08/02/23 at 7:30 AM EDT

Gibraltar Announces Second Quarter 2023 Financial Results

EPS: GAAP up 11%, Adjusted up 23% on Flat Sales

Backlog at $412 Million, up 15% Sequentially, up 1% vs. Prior Year

Continued Strong Cash Flow Generation

Increasing 2023 EPS Outlook; Reaffirming 2023 Net Sales Outlook

BUFFALO, N.Y.--(BUSINESS WIRE)--Aug. 2, 2023-- 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, 2023.

“We executed well in the quarter, building on our momentum from the beginning of the year. Our end market fundamentals remain solid with our order backlog up 15% sequentially and 1% versus prior year. On an adjusted basis, operating income improved 18%, EPS improved 23%, and we generated 20% free cash flow. Given our first half performance and current outlook for the second half of the year, we are raising our adjusted EPS guidance range 12% - 13% and reaffirming our net sales outlook and expect continued strong cash flow generation,” stated Chairman and CEO Bill Bosway.

Second Quarter 2023 Consolidated Results

 

Three Months Ended June 30,

$Millions, except EPS

GAAP

 

Adjusted

 

2023

2022

Change

 

2023

2022

Change

Net Sales

$364.9

$366.9

(0.5)%

 

$364.1

$364.2

0.0%

Net Income

$30.7

$29.3

4.8%

 

$36.3

$31.5

15.2%

Diluted EPS

$1.00

$0.90

11.1%

 

$1.18

$0.96

22.9%

Net sales were flat, driven by the acquisition of Quality Aluminum Products, completed in the third quarter of 2022, along with organic growth in the Residential and Infrastructure segments. Offsetting growth were market price adjustments in the Residential segment, continued channel inventory right-sizing, and project delays in the Renewables and Agtech segments related to solar module availability, project permitting, and project rescoping.

GAAP earnings increased to $30.7 million, or $1.00 per share. Adjusted net income increased 15.2% to $36.3 million, or $1.18 per share, and adjusted EPS increased 22.9% driven by solid execution in all segments. Free cash flow to net sales of 20.0% was driven by improved margin performance and working capital management.

Adjusted measures exclude charges for restructuring initiatives, acquisition-related items, senior leadership transition costs and the results of the processing business, as further described in the appended reconciliation of adjusted financial measures.

Second Quarter Segment Results

Renewables

 

Three Months Ended June 30,

$Millions

GAAP

 

Adjusted

 

2023

2022

Change

 

2023

2022

Change

Net Sales

$77.5

$101.5

(23.6)%

 

$77.5

$101.5

(23.6)%

Operating Income

$5.9

$6.8

(13.2)%

 

$9.1

$7.1

28.2%

Operating Margin

7.6%

6.7%

90 bps

 

11.7%

7.0%

470 bps

Net sales were down 23.6% as module supply and local permitting delays impacted project timing of contracted and active projects. New order bookings continued to accelerate from the beginning of the year with order backlog up 16.7% sequentially and 6.3% versus prior year. Solar module supply remains a challenge but continues to improve as additional module importers come up the Uyghur Forced Labor Prevention Act (UFLPA) importation learning curve.

Adjusted operating margin increased 470 basis points versus prior year as the team continued to execute well across the business. Management expects to deliver improved sales and margin performance in the second half of the year as module supply improves further.

Residential

 

Three Months Ended June 30,

$Millions

GAAP

 

Adjusted

 

2023

2022

Change

 

2023

2022

Change

Net Sales

$228.2

$200.2

14.0%

 

$228.2

$200.2

14.0%

Operating Income

$44.0

$35.7

23.2%

 

$44.0

$37.0

18.9%

Operating Margin

19.3%

17.8%

150 bps

 

19.3%

18.5%

80 bps

Net sales increased 14.0%, with organic sales contributing 1.3% and the acquisition of Quality Aluminum Products adding 12.7%. Organic growth was driven by participation gains across the business, which helped offset the year-over-year impact of market price adjustments made in prior quarters in response to lower commodity prices and some remaining channel inventory right-sizing.

Adjusted operating income improved 18.9% with increased volume, improved alignment of price/cost, implementation of additional 80/20 initiatives, and favorable product line mix. Operating margin expanded 80 basis points and management expects solid performance to continue in the second half of the year.

Agtech

 

Three Months Ended June 30,

$Millions

GAAP

 

Adjusted

 

2023

2022

Change

 

2023

2022

Change

Net Sales

$35.0

$43.7

(19.9)%

 

$34.3

$40.9

(16.1)%

Operating Income

$(1.1)

$1.5

NMF

 

$3.3

$2.7

22.2%

Operating Margin

(3.2)%

3.5%

(670) bps

 

9.5%

6.7%

280 bps

Net sales on an adjusted basis were down 16.1% as the commercial business experienced customer delays in project starts. New orders in the produce business helped increase backlog 16.2% sequentially, which is expected to drive improved sales in the second half of 2023.

Adjusted operating margin improved 280 basis points driven by 80/20 initiatives, supply chain optimization initiatives, and improvement in project management systems. Margin performance is expected to be solid for the rest of the year.

During the quarter, Gibraltar elected to exit the processing equipment business, resulting in a GAAP operating loss in the segment. This liquidation is underway and expected to be substantially completed during the third quarter of 2023.

Infrastructure

 

Three Months Ended June 30,

$Millions

GAAP

 

Adjusted

 

2023

2022

Change

 

2023

2022

Change

Net Sales

$24.2

$21.5

12.6%

 

$24.2

$21.5

12.6%

Operating Income

$5.8

$2.9

100.0%

 

$5.8

$2.9

100.0%

Operating Margin

24.1%

13.4%

1070 bps

 

24.1%

13.4%

1070 bps

Net sales and order backlog increased 12.6% and 46.1% respectively driven by strong end market demand and market participation gains. The Infrastructure Investment and Jobs Act continues to provide a strong tailwind for the market and management expects positive momentum to continue in the second half of the year.

Adjusted operating income doubled and adjusted operating margins improved 1,070 basis points driven by strong execution, 80/20 productivity, supply chain efficiency, and product line mix.

Business Outlook

Mr. Bosway concluded, “We delivered solid results in the first half, and we expect this momentum to continue as we enter the second half. As a result, we are raising our EPS guide and are reaffirming our 2023 net sales outlook, and expect to deliver growth, improved profitability, and better cash flow versus last year.”

Gibraltar is raising its guidance for earnings for the full year 2023. GAAP EPS is now expected to range between $3.46 and $3.66, compared to $2.56 in 2022, and adjusted EPS is now expected to range between $3.90 and $4.10, compared to $3.40 in 2022. The outlook for consolidated net sales is unchanged, between $1.36 billion and $1.41 billion, compared to $1.38 billion in 2022.

Second Quarter 2023 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 2023. 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 also may be accessed by dialing (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, the loss of any key customers, adverse effects of inflation, our ability to continue to improve operating margins, our ability to translate our backlog into net sales, other general economic conditions and conditions in the particular markets in which we operate, increases in spending due to laws and government incentives, such as the Infrastructure Investment and Jobs Act, 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 and the Uyghur Forced Labor Prevention Act (UFLPA)), 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 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 and its quarterly conference call, including adjusted net sales, adjusted operating income and margin, adjusted net income, adjusted earnings per share (EPS), free cash flow and adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) each a non-GAAP financial measure. Adjusted net sales reflects the removal of net sales associated with our Processing business, which is in the process of being liquidated. 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 which is in the process of being liquidated. These special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations. 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. Free cash flow is operating cash flow less capital expenditures and the related margin is free cash flow divided by net sales. The Company believes that the presentation of adjusted measures and free cash flows 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 and free cash flow are also useful measures of the Company’s ability to service debt and adjusted EBITDA 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 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 the Company’s presentation of non-GAAP financial measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items.

Reconciliations of non-GAAP measures related to full-year 2023 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,

 

 

2023

 

 

 

2022

 

 

2023

 

 

 

2022

Net sales

$

364,914

 

 

$

366,949

 

$

658,181

 

 

$

684,814

Cost of sales

 

268,175

 

 

 

276,678

 

 

484,513

 

 

 

529,699

Gross profit

 

96,739

 

 

 

90,271

 

 

173,668

 

 

 

155,115

Selling, general, and administrative expense

 

53,662

 

 

 

50,132

 

 

101,221

 

 

 

93,781

Income from operations

 

43,077

 

 

 

40,139

 

 

72,447

 

 

 

61,334

Interest expense

 

1,308

 

 

 

656

 

 

2,799

 

 

 

1,141

Other (income) expense

 

(509

)

 

 

281

 

 

(906

)

 

 

434

Income before taxes

 

42,278

 

 

 

39,202

 

 

70,554

 

 

 

59,759

Provision for income taxes

 

11,555

 

 

 

9,895

 

 

18,732

 

 

 

14,996

Net income

$

30,723

 

 

$

29,307

 

$

51,822

 

 

$

44,763

 

 

 

 

 

 

 

 

Net earnings per share:

 

 

 

 

 

 

 

Basic

$

1.01

 

 

$

0.90

 

$

1.69

 

 

$

1.37

Diluted

$

1.00

 

 

$

0.90

 

$

1.68

 

 

$

1.36

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

30,554

 

 

 

32,585

 

 

30,725

 

 

 

32,748

Diluted

 

30,684

 

 

 

32,660

 

 

30,846

 

 

 

32,843

 

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 

 

June 30,
2023

 

December 31,
2022

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

18,621

 

 

$

17,608

 

Accounts receivable, net of allowance of $4,849 and $3,746, respectively

 

266,487

 

 

 

217,156

 

Inventories, net

 

159,542

 

 

 

170,360

 

Prepaid expenses and other current assets

 

18,320

 

 

 

18,813

 

Total current assets

 

462,970

 

 

 

423,937

 

Property, plant, and equipment, net

 

106,130

 

 

 

109,584

 

Operating lease assets

 

25,041

 

 

 

26,502

 

Goodwill

 

511,961

 

 

 

512,363

 

Acquired intangibles

 

131,925

 

 

 

137,526

 

Other assets

 

550

 

 

 

701

 

 

$

1,238,577

 

 

$

1,210,613

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

155,464

 

 

$

106,582

 

Accrued expenses

 

82,746

 

 

 

73,721

 

Billings in excess of cost

 

54,838

 

 

 

35,017

 

Total current liabilities

 

293,048

 

 

 

215,320

 

Long-term debt

 

9,790

 

 

 

88,762

 

Deferred income taxes

 

47,024

 

 

 

47,088

 

Non-current operating lease liabilities

 

18,502

 

 

 

19,041

 

Other non-current liabilities

 

19,903

 

 

 

18,303

 

Stockholders’ equity:

 

 

 

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

 

 

 

 

 

Common stock, $0.01 par value; authorized 100,000 shares; 34,194 and 34,060 shares issued and outstanding in 2023 and 2022

 

342

 

 

 

340

 

Additional paid-in capital

 

327,927

 

 

 

322,873

 

Retained earnings

 

679,800

 

 

 

627,978

 

Accumulated other comprehensive loss

 

(4,115

)

 

 

(3,432

)

Cost of 3,770 and 3,199 common shares held in treasury in 2023 and 2022

 

(153,644

)

 

 

(125,660

)

Total stockholders’ equity

 

850,310

 

 

 

822,099

 

 

$

1,238,577

 

 

$

1,210,613

 

 

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

Six Months Ended

June 30,

 

 

2023

 

 

 

2022

 

Cash Flows from Operating Activities

 

 

 

Net income

$

51,822

 

 

$

44,763

 

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

 

 

 

Depreciation and amortization

 

13,665

 

 

 

12,677

 

Stock compensation expense

 

5,056

 

 

 

4,125

 

Exit activity (recoveries) costs, non-cash

 

(23

)

 

 

1,198

 

Provision for deferred income taxes

 

179

 

 

 

29

 

Other, net

 

2,680

 

 

 

2,666

 

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

 

 

 

Accounts receivable

 

(54,979

)

 

 

(40,473

)

Inventories

 

12,130

 

 

 

(33,616

)

Other current assets and other assets

 

4,069

 

 

 

(1,612

)

Accounts payable

 

48,327

 

 

 

(10,501

)

Accrued expenses and other non-current liabilities

 

31,168

 

 

 

21,288

 

Net cash provided by operating activities

 

114,094

 

 

 

544

 

Cash Flows from Investing Activities

 

 

 

Acquisitions, net of cash acquired

 

554

 

 

 

 

Purchases of property, plant, and equipment, net

 

(5,284

)

 

 

(11,202

)

Net cash used in investing activities

 

(4,730

)

 

 

(11,202

)

Cash Flows from Financing Activities

 

 

 

Proceeds from long-term debt

 

40,800

 

 

 

120,500

 

Long-term debt payments

 

(120,000

)

 

 

(51,000

)

Purchase of common stock at market prices

 

(28,770

)

 

 

(53,468

)

Net cash (used in) provided by financing activities

 

(107,970

)

 

 

16,032

 

Effect of exchange rate changes on cash

 

(381

)

 

 

(1,074

)

Net increase in cash and cash equivalents

 

1,013

 

 

 

4,300

 

Cash and cash equivalents at beginning of year

 

17,608

 

 

 

12,849

 

Cash and cash equivalents at end of period

$

18,621

 

 

$

17,149

 

 

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

June 30,2023

 

 

As Reported
In GAAP
Statements

 

Restructuring
Charges

 

Acquisition
Related
Items

 

Portfolio
Management

 

Adjusted
Financial
Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

Renewables

 

$

77,459

 

 

$

 

 

$

 

 

$

 

 

$

77,459

 

Residential

 

 

228,234

 

 

 

 

 

 

 

 

 

 

 

 

228,234

 

Agtech

 

 

35,028

 

 

 

 

 

 

 

 

 

(765

)

 

 

34,263

 

Infrastructure

 

 

24,193

 

 

 

 

 

 

 

 

 

 

 

 

24,193

 

Consolidated sales

 

 

364,914

 

 

 

 

 

 

 

 

 

(765

)

 

 

364,149

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

5,908

 

 

 

2,997

 

 

 

148

 

 

 

 

 

 

9,053

 

Residential

 

 

43,959

 

 

 

 

 

 

 

 

 

 

 

 

43,959

 

Agtech

 

 

(1,117

)

 

 

156

 

 

 

11

 

 

 

4,222

 

 

 

3,272

 

Infrastructure

 

 

5,828

 

 

 

 

 

 

 

 

 

 

 

 

5,828

 

Segments Income

 

 

54,578

 

 

 

3,153

 

 

 

159

 

 

 

4,222

 

 

 

62,112

 

Unallocated corporate expense

 

 

(11,501

)

 

 

 

 

 

42

 

 

 

24

 

 

 

(11,435

)

Consolidated income from operations

 

 

43,077

 

 

 

3,153

 

 

 

201

 

 

 

4,246

 

 

 

50,677

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,308

 

 

 

 

 

 

 

 

 

 

 

 

1,308

 

Other (income) expense

 

 

(509

)

 

 

 

 

 

 

 

 

559

 

 

 

50

 

Income before income taxes

 

 

42,278

 

 

 

3,153

 

 

 

201

 

 

 

3,687

 

 

 

49,319

 

Provision for income taxes

 

 

11,555

 

 

 

857

 

 

 

53

 

 

 

569

 

 

 

13,034

 

Net income

 

$

30,723

 

 

$

2,296

 

 

$

148

 

 

$

3,118

 

 

$

36,285

 

Net income per share - diluted

 

$

1.00

 

 

$

0.08

 

 

$

 

 

$

0.10

 

 

$

1.18

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

7.6

%

 

 

3.9

%

 

 

0.2

%

 

 

%

 

 

11.7

%

Residential

 

 

19.3

%

 

 

%

 

 

%

 

 

%

 

 

19.3

%

Agtech

 

 

(3.2

)%

 

 

0.4

%

 

 

%

 

 

12.1

%

 

 

9.5

%

Infrastructure

 

 

24.1

%

 

 

%

 

 

%

 

 

%

 

 

24.1

%

Segments Margin

 

 

15.0

%

 

 

0.9

%

 

 

%

 

 

1.2

%

 

 

17.1

%

Consolidated

 

 

11.8

%

 

 

0.9

%

 

 

0.1

%

 

 

1.2

%

 

 

13.9

%

 

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

 

Net income

 

$

29,307

 

 

$

1,236

 

 

$

163

 

 

$

764

 

 

$

31,470

 

Net income 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)

 

 

 

Six Months Ended

June 30, 2023

 

 

As Reported In
GAAP
Statements

 

Restructuring
Charges

 

Acquisition
Related
Items

 

Portfolio
Management

 

Adjusted
Financial
Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

Renewables

 

$

136,664

 

 

$

 

 

$

 

 

$

 

 

$

136,664

 

Residential

 

 

407,729

 

 

 

 

 

 

 

 

 

 

 

 

407,729

 

Agtech

 

 

70,880

 

 

 

 

 

 

 

 

 

(3,279

)

 

 

67,601

 

Infrastructure

 

 

42,908

 

 

 

 

 

 

 

 

 

 

 

 

42,908

 

Consolidated sales

 

 

658,181

 

 

 

 

 

 

 

 

 

(3,279

)

 

 

654,902

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

8,177

 

 

 

2,934

 

 

 

180

 

 

 

 

 

 

11,291

 

Residential

 

 

73,468

 

 

 

114

 

 

 

 

 

 

 

 

 

73,582

 

Agtech

 

 

1,213

 

 

 

717

 

 

 

37

 

 

 

4,857

 

 

 

6,824

 

Infrastructure

 

 

8,542

 

 

 

 

 

 

 

 

 

 

 

 

8,542

 

Segments Income

 

 

91,400

 

 

 

3,765

 

 

 

217

 

 

 

4,857

 

 

 

100,239

 

Unallocated corporate expense

 

 

(18,953

)

 

 

(19

)

 

 

63

 

 

 

24

 

 

 

(18,885

)

Consolidated income from operations

 

 

72,447

 

 

 

3,746

 

 

 

280

 

 

 

4,881

 

 

 

81,354

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

2,799

 

 

 

 

 

 

 

 

 

 

 

 

2,799

 

Other (income) expense

 

 

(906

)

 

 

 

 

 

 

 

 

1,027

 

 

 

121

 

Income before income taxes

 

 

70,554

 

 

 

3,746

 

 

 

280

 

 

 

3,854

 

 

 

78,434

 

Provision for income taxes

 

 

18,732

 

 

 

997

 

 

 

73

 

 

 

590

 

 

 

20,392

 

Net income

 

$

51,822

 

 

$

2,749

 

 

$

207

 

 

$

3,264

 

 

$

58,042

 

Net income per share - diluted

 

$

1.68

 

 

$

0.09

 

 

$

 

 

$

0.11

 

 

$

1.88

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

6.0

%

 

 

2.1

%

 

 

0.1

%

 

 

%

 

 

8.3

%

Residential

 

 

18.0

%

 

 

%

 

 

%

 

 

%

 

 

18.0

%

Agtech

 

 

1.7

%

 

 

1.0

%

 

 

0.1

%

 

 

6.9

%

 

 

10.1

%

Infrastructure

 

 

19.9

%

 

 

%

 

 

%

 

 

%

 

 

19.9

%

Segments Margin

 

 

13.9

%

 

 

0.6

%

 

 

%

 

 

0.7

%

 

 

15.3

%

Consolidated

 

 

11.0

%

 

 

0.6

%

 

 

%

 

 

0.7

%

 

 

12.4

%

 

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
Costs

 

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

 

Net income

 

$

44,763

 

 

$

3,338

 

 

$

460

 

 

$

2,655

 

 

$

51,216

 

Net income 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)

(unaudited)

 

 

 

Three Months Ended

June 30,2023

 

 

Consolidated

 

Renewables

 

Residential

 

Agtech

 

Infrastructure

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

364,914

 

 

$

77,459

 

 

$

228,234

 

 

$

35,028

 

 

$

24,193

 

Less: Processing Net Sales

 

 

(765

)

 

 

 

 

 

 

 

 

(765

)

 

 

 

Adjusted Net Sales

 

$

364,149

 

 

$

77,459

 

 

$

228,234

 

 

$

34,263

 

 

$

24,193

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

30,723

 

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

 

11,555

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

1,308

 

 

 

 

 

 

 

 

 

Other Income

 

 

(509

)

 

 

 

 

 

 

 

 

Operating Profit

 

 

43,077

 

 

 

5,908

 

 

 

43,959

 

 

 

(1,117

)

 

 

5,828

 

Adjusted Measures*

 

 

7,600

 

 

 

3,145

 

 

 

 

 

 

4,389

 

 

 

 

Adjusted Operating Profit

 

 

50,677

 

 

 

9,053

 

 

 

43,959

 

 

 

3,272

 

 

 

5,828

 

Adjusted Operating Margin

 

 

13.9

%

 

 

11.7

%

 

 

19.3

%

 

 

9.5

%

 

 

24.1

%

Adjusted Other Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

 

6,831

 

 

 

2,211

 

 

 

2,463

 

 

 

953

 

 

 

786

 

Stock Compensation Expense

 

 

3,462

 

 

 

233

 

 

 

309

 

 

 

181

 

 

 

56

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

60,970

 

 

 

11,497

 

 

 

46,731

 

 

 

4,406

 

 

 

6,670

 

Adjusted EBITDA Margin

 

 

16.7

%

 

 

14.8

%

 

 

20.5

%

 

 

12.9

%

 

 

27.6

%

 

 

 

 

 

 

 

 

 

 

 

Cash Flow - Operating Activities

 

 

76,049

 

 

 

 

 

 

 

 

 

Purchase of PPE, Net

 

 

(3,094

)

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

72,955

 

 

 

 

 

 

 

 

 

Free Cash Flow - % of Adjusted Net Sales

 

 

20.0

%

 

 

 

 

 

 

 

 

 

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

 

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(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 Net Sales

 

 

(2,748

)

 

 

 

 

 

 

 

 

(2,748

)

 

 

 

Adjusted Net Sales

 

$

364,201

 

 

$

101,549

 

 

$

200,245

 

 

$

40,932

 

 

$

21,475

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

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

 

 

371

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

 

6,341

 

 

 

2,113

 

 

 

2,025

 

 

 

1,013

 

 

 

792

 

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

%

 

 

 

 

 

 

 

 

 

 

 

Cash Flow - Operating Activities

 

 

8,298

 

 

 

 

 

 

 

 

 

Purchase of PPE, Net

 

 

(6,800

)

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

1,498

 

 

 

 

 

 

 

 

 

Free Cash Flow - % of Adjusted Net Sales

 

 

0.4

%

 

 

 

 

 

 

 

 

 

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

 

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands)

(unaudited)

 

 

 

Six Months Ended

June 30, 2023

 

 

Consolidated

 

Renewables

 

Residential

 

Agtech

 

Infrastructure

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

658,181

 

 

$

136,664

 

 

$

407,729

 

 

$

70,880

 

 

$

42,908

 

Less: Processing Net Sales

 

 

(3,279

)

 

 

 

 

 

 

 

 

(3,279

)

 

 

 

Adjusted Net Sales

 

$

654,902

 

 

$

136,664

 

 

$

407,729

 

 

$

67,601

 

 

$

42,908

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

51,822

 

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

 

18,732

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

2,799

 

 

 

 

 

 

 

 

 

Other Income

 

 

(906

)

 

 

 

 

 

 

 

 

Operating Profit

 

 

72,447

 

 

 

8,177

 

 

 

73,468

 

 

 

1,213

 

 

 

8,542

 

Adjusted Measures*

 

 

8,907

 

 

 

3,114

 

 

 

114

 

 

 

5,611

 

 

 

 

Adjusted Operating Profit

 

 

81,354

 

 

 

11,291

 

 

 

73,582

 

 

 

6,824

 

 

 

8,542

 

Adjusted Operating Margin

 

 

12.4

%

 

 

8.3

%

 

 

18.0

%

 

 

10.1

%

 

 

19.9

%

Adjusted Other Expense

 

 

77

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

 

13,665

 

 

 

4,390

 

 

 

4,956

 

 

 

1,907

 

 

 

1,566

 

Stock Compensation Expense

 

 

5,056

 

 

 

447

 

 

 

607

 

 

 

334

 

 

 

103

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

99,998

 

 

 

16,128

 

 

 

79,145

 

 

 

9,065

 

 

 

10,211

 

Adjusted EBITDA Margin

 

 

15.3

%

 

 

11.8

%

 

 

19.4

%

 

 

13.4

%

 

 

23.8

%

 

 

 

 

 

 

 

 

 

 

 

Cash Flow - Operating Activities

 

 

114,094

 

 

 

 

 

 

 

 

 

Purchase of PPE, Net

 

 

(5,284

)

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

108,810

 

 

 

 

 

 

 

 

 

Free Cash Flow - % of Adjusted Net Sales

 

 

16.6

%

 

 

 

 

 

 

 

 

 

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

 

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(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 Net Sales

 

 

(4,571

)

 

 

 

 

 

 

 

 

(4,571

)

 

 

 

Adjusted Net Sales

 

$

680,243

 

 

$

180,332

 

 

$

379,730

 

 

$

81,537

 

 

$

38,644

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

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

 

 

524

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

 

12,677

 

 

 

4,256

 

 

 

4,078

 

 

 

2,332

 

 

 

1,575

 

Less: Processing Business 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: SLT 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

%

 

 

 

 

 

 

 

 

 

 

 

Cash Flow - Operating Activities

 

 

544

 

 

 

 

 

 

 

 

 

Purchase of PPE, Net

 

 

(11,202

)

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

(10,658

)

 

 

 

 

 

 

 

 

Free Cash Flow - % of Adjusted Net Sales

 

 

(1.6

)%

 

 

 

 

 

 

 

 

 

*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.