02/25/21 at 7:30 AM EST

Gibraltar Announces Full Year And Fourth Quarter 2020 Financial Results

Gibraltar Delivers Record Revenue and EPS performance in 2020

2020 Revenues Grow 15%, GAAP, Adjusted EPS Expands 38% and 18%, Respectively

Q4 Revenues Improves 17%, GAAP, Adjusted EPS Up 15% and 4%, Respectively

Backlog 50% Higher on Continued Renewable Energy and Conservation Demand

BUFFALO, N.Y.--(BUSINESS WIRE)--Feb. 25, 2021-- Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the renewable energy, conservation, residential and infrastructure markets, today reported its financial results for the three-month period ended December 31, 2020. Results of TerraSmart, acquired at the end of the day on December 31, 2020, had no impact on operations in 2020 in reported results.

“Overall, we delivered record performance in 2020 while remaining very focused on the health and well-being of our people, operations, customers, and communities. We also worked on the business, executed key initiatives, and generated strong cash flow, enabling material investments to support our long term strategy,” said President and Chief Executive Officer Bill Bosway. “Our fourth quarter performance was solid with revenue increasing 17% and adjusted EPS increasing 4%, and we enter 2021 with a strong backlog of approximately $300 million, up 50%, and a strong balance sheet and cash flow profile to continue driving our key initiatives.”

Fourth Quarter 2020 Consolidated Results from Continuing Operations*

Gibraltar reported the following consolidated results from continuing operations:

 

Three Months Ended December 31,

Dollars in millions, except EPS

GAAP

 

Adjusted

 

2020

 

2019

 

% Change

 

2020

 

2019

 

% Change

Net Sales

$265.2

$226.0

17.3%

 

$265.2

$226.0

17.3%

Net Income

$17.6

$15.0

17.3%

 

$19.5

$18.6

4.8%

Diluted EPS

$0.53

$0.46

15.2%

 

$0.59

$0.57

3.5%

Fourth quarter 2020 net sales from continuing operations increased 17.3% to $265.2 million, driven by the Residential Products and Renewable Energy & Conservation segments. Of the 17.3% increase, organic growth accounted for 3.6%, and recent acquisitions contributed 13.7%.

GAAP earnings increased 17.3% to $17.6 million, or $0.53 per share, while adjusted earnings increased 4.8% to $19.5 million, or $0.59 per share, the result of organic growth and continued margin expansion in the Residential Products segment, 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.

*Gibraltar has classified the Industrial business as a discontinued operation with fourth quarter 2020 results. Included in fourth quarter 2020 loss from discontinued operations of $26.1 million is a non-cash loss of $29.6 million related to the disposal of this business.

Fourth Quarter Segment Results

Renewable Energy & Conservation

The acquisition of TerraSmart, an important addition to Gibraltar’s renewable energy business, was completed on December 31, 2020. TerraSmart delivered 2020 revenue of $157 million and adjusted EBITDA of $26 million, in line with expectations creating a business with approximately $400M in revenue and operating margin in excess of 12% on a Pro Forma basis as we enter 2021. TerraSmart’s 2020 results did not impact Gibraltar’s Q4 2020 results.

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

 

Three Months Ended December 31,

Dollars in millions

GAAP

 

Adjusted

 

2020

 

2019

 

% Change

 

2020

 

2019

 

% Change

Net Sales

$124.6

$111.4

11.8%

 

$124.6

$111.4

11.8%

Operating Margin

9.4%

14.9%

(550) bps

 

9.7%

15.2%

(550) bps

Segment revenue increased 11.8% driven by growth from acquisitions. Organic revenue slowed during the quarter driven by certain market dynamics. Solar customers experienced unanticipated solar panel supply challenges and building permit delays causing temporary delays to existing projects slated for the fourth quarter. In the conservation business, market conditions for greenhouse structures and processing extraction equipment serving the cannabis and hemp markets remain slow, but the positive momentum in order activity and backlog over the last 60 days supports our previous expectation of these two markets being solid in 2021. Total segment backlog continued to grow, increasing 55%, driven by continued strength in both solar energy and organic produce end markets.

Adjusted operating margin performance was driven by a reduction in solar volume as existing solar projects moved into 2021. We expect the solar panel supply challenges to subside in the first half of 2021. We also experienced a delay to our integration plan of Thermo Energy Systems (TES), which is located in Canada, due to mandated Covid-19 visitation and travel restrictions between the U.S. and Canada. The slower greenhouse structures and processing equipment market for cannabis and hemp impacted volume and productivity initiatives in the quarter creating a margin drag accordingly.

Residential Products

For the fourth quarter, the Residential Products segment reported:

 

Three Months Ended December 31,

Dollars in millions

GAAP

 

Adjusted

 

2020

 

2019

 

% Change

 

2020

 

2019

 

% Change

Net Sales

$128.2

$101.2

26.7%

 

$128.2

$101.2

26.7%

Operating Margin

15.8%

13.0%

280 bps

 

15.9%

13.1%

280 bps

Segment revenue increased 26.7% as the residential market continued to show solid activity, with strong demand and participation gains across all channels. Organic growth was 21.4%, with the acquired Architectural Mailboxes business contributing 5.3% growth. Adjusted operating margin increased with consistent execution on higher volume, and additional 80/20 initiatives.

Infrastructure Products

As noted above, Gibraltar completed the sale of the Industrial business on February 23, 2021. The results of the Industrial business are included as discontinued operations and the assets and liabilities have been reclassified as held-for-sale in fourth quarter 2020 results.

For the fourth quarter, the Infrastructure Products segment reported:

 

Three Months Ended December 31,

Dollars in millions

GAAP

 

Adjusted

 

2020

 

2019

 

% Change

 

2020

 

2019

 

% Change

Net Sales

$12.4

$13.4

(7.5)%

 

$12.4

$13.4

(7.5)%

Operating Margin

4.6%

5.8%

(120) bps

 

6.4%

5.8%

60 bps

Segment revenue decreased 7.5% as the pandemic continued to impact existing and new project schedules, especially in segments like airport runway maintenance, where customers have delayed spending. The increase in adjusted operating margin was driven by strong execution in fabricated product sales which has offset a decline in our higher margin non-fabricated product lines. Infrastructure backlog improved modestly, but bidding activity has approached record levels moving into 2021.

Business Outlook

“We enter 2021 with momentum across our businesses and confidence in our end markets, and we will continue executing our operating playbook, maintaining a safe environment for our people and supporting our customers,” Mr. Bosway concluded. “Although we are dealing with challenging short term market dynamics, I am confident we will deliver full year growth and margin expansion in 2021.”

Gibraltar is providing guidance for revenue and earnings for the full year 2021. Consolidated revenue is expected to range between $1.3 billion and $1.35 billion. GAAP EPS is expected to range between $2.78 and $2.95, compared to $2.53 in 2020, and adjusted EPS is expected to range between $3.30 and $3.47, compared to $2.73 in 2020.

 

Gibraltar Industries

Dollars in millions, except EPS

 

Operating

Income

Net

Diluted
Earnings

 

Revenue

Income

Margin

Taxes

Income

Per Share

GAAP Measures

$1.3B - $1.35B

$

127-135

9.8-10.0%

$

36-38

$

92-98

$

2.78-2.95

Adjustments

 

22

1.7%

 

4

 

17

0.52

Adjusted Measures

$

149-157

11.5-11.7%

$

40-42

$

109-115

$

3.30-3.47

Fourth 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 fourth 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 (877) 407-3088 or (201) 389-0927. For interested individuals unable to join the live conference call, a webcast replay will be available on the Company’s website for one year.

About Gibraltar

Gibraltar Industries is a leading manufacturer and provider of products and services for the renewable energy, conservation, residential, 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, restatement of previously reported adjusted financial measures to account for discontinued operations 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
December 31,

 

Twelve Months Ended
December 31,

 

2020

 

2019

 

2020

 

2019

Net Sales

$

265,201

 

 

$

226,034

 

 

$

1,032,578

 

 

$

898,233

 

Cost of sales

202,775

 

 

168,608

 

 

776,235

 

 

678,336

 

Gross profit

62,426

 

 

57,426

 

 

256,343

 

 

219,897

 

Selling, general, and administrative expense

39,704

 

 

37,193

 

 

149,153

 

 

139,085

 

Income from operations

22,722

 

 

20,233

 

 

107,190

 

 

80,812

 

Interest expense (income)

220

 

 

(5

)

 

703

 

 

2,323

 

Other expense (income)

150

 

 

192

 

 

(1,272

)

 

408

 

Income before taxes

22,352

 

 

20,046

 

 

107,759

 

 

78,081

 

Provision for income taxes

4,754

 

 

5,003

 

 

24,468

 

 

18,153

 

Income from continuing operations

17,598

 

 

15,043

 

 

83,291

 

 

59,928

 

Discontinued operations:

 

 

 

 

 

 

 

(Loss) income before taxes

(25,992

)

 

(918

)

 

(16,602

)

 

6,682

 

Provision for (benefit of) income taxes

151

 

 

(232

)

 

2,123

 

 

1,519

 

(Loss) income from discontinued operations

(26,143

)

 

(686

)

 

(18,725

)

 

5,163

 

Net (loss) income

$

(8,545

)

 

$

14,357

 

 

$

64,566

 

 

$

65,091

 

Net earnings per share – Basic:

 

 

 

 

 

 

 

Income from continuing operations

$

0.54

 

 

$

0.46

 

 

$

2.55

 

 

$

1.85

 

(Loss) income from discontinued operations

(0.80

)

 

(0.02

)

 

(0.57

)

 

0.16

 

Net (loss) income

$

(0.26

)

 

$

0.44

 

 

$

1.98

 

 

$

2.01

 

Weighted average shares outstanding -- Basic

32,719

 

 

32,505

 

 

32,664

 

 

32,389

 

Net earnings per share – Diluted:

 

 

 

 

 

 

 

Income from continuing operations

$

0.53

 

 

$

0.46

 

 

$

2.53

 

 

$

1.83

 

(Loss) income from discontinued operations

(0.79

)

 

(0.02

)

 

(0.57

)

 

0.16

 

Net (loss) income

$

(0.26

)

 

$

0.44

 

 

$

1.96

 

 

$

1.99

 

Weighted average shares outstanding -- Diluted

33,016

 

 

32,880

 

 

32,918

 

 

32,722

 

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 

 

December 31,
2020

 

December 31,
2019

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

32,054

 

 

$

191,363

 

Accounts receivable, net

197,990

 

 

133,895

 

Inventories, net

98,307

 

 

61,957

 

Prepaid expenses and other current assets

19,671

 

 

18,959

 

Assets of discontinued operations

77,438

 

 

30,928

 

Total current assets

425,460

 

 

437,102

 

Property, plant, and equipment, net

89,562

 

 

78,152

 

Operating lease assets

25,229

 

 

21,201

 

Goodwill

514,279

 

 

307,355

 

Acquired intangibles

156,365

 

 

76,734

 

Other assets

1,599

 

 

1,980

 

Assets of discontinued operations

 

 

61,926

 

 

$

1,212,494

 

 

$

984,450

 

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

134,738

 

 

$

72,628

 

Accrued expenses

83,505

 

 

86,597

 

Billings in excess of cost

34,702

 

 

47,598

 

Liabilities of discontinued operations

49,295

 

 

22,374

 

Total current liabilities

302,240

 

 

229,197

 

Long-term debt

85,636

 

 

 

Deferred income taxes

39,057

 

 

35,404

 

Non-current operating lease liabilities

17,730

 

 

14,943

 

Other non-current liabilities

24,026

 

 

21,272

 

Liabilities of discontinued operations

 

 

9,670

 

Shareholders’ equity:

 

 

 

Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding

 

 

 

Common stock, $0.01 par value; authorized 50,000 shares; 33,568 and 33,192 shares issued in 2020 and 2019

336

 

 

332

 

Additional paid-in capital

304,870

 

 

295,582

 

Retained earnings

469,943

 

 

405,668

 

Accumulated other comprehensive loss

(2,461

)

 

(5,391

)

Cost of 1,028 and 906 common shares held in treasury in 2020 and 2019

(28,883

)

 

(22,227

)

Total shareholders’ equity

743,805

 

 

673,964

 

 

$

1,212,494

 

 

$

984,450

 

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) (unaudited)

 

 

Twelve Months Ended
December 31,

 

2020

 

2019

Cash Flows from Operating Activities

 

 

 

Net income

$

64,566

 

 

$

65,091

 

(Loss) income from discontinued operations

(18,725

)

 

5,163

 

Income from continuing operations

83,291

 

 

59,928

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

20,915

 

 

17,557

 

Stock compensation expense

8,173

 

 

12,570

 

Gain on sale of business

(1,881

)

 

 

Exit activity costs, non-cash

493

 

 

408

 

Provision for deferred income taxes

3,786

 

 

4,120

 

Other, net

1,944

 

 

5,399

 

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

 

 

 

Accounts receivable

2,277

 

 

(11,256

)

Inventories

(5,719

)

 

14,272

 

Other current assets and other assets

5,467

 

 

(9,306

)

Accounts payable

(1,160

)

 

4,804

 

Accrued expenses and other non-current liabilities

(44,570

)

 

14,040

 

Net cash provided by operating activities of continuing operations

73,016

 

 

112,536

 

Net cash provided by operating activities of discontinued operations

16,088

 

 

17,399

 

Net cash provided by operating activities

89,104

 

 

129,935

 

Cash Flows from Investing Activities

 

 

 

Acquisitions, net of cash acquired

(313,686

)

 

(8,595

)

Net proceeds from sale of property and equipment

77

 

 

92

 

Purchases of property, plant, and equipment

(13,068

)

 

(8,776

)

Net proceeds from sale of business

2,000

 

 

 

Net cash used in investing activities of continuing operations

(324,677

)

 

(17,279

)

Net cash used in investing activities of discontinued operations

(2,033

)

 

(2,394

)

Net cash used in investing activities

(326,710

)

 

(19,673

)

Cash Flows from Financing Activities

 

 

 

Proceeds from long-term debt

85,000

 

 

 

Long-term debt payments

 

 

(212,000

)

Payment of debt issuance costs

 

 

(1,235

)

Purchase of treasury stock at market prices

(6,656

)

 

(4,305

)

Net proceeds from issuance of common stock

1,119

 

 

490

 

Net cash provided by (used in) financing activities

79,463

 

 

(217,050

)

Effect of exchange rate changes on cash

(1,166

)

 

1,145

 

Net decrease in cash and cash equivalents

(159,309

)

 

(105,643

)

Cash and cash equivalents at beginning of year

191,363

 

 

297,006

 

Cash and cash equivalents at end of year

$

32,054

 

 

$

191,363

 

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended
December 31, 2020

 

 

As
Reported
In GAAP
Statements

 

Restructuring
Charges

 

Senior
Leadership
Transition
Costs

 

Acquisition
Related
Items

 

Adjusted
Financial
Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

$

124,553

 

 

$

 

 

$

 

 

$

 

 

$

124,553

 

Residential Products

 

128,205

 

 

 

 

 

 

 

 

128,205

 

Infrastructure Products

 

12,443

 

 

 

 

 

 

 

 

12,443

 

Consolidated sales

 

265,201

 

 

 

 

 

 

 

 

265,201

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

11,656

 

 

369

 

 

 

 

34

 

 

12,059

 

Residential Products

 

20,287

 

 

70

 

 

 

 

 

 

20,357

 

Infrastructure Products

 

573

 

 

226

 

 

 

 

 

 

799

 

Segments Income

 

32,516

 

 

665

 

 

 

 

34

 

 

33,215

 

Unallocated corporate expense

 

(9,794

)

 

259

 

 

14

 

 

1,666

 

 

(7,855

)

Consolidated income from operations

 

22,722

 

 

924

 

 

14

 

 

1,700

 

 

25,360

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

220

 

 

 

 

 

 

 

 

220

 

Other expense

 

150

 

 

 

 

 

 

 

 

150

 

Income before income taxes

 

22,352

 

 

924

 

 

14

 

 

1,700

 

 

24,990

 

Provision for income taxes

 

4,754

 

 

251

 

 

 

 

439

 

 

5,444

 

Income from continuing operations

 

$

17,598

 

 

$

673

 

 

$

14

 

 

$

1,261

 

 

$

19,546

 

Income from continuing operations per share – diluted

 

$

0.53

 

 

$

0.02

 

 

$

 

 

$

0.04

 

 

$

0.59

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

9.4

%

 

0.3

%

 

%

 

%

 

9.7

%

Residential Products

 

15.8

%

 

0.1

%

 

%

 

%

 

15.9

%

Infrastructure Products

 

4.6

%

 

1.8

%

 

%

 

%

 

6.4

%

Segments Margin

 

12.3

%

 

0.3

%

 

%

 

%

 

12.5

%

Consolidated

 

8.6

%

 

0.3

%

 

%

 

0.6

%

 

9.6

%

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended
December 31, 2019

 

 

As Previously
Reported
In GAAP
Statements

 

Discontinued
Operations
Restatement

 

As
Reported
In GAAP
Statements

 

Restructuring &
Acquisition
Related Items

 

Senior
Leadership
Transition
Costs

 

Adjusted
Financial
Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

$

111,411

 

 

$

 

 

$

111,411

 

 

$

 

 

$

 

 

$

111,411

 

Residential Products

 

101,213

 

 

 

 

101,213

 

 

 

 

 

 

101,213

 

Infrastructure Products

 

45,709

 

 

(32,299

)

 

13,410

 

 

 

 

 

 

13,410

 

Less Inter-Segment Sales

 

(202

)

 

202

 

 

 

 

 

 

 

 

 

 

 

45,507

 

 

(32,097

)

 

13,410

 

 

 

 

 

 

13,410

 

Consolidated sales

 

258,131

 

 

(32,097

)

 

226,034

 

 

 

 

 

 

226,034

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

16,644

 

 

 

 

16,644

 

 

288

 

 

 

 

16,932

 

Residential Products

 

13,167

 

 

 

 

13,167

 

 

72

 

 

 

 

13,239

 

Infrastructure Products

 

(205

)

 

986

 

 

781

 

 

 

 

 

 

781

 

Segments income

 

29,606

 

 

986

 

 

30,592

 

 

360

 

 

 

 

30,952

 

Unallocated corporate expense

 

(10,359

)

 

 

 

(10,359

)

 

752

 

 

2,693

 

 

(6,914

)

Consolidated income from operations

 

19,247

 

 

986

 

 

20,233

 

 

1,112

 

 

2,693

 

 

24,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

(92

)

 

87

 

 

(5

)

 

 

 

 

 

(5

)

Other expense

 

211

 

 

(19

)

 

192

 

 

 

 

 

 

192

 

Income before income taxes

 

19,128

 

 

918

 

 

20,046

 

 

1,112

 

 

2,693

 

 

23,851

 

Provision for income taxes

 

4,771

 

 

232

 

 

5,003

 

 

91

 

 

134

 

 

5,228

 

Income from continuing operations

 

$

14,357

 

 

$

686

 

 

$

15,043

 

 

$

1,021

 

 

$

2,559

 

 

$

18,623

 

Income from continuing operations per share – diluted

 

$

0.44

 

 

$

0.02

 

 

$

0.46

 

 

$

0.03

 

 

$

0.08

 

 

$

0.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

14.9

%

 

 

 

14.9

%

 

0.3

%

 

%

 

15.2

%

Residential Products

 

13.0

%

 

 

 

13.0

%

 

0.1

%

 

%

 

13.1

%

Infrastructure Products

 

(0.5

)%

 

 

 

5.8

%

 

%

 

%

 

5.8

%

Segments margin

 

11.5

%

 

 

 

13.5

%

 

0.2

%

 

%

 

13.7

%

Consolidated

 

7.5

%

 

 

 

9.0

%

 

0.5

%

 

1.2

%

 

10.6

%

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Twelve Months Ended
December 31, 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

 

$

447,567

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

447,567

 

Residential Products

 

522,814

 

 

 

 

 

 

 

 

 

 

522,814

 

Infrastructure Products

 

62,197

 

 

 

 

 

 

 

 

 

 

62,197

 

Consolidated sales

 

1,032,578

 

 

 

 

 

 

 

 

 

 

1,032,578

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

40,738

 

 

947

 

 

 

 

2,779

 

 

 

 

44,464

 

Residential Products

 

94,430

 

 

740

 

 

 

 

 

 

 

 

95,170

 

Infrastructure Products

 

7,233

 

 

226

 

 

 

 

 

 

 

 

7,459

 

Segments Income

 

142,401

 

 

1,913

 

 

 

 

2,779

 

 

 

 

147,093

 

Unallocated corporate expense

 

(35,211

)

 

375

 

 

2,526

 

 

1,991

 

 

 

 

(30,319

)

Consolidated income from operations

 

107,190

 

 

2,288

 

 

2,526

 

 

4,770

 

 

 

 

116,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

703

 

 

 

 

 

 

 

 

 

 

703

 

Other (income) expense

 

(1,272

)

 

 

 

 

 

 

 

1,881

 

 

609

 

Income before income taxes

 

107,759

 

 

2,288

 

 

2,526

 

 

4,770

 

 

(1,881

)

 

115,462

 

Provision for income taxes

 

24,468

 

 

547

 

 

 

 

1,164

 

 

(469

)

 

25,710

 

Income from continuing operations

 

$

83,291

 

 

$

1,741

 

 

$

2,526

 

 

$

3,606

 

 

$

(1,412

)

 

$

89,752

 

Income from continuing operations per share – diluted

 

$

2.53

 

 

$

0.05

 

 

$

0.08

 

 

$

0.11

 

 

$

(0.04

)

 

$

2.73

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

9.1

%

 

0.2

%

 

%

 

0.6

%

 

%

 

9.9

%

Residential Products

 

18.1

%

 

0.1

%

 

%

 

%

 

%

 

18.2

%

Infrastructure Products

 

11.6

%

 

0.4

%

 

%

 

%

 

%

 

12.0

%

Segments Margin

 

13.8

%

 

0.2

%

 

%

 

0.3

%

 

%

 

14.2

%

Consolidated

 

10.4

%

 

0.2

%

 

0.2

%

 

0.5

%

 

%

 

11.3

%

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Twelve Months Ended
December 31, 2019

 

 

As Previously
Reported
In GAAP
Statements

 

Discontinued
Operations
Restatement

 

As
Reported
In GAAP
Statements

 

Restructuring,
Acquisition &
Debt
Repayment
Costs

 

Senior
Leadership
Transition
Costs

 

Adjusted
Financial
Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

$

373,023

 

 

$

 

 

$

373,023

 

 

$

 

 

$

 

 

$

373,023

 

Residential Products

 

461,630

 

 

 

 

461,630

 

 

 

 

 

 

461,630

 

Infrastructure Products

 

213,805

 

 

(150,225

)

 

63,580

 

 

 

 

 

 

63,580

 

Less Inter-Segment Sales

 

(1,019

)

 

1,019

 

 

 

 

 

 

 

 

 

 

 

212,786

 

 

(149,206

)

 

63,580

 

 

 

 

 

 

63,580

 

Consolidated sales

 

1,047,439

 

 

(149,206

)

 

898,233

 

 

 

 

 

 

898,233

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

47,558

 

 

 

 

47,558

 

 

1,490

 

 

 

 

49,048

 

Residential Products

 

63,047

 

 

 

 

63,047

 

 

3,857

 

 

78

 

 

66,982

 

Infrastructure Products

 

13,455

 

 

(7,027

)

 

6,428

 

 

 

 

 

 

6,428

 

Segments income

 

124,060

 

 

(7,027

)

 

117,033

 

 

5,347

 

 

78

 

 

122,458

 

Unallocated corporate expense

 

(36,221

)

 

 

 

(36,221

)

 

2,145

 

 

9,666

 

 

(24,410

)

Consolidated income from operations

 

87,839

 

 

(7,027

)

 

80,812

 

 

7,492

 

 

9,744

 

 

98,048

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

2,205

 

 

118

 

 

2,323

 

 

(1,079

)

 

 

 

1,244

 

Other expense

 

871

 

 

(463

)

 

408

 

 

 

 

 

 

408

 

Income before income taxes

 

84,763

 

 

(6,682

)

 

78,081

 

 

8,571

 

 

9,744

 

 

96,396

 

Provision for income taxes

 

19,672

 

 

(1,519

)

 

18,153

 

 

2,080

 

 

615

 

 

20,848

 

Income from continuing operations

 

$

65,091

 

 

$

(5,163

)

 

$

59,928

 

 

$

6,491

 

 

$

9,129

 

 

$

75,548

 

Income from continuing operations per share – diluted

 

$

1.99

 

 

$

(0.16

)

 

$

1.83

 

 

$

0.20

 

 

$

0.28

 

 

$

2.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

12.7

%

 

 

 

12.7

%

 

0.4

%

 

%

 

13.1

%

Residential Products

 

13.7

%

 

 

 

13.7

%

 

0.8

%

 

%

 

14.5

%

Infrastructure Products

 

6.3

%

 

 

 

10.1

%

 

%

 

%

 

10.1

%

Segments margin

 

11.8

%

 

 

 

13.0

%

 

0.6

%

 

%

 

13.6

%

Consolidated

 

8.4

%

 

 

 

9.0

%

 

0.8

%

 

1.1

%

 

10.9

%

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended March 31, 2020

 

 

As Previously
Reported
In GAAP
Statements

 

Discontinued
Operations
Restatement

 

As Reported
in GAAP
Statements

 

Restructuring
& Senior
Leadership
Transition
Costs

 

Acquisition
Related
Items

 

Adjusted
Financial
Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

$

96,497

 

 

$

 

 

$

96,497

 

 

$

 

 

$

 

 

$

96,497

 

Residential Products

 

103,419

 

 

 

 

103,419

 

 

 

 

 

 

103,419

 

Infrastructure Products

 

49,801

 

 

(34,316

)

 

15,485

 

 

 

 

 

 

15,485

 

Less Inter-Segment Sales

 

(278

)

 

278

 

 

 

 

 

 

 

 

 

 

 

49,523

 

 

(34,038

)

 

15,485

 

 

 

 

 

 

15,485

 

Consolidated sales

 

249,439

 

 

(34,038

)

 

215,401

 

 

 

 

 

 

215,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

5,699

 

 

 

 

5,699

 

 

18

 

 

1,001

 

 

6,718

 

Residential Products

 

13,725

 

 

 

 

13,725

 

 

221

 

 

 

 

13,946

 

Infrastructure Products

 

3,989

 

 

(2,413

)

 

1,576

 

 

 

 

 

 

1,576

 

Segment Income

 

23,413

 

 

(2,413

)

 

21,000

 

 

239

 

 

1,001

 

 

22,240

 

Unallocated corporate expense

 

(8,223

)

 

 

 

(8,223

)

 

2,280

 

 

259

 

 

(5,684

)

Consolidated income from operations

 

15,190

 

 

(2,413

)

 

12,777

 

 

2,519

 

 

1,260

 

 

16,556

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest (income) expense

 

(47

)

 

91

 

 

44

 

 

 

 

 

 

44

 

Other expense

 

192

 

 

326

 

 

518

 

 

 

 

 

 

518

 

Income before income taxes

 

15,045

 

 

(2,830

)

 

12,215

 

 

2,519

 

 

1,260

 

 

15,994

 

Provision for income taxes

 

2,986

 

 

(673

)

 

2,313

 

 

59

 

 

316

 

 

2,688

 

Income from continuing operations

 

$

12,059

 

 

$

(2,157

)

 

$

9,902

 

 

$

2,460

 

 

$

944

 

 

$

13,306

 

Income from continuing operations per share – diluted

 

$

0.37

 

 

$

(0.07

)

 

$

0.30

 

 

$

0.07

 

 

$

0.03

 

 

$

0.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

5.9

%

 

 

 

5.9

%

 

%

 

1.0

%

 

7.0

%

Residential Products

 

13.3

%

 

 

 

13.3

%

 

0.2

%

 

%

 

13.5

%

Infrastructure Products

 

8.1

%

 

 

 

10.2

%

 

%

 

%

 

10.2

%

Segments Margin

 

9.4

%

 

 

 

9.7

%

 

0.1

%

 

0.5

%

 

10.3

%

Consolidated

 

6.1

%

 

 

 

5.9

%

 

1.1

%

 

0.6

%

 

7.7

%

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended June 30, 2020

 

 

As Previously
Reported
In GAAP
Statements

 

Discontinued
Operations
Restatement

 

As Reported
in GAAP
Statements

 

Costs
(Recoveries)
on
Restructuring
& Senior
Leadership
Transition

 

Acquisition
Related
Items

 

Adjusted
Financial
Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

$

98,259

 

 

$

 

 

98,259

 

 

$

 

 

$

 

 

$

98,259

 

Residential Products

 

139,472

 

 

 

 

139,472

 

 

 

 

 

 

139,472

 

Infrastructure Products

 

48,263

 

 

(30,810

)

 

17,453

 

 

 

 

 

 

17,453

 

Less Inter-Segment Sales

 

(180

)

 

180

 

 

 

 

 

 

 

 

 

 

 

48,083

 

 

(30,630

)

 

17,453

 

 

 

 

 

 

17,453

 

Consolidated sales

 

285,814

 

 

(30,630

)

 

255,184

 

 

 

 

 

 

255,184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

9,188

 

 

 

 

9,188

 

 

388

 

 

1,172

 

 

10,748

 

Residential Products

 

27,964

 

 

 

 

27,964

 

 

263

 

 

 

 

28,227

 

Infrastructure Products

 

6,644

 

 

(3,843

)

 

2,801

 

 

 

 

 

 

2,801

 

Segment Income

 

43,796

 

 

(3,843

)

 

39,953

 

 

651

 

 

1,172

 

 

41,776

 

Unallocated corporate expense

 

(9,205

)

 

 

 

(9,205

)

 

161

 

 

50

 

 

(8,994

)

Consolidated income from operations

 

34,591

 

 

(3,843

)

 

30,748

 

 

812

 

 

1,222

 

 

32,782

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

214

 

 

8

 

 

222

 

 

 

 

 

 

222

 

Other income

 

(1,787

)

 

(105

)

 

(1,892

)

 

1,881

 

 

 

 

(11

)

Income before income taxes

 

36,164

 

 

(3,746

)

 

32,418

 

 

(1,069

)

 

1,222

 

 

32,571

 

Provision for income taxes

 

8,872

 

 

(911

)

 

7,961

 

 

(299

)

 

274

 

 

7,936

 

Income from continuing operations

 

$

27,292

 

 

$

(2,835

)

 

$

24,457

 

 

$

(770

)

 

$

948

 

 

$

24,635

 

Income from continuing operations per share – diluted

 

$

0.83

 

 

$

(0.09

)

 

$

0.74

 

 

$

(0.02

)

 

$

0.03

 

 

$

0.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

9.4

%

 

 

 

9.4

%

 

0.4

%

 

1.2

%

 

10.9

%

Residential Products

 

20.0

%

 

 

 

20.0

%

 

0.2

%

 

%

 

20.2

%

Infrastructure Products

 

13.8

%

 

 

 

16.0

%

 

%

 

%

 

16.0

%

Segments Margin

 

15.3

%

 

 

 

15.7

%

 

0.3

%

 

0.5

%

 

16.4

%

Consolidated

 

12.1

%

 

 

 

12.0

%

 

0.3

%

 

0.5

%

 

12.8

%

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended September 30, 2020

 

 

As Previously
Reported
In GAAP
Statements

 

Discontinued
Operations
Restatement

 

As Reported
in GAAP
Statements

 

Restructuring
& Senior
Leadership
Transition
Costs

 

Acquisition
Related
Items

 

Adjusted
Financial
Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

$

128,258

 

 

$

 

 

$

128,258

 

 

$

 

 

$

 

 

$

128,258

 

Residential Products

 

151,718

 

 

 

 

151,718

 

 

 

 

 

 

151,718

 

Infrastructure Products

 

49,767

 

 

(32,951

)

 

16,816

 

 

 

 

 

 

16,816

 

Less Inter-Segment Sales

 

(78

)

 

78

 

 

 

 

 

 

 

 

 

 

 

49,689

 

 

(32,873

)

 

16,816

 

 

 

 

 

 

16,816

 

Consolidated sales

 

329,665

 

 

(32,873

)

 

296,792

 

 

 

 

 

 

296,792

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

14,195

 

 

 

 

14,195

 

 

172

 

 

572

 

 

14,939

 

Residential Products

 

32,454

 

 

 

 

32,454

 

 

186

 

 

 

 

32,640

 

Infrastructure Products

 

5,199

 

 

(2,916

)

 

2,283

 

 

 

 

 

 

2,283

 

Segment Income

 

51,848

 

 

(2,916

)

 

48,932

 

 

358

 

 

572

 

 

49,862

 

Unallocated corporate expense

 

(7,989

)

 

 

 

(7,989

)

 

187

 

 

16

 

 

(7,786

)

Consolidated income from operations

 

43,859

 

 

(2,916

)

 

40,943

 

 

545

 

 

588

 

 

42,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

218

 

 

(1

)

 

217

 

 

 

 

 

 

217

 

Other expense (income)

 

53

 

 

(101

)

 

(48

)

 

 

 

 

 

(48

)

Income before income taxes

 

43,588

 

 

(2,814

)

 

40,774

 

 

545

 

 

588

 

 

41,907

 

Provision for income taxes

 

9,828

 

 

(388

)

 

9,440

 

 

67

 

 

135

 

 

9,642

 

Income from continuing operations

 

$

33,760

 

 

$

(2,426

)

 

$

31,334

 

 

$

478

 

 

$

453

 

 

$

32,265

 

Income from continuing operations per share – diluted

 

$

1.02

 

 

$

(0.07

)

 

$

0.95

 

 

$

0.02

 

 

$

0.01

 

 

$

0.98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

11.1

%

 

 

 

11.1

%

 

0.1

%

 

0.4

%

 

11.6

%

Residential Products

 

21.4

%

 

 

 

21.4

%

 

0.1

%

 

%

 

21.5

%

Infrastructure Products

 

10.5

%

 

 

 

13.6

%

 

%

 

%

 

13.6

%

Segments Margin

 

15.7

%

 

 

 

16.5

%

 

0.1

%

 

0.2

%

 

16.8

%

Consolidated

 

13.3

%

 

 

 

13.8

%

 

0.2

%

 

0.2

%

 

14.2

%

 

LHA Investor Relations
Jody Burfening/Carolyn Capaccio
(212) 838-3777
rock@lhai.com

Source: Gibraltar Industries, Inc.