08/03/22 at 7:30 AM EDT

Gibraltar Announces Second Quarter 2022 Financial Results

Revenue: GAAP up 5%, Adjusted up 7%; EPS: GAAP up 13%, Adjusted up 19%

Reaffirming 2022 Revenue and EPS Growth Outlook

Order Backlog at $408 Million, up 5%

BUFFALO, N.Y.--(BUSINESS WIRE)--Aug. 3, 2022-- Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the renewable energy, residential, agtech and infrastructure markets, today reported its financial results for the three-month period ended June 30, 2022.

“Gibraltar generated solid performance in the quarter, with adjusted revenue up 7% and adjusted EPS up 19%. Our Renewables, Agtech, and Infrastructure margins improved sequentially according to our expectations and our Residential business delivered both strong revenue and margin performance,” Chairman and CEO Bill Bosway stated. “Part of our ongoing strategy is to further simplify and digitize our businesses, and we completed two additional ERP implementations during the quarter; these systems are designed to enable us to better connect with and provide seamless value to our customers while increasing speed, flexibility, and efficiency of our operations. Demand drivers remain solid for the overall business despite our Renewables’ customers waiting for clarity on panel availability to execute orders and finalize projects.”

Second Quarter 2022 Consolidated Results from Continuing Operations

Below are second quarter 2022 consolidated results from continuing operations:

 

 

Three Months Ended June 30,

$Millions, except EPS

GAAP

 

Adjusted

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

Net Sales

$366.9

 

$348.4

 

5.3%

 

$364.2

 

$341.1

 

6.8%

Net Income

$29.3

 

$26.4

 

11.0%

 

$31.5

 

$26.7

 

18.0%

Diluted EPS

$0.90

 

$0.80

 

12.5%

 

$0.96

 

$0.81

 

18.5%

Revenue from continuing operations increased 5.3% to $366.9 million. Adjusted revenue increased 6.8% to $364.2 million driven primarily by participation gains and price management in the Residential segment, partially offset by continued supply chain challenges and project delays in the Agtech and Renewables segments.

GAAP earnings increased 11.0% to $29.3 million, or $0.90 per share, and adjusted earnings increased 18.0% to $31.5 million, or $0.96 per share. Profitability in the quarter was driven by participation gains, price management, business mix, and 80/20 initiatives.

Adjusted measures exclude charges for restructuring initiatives, acquisition-related items, senior leadership transition costs, and the results of the Processing business, which was classified as held for sale in the first quarter of 2022, as further described in the appended reconciliation of adjusted financial measures.

Second Quarter Segment Results

Renewables

For the second quarter, the Renewables segment reported:

   

 

 

Three Months Ended June 30,

$Millions

 

GAAP

 

Adjusted

 

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

Net Sales

 

$101.5

 

$107.8

 

(5.8)%

 

$101.5

 

$107.8

 

(5.8)%

Operating Income

 

$6.8

 

$9.5

 

(28.4%)

 

$7.1

 

$12.2

 

(41.8%)

Operating Margin

 

6.7%

 

8.8%

 

(210) bps

 

7.0%

 

11.3%

 

(430) bps

As expected, solar project schedules remained dynamic as customers continued to understand the impact of the Department of Commerce investigation, the implementation of the Uyghur Forced Labor Prevention Act by the U.S. Custom and Border Protection Agency, and the Executive Order issued by the administration with respect to solar panel tariff enforcement. As a result, revenue was down 5.8%. Backlog was down 2.1% as new bookings slowed pending visibility on these key trade issues. Backlog is expected to improve once these trade issues are resolved.

Adjusted operating income improved $11.4 million, for a margin increase of over 1,200 basis points sequentially and reached double-digit performance in both May and June. Gibraltar expects sequential margin improvement to continue in the second half of the year. Acquisition integration efforts are on track with a common ERP system now live and in-sourcing initiatives on schedule for implementation in the second half of the year.

Residential

For the second quarter, the Residential segment reported:

   

 

 

Three Months Ended June 30,

$Millions

 

GAAP

 

Adjusted

 

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

Net Sales

 

$200.2

 

$164.2

 

21.9%

 

$200.2

 

$164.2

 

21.9%

Operating Income

 

$35.7

 

$27.2

 

31.3%

 

$37.0

 

$27.2

 

36.0%

Operating Margin

 

17.8%

 

16.5%

 

130 bps

 

18.5%

 

16.6%

 

190 bps

Revenue increased 21.9%, marking the eighth consecutive quarter of double-digit growth. Revenue was driven by price management and participation gains.

Adjusted operating income grew 36.0% and adjusted operating margin improved 190 basis points to 18.5% through price / cost management, supply chain initiatives, labor management, and additional 80/20 initiatives. Gibraltar also implemented a new ERP system in the mail and package business.

Agtech

For the second quarter, the Agtech segment reported:

   

 

 

Three Months Ended June 30,

$Millions

 

GAAP

 

Adjusted

 

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

Net Sales

 

$43.7

 

$53.7

 

(18.6)%

 

$40.9

 

$46.4

 

(11.9)%

Operating Income

 

$1.5

 

$1.0

 

50.0%

 

$2.7

 

$2.7

 

-

Operating Margin

 

3.5%

 

1.8%

 

170 bps

 

6.7%

 

5.9%

 

80 bps

GAAP revenue decreased 18.6%, with adjusted revenue down 11.9% due to Produce and Cannabis project movement into the third and fourth quarters of 2022. Quote activity and new order bookings were robust in the quarter, resulting in backlog increasing 30%.

Adjusted operating margin improved 80 basis points over last year through business mix, price / cost management, supply chain improvement, 80/20 initiatives, and integration activities.

Infrastructure

For the second quarter, the Infrastructure segment reported:

   

 

 

Three Months Ended June 30,

$Millions

 

GAAP

 

Adjusted

 

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

Net Sales

 

$21.5

 

$22.7

 

(5.3)%

 

$21.5

 

$22.7

 

(5.3)%

Operating Income

 

$2.9

 

$4.2

 

(31.0)%

 

$2.9

 

$4.2

 

(31.0)%

Operating Margin

 

13.4%

 

18.4%

 

(500) bps

 

13.4%

 

18.4%

 

(500) bps

Revenue decreased 5.3% versus a very strong Q2 2021, which benefitted from the scheduling of customer projects. Order backlog was flat during the quarter, but bidding activity is very strong and new bookings have accelerated early in the third quarter. Management continues to expect a positive impact from the infrastructure bill later in the second half of 2022.

Adjusted operating margin improved 690 basis points sequentially as the business overcomes steel inflation impacting fixed-price projects with state departments of transportation booked in 2020 and early 2021. Unfavorable product mix resulted in margins being down versus last year. Management continues to expect margins to improve through 2022 with lower margin projects subsiding, business mix improving, and volume leverage.

Business Outlook
Gibraltar is reaffirming guidance for revenue and earnings for the full year 2022, with consolidated revenue expected to range between $1.38 billion and $1.43 billion. GAAP EPS is expected to be between $2.80 and $3.00, and adjusted EPS expected to be between $3.20 and $3.40.

“Our first half results, current demand profile, and ongoing 80/20 initiatives support our confidence in delivering our full-year performance commitments. We remain focused on execution, including supply chain optimization, price / cost alignment, labor management, 80/20, and further simplifying our businesses,” said Mr. Bosway.

Second Quarter 2022 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 2022. Interested parties may access the webcast through the Investors section of the Company’s website at www.gibraltar1.com, where related presentation materials will also be posted prior to the conference call. The call may also be accessed by dialing 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 is a leading manufacturer and provider of products and services for the renewable energy, residential, agtech, and infrastructure markets. Gibraltar’s mission, to make life better for people and the planet, is fueled by advancing the disciplines of engineering, science, and technology. Gibraltar is innovating to reshape critical markets in comfortable living, sustainable power, and productive growing throughout North America. For more please visit 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 availability and pricing of our principal raw materials and component parts, supply chain challenges causing project delays and field operations inefficiencies and disruptions, availability of labor at our manufacturing and distribution facilities or on our project sites, further impacts of COVID-19 on our customers, suppliers, employees, operations, business, liquidity and cash flows, the loss of any key customers, adverse effects of inflation, 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, disruptions to our IT systems, the impact of regulation (including the Department of Commerce’s solar panel anti-circumvention investigation), rebates, credits and incentives and variations in government spending 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 and Quarterly Report on Form 10-Q 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, including adjusted revenues, adjusted operating income and margin, adjusted net income, adjusted earnings per share (EPS) and adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) each a non-GAAP financial measure. Adjusted revenue reflects the removal of revenue associated with our Processing business, which has been classified as held-for-sale. Adjusted net income, operating income and margin excludes special charges consisting of restructuring costs primarily associated with 80/20 simplification or lean initiatives, senior leadership transition costs, acquisition related costs and the operating losses generated by our processing business that has been classified as held-for-sale. These special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations. The adjusted measures now exclude the results of the Processing business since it was classified as held for sale as of March 31, 2022. Our adjusted financial measures as of and for the three-month and six-month periods ending June 30, 2021 have been recast to reflect this additional adjustment as detailed in the appended reconciliation of adjusted financial measures. The results of the Processing business are considered non-recurring due to the Company’s commitment during the first quarter of 2022 to a plan to sell the Processing business. The aforementioned exclusions along with other adjustments to other income below operating profit are excluded from adjusted EPS. Adjusted EBITDA further excludes depreciation, amortization and stock compensation. In evaluating its business, the Company considers and uses these non-GAAP financial measures as supplemental measures of its operating performance. The Company believes that the presentation of results excluding these items provides meaningful supplemental data to investors 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. Adjusted EBITDA is also a useful measure of the Company’s ability to service debt and is one of the measures used for determining the Company’s debt covenant compliance.

Adjustments to the most directly comparable financial measures presented on a GAAP basis are quantified in the reconciliation of adjusted financial measures excluding special charges provided in the supplemental financial schedules that accompany this news release. 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 and our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

Reconciliations of non-GAAP measures related to full-year 2022 guidance have not been provided due to the unreasonable efforts it would take to provide such reconciliations due to the high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations.

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(unaudited)

   

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2022

 

2021

 

2022

 

2021

Net Sales

 

$

366,949

 

$

348,389

 

$

684,814

 

$

635,981

Cost of sales

 

 

276,678

 

 

267,458

 

 

529,699

 

 

495,032

Gross profit

 

 

90,271

 

 

80,931

 

 

155,115

 

 

140,949

Selling, general, and administrative expense

 

 

50,132

 

 

49,522

 

 

93,781

 

 

96,725

Income from operations

 

 

40,139

 

 

31,409

 

 

61,334

 

 

44,224

Interest expense

 

 

656

 

 

245

 

 

1,141

 

 

689

Other expense (income)

 

 

281

 

 

(4,666)

 

 

434

 

 

(4,351)

Income before taxes

 

 

39,202

 

 

35,830

 

 

59,759

 

 

47,886

Provision for income taxes

 

 

9,895

 

 

9,457

 

 

14,996

 

 

11,017

Income from continuing operations

 

 

29,307

 

 

26,373

 

 

44,763

 

 

36,869

Discontinued operations:

 

 

 

 

 

 

 

 

(Loss) income before taxes

 

 

 

 

(502)

 

 

 

 

2,068

(Benefit from) provision for income taxes

 

 

 

 

(78)

 

 

 

 

226

(Loss) income from discontinued operations

 

 

 

 

(424)

 

 

 

 

1,842

Net income

 

$

29,307

 

$

25,949

 

$

44,763

 

$

38,711

Net earnings per share – Basic:

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.90

 

$

0.80

 

$

1.37

 

$

1.12

(Loss) income from discontinued operations

 

 

 

 

(0.01)

 

 

 

 

0.06

Net income

 

$

0.90

 

$

0.79

 

$

1.37

 

$

1.18

Weighted average shares outstanding – Basic

 

 

32,585

 

 

32,790

 

 

32,748

 

 

32,791

Net earnings per share – Diluted:

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.90

 

$

0.80

 

$

1.36

 

$

1.11

(Loss) income from discontinued operations

 

 

 

 

(0.01)

 

 

 

 

0.06

Net income

 

$

0.90

 

$

0.79

 

$

1.36

 

$

1.17

Weighted average shares outstanding – Diluted

 

 

32,660

 

 

33,056

 

 

32,843

 

 

33,071

 

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

   

 

 

June 30,
2022

 

December 31,
2021

 

 

(unaudited)

 

 

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

17,149

 

$

12,849

Accounts receivable, net of allowance of $3,901 and $3,738, respectively

 

 

275,596

 

 

236,444

Inventories, net

 

 

197,499

 

 

176,207

Prepaid expenses and other current assets

 

 

39,333

 

 

21,467

Total current assets

 

 

529,577

 

 

446,967

Property, plant, and equipment, net

 

 

100,998

 

 

96,885

Operating lease assets

 

 

26,206

 

 

18,120

Goodwill

 

 

509,357

 

 

510,942

Acquired intangibles

 

 

128,725

 

 

141,504

Other assets

 

 

550

 

 

483

 

 

$

1,295,413

 

$

1,214,901

Liabilities and Stockholders’ Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

160,058

 

$

172,286

Accrued expenses and other current liabilities

 

 

77,606

 

 

67,993

Billings in excess of cost

 

 

65,864

 

 

46,711

Total current liabilities

 

 

303,528

 

 

286,990

Long-term debt

 

 

93,454

 

 

23,781

Deferred income taxes

 

 

40,150

 

 

40,278

Non-current operating lease liabilities

 

 

19,252

 

 

11,390

Other non-current liabilities

 

 

21,751

 

 

27,204

Stockholders’ equity:

 

 

 

 

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

 

 

 

 

Common stock, $0.01 par value; authorized 100,000 shares in 2022 and 2021; 33,989 shares and 33,799 shares issued and outstanding in 2022 and 2021

 

 

340

 

 

338

Additional paid-in capital

 

 

318,664

 

 

314,541

Retained earnings

 

 

590,335

 

 

545,572

Accumulated other comprehensive (loss) income

 

 

(3,213)

 

 

187

Treasury stock, at cost, of 2,374 and 1,107 shares in 2022 and 2021

 

 

(88,848)

 

 

(35,380)

Total stockholders’ equity

 

 

817,278

 

 

825,258

 

 

$

1,295,413

 

$

1,214,901

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

   

 

 

Six Months Ended

June 30,

 

 

2022

 

2021

Cash Flows from Operating Activities

 

 

 

 

Net income

 

$

44,763

 

$

38,711

Income from discontinued operations

 

 

 

 

1,842

Income from continuing operations

 

 

44,763

 

 

36,869

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

 

 

 

 

Depreciation and amortization

 

 

12,677

 

 

16,014

Stock compensation expense

 

 

4,125

 

 

4,935

Exit activity costs, non-cash

 

 

1,198

 

 

1,193

Provision for (benefit of) deferred income taxes

 

 

29

 

 

(36)

Other, net

 

 

2,666

 

 

349

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

 

 

 

 

Accounts receivable

 

 

(40,473)

 

 

(29,150)

Inventories

 

 

(33,616)

 

 

(42,686)

Other current assets and other assets

 

 

(1,612)

 

 

(611)

Accounts payable

 

 

(10,501)

 

 

35,174

Accrued expenses and other non-current liabilities

 

 

21,288

 

 

(9,274)

Net cash provided by operating activities of continuing operations

 

 

544

 

 

12,777

Net cash used in operating activities of discontinued operations

 

 

 

 

(2,002)

Net cash provided by operating activities

 

 

544

 

 

10,775

Cash Flows from Investing Activities

 

 

 

 

Acquisitions, net of cash acquired

 

 

 

 

(2)

Net proceeds from sale of property and equipment

 

 

85

 

 

Purchases of property, plant, and equipment

 

 

(11,287)

 

 

(9,474)

Net proceeds from sale of business

 

 

 

 

39,991

Net cash (used in) provided by investing activities of continuing operations

 

 

(11,202)

 

 

30,515

Net cash used in investing activities of discontinued operations

 

 

 

 

(176)

Net cash (used in) provided by investing activities

 

 

(11,202)

 

 

30,339

Cash Flows from Financing Activities

 

 

 

 

Proceeds from long-term debt

 

 

120,500

 

 

31,200

Long-term debt payments

 

 

(51,000)

 

 

(83,636)

Purchase of common stock at market prices

 

 

(53,468)

 

 

(4,780)

Net proceeds from issuance of common stock

 

 

 

 

924

Net cash provided by (used in) financing activities

 

 

16,032

 

 

(56,292)

Effect of exchange rate changes on cash

 

 

(1,074)

 

 

87

Net increase (decrease) in cash and cash equivalents

 

 

4,300

 

 

(15,091)

Cash and cash equivalents at beginning of year

 

 

12,849

 

 

32,054

Cash and cash equivalents at end of period

 

$

17,149

 

$

16,963

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

June 30,2022

 

 

As Reported In GAAP Statements

 

Restructuring & Senior Leadership Transition Costs

 

Acquisition Related Items

 

Portfolio Management

 

Adjusted Financial Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

Renewables

 

$

101,549

 

$

 

$

 

$

 

$

101,549

Residential

 

 

200,245

 

 

 

 

 

 

 

 

200,245

Agtech

 

 

43,680

 

 

 

 

 

 

(2,748)

 

 

40,932

Infrastructure

 

 

21,475

 

 

 

 

 

 

 

 

21,475

Consolidated sales

 

 

366,949

 

 

 

 

 

 

(2,748)

 

 

364,201

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

6,829

 

 

68

 

 

215

 

 

 

 

7,112

Residential

 

 

35,664

 

 

1,295

 

 

 

 

 

 

36,959

Agtech

 

 

1,542

 

 

97

 

 

 

 

1,109

 

 

2,748

Infrastructure

 

 

2,887

 

 

 

 

 

 

 

 

2,887

Segments Income

 

 

46,922

 

 

1,460

 

 

215

 

 

1,109

 

 

49,706

Unallocated corporate expense

 

 

(6,783)

 

 

174

 

 

 

 

 

 

(6,609)

Consolidated income from operations

 

 

40,139

 

 

1,634

 

 

215

 

 

1,109

 

 

43,097

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

656

 

 

 

 

 

 

 

 

656

Other expense

 

 

281

 

 

 

 

 

 

100

 

 

381

Income before income taxes

 

 

39,202

 

 

1,634

 

 

215

 

 

1,009

 

 

42,060

Provision for income taxes

 

 

9,895

 

 

398

 

 

52

 

 

245

 

 

10,590

Income from continuing operations

 

$

29,307

 

$

1,236

 

$

163

 

$

764

 

$

31,470

Income from continuing operations per share - diluted

 

$

0.90

 

$

0.03

 

$

0.01

 

$

0.02

 

$

0.96

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

6.7 %

 

 

0.1 %

 

 

0.2 %

 

 

— %

 

 

7.0 %

Residential

 

 

17.8 %

 

 

0.6 %

 

 

— %

 

 

— %

 

 

18.5 %

Agtech

 

 

3.5 %

 

 

0.2 %

 

 

— %

 

 

2.5 %

 

 

6.7 %

Infrastructure

 

 

13.4 %

 

 

— %

 

 

— %

 

 

— %

 

 

13.4 %

Segments Margin

 

 

12.8 %

 

 

0.4 %

 

 

0.1 %

 

 

0.3 %

 

 

13.6 %

Consolidated

 

 

10.9 %

 

 

0.4 %

 

 

0.1 %

 

 

0.3 %

 

 

11.8 %

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

June 30, 2021

 

 

As Reported In GAAP Statements

 

Restructuring & Senior Leadership Transition Costs

 

Acquisition Related Items

 

Adjusted Financial Measures

 

Portfolio Management*

 

Adjusted Financial Measures *

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Renewables

 

$

107,751

 

$

 

$

 

$

107,751

 

$

 

$

107,751

Residential

 

 

164,209

 

 

 

 

 

 

164,209

 

 

 

 

164,209

Agtech

 

 

53,696

 

 

 

 

 

 

53,696

 

 

(7,264)

 

 

46,432

Infrastructure

 

 

22,733

 

 

 

 

 

 

22,733

 

 

 

 

22,733

Consolidated sales

 

 

348,389

 

 

 

 

 

 

348,389

 

 

(7,264)

 

 

341,125

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

9,510

 

 

786

 

 

1,858

 

 

12,154

 

 

 

 

12,154

Residential

 

 

27,155

 

 

29

 

 

 

 

27,184

 

 

 

 

27,184

Agtech

 

 

977

 

 

1,287

 

 

 

 

2,264

 

 

466

 

 

2,730

Infrastructure

 

 

4,186

 

 

 

 

 

 

4,186

 

 

 

 

4,186

Segments Income

 

 

41,828

 

 

2,102

 

 

1,858

 

 

45,788

 

 

466

 

 

46,254

Unallocated corporate expense

 

 

(10,419)

 

 

77

 

 

32

 

 

(10,310)

 

 

 

 

(10,310)

Consolidated income from operations

 

 

31,409

 

 

2,179

 

 

1,890

 

 

35,478

 

 

466

 

 

35,944

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

245

 

 

 

 

 

 

245

 

 

 

 

245

Other (income) expense

 

 

(4,666)

 

 

 

 

4,747

 

 

81

 

 

 

 

81

Income before income taxes

 

 

35,830

 

 

2,179

 

 

(2,857)

 

 

35,152

 

 

466

 

 

35,618

Provision for income taxes

 

 

9,457

 

 

512

 

 

(1,149)

 

 

8,820

 

 

124

 

 

8,944

Income from continuing operations

 

$

26,373

 

$

1,667

 

$

(1,708)

 

$

26,332

 

$

342

 

$

26,674

Income from continuing operations per share - diluted

 

$

0.80

 

$

0.05

 

$

(0.05)

 

$

0.80

 

$

0.01

 

$

0.81

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

8.8 %

 

 

0.7 %

 

 

1.7 %

 

 

11.3 %

 

 

— %

 

 

11.3 %

Residential

 

 

16.5 %

 

 

— %

 

 

— %

 

 

16.6 %

 

 

— %

 

 

16.6 %

Agtech

 

 

1.8 %

 

 

2.4 %

 

 

— %

 

 

4.2 %

 

 

1.7 %

 

 

5.9 %

Infrastructure

 

 

18.4 %

 

 

— %

 

 

— %

 

 

18.4 %

 

 

— %

 

 

18.4 %

Segments Margin

 

 

12.0 %

 

 

0.6 %

 

 

0.5 %

 

 

13.1 %

 

 

0.5 %

 

 

13.6 %

Consolidated

 

 

9.0 %

 

 

0.6 %

 

 

0.5 %

 

 

10.2 %

 

 

0.3 %

 

 

10.5 %

 

 

 

 

 

 

 

 

 

 

 

 

 

*Recast to exclude processing equipment business which was reclassified as held for sale as of March 31, 2022.

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Six Months Ended

June 30, 2022

 

 

As Reported In GAAP Statements

 

Restructuring & Senior Leadership Transition Charges

 

Acquisition Related Items

 

Portfolio Management

 

Adjusted Financial Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

Renewables

 

$

180,332

 

$

 

$

 

$

 

$

180,332

Residential

 

 

379,730

 

 

 

 

 

 

 

 

379,730

Agtech

 

 

86,108

 

 

 

 

 

 

(4,571)

 

 

81,537

Infrastructure

 

 

38,644

 

 

 

 

 

 

 

 

38,644

Consolidated sales

 

 

684,814

 

 

 

 

 

 

(4,571)

 

 

680,243

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

(155)

 

 

2,385

 

 

605

 

 

 

 

2,835

Residential

 

 

69,099

 

 

1,582

 

 

 

 

 

 

70,681

Agtech

 

 

1,573

 

 

88

 

 

 

 

3,634

 

 

5,295

Infrastructure

 

 

4,068

 

 

(63)

 

 

 

 

 

 

4,005

Segments Income

 

 

74,585

 

 

3,992

 

 

605

 

 

3,634

 

 

82,816

Unallocated corporate expense

 

 

(13,251)

 

 

449

 

 

7

 

 

 

 

(12,795)

Consolidated income from operations

 

 

61,334

 

 

4,441

 

 

612

 

 

3,634

 

 

70,021

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,141

 

 

 

 

 

 

 

 

1,141

Other expense

 

 

434

 

 

 

 

 

 

100

 

 

534

Income before income taxes

 

 

59,759

 

 

4,441

 

 

612

 

 

3,534

 

 

68,346

Provision for income taxes

 

 

14,996

 

 

1,103

 

 

152

 

 

879

 

 

17,130

Income from continuing operations

 

$

44,763

 

$

3,338

 

$

460

 

$

2,655

 

$

51,216

Income from continuing operations per share - diluted

 

$

1.36

 

$

0.10

 

$

0.02

 

$

0.08

 

$

1.56

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

(0.1) %

 

 

1.3 %

 

 

0.3 %

 

 

— %

 

 

1.6 %

Residential

 

 

18.2 %

 

 

0.4 %

 

 

— %

 

 

— %

 

 

18.6 %

Agtech

 

 

1.8 %

 

 

0.1 %

 

 

— %

 

 

4.2 %

 

 

6.5 %

Infrastructure

 

 

10.5 %

 

 

(0.2) %

 

 

— %

 

 

— %

 

 

10.4 %

Segments Margin

 

 

10.9 %

 

 

0.6 %

 

 

0.1 %

 

 

0.5 %

 

 

12.2 %

Consolidated

 

 

9.0 %

 

 

0.7 %

 

 

0.1 %

 

 

0.5 %

 

 

10.3 %

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Six Months Ended

June 30, 2021

 

 

As Reported In GAAP Statements

 

Restructuring & Senior Leadership Transition Costs

 

Acquisition Related Items

 

Adjusted Financial Measures

 

Portfolio Management*

 

Adjusted Financial Measures *

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Renewables

 

$

193,263

 

$

 

$

 

$

193,263

 

$

 

$

193,263

Residential

 

 

304,426

 

 

 

 

 

 

304,426

 

 

 

 

304,426

Agtech

 

 

100,435

 

 

 

 

 

 

100,435

 

 

(12,237)

 

 

88,198

Infrastructure

 

 

37,857

 

 

 

 

 

 

37,857

 

 

 

 

37,857

Consolidated sales

 

 

635,981

 

 

 

 

 

 

635,981

 

 

(12,237)

 

 

623,744

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

8,989

 

 

5,757

 

 

3,758

 

 

18,504

 

 

 

 

18,504

Residential

 

 

50,089

 

 

94

 

 

 

 

50,183

 

 

 

 

50,183

Agtech

 

 

1,906

 

 

1,491

 

 

 

 

3,397

 

 

1,302

 

 

4,699

Infrastructure

 

 

6,223

 

 

 

 

 

 

6,223

 

 

 

 

6,223

Segments Income

 

 

67,207

 

 

7,342

 

 

3,758

 

 

78,307

 

 

1,302

 

 

79,609

Unallocated corporate expense

 

 

(22,983)

 

 

1,366

 

 

915

 

 

(20,702)

 

 

 

 

(20,702)

Consolidated income from operations

 

 

44,224

 

 

8,708

 

 

4,673

 

 

57,605

 

 

1,302

 

 

58,907

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

689

 

 

 

 

 

 

689

 

 

 

 

689

Other (income) expense

 

 

(4,351)

 

 

 

 

4,747

 

 

396

 

 

 

 

396

Income before income taxes

 

 

47,886

 

 

8,708

 

 

(74)

 

 

56,520

 

 

1,302

 

 

57,822

Provision for income taxes

 

 

11,017

 

 

2,191

 

 

(442)

 

 

12,766

 

 

345

 

 

13,111

Income from continuing operations

 

$

36,869

 

$

6,517

 

$

368

 

$

43,754

 

$

957

 

$

44,711

Income from continuing operations per share - diluted

 

$

1.11

 

$

0.20

 

$

0.01

 

$

1.32

 

$

0.03

 

$

1.35

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

4.7 %

 

 

3.0 %

 

 

1.9 %

 

 

9.6 %

 

 

— %

 

 

9.6 %

Residential

 

 

16.5 %

 

 

— %

 

 

— %

 

 

16.5 %

 

 

— %

 

 

16.5 %

Agtech

 

 

1.9 %

 

 

1.5 %

 

 

— %

 

 

3.4 %

 

 

1.9 %

 

 

5.3 %

Infrastructure

 

 

16.4 %

 

 

— %

 

 

— %

 

 

16.4 %

 

 

— %

 

 

16.4 %

Segments Margin

 

 

10.6 %

 

 

1.2 %

 

 

0.6 %

 

 

12.3 %

 

 

0.5 %

 

 

12.8 %

Consolidated

 

 

7.0 %

 

 

1.4 %

 

 

0.7 %

 

 

9.1 %

 

 

0.3 %

 

 

9.4 %

 

 

 

 

 

 

 

 

 

 

 

 

 

*Recast to exclude processing equipment business which was reclassified as held for sale as of March 31, 2022

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Income From Continuing Operations to Adjusted EBITDA

(in thousands)

(unaudited)

 

 

 

Three Months Ended

June 30,2022

 

 

Consolidated

 

Renewables

 

Residential

 

Agtech

 

Infrastructure

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

366,949

 

$

101,549

 

$

200,245

 

$

43,680

 

$

21,475

Less: Processing Revenues*

 

 

(2,748)

 

 

 

 

 

 

(2,748)

 

 

Adjusted Net Sales

 

$

364,201

 

$

101,549

 

$

200,245

 

$

40,932

 

$

21,475

 

 

 

 

 

 

 

 

 

 

 

Income From Continuing Operations

 

 

29,307

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

 

9,895

 

 

 

 

 

 

 

 

Interest Expense

 

 

656

 

 

 

 

 

 

 

 

Other Expense

 

 

281

 

 

 

 

 

 

 

 

Operating Profit

 

 

40,139

 

 

6,829

 

 

35,664

 

 

1,542

 

 

2,887

Adjusted Measures**

 

 

2,958

 

 

283

 

 

1,295

 

 

1,206

 

 

Adjusted Operating Profit

 

 

43,097

 

 

7,112

 

 

36,959

 

 

2,748

 

 

2,887

Adjusted Operating Margin

 

 

11.8 %

 

 

7.0 %

 

 

18.5 %

 

 

6.7 %

 

 

13.4 %

Adjusted Other Expense & Loss on Sale of PPE

 

 

371

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

 

6,341

 

 

2,113

 

 

2,025

 

 

1,013

 

 

792

Less: Held for Sale Depreciation & Amortization

 

 

 

 

 

 

 

 

 

 

Adjusted Depreciation & Amortization

 

 

6,341

 

 

2,113

 

 

2,025

 

 

1,013

 

 

792

Stock Compensation Expense

 

 

2,773

 

 

195

 

 

241

 

 

107

 

 

41

Less: Senior Leadership Transition Related Stock Compensation Recovery

 

 

 

 

 

 

 

 

 

 

Adjusted Stock Compensation Expense

 

 

2,773

 

 

195

 

 

241

 

 

107

 

 

41

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

51,840

 

 

9,420

 

 

39,225

 

 

3,868

 

 

3,720

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Margin

 

 

14.2 %

 

 

9.3 %

 

 

19.6 %

 

 

9.4 %

 

 

17.3 %

*To remove revenues of processing equipment business classified as held for sale

**Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Income From Continuing Operations to Adjusted EBITDA

(in thousands)

(unaudited)

 

 

 

Three Months Ended

June 30, 2021

 

 

Consolidated

 

Renewables

 

Residential

 

Agtech

 

Infrastructure

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

348,389

 

$

107,751

 

$

164,209

 

$

53,696

 

$

22,733

Less: Processing Revenues*

 

 

(7,264)

 

 

 

 

 

 

(7,264)

 

 

Adjusted Net Sales

 

$

341,125

 

$

107,751

 

$

164,209

 

$

46,432

 

$

22,733

 

 

 

 

 

 

 

 

 

 

 

Income From Continuing Operations

 

 

26,373

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

 

9,457

 

 

 

 

 

 

 

 

Interest Expense

 

 

245

 

 

 

 

 

 

 

 

Other Income

 

 

(4,666)

 

 

 

 

 

 

 

 

Operating Profit

 

 

31,409

 

 

9,510

 

 

27,155

 

 

977

 

 

4,186

Adjusted Measures**

 

 

4,535

 

 

2,644

 

 

29

 

 

1,753

 

 

Adjusted Operating Profit

 

 

35,944

 

 

12,154

 

 

27,184

 

 

2,730

 

 

4,186

Adjusted Operating Margin

 

 

10.5 %

 

 

11.3 %

 

 

16.6 %

 

 

5.9 %

 

 

18.4 %

Adjusted Other Expense

 

 

81

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

 

8,040

 

 

3,717

 

 

2,203

 

 

1,299

 

 

767

Less: Held for Sale Depreciation & Amortization

 

 

(331)

 

 

 

 

 

 

(331)

 

 

Less: Acquisition-Related Amortization

 

 

(1,563)

 

 

(1,563)

 

 

 

 

 

 

Adjusted Depreciation & Amortization

 

 

6,146

 

 

2,154

 

 

2,203

 

 

968

 

 

767

Stock Compensation Expense

 

 

2,567

 

 

232

 

 

282

 

 

223

 

 

16

Less: Senior Leadership Transition Related Stock Compensation Expense

 

 

 

 

 

 

 

 

 

 

Adjusted Stock Compensation Expense

 

 

2,567

 

 

232

 

 

282

 

 

223

 

 

16

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

44,576

 

 

14,540

 

 

29,669

 

 

3,921

 

 

4,969

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Margin

 

 

13.1 %

 

 

13.5 %

 

 

18.1 %

 

 

8.4 %

 

 

21.9 %

*To remove revenues of processing equipment business classified as held for sale

**Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Income From Continuing Operations to Adjusted EBITDA

(in thousands)

(unaudited)

 

 

 

Six Months Ended

June 30, 2022

 

 

Consolidated

 

Renewables

 

Residential

 

Agtech

 

Infrastructure

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

684,814

 

$

180,332

 

$

379,730

 

$

86,108

 

$

38,644

Less: Processing Revenues*

 

 

(4,571)

 

 

 

 

 

 

(4,571)

 

 

Adjusted Net Sales

 

$

680,243

 

$

180,332

 

$

379,730

 

$

81,537

 

$

38,644

 

 

 

 

 

 

 

 

 

 

 

Income From Continuing Operations

 

 

44,763

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

 

14,996

 

 

 

 

 

 

 

 

Interest Expense

 

 

1,141

 

 

 

 

 

 

 

 

Other Expense

 

 

434

 

 

 

 

 

 

 

 

Operating Profit

 

 

61,334

 

 

(155)

 

 

69,099

 

 

1,573

 

 

4,068

Adjusted Measures**

 

 

8,687

 

 

2,990

 

 

1,582

 

 

3,722

 

 

(63)

Adjusted Operating Profit

 

 

70,021

 

 

2,835

 

 

70,681

 

 

5,295

 

 

4,005

Adjusted Operating Margin

 

 

10.3 %

 

 

1.6 %

 

 

18.6 %

 

 

6.5 %

 

 

10.4 %

Adjusted Other Expense & Loss on Sale of PPE

 

 

524

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

 

12,677

 

 

4,256

 

 

4,078

 

 

2,332

 

 

1,575

Less: Held for Sale Depreciation & Amortization

 

 

(332)

 

 

 

 

 

 

(332)

 

 

Adjusted Depreciation & Amortization

 

 

12,345

 

 

4,256

 

 

4,078

 

 

2,000

 

 

1,575

Stock Compensation Expense

 

 

4,125

 

 

448

 

 

432

 

 

177

 

 

74

Less: Senior Leadership Transition Related Stock Compensation Recovery

 

 

155

 

 

 

 

 

 

 

 

Adjusted Stock Compensation Expense

 

 

4,280

 

 

448

 

 

432

 

 

177

 

 

74

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

86,122

 

 

7,539

 

 

75,191

 

 

7,472

 

 

5,654

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Margin

 

 

12.7 %

 

 

4.2 %

 

 

19.8 %

 

 

9.2 %

 

 

14.6 %

*To remove revenues of processing equipment business classified as held for sale

**Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Income From Continuing Operations to Adjusted EBITDA

(in thousands)

(unaudited)

 

 

 

Six Months Ended

June 30, 2021

 

 

Consolidated

 

Renewables

 

Residential

 

Agtech

 

Infrastructure

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

635,981

 

$

193,263

 

$

304,426

 

$

100,435

 

$

37,857

Less: Processing Revenues*

 

 

(12,237)

 

 

 

 

 

 

(12,237)

 

 

Adjusted Net Sales

 

$

623,744

 

$

193,263

 

$

304,426

 

$

88,198

 

$

37,857

 

 

 

 

 

 

 

 

 

 

 

Income From Continuing Operations

 

 

36,869

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

 

11,017

 

 

 

 

 

 

 

 

Interest Expense

 

 

689

 

 

 

 

 

 

 

 

Other Income

 

 

(4,351)

 

 

 

 

 

 

 

 

Operating Profit

 

 

44,224

 

 

8,989

 

 

50,089

 

 

1,906

 

 

6,223

Adjusted Measures**

 

 

14,683

 

 

9,515

 

 

94

 

 

2,793

 

 

Adjusted Operating Profit

 

 

58,907

 

 

18,504

 

 

50,183

 

 

4,699

 

 

6,223

Adjusted Operating Margin

 

 

9.4 %

 

 

9.6 %

 

 

16.5 %

 

 

5.3 %

 

 

16.4 %

Adjusted Other Expense

 

 

396

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

 

16,014

 

 

7,308

 

 

4,418

 

 

2,647

 

 

1,535

Less: Held for Sale Depreciation & Amortization

 

 

(661)

 

 

 

 

 

 

(661)

 

 

Less: Acquisition-Related Amortization

 

 

(3,138)

 

 

(3,138)

 

 

 

 

 

 

Adjusted Depreciation & Amortization

 

 

12,215

 

 

4,170

 

 

4,418

 

 

1,986

 

 

1,535

Stock Compensation Expense

 

 

4,935

 

 

386

 

 

502

 

 

374

 

 

44

Less: Senior Leadership Transition Related Stock Compensation Expense

 

 

(504)

 

 

 

 

 

 

 

 

Adjusted Stock Compensation Expense

 

 

4,431

 

 

386

 

 

502

 

 

374

 

 

44

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

75,157

 

 

23,060

 

 

55,103

 

 

7,059

 

 

7,802

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Margin

 

 

12.0 %

 

 

11.9 %

 

 

18.1 %

 

 

8.0 %

 

 

20.6 %

*To remove revenues of processing equipment business classified as held for sale

**Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

 

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

Source: Gibraltar Industries, Inc.