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 | ||||
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
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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 | ||||||||||||||
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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
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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 | |||||||||||
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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 | ||||
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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 | |||
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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 | % | ||||||||||
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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