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 25, 2021
(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 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers | 3 | ||||||||||||||||
| Item 7.01 Regulation FD Disclosure | 3 | ||||||||||||||||
| Item 8.01 Other Events | 4 | ||||||||||||||||
| Item 9.01 Financial Statements and Exhibits | 4 | ||||||||||||||||
| SIGNATURE | 5 | ||||||||||||||||
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 25, 2021, 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, 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 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers
New Directors
On February 24, 2021, the Company’s Board of Directors appointed Gwen G. Mizell and Manish H. Shah to the Board of Directors of the Company, effective immediately. Ms. Mizell will serve on the Compensation and Human Capital, and Nominating, Governance and Corporate Social Responsibility Committees. Mr. Shah will serve on the Audit and Risk, and Capital Structure and Asset Management Committees.
As members of the Company’s Board of Directors, Ms. Mizell and Mr. Shah are each entitled to an annualized cash retainer equal to $60,000 and an annualized grant of shares of the Company’s common stock having an aggregate value of $95,000.
In addition, as members of the aforementioned committees, Ms. Mizell and Mr. Shah are each entitled to annualized cash retainers of $10,000 for each committee. Pursuant to the terms of the Company’s Management Stock Purchase Plan, Ms. Mizell and Mr. Shah each have the right to defer the receipt of their cash retainers and any such cash deferral will be used to acquire restricted stock units which will be payable to Ms. Mizell and Mr. Shah in cash following the termination of their Board service. In addition, pursuant to the terms of the Company’s Non-Employee Director Stock Plan, Ms. Mizell and Mr. Shah have the right to defer the receipt of the shares of the Company’s common stock which they are entitled to receive.
Departure of Directors
In conjunction with the new director appointments, the Company announced the retirement of Sharon M. Brady and Vinod M. Khilnani from the Board of Directors of the Company. Ms. Brady and Mr. Khilnani will serve the remainder of their current Board terms but will not stand for re-election at Gibraltar's next Annual Meeting, which is expected to be held in May 2021. Ms. Brady's and Mr. Khilnani's planned retirements, which were accepted by the Board, are not the result of any disagreement with the Company. To accommodate the appointments of Ms. Mizell and Mr. Shah, the number of persons constituting the entire Board of Directors of the Company has temporarily been increased to eleven members and will return to nine members upon Ms. Brady's and Mr. Khilnani's retirements.
A copy of the news release related to the appointments and departures is furnished herewith as Exhibit 99.2.
3
Item 8.01 Other Events
On February 23, 2021, the Company sold the stock of its Industrial business for net proceeds of approximately $38 million, consisting of $25 million in cash and a $13 million seller note, subject to working capital adjustments. The Industrial business was classified as held for sale and reported as discontinued operations in the Company's consolidated financial statements on its Form 10-K for the year ended December 31, 2020. The estimated loss on the sale of this business is $29.6 million.
A copy of the news release related to the sale of our Industrial business is furnished herewith as Exhibit 99.3.
Item 9.01 Financial Statements and Exhibits
(a)-(c) Not Applicable
(d) Exhibits:
| Exhibit No. | Description | |||||||
4
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 25, 2021 | |||||||||||||
| By: | /s/ Jeffrey J. Watorek | |||||||||||||
| Jeffrey J. Watorek | ||||||||||||||
| Vice President, Treasurer and Secretary | ||||||||||||||
5
Gibraltar Announces Full Year And Fourth Quarter 2020 Financial Results
Gibraltar Delivers Record Revenue and EPS performance in 2020
2020 Revenues Grow 15%, GAAP, Adjusted EPS Expands 38% and 18%, Respectively
Q4 Revenues Improves 17%, GAAP, Adjusted EPS Up 15% and 4%, Respectively
Backlog 50% Higher on Continued Renewable Energy and Conservation Demand
Buffalo, New York, February 25, 2021 - Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the renewable energy, conservation, residential and infrastructure markets, today reported its financial results for the three-month period ended December 31, 2020. Results of TerraSmart, acquired at the end of the day on December 31, 2020, had no impact on operations in 2020 in reported results.
“Overall, we delivered record performance in 2020 while remaining very focused on the health and well-being of our people, operations, customers, and communities. We also worked on the business, executed key initiatives, and generated strong cash flow, enabling material investments to support our long term strategy,” said President and Chief Executive Officer Bill Bosway. “Our fourth quarter performance was solid with revenue increasing 17% and adjusted EPS increasing 4%, and we enter 2021 with a strong backlog of approximately $300 million, up 50%, and a strong balance sheet and cash flow profile to continue driving our key initiatives.”
Fourth Quarter 2020 Consolidated Results from Continuing Operations*
Gibraltar reported the following consolidated results from continuing operations:
| Three Months Ended December 31, | |||||||||||||||||||||||
| Dollars in millions, except EPS | GAAP | Adjusted | |||||||||||||||||||||
| 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||
| Net Sales | $265.2 | $226.0 | 17.3% | $265.2 | $226.0 | 17.3% | |||||||||||||||||
| Net Income | $17.6 | $15.0 | 17.3% | $19.5 | $18.6 | 4.8% | |||||||||||||||||
| Diluted EPS | $0.53 | $0.46 | 15.2% | $0.59 | $0.57 | 3.5% | |||||||||||||||||
Fourth quarter 2020 net sales from continuing operations increased 17.3% to $265.2 million, driven by the Residential Products and Renewable Energy & Conservation segments. Of the 17.3% increase, organic growth accounted for 3.6%, and recent acquisitions contributed 13.7%.
GAAP earnings increased 17.3% to $17.6 million, or $0.53 per share, while adjusted earnings increased 4.8% to $19.5 million, or $0.59 per share, the result of organic growth and continued margin expansion in the Residential Products segment, product and services mix, favorable alignment of price to material costs, and ongoing benefits from operational excellence initiatives. Adjusted measures remove charges for restructuring initiatives, acquisition-related items, senior leadership transition costs, and other reclassifications, as further described in the appended reconciliation of adjusted financial measures.
*Gibraltar has classified the Industrial business as a discontinued operation with fourth quarter 2020 results. Included in fourth quarter 2020 loss from discontinued operations of $26.1 million is a non-cash loss of $29.6 million related to the disposal of this business.
Fourth Quarter Segment Results
Renewable Energy & Conservation
The acquisition of TerraSmart, an important addition to Gibraltar’s renewable energy business, was completed on December 31, 2020. TerraSmart delivered 2020 revenue of $157 million and adjusted EBITDA of $26 million, in line with expectations creating a business with approximately $400M in revenue and operating margin in excess of 12% on a Pro Forma basis as we enter 2021. TerraSmart’s 2020 results did not impact Gibraltar’s Q4 2020 results.
For the fourth quarter, the Renewable Energy & Conservation segment reported:
| Three Months Ended December 31, | |||||||||||||||||||||||
| Dollars in millions | GAAP | Adjusted | |||||||||||||||||||||
| 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||
| Net Sales | $124.6 | $111.4 | 11.8% | $124.6 | $111.4 | 11.8% | |||||||||||||||||
| Operating Margin | 9.4% | 14.9% | (550) bps | 9.7% | 15.2% | (550) bps | |||||||||||||||||
Segment revenue increased 11.8% driven by growth from acquisitions. Organic revenue slowed during the quarter driven by certain market dynamics. Solar customers experienced unanticipated solar panel supply challenges and building permit delays causing temporary delays to existing projects slated for the fourth quarter. In the conservation business, market conditions for greenhouse structures and processing extraction equipment serving the cannabis and hemp markets remain slow, but the positive momentum in order activity and backlog over the last 60 days supports our previous expectation of these two markets being solid in 2021. Total segment backlog continued to grow, increasing 55%, driven by continued strength in both solar energy and organic produce end markets.
Adjusted operating margin performance was driven by a reduction in solar volume as existing solar projects moved into 2021. We expect the solar panel supply challenges to subside in the first half of 2021. We also experienced a delay to our integration plan of Thermo Energy Systems (TES), which is located in Canada, due to mandated Covid-19 visitation and travel restrictions between the U.S. and Canada. The slower greenhouse structures and processing equipment market for cannabis and hemp impacted volume and productivity initiatives in the quarter creating a margin drag accordingly.
Residential Products
For the fourth quarter, the Residential Products segment reported:
| Three Months Ended December 31, | |||||||||||||||||||||||
| Dollars in millions | GAAP | Adjusted | |||||||||||||||||||||
| 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||
| Net Sales | $128.2 | $101.2 | 26.7% | $128.2 | $101.2 | 26.7% | |||||||||||||||||
| Operating Margin | 15.8% | 13.0% | 280 bps | 15.9% | 13.1% | 280 bps | |||||||||||||||||
Segment revenue increased 26.7% as the residential market continued to show solid activity, with strong demand and participation gains across all channels. Organic growth was 21.4%, with the acquired Architectural Mailboxes business contributing 5.3% growth. Adjusted operating margin increased with consistent execution on higher volume, and additional 80/20 initiatives.
Infrastructure Products
As noted above, Gibraltar completed the sale of the Industrial business on February 23, 2021. The results of the Industrial business are included as discontinued operations and the assets and liabilities have been reclassified as held-for-sale in fourth quarter 2020 results.
For the fourth quarter, the Infrastructure Products segment reported:
| Three Months Ended December 31, | |||||||||||||||||||||||
| Dollars in millions | GAAP | Adjusted | |||||||||||||||||||||
| 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||
| Net Sales | $12.4 | $13.4 | (7.5)% | $12.4 | $13.4 | (7.5)% | |||||||||||||||||
| Operating Margin | 4.6% | 5.8% | (120) bps | 6.4% | 5.8% | 60 bps | |||||||||||||||||
Segment revenue decreased 7.5% as the pandemic continued to impact existing and new project schedules, especially in segments like airport runway maintenance, where customers have delayed spending. The increase in adjusted operating margin was driven by strong execution in fabricated product sales which has offset a decline in our higher margin non-fabricated product lines. Infrastructure backlog improved modestly, but bidding activity has approached record levels moving into 2021.
Business Outlook
“We enter 2021 with momentum across our businesses and confidence in our end markets, and we will continue executing our operating playbook, maintaining a safe environment for our people and supporting our customers,” Mr. Bosway concluded. “Although we are dealing with challenging short term market dynamics, I am confident we will deliver full year growth and margin expansion in 2021.”
Gibraltar is providing guidance for revenue and earnings for the full year 2021. Consolidated revenue is expected to range between $1.3 billion and $1.35 billion. GAAP EPS is expected to range between $2.78 and $2.95, compared to $2.53 in 2020, and adjusted EPS is expected to range between $3.30 and $3.47, compared to $2.73 in 2020.
| Gibraltar Industries | |||||||||||||||||||||||||||||||||||
Dollars in millions, except EPS | Operating | Income | Net | Diluted Earnings | |||||||||||||||||||||||||||||||
| Revenue | Income | Margin | Taxes | Income | Per Share | ||||||||||||||||||||||||||||||
| GAAP Measures | $1.3B - $1.35B | $127-135 | 9.8-10.0% | $36-38 | $92-98 | $2.78-2.95 | |||||||||||||||||||||||||||||
| Adjustments | 22 | 1.7 | % | 4 | 17 | 0.52 | |||||||||||||||||||||||||||||
| Adjusted Measures | $149-157 | 11.5-11.7% | $40-42 | $109-115 | $3.30-3.47 | ||||||||||||||||||||||||||||||
Fourth 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 fourth quarter of 2020. Interested parties may access the webcast through the Investors section of the Company’s website at www.gibraltar1.com or dial into the call at (877) 407-3088 or (201) 389-0927. For interested individuals unable to join the live conference call, a webcast replay will be available on the Company’s website for one year.
About Gibraltar
Gibraltar Industries is a leading manufacturer and provider of products and services for the renewable energy, conservation, residential, 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, restatement of previously reported adjusted financial measures to account for discontinued operations 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 December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| Net Sales | $ | 265,201 | $ | 226,034 | $ | 1,032,578 | $ | 898,233 | |||||||||||||||
| Cost of sales | 202,775 | 168,608 | 776,235 | 678,336 | |||||||||||||||||||
| Gross profit | 62,426 | 57,426 | 256,343 | 219,897 | |||||||||||||||||||
| Selling, general, and administrative expense | 39,704 | 37,193 | 149,153 | 139,085 | |||||||||||||||||||
| Income from operations | 22,722 | 20,233 | 107,190 | 80,812 | |||||||||||||||||||
| Interest expense (income) | 220 | (5) | 703 | 2,323 | |||||||||||||||||||
| Other expense (income) | 150 | 192 | (1,272) | 408 | |||||||||||||||||||
| Income before taxes | 22,352 | 20,046 | 107,759 | 78,081 | |||||||||||||||||||
| Provision for income taxes | 4,754 | 5,003 | 24,468 | 18,153 | |||||||||||||||||||
| Income from continuing operations | 17,598 | 15,043 | 83,291 | 59,928 | |||||||||||||||||||
| Discontinued operations: | |||||||||||||||||||||||
| (Loss) income before taxes | (25,992) | (918) | (16,602) | 6,682 | |||||||||||||||||||
| Provision for (benefit of) income taxes | 151 | (232) | 2,123 | 1,519 | |||||||||||||||||||
| (Loss) income from discontinued operations | (26,143) | (686) | (18,725) | 5,163 | |||||||||||||||||||
| Net (loss) income | $ | (8,545) | $ | 14,357 | $ | 64,566 | $ | 65,091 | |||||||||||||||
| Net earnings per share – Basic: | |||||||||||||||||||||||
| Income from continuing operations | $ | 0.54 | $ | 0.46 | $ | 2.55 | $ | 1.85 | |||||||||||||||
| (Loss) income from discontinued operations | (0.80) | (0.02) | (0.57) | 0.16 | |||||||||||||||||||
| Net (loss) income | $ | (0.26) | $ | 0.44 | $ | 1.98 | $ | 2.01 | |||||||||||||||
| Weighted average shares outstanding -- Basic | 32,719 | 32,505 | 32,664 | 32,389 | |||||||||||||||||||
| Net earnings per share – Diluted: | |||||||||||||||||||||||
| Income from continuing operations | $ | 0.53 | $ | 0.46 | $ | 2.53 | $ | 1.83 | |||||||||||||||
| (Loss) income from discontinued operations | (0.79) | (0.02) | (0.57) | 0.16 | |||||||||||||||||||
| Net (loss) income | $ | (0.26) | $ | 0.44 | $ | 1.96 | $ | 1.99 | |||||||||||||||
| Weighted average shares outstanding -- Diluted | 33,016 | 32,880 | 32,918 | 32,722 | |||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
| December 31, 2020 | December 31, 2019 | ||||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 32,054 | $ | 191,363 | |||||||
| Accounts receivable, net | 197,990 | 133,895 | |||||||||
| Inventories, net | 98,307 | 61,957 | |||||||||
| Prepaid expenses and other current assets | 19,671 | 18,959 | |||||||||
| Assets of discontinued operations | 77,438 | 30,928 | |||||||||
| Total current assets | 425,460 | 437,102 | |||||||||
| Property, plant, and equipment, net | 89,562 | 78,152 | |||||||||
| Operating lease assets | 25,229 | 21,201 | |||||||||
| Goodwill | 514,279 | 307,355 | |||||||||
| Acquired intangibles | 156,365 | 76,734 | |||||||||
| Other assets | 1,599 | 1,980 | |||||||||
| Assets of discontinued operations | — | 61,926 | |||||||||
| $ | 1,212,494 | $ | 984,450 | ||||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 134,738 | $ | 72,628 | |||||||
| Accrued expenses | 83,505 | 86,597 | |||||||||
| Billings in excess of cost | 34,702 | 47,598 | |||||||||
| Liabilities of discontinued operations | 49,295 | 22,374 | |||||||||
| Total current liabilities | 302,240 | 229,197 | |||||||||
| Long-term debt | 85,636 | — | |||||||||
| Deferred income taxes | 39,057 | 35,404 | |||||||||
| Non-current operating lease liabilities | 17,730 | 14,943 | |||||||||
| Other non-current liabilities | 24,026 | 21,272 | |||||||||
| Liabilities of discontinued operations | — | 9,670 | |||||||||
| Shareholders’ equity: | |||||||||||
| Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding | — | — | |||||||||
| Common stock, $0.01 par value; authorized 50,000 shares; 33,568 and 33,192 shares issued in 2020 and 2019 | 336 | 332 | |||||||||
| Additional paid-in capital | 304,870 | 295,582 | |||||||||
| Retained earnings | 469,943 | 405,668 | |||||||||
| Accumulated other comprehensive loss | (2,461) | (5,391) | |||||||||
| Cost of 1,028 and 906 common shares held in treasury in 2020 and 2019 | (28,883) | (22,227) | |||||||||
| Total shareholders’ equity | 743,805 | 673,964 | |||||||||
| $ | 1,212,494 | $ | 984,450 | ||||||||
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)
| Twelve Months Ended December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| Cash Flows from Operating Activities | |||||||||||
| Net income | $ | 64,566 | $ | 65,091 | |||||||
| (Loss) income from discontinued operations | (18,725) | 5,163 | |||||||||
| Income from continuing operations | 83,291 | 59,928 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 20,915 | 17,557 | |||||||||
| Stock compensation expense | 8,173 | 12,570 | |||||||||
| Gain on sale of business | (1,881) | — | |||||||||
| Exit activity costs, non-cash | 493 | 408 | |||||||||
| Provision for deferred income taxes | 3,786 | 4,120 | |||||||||
| Other, net | 1,944 | 5,399 | |||||||||
| Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||||||||||
| Accounts receivable | 2,277 | (11,256) | |||||||||
| Inventories | (5,719) | 14,272 | |||||||||
| Other current assets and other assets | 5,467 | (9,306) | |||||||||
| Accounts payable | (1,160) | 4,804 | |||||||||
| Accrued expenses and other non-current liabilities | (44,570) | 14,040 | |||||||||
| Net cash provided by operating activities of continuing operations | 73,016 | 112,536 | |||||||||
| Net cash provided by operating activities of discontinued operations | 16,088 | 17,399 | |||||||||
| Net cash provided by operating activities | 89,104 | 129,935 | |||||||||
| Cash Flows from Investing Activities | |||||||||||
| Acquisitions, net of cash acquired | (313,686) | (8,595) | |||||||||
| Net proceeds from sale of property and equipment | 77 | 92 | |||||||||
| Purchases of property, plant, and equipment | (13,068) | (8,776) | |||||||||
| Net proceeds from sale of business | 2,000 | — | |||||||||
| Net cash used in investing activities of continuing operations | (324,677) | (17,279) | |||||||||
| Net cash used in investing activities of discontinued operations | (2,033) | (2,394) | |||||||||
| Net cash used in investing activities | (326,710) | (19,673) | |||||||||
| Cash Flows from Financing Activities | |||||||||||
| Proceeds from long-term debt | 85,000 | — | |||||||||
| Long-term debt payments | — | (212,000) | |||||||||
| Payment of debt issuance costs | — | (1,235) | |||||||||
| Purchase of treasury stock at market prices | (6,656) | (4,305) | |||||||||
| Net proceeds from issuance of common stock | 1,119 | 490 | |||||||||
| Net cash provided by (used in) financing activities | 79,463 | (217,050) | |||||||||
| Effect of exchange rate changes on cash | (1,166) | 1,145 | |||||||||
| Net decrease in cash and cash equivalents | (159,309) | (105,643) | |||||||||
| Cash and cash equivalents at beginning of year | 191,363 | 297,006 | |||||||||
| Cash and cash equivalents at end of year | $ | 32,054 | $ | 191,363 | |||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Three Months Ended December 31, 2020 | ||||||||||||||||||||||||||||||||
| As Reported In GAAP Statements | Restructuring Charges | Senior Leadership Transition Costs | Acquisition Related Items | Adjusted Financial Measures | ||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | $ | 124,553 | $ | — | $ | — | $ | — | $ | 124,553 | ||||||||||||||||||||||
| Residential Products | 128,205 | — | — | — | 128,205 | |||||||||||||||||||||||||||
| Infrastructure Products | 12,443 | — | — | — | 12,443 | |||||||||||||||||||||||||||
| Consolidated sales | 265,201 | — | — | — | 265,201 | |||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 11,656 | 369 | — | 34 | 12,059 | |||||||||||||||||||||||||||
| Residential Products | 20,287 | 70 | — | — | 20,357 | |||||||||||||||||||||||||||
| Infrastructure Products | 573 | 226 | — | — | 799 | |||||||||||||||||||||||||||
| Segments Income | 32,516 | 665 | — | 34 | 33,215 | |||||||||||||||||||||||||||
| Unallocated corporate expense | (9,794) | 259 | 14 | 1,666 | (7,855) | |||||||||||||||||||||||||||
| Consolidated income from operations | 22,722 | 924 | 14 | 1,700 | 25,360 | |||||||||||||||||||||||||||
| Interest expense | 220 | — | — | — | 220 | |||||||||||||||||||||||||||
| Other expense | 150 | — | — | — | 150 | |||||||||||||||||||||||||||
| Income before income taxes | 22,352 | 924 | 14 | 1,700 | 24,990 | |||||||||||||||||||||||||||
| Provision for income taxes | 4,754 | 251 | — | 439 | 5,444 | |||||||||||||||||||||||||||
| Income from continuing operations | $ | 17,598 | $ | 673 | $ | 14 | $ | 1,261 | $ | 19,546 | ||||||||||||||||||||||
| Income from continuing operations per share – diluted | $ | 0.53 | $ | 0.02 | $ | — | $ | 0.04 | $ | 0.59 | ||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 9.4 | % | 0.3 | % | — | % | — | % | 9.7 | % | ||||||||||||||||||||||
| Residential Products | 15.8 | % | 0.1 | % | — | % | — | % | 15.9 | % | ||||||||||||||||||||||
| Infrastructure Products | 4.6 | % | 1.8 | % | — | % | — | % | 6.4 | % | ||||||||||||||||||||||
| Segments Margin | 12.3 | % | 0.3 | % | — | % | — | % | 12.5 | % | ||||||||||||||||||||||
| Consolidated | 8.6 | % | 0.3 | % | — | % | 0.6 | % | 9.6 | % | ||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Three Months Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
| As Previously Reported In GAAP Statements | Discontinued Operations Restatement | As Reported In GAAP Statements | Restructuring & Acquisition Related Items | Senior Leadership Transition Costs | Adjusted Financial Measures | |||||||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | $ | 111,411 | $ | — | $ | 111,411 | $ | — | $ | — | $ | 111,411 | ||||||||||||||||||||||||||
| Residential Products | 101,213 | — | 101,213 | — | — | 101,213 | ||||||||||||||||||||||||||||||||
| Infrastructure Products | 45,709 | (32,299) | 13,410 | — | — | 13,410 | ||||||||||||||||||||||||||||||||
| Less Inter-Segment Sales | (202) | 202 | — | — | — | — | ||||||||||||||||||||||||||||||||
| 45,507 | (32,097) | 13,410 | — | — | 13,410 | |||||||||||||||||||||||||||||||||
| Consolidated sales | 258,131 | (32,097) | 226,034 | — | — | 226,034 | ||||||||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 16,644 | — | 16,644 | 288 | — | 16,932 | ||||||||||||||||||||||||||||||||
| Residential Products | 13,167 | — | 13,167 | 72 | — | 13,239 | ||||||||||||||||||||||||||||||||
| Infrastructure Products | (205) | 986 | 781 | — | — | 781 | ||||||||||||||||||||||||||||||||
| Segments income | 29,606 | 986 | 30,592 | 360 | — | 30,952 | ||||||||||||||||||||||||||||||||
| Unallocated corporate expense | (10,359) | — | (10,359) | 752 | 2,693 | (6,914) | ||||||||||||||||||||||||||||||||
| Consolidated income from operations | 19,247 | 986 | 20,233 | 1,112 | 2,693 | 24,038 | ||||||||||||||||||||||||||||||||
| Interest income | (92) | 87 | (5) | — | — | (5) | ||||||||||||||||||||||||||||||||
| Other expense | 211 | (19) | 192 | — | — | 192 | ||||||||||||||||||||||||||||||||
| Income before income taxes | 19,128 | 918 | 20,046 | 1,112 | 2,693 | 23,851 | ||||||||||||||||||||||||||||||||
| Provision for income taxes | 4,771 | 232 | 5,003 | 91 | 134 | 5,228 | ||||||||||||||||||||||||||||||||
| Income from continuing operations | $ | 14,357 | $ | 686 | $ | 15,043 | $ | 1,021 | $ | 2,559 | $ | 18,623 | ||||||||||||||||||||||||||
| Income from continuing operations per share – diluted | $ | 0.44 | $ | 0.02 | $ | 0.46 | $ | 0.03 | $ | 0.08 | $ | 0.57 | ||||||||||||||||||||||||||
Operating margin | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 14.9 | % | 14.9 | % | 0.3 | % | — | % | 15.2 | % | ||||||||||||||||||||||||||||
| Residential Products | 13.0 | % | 13.0 | % | 0.1 | % | — | % | 13.1 | % | ||||||||||||||||||||||||||||
| Infrastructure Products | (0.5) | % | 5.8 | % | — | % | — | % | 5.8 | % | ||||||||||||||||||||||||||||
| Segments margin | 11.5 | % | 13.5 | % | 0.2 | % | — | % | 13.7 | % | ||||||||||||||||||||||||||||
Consolidated | 7.5 | % | 9.0 | % | 0.5 | % | 1.2 | % | 10.6 | % | ||||||||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Twelve Months Ended December 31, 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 | $ | 447,567 | $ | — | $ | — | $ | — | $ | — | $ | 447,567 | ||||||||||||||||||||||||||
| Residential Products | 522,814 | — | — | — | — | 522,814 | ||||||||||||||||||||||||||||||||
| Infrastructure Products | 62,197 | — | — | — | — | 62,197 | ||||||||||||||||||||||||||||||||
| Consolidated sales | 1,032,578 | — | — | — | — | 1,032,578 | ||||||||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 40,738 | 947 | — | 2,779 | — | 44,464 | ||||||||||||||||||||||||||||||||
| Residential Products | 94,430 | 740 | — | — | — | 95,170 | ||||||||||||||||||||||||||||||||
| Infrastructure Products | 7,233 | 226 | — | — | — | 7,459 | ||||||||||||||||||||||||||||||||
| Segments Income | 142,401 | 1,913 | — | 2,779 | — | 147,093 | ||||||||||||||||||||||||||||||||
| Unallocated corporate expense | (35,211) | 375 | 2,526 | 1,991 | — | (30,319) | ||||||||||||||||||||||||||||||||
| Consolidated income from operations | 107,190 | 2,288 | 2,526 | 4,770 | — | 116,774 | ||||||||||||||||||||||||||||||||
| Interest expense | 703 | — | — | — | — | 703 | ||||||||||||||||||||||||||||||||
| Other (income) expense | (1,272) | — | — | — | 1,881 | 609 | ||||||||||||||||||||||||||||||||
| Income before income taxes | 107,759 | 2,288 | 2,526 | 4,770 | (1,881) | 115,462 | ||||||||||||||||||||||||||||||||
| Provision for income taxes | 24,468 | 547 | — | 1,164 | (469) | 25,710 | ||||||||||||||||||||||||||||||||
| Income from continuing operations | $ | 83,291 | $ | 1,741 | $ | 2,526 | $ | 3,606 | $ | (1,412) | $ | 89,752 | ||||||||||||||||||||||||||
| Income from continuing operations per share – diluted | $ | 2.53 | $ | 0.05 | $ | 0.08 | $ | 0.11 | $ | (0.04) | $ | 2.73 | ||||||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 9.1 | % | 0.2 | % | — | % | 0.6 | % | — | % | 9.9 | % | ||||||||||||||||||||||||||
| Residential Products | 18.1 | % | 0.1 | % | — | % | — | % | — | % | 18.2 | % | ||||||||||||||||||||||||||
| Infrastructure Products | 11.6 | % | 0.4 | % | — | % | — | % | — | % | 12.0 | % | ||||||||||||||||||||||||||
| Segments Margin | 13.8 | % | 0.2 | % | — | % | 0.3 | % | — | % | 14.2 | % | ||||||||||||||||||||||||||
| Consolidated | 10.4 | % | 0.2 | % | 0.2 | % | 0.5 | % | — | % | 11.3 | % | ||||||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Twelve Months Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
| As Previously Reported In GAAP Statements | Discontinued Operations Restatement | As Reported In GAAP Statements | Restructuring, Acquisition & Debt Repayment Costs | Senior Leadership Transition Costs | Adjusted Financial Measures | |||||||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | $ | 373,023 | $ | — | $ | 373,023 | $ | — | $ | — | $ | 373,023 | ||||||||||||||||||||||||||
| Residential Products | 461,630 | — | 461,630 | — | — | 461,630 | ||||||||||||||||||||||||||||||||
| Infrastructure Products | 213,805 | (150,225) | 63,580 | — | — | 63,580 | ||||||||||||||||||||||||||||||||
| Less Inter-Segment Sales | (1,019) | 1,019 | — | — | — | — | ||||||||||||||||||||||||||||||||
| 212,786 | (149,206) | 63,580 | — | — | 63,580 | |||||||||||||||||||||||||||||||||
| Consolidated sales | 1,047,439 | (149,206) | 898,233 | — | — | 898,233 | ||||||||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 47,558 | — | 47,558 | 1,490 | — | 49,048 | ||||||||||||||||||||||||||||||||
| Residential Products | 63,047 | — | 63,047 | 3,857 | 78 | 66,982 | ||||||||||||||||||||||||||||||||
| Infrastructure Products | 13,455 | (7,027) | 6,428 | — | — | 6,428 | ||||||||||||||||||||||||||||||||
| Segments income | 124,060 | (7,027) | 117,033 | 5,347 | 78 | 122,458 | ||||||||||||||||||||||||||||||||
| Unallocated corporate expense | (36,221) | — | (36,221) | 2,145 | 9,666 | (24,410) | ||||||||||||||||||||||||||||||||
| Consolidated income from operations | 87,839 | (7,027) | 80,812 | 7,492 | 9,744 | 98,048 | ||||||||||||||||||||||||||||||||
| Interest expense | 2,205 | 118 | 2,323 | (1,079) | — | 1,244 | ||||||||||||||||||||||||||||||||
| Other expense | 871 | (463) | 408 | — | — | 408 | ||||||||||||||||||||||||||||||||
| Income before income taxes | 84,763 | (6,682) | 78,081 | 8,571 | 9,744 | 96,396 | ||||||||||||||||||||||||||||||||
| Provision for income taxes | 19,672 | (1,519) | 18,153 | 2,080 | 615 | 20,848 | ||||||||||||||||||||||||||||||||
| Income from continuing operations | $ | 65,091 | $ | (5,163) | $ | 59,928 | $ | 6,491 | $ | 9,129 | $ | 75,548 | ||||||||||||||||||||||||||
| Income from continuing operations per share – diluted | $ | 1.99 | $ | (0.16) | $ | 1.83 | $ | 0.20 | $ | 0.28 | $ | 2.31 | ||||||||||||||||||||||||||
Operating margin | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 12.7 | % | 12.7 | % | 0.4 | % | — | % | 13.1 | % | ||||||||||||||||||||||||||||
| Residential Products | 13.7 | % | 13.7 | % | 0.8 | % | — | % | 14.5 | % | ||||||||||||||||||||||||||||
| Infrastructure Products | 6.3 | % | 10.1 | % | — | % | — | % | 10.1 | % | ||||||||||||||||||||||||||||
| Segments margin | 11.8 | % | 13.0 | % | 0.6 | % | — | % | 13.6 | % | ||||||||||||||||||||||||||||
Consolidated | 8.4 | % | 9.0 | % | 0.8 | % | 1.1 | % | 10.9 | % | ||||||||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||||||||||
| As Previously Reported In GAAP Statements | Discontinued Operations Restatement | As Reported in GAAP Statements | Restructuring & Senior Leadership Transition Costs | Acquisition Related Items | Adjusted Financial Measures | |||||||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | $ | 96,497 | $ | — | $ | 96,497 | $ | — | $ | — | $ | 96,497 | ||||||||||||||||||||||||||
| Residential Products | 103,419 | — | 103,419 | — | — | 103,419 | ||||||||||||||||||||||||||||||||
| Infrastructure Products | 49,801 | (34,316) | 15,485 | — | — | 15,485 | ||||||||||||||||||||||||||||||||
| Less Inter-Segment Sales | (278) | 278 | — | — | — | — | ||||||||||||||||||||||||||||||||
| 49,523 | (34,038) | 15,485 | — | — | 15,485 | |||||||||||||||||||||||||||||||||
| Consolidated sales | 249,439 | (34,038) | 215,401 | — | — | 215,401 | ||||||||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 5,699 | — | 5,699 | 18 | 1,001 | 6,718 | ||||||||||||||||||||||||||||||||
| Residential Products | 13,725 | — | 13,725 | 221 | — | 13,946 | ||||||||||||||||||||||||||||||||
| Infrastructure Products | 3,989 | (2,413) | 1,576 | — | — | 1,576 | ||||||||||||||||||||||||||||||||
| Segment Income | 23,413 | (2,413) | 21,000 | 239 | 1,001 | 22,240 | ||||||||||||||||||||||||||||||||
| Unallocated corporate expense | (8,223) | — | (8,223) | 2,280 | 259 | (5,684) | ||||||||||||||||||||||||||||||||
| Consolidated income from operations | 15,190 | (2,413) | 12,777 | 2,519 | 1,260 | 16,556 | ||||||||||||||||||||||||||||||||
| Interest (income) expense | (47) | 91 | 44 | — | — | 44 | ||||||||||||||||||||||||||||||||
| Other expense | 192 | 326 | 518 | — | — | 518 | ||||||||||||||||||||||||||||||||
| Income before income taxes | 15,045 | (2,830) | 12,215 | 2,519 | 1,260 | 15,994 | ||||||||||||||||||||||||||||||||
| Provision for income taxes | 2,986 | (673) | 2,313 | 59 | 316 | 2,688 | ||||||||||||||||||||||||||||||||
| Income from continuing operations | $ | 12,059 | $ | (2,157) | $ | 9,902 | $ | 2,460 | $ | 944 | $ | 13,306 | ||||||||||||||||||||||||||
| Income from continuing operations per share – diluted | $ | 0.37 | $ | (0.07) | $ | 0.30 | $ | 0.07 | $ | 0.03 | $ | 0.40 | ||||||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 5.9 | % | 5.9 | % | — | % | 1.0 | % | 7.0 | % | ||||||||||||||||||||||||||||
| Residential Products | 13.3 | % | 13.3 | % | 0.2 | % | — | % | 13.5 | % | ||||||||||||||||||||||||||||
| Infrastructure Products | 8.1 | % | 10.2 | % | — | % | — | % | 10.2 | % | ||||||||||||||||||||||||||||
| Segments Margin | 9.4 | % | 9.7 | % | 0.1 | % | 0.5 | % | 10.3 | % | ||||||||||||||||||||||||||||
| Consolidated | 6.1 | % | 5.9 | % | 1.1 | % | 0.6 | % | 7.7 | % | ||||||||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||
| As Previously Reported In GAAP Statements | Discontinued Operations Restatement | As Reported in GAAP Statements | Costs (Recoveries) on Restructuring & Senior Leadership Transition | Acquisition Related Items | Adjusted Financial Measures | |||||||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | $ | 98,259 | $ | — | 98,259 | $ | — | $ | — | $ | 98,259 | |||||||||||||||||||||||||||
| Residential Products | 139,472 | — | 139,472 | — | — | 139,472 | ||||||||||||||||||||||||||||||||
| Infrastructure Products | 48,263 | (30,810) | 17,453 | — | — | 17,453 | ||||||||||||||||||||||||||||||||
| Less Inter-Segment Sales | (180) | 180 | — | — | — | — | ||||||||||||||||||||||||||||||||
| 48,083 | (30,630) | 17,453 | — | — | 17,453 | |||||||||||||||||||||||||||||||||
| Consolidated sales | 285,814 | (30,630) | 255,184 | — | — | 255,184 | ||||||||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 9,188 | — | 9,188 | 388 | 1,172 | 10,748 | ||||||||||||||||||||||||||||||||
| Residential Products | 27,964 | — | 27,964 | 263 | — | 28,227 | ||||||||||||||||||||||||||||||||
| Infrastructure Products | 6,644 | (3,843) | 2,801 | — | — | 2,801 | ||||||||||||||||||||||||||||||||
| Segment Income | 43,796 | (3,843) | 39,953 | 651 | 1,172 | 41,776 | ||||||||||||||||||||||||||||||||
| Unallocated corporate expense | (9,205) | — | (9,205) | 161 | 50 | (8,994) | ||||||||||||||||||||||||||||||||
| Consolidated income from operations | 34,591 | (3,843) | 30,748 | 812 | 1,222 | 32,782 | ||||||||||||||||||||||||||||||||
| Interest expense | 214 | 8 | 222 | — | — | 222 | ||||||||||||||||||||||||||||||||
| Other income | (1,787) | (105) | (1,892) | 1,881 | — | (11) | ||||||||||||||||||||||||||||||||
| Income before income taxes | 36,164 | (3,746) | 32,418 | (1,069) | 1,222 | 32,571 | ||||||||||||||||||||||||||||||||
| Provision for income taxes | 8,872 | (911) | 7,961 | (299) | 274 | 7,936 | ||||||||||||||||||||||||||||||||
| Income from continuing operations | $ | 27,292 | $ | (2,835) | $ | 24,457 | $ | (770) | $ | 948 | $ | 24,635 | ||||||||||||||||||||||||||
| Income from continuing operations per share – diluted | $ | 0.83 | $ | (0.09) | $ | 0.74 | $ | (0.02) | $ | 0.03 | $ | 0.75 | ||||||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 9.4 | % | 9.4 | % | 0.4 | % | 1.2 | % | 10.9 | % | ||||||||||||||||||||||||||||
| Residential Products | 20.0 | % | 20.0 | % | 0.2 | % | — | % | 20.2 | % | ||||||||||||||||||||||||||||
| Infrastructure Products | 13.8 | % | 16.0 | % | — | % | — | % | 16.0 | % | ||||||||||||||||||||||||||||
| Segments Margin | 15.3 | % | 15.7 | % | 0.3 | % | 0.5 | % | 16.4 | % | ||||||||||||||||||||||||||||
| Consolidated | 12.1 | % | 12.0 | % | 0.3 | % | 0.5 | % | 12.8 | % | ||||||||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||
| As Previously Reported In GAAP Statements | Discontinued Operations Restatement | As Reported in GAAP Statements | Restructuring & Senior Leadership Transition Costs | Acquisition Related Items | Adjusted Financial Measures | |||||||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | $ | 128,258 | $ | — | $ | 128,258 | $ | — | $ | — | $ | 128,258 | ||||||||||||||||||||||||||
| Residential Products | 151,718 | — | 151,718 | — | — | 151,718 | ||||||||||||||||||||||||||||||||
| Infrastructure Products | 49,767 | (32,951) | 16,816 | — | — | 16,816 | ||||||||||||||||||||||||||||||||
| Less Inter-Segment Sales | (78) | 78 | — | — | — | — | ||||||||||||||||||||||||||||||||
| 49,689 | (32,873) | 16,816 | — | — | 16,816 | |||||||||||||||||||||||||||||||||
| Consolidated sales | 329,665 | (32,873) | 296,792 | — | — | 296,792 | ||||||||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 14,195 | — | 14,195 | 172 | 572 | 14,939 | ||||||||||||||||||||||||||||||||
| Residential Products | 32,454 | — | 32,454 | 186 | — | 32,640 | ||||||||||||||||||||||||||||||||
| Infrastructure Products | 5,199 | (2,916) | 2,283 | — | — | 2,283 | ||||||||||||||||||||||||||||||||
| Segment Income | 51,848 | (2,916) | 48,932 | 358 | 572 | 49,862 | ||||||||||||||||||||||||||||||||
| Unallocated corporate expense | (7,989) | — | (7,989) | 187 | 16 | (7,786) | ||||||||||||||||||||||||||||||||
| Consolidated income from operations | 43,859 | (2,916) | 40,943 | 545 | 588 | 42,076 | ||||||||||||||||||||||||||||||||
| Interest expense | 218 | (1) | 217 | — | — | 217 | ||||||||||||||||||||||||||||||||
| Other expense (income) | 53 | (101) | (48) | — | — | (48) | ||||||||||||||||||||||||||||||||
| Income before income taxes | 43,588 | (2,814) | 40,774 | 545 | 588 | 41,907 | ||||||||||||||||||||||||||||||||
| Provision for income taxes | 9,828 | (388) | 9,440 | 67 | 135 | 9,642 | ||||||||||||||||||||||||||||||||
| Income from continuing operations | $ | 33,760 | $ | (2,426) | $ | 31,334 | $ | 478 | $ | 453 | $ | 32,265 | ||||||||||||||||||||||||||
| Income from continuing operations per share – diluted | $ | 1.02 | $ | (0.07) | $ | 0.95 | $ | 0.02 | $ | 0.01 | $ | 0.98 | ||||||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||||||||
| Renewable Energy & Conservation | 11.1 | % | 11.1 | % | 0.1 | % | 0.4 | % | 11.6 | % | ||||||||||||||||||||||||||||
| Residential Products | 21.4 | % | 21.4 | % | 0.1 | % | — | % | 21.5 | % | ||||||||||||||||||||||||||||
| Infrastructure Products | 10.5 | % | 13.6 | % | — | % | — | % | 13.6 | % | ||||||||||||||||||||||||||||
| Segments Margin | 15.7 | % | 16.5 | % | 0.1 | % | 0.2 | % | 16.8 | % | ||||||||||||||||||||||||||||
| Consolidated | 13.3 | % | 13.8 | % | 0.2 | % | 0.2 | % | 14.2 | % | ||||||||||||||||||||||||||||
Gibraltar Divests Industrial Business
Buffalo, New York, February 23, 2021 - Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the renewable energy, conservation, residential, and infrastructure markets, today announced the completion of the sale of its Industrial business to Pacific Avenue Capital Partners, a private investment firm focused on corporate divestitures and other special situations.
“Our Industrial team has done a tremendous job of driving continuous improvement and accelerating growth of higher margin product lines,” said President and Chief Executive Officer Bill Bosway. “For Gibraltar, the decision to divest the non-core Industrial business is consistent with our portfolio management strategy, and this sale enables us to focus more time, talent, and energy on executing to deliver higher growth and returns by increasing our participation in our core markets. We want to thank our entire Industrial organization for all they have done for Gibraltar, and we wish them all the best as they enter a new chapter with Pacific Avenue Capital Partners.”
“We view this acquisition as a strong platform for future add-on acquisitions in a fragmented industry,” said Chris Sznewajs, Founder and Managing Partner of Pacific Avenue Capital Partners. “We appreciate Gibraltar Industries choosing our firm as the ideal buyer given our significant carve-out experience in the industrial sector, and look forward to working with the team post close in driving growth.”
Gibraltar will classify the Industrial business as a discontinued operation in its fourth quarter 2020 results and will provide additional information regarding the divesture during its fourth quarter earnings call scheduled for 9:00 a.m. on Thursday February 25, 2021. Gibraltar expects to use the cash received to reduce outstanding debt.
About Pacific Avenue Capital Partners
Pacific Avenue Capital Partners, founded by Chris Sznewajs in 2017, is a Los Angeles-based private investment firm focused on corporate divestitures and other special situations in the lower middle market. Our extensive M&A and operations experience allows us to navigate complex transactions and unlock value through operational improvement, capital investment, and accelerated growth. Our senior team has closed over 50 transactions, including 28 corporate divestitures, across a multitude of industries. Through our collaborative approach, we partner with strong management teams to drive strategic change and assist businesses in reaching their full potential. For more information, please visit www.pacificavenuecapital.com.
About Gibraltar
Gibraltar Industries is a leading manufacturer and provider of products and services for the renewable energy, conservation, residential, 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.
Contact:
LHA Investor Relations
Jody Burfening/Carolyn Capaccio
(212) 838-3777
rock@lhai.com
Gibraltar Board of Directors Appoints Two New Members
Buffalo, N.Y., February 25, 2021 - Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the renewable energy, conservation, residential, and infrastructure markets, today announced that its Board of Directors has appointed Gwen G. Mizell, head of Sustainability and Electrification at Ameren, and Manish H. Shah, Senior Vice President and Chief Information Officer at Community Health Systems, as new independent members of the Board, effective February 24, 2021. In conjunction with these appointments, Gibraltar also announced the retirement of Sharon M. Brady and Vinod M. Khilnani. Ms. Brady and Mr. Khilnani will serve the remainder of their current Board terms but will not stand for re-election at Gibraltar’s next Annual Meeting, which is expected to be held in May 2021. Upon Ms. Brady’s and Mr. Khilnani’s retirements, Gibraltar’s board of directors will return to nine seats.
William P. Montague, Chairman of the Board, stated, “We welcome Gwen and Manish to the Gibraltar Board. They bring significant leadership experience in areas critical to Gibraltar’s success, including strategy development and implementation across business systems technology, digital business models, cyber security, environmental, social, and governance, corporate social responsibility, and organization development through diversity, equity and inclusion. The Board looks forward to Gwen and Manish helping advance our vision of creating meaningful value for our people, our communities and our stakeholders.”
Mr. Montague concluded, “Sharon joined our Board in July 2015 and has been instrumental in guiding Gibraltar in designing and implementing leadership development frameworks, managing executive compensation, and driving culture change and diversity development. Vinod joined our Board in January 2015 and brought tremendous experience in public company leadership and governance, strategy development, operations, and mergers and acquisitions. The Board joins me in thanking both Sharon and Vinod for their service, dedication, and leadership, and the positive impact they made in shaping Gibraltar for the future.”
Ms. Mizell will join the Compensation and Human Capital, and Nominating, Governance and Corporate Social Responsibility Committees, and Mr. Shah will join the Audit and Risk, and Capital Structure and Asset Management Committees.
Gwen Mizell joined Ameren Corporation in 2015 and is currently the Head of Sustainability and Electrification responsible for developing and implementing strategy for sustainability, electrification, and leads environmental strategy, corporate analysis and corporate social responsibility, ensuring the inclusion of ESG considerations in business planning and risk management. Ms. Mizell is a member of Ameren’s senior leadership team and chairperson of Ameren’s Corporate Social Responsibility Executive Steering Committee. Prior to Ameren, Ms. Mizell was President and Chief Executive Officer of GSM Development LLC, a business services firm supporting utilities across the U.S. Ms. Mizell is a Member of The Workforce Investment Board for St. Louis county, serves on the national board of the American Association of Blacks in Energy (AABE) as well as the Vice President the St. Louis chapter, a Member of The Edison Electric Institute Sustainability Committee, The Conference Board Sustainability Council, and an outgoing Director of the Mathews-Dickey Boys and Girls Club. She earned a B.S. from University of
Alabama-Birmingham in Materials Science and Engineering, and an M.S. from Carnegie Mellon University in Management and Public Policy Analysis.
Manish Shah joined Community Health Systems in 2013 and is currently Senior Vice President and Chief Information Officer responsible for driving exceptional patient care by delivering a high-value digital experience across 85 hospitals operating in 16 states. Mr. Shah also oversees technology and digital systems development and implementation supporting the Company’s various businesses and functions with his primary focus on digital transformation, interoperability exchange, and business intelligence and analytics. Prior to Community Health Systems, Mr. Shah was Senior Vice President of IT Infrastructure for Aurora Health Care. Mr. Shah has been a Member of The Heritage Healthcare Technology Fund, the Nashville Technology Council, The Center for Medical Interoperability (C4MI), Google Productivity & Collaboration Customer Advisory Board, and an Advisory Board member for both AT&T and Verizon.
About Gibraltar
Gibraltar Industries is a leading manufacturer and provider of products and services for the renewable energy, conservation, residential, 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 and to a lesser extent Asia. Comprehensive information about Gibraltar can be found on its website at www.gibraltar1.com.
Contact
Timothy Murphy
Chief Financial Officer
716-826-6500 ext. 3277
tfmurphy@gibraltar1.com
LHA Investor Relations
Jody Burfening/Carolyn Capaccio
(212) 838-3777
rock@lhai.com