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 21, 2024 (February 21, 2024)
(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. ☐
Item 2.02 Results of Operations and Financial Condition
The following information is furnished pursuant to Item 2.02:
On February 21, 2024, Gibraltar Industries, Inc. (the “Company”) issued a news release and will hold a conference call regarding financial results for the three and twelve months ended December 31, 2023. A copy of the news release (the “Release”) is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The information in this Form 8-K under the caption Item 2.02, including the Release, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (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, as amended (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 | |||||||
| 104 | Cover Page Interactive Data File (embedded with the Inline XBRL document) | |||||||
2
SIGNATURES
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 21, 2024 | |||||||||||||
| By: | /s/ Jeffrey J. Watorek | |||||||||||||
| Jeffrey J. Watorek | ||||||||||||||
| Vice President and Treasurer | ||||||||||||||
3
GIBRALTAR ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL RESULTS
2023 EPS: GAAP up 40%, Adjusted up 21% on Flat Net Sales
Strong 2023 Cash Generation on Higher Margins, Working Capital Management
2024 Growth: Revenue 4-9%, EPS 12-20%
Buffalo, New York, February 21, 2024 - Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the renewable energy, residential, agtech and infrastructure markets, today reported its financial results for the three-and twelve-month period ended December 31, 2023.
“Fourth quarter results reflected a strong finish to a very good year for Gibraltar. We delivered 5% revenue growth, 50 basis points of adjusted operating margin expansion and adjusted EPS growth of 18%. For 2023, we outperformed what we set out to achieve at the beginning of the year, improving our quality of earnings and operating execution, generating $218 million of operating cash flow. As a result, with solid end market fundamentals, improving business conditions in Renewables and Agtech markets and our more efficient operating engine, we expect a strong 2024,” stated Chairman and CEO Bill Bosway.
Fourth Quarter 2023 Consolidated Results
| Three Months Ended December 31, | |||||||||||||||||||||||
| $Millions, except EPS | GAAP | Adjusted | |||||||||||||||||||||
| 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||
| Net Sales | $328.8 | $313.9 | 4.7% | $328.8 | $312.9 | 5.1% | |||||||||||||||||
| Net Income | $19.4 | $3.3 | NMF | $26.0 | $22.4 | 16.1% | |||||||||||||||||
| Diluted EPS | $0.63 | $0.11 | NMF | $0.85 | $0.72 | 18.1% | |||||||||||||||||
Net sales increased 5.1% with all segments contributing to growth and order backlog increasing more than 10% versus last year.
GAAP earnings increased to $19.4 million, or $0.63 per share. Adjusted net income increased 16.1% to $26.0 million, or $0.85 per share, and adjusted EPS increased 18.1%. For the full year, revenue was essentially flat, GAAP and adjusted EPS and free cash flow all increased within the higher outlook included in third quarter 2023 reporting.
Adjusted measures exclude charges for restructuring initiatives, acquisition-related items, senior leadership transition costs and portfolio management actions, as further described in the appended reconciliation of adjusted financial measures.
Fourth Quarter Segment Results
Renewables
| Three Months Ended December 31, | |||||||||||||||||||||||
| $Millions | GAAP | Adjusted | |||||||||||||||||||||
| 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||
| Net Sales | $87.7 | $86.1 | 1.9% | $87.7 | $86.1 | 1.9% | |||||||||||||||||
| Operating Income | $9.1 | $11.2 | (18.8)% | $11.5 | $13.1 | (12.2)% | |||||||||||||||||
| Operating Margin | 10.3% | 13.0% | (270) bps | 13.1% | 15.2% | (210) bps | |||||||||||||||||
Net sales increased 1.9%, driven by backlog converting to sales as customers continued to work through scheduling challenges related to permitting delays and awaited final tax credit guidance from the Inflation Reduction Act. New bookings continued to be robust, driving backlog up 20.9% versus last year.
Adjusted operating margin decreased 210 basis points versus the prior year as strong execution across the business was offset by warranty cost incurred during the quarter for a project completed in 2022.
Residential
| Three Months Ended December 31, | |||||||||||||||||||||||
| $Millions | GAAP | Adjusted | |||||||||||||||||||||
| 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||
| Net Sales | $179.3 | $171.9 | 4.3% | $179.3 | $171.9 | 4.3% | |||||||||||||||||
| Operating Income | $27.4 | $21.6 | 26.9% | $31.5 | $23.0 | 37.0% | |||||||||||||||||
| Operating Margin | 15.3% | 12.5% | 280 bps | 17.5% | 13.4% | 410 bps | |||||||||||||||||
Net sales increased 4.3% with organic sales up 3.1% driven by participation gains and volume, partially offset by pricing adjustments related to commodity deflation.
Adjusted operating margin expanded 410 basis points, driven by improved price/cost alignment versus the prior year’s quarter, volume and 80/20 initiatives.
Agtech
| Three Months Ended December 31, | |||||||||||||||||||||||
| $Millions | GAAP | Adjusted | |||||||||||||||||||||
| 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||
| Net Sales | $42.4 | $38.5 | 10.1% | $42.4 | $37.6 | 12.8% | |||||||||||||||||
| Operating Income | $(4.3) | $(2.4) | (79.2)% | $(1.4) | $1.7 | NMF | |||||||||||||||||
| Operating Margin | (10.1)% | (6.3)% | (380) bps | (3.3)% | 4.6% | (790) bps | |||||||||||||||||
Net sales on an adjusted basis increased 12.8% as the team executed on new orders in backlog.
Included in 2023 operating results is a $3.5 million charge to write down a receivable associated with a distressed cannabis customer. Before the charge, adjusted operating margin was approximately 5%, an increase of 40 basis points driven by volume, customer and product mix, and 80/20 initiatives.
Infrastructure
| Three Months Ended December 31, | |||||||||||||||||||||||
| $Millions | GAAP | Adjusted | |||||||||||||||||||||
| 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||
| Net Sales | $19.4 | $17.3 | 12.1% | $19.4 | $17.3 | 12.1% | |||||||||||||||||
| Operating Income | $3.6 | $2.4 | 50.0% | $3.6 | $2.4 | 50.0% | |||||||||||||||||
| Operating Margin | 18.6% | 13.7% | 490 bps | 18.6% | 13.7% | 490 bps | |||||||||||||||||
Net sales and order backlog increased 12.1% and 3.0%, respectively, driven by continued solid end market demand and market participation gains.
Operating margin increased 490 basis points driven by ongoing strong execution, 80/20 productivity, and improving product and customer mix.
Business Outlook
Mr. Bosway concluded, “For 2024, we expect strong performances for all four segments, with Renewables and Agtech returning to top-line growth and Residential and Infrastructure positioned for continued performance. We will continue to work our proven playbook, leveraging our operating engine for scale and driving revenue growth, continued margin expansion and strong cash flow generation.”
Gibraltar is providing its guidance for earnings for the full year 2024. Consolidated revenue is expected to range between $1.43 billion and $1.48 billion, compared to $1.37 billion in 2023. GAAP EPS is expected to range between $4.04 and $4.29, compared to $3.59 in 2023, and adjusted EPS is expected to range between $4.57 and $4.82, compared to $4.11 in 2023.
Fourth Quarter 2023 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 2023. Interested parties may access the webcast through the Investors section of the Company’s website at www.gibraltar1.com, where related presentation materials will also be posted prior to the conference call. The call also may be accessed by dialing (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 is a leading manufacturer and provider of products and services for the renewable energy, residential, agtech, and infrastructure markets. Gibraltar’s mission, to make life better for people and the planet, is fueled by advancing the disciplines of engineering, science, and technology. Gibraltar is innovating to reshape critical markets in comfortable living, sustainable power, and productive growing throughout North America. For more please visit 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 availability and pricing of our principal raw materials and component parts, supply chain challenges causing project delays and field operations inefficiencies and disruptions, the loss of any key customers, adverse effects of inflation, our ability to continue to improve operating margins, our ability to translate our backlog into net sales, other general economic conditions and conditions in the particular markets in which we operate, changes in spending due to laws and government incentives, such as the Infrastructure Investment and Jobs Act, 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, disruptions to IT systems, the impact of regulation (including the Department of Commerce’s solar panel anti-circumvention investigation, the Auxin Solar challenge to the Presidential waiver of tariffs and the Uyghur Forced Labor Prevention Act (UFLPA)), rebates, credits and incentives and variations in government spending 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 and its quarterly conference call, including adjusted net sales, adjusted operating income and margin, adjusted net income, adjusted earnings per share (EPS), free cash flow and adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), each a non-GAAP financial measure. Adjusted net sales reflects the removal of net sales associated with our Processing business, which has been liquidated. Adjusted net income, operating income and margin exclude special charges consisting of restructuring costs primarily associated with 80/20 simplification or lean initiatives, senior leadership transition costs, acquisition related costs and the operating losses generated by our processing business which has been liquidated. These special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations. The aforementioned exclusions along with other adjustments to other income below operating profit are excluded from adjusted EPS. Adjusted EBITDA further excludes interest, taxes, depreciation, amortization and stock compensation expense. In evaluating its business, the Company considers and uses these non-GAAP financial measures as supplemental measures of its operating performance. Free cash flow is operating cash flow less capital expenditures and the related margin is free cash flow divided by net sales. The Company believes that the presentation of adjusted measures and free cash flow provides meaningful supplemental data to investors 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. Adjusted EBITDA and free cash flow are also useful measures of the Company’s ability to service debt and adjusted EBITDA is one of the measures used for determining the Company’s debt covenant compliance.
Adjustments to the most directly comparable financial measures presented on a GAAP basis are quantified in the reconciliation of adjusted financial measures provided in the supplemental financial schedules that accompany this news release. 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 and the Company’s presentation of non-GAAP financial measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items.
Reconciliations of non-GAAP measures related to full-year 2023 guidance have not been provided due to the unreasonable efforts it would take to provide such reconciliations due to the high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations.
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, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Net sales | $ | 328,811 | $ | 313,861 | $ | 1,377,736 | $ | 1,389,966 | |||||||||||||||
| Cost of sales | 245,897 | 244,838 | 1,015,770 | 1,071,272 | |||||||||||||||||||
| Gross profit | 82,914 | 69,023 | 361,966 | 318,694 | |||||||||||||||||||
| Selling, general, and administrative expense | 54,025 | 47,651 | 207,440 | 188,592 | |||||||||||||||||||
| Intangible asset impairment | 3,797 | — | 3,797 | — | |||||||||||||||||||
| Income from operations | 25,092 | 21,372 | 150,729 | 130,102 | |||||||||||||||||||
| Interest (income) expense, net | (214) | 1,858 | 3,002 | 4,047 | |||||||||||||||||||
| Other expense (income) | 681 | 13,768 | (1,265) | 14,565 | |||||||||||||||||||
| Income before taxes | 24,625 | 5,746 | 148,992 | 111,490 | |||||||||||||||||||
| Provision for income taxes | 5,191 | 2,398 | 38,459 | 29,084 | |||||||||||||||||||
| Net income | $ | 19,434 | $ | 3,348 | $ | 110,533 | $ | 82,406 | |||||||||||||||
| Net earnings per share: | |||||||||||||||||||||||
| Basic | $ | 0.64 | $ | 0.11 | $ | 3.61 | $ | 2.57 | |||||||||||||||
| Diluted | $ | 0.63 | $ | 0.11 | $ | 3.59 | $ | 2.56 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 30,523 | 31,135 | 30,626 | 32,096 | |||||||||||||||||||
| Diluted | 30,724 | 31,257 | 30,785 | 32,192 | |||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
| December 31, 2023 | December 31, 2022 | ||||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 99,426 | $ | 17,608 | |||||||
| Accounts receivable, net of allowance of $5,572 and $3,746, respectively | 224,550 | 217,156 | |||||||||
| Inventories, net | 120,503 | 170,360 | |||||||||
| Prepaid expenses and other current assets | 17,772 | 18,813 | |||||||||
| Total current assets | 462,251 | 423,937 | |||||||||
| Property, plant, and equipment, net | 107,603 | 109,584 | |||||||||
| Operating lease assets | 44,918 | 26,502 | |||||||||
| Goodwill | 513,383 | 512,363 | |||||||||
| Acquired intangibles | 125,980 | 137,526 | |||||||||
| Other assets | 2,316 | 701 | |||||||||
| $ | 1,256,451 | $ | 1,210,613 | ||||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 92,124 | $ | 106,582 | |||||||
| Accrued expenses | 88,719 | 73,721 | |||||||||
| Billings in excess of costs | 44,735 | 35,017 | |||||||||
| Total current liabilities | 225,578 | 215,320 | |||||||||
| Long-term debt | — | 88,762 | |||||||||
| Deferred income taxes | 57,103 | 47,088 | |||||||||
| Non-current operating lease liabilities | 35,989 | 19,041 | |||||||||
| Other non-current liabilities | 22,783 | 18,303 | |||||||||
| Stockholders’ equity: | |||||||||||
| Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding | — | — | |||||||||
| Common stock, $0.01 par value; authorized 100,000 shares; 34,219 and 34,060 shares issued and outstanding in 2023 and 2022 | 342 | 340 | |||||||||
| Additional paid-in capital | 332,621 | 322,873 | |||||||||
| Retained earnings | 738,511 | 627,978 | |||||||||
| Accumulated other comprehensive loss | (2,114) | (3,432) | |||||||||
| Cost of 3,778 and 3,199 common shares held in treasury in 2023 and 2022 | (154,362) | (125,660) | |||||||||
| Total stockholders’ equity | 914,998 | 822,099 | |||||||||
| $ | 1,256,451 | $ | 1,210,613 | ||||||||
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Twelve Months Ended December 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| Cash Flows from Operating Activities | |||||||||||
| Net income | $ | 110,533 | $ | 82,406 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 27,378 | 26,167 | |||||||||
| Intangible asset impairment | 3,797 | — | |||||||||
| Stock compensation expense | 9,750 | 8,334 | |||||||||
| Exit activity costs, non-cash | 2,771 | 16,266 | |||||||||
| Provision for deferred income taxes | 10,800 | 6,337 | |||||||||
| Other, net | 12,492 | 1,506 | |||||||||
| Changes in operating assets and liabilities net of effects from acquisitions: | |||||||||||
| Accounts receivable | (15,375) | 32,754 | |||||||||
| Inventories | 45,908 | 14,377 | |||||||||
| Other current assets and other assets | 514 | 2,062 | |||||||||
| Accounts payable | (14,387) | (76,260) | |||||||||
| Accrued expenses and other non-current liabilities | 24,295 | (11,258) | |||||||||
| Net cash provided by operating activities | 218,476 | 102,691 | |||||||||
| Cash Flows from Investing Activities | |||||||||||
| Acquisitions, net of cash acquired | (9,863) | (51,621) | |||||||||
| Purchases of property, plant, and equipment, net | (13,906) | (20,062) | |||||||||
| Net proceeds from sale of business | 8,047 | — | |||||||||
| Net cash used in investing activities | (15,722) | (71,683) | |||||||||
| Cash Flows from Financing Activities | |||||||||||
| Proceeds from long-term debt | 50,000 | 204,500 | |||||||||
| Long-term debt payments | (141,000) | (138,000) | |||||||||
| Payment of debt issuance costs | — | (2,013) | |||||||||
| Purchase of common stock at market prices | (29,329) | (89,494) | |||||||||
| Net cash used in financing activities | (120,329) | (25,007) | |||||||||
| Effect of exchange rate changes on cash | (607) | (1,242) | |||||||||
| Net increase in cash and cash equivalents | 81,818 | 4,759 | |||||||||
| Cash and cash equivalents at beginning of year | 17,608 | 12,849 | |||||||||
| Cash and cash equivalents at end of year | $ | 99,426 | $ | 17,608 | |||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Three Months Ended December 31, 2023 | ||||||||||||||||||||||||||||||||
| As Reported In GAAP Statements | Restructuring Charges | Acquisition Related Items | Portfolio Management | Adjusted Financial Measures | ||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||
| Renewables | $ | 87,712 | $ | — | $ | — | $ | — | $ | 87,712 | ||||||||||||||||||||||
| Residential | 179,327 | — | — | — | 179,327 | |||||||||||||||||||||||||||
| Agtech | 42,421 | — | — | — | 42,421 | |||||||||||||||||||||||||||
| Infrastructure | 19,351 | — | — | — | 19,351 | |||||||||||||||||||||||||||
| Consolidated sales | 328,811 | — | — | — | 328,811 | |||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||
| Renewables | 9,076 | 2,075 | 331 | — | 11,482 | |||||||||||||||||||||||||||
| Residential | 27,442 | 4,021 | — | — | 31,463 | |||||||||||||||||||||||||||
| Agtech | (4,277) | 3,196 | — | (339) | (1,420) | |||||||||||||||||||||||||||
| Infrastructure | 3,601 | — | — | — | 3,601 | |||||||||||||||||||||||||||
| Segment Income | 35,842 | 9,292 | 331 | (339) | 45,126 | |||||||||||||||||||||||||||
| Unallocated corporate expense | (10,750) | 1 | 8 | (7) | (10,748) | |||||||||||||||||||||||||||
| Consolidated income from operations | 25,092 | 9,293 | 339 | (346) | 34,378 | |||||||||||||||||||||||||||
| Interest income | (214) | — | — | — | (214) | |||||||||||||||||||||||||||
| Other expense | 681 | — | — | (643) | 38 | |||||||||||||||||||||||||||
| Income before income taxes | 24,625 | 9,293 | 339 | 297 | 34,554 | |||||||||||||||||||||||||||
| Provision for income taxes | 5,191 | 2,354 | 86 | 908 | 8,539 | |||||||||||||||||||||||||||
| Net income | $ | 19,434 | $ | 6,939 | $ | 253 | $ | (611) | $ | 26,015 | ||||||||||||||||||||||
| Net income per share – diluted | $ | 0.63 | $ | 0.23 | $ | 0.01 | $ | (0.02) | $ | 0.85 | ||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||
| Renewables | 10.3 | % | 2.4 | % | 0.4 | % | — | % | 13.1 | % | ||||||||||||||||||||||
| Residential | 15.3 | % | 2.2 | % | — | % | — | % | 17.5 | % | ||||||||||||||||||||||
| Agtech | (10.1) | % | 7.5 | % | — | % | (0.8) | % | (3.3) | % | ||||||||||||||||||||||
| Infrastructure | 18.6 | % | — | % | — | % | — | % | 18.6 | % | ||||||||||||||||||||||
| Segments Margin | 10.9 | % | 2.9 | % | 0.1 | % | (0.1) | % | 13.7 | % | ||||||||||||||||||||||
| Consolidated | 7.6 | % | 2.9 | % | 0.1 | % | (0.1) | % | 10.5 | % | ||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Three Months Ended December 31, 2022 | ||||||||||||||||||||||||||||||||
| As Reported In GAAP Statements | Restructuring Charges | Acquisition Related Items | Portfolio Management | Adjusted Financial Measures | ||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||
| Renewables | $ | 86,116 | $ | — | $ | — | $ | — | $ | 86,116 | ||||||||||||||||||||||
| Residential | 171,926 | — | — | — | 171,926 | |||||||||||||||||||||||||||
| Agtech | 38,543 | — | — | (943) | 37,600 | |||||||||||||||||||||||||||
| Infrastructure | 17,276 | — | — | — | 17,276 | |||||||||||||||||||||||||||
| Consolidated sales | 313,861 | — | — | (943) | 312,918 | |||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||
| Renewables | 11,182 | 1,897 | 51 | — | 13,130 | |||||||||||||||||||||||||||
| Residential | 21,557 | 527 | 951 | — | 23,035 | |||||||||||||||||||||||||||
| Agtech | (2,436) | 1,517 | — | 2,654 | 1,735 | |||||||||||||||||||||||||||
| Infrastructure | 2,363 | — | — | — | 2,363 | |||||||||||||||||||||||||||
| Segments Income | 32,666 | 3,941 | 1,002 | 2,654 | 40,263 | |||||||||||||||||||||||||||
| Unallocated corporate expense | (11,294) | 2,306 | 72 | — | (8,916) | |||||||||||||||||||||||||||
| Consolidated income from operations | 21,372 | 6,247 | 1,074 | 2,654 | 31,347 | |||||||||||||||||||||||||||
| Interest expense | 1,858 | (140) | — | — | 1,718 | |||||||||||||||||||||||||||
| Other expense (income) | 13,768 | — | — | (13,990) | (222) | |||||||||||||||||||||||||||
| Income before income taxes | 5,746 | 6,387 | 1,074 | 16,644 | 29,851 | |||||||||||||||||||||||||||
| Provision for income taxes | 2,398 | 1,308 | 265 | 3,438 | 7,409 | |||||||||||||||||||||||||||
| Net income | $ | 3,348 | $ | 5,079 | $ | 809 | $ | 13,206 | $ | 22,442 | ||||||||||||||||||||||
| Net income per share - diluted | $ | 0.11 | $ | 0.16 | $ | 0.03 | $ | 0.42 | $ | 0.72 | ||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||
| Renewables | 13.0 | % | 2.2 | % | 0.1 | % | — | % | 15.2 | % | ||||||||||||||||||||||
| Residential | 12.5 | % | 0.3 | % | 0.6 | % | — | % | 13.4 | % | ||||||||||||||||||||||
| Agtech | (6.3) | % | 3.9 | % | — | % | 6.9 | % | 4.6 | % | ||||||||||||||||||||||
| Infrastructure | 13.7 | % | — | % | — | % | — | % | 13.7 | % | ||||||||||||||||||||||
| Segments Margin | 10.4 | % | 1.3 | % | 0.3 | % | 0.8 | % | 12.9 | % | ||||||||||||||||||||||
| Consolidated | 6.8 | % | 2.0 | % | 0.3 | % | 0.8 | % | 10.0 | % | ||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Twelve Months Ended December 31, 2023 | ||||||||||||||||||||||||||||||||
| As Reported In GAAP Statements | Restructuring Charges | Acquisition Related Items | Portfolio Management | Adjusted Financial Measures | ||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||
| Renewables | $ | 330,738 | $ | — | $ | — | $ | — | $ | 330,738 | ||||||||||||||||||||||
| Residential | 814,803 | — | — | — | 814,803 | |||||||||||||||||||||||||||
| Agtech | 144,967 | — | — | (4,059) | 140,908 | |||||||||||||||||||||||||||
| Infrastructure | 87,228 | — | — | — | 87,228 | |||||||||||||||||||||||||||
| Consolidated sales | 1,377,736 | — | — | (4,059) | 1,373,677 | |||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||
| Renewables | 30,160 | 9,394 | 968 | — | 40,522 | |||||||||||||||||||||||||||
| Residential | 143,068 | 4,811 | 12 | — | 147,891 | |||||||||||||||||||||||||||
| Agtech | (928) | 3,918 | 37 | 4,119 | 7,146 | |||||||||||||||||||||||||||
| Infrastructure | 18,529 | — | — | — | 18,529 | |||||||||||||||||||||||||||
| Segment Income | 190,829 | 18,123 | 1,017 | 4,119 | 214,088 | |||||||||||||||||||||||||||
| Unallocated corporate expense | (40,100) | (51) | 300 | 89 | (39,762) | |||||||||||||||||||||||||||
| Consolidated income from operations | 150,729 | 18,072 | 1,317 | 4,208 | 174,326 | |||||||||||||||||||||||||||
| Interest expense | 3,002 | — | — | — | 3,002 | |||||||||||||||||||||||||||
| Other (income) expense | (1,265) | — | — | 1,625 | 360 | |||||||||||||||||||||||||||
| Income before income taxes | 148,992 | 18,072 | 1,317 | 2,583 | 170,964 | |||||||||||||||||||||||||||
| Provision for income taxes | 38,459 | 4,583 | 334 | 1,048 | 44,424 | |||||||||||||||||||||||||||
| Net income | $ | 110,533 | $ | 13,489 | $ | 983 | $ | 1,535 | $ | 126,540 | ||||||||||||||||||||||
| Net income per share – diluted | $ | 3.59 | $ | 0.43 | $ | 0.04 | $ | 0.05 | $ | 4.11 | ||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||
| Renewables | 9.1 | % | 2.8 | % | 0.3 | % | — | % | 12.3 | % | ||||||||||||||||||||||
| Residential | 17.6 | % | 0.6 | % | — | % | — | % | 18.2 | % | ||||||||||||||||||||||
| Agtech | (0.6) | % | 2.7 | % | — | % | 2.8 | % | 5.1 | % | ||||||||||||||||||||||
| Infrastructure | 21.2 | % | — | % | — | % | — | % | 21.2 | % | ||||||||||||||||||||||
| Segments Margin | 13.9 | % | 1.3 | % | 0.1 | % | 0.3 | % | 15.6 | % | ||||||||||||||||||||||
| Consolidated | 10.9 | % | 1.3 | % | 0.1 | % | 0.3 | % | 12.7 | % | ||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Twelve Months Ended December 31, 2022 | ||||||||||||||||||||||||||||||||
| As Reported In GAAP Statements | Restructuring Charges & Senior Leadership Transition Costs | Acquisition Related Items | Portfolio Management | Adjusted Financial Measures | ||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||
| Renewables | $ | 377,567 | $ | — | $ | — | $ | — | $ | 377,567 | ||||||||||||||||||||||
| Residential | 767,248 | — | — | — | 767,248 | |||||||||||||||||||||||||||
| Agtech | 168,868 | — | — | (7,840) | 161,028 | |||||||||||||||||||||||||||
| Infrastructure | 76,283 | — | — | — | 76,283 | |||||||||||||||||||||||||||
| Consolidated sales | 1,389,966 | — | — | (7,840) | 1,382,126 | |||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||
| Renewables | 25,243 | 4,240 | 782 | — | 30,265 | |||||||||||||||||||||||||||
| Residential | 126,458 | 2,121 | 1,427 | — | 130,006 | |||||||||||||||||||||||||||
| Agtech | 2,914 | 1,837 | — | 6,769 | 11,520 | |||||||||||||||||||||||||||
| Infrastructure | 9,003 | (63) | — | — | 8,940 | |||||||||||||||||||||||||||
| Segments Income | 163,618 | 8,135 | 2,209 | 6,769 | 180,731 | |||||||||||||||||||||||||||
| Unallocated corporate expense | (33,516) | 2,837 | 601 | — | (30,078) | |||||||||||||||||||||||||||
| Consolidated income from operations | 130,102 | 10,972 | 2,810 | 6,769 | 150,653 | |||||||||||||||||||||||||||
| Interest expense | 4,047 | (140) | — | — | 3,907 | |||||||||||||||||||||||||||
| Other expense | 14,565 | — | — | (13,890) | 675 | |||||||||||||||||||||||||||
| Income before income taxes | 111,490 | 11,112 | 2,810 | 20,659 | 146,071 | |||||||||||||||||||||||||||
| Provision for income taxes | 29,084 | 2,485 | 702 | 4,441 | 36,712 | |||||||||||||||||||||||||||
| Net income | $ | 82,406 | $ | 8,627 | $ | 2,108 | $ | 16,218 | $ | 109,359 | ||||||||||||||||||||||
| Net income per share - diluted | $ | 2.56 | $ | 0.26 | $ | 0.07 | $ | 0.51 | $ | 3.40 | ||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||
| Renewables | 6.7 | % | 1.1 | % | 0.2 | % | — | % | 8.0 | % | ||||||||||||||||||||||
| Residential | 16.5 | % | 0.2 | % | 0.2 | % | — | % | 16.9 | % | ||||||||||||||||||||||
| Agtech | 1.7 | % | 1.1 | % | — | % | 4.0 | % | 7.2 | % | ||||||||||||||||||||||
| Infrastructure | 11.8 | % | (0.1) | % | — | % | — | % | 11.7 | % | ||||||||||||||||||||||
| Segments Margin | 11.8 | % | 0.6 | % | 0.2 | % | 0.5 | % | 13.1 | % | ||||||||||||||||||||||
| Consolidated | 9.4 | % | 0.8 | % | 0.2 | % | 0.5 | % | 10.9 | % | ||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands)
(unaudited)
| Three Months Ended December 31, 2023 | ||||||||||||||||||||||||||||||||
| Consolidated | Renewables | Residential | Agtech | Infrastructure | ||||||||||||||||||||||||||||
| Net Sales | $ | 328,811 | $ | 87,712 | $ | 179,327 | $ | 42,421 | $ | 19,351 | ||||||||||||||||||||||
| Less: Processing Net Sales | — | — | — | — | — | |||||||||||||||||||||||||||
| Adjusted Net Sales | $ | 328,811 | $ | 87,712 | $ | 179,327 | $ | 42,421 | $ | 19,351 | ||||||||||||||||||||||
| Net Income | 19,434 | |||||||||||||||||||||||||||||||
| Provision for Income Taxes | 5,191 | |||||||||||||||||||||||||||||||
| Interest Income | (214) | |||||||||||||||||||||||||||||||
| Other Expense | 681 | |||||||||||||||||||||||||||||||
| Operating Profit | 25,092 | 9,076 | 27,442 | (4,277) | 3,601 | |||||||||||||||||||||||||||
| Adjusted Measures* | 9,286 | 2,406 | 4,021 | 2,857 | — | |||||||||||||||||||||||||||
| Adjusted Operating Profit | 34,378 | 11,482 | 31,463 | (1,420) | 3,601 | |||||||||||||||||||||||||||
| Adjusted Operating Margin | 10.5 | % | 13.1 | % | 17.5 | % | (3.3) | % | 18.6 | % | ||||||||||||||||||||||
| Adjusted Other Expense | 89 | — | — | — | — | |||||||||||||||||||||||||||
| Depreciation & Amortization | 6,804 | 2,109 | 2,537 | 940 | 788 | |||||||||||||||||||||||||||
| Stock Compensation Expense | 2,493 | 230 | 498 | 57 | 77 | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 43,586 | $ | 13,821 | $ | 34,498 | $ | (423) | $ | 4,466 | ||||||||||||||||||||||
| Adjusted EBITDA Margin | 13.3 | % | 15.8 | % | 19.2 | % | (1.0) | % | 23.1 | % | ||||||||||||||||||||||
| Cash Flow - Operating Activities | 11,820 | |||||||||||||||||||||||||||||||
| Purchase of PPE, Net | (5,930) | |||||||||||||||||||||||||||||||
| Free Cash Flow | 5,890 | |||||||||||||||||||||||||||||||
| Free Cash Flow - % of Adjusted Net Sales | 1.8 | % | ||||||||||||||||||||||||||||||
| *Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures | ||||||||||||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands)
(unaudited)
| Three Months Ended December 31, 2022 | ||||||||||||||||||||||||||||||||
| Consolidated | Renewables | Residential | Agtech | Infrastructure | ||||||||||||||||||||||||||||
| Net Sales | $ | 313,861 | $ | 86,116 | $ | 171,926 | $ | 38,543 | $ | 17,276 | ||||||||||||||||||||||
| Less: Processing Net Sales | (943) | — | — | (943) | — | |||||||||||||||||||||||||||
| Adjusted Net Sales | $ | 312,918 | $ | 86,116 | $ | 171,926 | $ | 37,600 | $ | 17,276 | ||||||||||||||||||||||
| Net Income | 3,348 | |||||||||||||||||||||||||||||||
| Provision for Income Taxes | 2,398 | |||||||||||||||||||||||||||||||
| Interest Expense | 1,858 | |||||||||||||||||||||||||||||||
| Other Expense | 13,768 | |||||||||||||||||||||||||||||||
| Operating Profit | 21,372 | 11,182 | 21,557 | (2,436) | 2,363 | |||||||||||||||||||||||||||
| Adjusted Measures* | 9,975 | 1,948 | 1,478 | 4,171 | — | |||||||||||||||||||||||||||
| Adjusted Operating Profit | 31,347 | 13,130 | 23,035 | 1,735 | 2,363 | |||||||||||||||||||||||||||
| Adjusted Operating Margin | 10.0 | % | 15.2 | % | 13.4 | % | 4.6 | % | 13.7 | % | ||||||||||||||||||||||
| Adjusted Other Income | (193) | — | — | — | — | |||||||||||||||||||||||||||
| Depreciation & Amortization | 6,975 | 2,123 | 2,609 | 1,030 | 786 | |||||||||||||||||||||||||||
| Stock Compensation Expense | 2,445 | 195 | 245 | 108 | 41 | |||||||||||||||||||||||||||
| Less: SLT Related Stock Compensation Expense | (838) | — | — | — | — | |||||||||||||||||||||||||||
| Adjusted Stock Compensation Expense | 1,607 | 195 | 245 | 108 | 41 | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 40,122 | $ | 15,448 | $ | 25,889 | $ | 2,873 | $ | 3,190 | ||||||||||||||||||||||
| Adjusted EBITDA Margin | 12.8 | % | 17.9 | % | 15.1 | % | 7.6 | % | 18.5 | % | ||||||||||||||||||||||
| Cash Flow - Operating Activities | 64,130 | |||||||||||||||||||||||||||||||
| Purchase of PPE, Net | (4,358) | |||||||||||||||||||||||||||||||
| Free Cash Flow | 59,772 | |||||||||||||||||||||||||||||||
| Free Cash Flow - % of Adjusted Net Sales | 19.1 | % | ||||||||||||||||||||||||||||||
| *Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures | ||||||||||||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands)
(unaudited)
| Twelve Months Ended December 31, 2023 | ||||||||||||||||||||||||||||||||
| Consolidated | Renewables | Residential | Agtech | Infrastructure | ||||||||||||||||||||||||||||
| Net Sales | $ | 1,377,736 | $ | 330,738 | $ | 814,803 | $ | 144,967 | $ | 87,228 | ||||||||||||||||||||||
| Less: Processing Net Sales | (4,059) | — | — | (4,059) | — | |||||||||||||||||||||||||||
| Adjusted Net Sales | $ | 1,373,677 | $ | 330,738 | $ | 814,803 | $ | 140,908 | $ | 87,228 | ||||||||||||||||||||||
| Net Income | 110,533 | |||||||||||||||||||||||||||||||
| Provision for Income Taxes | 38,459 | |||||||||||||||||||||||||||||||
| Interest Expense | 3,002 | |||||||||||||||||||||||||||||||
| Other Income | (1,265) | |||||||||||||||||||||||||||||||
| Operating Profit | 150,729 | 30,160 | 143,068 | (928) | 18,529 | |||||||||||||||||||||||||||
| Adjusted Measures* | 23,597 | 10,362 | 4,823 | 8,074 | — | |||||||||||||||||||||||||||
| Adjusted Operating Profit | 174,326 | 40,522 | 147,891 | 7,146 | 18,529 | |||||||||||||||||||||||||||
| Adjusted Operating Margin | 12.7 | % | 12.3 | % | 18.2 | % | 5.1 | % | 21.2 | % | ||||||||||||||||||||||
| Adjusted Other Expense | 411 | — | — | — | — | |||||||||||||||||||||||||||
| Depreciation & Amortization | 27,378 | 8,670 | 10,079 | 3,790 | 3,137 | |||||||||||||||||||||||||||
| Stock Compensation Expense | 9,750 | 881 | 1,633 | 197 | 289 | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 211,043 | $ | 50,073 | $ | 159,603 | $ | 11,133 | $ | 21,955 | ||||||||||||||||||||||
| Adjusted EBITDA Margin | 15.4 | % | 15.1 | % | 19.6 | % | 7.9 | % | 25.2 | % | ||||||||||||||||||||||
| Cash Flow - Operating Activities | 218,476 | |||||||||||||||||||||||||||||||
| Purchase of PPE, Net | (13,906) | |||||||||||||||||||||||||||||||
| Free Cash Flow | 204,570 | |||||||||||||||||||||||||||||||
| Free Cash Flow - % of Adjusted Net Sales | 14.9 | % | ||||||||||||||||||||||||||||||
| *Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures | ||||||||||||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands)
(unaudited)
| Twelve Months Ended December 31, 2022 | ||||||||||||||||||||||||||||||||
| Consolidated | Renewables | Residential | Agtech | Infrastructure | ||||||||||||||||||||||||||||
| Net Sales | $ | 1,389,966 | $ | 377,567 | $ | 767,248 | $ | 168,868 | $ | 76,283 | ||||||||||||||||||||||
| Less: Processing Net Sales | (7,840) | — | — | (7,840) | — | |||||||||||||||||||||||||||
| Adjusted Net Sales | $ | 1,382,126 | $ | 377,567 | $ | 767,248 | $ | 161,028 | $ | 76,283 | ||||||||||||||||||||||
| Net Income | 82,406 | |||||||||||||||||||||||||||||||
| Provision for Income Taxes | 29,084 | |||||||||||||||||||||||||||||||
| Interest Expense | 4,047 | |||||||||||||||||||||||||||||||
| Other Expense | 14,565 | |||||||||||||||||||||||||||||||
| Operating Profit | 130,102 | 25,243 | 126,458 | 2,914 | 9,003 | |||||||||||||||||||||||||||
| Adjusted Measures* | 20,551 | 5,022 | 3,548 | 8,606 | (63) | |||||||||||||||||||||||||||
| Adjusted Operating Profit | 150,653 | 30,265 | 130,006 | 11,520 | 8,940 | |||||||||||||||||||||||||||
| Adjusted Operating Margin | 10.9 | % | 8.0 | % | 16.9 | % | 7.2 | % | 11.7 | % | ||||||||||||||||||||||
| Adjusted Other Expense | 695 | — | — | — | — | |||||||||||||||||||||||||||
| Depreciation & Amortization | 26,167 | 8,467 | 8,983 | 4,377 | 3,150 | |||||||||||||||||||||||||||
| Less: Processing Business Depreciation & Amortization | (332) | — | — | (332) | — | |||||||||||||||||||||||||||
| Adjusted Depreciation & Amortization | 25,835 | 8,467 | 8,983 | 4,045 | 3,150 | |||||||||||||||||||||||||||
| Stock Compensation Expense | 8,334 | 939 | 990 | 427 | 170 | |||||||||||||||||||||||||||
| Less: SLT Related Stock Compensation Expense | (683) | — | — | — | — | |||||||||||||||||||||||||||
| Adjusted Stock Compensation Expense | 7,651 | 939 | 990 | 427 | 170 | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 183,444 | $ | 39,671 | $ | 139,979 | $ | 15,992 | $ | 12,260 | ||||||||||||||||||||||
| Adjusted EBITDA Margin | 13.3 | % | 10.5 | % | 18.2 | % | 9.9 | % | 16.1 | % | ||||||||||||||||||||||
| Cash Flow - Operating Activities | 102,691 | |||||||||||||||||||||||||||||||
| Purchase of PPE, Net | (20,062) | |||||||||||||||||||||||||||||||
| Free Cash Flow | 82,629 | |||||||||||||||||||||||||||||||
| Free Cash Flow - % of Adjusted Net Sales | 6.0 | % | ||||||||||||||||||||||||||||||
| *Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures | ||||||||||||||||||||||||||||||||