Gibraltar Announces First Quarter 2022 Financial Results

Rhea-AI Summary

Gibraltar Industries reported first-quarter 2022 results with GAAP revenue rising 11% to $317.9 million and GAAP EPS up 47% to $0.47. Adjusted revenue increased 12% to $316.0 million, reflecting a strong performance in the Residential segment, which grew 28% year-over-year. The company reaffirmed its 2022 guidance for revenue between $1.38 billion and $1.43 billion and EPS of $2.80 to $3.00. Backlog remains robust, up 23%, although the Renewables segment faced challenges due to supply chain issues. The decision to sell its Agtech processing business is poised to enhance focus on profitable areas.

Positive

• GAAP revenue increased 11% to $317.9 million.
• GAAP EPS rose 47% to $0.47.
• Residential segment revenue grew 28% for the seventh consecutive quarter of double-digit growth.
• Order backlog increased by 23%.

Negative

• Renewables segment revenue declined 7.8% due to supply chain challenges.
• Operating loss in the Renewables segment was $7.0 million.
• Infrastructure segment margins decreased due to steel inflation and labor inefficiencies.

Revenue: GAAP up 11%, Adjusted up 12%; EPS: GAAP up 47%, Adjusted up 11%

Reaffirms 2022 Revenue and EPS Growth Outlook

Order Backlog Remains Robust, up 23%

Commits to Sale of Agtech’s Processing Business

BUFFALO, N.Y.--(BUSINESS WIRE)-- 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-month period ended March 31, 2022.

“Gibraltar generated solid revenue and EPS growth in the quarter despite the continuation of supply issues impacting our solar customers, the solar industry, and our Renewables business, particularly early in the quarter,” Chairman and CEO Bill Bosway stated. “Our Residential business generated strong revenue and margin performance, our Agtech business continued to expand adjusted operating margin, and our Infrastructure business delivered strong revenue growth. Demand across the company remains very solid with our backlog up 23% during the quarter."

First Quarter 2022 Consolidated Results from Continuing Operations

Below are first quarter 2022 consolidated results from continuing operations:

	Three Months Ended March 31,
$Millions, except EPS	GAAP							Adjusted
	2022		2021		% Change			2022		2021		% Change
Net Sales	$317.9		$287.6		10.5%			$316.0		$282.6		11.8%
Net Income	$15.5		$10.5		47.6%			$19.7		$18.0		9.4%
Diluted EPS	$0.47		$0.32		46.9%			$0.60		$0.54		11.1%

Net sales from continuing operations increased 10.5% to $317.9 million. Gibraltar made the decision during the first quarter of 2022 to sell its Agtech processing equipment business and, as adjusted to exclude this business’s revenue, adjusted revenue increased 11.8% to $316.0 million. This organic increase was driven by participation gains and price management in the Residential segment, partially offset by continued supply chain challenges in the Renewables segment.

GAAP earnings increased 47.6% to $15.5 million, or $0.47 per share, and adjusted earnings increased 9.4% to $19.7 million, or $0.60 per share. Profitability in the quarter was driven by Residential through participation gains, price management and 80/20 initiatives. While Agtech GAAP margin decreased year-over-year, adjusted segment margin improved through 80/20 and lean enterprise initiatives, supply chain optimization activities, and favorable business mix. As anticipated, the Renewables segment experienced a carryover of the supply challenges plaguing the industry in 2021 during the first quarter, and was also impacted by project inefficiencies due to severe winter weather. Infrastructure margin was impacted by steel inflation, labor availability, and 2^nd shift start-up inefficiencies to support demand in the fabrication business.

Adjusted measures exclude charges for restructuring initiatives, acquisition-related items, senior leadership transition costs, and the results of our Processing business, which has been classified as held for sale as further described in adjusted financial measures below.

First Quarter Segment Results

Renewables

For the first quarter, the Renewables segment reported:

		Three Months Ended March 31,
$Millions		GAAP						Adjusted
		2022		2021		% Change		2022		2021		% Change
Net Sales		$78.8		$85.5		(7.8)%		$78.8		$85.5		(7.8)%
Operating (Loss) Income		$(7.0)		$(0.5)		nmf*		$(4.3)		$6.4		nmf*
Operating Margin		(8.9)%		(0.6)%		(830) bps		(5.4)%		7.4%		(1280) bps
*nmf - change is not meaningful

As expected, the industry-wide supply chain challenges experienced in 2021 continued to delay and disrupt solar project schedules in the first quarter, and severe weather in the Northeast, particularly in January and February, also contributed to project delays and disruptions. While revenue decreased 7.8% for the quarter, end market demand remained robust with new bookings driving backlog up 41% during the quarter.

Adjusted operating loss was $4.3 million and operating margin contracted to (5.4)% on lower volume and field management inefficiencies related to project delays and disruptions. These factors began to abate in March and Gibraltar expects significant sequential margin improvement in the second quarter.

Residential

For the first quarter, the Residential segment reported:

		Three Months Ended March 31,
$Millions		GAAP						Adjusted
		2022		2021		% Change		2022		2021		% Change
Net Sales		$179.5		$140.2		28.0%		$179.5		$140.2		28.0%
Operating Income		$33.4		$22.9		45.9%		$33.7		$23.0		46.5%
Operating Margin		18.6%		16.4%		220 bps		18.8%		16.4%		240 bps

Revenue increased 28.0%, marking the seventh consecutive quarter of double-digit growth. Revenue was driven by market, price and participation gains both in the building products and mail and package businesses.

Adjusted operating income grew 46.5% and adjusted operating margin improved 240 basis points to 18.8% as price/cost management, segment mix, and 80/20 initiatives continue to drive year-over-year margin improvement.

Agtech

Gibraltar has classified the processing equipment business, which accounted for 10% of the Agtech segment’s 2021 revenue, as held-for-sale with first quarter 2022 results and has removed the related revenues and expenses of this business from its adjusted results. This market has been significantly impacted by industry conditions and the pandemic over the last two years, and its recovery projection no longer fits Gibraltar’s timetable for growth and return generation. This decision will enable the Agtech team to focus on accelerating in its more profitable greenhouse structures markets - Produce, Commercial, and Cannabis.

For the first quarter, the Agtech segment reported:

		Three Months Ended March 31,
$Millions		GAAP						Adjusted
		2022		2021		% Change		2022		2021		% Change
Net Sales		$42.4		$46.7		(9.2)%		$40.6		$41.8		(2.9)%
Operating Income		$0.0		$0.9		(100.0)%		$2.5		$2.0		25.0%
Operating Margin		0.1%		2.0%		(190) bps		6.3%		4.7%		160 bps

GAAP revenue decreased 9.2% and adjusted revenue decreased 2.9% as projects were delayed as states and local agencies continue to work through respective construction permit backlogs and scheduled timing of projects. Despite these delays, market demand in Produce, Commercial, and Cannabis continues to grow with order backlog increasing 18% in the quarter.

Adjusted operating margin improved 160 basis points versus last year on continued execution 80/20 and lean enterprise initiatives, integration activities, improved business mix, and supply chain optimization projects.

Infrastructure

For the first quarter, the Infrastructure segment reported:

		Three Months Ended March 31,
$Millions		GAAP						Adjusted
		2022		2021		% Change		2022		2021		% Change
Net Sales		$17.2		$15.1		13.9%		$17.2		$15.1		13.9%
Operating Income		$1.2		$2.0		(40.0)%		$1.2		$2.0		(40.0)%
Operating Margin		6.9%		13.5%		(660) bps		6.9%		13.5%		(660) bps

Revenue increased 13.9%, driven by growth in fabricated products. While order backlog declined 7% on timing of orders and revenues, pipeline and bidding activity remain strong. Management continues to expect a positive impact of incremental government spending on infrastructure toward the end of 2022.

Adjusted operating margin decreased year-over-year but remained flat sequentially as steel inflation impacted fixed price projects booked in 2020 and early 2021. The fabrication business also experienced challenges with labor availability and inefficiencies related to adding second shift capacity to support increased demand. Margins are expected to improve through 2022 as incremental capacity becomes more efficient and orders for higher margin, non-fabricated product continue to improve.

Business Outlook

Gibraltar is reaffirming guidance for revenue and earnings for the full year 2022, with consolidated revenue expected to range between $1.38 billion and $1.43 billion. GAAP EPS is expected to be between $2.80 and $3.00, and adjusted EPS expected to be between $3.20 and $3.40.

“Given our solid start to the year and current demand across the business, our outlook for the year remains unchanged. We expect our Renewables segment to improve in the second quarter and are working closely with customers to assess potential exposure to the Department of Commerce’s solar panel anti-circumvention investigation. We expect solid performance in our Residential segment as we continue to execute on demand, manage price/cost, and gain additional participation. We look for the Agtech segment’s performance to continue to improve as it executes on higher margin backlog and benefits from 80/20 and lean initiatives. We expect Infrastructure to have a solid year with favorable business mix, good volume, and improved efficiency in its operations,” said Mr. Bosway.

Recast of 2021 Financial Information

Gibraltar has provided a recast of Consolidated and Agtech segment results reflecting the removal of the processing equipment business for the four quarters and full year of 2021 on the Quarterly Results page of its website, which can be accessed through the Investor section by clicking on Reports & Presentations.

First Quarter 2022 Conference Call Details

Gibraltar will host a conference call today starting at 9:00 a.m. ET to review its results for the first quarter of 2022. 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 may also be accessed by dialing 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 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, availability of labor at our manufacturing and distribution facilities or on our project sites, further impacts of COVID-19 on our customers, suppliers, employees, operations, business, liquidity and cash flows, the loss of any key customers, 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, disruptions to our IT systems, the impact of regulation (including the Department of Commerce’s solar panel anti-circumvention investigation), 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 and Quarterly Report on Form 10-Q 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, including adjusted revenues, adjusted operating income and margin, adjusted net income, adjusted earnings per share (EPS) and adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) each a non-GAAP financial measure. Adjusted revenue reflects the removal of revenue associated with our Processing business, which has been classified as held-for-sale. Adjusted net income, operating income and margin excludes 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 that has been classified as held-for-sale. These special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations. The adjusted measures now exclude the results of the Processing business since it was classified as held for sale as of March 31, 2022. Our adjusted financial measures as of and for the three-month period ending March 31, 2021 have been recast to reflect this additional adjustment as detailed in the appended reconciliation of adjusted financial measures. The results of the Processing business are considered non-recurring due to the Company’s commitment during the first quarter of 2022 to a plan to sell the Processing business. The aforementioned exclusions along with other adjustments to other income below operating profit are excluded from adjusted EPS. Adjusted EBITDA further excludes depreciation, amortization and stock compensation. In evaluating its business, the Company considers and uses these non-GAAP financial measures as supplemental measures of its operating performance. The Company believes that the presentation of results excluding these items 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 is also a useful measure of the Company’s ability to service debt and 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 excluding special charges 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 our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

Reconciliations of non-GAAP measures related to full-year 2022 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.

GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
		Three Months Ended March 31,
			2022			2021
Net Sales		$	317,865		$	287,592
Cost of sales			253,021			227,574
Gross profit			64,844			60,018
Selling, general, and administrative expense			43,649			47,203
Income from operations			21,195			12,815
Interest expense			485			444
Other expense			153			315
Income before taxes			20,557			12,056
Provision for income taxes			5,101			1,560
Income from continuing operations			15,456			10,496
Discontinued operations:
Income before taxes			—			2,570
Provision for income taxes			—			304
Income from discontinued operations			—			2,266
Net income		$	15,456		$	12,762
Net earnings per share – Basic:
Income from continuing operations		$	0.47		$	0.32
Income from discontinued operations			—			0.07
Net income		$	0.47		$	0.39
Weighted average shares outstanding – Basic			32,913			32,771
Net earnings per share – Diluted:
Income from continuing operations		$	0.47		$	0.32
Income from discontinued operations			—			0.07
Net income		$	0.47		$	0.39
Weighted average shares outstanding – Diluted			33,022			33,104

GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
		March 31, 2022			December 31, 2021
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	15,573		$	12,849
Accounts receivable, net of allowance of $4,433 and $3,738, respectively			245,807			236,444
Inventories, net			187,255			176,207
Prepaid expenses and other current assets			36,836			21,467
Total current assets			485,471			446,967
Property, plant, and equipment, net			97,720			96,885
Operating lease assets			16,082			18,120
Goodwill			510,540			510,942
Acquired intangibles			132,107			141,504
Other assets			420			483
		$	1,242,340		$	1,214,901
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	159,214		$	172,286
Accrued expenses and other current liabilities			67,495			67,993
Billings in excess of cost			60,992			46,711
Total current liabilities			287,701			286,990
Long-term debt			42,367			23,781
Deferred income taxes			40,221			40,278
Non-current operating lease liabilities			9,377			11,390
Other non-current liabilities			24,272			27,204
Stockholders’ equity:
Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding			—			—
Common stock, $0.01 par value; authorized 100,000 shares in 2022 and 2021; 33,972 shares and 33,799 shares issued and outstanding in 2022 and 2021			340			338
Additional paid-in capital			315,891			314,541
Retained earnings			561,028			545,572
Accumulated other comprehensive (loss) income			(16)			187
Cost of 1,179 and 1,107 common shares held in treasury in 2022 and 2021			(38,841)			(35,380)
Total stockholders’ equity			838,402			825,258
		$	1,242,340		$	1,214,901

GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
		Three Months Ended March 31,
			2022			2021
Cash Flows from Operating Activities
Net income		$	15,456		$	12,762
Income from discontinued operations			—			2,266
Income from continuing operations			15,456			10,496
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization			6,336			7,974
Stock compensation expense			1,352			2,368
Exit activity costs, non-cash			1,198			1,193
Provision for deferred income taxes			17			—
Other, net			1,395			(162)
Changes in operating assets and liabilities, excluding the effects of acquisitions:
Accounts receivable			(11,101)			(2,522)
Inventories			(20,937)			(15,262)
Other current assets and other assets			731			(435)
Accounts payable			(11,962)			1,470
Accrued expenses and other non-current liabilities			9,761			(6,334)
Net cash used in operating activities of continuing operations			(7,754)			(1,214)
Net cash used in operating activities of discontinued operations			—			(2,011)
Net cash used in operating activities			(7,754)			(3,225)
Cash Flows from Investing Activities
Acquisitions, net of cash acquired			—			(2)
Net proceeds from sale of property and equipment			7			—
Purchases of property, plant, and equipment			(4,409)			(4,389)
Net proceeds from sale of business			—			26,991
Net cash (used in) provided by investing activities of continuing operations			(4,402)			22,600
Net cash used in investing activities of discontinued operations			—			(176)
Net cash (used in) provided by investing activities			(4,402)			22,424
Cash Flows from Financing Activities
Proceeds from long-term debt			47,500			20,000
Long-term debt payments			(29,000)			(46,636)
Purchase of common stock at market prices			(3,461)			(4,662)
Net proceeds from issuance of common stock			—			910
Net cash provided by (used in) financing activities			15,039			(30,388)
Effect of exchange rate changes on cash			(159)			(134)
Net increase (decrease) in cash and cash equivalents			2,724			(11,323)
Cash and cash equivalents at beginning of year			12,849			32,054
Cash and cash equivalents at end of period		$	15,573		$	20,731

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
			Three Months Ended March 31,2022
			As Reported In GAAP Statements			Restructuring Charges				Senior Leadership Transition Costs			Acquisition Related Items				Portfolio Management			Adjusted Financial Measures
Net Sales
Renewables			$	78,783		$		—		$	—		$		—		$	—		$	78,783
Residential				179,485				—			—				—			—			179,485
Agtech				42,428				—			—				—			(1,823)			40,605
Infrastructure				17,169				—			—				—			—			17,169
Consolidated sales				317,865				—			—				—			(1,823)			316,042
Income from operations
Renewables				(6,984)				2,526			(209)				390			—			(4,277)
Residential				33,435				3			284				—			—			33,722
Agtech				31				(9)			—				—			2,525			2,547
Infrastructure				1,181				(63)			—				—			—			1,118
Segments Income				27,663				2,457			75				390			2,525			33,110
Unallocated corporate expense				(6,468)				20			255				7			—			(6,186)
Consolidated income from operations				21,195				2,477			330				397			2,525			26,924
Interest expense				485				—			—				—			—			485
Other expense				153				—			—				—			—			153
Income before income taxes				20,557				2,477			330				397			2,525			26,286
Provision for income taxes				5,101				622			83				100			634			6,540
Income from continuing operations			$	15,456		$		1,855		$	247		$		297		$	1,891		$	19,746
Income from continuing operations per share - diluted			$	0.47		$		0.05		$	0.01		$		0.01		$	0.06		$	0.60
Operating margin
Renewables				(8.9) %				3.2 %			(0.3) %				0.5 %			— %			(5.4) %
Residential				18.6 %				— %			0.2 %				— %			— %			18.8 %
Agtech				0.1 %				— %			— %				— %			6.0 %			6.3 %
Infrastructure				6.9 %				(0.4) %			— %				— %			— %			6.5 %
Segments Margin				8.7 %				0.8 %			— %				0.1 %			0.8 %			10.5 %
Consolidated				6.7 %				0.8 %			0.1 %				0.1 %			0.8 %			8.5 %

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
			Three Months Ended March 31, 2021
			As Reported In GAAP Statements			Restructuring & Senior Leadership Transition Costs			Acquisition Related Items			Adjusted Financial Measures			Portfolio Management*			Adjusted Financial Measures*
Net Sales
Renewables			$	85,512		$	—		$	—		$	85,512		$	—		$	85,512
Residential				140,217			—			—			140,217			—			140,217
Agtech				46,739			—			—			46,739			(4,973)			41,766
Infrastructure				15,124			—			—			15,124			—			15,124
Consolidated sales				287,592			—			—			287,592			(4,973)			282,619
Income from operations
Renewables				(521)			4,971			1,900			6,350			—			6,350
Residential				22,934			65			—			22,999			—			22,999
Agtech				929			204			—			1,133			836			1,969
Infrastructure				2,037			—			—			2,037			—			2,037
Segments Income				25,379			5,240			1,900			32,519			836			33,355
Unallocated corporate expense				(12,564)			1,289			883			(10,392)			—			(10,392)
Consolidated income from operations				12,815			6,529			2,783			22,127			836			22,963
Interest expense				444			—			—			444			—			444
Other expense				315			—			—			315			—			315
Income before income taxes				12,056			6,529			2,783			21,368			836			22,204
Provision for income taxes				1,560			1,679			707			3,946			221			4,167
Income from continuing operations			$	10,496		$	4,850		$	2,076		$	17,422		$	615		$	18,037
Income from continuing operations per share - diluted			$	0.32		$	0.15		$	0.06		$	0.53		$	0.01		$	0.54
Operating margin
Renewables				(0.6) %			5.8 %			2.2 %			7.4 %			— %			7.4 %
Residential				16.4 %			— %			— %			16.4 %			— %			16.4 %
Agtech				2.0 %			0.4 %			— %			2.4 %			2.3 %			4.7 %
Infrastructure				13.5 %			— %			— %			13.5 %			— %			13.5 %
Segments Margin				8.8 %			1.8 %			0.7 %			11.3 %			0.5 %			11.8 %
Consolidated				4.5 %			2.2 %			1.0 %			7.7 %			0.4 %			8.1 %
*Recast to exclude processing equipment business which was reclassified as held for sale as of March 31, 2022.

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
			Twelve Months Ended December 31, 2021
			As Reported In GAAP Statements			Restructuring & Intangible Asset Impairment Charges			Acquisition Related Items & Senior Leadership Transition Costs			Adjusted Financial Measures			Portfolio Management*			Adjusted Financial Measures *
Net Sales
Renewables			$	432,096		$	—		$	—		$	432,096		$	—		$	432,096
Residential				635,505			—			—			635,505			—			635,505
Agtech				199,161			—			—			199,161			(20,328)			178,833
Infrastructure				73,021			—			—			73,021			—			73,021
Consolidated sales				1,339,783			—			—			1,339,783			(20,328)			1,319,455
Income from operations
Renewables				20,158			5,962			8,610			34,730			—			34,730
Residential				105,821			393			—			106,214			—			106,214
Agtech				(931)			9,987			—			9,056			3,539			12,595
Infrastructure				8,911			26			—			8,937			—			8,937
Segments Income				133,959			16,368			8,610			158,937			3,539			162,476
Unallocated corporate expense				(36,971)			145			2,282			(34,544)			—			(34,544)
Consolidated income from operations				96,988			16,513			10,892			124,393			3,539			127,932
Interest expense				1,639			—			—			1,639			—			1,639
Other expense				(4,213)			—			4,747			534			—			534
Income before income taxes				99,562			16,513			6,145			122,220			3,539			125,759
Provision for income taxes				25,046			4,150			1,059			30,255			926			31,181
Income from continuing operations			$	74,516		$	12,363		$	5,086		$	91,965		$	2,613		$	94,578
Income from continuing operations per share - diluted			$	2.25		$	0.38		$	0.15		$	2.78		$	0.08		$	2.86
Operating margin
Renewables				4.7 %			1.4 %			2.0 %			8.0 %			— %			8.0 %
Residential				16.7 %			0.1 %			— %			16.7 %			— %			16.7 %
Agtech				(0.5) %			5.0 %			— %			4.5 %			2.5 %			7.0 %
Infrastructure				12.2 %			— %			— %			12.2 %			— %			12.2 %
Segments Margin				10.0 %			1.2 %			0.6 %			11.9 %			0.4 %			12.3 %
Consolidated				7.2 %			1.2 %			0.7 %			9.3 %			0.4 %			9.7 %
*Recast to exclude processing equipment business which was reclassified as held for sale as of March 31, 2022.

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Income From Continuing Operations to Adjusted EBITDA
(in thousands)
(unaudited)
			Three Months Ended March 31,2022
			Consolidated			Renewables			Residential			Agtech			Infrastructure
Net Sales			$	317,865		$	78,783		$	179,485		$	42,428		$	17,169
Less: Processing Revenues*				(1,823)			—			—			(1,823)			—
Adjusted Net Sales			$	316,042		$	78,783		$	179,485		$	40,605		$	17,169
Income From Continuing Operations				15,456
Provision for Income Taxes				5,101
Interest Expense				485
Other Expense				153
Operating Profit				21,195			(6,984)			33,435			31			1,181
Adjusted Measures**				5,729			2,707			287			2,516			(63)
Adjusted Operating Profit				26,924			(4,277)			33,722			2,547			1,118
Adjusted Operating Margin				8.5 %			(5.4) %			18.8 %			6.3 %			6.5 %
Adjusted Other Expense				153			—			—			—			—
Depreciation & Amortization				6,336			2,143			2,053			1,319			783
Less: Held for Sale Depreciation & Amortization				(332)			—			—			(332)			—
Adjusted Depreciation & Amortization				6,004			2,143			2,053			987			783
Stock Compensation Expense				1,352			253			191			70			33
Less: Senior Leadership Transition Related Stock Compensation Recovery				155			—			—			—			—
Adjusted Stock Compensation Expense				1,507			253			191			70			33
Adjusted EBITDA				34,282			(1,881)			35,966			3,604			1,934
Adjusted EBITDA Margin				10.8 %			(2.4) %			20.0 %			8.9 %			11.3 %
*To remove revenues of processing equipment business classified as held for sale
** Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Income From Continuing Operations to Adjusted EBITDA
(in thousands)
(unaudited)
			Three Months Ended March 31, 2021
			Consolidated			Renewables			Residential			Agtech			Infrastructure
Net Sales			$	287,592		$	85,512		$	140,217		$	46,739		$	15,124
Less: Processing Revenues*				(4,973)			—			—			(4,973)			—
Adjusted Net Sales			$	282,619		$	85,512		$	140,217		$	41,766		$	15,124
Income From Continuing Operations				10,496
Provision for Income Taxes				1,560
Interest Expense				444
Other Expense				315
Operating Profit				12,815			(521)			22,934			929			2,037
Adjusted Measures**				10,148			6,871			65			1,040			—
Adjusted Operating Profit				22,963			6,350			22,999			1,969			2,037
Adjusted Operating Margin				8.1 %			7.4 %			16.4 %			4.7 %			13.5 %
Adjusted Other Expense				315			—			—			—			—
Depreciation & Amortization				7,974			3,591			2,215			1,348			768
Less: Held for Sale Depreciation & Amortization				(330)			—			—			(330)			—
Less: Acquisition-Related Amortization				(1,575)			(1,575)			—			—			—
Adjusted Depreciation & Amortization				6,069			2,016			2,215			1,018			768
Stock Compensation Expense				2,368			154			220			151			28
Less: Senior Leadership Transition Related Stock Compensation Expense				(504)			—			—			—			—
Adjusted Stock Compensation Expense				1,864			154			220			151			28
Adjusted EBITDA				30,581			8,520			25,434			3,138			2,833
Adjusted EBITDA Margin				10.8 %			10.0 %			18.1 %			7.5 %			18.7 %
*To remove revenues of processing equipment business classified as held for sale
** Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Income From Continuing Operations to Adjusted EBITDA
(in thousands)
(unaudited)
			Twelve Months Ended December 31, 2021
			Consolidated			Renewables			Residential			Agtech			Infrastructure
Net Sales			$	1,339,783		$	432,096		$	635,505		$	199,161		$	73,021
Less: Processing Revenues*				(20,328)			—			—			(20,328)			—
Adjusted Net Sales			$	1,319,455		$	432,096		$	635,505		$	178,833		$	73,021
Income From Continuing Operations				74,516
Provision for Income Taxes				25,046
Interest Expense				1,639
Other Income				(4,213)
Operating Profit				96,988			20,158			105,821			(931)			8,911
Adjusted Measures**				30,944			14,572			393			13,526			26
Adjusted Operating Profit				127,932			34,730			106,214			12,595			8,937
Adjusted Operating Margin				9.7 %			8.0 %			16.7 %			7.0 %			12.2 %
Adjusted Other Income				534			—			—			—			—
Depreciation & Amortization				31,966			14,682			8,694			5,279			3,092
Less: Held for Sale Depreciation & Amortization				(1,324)			—			—			(1,324)			—
Less: Acquisition-Related Amortization				(6,273)			(6,273)			—			—			—
Adjusted Depreciation & Amortization				24,369			8,409			8,694			3,955			3,092
Stock Compensation Expense				8,652			772			990			635			104
Less: Senior Leadership Transition Related Stock Compensation Expense				(757)			—			—			(36)			—
Adjusted Stock Compensation Expense				7,895			772			990			599			104
Adjusted EBITDA				159,662			43,911			115,898			17,149			12,133
Adjusted EBITDA Margin				12.1 %			10.2 %			18.2 %			9.6 %			16.6 %
*To remove revenues of processing equipment business classified as held for sale
** Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220504005217/en/

LHA Investor Relations

Jody Burfening/Carolyn Capaccio

(212) 838-3777

rock@lhai.com

Source: Gibraltar Industries, Inc.

FAQ

What were Gibraltar Industries' revenue and EPS results for Q1 2022?

Gibraltar reported Q1 2022 GAAP revenue of $317.9 million, up 11%, and GAAP EPS of $0.47, up 47%.

How did the Residential segment perform in Q1 2022?

The Residential segment saw a revenue increase of 28%, marking the seventh consecutive quarter of double-digit growth.

What is Gibraltar's revenue guidance for 2022?

Gibraltar expects 2022 revenue to be between $1.38 billion and $1.43 billion.

What challenges did the Renewables segment face?

The Renewables segment experienced a 7.8% revenue decline due to continuing supply chain issues and severe weather.

What is Gibraltar's outlook for 2022?

Gibraltar reaffirmed its guidance, expecting solid performance across segments, particularly in Renewables and Residential.