UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 27, 2017 (July 27, 2017)
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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
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 July 27, 2017, Gibraltar Industries, Inc. (the “Company”) issued a news release and held a conference call regarding results for the three and six months ended June 30, 2017. A copy of the news release (the “Release”) is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The Company references adjusted financial information in both the Release and the conference call. A reconciliation of these adjusted financial measures is contained in the Release. The information in this Form 8-K under the captions Items 2.02 and 7.01 and Item 9.01, including the Release, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, unless the Company specifically incorporates it by reference in a document filed under the Securities Act or the Exchange Act.
Item 9.01 Financial Statements and Exhibits
(a)-(c) Not Applicable
(d) Exhibits:
Exhibit No. | Description | |
99.1 | Earnings Release issued by Gibraltar Industries, Inc. on July 27, 2017 | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GIBRALTAR INDUSTRIES, INC. | ||||
Date: | July 27, 2017 | |||
By: | /s/ Jeffrey J. Watorek | |||
Jeffrey J. Watorek | ||||
Vice President, Treasurer and Secretary | ||||
Gibraltar Reports Second-Quarter 2017 Financial Results
Exceeds Q2 Earnings Guidance, Achieving GAAP EPS of $0.41 and Adjusted EPS of $0.43
Maintains Guidance for Full-Year 2017
Buffalo, New York, July 27, 2017 - Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and distributor of building products for industrial, infrastructure, residential, and renewable energy and conservation markets, today reported its financial results for the three- and six-month period ended June 30, 2017. All financial metrics in this release reflect only the Company’s continuing operations unless otherwise noted.
Second-quarter Consolidated Results
Gibraltar reported the following consolidated results:
Three Months Ended June 30, | |||||||||||||||||
Dollars in millions, except EPS | GAAP | Adjusted | |||||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||||
Net Sales | $ | 248 | $ | 266 | (7 | )% | $ | 248 | $ | 266 | (7 | )% | |||||
Net Income | $ | 13.2 | $ | 18.6 | (29 | )% | $ | 14.0 | $ | 16.4 | (15 | )% | |||||
Diluted EPS | $ | 0.41 | $ | 0.58 | (29 | )% | $ | 0.43 | $ | 0.51 | (16 | )% | |||||
The Company reported second-quarter 2017 net sales of $248 million, essentially in line with its expectations as noted in its first-quarter earnings release. The 7 percent year-over-year sales decrease primarily reflects Gibraltar’s exit of the European industrial business, U.S. bar grating product line and the European residential solar racking business in 2016. GAAP and adjusted earnings exceeded Company guidance due to the strong performance of the Residential Products business.
The adjusted amounts for the second quarter 2017 and 2016 remove special items from both periods, as described in the appended reconciliation of adjusted financial measures.
Management Comments
“Gibraltar delivered another quarter of solid results, exceeding our earnings guidance,” said President and CEO Frank Heard. “Revenues were essentially in-line with our expectations as strong sales in our Residential segment and the continued benefits of our four-pillar value creation strategy partially offset expected headwinds, including lower backlog in our Industrial & Infrastructure segment as well as higher raw material costs.
“We continued to advance our four-pillar strategy, with several notable achievements: delivering 150 basis points of operating margin improvement through our 80/20 operational efficiency initiatives, improving our competitive position and financial results by effectively integrating our recent Package Concierge and Nexus acquisitions, and advancing our innovation strategy with new product development initiatives that are underway across all of our segments.”
1
Second-quarter Segment Results
Residential Products
For the second quarter, the Residential Products segment reported:
Three Months Ended June 30, | |||||||||||||||
Dollars in millions | GAAP | Adjusted | |||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||
Net Sales | $ | 127 | $ | 120 | 6% | $ | 127 | $ | 120 | 6% | |||||
Operating Margin | 17.7 | % | 17.3 | % | 40 bps | 17.8 | % | 17.5 | % | 30 bps | |||||
The 6 percent increase in second-quarter 2017 net sales in Gibraltar’s Residential Products segment reflects the continued improvement in the repair and remodel and new housing construction markets, growing demand for the Company’s commercial package solutions, and the contribution of the Package Concierge acquisition.
The segment’s GAAP and adjusted operating margin reflect the benefit of increased revenues as well as operational efficiencies stemming from 80/20 initiatives. The adjusted operating margin for the second quarter of 2017 and 2016 removes the special charges for restructuring initiatives under the 80/20 program from both periods.
Industrial & Infrastructure Products
For the second quarter, the Industrial & Infrastructure Products segment reported:
Three Months Ended June 30, | |||||||||||||||
Dollars in millions | GAAP | Adjusted | |||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||
Net Sales | $ | 58 | $ | 81 | (29)% | $ | 58 | $ | 81 | (29)% | |||||
Operating Margin | 5.9 | % | 7.6 | % | (170) bps | 3.5 | % | 8.7 | % | (520) bps | |||||
As expected, second-quarter 2017 net sales in Gibraltar’s Industrial & Infrastructure Products segment were down, with 80 percent of the decline driven by the 2016 divestiture of the European industrial operations and the US bar grating product line, with the remaining decline driven by lower activity in the infrastructure marketplace. Backlog for the segment increased on a sequential basis during the second quarter. The Company expects backlog improvement to continue throughout the second half of 2017, driven, in part, by the strengthening infrastructure market.
GAAP and adjusted operating margins were affected by higher raw material costs and lower volumes in the infrastructure market. This segment’s adjusted operating margin for the second quarters of 2017 and 2016 removes the special charges for portfolio management activities and restructuring initiatives under the 80/20 program. During the quarter, this segment continued to implement 80/20 simplification initiatives, which are expected to benefit margins during the second half of 2017.
2
Renewable Energy & Conservation
For the second quarter, the Renewable Energy & Conservation segment reported:
Three Months Ended June 30, | |||||||||||||||
Dollars in millions | GAAP | Adjusted | |||||||||||||
2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||||||
Net Sales | $ | 63 | $ | 65 | (3)% | $ | 63 | $ | 65 | (3)% | |||||
Operating Margin | 5.6 | % | 15.9 | % | (1030) bps | 8.1 | % | 15.9 | % | (780) bps | |||||
Segment revenues were down modestly year over year due to the exit of the European solar market, and continued softness in international markets, partially offset by the Nexus acquisition. Segment backlog increased from the prior year and sequentially compared with the first quarter of 2017.
The second-quarter 2017 GAAP and adjusted operating margin decrease reflects lower volume, planned price concessions, higher material costs and certain field installation issues. This segment’s adjusted operating margin for the second quarter 2017 removes the special charges for portfolio management activities related to the divestiture of the Company’s European residential solar racking business. The Company expects better volume leverage and improved price/material cost alignment as it moves into the seasonally strongest half of the year.
Business Outlook
“Looking toward the second half of 2017, we continue to expect generally favorable market conditions for each of our segments, increased bidding activity and continued backlog growth in both our Industrial & Infrastructure and Renewable Energy & Conservation segments, as well as increased revenues from our new product development initiatives,” said Heard. “As we head into our seasonally strongest quarter, we are maintaining our full year guidance.
“For the second half of 2017 our financial priorities will be to accelerate sales through innovative products, seek value-added acquisitions in attractive end markets, and continue to advance our 80/20 initiatives,” concluded Heard.
The Company is maintaining its full-year revenue guidance in the range of $970 million and $980 million. The Company expects GAAP EPS to be between $1.37 and $1.50 per diluted share, or $1.57 to $1.70 on an adjusted basis. In 2016, GAAP EPS was $1.05, or $1.67 on an adjusted basis. While year-over-year adjusted earnings are projected to be flat, the Company continues to expect increasing ROIC and liquidity.
For the third quarter of 2017, the Company is expecting revenue in the range of $275 million to $280 million, and GAAP EPS to be between $0.51 and $0.58 per diluted share, or $0.58 to $0.65 per diluted share on an adjusted basis.
FY 2017 Guidance | ||||||||||||||||||||||||
Gibraltar Industries | ||||||||||||||||||||||||
Dollars in millions, except EPS | Operating | Income | Net | Diluted Earnings | ||||||||||||||||||||
Income | Margin | Taxes | Income | Per Share | ||||||||||||||||||||
GAAP Measures | $ | 85-91 | 8.8 - 9.3% | $ | 25-28 | $ | 44-48 | $ | 1.37-1.50 | |||||||||||||||
Restructuring Costs | 10 | 1.0 | % | 4 | 7 | 0.20 | ||||||||||||||||||
Adjusted Measures | $ | 95-101 | 9.8 - 10.3% | $ | 29-32 | $ | 51-55 | $ | 1.57-1.70 | |||||||||||||||
3
Second-quarter Conference Call Details
Gibraltar has scheduled a conference call today starting at 9:00 a.m. ET to review its results for the second quarter of 2017. Interested parties may access the call by dialing (877) 407-5790 or (201) 689-8328. The presentation slides that will be discussed in the conference call are expected to be available this morning, prior to the start of the call. The slides may be downloaded from the Gibraltar website: www.gibraltar1.com. A webcast replay of the conference call and a copy of the transcript will be available on the website following the call.
About Gibraltar
Gibraltar Industries is a leading manufacturer and distributor of building products for industrial, infrastructure, residential, and renewable energy and conservation 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 primarily throughout North America and to a lesser extent Asia. Comprehensive information about Gibraltar can be found on its website at www.gibraltar1.com.
Safe Harbor Statement
Information contained in this news release, other than historical information, contains forward-looking statements and is subject to a number of risk factors, uncertainties, and assumptions. Risk factors that could affect these statements include, but are not limited to, the following: the availability of raw materials and the effects of changing raw material prices on the Company’s results of operations; energy prices and usage; changing demand for the Company’s products and services; changes in the liquidity of the capital and credit markets; risks associated with the integration and performance of acquisitions; and changes in interest and tax rates. In addition, such forward-looking statements could also be affected by general industry and market conditions, as well as 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 assets, restructuring primarily associated with the 80/20 simplification initiative, acquisition-related items, and other reclassifications. These adjustments are shown in the non-GAAP reconciliation of adjusted financial measures excluding special charges provided in the supplemental financial schedules that accompany this news release. The Company believes that the presentation of results excluding special charges provides meaningful supplemental data to investors, as well as management, that are indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods as well as comparison with other companies. Special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations. These adjusted measures should not be viewed as a substitute for the Company’s GAAP results, and may be different than adjusted measures used by other companies.
Next Earnings Announcement
Gibraltar expects to release its financial results for the three-month and nine-month periods ending September 30, 2017, on Friday, November 3, 2017, and hold its earnings conference call later that morning, starting at 9:00 a.m. ET.
Contact:
Timothy Murphy
Chief Financial Officer
(716) 826-6500 ext. 3277
tfmurphy@gibraltar1.com
4
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net Sales | $ | 247,627 | $ | 265,738 | $ | 454,232 | $ | 503,409 | |||||||
Cost of sales | 185,802 | 196,895 | 343,152 | 380,416 | |||||||||||
Gross profit | 61,825 | 68,843 | 111,080 | 122,993 | |||||||||||
Selling, general, and administrative expense | 36,895 | 40,267 | 76,471 | 76,656 | |||||||||||
Income from operations | 24,930 | 28,576 | 34,609 | 46,337 | |||||||||||
Interest expense | 3,550 | 3,666 | 7,126 | 7,357 | |||||||||||
Other expense | 353 | 8,195 | 407 | 8,160 | |||||||||||
Income before taxes | 21,027 | 16,715 | 27,076 | 30,820 | |||||||||||
Provision for (benefit of) income taxes | 7,853 | (1,897 | ) | 9,906 | 3,179 | ||||||||||
Income from continuing operations | 13,174 | 18,612 | 17,170 | 27,641 | |||||||||||
Discontinued operations: | |||||||||||||||
Loss before taxes | (644 | ) | — | (644 | ) | — | |||||||||
Benefit of income taxes | (239 | ) | — | (239 | ) | — | |||||||||
Loss from discontinued operations | (405 | ) | — | (405 | ) | — | |||||||||
Net income | $ | 12,769 | $ | 18,612 | $ | 16,765 | $ | 27,641 | |||||||
Net earnings per share – Basic: | |||||||||||||||
Income from continuing operations | $ | 0.41 | $ | 0.59 | $ | 0.54 | $ | 0.88 | |||||||
Loss from discontinued operations | (0.01 | ) | — | (0.01 | ) | — | |||||||||
Net income | $ | 0.40 | $ | 0.59 | $ | 0.53 | $ | 0.88 | |||||||
Weighted average shares outstanding – Basic | 31,709 | 31,475 | 31,698 | 31,447 | |||||||||||
Net earnings per share – Diluted: | |||||||||||||||
Income from continuing operations | $ | 0.41 | $ | 0.58 | $ | 0.53 | $ | 0.87 | |||||||
Loss from discontinued operations | (0.01 | ) | — | (0.01 | ) | — | |||||||||
Net income | $ | 0.40 | $ | 0.58 | $ | 0.52 | $ | 0.87 | |||||||
Weighted average shares outstanding – Diluted | 32,183 | 32,007 | 32,219 | 31,916 | |||||||||||
5
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
June 30, 2017 | December 31, 2016 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 182,379 | $ | 170,177 | |||
Accounts receivable, net | 138,871 | 124,072 | |||||
Inventories | 86,065 | 89,612 | |||||
Other current assets | 8,351 | 7,336 | |||||
Total current assets | 415,666 | 391,197 | |||||
Property, plant, and equipment, net | 95,869 | 108,304 | |||||
Goodwill | 320,848 | 304,032 | |||||
Acquired intangibles | 110,325 | 110,790 | |||||
Other assets | 4,750 | 3,922 | |||||
$ | 947,458 | $ | 918,245 | ||||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 88,007 | $ | 69,944 | |||
Accrued expenses | 69,389 | 70,392 | |||||
Billings in excess of cost | 13,963 | 11,352 | |||||
Current maturities of long-term debt | 400 | 400 | |||||
Total current liabilities | 171,759 | 152,088 | |||||
Long-term debt | 209,229 | 209,237 | |||||
Deferred income taxes | 38,203 | 38,002 | |||||
Other non-current liabilities | 46,364 | 58,038 | |||||
Shareholders’ equity: | |||||||
Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding | — | — | |||||
Common stock, $0.01 par value; authorized 50,000 shares; 32,155 shares and 32,085 shares issued and outstanding in 2017 and 2016 | 321 | 320 | |||||
Additional paid-in capital | 267,601 | 264,418 | |||||
Retained earnings | 228,767 | 211,748 | |||||
Accumulated other comprehensive loss | (5,898 | ) | (7,721 | ) | |||
Cost of 554 and 530 common shares held in treasury in 2017 and 2016 | (8,888 | ) | (7,885 | ) | |||
Total shareholders’ equity | 481,903 | 460,880 | |||||
$ | 947,458 | $ | 918,245 | ||||
6
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Cash Flows from Operating Activities | |||||||
Net income | $ | 16,765 | $ | 27,641 | |||
Loss from discontinued operations | (405 | ) | — | ||||
Income from continuing operations | 17,170 | 27,641 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 11,006 | 11,856 | |||||
Stock compensation expense | 3,191 | 3,218 | |||||
Net gain on sale of assets | (39 | ) | (198 | ) | |||
Loss on sale of business | — | 8,533 | |||||
Exit activity (recoveries) costs, non-cash | (2,737 | ) | 1,074 | ||||
Provision for deferred income taxes | — | 196 | |||||
Other, net | 628 | (449 | ) | ||||
Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||||||
Accounts receivable | (14,446 | ) | 9,145 | ||||
Inventories | 2,245 | 4,988 | |||||
Other current assets and other assets | (2,174 | ) | (4,333 | ) | |||
Accounts payable | 16,962 | (2,427 | ) | ||||
Accrued expenses and other non-current liabilities | (10,086 | ) | (9,803 | ) | |||
Net cash provided by operating activities | 21,720 | 49,441 | |||||
Cash Flows from Investing Activities | |||||||
Cash paid for acquisitions, net of cash acquired | (18,494 | ) | (2,314 | ) | |||
Net proceeds from sale of property and equipment | 12,778 | 162 | |||||
Purchases of property, plant, and equipment | (3,274 | ) | (4,035 | ) | |||
Net proceeds from sale of business | — | 8,479 | |||||
Other, net | — | 1,118 | |||||
Net cash (used in) provided by investing activities | (8,990 | ) | 3,410 | ||||
Cash Flows from Financing Activities | |||||||
Long-term debt payments | (400 | ) | (400 | ) | |||
Payment of debt issuance costs | — | (54 | ) | ||||
Purchase of treasury stock at market prices | (1,003 | ) | (462 | ) | |||
Net proceeds from issuance of common stock | 247 | 2,057 | |||||
Net cash (used in) provided by financing activities | (1,156 | ) | 1,141 | ||||
Effect of exchange rate changes on cash | 628 | 1,264 | |||||
Net increase in cash and cash equivalents | 12,202 | 55,256 | |||||
Cash and cash equivalents at beginning of year | 170,177 | 68,858 | |||||
Cash and cash equivalents at end of period | $ | 182,379 | $ | 124,114 | |||
7
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended June 30, 2017 | ||||||||||||||||||||
As Reported In GAAP Statements | Acquisition & Restructuring Charges | Portfolio Management | Senior Leadership Transition Costs | Adjusted Financial Measures | ||||||||||||||||
Net Sales | ||||||||||||||||||||
Residential Products | $ | 127,252 | $ | — | $ | — | $ | — | $ | 127,252 | ||||||||||
Industrial & Infrastructure Products | 57,926 | — | — | — | 57,926 | |||||||||||||||
Less Inter-Segment Sales | (314 | ) | — | — | — | (314 | ) | |||||||||||||
57,612 | — | — | — | 57,612 | ||||||||||||||||
Renewable Energy & Conservation | 62,763 | — | — | — | 62,763 | |||||||||||||||
Consolidated sales | 247,627 | — | — | — | 247,627 | |||||||||||||||
Income from operations | ||||||||||||||||||||
Residential Products | 22,579 | 81 | — | — | 22,660 | |||||||||||||||
Industrial & Infrastructure Products | 3,397 | — | (1,379 | ) | — | 2,018 | ||||||||||||||
Renewable Energy & Conservation | 3,492 | — | 1,369 | 252 | 5,113 | |||||||||||||||
Segments income | 29,468 | 81 | (10 | ) | 252 | 29,791 | ||||||||||||||
Unallocated corporate expense | (4,538 | ) | 148 | — | 73 | (4,317 | ) | |||||||||||||
Consolidated income from operations | 24,930 | 229 | (10 | ) | 325 | 25,474 | ||||||||||||||
Interest expense | 3,550 | — | — | — | 3,550 | |||||||||||||||
Other expense | 353 | — | — | — | 353 | |||||||||||||||
Income before income taxes | 21,027 | 229 | (10 | ) | 325 | 21,571 | ||||||||||||||
Provision for income taxes | 7,853 | 86 | (479 | ) | 124 | 7,584 | ||||||||||||||
Income from continuing operations | $ | 13,174 | $ | 143 | $ | 469 | $ | 201 | $ | 13,987 | ||||||||||
Income from continuing operations per share – diluted | $ | 0.41 | $ | — | $ | 0.01 | $ | 0.01 | $ | 0.43 | ||||||||||
Operating margin | ||||||||||||||||||||
Residential Products | 17.7 | % | 0.1 | % | — | % | — | % | 17.8 | % | ||||||||||
Industrial & Infrastructure Products | 5.9 | % | — | % | (2.4 | )% | — | % | 3.5 | % | ||||||||||
Renewable Energy & Conservation | 5.6 | % | — | % | 2.2 | % | 0.4 | % | 8.1 | % | ||||||||||
Segments margin | 11.9 | % | — | % | — | % | 0.1 | % | 12.0 | % | ||||||||||
Consolidated | 10.1 | % | 0.1 | % | — | % | 0.1 | % | 10.3 | % | ||||||||||
8
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended June 30, 2016 | ||||||||||||||||
As Reported In GAAP Statements | Restructuring Charges | Portfolio Management | Adjusted Financial Measures | |||||||||||||
Net Sales | ||||||||||||||||
Residential Products | $ | 119,965 | $ | — | $ | — | $ | 119,965 | ||||||||
Industrial & Infrastructure Products | 81,380 | — | — | 81,380 | ||||||||||||
Less Inter-Segment Sales | (373 | ) | — | — | (373 | ) | ||||||||||
81,007 | — | — | 81,007 | |||||||||||||
Renewable Energy & Conservation | 64,766 | — | — | 64,766 | ||||||||||||
Consolidated sales | 265,738 | — | — | 265,738 | ||||||||||||
Income from operations | ||||||||||||||||
Residential Products | 20,725 | 258 | — | 20,983 | ||||||||||||
Industrial & Infrastructure Products | 6,190 | 851 | — | 7,041 | ||||||||||||
Renewable Energy & Conservation | 10,296 | — | — | 10,296 | ||||||||||||
Segments income | 37,211 | 1,109 | — | 38,320 | ||||||||||||
Unallocated corporate expense | (8,635 | ) | — | — | (8,635 | ) | ||||||||||
Consolidated income from operations | 28,576 | 1,109 | — | 29,685 | ||||||||||||
Interest expense | 3,666 | — | — | 3,666 | ||||||||||||
Other expense (income) | 8,195 | — | (8,533 | ) | (338 | ) | ||||||||||
Income before income taxes | 16,715 | 1,109 | 8,533 | 26,357 | ||||||||||||
(Benefit of) provision for income taxes | (1,897 | ) | 424 | 11,414 | 9,941 | |||||||||||
Net income | $ | 18,612 | $ | 685 | $ | (2,881 | ) | $ | 16,416 | |||||||
Net earnings per share – diluted | $ | 0.58 | $ | 0.02 | $ | (0.09 | ) | $ | 0.51 | |||||||
Operating margin | ||||||||||||||||
Residential Products | 17.3 | % | 0.2 | % | — | % | 17.5 | % | ||||||||
Industrial & Infrastructure Products | 7.6 | % | 1.1 | % | — | % | 8.7 | % | ||||||||
Renewable Energy & Conservation | 15.9 | % | — | % | — | % | 15.9 | % | ||||||||
Segments margin | 14.0 | % | 0.4 | % | — | % | 14.4 | % | ||||||||
Consolidated | 10.8 | % | 0.4 | % | — | % | 11.2 | % | ||||||||
9
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Six Months Ended June 30, 2017 | ||||||||||||||||||||
As Reported In GAAP Statements | Acquisition & Restructuring Charges | Senior Leadership Transition Costs | Portfolio Management | Adjusted Financial Measures | ||||||||||||||||
Net Sales | ||||||||||||||||||||
Residential Products | $ | 231,803 | — | — | — | $ | 231,803 | |||||||||||||
Industrial & Infrastructure Products | 108,644 | — | — | — | 108,644 | |||||||||||||||
Less Inter-Segment Sales | (770 | ) | — | — | — | (770 | ) | |||||||||||||
107,874 | — | — | — | 107,874 | ||||||||||||||||
Renewable Energy & Conservation | 114,555 | — | — | — | 114,555 | |||||||||||||||
Consolidated sales | 454,232 | — | — | — | 454,232 | |||||||||||||||
Income from operations | ||||||||||||||||||||
Residential Products | 38,220 | 245 | — | — | 38,465 | |||||||||||||||
Industrial & Infrastructure Products | 3,360 | — | — | 381 | 3,741 | |||||||||||||||
Renewable Energy & Conservation | 6,832 | — | 252 | 2,419 | 9,503 | |||||||||||||||
Segments income | 48,412 | 245 | 252 | 2,800 | 51,709 | |||||||||||||||
Unallocated corporate expense | (13,803 | ) | 278 | 420 | — | (13,105 | ) | |||||||||||||
Consolidated income from operations | 34,609 | 523 | 672 | 2,800 | 38,604 | |||||||||||||||
Interest expense | 7,126 | — | — | — | 7,126 | |||||||||||||||
Other expense | 407 | — | — | — | 407 | |||||||||||||||
Income before income taxes | 27,076 | 523 | 672 | 2,800 | 31,071 | |||||||||||||||
Provision for income taxes | 9,906 | 195 | 252 | 197 | 10,550 | |||||||||||||||
Income from continuing operations | $ | 17,170 | $ | 328 | $ | 420 | $ | 2,603 | $ | 20,521 | ||||||||||
Income from continuing operations per share – diluted | $ | 0.53 | $ | 0.01 | $ | 0.02 | $ | 0.08 | $ | 0.64 | ||||||||||
Operating margin | ||||||||||||||||||||
Residential Products | 16.5 | % | 0.1 | % | — | % | — | % | 16.6 | % | ||||||||||
Industrial & Infrastructure Products | 3.1 | % | — | % | — | % | 0.4 | % | 3.5 | % | ||||||||||
Renewable Energy & Conservation | 6.0 | % | — | % | 0.2 | % | 2.1 | % | 8.3 | % | ||||||||||
Segments margin | 10.7 | % | 0.1 | % | 0.1 | % | 0.6 | % | 11.4 | % | ||||||||||
Consolidated | 7.6 | % | 0.1 | % | 0.1 | % | 0.6 | % | 8.5 | % | ||||||||||
10
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Six Months Ended June 30, 2016 | ||||||||||||||||
As Reported In GAAP Statements | Restructuring Charges | Portfolio Management | Adjusted Financial Measures | |||||||||||||
Net Sales | ||||||||||||||||
Residential Products | $ | 220,112 | — | — | $ | 220,112 | ||||||||||
Industrial & Infrastructure Products | 161,397 | — | — | 161,397 | ||||||||||||
Less Inter-Segment Sales | (740 | ) | — | — | (740 | ) | ||||||||||
160,657 | — | — | 160,657 | |||||||||||||
Renewable Energy & Conservation | 122,640 | — | — | 122,640 | ||||||||||||
Consolidated sales | 503,409 | — | — | 503,409 | ||||||||||||
Income from operations | ||||||||||||||||
Residential Products | 32,956 | 1,276 | — | 34,232 | ||||||||||||
Industrial & Infrastructure Products | 9,516 | 1,531 | — | 11,047 | ||||||||||||
Renewable Energy & Conservation | 18,603 | — | — | 18,603 | ||||||||||||
Segments income | 61,075 | 2,807 | — | 63,882 | ||||||||||||
Unallocated corporate expense | (14,738 | ) | 31 | — | (14,707 | ) | ||||||||||
Consolidated income from operations | 46,337 | 2,838 | — | 49,175 | ||||||||||||
Interest expense | 7,357 | — | — | 7,357 | ||||||||||||
Other expense (income) | 8,160 | — | (8,533 | ) | (373 | ) | ||||||||||
Income before income taxes | 30,820 | 2,838 | 8,533 | 42,191 | ||||||||||||
Provision for income taxes | 3,179 | 1,055 | 11,414 | 15,648 | ||||||||||||
Net income | $ | 27,641 | $ | 1,783 | $ | (2,881 | ) | $ | 26,543 | |||||||
Net earnings per share – diluted | $ | 0.87 | $ | 0.05 | $ | (0.09 | ) | $ | 0.83 | |||||||
Operating margin | ||||||||||||||||
Residential Products | 15.0 | % | 0.6 | % | — | % | 15.6 | % | ||||||||
Industrial & Infrastructure Products | 5.9 | % | 1.0 | % | — | % | 6.9 | % | ||||||||
Renewable Energy & Conservation | 15.2 | % | — | % | — | % | 15.2 | % | ||||||||
Segments margin | 12.1 | % | 0.6 | % | — | % | 12.7 | % | ||||||||
Consolidated | 9.2 | % | 0.6 | % | — | % | 9.8 | % | ||||||||
11