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) August 5, 2020
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation ) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(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:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
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 ☐
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. ☐
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 | ||||||||||||||||
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 August 5, 2020, Gibraltar Industries, Inc. (the “Company”) issued a news release and held a conference call regarding results for the three and six months ended June 30, 2020. 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 | |||||||
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: | August 5, 2020 | |||||||||||||
| By: | /s/ Jeffrey J. Watorek | |||||||||||||
| Jeffrey J. Watorek | ||||||||||||||
| Vice President, Treasurer and Secretary | ||||||||||||||
4
Gibraltar Announces Second-Quarter 2020 Financial Results
Q2 Revenues Grow 9%, GAAP and Adjusted EPS Grow 36% and 15%, Respectively
Backlog of $277 Million up 14% on Renewable Energy and Conservation Demand
Strong Balance Sheet and Liquidity Supports Execution and Ongoing Investment in the Business
Continue to Execute Pandemic Playbook
Buffalo, New York, August 5, 2020 - Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the renewable energy, conservation, residential, industrial and infrastructure markets, today reported its financial results for the three-month period ended June 30, 2020.
“Our organization responded well to a better than expected demand profile in our Residential Products and Renewable Energy & Conservation end markets during the quarter. Despite the continuous challenge of the pandemic, our decision to keep our team intact enabled us to deliver revenue growth and adjusted EPS growth of 8.8% and 15.1%, respectively” said President and Chief Executive Officer Bill Bosway. “As important, our GAAP and adjusted operating margins improved 200 and 130 basis points, respectively, supporting our continued investment in our business. We are gaining momentum and starting to see more consistent performance across our businesses, with our backlog continuing to build, up 14% to $277 million.”
Second Quarter 2020 Consolidated Results
Gibraltar reported the following consolidated results:
Three Months Ended June 30, | |||||||||||||||||||||||
Dollars in millions, except EPS | GAAP | Adjusted | |||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||
Net Sales | $285.8 | $262.7 | 8.8% | $285.8 | $262.7 | 8.8% | |||||||||||||||||
Net Income | $27.3 | $19.9 | 37.2% | $27.7 | $23.7 | 16.9% | |||||||||||||||||
Diluted EPS | $0.83 | $0.61 | 36.1% | $0.84 | $0.73 | 15.1% | |||||||||||||||||
Second quarter 2020 net sales increased 8.8% to $285.8 million, driven by the Residential Products and Renewable Energy & Conservation segments. Of the 8.8% increase, organic growth was 1.6%, and recent acquisitions contributed 7.2%.
GAAP earnings increased 37.2% to $27.3 million, or $0.83 per share, while adjusted earnings increased 16.9% to $27.7 million, or $0.84 per share, the result of organic growth in both Residential Products and Renewable Energy and Conservation, marked margin expansion in Residential and Industrial & Infrastructure Products, continued execution in all core businesses, product and services mix, favorable alignment of price to material costs, and ongoing benefits from operational excellence initiatives. Special items removed from both the second quarters of 2020 and 2019 are further described in the appended reconciliation of adjusted financial measures.
Mr. Bosway stated, “We continue to execute our operating playbook as we deal with the pandemic and make necessary adjustments as the current environment evolves. Our top priorities remain our organization, keeping them and their families as safe and healthy as possible, ensuring our supply chain operates well, and maintaining a high level of responsiveness to customers.”
Second Quarter Segment Results
Renewable Energy & Conservation
For the second quarter, the Renewable Energy & Conservation segment reported:
Three Months Ended June 30, | |||||||||||||||||||||||
Dollars in millions | GAAP | Adjusted | |||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||
Net Sales | $98.3 | $76.0 | 29.3% | $98.3 | $76.0 | 29.3% | |||||||||||||||||
Operating Margin | 9.4% | 12.7% | (330) bps | 10.9% | 12.6% | (170) bps | |||||||||||||||||
Renewable Energy & Conservation revenues increased 29.3%, with organic growth of 4.2%, and inorganic growth of 25.1% resulting from the acquisitions of Apeks Supercritical, Thermo Energy Solutions and Delta Separations. Segment backlog increased, up 15% versus 2019, the result of good market dynamics and participation gains, particularly in renewable energy, and the impact of recent acquisitions.
The segment’s core business continued to grow, driven by renewable energy, and delivered improved operating results driven by participation gains, product and service mix, strong execution, and continued improved solar tracker field performance. These benefits were partly offset by slower market demand for cannabis growing solutions. The impact on margins from acquisitions was consistent with expectations, with the pandemic creating near-term cannabis processing end market demand challenges, and while there have been a few integration challenges, integration overall is expected to be completed on time to deliver targeted returns in year three. Adjusted operating margin for the second quarter of 2020 and 2019 removes special charges for acquisition related items and restructuring initiatives, as further described in the appended reconciliation of adjusted financial measures.
Residential Products
For the second quarter, the Residential Products segment reported:
Three Months Ended June 30, | |||||||||||||||||||||||
Dollars in millions | GAAP | Adjusted | |||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||
Net Sales | $139.5 | $130.4 | 7.0% | $139.5 | $130.4 | 7.0% | |||||||||||||||||
Operating Margin | 20.0% | 15.9% | 410 bps | 20.2% | 16.2% | 400 bps | |||||||||||||||||
Residential Products revenue increased 7.0% due to strong repair and remodel activity as homeowners started to “nest” during the pandemic and through participation gains across key product lines and customers. Adjusted operating margin increased due to consistent execution, better price and material cost management, product mix, 80/20 initiatives, and volume leverage. Adjusted operating margin for the second quarters of 2020 and 2019 removes the special charges for restructuring initiatives under the 80/20 program as further described in the appended reconciliation of adjusted financial measures.
Industrial & Infrastructure Products
For the second quarter, the Industrial & Infrastructure Products segment reported:
Three Months Ended June 30, | |||||||||||||||||||||||
Dollars in millions | GAAP | Adjusted | |||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||
Net Sales | $48.1 | $56.2 | (14.4)% | $48.1 | $56.2 | (14.4)% | |||||||||||||||||
Operating Margin | 13.8% | 7.2% | 660 bps | 14.5% | 9.6% | 490 bps | |||||||||||||||||
Segment revenue decreased 14.4%, driven by lower demand for core industrial products during the pandemic. The infrastructure business was comparable with the prior year’s quarter, and its backlog continued to grow.
The increase in adjusted operating margin was driven by continued improvement in execution in our industrial business, a more favorable alignment of price to material costs, mix and continued benefits from 80/20 profit improvement initiatives. Adjusted operating margin for the second quarters of 2020 and 2019 removes special charges for restructuring initiatives as further described in the appended reconciliation of adjusted financial measures.
Business Outlook
Although the Company delivered strong financial performance in the first half of 2020 and continues to experience a growing backlog, the uncertain pace and strength of an economic recovery in the current environment continue to make providing reliable quantitative guidance difficult.
Bill Bosway commented, “Our momentum and current market trends support a solid outlook for the remainder of the year and give us confidence that our second half of the year will be stronger than the first half. However, the current status of the pandemic across the country, and understanding its potential impact on our markets, makes it challenging to provide an outlook and guidance with reliable precision. Therefore, we will continue with suspension of quantitative guidance and will revisit this practice in three months. In the near term, we will continue to focus on what is in front of us and on what we can control. The resiliency inherent in our business model and our strong balance sheet position us to continue investing in our business and strengthening our position in the markets we serve.”
Second Quarter 2020 Conference Call Details
Gibraltar will host a conference call today starting at 9:00 a.m. ET to review its results for the second quarter of 2020. Interested parties may access the webcast through the Investor Info section of the Company’s website at www.gibraltar1.com or dial into the call at (877) 407-3088 or (201) 389-0927. Presentation slides referenced during the conference call will be available for download on the website. 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 provider of products and services for the renewable energy, conservation, residential, industrial, and infrastructure markets. With a three-pillar strategy focused on business systems, portfolio management, and organization and talent development, Gibraltar’s mission is to create compounding and sustainable value with strong leadership positions in higher growth, profitable end markets. Gibraltar serves customers primarily throughout North America. Comprehensive information about Gibraltar can be found on its website at www.gibraltar1.com.
Forward-Looking Statements
Certain information set forth in this news release, other than historical statements, contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are based, in whole or in
part, on current expectations, estimates, forecasts, and projections about the Company’s business, and management’s beliefs about future operations, results, and financial position. These statements are not guarantees of future performance and are subject to a number of risk factors, uncertainties, and assumptions. Actual events, performance, or results could differ materially from the anticipated events, performance, or results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from current expectations include, among other things, the impacts of COVID-19 on the global economy and on our customers, suppliers, employees, operations, business, liquidity and cash flows, other general economic conditions and conditions in the particular markets in which we operate, changes in customer demand and capital spending, competitive factors and pricing pressures, our ability to develop and launch new products in a cost-effective manner, our ability to realize synergies from newly acquired businesses, and our ability to derive expected benefits from restructuring, productivity initiatives, liquidity enhancing actions, and other cost reduction actions. Before making any investment decisions regarding our company, we strongly advise you to read the section entitled “Risk Factors” in our most recent annual report on Form 10-K which can be accessed under the “SEC Filings” link of the “Investor Info” page of our website at www.Gibraltar1.com. 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 80/20 simplification initiatives, senior leadership transition costs, early debt repayment, acquisition related costs, and other reclassifications. 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.
Contact:
LHA Investor Relations
Jody Burfening/Carolyn Capaccio
(212) 838-3777
rock@lhai.com
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| Net Sales | $ | 285,814 | $ | 262,655 | $ | 535,253 | $ | 490,072 | |||||||||||||||
| Cost of sales | 213,556 | 199,097 | 406,608 | 382,614 | |||||||||||||||||||
| Gross profit | 72,258 | 63,558 | 128,645 | 107,458 | |||||||||||||||||||
| Selling, general, and administrative expense | 37,667 | 36,952 | 78,864 | 70,286 | |||||||||||||||||||
| Income from operations | 34,591 | 26,606 | 49,781 | 37,172 | |||||||||||||||||||
| Interest expense | 214 | 219 | 167 | 2,280 | |||||||||||||||||||
| Other (income) expense | (1,787) | (13) | (1,595) | 576 | |||||||||||||||||||
| Income before taxes | 36,164 | 26,400 | 51,209 | 34,316 | |||||||||||||||||||
| Provision for income taxes | 8,872 | 6,487 | 11,858 | 8,058 | |||||||||||||||||||
| Net income | $ | 27,292 | $ | 19,913 | $ | 39,351 | $ | 26,258 | |||||||||||||||
| Net earnings per share: | |||||||||||||||||||||||
| Basic | $ | 0.84 | $ | 0.62 | $ | 1.21 | $ | 0.81 | |||||||||||||||
| Diluted | $ | 0.83 | $ | 0.61 | $ | 1.20 | $ | 0.80 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 32,605 | 32,321 | 32,596 | 32,300 | |||||||||||||||||||
| Diluted | 32,860 | 32,642 | 32,868 | 32,630 | |||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
| June 30, 2020 | December 31, 2019 | ||||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 120,859 | $ | 191,363 | |||||||
| Accounts receivable, net of allowance of $6,270 and $6,330 | 193,609 | 147,515 | |||||||||
| Inventories | 79,058 | 78,476 | |||||||||
| Prepaid expenses and other current assets | 22,849 | 19,748 | |||||||||
| Total current assets | 416,375 | 437,102 | |||||||||
| Property, plant, and equipment, net | 94,723 | 95,409 | |||||||||
| Operating lease assets | 33,383 | 27,662 | |||||||||
| Goodwill | 378,740 | 329,705 | |||||||||
| Acquired intangibles | 110,481 | 92,592 | |||||||||
| Other assets | 1,794 | 1,980 | |||||||||
| $ | 1,035,496 | $ | 984,450 | ||||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 116,853 | $ | 83,136 | |||||||
| Accrued expenses | 94,009 | 98,463 | |||||||||
| Billings in excess of cost | 29,281 | 47,598 | |||||||||
| Total current liabilities | 240,143 | 229,197 | |||||||||
| Deferred income taxes | 40,022 | 40,334 | |||||||||
| Non-current operating lease liabilities | 24,400 | 19,669 | |||||||||
| Other non-current liabilities | 21,167 | 21,286 | |||||||||
| Shareholders’ equity: | |||||||||||
| Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding | — | — | |||||||||
| Common stock, $0.01 par value; authorized 50,000 shares; 33,413 shares and 33,192 shares issued and outstanding in 2020 and 2019 | 334 | 332 | |||||||||
| Additional paid-in capital | 299,829 | 295,582 | |||||||||
| Retained earnings | 444,728 | 405,668 | |||||||||
| Accumulated other comprehensive loss | (8,438) | (5,391) | |||||||||
| Cost of 993 and 906 common shares held in treasury in 2020 and 2019 | (26,689) | (22,227) | |||||||||
| Total shareholders’ equity | 709,764 | 673,964 | |||||||||
| $ | 1,035,496 | $ | 984,450 | ||||||||
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Six Months Ended June 30, | |||||||||||
| 2020 | 2019 | ||||||||||
| Cash Flows from Operating Activities | |||||||||||
| Net income | $ | 39,351 | $ | 26,258 | |||||||
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||
| Depreciation and amortization | 11,054 | 9,892 | |||||||||
| Stock compensation expense | 4,171 | 6,091 | |||||||||
| Gain on sale of business | (1,881) | — | |||||||||
| Exit activity costs, non-cash | 346 | — | |||||||||
| (Benefit of) provision for deferred income taxes | (216) | 278 | |||||||||
| Other, net | 1,018 | 2,437 | |||||||||
| Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||||||||||
| Accounts receivable | (25,842) | (41,156) | |||||||||
| Inventories | 5,661 | 13,464 | |||||||||
| Other current assets and other assets | 1,996 | (4,983) | |||||||||
| Accounts payable | (1,732) | 4,012 | |||||||||
| Accrued expenses and other non-current liabilities | (41,181) | (9,807) | |||||||||
| Net cash (used in) / provided by operating activities | (7,255) | 6,486 | |||||||||
| Cash Flows from Investing Activities | |||||||||||
| Acquisitions, net of cash acquired | (54,385) | (264) | |||||||||
| Net proceeds from sale of property and equipment | 59 | 60 | |||||||||
| Purchases of property, plant, and equipment | (5,231) | (6,265) | |||||||||
| Net proceeds from sale of business | 704 | — | |||||||||
| Net cash used in investing activities | (58,853) | (6,469) | |||||||||
| Cash Flows from Financing Activities | |||||||||||
| Long-term debt payments | — | (212,000) | |||||||||
| Payment of debt issuance costs | — | (1,235) | |||||||||
| Purchase of treasury stock at market prices | (4,462) | (3,149) | |||||||||
| Net proceeds from issuance of common stock | 78 | 208 | |||||||||
| Net cash used in financing activities | (4,384) | (216,176) | |||||||||
| Effect of exchange rate changes on cash | (12) | 1,035 | |||||||||
| Net decrease in cash and cash equivalents | (70,504) | (215,124) | |||||||||
| Cash and cash equivalents at beginning of year | 191,363 | 297,006 | |||||||||
| Cash and cash equivalents at end of period | $ | 120,859 | $ | 81,882 | |||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Three Months Ended June 30,2020 | ||||||||||||||||||||||||||||||||||||||
As Reported In GAAP Statements | Restructuring Charges | Senior Leadership Transition Costs | Acquisition Related Items | Gain on Sale of Business | Adjusted Financial Measures | |||||||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | $ | 98,259 | $ | — | $ | — | $ | — | $ | — | $ | 98,259 | ||||||||||||||||||||||||||
| Residential Products | 139,472 | — | — | — | — | 139,472 | ||||||||||||||||||||||||||||||||
| Industrial & Infrastructure Products | 48,263 | — | — | — | — | 48,263 | ||||||||||||||||||||||||||||||||
| Less Inter-Segment Sales | (180) | — | — | — | — | (180) | ||||||||||||||||||||||||||||||||
| 48,083 | — | — | — | — | 48,083 | |||||||||||||||||||||||||||||||||
| Consolidated sales | 285,814 | — | — | — | — | 285,814 | ||||||||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 9,188 | 388 | — | 1,172 | — | 10,748 | ||||||||||||||||||||||||||||||||
| Residential Products | 27,964 | 263 | — | — | — | 28,227 | ||||||||||||||||||||||||||||||||
| Industrial & Infrastructure Products | 6,644 | 314 | — | — | — | 6,958 | ||||||||||||||||||||||||||||||||
| Segments Income | 43,796 | 965 | — | 1,172 | — | 45,933 | ||||||||||||||||||||||||||||||||
| Unallocated corporate expense | (9,205) | 45 | 116 | 50 | — | (8,994) | ||||||||||||||||||||||||||||||||
| Consolidated income from operations | 34,591 | 1,010 | 116 | 1,222 | — | 36,939 | ||||||||||||||||||||||||||||||||
| Interest expense | 214 | — | — | — | — | 214 | ||||||||||||||||||||||||||||||||
| Other (income) expense | (1,787) | — | — | — | 1,881 | 94 | ||||||||||||||||||||||||||||||||
| Income before income taxes | 36,164 | 1,010 | 116 | 1,222 | (1,881) | 36,631 | ||||||||||||||||||||||||||||||||
| Provision for income taxes | 8,872 | 236 | — | 274 | (469) | 8,913 | ||||||||||||||||||||||||||||||||
| Net income | $ | 27,292 | $ | 774 | $ | 116 | $ | 948 | $ | (1,412) | $ | 27,718 | ||||||||||||||||||||||||||
| Net earnings per share - diluted | $ | 0.83 | $ | 0.02 | $ | — | $ | 0.03 | $ | (0.04) | $ | 0.84 | ||||||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 9.4 | % | 0.4 | % | — | % | 1.2 | % | — | % | 10.9 | % | ||||||||||||||||||||||||||
| Residential Products | 20.0 | % | 0.2 | % | — | % | — | % | — | % | 20.2 | % | ||||||||||||||||||||||||||
| Industrial & Infrastructure Products | 13.8 | % | 0.7 | % | — | % | — | % | — | % | 14.5 | % | ||||||||||||||||||||||||||
| Segments Margin | 15.3 | % | 0.3 | % | — | % | 0.4 | % | — | % | 16.1 | % | ||||||||||||||||||||||||||
| Consolidated | 12.1 | % | 0.4 | % | — | % | 0.4 | % | — | % | 12.9 | % | ||||||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Three Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||
As Reported In GAAP Statements | Restructuring and Acquisition Related Items | Senior Leadership Transition Costs | Debt Repayment | Adjusted Financial Measures | ||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | $ | 76,004 | $ | — | $ | — | $ | — | $ | 76,004 | ||||||||||||||||||||||
| Residential Products | 130,433 | — | — | — | 130,433 | |||||||||||||||||||||||||||
| Industrial & Infrastructure Products | 56,547 | — | — | — | 56,547 | |||||||||||||||||||||||||||
| Less Inter-Segment Sales | (329) | — | — | — | (329) | |||||||||||||||||||||||||||
| 56,218 | — | — | — | 56,218 | ||||||||||||||||||||||||||||
| Consolidated sales | 262,655 | — | — | — | 262,655 | |||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 9,649 | (95) | — | — | 9,554 | |||||||||||||||||||||||||||
| Residential Products | 20,778 | 219 | 78 | — | 21,075 | |||||||||||||||||||||||||||
Industrial & Infrastructure Products | 4,069 | 1,346 | — | — | 5,415 | |||||||||||||||||||||||||||
| Segments income | 34,496 | 1,470 | 78 | — | 36,044 | |||||||||||||||||||||||||||
| Unallocated corporate expense | (7,890) | 670 | 1,770 | — | (5,450) | |||||||||||||||||||||||||||
| Consolidated income from operations | 26,606 | 2,140 | 1,848 | — | 30,594 | |||||||||||||||||||||||||||
| Interest expense | 219 | — | — | (38) | 181 | |||||||||||||||||||||||||||
Other income | (13) | — | — | — | (13) | |||||||||||||||||||||||||||
| Income before income taxes | 26,400 | 2,140 | 1,848 | 38 | 30,426 | |||||||||||||||||||||||||||
| Provision for income taxes | 6,487 | 533 | (301) | 9 | 6,728 | |||||||||||||||||||||||||||
| Net income | $ | 19,913 | $ | 1,607 | $ | 2,149 | $ | 29 | $ | 23,698 | ||||||||||||||||||||||
| Net earnings per share - diluted | $ | 0.61 | $ | 0.05 | $ | 0.07 | $ | — | $ | 0.73 | ||||||||||||||||||||||
Operating margin | ||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 12.7 | % | (0.1) | % | — | % | — | % | 12.6 | % | ||||||||||||||||||||||
| Residential Products | 15.9 | % | 0.2 | % | 0.1 | % | — | % | 16.2 | % | ||||||||||||||||||||||
| Industrial & Infrastructure Products | 7.2 | % | 2.4 | % | — | % | — | % | 9.6 | % | ||||||||||||||||||||||
| Segments margin | 13.1 | % | 0.6 | % | — | % | — | % | 13.7 | % | ||||||||||||||||||||||
Consolidated | 10.1 | % | 0.8 | % | 0.7 | % | — | % | 11.6 | % | ||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||
As Reported In GAAP Statements | Restructuring Charges | Senior Leadership Transition Costs | Acquisition Related Items | Gain on Sale of Business | Adjusted Financial Measures | |||||||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | $ | 194,756 | $ | — | $ | — | $ | — | $ | — | $ | 194,756 | ||||||||||||||||||||||||||
| Residential Products | 242,891 | — | — | — | — | 242,891 | ||||||||||||||||||||||||||||||||
| Industrial & Infrastructure Products | 98,064 | — | — | — | — | 98,064 | ||||||||||||||||||||||||||||||||
| Less Inter-Segment Sales | (458) | — | — | — | — | (458) | ||||||||||||||||||||||||||||||||
| 97,606 | — | — | — | — | 97,606 | |||||||||||||||||||||||||||||||||
| Consolidated sales | 535,253 | — | — | — | — | 535,253 | ||||||||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 14,887 | 406 | — | 2,173 | — | 17,466 | ||||||||||||||||||||||||||||||||
| Residential Products | 41,689 | 484 | — | — | — | 42,173 | ||||||||||||||||||||||||||||||||
| Industrial & Infrastructure Products | 10,633 | 312 | — | — | — | 10,945 | ||||||||||||||||||||||||||||||||
| Segments Income | 67,209 | 1,202 | — | 2,173 | — | 70,584 | ||||||||||||||||||||||||||||||||
| Unallocated corporate expense | (17,428) | 99 | 2,342 | 309 | — | (14,678) | ||||||||||||||||||||||||||||||||
| Consolidated income from operations | 49,781 | 1,301 | 2,342 | 2,482 | — | 55,906 | ||||||||||||||||||||||||||||||||
| Interest expense | 167 | — | — | — | — | 167 | ||||||||||||||||||||||||||||||||
| Other (income) expense | (1,595) | — | — | — | 1,881 | 286 | ||||||||||||||||||||||||||||||||
| Income before income taxes | 51,209 | 1,301 | 2,342 | 2,482 | (1,881) | 55,453 | ||||||||||||||||||||||||||||||||
| Provision for income taxes | 11,858 | 309 | — | 590 | (469) | 12,288 | ||||||||||||||||||||||||||||||||
| Net income | $ | 39,351 | $ | 992 | $ | 2,342 | $ | 1,892 | $ | (1,412) | $ | 43,165 | ||||||||||||||||||||||||||
| Net earnings per share – diluted | $ | 1.20 | $ | 0.03 | $ | 0.07 | $ | 0.05 | $ | (0.04) | $ | 1.31 | ||||||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 7.6 | % | 0.2 | % | — | % | 1.1 | % | — | % | 9.0 | % | ||||||||||||||||||||||||||
| Residential Products | 17.2 | % | 0.2 | % | — | % | — | % | — | % | 17.4 | % | ||||||||||||||||||||||||||
| Industrial & Infrastructure Products | 10.9 | % | 0.3 | % | — | % | — | % | — | % | 11.2 | % | ||||||||||||||||||||||||||
| Segments Margin | 12.6 | % | 0.2 | % | — | % | 0.4 | % | — | % | 13.2 | % | ||||||||||||||||||||||||||
| Consolidated | 9.3 | % | 0.2 | % | 0.4 | % | 0.5 | % | — | % | 10.4 | % | ||||||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||
As Reported In GAAP Statements | Restructuring and Acquisition Related Items | Senior Leadership Transition Costs | Debt Repayment | Adjusted Financial Measures | ||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | $ | 144,841 | $ | — | $ | — | $ | — | $ | 144,841 | ||||||||||||||||||||||
| Residential Products | 234,142 | — | — | — | 234,142 | |||||||||||||||||||||||||||
| Industrial & Infrastructure Products | 111,735 | — | — | — | 111,735 | |||||||||||||||||||||||||||
| Less Inter-Segment Sales | (646) | — | — | — | (646) | |||||||||||||||||||||||||||
| 111,089 | — | — | — | 111,089 | ||||||||||||||||||||||||||||
| Consolidated sales | 490,072 | — | — | — | 490,072 | |||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 11,281 | (1) | — | — | 11,280 | |||||||||||||||||||||||||||
| Residential Products | 32,868 | 370 | 78 | — | 33,316 | |||||||||||||||||||||||||||
Industrial & Infrastructure Products | 8,198 | 1,313 | — | — | 9,511 | |||||||||||||||||||||||||||
| Segments income | 52,347 | 1,682 | 78 | — | 54,107 | |||||||||||||||||||||||||||
| Unallocated corporate expense | (15,175) | 677 | 4,265 | — | (10,233) | |||||||||||||||||||||||||||
| Consolidated income from operations | 37,172 | 2,359 | 4,343 | — | 43,874 | |||||||||||||||||||||||||||
| Interest expense | 2,280 | — | — | (1,079) | 1,201 | |||||||||||||||||||||||||||
Other expense | 576 | — | — | — | 576 | |||||||||||||||||||||||||||
| Income before income taxes | 34,316 | 2,359 | 4,343 | 1,079 | 42,097 | |||||||||||||||||||||||||||
| Provision for income taxes | 8,058 | 587 | 320 | 269 | 9,234 | |||||||||||||||||||||||||||
| Net income | $ | 26,258 | $ | 1,772 | $ | 4,023 | $ | 810 | $ | 32,863 | ||||||||||||||||||||||
| Net earnings per share - diluted | $ | 0.80 | $ | 0.06 | $ | 0.12 | $ | 0.03 | $ | 1.01 | ||||||||||||||||||||||
Operating margin | ||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 7.8 | % | — | % | — | % | — | % | 7.8 | % | ||||||||||||||||||||||
| Residential Products | 14.0 | % | 0.2 | % | — | % | — | % | 14.2 | % | ||||||||||||||||||||||
| Industrial & Infrastructure Products | 7.4 | % | 1.2 | % | — | % | — | % | 8.6 | % | ||||||||||||||||||||||
| Segments margin | 10.7 | % | 0.3 | % | — | % | — | % | 11.0 | % | ||||||||||||||||||||||
Consolidated | 7.6 | % | 0.5 | % | 0.9 | % | — | % | 9.0 | % | ||||||||||||||||||||||