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) February 23, 2018 (February 22, 2018)
GIBRALTAR INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
 
 
 
 
 
Delaware
 
0-22462
 
16-1445150
(State or other jurisdiction of
 incorporation )
 
(Commission File Number)
 
(IRS Employer Identification No.)
3556 Lake Shore Road
P.O. Box 2028
Buffalo, New York 14219-0228
(Address of principal executive offices) (Zip Code)
(716) 826-6500
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 








TABLE OF CONTENTS
Item 2.02 Results of Operations and Financial Condition
3

Item 7.01 Regulation FD Disclosure
3

Item 9.01 Financial Statements and Exhibits
3

SIGNATURE
4

EX - 99.1
 






2




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 February 22, 2018, Gibraltar Industries, Inc. (the “Company”) issued a news release and held a conference call regarding results for the three and twelve months ended December 31, 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 February 22, 2018


3



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:
February 23, 2018
 
 
 
By:
/s/ Jeffrey J. Watorek
 
 
 
Jeffrey J. Watorek
 
 
 
Vice President, Treasurer and Secretary


4
Exhibit


https://cdn.kscope.io/40cf4921f7fb24f2b8f2e99546777201-pressreleaseearningsq3a03.gif

Gibraltar Reports Fourth-Quarter and Full-Year 2017 Financial Results

Exceeds top and bottom line guidance for quarter and full year
4Q revenues of $258 million, GAAP EPS of $0.78 and adjusted EPS of $0.41
Full-year revenues of $987 million, GAAP EPS of $1.95 and adjusted EPS of $1.71
4Q GAAP income tax benefit from U.S. tax reform of $12.5 million, or $0.39 per share
ROIC rises to 12.6% from 11.7% PY

Buffalo, New York, February 22, 2018 - Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and distributor of building products for the residential, industrial, infrastructure, and renewable energy and conservation markets, today reported its financial results for the three- and twelve-month periods ended December 31, 2017. All financial metrics in this release reflect only the Company’s continuing operations unless otherwise noted.
Fourth-quarter Consolidated Results
Gibraltar reported the following consolidated results:
 
Three Months Ended December 31,
Dollars in millions, except EPS
GAAP
 
Adjusted
 
2017
2016
% Change
 
2017
2016
% Change
Net Sales
$258.1
$231.8
11%
 
$258.1
$231.8
11%
Net Income
$25.2
$(7.7)
nmf*
 
$13.2
$9.5
39%
Diluted EPS
$0.78
$(0.24)
nmf*
 
$0.41
$0.30
37%
*not meaningful
 
 
 
 
 
 
 

The Company reported fourth-quarter 2017 net sales of $258.1 million, exceeding the Company’s expectations of $231 million to $236 million as noted in its third-quarter earnings release. The 11 percent year-over-year increase was driven primarily by sales in the Residential and Renewable Energy & Conservation segments, 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 fourth-quarter 2016 sales of $16 million.
GAAP and adjusted earnings exceeded Company guidance due to the strong performance of the Residential Products and Renewable Energy & Conservation businesses along with lower corporate costs related to compensation plans. GAAP earnings further benefitted from the Tax Cuts and Jobs Act (“the Tax Reform Act”) transition adjustment, which resulted in an income tax benefit of $12.5 million, or $0.39 per diluted share. The adjusted amounts for the fourth quarter 2017 and 2016 remove special items, from both periods, as described in the appended reconciliation of adjusted financial measures.





For the twelve months ended December 31, 2017, the Company reported revenues of $986.9 million, 2.1 percent lower than the prior year due to portfolio changes and softness in the Industrial and Infrastructure segment. Adjusted for the Company’s exit of its U.S. bar grating product line and European residential solar racking business at the end of 2016, revenues increased 4 percent on a year-over-year basis. GAAP net income of $63.0 million, or $1.95 per diluted share, increased 86 percent compared with $33.7 million, or $1.05 per diluted share, in the prior-year period, and includes the benefit to income taxes due to the Tax Reform Act. The twelve-month adjusted net income increased to $55.3 million, or $1.71 per diluted share, up 3 percent and 2 percent, respectively, compared with the prior-year period.
Management Comments
“We ended a strong year with fourth-quarter results that exceeded our top and bottom line guidance,” said President and CEO Frank Heard. “Our revenues benefited from strong domestic sales in our Renewables and Conservation and Residential Products businesses, and from our new innovative products gaining traction. On the bottom line, lower corporate expenses, 130 basis points of margin improvement from 80/20 simplification projects and the benefit from the Tax Reform Act resulted in GAAP EPS of $0.78 compared with $(0.24) in the prior-year period. Our fourth-quarter adjusted EPS increased 37 percent on a year-over-year basis.”
“Three years into our five-year transformation strategy, we have made tremendous progress both operationally and financially,” added Heard. “During that time, we have improved our annual GAAP EPS from $(2.63) in 2014 to $1.95 in 2017, our GAAP operating margins from (8.2)% to 9.4%, and our return on invested capital from 3.9 percent to 12.6 percent. Through operational excellence, portfolio management, innovation and acquisitions, we now have a platform for sustainable growth built upon a portfolio and target markets that have significantly greater ongoing upside potential.”

Fourth-quarter Segment Results

Residential Products
For the fourth quarter, the Residential Products segment reported:
 
Three Months Ended December 31,
Dollars in millions
GAAP
 
Adjusted
 
2017
2016
% Change
 
2017
2016
% Change
Net Sales
$105.3
$92.9
13%
 
$105.3
$92.9
13%
Operating Margin
14.2%
13.9%
30 bps
 
14.3%
14.9%
(60) bps

The 13 percent increase in fourth-quarter 2017 net sales in Gibraltar’s Residential Products segment reflects strong demand for building products in the repair and remodel and new housing construction markets, growing demand for the Company’s centralized mail systems and electronic package solutions, and the contribution of the Package Concierge acquisition.
Strong sales for building products as well as a decrease in 80/20 initiative-related charges year over year contributed to the segment’s GAAP operating margin improvement. Adjusted operating margin declined due to product mix. The adjusted operating margin for the fourth 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 fourth quarter, the Industrial & Infrastructure Products segment reported:
 
Three Months Ended December 31,
Dollars in millions
GAAP
 
Adjusted
 
2017
2016
% Change
 
2017
2016
% Change
Net Sales
$49.1
$61.6
(20)%
 
$49.1
$61.6
(20)%
Operating Margin
4.6%
(16.4)%
nmf*
 
4.3%
3.1%
120 bps
*not meaningful
 
 
 
 
 
 
 

Fourth-quarter 2017 revenues in Gibraltar’s Industrial & Infrastructure Products segment were down due to the impact of the 2016 divestiture of the U.S. bar grating business. Excluding this divestiture, revenues in this segment were up 4 percent on a year-over-year basis as a result of organic growth. Backlog for the infrastructure business increased from the prior-year quarter and the Company expects new products in the industrial business to continue to gain traction during 2018.
GAAP and adjusted operating margins for the segment reflect operational efficiencies resulting from the Company’s 80/20 initiatives. This segment’s adjusted operating margin for the fourth quarter 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 fourth quarter, the Renewable Energy & Conservation segment reported:
 
Three Months Ended December 31,
Dollars in millions
GAAP
 
Adjusted
 
2017
2016
% Change
 
2017
2016
% Change
Net Sales
$103.7
$77.4
34%
 
$103.7
$77.4
34%
Operating Margin
11.4%
10.7%
70 bps
 
12.0%
17.8%
(580) bps

Renewable Energy & Conservation segment revenues were up 34 percent year over year due to strong demand in Gibraltar’s domestic markets, which more than offset the impact from the 2016 European solar market exit.
The fourth-quarter 2017 GAAP and adjusted operating margin reflects a less favorable alignment of material costs to customer selling prices, partially offset by operational improvements resulting from the Company’s 80/20 initiatives. This segment’s adjusted operating margin for the fourth quarter of 2017 and 2016 removes the special charges for restructuring initiatives, acquisitions and portfolio management activities in line with the Company’s strategic objectives.
Tax Reform
On December 22, 2017, the United States enacted the Tax Reform Act, which significantly changed U.S. tax laws by lowering the federal corporate income tax rate from 35% to 21%, imposing a one-time transition tax on deemed repatriated foreign earnings, moving to a territorial tax system, broadening the tax base and other changes. As a result of the Tax Reform Act, Gibraltar’s GAAP net income reflects a net benefit of $12.5 million, or $0.39 per share, in the fourth quarter of 2017.  The net benefit is the result of a $16.2 million benefit primarily from the re-measurement of the Company’s net U.S. deferred tax liabilities at the lower corporate tax rate, partially offset by an expense of $3.7 million related to foreign earnings.
Business Outlook
“We enter 2018 with continued optimism about the year ahead. We plan to drive sustainable organic growth through the acceleration of new product development initiatives, continue to implement operational improvement projects, and to seek value-added acquisitions in attractive end markets. At the end of the year, on an adjusted basis,





we expect once again to have generated increased profits at a higher rate of return with a more efficient use of capital,” said Heard.
Gibraltar is providing its guidance for revenues and earnings for the full year 2018. Gibraltar expects 2018 consolidated revenues to exceed $1 billion, considering modest growth across the Company’s end markets and continued traction from innovative products. GAAP EPS for the full year 2018 are expected to be between $1.75 and $1.87, or $1.96 to $2.08 on an adjusted basis, as compared to $1.95 and $1.71, respectively, in 2017.
For the first quarter of 2018, the Company is expecting revenue in the range of $213 million to $220 million as a result of growth across all end markets and continued traction from innovative products. GAAP EPS for the first quarter 2018 are expected to be between $0.20 and $0.25, or $0.23 to $0.28 on an adjusted basis.

FY 2018 Guidance Reconciliation
 
 
 
 
 
 
 
 
 
Gibraltar Industries
 
 
Dollars in millions, except EPS
Operating
 
Income
 
Net
 
Diluted
Earnings
 
 
 
Income
 
Margin
 
Taxes
 
Income
 
Per Share
 
 
GAAP Measures
$
93-99
 
 
 
9.2-9.6 %
 
 
$
22-23
 
 
$
56-60
 
 
$
1.75-1.87
 
Restructuring Costs
 
10
 
 
 
1%
 
 
3
 
 
 
7
 
 
 
0.21
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Measures
$
103-109
 
 
 
10.2-10.6%
 
 
$
25-26
 
 
$
63-67
 
 
$
1.96-2.08
 

Fourth-quarter Conference Call Details
Gibraltar has scheduled a conference call today starting at 9:00 a.m. ET to review its results for the fourth 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 the residential, industrial, infrastructure, and renewable energy and conservation markets. With a four-pillar strategy focused on operational improvement, product innovation, portfolio management and acquisitions, 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 macroeconomic factors including government monetary and trade policies, such as tariffs and expiration of tax credits along with currency fluctuations and general political conditions. Other risks and uncertainties that arise from time to time and are described in Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law or regulation.
Adjusted Financial Measures
To supplement Gibraltar’s consolidated financial statements presented on a GAAP basis, Gibraltar also presented certain adjusted financial measures in this news release. Adjusted financial measures exclude special charges consisting of restructuring costs primarily associated with the 80/20 simplification initiative and portfolio management actions, acquisition-related items, and other reclassifications including the impact of recent tax reform. These adjustments are shown in the 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 period ending March 31, 2018, on Friday, May 4, 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









GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
 
 
Three Months Ended 
 December 31,
 
Twelve Months Ended 
 December 31,
 
2017
 
2016
 
2017
 
2016
Net sales
$
258,112

 
$
231,838

 
$
986,918

 
$
1,007,981

Cost of sales
201,383

 
177,956

 
750,374

 
763,219

Gross profit
56,729

 
53,882

 
236,544

 
244,762

Selling, general, and administrative expense
34,135

 
43,078

 
143,448

 
161,099

Intangible asset impairment
47

 
10,175

 
247

 
10,175

Income from operations
22,547

 
629

 
92,849

 
73,488

Interest expense
3,420

 
3,595

 
14,032

 
14,577

Other expense
98

 
609

 
909

 
8,928

Income (loss) before taxes
19,029

 
(3,575
)
 
77,908

 
49,983

(Benefit of) provision for income taxes
(6,147
)
 
4,133

 
14,943

 
16,264

Income (loss) from continuing operations
25,176

 
(7,708
)
 
62,965

 
33,719

Discontinued operations:
 
 
 
 
 
 
 
Loss before taxes

 
(70
)
 
(644
)
 
(70
)
Benefit of income taxes

 
(26
)
 
(239
)
 
(26
)
Loss from discontinued operations

 
(44
)
 
(405
)
 
(44
)
Net Income (loss)
$
25,176

 
$
(7,752
)
 
$
62,560

 
$
33,675

Net earnings per share – Basic:
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
0.79

 
$
(0.24
)
 
$
1.98

 
$
1.07

Loss from discontinued operations

 

 
(0.01
)
 

Net income (loss)
$
0.79

 
$
(0.24
)
 
$
1.97

 
$
1.07

Weighted average shares outstanding – Basic
31,771

 
31,648

 
31,701

 
31,536

Net earnings per share – Diluted:
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
0.78

 
$
(0.24
)
 
$
1.95

 
$
1.05

Loss from discontinued operations

 

 
(0.01
)
 

Net income (loss)
$
0.78

 
$
(0.24
)
 
$
1.94

 
$
1.05

Weighted average shares outstanding – Diluted
32,420

 
31,648

 
32,250

 
32,069






GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
 
 
December 31,
2017
 
December 31,
2016
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
222,280

 
$
170,177

Accounts receivable, net
145,385

 
124,072

Inventories
86,372

 
89,612

Other current assets
8,727

 
7,336

Total current assets
462,764

 
391,197

Property, plant, and equipment, net
97,098

 
108,304

Goodwill
321,074

 
304,032

Acquired intangibles
105,768

 
110,790

Other assets
4,681

 
3,922

 
$
991,385

 
$
918,245

Liabilities and Shareholders’ Equity
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
82,387

 
$
69,944

Accrued expenses
75,467

 
70,392

Billings in excess of cost
12,779

 
11,352

Current maturities of long-term debt
400

 
400

Total current liabilities
171,033

 
152,088

Long-term debt
209,621

 
209,237

Deferred income taxes
31,237

 
38,002

Other non-current liabilities
47,775

 
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; 32,332 and 32,085 shares outstanding in 2017 and 2016
323

 
320

Additional paid-in capital
271,957

 
264,418

Retained earnings
274,562

 
211,748

Accumulated other comprehensive loss
(4,366
)
 
(7,721
)
Cost of 615 and 530 common shares held in treasury in 2017 and 2016
(10,757
)
 
(7,885
)
Total shareholders’ equity
531,719

 
460,880

 
$
991,385

 
$
918,245







GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
Twelve Months Ended
 
December 31,
 
2017
 
2016
Cash Flows from Operating Activities
 
 
 
Net income
$
62,560

 
$
33,675

Loss from discontinued operations
(405
)
 
(44
)
Income from continuing operations
62,965

 
33,719

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
21,690

 
24,114

Intangible asset impairment
247

 
10,175

Loss on sale of business

 
8,763

Stock compensation expense
7,122

 
6,373

Net gain on sale of assets
(123
)
 
(42
)
Exit activity (recoveries) costs, non-cash
(1,877
)
 
7,530

Benefit of deferred income taxes
(7,105
)
 
(4,893
)
Other, net
2,118

 
1,934

Changes in operating assets and liabilities (excluding the effects of acquisitions):
 
 
 
Accounts receivable
(21,806
)
 
37,828

Inventories
870

 
11,782

Other current assets and other assets
(2,629
)
 
2,511

Accounts payable
11,332

 
(17,060
)
Accrued expenses and other non-current liabilities
(2,734
)
 
1,253

Net cash provided by operating activities
70,070

 
123,987

Cash Flows from Investing Activities
 
 
 
Purchases of property, plant, and equipment
(11,399
)
 
(10,779
)
Acquisitions, net of cash acquired
(18,494
)
 
(23,412
)
Net proceeds from sale of property and equipment
13,096

 
953

Net proceeds from sale of business

 
8,250

Other, net

 
1,118

Net cash used in investing activities
(16,797
)
 
(23,870
)
Cash Flows from Financing Activities
 
 
 
Long-term debt payments
(400
)
 
(400
)
Payment of debt issuance costs

 
(54
)
Purchase of treasury stock at market prices
(2,872
)
 
(1,539
)
Net proceeds from issuance of common stock
674

 
3,341

Net cash (used in) provided by financing activities
(2,598
)
 
1,348

Effect of exchange rate changes on cash
1,428

 
(146
)
Net increase in cash and cash equivalents
52,103

 
101,319

Cash and cash equivalents at beginning of year
170,177

 
68,858

Cash and cash equivalents at end of year
$
222,280

 
$
170,177









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


 
 
Three Months Ended 
 December 31, 2017
 
 
As
Reported
In GAAP Statements
 
Restructuring & Acquisition Related Items
 
Senior Leadership Transition Costs
 
Portfolio Management
 
Tax Reform
 
Adjusted Financial Measures
Net Sales
 
 
 
 
 
 
 
 
 
 
 
 
Residential Products
 
$
105,299

 
$

 
$

 
$

 
$

 
$
105,299

Industrial & Infrastructure Products
 
49,405

 

 

 

 

 
49,405

Less Inter-Segment Sales
 
(253
)
 

 

 

 

 
(253
)
 
 
49,152

 

 

 

 

 
49,152

Renewable Energy & Conservation
 
103,661

 

 

 

 

 
103,661

Consolidated sales
 
258,112

 

 

 

 

 
258,112

 
 
 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
 
 
 
 
 
 
 
 
 
 
 
Residential Products
 
14,909

 
150

 

 

 

 
15,059

Industrial & Infrastructure Products
 
2,245

 
64

 

 
(195
)
 

 
2,114

Renewable Energy & Conservation
 
11,837

 
621

 

 
(2
)
 

 
12,456

Segment income
 
28,991

 
835

 

 
(197
)
 

 
29,629

Unallocated corporate expense
 
(6,444
)
 
82

 
535

 

 

 
(5,827
)
Consolidated income from operations
 
22,547

 
917

 
535

 
(197
)
 

 
23,802

 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
3,420

 

 

 

 

 
3,420

Other expense
 
98

 

 

 

 

 
98

Income before income taxes
 
19,029

 
917

 
535

 
(197
)
 

 
20,284

(Benefit of) provision for income taxes
 
(6,147
)
 
305

 
203

 
150

 
12,535

 
7,046

Income from continuing operations
 
$
25,176

 
$
612

 
$
332

 
$
(347
)
 
$
(12,535
)
 
$
13,238

Income from continuing operations per share – diluted
 
$
0.78

 
$
0.02

 
$
0.01

 
$
(0.01
)
 
$
(0.39
)
 
$
0.41

 
 
 
 
 
 
 
 
 
 
 
 
 
Operating margin
 
 
 
 
 
 
 
 
 
 
 
 
Residential Products
 
14.2
%
 
0.1
%
 
%
 
 %
 
%
 
14.3
%
Industrial & Infrastructure Products
 
4.6
%
 
0.1
%
 
%
 
(0.4
)%
 
%
 
4.3
%
Renewable Energy & Conservation
 
11.4
%
 
0.6
%
 
%
 
 %
 
%
 
12.0
%
Segments Margin
 
11.2
%
 
0.3
%
 
%
 
(0.1
)%
 
%
 
11.5
%
Consolidated
 
8.7
%
 
0.3
%
 
0.2
%
 
(0.1
)%
 
%
 
9.2
%






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


 
 
Three Months Ended 
 December 31, 2016
 
 
As
Reported
In GAAP Statements
 
Acquisition Related Items
 
Restructuring Charges
 
Senior Leadership Transition Costs
 
Portfolio Management
 
Adjusted Financial Measures
Net Sales
 
 
 
 
 
 
 
 
 
 
 
 
Residential Products
 
$
92,869

 
$

 
$

 
$

 
$

 
$
92,869

Industrial & Infrastructure Products
 
61,923

 

 

 

 

 
61,923

Less Inter-Segment Sales
 
(331
)
 

 

 

 

 
(331
)
 
 
61,592

 

 

 

 

 
61,592

Renewable Energy & Conservation
 
77,377

 

 

 

 

 
77,377

Consolidated sales
 
231,838

 

 

 

 

 
231,838

 
 
 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
 
 
 
 
 
 
 
 
 
 
 
Residential Products
 
12,878

 

 
677

 
252

 

 
13,807

Industrial & Infrastructure Products
 
(10,123
)
 

 
606

 

 
11,425

 
1,908

Renewable Energy & Conservation
 
8,245

 
981

 
914

 

 
3,670

 
13,810

Segment income
 
11,000

 
981

 
2,197

 
252

 
15,095

 
29,525

Unallocated corporate expense
 
(10,371
)
 
197

 

 
743

 
58

 
(9,373
)
Consolidated income from operations
 
629

 
1,178

 
2,197

 
995

 
15,153

 
20,152

 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
3,595

 

 

 

 

 
3,595

Other expense
 
609

 

 

 

 

 
609

(Loss) income before income taxes
 
(3,575
)
 
1,178

 
2,197

 
995

 
15,153

 
15,948

Provision for income taxes
 
4,133

 
587

 
1,093

 
496

 
133

 
6,442

(Loss) income from continuing operations
 
$
(7,708
)
 
$
591

 
$
1,104

 
$
499

 
$
15,020

 
$
9,506

(Loss) income from continuing operations per share – diluted
 
$
(0.24
)
 
$
0.02

 
$
0.03

 
$
0.02

 
$
0.47

 
$
0.30

 
 
 
 
 
 
 
 
 
 
 
 
 
Operating margin
 
 
 
 
 
 
 
 
 
 
 
 
Residential Products
 
13.9
 %
 
%
 
0.7
%
 
0.3
%
 
%
 
14.9
%
Industrial & Infrastructure Products
 
(16.4
)%
 
%
 
1.0
%
 
%
 
18.5
%
 
3.1
%
Renewable Energy & Conservation
 
10.7
 %
 
1.3
%
 
1.2
%
 
%
 
4.7
%
 
17.8
%
Segments Margin
 
4.7
 %
 
0.4
%
 
1.0
%
 
0.1
%
 
6.5
%
 
12.7
%
Consolidated
 
0.3
 %
 
0.5
%
 
1.0
%
 
0.4
%
 
6.5
%
 
8.7
%






GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(Unaudited)
 
 
Twelve Months Ended 
 December 31, 2017
 
 
As
Reported
In GAAP Statements
 
Restructuring & Acquisition Related Items
 
Senior Leadership Transition Costs
 
Portfolio Management
 
Tax Reform
 
Adjusted Financial Measures
Net Sales
 
 
 
 
 
 
 
 
 
 
 
 
Residential Products
 
$
466,603

 
$

 
$

 
$

 
$

 
$
466,603

Industrial & Infrastructure Products
 
215,211

 

 

 

 

 
215,211

Less Inter-Segment Sales
 
(1,247
)
 

 

 

 

 
(1,247
)
 
 
213,964

 

 

 

 

 
213,964

Renewable Energy & Conservation
 
306,351

 

 

 

 

 
306,351

Consolidated sales
 
986,918

 

 

 

 

 
986,918

 
 
 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
 
 
 
 
 
 
 
 
 
 
 
Residential Products
 
76,893

 
1,403

 

 

 

 
78,296

Industrial & Infrastructure Products
 
8,159

 
49

 
260

 
287

 

 
8,755

Renewable Energy & Conservation
 
30,218

 
1,155

 
252

 
2,340

 

 
33,965

Segment income
 
115,270

 
2,607

 
512

 
2,627

 

 
121,016

Unallocated corporate expense
 
(22,421
)
 
407

 
193

 

 

 
(21,821
)
Consolidated income from operations
 
92,849

 
3,014

 
705

 
2,627

 

 
99,195

 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
14,032

 

 

 

 

 
14,032

Other expense
 
909

 

 

 

 

 
909

Income before income taxes
 
77,908

 
3,014

 
705

 
2,627

 

 
84,254

Provision for income taxes
 
14,943

 
1,118

 
272

 
80

 
12,535

 
28,948

Income from continuing operations
 
$
62,965

 
$
1,896

 
$
433

 
$
2,547

 
$
(12,535
)
 
$
55,306

Income from continuing operations per share – diluted
 
$
1.95

 
$
0.06

 
$
0.01

 
$
0.08

 
$
(0.39
)
 
$
1.71

 
 
 
 
 
 
 
 
 
 
 
 
 
Operating margin
 
 
 
 
 
 
 
 
 
 
 
 
Residential Products
 
16.5
%
 
0.3
%
 
%
 
%
 
%
 
16.8
%
Industrial & Infrastructure Products
 
3.8
%
 
%
 
0.1
%
 
0.1
%
 
%
 
4.1
%
Renewable Energy & Conservation
 
9.9
%
 
0.4
%
 
0.1
%
 
0.8
%
 
%
 
11.1
%
Segments Margin
 
11.7
%
 
0.2
%
 
0.1
%
 
0.3
%
 
%
 
12.3
%
Consolidated
 
9.4
%
 
0.3
%
 
0.1
%
 
0.3
%
 
%
 
10.1
%







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


 
 
Twelve Months Ended 
 December 31, 2016
 
 
As
Reported
In GAAP Statements
 
Acquisition Related Items
 
Restructuring Charges
 
Senior Leadership Transition Costs
 
Portfolio Management
 
Adjusted Financial Measures
Net Sales
 
 
 
 
 
 
 
 
 
 
 
 
Residential Products
 
$
430,938

 
$

 
$

 
$

 
$

 
$
430,938

Industrial & Infrastructure Products
 
296,513

 

 

 

 

 
296,513

Less Inter-Segment Sales
 
(1,495
)
 

 

 

 

 
(1,495
)
 
 
295,018

 

 

 

 

 
295,018

Renewable Energy & Conservation
 
282,025

 

 

 

 

 
282,025

Consolidated sales
 
1,007,981

 

 

 

 

 
1,007,981

 
 
 
 
 
 
 
 
 
 
 
 
 
Income from operations
 
 
 
 
 
 
 
 
 
 
 
 
Residential Products
 
65,241

 

 
2,533

 
504

 

 
68,278

Industrial & Infrastructure Products
 
1,306

 

 
2,401

 

 
14,346

 
18,053

Renewable Energy & Conservation
 
43,214

 
981

 
914

 

 
3,670

 
48,779

Segment income
 
109,761

 
981

 
5,848

 
504

 
18,016

 
135,110

Unallocated corporate expense
 
(36,273
)
 
228

 

 
2,197

 
58

 
(33,790
)
Consolidated income from operations
 
73,488

 
1,209

 
5,848

 
2,701

 
18,074

 
101,320

 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
14,577

 

 

 

 

 
14,577

Other expense
 
8,928

 

 

 

 
(8,763
)
 
165

Income before income taxes
 
49,983

 
1,209

 
5,848

 
2,701

 
26,837

 
86,578

Provision for income taxes
 
16,264

 
497

 
2,406

 
1,111

 
12,659

 
32,937

Income from continuing operations
 
$
33,719

 
$
712

 
$
3,442

 
$
1,590

 
$
14,178

 
$
53,641

Income from continuing operations per share – diluted
 
$
1.05

 
$
0.02

 
$
0.11

 
$
0.05

 
$
0.44

 
$
1.67

 
 
 
 
 
 
 
 
 
 
 
 
 
Operating margin
 
 
 
 
 
 
 
 
 
 
 
 
Residential Products
 
15.1
%
 
%
 
0.6
%
 
0.1
%
 
%
 
15.8
%
Industrial & Infrastructure Products
 
0.4
%
 
%
 
0.8
%
 
%
 
4.9
%
 
6.1
%
Renewable Energy & Conservation
 
15.3
%
 
0.3
%
 
0.3
%
 
%
 
1.3
%
 
17.3
%
Segments Margin
 
10.9
%
 
0.1
%
 
0.6
%
 
0.1
%
 
1.8
%
 
13.4
%
Consolidated
 
7.3
%
 
0.1
%
 
0.6
%
 
0.3
%
 
1.8
%
 
10.0
%