Document


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) November 3, 2017 (November 3, 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 November 3, 2017, Gibraltar Industries, Inc. (the “Company”) issued a news release and held a conference call regarding results for the three and nine months ended September 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
 
Earnings Release issued by Gibraltar Industries, Inc. on November 3, 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:
November 3, 2017
 
 
 
By:
/s/ Jeffrey J. Watorek
 
 
 
Jeffrey J. Watorek
 
 
 
Vice President, Treasurer and Secretary


Exhibit


https://cdn.kscope.io/91ca792eb11b534a5c5694a1fc59120a-pressreleaseearningsq3a02.gif


Gibraltar Reports Third-Quarter 2017 Financial Results
Exceeds Q3 Earnings Guidance, Achieving GAAP EPS of $0.64 and Adjusted EPS of $0.67;
Revises Full Year Revenue and Narrows Earnings Guidance

Buffalo, New York, November 3, 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 nine-month periods ended September 30, 2017. All financial metrics in this release reflect only the Company’s continuing operations unless otherwise noted.
Third-quarter Consolidated Results
Gibraltar reported the following consolidated results:
 
Three Months Ended September 30,
Dollars in millions, except EPS
GAAP
 
Adjusted
 
2017
2016
% Change
 
2017
2016
% Change
Net Sales
$275
$273
1%
 
$275
$273
1%
Net Income
$20.6
$13.8
49%
 
$21.5
$17.6
22%
Diluted EPS
$0.64
$0.43
49%
 
$0.67
$0.55
22%

The Company reported third-quarter 2017 net sales of $275 million, attaining the lower end of the Company’s expectations of $275 million to $280 million as noted in its second-quarter earnings release. The 1 percent year-over-year sales increase was driven primarily by sales in the Residential and Renewable Energy & Conservation segments and the effect of its recent acquisitions, which offset the impact of the exit of the U.S. bar grating product line and its European residential solar racking business at the end of 2016, which provided $17 million in sales in the third quarter of 2016, as well as lower infrastructure activity. GAAP and adjusted earnings exceeded Company guidance due to the strong performance of the Residential Products business, improving margins in the Renewable Energy & Conservation space, and the benefit of lower corporate costs related to compensation plans.
The adjusted amounts for the third quarter 2017 and 2016 remove special items from both periods, as described in the appended reconciliation of adjusted financial measures.
Management Comments
“We delivered another quarter of solid results as we continue to build positive momentum at Gibraltar,” said President and CEO Frank Heard. “We exceeded our GAAP and adjusted earnings guidance, reporting a 49% increase in GAAP EPS and a 22% increase in adjusted EPS. Earnings growth outpaced the increase in sales, which were in line with guidance, as a result of the success of our value creation strategy.”
“During the quarter, we made excellent progress on our four-pillar strategy, as we achieved a number of notable accomplishments,” added Heard. “We delivered 190 basis points of margin improvement from 80/20 simplification

1




projects, our innovation efforts are resulting in new product development successes across Gibraltar’s businesses, and the integration of the Nexus and Package Concierge acquisitions are generating improved financial results and enhancing Gibraltar’s long-term competitive position.”

Third-quarter Segment Results

Residential Products
For the third quarter, the Residential Products segment reported:
 
Three Months Ended September 30,
Dollars in millions
GAAP
 
Adjusted
 
2017
2016
% Change
 
2017
2016
% Change
Net Sales
$130
$118
10%
 
$130
$118
10%
Operating Margin
18.4%
16.5%
190 bps
 
19.1%
17.2%
190 bps

The 10 percent increase in third-quarter 2017 net sales in Gibraltar’s Residential Products segment reflects 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.
Strong demand for electronic package lockers, as well as the benefit of 80/20 initiatives contributed to the segment’s GAAP and adjusted operating margin improvement. The adjusted operating margin for the third 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 third quarter, the Industrial & Infrastructure Products segment reported:
 
Three Months Ended September 30,
Dollars in millions
GAAP
 
Adjusted
 
2017
2016
% Change
 
2017
2016
% Change
Net Sales
$57
$73
(22)%
 
$57
$73
(22)%
Operating Margin
4.5%
2.6%
190 bps
 
5.1%
7.0%
(190) bps

Third-quarter 2017 revenues in Gibraltar’s Industrial & Infrastructure Products segment were down, with 94 percent of the decline driven by the 2016 divestiture of the US bar grating product line. The remaining decline reflects lower activity in the infrastructure marketplace. Backlog and bookings for the infrastructure business increased year over year and the Company expects continued backlog improvement for the remainder of 2017 as the infrastructure market recovers. The Company also expects new products in the industrial business to continue to gain traction during the fourth quarter of 2017.
GAAP and adjusted operating margins for the segment were affected by lower volumes and continue to reflect less favorable alignment of material costs to customer selling prices. GAAP operating margin in 2016 reflects restructuring charges. This segment’s adjusted operating margin for the third quarters of 2017 and 2016 removes the special charges for portfolio management activities and restructuring initiatives under the 80/20 program.

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

2




 
Three Months Ended September 30,
Dollars in millions
GAAP
 
Adjusted
 
2017
2016
% Change
 
2017
2016
% Change
Net Sales
$88
$82
7%
 
$88
$82
7%
Operating Margin
13.1%
20.0%
(690) bps
 
13.6%
20.0%
(640) bps

Renewable Energy and Conservation segment revenues were up 7 percent year over year due to the addition of the recently acquired Nexus business and an increase in the Company’s domestic markets, which offset a decline in international revenues and the exit of the European solar market. Segment backlog increased both sequentially and year over year on a proforma basis.
While improving significantly from the second-quarter 2017 and approaching its mid-teen target margin profile, the third-quarter 2017 GAAP and adjusted operating margin still reflects a less favorable alignment of material costs to customer selling prices. This segment’s adjusted operating margin for the third quarter 2017 removes the special charges for restructuring initiatives under the Company’s 80/20 program and portfolio management activities.
Business Outlook
“Looking ahead, we continue to expect generally favorable market conditions for each of our segments, and increased bidding activity and continued backlog growth in our Industrial & Infrastructure and Renewable Energy & Conservation segments. While we see reason for some caution in certain of our end markets, we are optimistic about the final quarter of the year and are narrowing full-year earnings guidance within our previous guidance range.
“For the fourth quarter of 2017 our priorities will be to accelerate new product development initiatives, seek value-added acquisitions in attractive end markets, and advance 80/20 projects. We expect that the execution of our five-year strategy and the continued success of these initiatives will build sustainable long-term value for our shareholders,” concluded Heard.
The Company is adjusting its full-year revenue guidance in the range of $960 million and $965 million. The Company is narrowing its full-year earnings guidance and expects GAAP EPS to be between $1.40 and $1.47 per diluted share, or $1.60 to $1.67 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 essentially flat, the Company continues to expect increasing return on invested capital and liquidity.
For the fourth quarter of 2017, the Company is expecting revenue in the range of $231 million to $236 million, and GAAP EPS to be between $0.23 and $0.30 per diluted share, or $0.29 to $0.36 per diluted share on an adjusted basis.

FY 2017 Guidance Reconciliation
 
 
 
 
 
 
 
 
 
Gibraltar Industries
 
 
Dollars in millions, except EPS
Operating
 
Income
 
Net
 
Diluted
Earnings
 
 
 
Income
 
Margin
 
Taxes
 
Income
 
Per Share
 
 
GAAP Measures
$
84-88
 
 
 
8.8-9.1%
 
 
$
24-25
 
 
$
46-48
 
 
$
1.40-1.47
 
Restructuring Costs
 
10
 
 
 
1.0%
 
 
4
 
 
 
6
 
 
 
0.20
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Measures
$
94-98
 
 
 
9.8-10.1%
 
 
$
28-29
 
 
$
52-54
 
 
$
1.60-1.67
 


3




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 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

4




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 full-year periods ending December 31, 2017, on Thursday, February 22, 2018, 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



5




GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2017
 
2016
 
2017
 
2016
Net Sales
$
274,574

 
$
272,734

 
$
728,806

 
$
776,143

Cost of sales
205,839

 
204,847

 
548,991

 
585,263

Gross profit
68,735

 
67,887

 
179,815

 
190,880

Selling, general, and administrative expense
33,042

 
41,365

 
109,513

 
118,021

Income from operations
35,693

 
26,522

 
70,302

 
72,859

Interest expense
3,486

 
3,625

 
10,612

 
10,982

Other expense
404

 
159

 
811

 
8,319

Income before taxes
31,803

 
22,738

 
58,879

 
53,558

Provision for income taxes
11,184

 
8,952

 
21,090

 
12,131

Income from continuing operations
20,619

 
13,786

 
37,789

 
41,427

Discontinued operations:
 
 
 
 
 
 
 
Loss before taxes

 

 
(644
)
 

Benefit of income taxes

 

 
(239
)
 

Loss from discontinued operations

 

 
(405
)
 

Net income
$
20,619

 
$
13,786

 
$
37,384

 
$
41,427

Net earnings per share – Basic:
 
 
 
 
 
 
 
Income from continuing operations
$
0.65

 
$
0.44

 
$
1.19

 
$
1.32

Loss from discontinued operations

 

 
(0.01
)
 

Net income
$
0.65

 
$
0.44

 
$
1.18

 
$
1.32

Weighted average shares outstanding – Basic
31,703

 
31,579

 
31,700

 
31,493

Net earnings per share – Diluted:
 
 
 
 
 
 
 
Income from continuing operations
$
0.64

 
$
0.43

 
$
1.17

 
$
1.29

Loss from discontinued operations

 

 
(0.01
)
 

Net income
$
0.64

 
$
0.43

 
$
1.16

 
$
1.29

Weighted average shares outstanding – Diluted
32,210

 
32,176

 
32,216

 
32,005


6




GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
 
September 30,
2017
 
December 31,
2016
 
(unaudited)
 
 
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
208,032

 
$
170,177

Accounts receivable, net
166,718

 
124,072

Inventories
85,156

 
89,612

Other current assets
8,195

 
7,336

Total current assets
468,101

 
391,197

Property, plant, and equipment, net
94,488

 
108,304

Goodwill
321,093

 
304,032

Acquired intangibles
107,943

 
110,790

Other assets
4,672

 
3,922

 
$
996,297

 
$
918,245

Liabilities and Shareholders’ Equity
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
96,181

 
$
69,944

Accrued expenses
83,264

 
70,392

Billings in excess of cost
18,234

 
11,352

Current maturities of long-term debt
400

 
400

Total current liabilities
198,079

 
152,088

Long-term debt
209,425

 
209,237

Deferred income taxes
38,162

 
38,002

Other non-current liabilities
45,200

 
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; 32,275 shares and 32,085 shares issued and outstanding in 2017 and 2016
322

 
320

Additional paid-in capital
269,880

 
264,418

Retained earnings
249,386

 
211,748

Accumulated other comprehensive loss
(4,290
)
 
(7,721
)
Cost of 588 and 530 common shares held in treasury in 2017 and 2016
(9,867
)
 
(7,885
)
Total shareholders’ equity
505,431

 
460,880

 
$
996,297

 
$
918,245


7




GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
Nine Months Ended 
 September 30,
 
2017
 
2016
Cash Flows from Operating Activities
 
 
 
Net income
$
37,384

 
$
41,427

Loss from discontinued operations
(405
)
 

Income from continuing operations
37,789

 
41,427

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
16,427

 
17,551

Stock compensation expense
5,069

 
4,666

Net gain on sale of assets
(139
)
 
(225
)
Loss on sale of business

 
8,763

Exit activity (recoveries) costs, non-cash
(1,931
)
 
3,876

(Benefit of) provision for deferred income taxes
(136
)
 
355

Other, net
1,411

 
735

Changes in operating assets and liabilities, excluding the effects of acquisitions:
 
 
 
Accounts receivable
(42,310
)
 
3,796

Inventories
2,016

 
9,738

Other current assets and other assets
(2,002
)
 
(1,901
)
Accounts payable
25,134

 
2,367

Accrued expenses and other non-current liabilities
7,503

 
11,038

Net cash provided by operating activities
48,831

 
102,186

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
12,935

 
249

Purchases of property, plant, and equipment
(5,152
)
 
(7,600
)
Net proceeds from sale of business

 
8,250

Other, net

 
1,118

Net cash used in investing activities
(10,711
)
 
(297
)
Cash Flows from Financing Activities
 
 
 
Long-term debt payments
(400
)
 
(400
)
Payment of debt issuance costs

 
(54
)
Purchase of treasury stock at market prices
(1,982
)
 
(1,178
)
Net proceeds from issuance of common stock
649

 
2,892

Net cash (used in) provided by financing activities
(1,733
)
 
1,260

Effect of exchange rate changes on cash
1,468

 
1,055

Net increase in cash and cash equivalents
37,855

 
104,204

Cash and cash equivalents at beginning of year
170,177

 
68,858

Cash and cash equivalents at end of period
$
208,032

 
$
173,062


8




GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
 
 
Three Months Ended 
 September 30, 2017
 
 
As
Reported
In GAAP Statements
 
Acquisition & Restructuring Charges
 
Portfolio Management
 
Senior Leadership Transition Costs
 
Adjusted Financial Measures
Net Sales
 
 
 
 
 
 
 
 
 
 
Residential Products
 
$
129,501

 
$

 
$

 
$

 
$
129,501

Industrial & Infrastructure Products
 
57,162

 

 

 

 
57,162

Less Inter-Segment Sales
 
(224
)
 

 

 

 
(224
)
 
 
56,938

 

 

 

 
56,938

Renewable Energy & Conservation
 
88,135

 

 

 

 
88,135

Consolidated sales
 
274,574

 



 

 
274,574

 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
 
 
 
 
 
 
 
 
 
Residential Products
 
23,764

 
1,008

 

 

 
24,772

Industrial & Infrastructure Products
 
2,554

 
(15
)
 
101

 
260

 
2,900

Renewable Energy & Conservation
 
11,549

 
534

 
(77
)
 

 
12,006

Segments income
 
37,867

 
1,527

 
24

 
260

 
39,678

Unallocated corporate expense
 
(2,174
)
 
47

 

 
(762
)
 
(2,889
)
Consolidated income from operations
 
35,693

 
1,574

 
24

 
(502
)
 
36,789

 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
3,486

 

 

 

 
3,486

Other expense
 
404

 

 

 

 
404

Income before income taxes
 
31,803

 
1,574

 
24

 
(502
)
 
32,899

Provision for income taxes
 
11,184

 
618

 
(267
)
 
(183
)
 
11,352

Income from continuing operations
 
$
20,619

 
$
956

 
$
291

 
$
(319
)
 
$
21,547

Income from continuing operations per share – diluted
 
$
0.64

 
$
0.03

 
$
0.01

 
$
(0.01
)
 
$
0.67

 
 
 
 
 
 
 
 
 
 
 
Operating margin
 
 
 
 
 
 
 
 
 
 
Residential Products
 
18.4
%
 
0.8
%
 
 %
 
 %
 
19.1
%
Industrial & Infrastructure Products
 
4.5
%
 
%
 
0.2
 %
 
0.5
 %
 
5.1
%
Renewable Energy & Conservation
 
13.1
%
 
0.6
%
 
(0.1
)%
 
 %
 
13.6
%
Segments margin
 
13.8
%
 
0.6
%
 
 %
 
0.1
 %
 
14.5
%
Consolidated
 
13.0
%
 
0.6
%
 
 %
 
(0.2
)%
 
13.4
%



9




GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
 
 
Three Months Ended 
 September 30, 2016
 
 
As Reported In GAAP Statements
 
Restructuring Charges
 
Senior Leadership Transition Costs
 
Portfolio Management
 
Adjusted Financial Measures
Net Sales
 
 
 
 
 
 
 
 
 
 
Residential Products
 
$
117,957

 
$

 

 
$

 
$
117,957

Industrial & Infrastructure Products
 
73,193

 

 

 

 
73,193

Less Inter-Segment Sales
 
(424
)
 

 

 

 
(424
)
 
 
72,769

 

 

 

 
72,769

Renewable Energy & Conservation
 
82,008

 

 

 

 
82,008

Consolidated sales
 
272,734

 

 

 

 
272,734

 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
 
 
 
 
 
 
 
 
 
Residential Products
 
19,407

 
580

 
252

 

 
20,239

Industrial & Infrastructure Products
 
1,913

 
3,185

 

 

 
5,098

Renewable Energy & Conservation
 
16,366

 

 

 

 
16,366

Segments income
 
37,686

 
3,765

 
252

 

 
41,703

Unallocated corporate expense
 
(11,164
)
 

 
1,454

 

 
(9,710
)
Consolidated income from operations
 
26,522

 
3,765

 
1,706

 

 
31,993

 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
3,625

 

 

 

 
3,625

Other expense (income)
 
159

 

 

 
(230
)
 
(71
)
Income before income taxes
 
22,738

 
3,765

 
1,706

 
230

 
28,439

Provision for income taxes
 
8,952

 
1,221

 
588

 
86

 
10,847

Income from continuing operations
 
$
13,786

 
$
2,544

 
$
1,118

 
$
144

 
$
17,592

Income from continuing operations per share -- diluted
 
$
0.43

 
$
0.08

 
$
0.04

 
$

 
$
0.55

 
 
 
 
 
 
 
 
 
 
 
Operating margin
 
 
 
 
 
 
 
 
 
 
Residential Products
 
16.5
%
 
0.5
%
 
0.2
%
 
%
 
17.2
%
Industrial & Infrastructure Products
 
2.6
%
 
4.4
%
 
%
 
%
 
7.0
%
Renewable Energy & Conservation
 
20.0
%
 
%
 
%
 
%
 
20.0
%
Segments margin
 
13.8
%
 
1.4
%
 
0.1
%
 
%
 
15.3
%
Consolidated
 
9.7
%
 
1.4
%
 
0.6
%
 
%
 
11.7
%
 
 
 
 
 
 
 
 
 
 
 







10






GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)

 
 
Nine Months Ended 
 September 30, 2017
 
 
As Reported In GAAP Statements
 
Acquisition & Restructuring Charges
 
Senior Leadership Transition Costs
 
Portfolio Management
 
Adjusted Financial Measures
Net Sales
 
 
 
 
 
 
 
 
 
 
Residential Products
 
$
361,304

 

 

 

 
$
361,304

Industrial & Infrastructure Products
 
165,806

 

 

 

 
165,806

Less Inter-Segment Sales
 
(994
)
 

 

 

 
(994
)
 
 
164,812

 

 

 

 
164,812

Renewable Energy & Conservation
 
202,690

 

 

 

 
202,690

Consolidated sales
 
728,806

 

 

 

 
728,806

 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
 
 
 
 
 
 
 
 
 
Residential Products
 
61,984

 
1,253

 

 

 
63,237

Industrial & Infrastructure Products
 
5,914

 
(15
)
 
260

 
482

 
6,641

Renewable Energy & Conservation
 
18,381

 
534

 
252

 
2,342

 
21,509

Segments income
 
86,279

 
1,772

 
512

 
2,824

 
91,387

Unallocated corporate expense
 
(15,977
)
 
325

 
(342
)
 

 
(15,994
)
Consolidated income from operations
 
70,302

 
2,097

 
170

 
2,824

 
75,393

 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
10,612

 

 

 

 
10,612

Other expense
 
811

 

 

 

 
811

Income before income taxes
 
58,879

 
2,097

 
170

 
2,824

 
63,970

Provision for income taxes
 
21,090

 
813

 
69

 
(70
)
 
21,902

Income from continuing operations
 
$
37,789

 
$
1,284

 
$
101

 
$
2,894

 
$
42,068

Income from continuing operations per share – diluted
 
$
1.17

 
$
0.04

 
$

 
$
0.10

 
$
1.31

 
 
 
 
 
 
 
 
 
 
 
Operating margin
 
 
 
 
 
 
 
 
 
 
Residential Products
 
17.2
%
 
0.3
%
 
%
 
%
 
17.5
%
Industrial & Infrastructure Products
 
3.6
%
 
%
 
0.2
%
 
0.3
%
 
4.0
%
Renewable Energy & Conservation
 
9.1
%
 
0.3
%
 
0.1
%
 
1.2
%
 
10.6
%
Segments margin
 
11.8
%
 
0.2
%
 
0.1
%
 
0.4
%
 
12.5
%
Consolidated
 
9.6
%
 
0.2
%
 
%
 
0.4
%
 
10.3
%







11






GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
 
 
Nine Months Ended 
 September 30, 2016
 
 
As Reported In GAAP Statements
 
Restructuring Charges
 
Senior Leadership Transition Costs
 
Portfolio Management
 
Adjusted Financial Measures
Net Sales
 
 
 
 
 
 
 
 
 
 
Residential Products
 
$
338,069

 

 

 

 
$
338,069

Industrial & Infrastructure Products
 
234,590

 

 

 

 
234,590

Less Inter-Segment Sales
 
(1,164
)
 

 

 

 
(1,164
)
 
 
233,426

 

 

 

 
233,426

Renewable Energy & Conservation
 
204,648

 

 

 

 
204,648

Consolidated sales
 
776,143

 

 

 

 
776,143

 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
 
 
 
 
 
 
 
 
 
Residential Products
 
52,363

 
1,856

 
252

 

 
54,471

Industrial & Infrastructure Products
 
11,429

 
4,716

 

 

 
16,145

Renewable Energy & Conservation
 
34,969

 

 

 

 
34,969

Segments income
 
98,761

 
6,572

 
252

 

 
105,585

Unallocated corporate expense
 
(25,902
)
 
31

 
1,454

 

 
(24,417
)
Consolidated income from operations
 
72,859

 
6,603

 
1,706

 

 
81,168

 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
10,982

 

 

 

 
10,982

Other expense (income)
 
8,319

 

 

 
(8,763
)
 
(444
)
Income before income taxes
 
53,558

 
6,603

 
1,706

 
8,763

 
70,630

Provision for income taxes
 
12,131

 
2,276

 
588

 
11,500

 
26,495

Income from continuing operations
 
$
41,427

 
$
4,327

 
$
1,118

 
$
(2,737
)
 
$
44,135

Income from continuing operations per share – diluted
 
$
1.29

 
$
0.14

 
$
0.04

 
$
(0.09
)
 
$
1.38

 
 
 
 
 
 
 
 
 
 
 
Operating margin
 
 
 
 
 
 
 
 
 
 
Residential Products
 
15.5
%
 
0.5
%
 
0.1
%
 
%
 
16.1
%
Industrial & Infrastructure Products
 
4.9
%
 
2.0
%
 
%
 
%
 
6.9
%
Renewable Energy & Conservation
 
17.1
%
 
%
 
%
 
%
 
17.1
%
Segments margin
 
12.7
%
 
0.8
%
 
%
 
%
 
13.6
%
Consolidated
 
9.4
%
 
0.9
%
 
0.2
%
 
%
 
10.5
%


12