revenues at the high end of our guidance range and exceeded our earnings guidance,” said President and CEO Frank Heard. “Revenues benefited from strong domestic demand in the Renewable Energy & Conservation and Industrial & Infrastructure businesses, and from sales of new innovative products across our segments. On the bottom line, a greater mix of higher-margin innovative products, the impact of pricing actions, 80/20 simplification initiatives, and a tax benefit related to performance-based compensation resulted in a 71 percent year-over-year increase in GAAP EPS and a 65 percent increase in adjusted EPS.
“Four years into our transformation, we are now firmly in growth mode, where much of our work is centered on our ‘Innovation’ strategic pillar. While we are benefiting from ongoing operational excellence efforts, we are now squarely focused on driving sustainable organic growth through new product development. We have already made good progress, as innovative products advanced to 9 percent of revenues during the quarter, from 7 percent in 2017 and 4 percent in 2014.”
Second-quarter Segment Results
Residential Products
For the second quarter, the Residential Products segment reported:
Three Months Ended June 30, | |||||||
Dollars in millions | GAAP | Adjusted | |||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||
Net Sales | $131.1 | $127.3 | 3.0% | $131.1 | $127.3 | 3.0% | |
Operating Margin | 18.5% | 17.7% | 80 bps | 18.5% | 17.8% | 70 bps | |
Second-quarter 2018 revenues in Gibraltar’s Residential Products segment were up 3 percent versus 2017 primarily due to pricing actions related to raw material cost increases.
Product mix and improved raw material cost recovery through pricing actions accounted for the increase in adjusted operating income. The adjusted operating margin for the second quarter of 2018 and 2017 removes the special charges for restructuring initiatives under the 80/20 program from both periods.
Industrial & Infrastructure Products
For the second quarter, the Industrial & Infrastructure Products segment reported:
Three Months Ended June 30, | |||||||
Dollars in millions | GAAP | Adjusted | |||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||
Net Sales | $61.2 | $57.6 | 6.3% | $61.2 | $57.6 | 6.3% | |
Operating Margin | 10.8% | 5.9% | 490 bps | 10.8% | 3.5% | 730 bps | |
Second-quarter 2018 revenues in Gibraltar’s Industrial & Infrastructure Products segment were up 6 percent versus 2017, driven primarily by contributions from new innovative industrial products and pricing actions related to raw material cost increases. The Company expects continued demand for innovative products to enhance this segment’s profitability for the remainder of the year.
GAAP and adjusted operating margin improvement for the segment reflects operational efficiencies resulting from the Company’s 80/20 initiatives, higher demand for innovative products, and timing of pricing actions relative to material cost increases. This segment’s adjusted operating margin for the second quarter of 2018 and 2017 removes the special charges for restructuring initiatives under the 80/20 program and portfolio management activities.
Renewable Energy & Conservation
For the second quarter, the Renewable Energy & Conservation segment reported:
Three Months Ended June 30, | |||||||
Dollars in millions | GAAP | Adjusted | |||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||
Net Sales | $73.7 | $62.8 | 17.4% | $73.7 | $62.8 | 17.4% | |
Operating Margin | 13.0% | 5.6% | 740 bps | 13.0% | 8.1% | 490 bps | |
Renewable Energy & Conservation segment revenues were up 17 percent year over year due to strong demand in both Gibraltar’s domestic renewable energy and conservation markets and continued traction of innovative products.
The second-quarter 2018 GAAP and adjusted operating margin reflects higher-margin product mix and 80/20 operational improvements. This segment’s adjusted operating margin for the second quarter of 2018 and 2017 removes the special charges for restructuring initiatives, senior leadership transition costs and portfolio management activities.
Business Outlook
“We are optimistic about the second half of the year as we expect our innovation projects to continue to gain traction across all of our segments,” said Heard. “At the same time, we are cautious about the domestic and global volatility and competitive pressures related to the impact of tariffs. In addition, we expect higher development costs as we execute on our new product initiatives. Our goals for 2018 continue to be to drive sustainable organic growth through the acceleration of new product development initiatives, implement 80/20 simplification projects, and seek value-added acquisitions in attractive end markets.”
Gibraltar is maintaining its guidance for revenues and earnings for full-year 2018. Gibraltar expects 2018 consolidated revenues to exceed $1 billion, considering modest growth across the Company’s end markets and continued traction from innovative products. GAAP EPS for the full year 2018 are expected to be in the range of $1.75 to $1.87, or $1.96 to $2.08 on an adjusted basis, compared with $1.95 and $1.71, respectively, in 2017.
For the third quarter of 2018, the Company is expecting revenue in the range of $285 million to $295 million as a result of continued traction from innovative products. GAAP EPS for the third quarter 2018 are expected to be between $0.54 and $0.61, or $0.65 to $0.72 on an adjusted basis.
FY 2018 Guidance Reconciliation | |||||||||||||||||||||||
Gibraltar Industries | |||||||||||||||||||||||
Dollars in millions, except EPS | Operating | Income | Net | Diluted Earnings | |||||||||||||||||||
Income | Margin | Taxes | Income | Per Share | |||||||||||||||||||
GAAP Measures | $ | 93-99 | 9.2-9.6 % | $ | 22-23 | $ | 56-60 | $ | 1.75-1.87 | ||||||||||||||
Restructuring Costs | 10 | 1% | 3 | 7 | 0.21 | ||||||||||||||||||
Adjusted Measures | $ | 103-109 | 10.2-10.6% | $ | 25-26 | $ | 63-67 | $ | 1.96-2.08 | ||||||||||||||
Second-quarter Conference Call Details
Gibraltar has scheduled a conference call today starting at 9:00 a.m. ET to review its results for the second quarter of 2018. Interested parties may access the call by dialing (877) 407-5790 or (201) 689-8328. The presentation slides that will be discussed in the conference call are expected to be available this morning, prior to the start of the call. The slides may be downloaded from the Gibraltar website: www.gibraltar1.com. 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 distributor of building products for the residential, industrial, infrastructure, and renewable energy and conservation markets. With a four-pillar strategy focused on operational improvement, product innovation, portfolio management and acquisitions, Gibraltar’s mission is to drive best-in-class performance. Gibraltar serves customers primarily throughout North America and to a lesser extent Asia. Comprehensive information about Gibraltar can be found on its website at www.gibraltar1.com.
Safe Harbor Statement
Information contained in this news release, other than historical information, contains forward-looking statements and is subject to a number of risk factors, uncertainties, and assumptions. Risk factors that could affect these statements include, but are not limited to, the following: the availability of raw materials and the effects of changing raw material prices on the Company’s results of operations; energy prices and usage; changing demand for the Company’s products and services; changes in the liquidity of the capital and credit markets; risks associated with the integration and performance of acquisitions; and changes in interest and tax rates. In addition, such forward-looking statements could also be affected by general industry and market conditions, as well as macroeconomic factors including government monetary and trade policies, such as tariffs and expiration of tax credits along with currency fluctuations and general political conditions. Other risks and uncertainties that arise from time to time are described in Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K. 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 the 80/20 simplification initiative and portfolio management actions, acquisition-related items, 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.
Next Earnings Announcement
Gibraltar expects to release its financial results for the three- and nine-month period ending September 30, 2018, on Thursday, November 1, 2018, and hold its earnings conference call later that morning, starting at 9:00 a.m. ET.
Contact:
Timothy Murphy
Chief Financial Officer
(716) 826-6500 ext. 3277
tfmurphy@gibraltar1.com
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net Sales | $ | 266,036 | $ | 247,627 | $ | 481,373 | $ | 454,232 | |||||||
Cost of sales | 195,533 | 185,802 | 362,552 | 343,152 | |||||||||||
Gross profit | 70,503 | 61,825 | 118,821 | 111,080 | |||||||||||
Selling, general, and administrative expense | 38,229 | 36,895 | 72,704 | 76,471 | |||||||||||
Income from operations | 32,274 | 24,930 | 46,117 | 34,609 | |||||||||||
Interest expense | 3,130 | 3,550 | 6,399 | 7,126 | |||||||||||
Other expense (income) | 13 | 353 | (572 | ) | 407 | ||||||||||
Income before taxes | 29,131 | 21,027 | 40,290 | 27,076 | |||||||||||
Provision for income taxes | 6,294 | 7,853 | 9,101 | 9,906 | |||||||||||
Income from continuing operations | 22,837 | 13,174 | 31,189 | 17,170 | |||||||||||
Discontinued operations: | |||||||||||||||
Loss before taxes | — | (644 | ) | — | (644 | ) | |||||||||
Benefit of income taxes | — | (239 | ) | — | (239 | ) | |||||||||
Loss from discontinued operations | — | (405 | ) | — | (405 | ) | |||||||||
Net income | $ | 22,837 | $ | 12,769 | $ | 31,189 | $ | 16,765 | |||||||
Net earnings per share – Basic: | |||||||||||||||
Income from continuing operations | $ | 0.72 | $ | 0.41 | $ | 0.98 | $ | 0.54 | |||||||
Loss from discontinued operations | — | (0.01 | ) | — | (0.01 | ) | |||||||||
Net income | $ | 0.72 | $ | 0.40 | $ | 0.98 | $ | 0.53 | |||||||
Weighted average shares outstanding -- Basic | 31,862 | 31,709 | 31,824 | 31,698 | |||||||||||
Net earnings per share – Diluted: | |||||||||||||||
Income from continuing operations | $ | 0.70 | $ | 0.41 | $ | 0.96 | $ | 0.53 | |||||||
Loss from discontinued operations | — | (0.01 | ) | — | (0.01 | ) | |||||||||
Net income | $ | 0.70 | $ | 0.40 | $ | 0.96 | $ | 0.52 | |||||||
Weighted average shares outstanding -- Diluted | 32,553 | 32,183 | 32,498 | 32,219 | |||||||||||
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
June 30, 2018 | December 31, 2017 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 210,743 | $ | 222,280 | |||
Accounts receivable, net | 171,642 | 145,385 | |||||
Inventories | 95,694 | 86,372 | |||||
Other current assets | 11,594 | 8,727 | |||||
Total current assets | 489,673 | 462,764 | |||||
Property, plant, and equipment, net | 93,221 | 97,098 | |||||
Goodwill | 320,875 | 321,074 | |||||
Acquired intangibles | 101,554 | 105,768 | |||||
Other assets | 4,597 | 4,681 | |||||
$ | 1,009,920 | $ | 991,385 | ||||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 88,547 | $ | 82,387 | |||
Accrued expenses | 65,174 | 75,467 | |||||
Billings in excess of cost | 15,527 | 12,779 | |||||
Current maturities of long-term debt | 400 | 400 | |||||
Total current liabilities | 169,648 | 171,033 | |||||
Long-term debt | 209,613 | 209,621 | |||||
Deferred income taxes | 31,196 | 31,237 | |||||
Other non-current liabilities | 38,567 | 47,775 | |||||
Shareholders’ equity: | |||||||
Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding | — | — | |||||
Common stock, $0.01 par value; authorized 50,000 shares; 32,755 shares and 32,332 shares issued and outstanding in 2018 and 2017 | 327 | 323 | |||||
Additional paid-in capital | 277,307 | 271,957 | |||||
Retained earnings | 306,375 | 274,562 | |||||
Accumulated other comprehensive loss | (6,340 | ) | (4,366 | ) | |||
Cost of 767 and 615 common shares held in treasury in 2018 and 2017 | (16,773 | ) | (10,757 | ) | |||
Total shareholders’ equity | 560,896 | 531,719 | |||||
$ | 1,009,920 | $ | 991,385 | ||||
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
Cash Flows from Operating Activities | |||||||
Net income | $ | 31,189 | $ | 16,765 | |||
Loss from discontinued operations | — | (405 | ) | ||||
Income from continuing operations | 31,189 | 17,170 | |||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||
Depreciation and amortization | 10,345 | 11,006 | |||||
Stock compensation expense | 4,828 | 3,191 | |||||
Net gain on sale of assets | (52 | ) | (39 | ) | |||
Exit activity recoveries, non-cash | (662 | ) | (2,737 | ) | |||
Other, net | 709 | 628 | |||||
Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||||||
Accounts receivable | (22,048 | ) | (14,446 | ) | |||
Inventories | (14,985 | ) | 2,245 | ||||
Other current assets and other assets | (2,840 | ) | (2,174 | ) | |||
Accounts payable | 6,064 | 16,962 | |||||
Accrued expenses and other non-current liabilities | (16,351 | ) | (10,086 | ) | |||
Net cash (used in) provided by operating activities | (3,803 | ) | 21,720 | ||||
Cash Flows from Investing Activities | |||||||
Cash paid for acquisitions, net of cash acquired | — | (18,494 | ) | ||||
Net proceeds from sale of property and equipment | 2,929 | 12,778 | |||||
Purchases of property, plant, and equipment | (3,704 | ) | (3,274 | ) | |||
Net cash used in investing activities | (775 | ) | (8,990 | ) | |||
Cash Flows from Financing Activities | |||||||
Long-term debt payments | (400 | ) | (400 | ) | |||
Purchase of treasury stock at market prices | (6,016 | ) | (1,003 | ) | |||
Net proceeds from issuance of common stock | 526 | 247 | |||||
Net cash used in financing activities | (5,890 | ) | (1,156 | ) | |||
Effect of exchange rate changes on cash | (1,069 | ) | 628 | ||||
Net (decrease) increase in cash and cash equivalents | (11,537 | ) | 12,202 | ||||
Cash and cash equivalents at beginning of year | 222,280 | 170,177 | |||||
Cash and cash equivalents at end of period | $ | 210,743 | $ | 182,379 | |||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended June 30, 2018 | ||||||||||||||||
As Reported In GAAP Statements | Restructuring Charges | Senior Leadership Transition Costs | Adjusted Financial Measures | |||||||||||||
Net Sales | ||||||||||||||||
Residential Products | $ | 131,128 | $ | — | $ | — | $ | 131,128 | ||||||||
Industrial & Infrastructure Products | 61,561 | — | — | 61,561 | ||||||||||||
Less Inter-Segment Sales | (368 | ) | — | — | (368 | ) | ||||||||||
61,193 | — | — | 61,193 | |||||||||||||
Renewable Energy & Conservation | 73,715 | — | — | 73,715 | ||||||||||||
Consolidated sales | 266,036 | — | — | 266,036 | ||||||||||||
Income from operations | ||||||||||||||||
Residential Products | 24,196 | (29 | ) | — | 24,167 | |||||||||||
Industrial & Infrastructure Products | 6,604 | (28 | ) | — | 6,576 | |||||||||||
Renewable Energy & Conservation | 9,556 | (3 | ) | — | 9,553 | |||||||||||
Segments income | 40,356 | (60 | ) | — | 40,296 | |||||||||||
Unallocated corporate expense | (8,082 | ) | 223 | 153 | (7,706 | ) | ||||||||||
Consolidated income from operations | 32,274 | 163 | 153 | 32,590 | ||||||||||||
Interest expense | 3,130 | — | — | 3,130 | ||||||||||||
Other expense | 13 | — | — | 13 | ||||||||||||
Income before income taxes | 29,131 | 163 | 153 | 29,447 | ||||||||||||
Provision for income taxes | 6,294 | 40 | 43 | 6,377 | ||||||||||||
Income from continuing operations | $ | 22,837 | $ | 123 | $ | 110 | $ | 23,070 | ||||||||
Income from continuing operations per share - diluted | $ | 0.70 | $ | 0.01 | $ | — | $ | 0.71 | ||||||||
Operating margin | ||||||||||||||||
Residential Products | 18.5 | % | — | % | — | % | 18.5 | % | ||||||||
Industrial & Infrastructure Products | 10.8 | % | — | % | — | % | 10.8 | % | ||||||||
Renewable Energy & Conservation | 13.0 | % | — | % | — | % | 13.0 | % | ||||||||
Segments Margin | 15.2 | % | — | % | — | % | 15.2 | % | ||||||||
Consolidated | 12.1 | % | 0.1 | % | 0.1 | % | 12.3 | % | ||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended June 30, 2017 | ||||||||||||||||||||
As Reported In GAAP Statements | Acquisition & Restructuring Charges | Senior Leadership Transition Costs | Portfolio Management | Adjusted Financial Measures | ||||||||||||||||
Net Sales | ||||||||||||||||||||
Residential Products | $ | 127,252 | $ | — | $ | — | $ | — | $ | 127,252 | ||||||||||
Industrial & Infrastructure Products | 57,926 | — | — | — | 57,926 | |||||||||||||||
Less Inter-Segment Sales | (314 | ) | — | — | — | (314 | ) | |||||||||||||
57,612 | — | — | — | 57,612 | ||||||||||||||||
Renewable Energy & Conservation | 62,763 | — | — | — | 62,763 | |||||||||||||||
Consolidated sales | 247,627 | — | — | — | 247,627 | |||||||||||||||
Income from operations | ||||||||||||||||||||
Residential Products | 22,579 | 81 | — | — | 22,660 | |||||||||||||||
Industrial & Infrastructure Products | 3,397 | — | — | (1,379 | ) | 2,018 | ||||||||||||||
Renewable Energy & Conservation | 3,492 | — | 252 | 1,369 | 5,113 | |||||||||||||||
Segments income | 29,468 | 81 | 252 | (10 | ) | 29,791 | ||||||||||||||
Unallocated corporate expense | (4,538 | ) | 148 | 73 | — | (4,317 | ) | |||||||||||||
Consolidated income from operations | 24,930 | 229 | 325 | (10 | ) | 25,474 | ||||||||||||||
Interest expense | 3,550 | — | — | — | 3,550 | |||||||||||||||
Other expense | 353 | — | — | — | 353 | |||||||||||||||
Income before income taxes | 21,027 | 229 | 325 | (10 | ) | 21,571 | ||||||||||||||
Provision for income taxes | 7,853 | 86 | 124 | (479 | ) | 7,584 | ||||||||||||||
Income from continuing operations | $ | 13,174 | $ | 143 | $ | 201 | $ | 469 | $ | 13,987 | ||||||||||
Income from continuing operations per share - diluted | $ | 0.41 | $ | — | $ | 0.01 | $ | 0.01 | $ | 0.43 | ||||||||||
Operating margin | ||||||||||||||||||||
Residential Products | 17.7 | % | 0.1 | % | — | % | — | % | 17.8 | % | ||||||||||
Industrial & Infrastructure Products | 5.9 | % | — | % | — | % | (2.4 | )% | 3.5 | % | ||||||||||
Renewable Energy & Conservation | 5.6 | % | — | % | 0.4 | % | 2.2 | % | 8.1 | % | ||||||||||
Segments margin | 11.9 | % | — | % | 0.1 | % | — | % | 12.0 | % | ||||||||||
Consolidated | 10.1 | % | 0.1 | % | 0.1 | % | — | % | 10.3 | % | ||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Six Months Ended June 30, 2018 | ||||||||||||||||||||
As Reported In GAAP Statements | Restructuring Charges | Senior Leadership Transition Costs | Tax Reform | Adjusted Financial Measures | ||||||||||||||||
Net Sales | ||||||||||||||||||||
Residential Products | $ | 235,076 | $ | — | $ | — | $ | — | $ | 235,076 | ||||||||||
Industrial & Infrastructure Products | 116,185 | — | — | — | 116,185 | |||||||||||||||
Less Inter-Segment Sales | (589 | ) | — | — | — | (589 | ) | |||||||||||||
115,596 | — | — | — | 115,596 | ||||||||||||||||
Renewable Energy & Conservation | 130,701 | — | — | — | 130,701 | |||||||||||||||
Consolidated sales | 481,373 | — | — | — | 481,373 | |||||||||||||||
Income from operations | ||||||||||||||||||||
Residential Products | 37,434 | (195 | ) | — | — | 37,239 | ||||||||||||||
Industrial & Infrastructure Products | 9,206 | (513 | ) | — | — | 8,693 | ||||||||||||||
Renewable Energy & Conservation | 13,618 | 133 | 178 | — | 13,929 | |||||||||||||||
Segments income | 60,258 | (575 | ) | 178 | — | 59,861 | ||||||||||||||
Unallocated corporate expense | (14,141 | ) | 267 | 458 | — | (13,416 | ) | |||||||||||||
Consolidated income from operations | 46,117 | (308 | ) | 636 | — | 46,445 | ||||||||||||||
Interest expense | 6,399 | — | — | — | 6,399 | |||||||||||||||
Other income | (572 | ) | — | — | — | (572 | ) | |||||||||||||
Income before income taxes | 40,290 | (308 | ) | 636 | — | 40,618 | ||||||||||||||
Provision for income taxes | 9,101 | (106 | ) | 173 | 68 | 9,236 | ||||||||||||||
Income from continuing operations | $ | 31,189 | $ | (202 | ) | $ | 463 | $ | (68 | ) | $ | 31,382 | ||||||||
Income from continuing operations per share – diluted | $ | 0.96 | $ | (0.01 | ) | $ | 0.02 | $ | — | $ | 0.97 | |||||||||
Operating margin | ||||||||||||||||||||
Residential Products | 15.9 | % | (0.1 | )% | — | % | — | % | 15.8 | % | ||||||||||
Industrial & Infrastructure Products | 8.0 | % | (0.4 | )% | — | % | — | % | 7.5 | % | ||||||||||
Renewable Energy & Conservation | 10.4 | % | 0.1 | % | 0.1 | % | — | % | 10.7 | % | ||||||||||
Segments margin | 12.5 | % | (0.1 | )% | — | % | — | % | 12.4 | % | ||||||||||
Consolidated | 9.6 | % | (0.1 | )% | 0.1 | % | — | % | 9.6 | % | ||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Six Months Ended June 30, 2017 | ||||||||||||||||||||
As Reported In GAAP Statements | Acquisition & Restructuring Charges | Senior Leadership Transition Costs | Portfolio Management | Adjusted Financial Measures | ||||||||||||||||
Net Sales | ||||||||||||||||||||
Residential Products | $ | 231,803 | $ | — | $ | — | $ | — | $ | 231,803 | ||||||||||
Industrial & Infrastructure Products | 108,644 | — | — | — | 108,644 | |||||||||||||||
Less Inter-Segment Sales | (770 | ) | — | — | — | (770 | ) | |||||||||||||
107,874 | — | — | — | 107,874 | ||||||||||||||||
Renewable Energy & Conservation | 114,555 | — | — | — | 114,555 | |||||||||||||||
Consolidated sales | 454,232 | — | — | — | 454,232 | |||||||||||||||
Income from operations | ||||||||||||||||||||
Residential Products | 38,220 | 245 | — | — | 38,465 | |||||||||||||||
Industrial & Infrastructure Products | 3,360 | — | — | 381 | 3,741 | |||||||||||||||
Renewable Energy & Conservation | 6,832 | — | 252 | 2,419 | 9,503 | |||||||||||||||
Segments income | 48,412 | 245 | 252 | 2,800 | 51,709 | |||||||||||||||
Unallocated corporate expense | (13,803 | ) | 278 | 420 | — | (13,105 | ) | |||||||||||||
Consolidated income from operations | 34,609 | 523 | 672 | 2,800 | 38,604 | |||||||||||||||
Interest expense | 7,126 | — | — | — | 7,126 | |||||||||||||||
Other expense | 407 | — | — | — | 407 | |||||||||||||||
Income before income taxes | 27,076 | 523 | 672 | 2,800 | 31,071 | |||||||||||||||
Provision for income taxes | 9,906 | 195 | 252 | 197 | 10,550 | |||||||||||||||
Income from continuing operations | $ | 17,170 | $ | 328 | $ | 420 | $ | 2,603 | $ | 20,521 | ||||||||||
Income from continuing operations per share - diluted | $ | 0.53 | $ | 0.01 | $ | 0.02 | $ | 0.08 | $ | 0.64 | ||||||||||
Operating margin | ||||||||||||||||||||
Residential Products | 16.5 | % | 0.1 | % | — | % | — | % | 16.6 | % | ||||||||||
Industrial & Infrastructure Products | 3.1 | % | — | % | — | % | 0.4 | % | 3.5 | % | ||||||||||
Renewable Energy & Conservation | 6.0 | % | — | % | 0.2 | % | 2.1 | % | 8.3 | % | ||||||||||
Segments margin | 10.7 | % | 0.1 | % | 0.1 | % | 0.6 | % | 11.4 | % | ||||||||||
Consolidated | 7.6 | % | 0.1 | % | 0.1 | % | 0.6 | % | 8.5 | % | ||||||||||