UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 28, 2015 (October 28, 2015)
GIBRALTAR INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware | 0-22462 | 16-1445150 | ||
(State or other jurisdiction of incorporation ) | (Commission File Number) | (IRS Employer Identification No.) | ||
3556 Lake Shore Road
P.O. Box 2028
Buffalo, New York 14219-0228
(Address of principal executive offices) (Zip Code)
(716) 826-6500
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
TABLE OF CONTENTS
Item 2.02 Results of Operations and Financial Condition | 3 | |||||
Item 7.01 Regulation FD Disclosure | 3 | |||||
Item 9.01 Financial Statements and Exhibits | 3 | |||||
SIGNATURE | 4 | |||||
EX - 99.1 | ||||||
Item 2.02 Results of Operations and Financial Condition
and
Item 7.01 Regulation FD Disclosure
The following information is furnished pursuant to both Item 2.02 and Item 7.01:
On October 28, 2015, Gibraltar Industries, Inc. (the “Company”) issued a news release and held a conference call regarding its financial results for the three and nine months ended September 30, 2015. A copy of the news release (the “Release”) is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The Company references non-GAAP financial information in both the Release and the conference call. A reconciliation of these non-GAAP financial measures is contained in the Release. The information in this Form 8-K under the captions Items 2.02 and 7.01 and Item 9.01, including the Release, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, unless the Company specifically incorporates it by reference in a document filed under the Securities Act or the Exchange Act.
Item 9.01 Financial Statements and Exhibits
(a)-(c) Not Applicable
(d) Exhibits:
Exhibit No. | Description | |
99.1 | Earnings Release issued by Gibraltar Industries, Inc. on October 28, 2015 | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GIBRALTAR INDUSTRIES, INC. | |||
Date: October 28, 2015 | |||
By: | /s/ Kenneth W. Smith | ||
Kenneth W. Smith | |||
Senior Vice President and Chief Financial Officer | |||
Gibraltar Reports Third-Quarter 2015 Financial Results
Q3 Adjusted EPS Increase 67% to $0.50 Year-Over-Year; Sales Grow 30%
Raises Guidance Again for Full-Year 2015 Revenue and Earnings
Buffalo, New York, October 28, 2015 - Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and distributor of building products for industrial, infrastructure and residential markets, today reported its financial results for the three and nine month periods ended September 30, 2015. All financial metrics in this release reflect only the Company’s continuing operations unless otherwise noted.
Third-Quarter Consolidated Results
Gibraltar’s net sales for the third quarter of 2015 increased 30 percent to $305.0 million, compared with $234.1 million in the third quarter of 2014. Adjusted net income was $15.7 million, or $0.50 per diluted share, compared with $9.5 million, or $0.30 per diluted share, in the third quarter of 2014. The adjusted third-quarter 2015 results exclude special items with an after-tax net charge totaling $2.1 million, or $0.07 per diluted share, resulting primarily from costs related to the acquisition of RBI Solar, Inc., Rough Brothers Manufacturing Inc., and affiliates (collectively “RBI”) on June 9, costs related to business restructuring and the Company’s senior leadership transition. The adjusted third-quarter 2014 results excluded special items with an after-tax net gain totaling $0.1 million, or $0.01 per diluted share, resulting primarily from acquisition-related gains and exit activity costs related to business restructuring. Including these items in the respective periods, the Company’s third-quarter 2015 GAAP net income was $13.6 million, or $0.43 per diluted share, compared with net income of $9.6 million, or $0.31 per diluted share, in the third quarter of 2014.
Management Comments
“Gibraltar delivered strong financial results in the third quarter, as we continued to execute on the value-creation strategy we introduced late last year,” said Chief Executive Officer Frank Heard. “Although we continue to see very little market lift in any of our businesses, consolidated net sales were up 30 percent from the third quarter of 2014. This growth reflected sales at RBI, a strategic acquisition that we completed in the second quarter. Organic sales were down 5 percent year-over-year, as ongoing soft demand in the Industrial and Infrastructure Products segment more than offset continued growth in our postal storage and roofing-related businesses in the Residential Products segment.”
“In addition to pursuing acquisitions as a strategic accelerator, our value creation strategy includes a strong focus on operational improvement in areas such as overhead reduction, strategic pricing, facilities consolidation and increased efficiency across the business,” Heard said. “As a result of these initiatives, our third-quarter adjusted EPS grew 67 percent year-over-year. Thirteen percentage points of this EPS improvement was generated by our base businesses despite the decline in organic sales, with the balance of 54 percentage points coming from the accretive addition of RBI.”
Third-Quarter Segment Results
Separate from the performance of the two segments highlighted below, the Company’s third-quarter results benefited from its acquisition of RBI, which was completed on June 9, 2015. RBI has established itself during the past six years as North America’s fastest-growing provider of solar racking solutions. RBI was accretive to the Company’s third-quarter results, adding adjusted earnings of $0.16 per diluted share on revenues of $81.6 million.
Residential Products
Third-quarter 2015 net sales in Gibraltar’s Residential Products segment increased 4 percent to $127.0 million, compared with $122.1 million for the third quarter of 2014. Third-quarter 2015 adjusted operating margin increased 150 basis points year-over-year to 13.1 percent. Sales growth in this segment reflected strong demand for postal storage products driven by conversions to centralized delivery, partially offset by a modest decrease in demand for roofing-related products. The segment’s adjusted operating margin reflected the benefit of higher volume and improved operational efficiencies.
Industrial and Infrastructure Products
Third-quarter 2015 net sales in Gibraltar’s Industrial & Infrastructure Products segment decreased 14 percent to $96.4 million, compared with $112.0 million for the third quarter of 2014. Adjusted operating margin improved by 240 basis points year-over-year to 8.4 percent as the combination of improved manufacturing efficiencies, tighter management of raw material costs, and initial benefits from 80/20 simplification helped offset the effect of the considerable revenue decrease. Sales in this segment reflected lower shipment volumes to industrial markets and a 3 percent decrease due to the effect of weaker foreign currencies in its Canadian and European operations. Third-quarter industrial demand was lower year-over-year as domestic energy and mining activity declined, in part due to the effects of lower oil prices, while the transportation infrastructure market continued to reflect near-term uncertainty in federal funding programs.
Business Outlook
“We begin the fourth quarter fully focused on driving transformational change in our portfolio and in our financial results through the execution of our four-pillar strategy, which includes operational improvement, portfolio management, product innovation and acquisitions. In the near term, we are confident that Gibraltar will achieve the three key financial objectives we set for 2015: increasing adjusted earnings, making more efficient use of our capital, and delivering higher shareholder returns than we did in 2014,” Heard concluded.
Gibraltar is raising its guidance for revenues and earnings for full year 2015. Gibraltar now expects to report full-year 2015 total revenues in the range of $990 million to $1.0 billion, an increase of approximately 15% compared to $862 million in 2014. Organic net sales for 2015 in the Company’s base businesses are expected to be slightly lower, year-over-year, with growth in residential-related product lines offset by a decline in industrial-related revenues. From the June 9, 2015 date of acquisition, RBI is expected to generate revenues of $155 million to $160 million through December 31, 2015.
The anticipated profit expansion from operational improvement initiatives, as well as accretion from RBI, are expected to result in adjusted earnings for 2015 in the range of $0.90 to $0.95 per diluted share, compared with $0.47 per diluted share in 2014. This range includes non-GAAP adjusted earnings accretion from RBI in the range of $0.24 to $0.26 per diluted share, excluding purchase accounting and transaction expenses.
For the fourth quarter of 2015, revenues and adjusted EPS are expected to substantially increase compared with the fourth quarter of 2014, benefiting from the accretive income from the RBI acquisition and other profit improvement initiatives.
2
Third-Quarter Conference Call Details
Gibraltar has scheduled a conference call today starting at 9:00 a.m. ET to review its results for the third quarter of 2015. Interested parties may access the call by dialing (877) 407-5790 or (201) 689-8328. The presentation slides that will be discussed in the conference call are expected to be available this morning, prior to the start of the call. The slides may be downloaded from the Gibraltar website: http://www.gibraltar1.com. A webcast replay of the conference call and a copy of the transcript will be available on the website following the call.
About Gibraltar
Gibraltar Industries is a leading manufacturer and distributor of building products for the industrial, infrastructure and residential markets. With a four-pillar strategy focused on operational improvement, product innovation, acquisitions and portfolio management, Gibraltar’s mission is to drive best-in-class performance. Gibraltar serves customers worldwide through facilities in the United States, Canada, England, Germany, China, and Japan. Comprehensive information about Gibraltar can be found on its website at http://www.gibraltar1.com.
Safe Harbor Statement
Information contained in this news release, other than historical information, contains forward-looking statements and is subject to a number of risk factors, uncertainties, and assumptions. Risk factors that could affect these statements include, but are not limited to, the following: the availability of raw materials and the effects of changing raw material prices on the Company’s results of operations; energy prices and usage; changing demand for the Company’s products and services; changes in the liquidity of the capital and credit markets; risks associated with the integration and performance of acquisitions; and changes in interest and tax rates. In addition, such forward-looking statements could also be affected by general industry and market conditions, as well as general economic and political conditions. 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.
Non-GAAP Financial Data
To supplement Gibraltar’s consolidated financial statements presented on a GAAP basis, Gibraltar also presented certain adjusted financial data in this news release. Adjusted financial data excluded special charges consisting of gains / losses on sales of property, restructuring primarily associated with the closing and consolidation of our facilities, acquisition-related items, and senior leadership transition costs. These adjustments are shown in the non-GAAP reconciliation of adjusted operating results excluding special charges provided in the 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 our ongoing business operations. These adjusted measures should not be viewed as a substitute for our GAAP results, and may be different than adjusted measures used by other companies.
Next Earnings Announcement
Gibraltar expects to release its financial results for the three month period ending December 31, 2015, on Thursday, February 18, 2016, and hold its earnings conference call later that morning, starting at 9:00 a.m. ET.
Contact:
Kenneth Smith
Chief Financial Officer
716.826.6500 ext. 3217
kwsmith@gibraltar1.com
3
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net Sales | $ | 304,994 | $ | 234,101 | $ | 758,780 | $ | 660,093 | |||||||
Cost of sales | 243,598 | 192,523 | 623,350 | 548,528 | |||||||||||
Gross profit | 61,396 | 41,578 | 135,430 | 111,565 | |||||||||||
Selling, general, and administrative expense | 38,002 | 23,186 | 91,865 | 78,167 | |||||||||||
Income from operations | 23,394 | 18,392 | 43,565 | 33,398 | |||||||||||
Interest expense | 3,878 | 3,657 | 11,389 | 10,988 | |||||||||||
Other income | (1,780 | ) | (664 | ) | (4,238 | ) | (172 | ) | |||||||
Income before taxes | 21,296 | 15,399 | 36,414 | 22,582 | |||||||||||
Provision for income taxes | 7,664 | 5,828 | 13,158 | 8,666 | |||||||||||
Income from continuing operations | 13,632 | 9,571 | 23,256 | 13,916 | |||||||||||
Discontinued operations: | |||||||||||||||
Loss before taxes | — | (51 | ) | (44 | ) | (51 | ) | ||||||||
Benefit of income taxes | — | (20 | ) | (16 | ) | (20 | ) | ||||||||
Loss from discontinued operations | — | (31 | ) | (28 | ) | (31 | ) | ||||||||
Net income | $ | 13,632 | $ | 9,540 | $ | 23,228 | $ | 13,885 | |||||||
Net earnings per share – Basic: | |||||||||||||||
Income from continuing operations | $ | 0.44 | $ | 0.31 | $ | 0.74 | $ | 0.45 | |||||||
Loss from discontinued operations | — | (0.01 | ) | — | (0.01 | ) | |||||||||
Net income | $ | 0.44 | $ | 0.30 | $ | 0.74 | $ | 0.44 | |||||||
Weighted average shares outstanding – Basic | 31,242 | 31,083 | 31,214 | 31,046 | |||||||||||
Net earnings per share – Diluted: | |||||||||||||||
Income from continuing operations | $ | 0.43 | $ | 0.31 | $ | 0.74 | $ | 0.45 | |||||||
Loss from discontinued operations | — | (0.01 | ) | — | (0.01 | ) | |||||||||
Net income | $ | 0.43 | $ | 0.30 | $ | 0.74 | $ | 0.44 | |||||||
Weighted average shares outstanding – Diluted | 31,558 | 31,298 | 31,479 | 31,256 | |||||||||||
4
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
September 30, 2015 | December 31, 2014 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 43,331 | $ | 110,610 | |||
Accounts receivable, net | 177,117 | 101,141 | |||||
Inventories | 126,006 | 128,743 | |||||
Other current assets | 24,514 | 19,937 | |||||
Total current assets | 370,968 | 360,431 | |||||
Property, plant, and equipment, net | 121,218 | 129,575 | |||||
Goodwill | 291,940 | 236,044 | |||||
Acquired intangibles | 131,872 | 82,215 | |||||
Other assets | 4,199 | 2,206 | |||||
$ | 920,197 | $ | 810,471 | ||||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 104,244 | $ | 81,246 | |||
Accrued expenses | 69,576 | 52,439 | |||||
Billings in excess of cost | 22,206 | — | |||||
Current maturities of long-term debt | 400 | 400 | |||||
Total current liabilities | 196,426 | 134,085 | |||||
Long-term debt | 220,814 | 209,511 | |||||
Deferred income taxes | 54,880 | 49,772 | |||||
Other non-current liabilities | 39,696 | 29,874 | |||||
Shareholders’ equity: | |||||||
Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding | — | — | |||||
Common stock, $0.01 par value; authorized 50,000 shares; 31,478 and 31,342 shares issued in 2015 and 2014 | 315 | 313 | |||||
Additional paid-in capital | 250,129 | 247,232 | |||||
Retained earnings | 177,853 | 154,625 | |||||
Accumulated other comprehensive loss | (13,958 | ) | (9,551 | ) | |||
Cost of 464 and 429 common shares held in treasury in 2015 and 2014 | (5,958 | ) | (5,390 | ) | |||
Total shareholders’ equity | 408,381 | 387,229 | |||||
$ | 920,197 | $ | 810,471 | ||||
5
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended September 30, | |||||||
2015 | 2014 | ||||||
Cash Flows from Operating Activities | |||||||
Net income | $ | 23,228 | $ | 13,885 | |||
Loss from discontinued operations | (28 | ) | (31 | ) | |||
Income from continuing operations | 23,256 | 13,916 | |||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 22,657 | 19,452 | |||||
Stock compensation expense | 2,675 | 2,379 | |||||
Net gain on sale of assets | (7,903 | ) | — | ||||
Other non-cash adjustments | 3,351 | (1,579 | ) | ||||
Non-cash charges to interest expense | 13 | 772 | |||||
(Benefit of) provision for deferred income taxes | (724 | ) | 77 | ||||
Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||||||
Accounts receivable | (28,085 | ) | (33,031 | ) | |||
Inventories | 7,562 | (5,526 | ) | ||||
Other current assets and other assets | (529 | ) | (1,202 | ) | |||
Accounts payable | 9,845 | 22,260 | |||||
Accrued expenses and other non-current liabilities | 12,370 | 667 | |||||
Net cash provided by operating activities of continuing operations | 44,488 | 18,185 | |||||
Net cash used in operating activities of discontinued operations | — | (40 | ) | ||||
Net cash provided by operating activities | 44,488 | 18,145 | |||||
Cash Flows from Investing Activities | |||||||
Cash paid for acquisitions, net of cash acquired | (140,620 | ) | — | ||||
Net proceeds from sale of property and equipment | 26,392 | 5,958 | |||||
Purchases of property, plant, and equipment | (6,822 | ) | (19,180 | ) | |||
Other investing activities | 1,154 | 121 | |||||
Net cash used in investing activities | (119,896 | ) | (13,101 | ) | |||
Cash Flows from Financing Activities | |||||||
Proceeds from long-term debt | 58,192 | — | |||||
Long-term debt payments | (47,592 | ) | (407 | ) | |||
Purchase of treasury stock at market prices | (568 | ) | (505 | ) | |||
Net proceeds from issuance of common stock | 237 | 508 | |||||
Excess tax benefit from stock compensation | — | 99 | |||||
Net cash provided by (used in) financing activities | 10,269 | (305 | ) | ||||
Effect of exchange rate changes on cash | (2,140 | ) | (765 | ) | |||
Net (decrease) increase in cash and cash equivalents | (67,279 | ) | 3,974 | ||||
Cash and cash equivalents at beginning of year | 110,610 | 97,039 | |||||
Cash and cash equivalents at end of period | $ | 43,331 | $ | 101,013 | |||
6
GIBRALTAR INDUSTRIES, INC.
Non-GAAP Reconciliation of Adjusted Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended September 30, 2015 | ||||||||||||||||||||
As Reported In GAAP Statements | Acquisition Related Items | Restructuring Costs | Senior Leadership Transition Costs | Adjusted Statement of Operations | ||||||||||||||||
Net Sales | ||||||||||||||||||||
Residential Products | $ | 126,995 | $ | — | $ | — | $ | — | $ | 126,995 | ||||||||||
Industrial & Infrastructure Products | 96,636 | — | — | — | 96,636 | |||||||||||||||
Less Inter-Segment Sales | (286 | ) | — | — | — | (286 | ) | |||||||||||||
96,350 | — | — | — | 96,350 | ||||||||||||||||
RBI | 81,649 | — | — | — | 81,649 | |||||||||||||||
Consolidated sales | 304,994 | — | — | — | 304,994 | |||||||||||||||
Income from operations | ||||||||||||||||||||
Residential Products | 15,879 | — | 757 | — | 16,636 | |||||||||||||||
Industrial & Infrastructure Products | 8,083 | — | 8 | — | 8,091 | |||||||||||||||
RBI | 5,017 | 2,746 | — | — | 7,763 | |||||||||||||||
Segment Income | 28,979 | 2,746 | 765 | — | 32,490 | |||||||||||||||
Unallocated corporate expense | (5,585 | ) | 208 | — | (308 | ) | (5,685 | ) | ||||||||||||
Consolidated income from operations | 23,394 | 2,954 | 765 | (308 | ) | 26,805 | ||||||||||||||
Interest expense | 3,878 | — | — | — | 3,878 | |||||||||||||||
Other income | (1,780 | ) | — | — | — | (1,780 | ) | |||||||||||||
Income before income taxes | 21,296 | 2,954 | 765 | (308 | ) | 24,707 | ||||||||||||||
Provision for income taxes | 7,664 | 1,125 | 305 | (104 | ) | 8,990 | ||||||||||||||
Income from continuing operations | $ | 13,632 | $ | 1,829 | $ | 460 | $ | (204 | ) | $ | 15,717 | |||||||||
Income from continuing operations per share – diluted | $ | 0.43 | $ | 0.06 | $ | 0.01 | $ | — | $ | 0.50 | ||||||||||
Operating margin | ||||||||||||||||||||
Residential Products | 12.5 | % | — | % | 0.6 | % | — | % | 13.1 | % | ||||||||||
Industrial & Infrastructure Products | 8.4 | % | — | % | — | % | — | % | 8.4 | % | ||||||||||
RBI | 6.1 | % | 3.4 | % | — | % | — | % | 9.5 | % | ||||||||||
Segments Margin | 9.5 | % | 0.9 | % | 0.3 | % | — | % | 10.7 | % | ||||||||||
Consolidated | 7.7 | % | 1.0 | % | 0.3 | % | (0.1 | )% | 8.8 | % | ||||||||||
7
GIBRALTAR INDUSTRIES, INC.
Non-GAAP Reconciliation of Adjusted Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended September 30, 2014 | ||||||||||||||||
As Reported In GAAP Statements | Acquisition Related Items | Restructuring Costs | Adjusted Statement of Operations | |||||||||||||
Net Sales | ||||||||||||||||
Residential Products | $ | 122,100 | $ | — | $ | — | $ | 122,100 | ||||||||
Industrial & Infrastructure Products | 112,329 | — | — | 112,329 | ||||||||||||
Less Inter-Segment Sales | (328 | ) | — | — | (328 | ) | ||||||||||
112,001 | — | — | 112,001 | |||||||||||||
Consolidated sales | 234,101 | — | — | 234,101 | ||||||||||||
Income from operations | ||||||||||||||||
Residential Products | 13,694 | — | 487 | 14,181 | ||||||||||||
Industrial & Infrastructure Products | 6,574 | — | 175 | 6,749 | ||||||||||||
Segment Income | 20,268 | — | 662 | 20,930 | ||||||||||||
Unallocated corporate expense | (1,876 | ) | (781 | ) | — | (2,657 | ) | |||||||||
Consolidated income from operations | 18,392 | (781 | ) | 662 | 18,273 | |||||||||||
Interest expense | 3,657 | — | — | 3,657 | ||||||||||||
Other income | (664 | ) | — | — | (664 | ) | ||||||||||
Income before income taxes | 15,399 | (781 | ) | 662 | 15,280 | |||||||||||
Provision for income taxes | 5,828 | (290 | ) | 257 | 5,795 | |||||||||||
Income from continuing operations | $ | 9,571 | $ | (491 | ) | $ | 405 | $ | 9,485 | |||||||
Income from continuing operations per share – diluted | $ | 0.31 | $ | (0.02 | ) | $ | 0.01 | $ | 0.30 | |||||||
Operating margin | ||||||||||||||||
Residential Products | 11.2 | % | — | % | 0.4 | % | 11.6 | % | ||||||||
Industrial & Infrastructure Products | 5.9 | % | — | % | 0.2 | % | 6.0 | % | ||||||||
Segments Margin | 8.7 | % | — | % | 0.3 | % | 8.9 | % | ||||||||
Consolidated | 7.9 | % | (0.3 | )% | 0.3 | % | 7.8 | % | ||||||||
8
GIBRALTAR INDUSTRIES, INC.
Non-GAAP Reconciliation of Adjusted Statements of Operations
(in thousands, except per share data)
(Unaudited)
Nine Months Ended September 30, 2015 | ||||||||||||||||||||||||
As Reported In GAAP Statements | Acquisition Related Items | Restructuring Costs | Senior Leadership Transition Costs | Gain on Sale of Facility | Adjusted Statement of Operations | |||||||||||||||||||
Net Sales | ||||||||||||||||||||||||
Residential Products | $ | 368,459 | $ | — | $ | — | $ | — | $ | — | $ | 368,459 | ||||||||||||
Industrial & Infrastructure Products | 292,821 | — | — | — | — | 292,821 | ||||||||||||||||||
Less Inter-Segment Sales | (1,233 | ) | — | — | — | — | (1,233 | ) | ||||||||||||||||
291,588 | — | — | — | — | 291,588 | |||||||||||||||||||
RBI | 98,733 | — | — | — | — | 98,733 | ||||||||||||||||||
Consolidated sales | 758,780 | — | — | — | — | 758,780 | ||||||||||||||||||
Income from operations | ||||||||||||||||||||||||
Residential Products | 39,922 | — | 4,227 | — | (6,799 | ) | 37,350 | |||||||||||||||||
Industrial & Infrastructure Products | 15,445 | — | 49 | 382 | — | 15,876 | ||||||||||||||||||
RBI | 6,016 | 3,648 | — | — | — | 9,664 | ||||||||||||||||||
Segment Income | 61,383 | 3,648 | 4,276 | 382 | (6,799 | ) | 62,890 | |||||||||||||||||
Unallocated corporate expense | (17,818 | ) | 679 | — | 1,251 | — | (15,888 | ) | ||||||||||||||||
Consolidated income from operations | 43,565 | 4,327 | 4,276 | 1,633 | (6,799 | ) | 47,002 | |||||||||||||||||
Interest expense | 11,389 | — | — | — | — | 11,389 | ||||||||||||||||||
Other income | (4,238 | ) | — | — | — | — | (4,238 | ) | ||||||||||||||||
Income before income taxes | 36,414 | 4,327 | 4,276 | 1,633 | (6,799 | ) | 39,851 | |||||||||||||||||
Provision for income taxes | 13,158 | 1,638 | 1,619 | 619 | (2,526 | ) | 14,508 | |||||||||||||||||
Income from continuing operations | $ | 23,256 | $ | 2,689 | $ | 2,657 | $ | 1,014 | $ | (4,273 | ) | $ | 25,343 | |||||||||||
Income from continuing operations per share – diluted | $ | 0.74 | $ | 0.09 | $ | 0.08 | $ | 0.04 | $ | (0.14 | ) | $ | 0.81 | |||||||||||
Operating margin | ||||||||||||||||||||||||
Residential Products | 10.8 | % | — | % | 1.1 | % | — | % | (1.8 | )% | 10.1 | % | ||||||||||||
Industrial & Infrastructure Products | 5.3 | % | — | % | — | % | 0.1 | % | — | % | 5.4 | % | ||||||||||||
RBI | 6.1 | % | 3.7 | % | — | % | — | % | — | % | 9.8 | % | ||||||||||||
Segments Margin | 8.1 | % | 0.5 | % | 0.6 | % | 0.1 | % | (0.9 | )% | 8.3 | % | ||||||||||||
Consolidated | 5.7 | % | 0.6 | % | 0.6 | % | 0.2 | % | (0.9 | )% | 6.2 | % | ||||||||||||
9
GIBRALTAR INDUSTRIES, INC.
Non-GAAP Reconciliation of Adjusted Statements of Operations
(in thousands, except per share data)
(Unaudited)
Nine Months Ended September 30, 2014 | ||||||||||||||||
As Reported In GAAP Statements | Acquisition Related Items | Restructuring Costs | Adjusted Statement of Operations | |||||||||||||
Net Sales | ||||||||||||||||
Residential Products | $ | 326,483 | $ | — | $ | — | $ | 326,483 | ||||||||
Industrial & Infrastructure Products | 334,613 | — | — | 334,613 | ||||||||||||
Less Inter-Segment Sales | (1,003 | ) | — | — | (1,003 | ) | ||||||||||
333,610 | — | — | 333,610 | |||||||||||||
Consolidated sales | 660,093 | — | — | 660,093 | ||||||||||||
Income from operations | ||||||||||||||||
Residential Products | 26,740 | 206 | 632 | 27,578 | ||||||||||||
Industrial & Infrastructure Products | 15,727 | — | 634 | 16,361 | ||||||||||||
Segment Income | 42,467 | 206 | 1,266 | 43,939 | ||||||||||||
Unallocated corporate expense | (9,069 | ) | (1,521 | ) | — | (10,590 | ) | |||||||||
Consolidated income from operations | 33,398 | (1,315 | ) | 1,266 | 33,349 | |||||||||||
Interest expense | 10,988 | — | — | 10,988 | ||||||||||||
Other income | (172 | ) | — | — | (172 | ) | ||||||||||
Income before income taxes | 22,582 | (1,315 | ) | 1,266 | 22,533 | |||||||||||
Provision for income taxes | 8,666 | (484 | ) | 482 | 8,664 | |||||||||||
Income from continuing operations | $ | 13,916 | $ | (831 | ) | $ | 784 | $ | 13,869 | |||||||
Income from continuing operations per share – diluted | $ | 0.45 | $ | (0.04 | ) | $ | 0.03 | $ | 0.44 | |||||||
Operating margin | ||||||||||||||||
Residential Products | 8.2 | % | 0.1 | % | 0.2 | % | 8.4 | % | ||||||||
Industrial & Infrastructure Products | 4.7 | % | — | % | 0.2 | % | 4.9 | % | ||||||||
Segment Margin | 6.4 | % | — | % | 0.2 | % | 6.7 | % | ||||||||
Consolidated | 5.1 | % | (0.2 | )% | 0.2 | % | 5.1 | % | ||||||||
10