Gibraltar Announces Fourth Quarter and 2021 Financial Results

Rhea-AI Summary

Gibraltar Industries (Nasdaq: ROCK) reported Q4 2021 revenue of $334.4 million, a 26.1% increase year-over-year, but faced a 44.3% decrease in GAAP net income to $9.8 million. Q4 GAAP EPS stood at $0.30, down from $0.53 in 2020. The company anticipates 2022 revenue between $1.38 billion and $1.43 billion, with GAAP EPS expected between $2.80 and $3.00. Despite challenges in the Renewables segment from supply chain disruptions, the Residential and Infrastructure sectors showed positive growth.

Positive

• Q4 2021 revenue increased by 26.1% to $334.4 million.
• Residential segment sales rose by 24.4%, marking six consecutive quarters of double-digit growth.
• Infrastructure segment revenue grew by 33.1%, driven by government spending.

Negative

• GAAP net income decreased by 44.3% to $9.8 million.
• Renewables segment faced a 112% drop in operating income due to supply chain issues.
• Agtech segment revenue declined by 16.9% amid construction permit backlogs.

2021 Revenue of $1.34B, GAAP EPS of $2.25, Adjusted EPS of $2.78

Q4 Revenue of $334.4M, Q4 GAAP EPS of $0.30; Adjusted EPS of $0.54

Order Backlog Increased 16%, Led by Renewables, with Strength Across the Board

2022 Outlook: Revenue $1.38B-$1.43B, EPS: GAAP $2.80-$3.00, Adjusted $3.20-$3.40

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 December 31, 2021.

“Fourth quarter results were within our previously-announced range, capping off a year of top-line growth as we increased our leadership positions in sustainable, high-demand markets, while grappling with increasing complexity in a challenging inflation and supply chain environment,” Chairman and CEO Bill Bosway stated. “Renewables’ results, as previously disclosed, were impacted by increased cost absorption from supply disruptions causing increased field costs and unanticipated levels of structural steel inflation. We delivered solid results in our Residential, Agtech, and Infrastructure segments, all of which expanded margins on achieving greater balance in price/cost and improving supply chain management and execution. We are proud of all of our teams and appreciate their focus and agility in confronting each obstacle as we progressed through 2021.”

Fourth Quarter 2021 Consolidated Results from Continuing Operations

Below are fourth quarter 2021 consolidated results from continuing operations:

		Three Months Ended December 31,
$Millions, except EPS		GAAP							Adjusted
		2021		2020		% Change			2021		2020		% Change
Net Sales		$334.4		$265.2		26.1%			$334.4		$265.2		26.1%
Net Income		$9.8		$17.6		-44.3%			$18.0		$19.5		-7.7%
Diluted EPS		$0.30		$0.53		-43.4%			$0.54		$0.59		-8.5%

Net sales from continuing operations increased 26.1% to $334.4 million, with organic growth contributing 8.6% and recent acquisitions contributing 17.5% despite continued supply chain challenges in the quarter, driven by price, volume, and participation gains.

GAAP earnings decreased 44.3% to $9.8 million, or $0.30 per share, and adjusted earnings decreased 7.7% to $18.0 million, or $0.54 per share. As previously announced, the quarter was impacted by margin compression in the Renewables segment from two issues – supply disruptions causing increased field costs, and an unanticipated level of inflation on structural steel in solar canopy racking projects. Positive contributors to the quarter included: Residential segment margins recovered through pricing actions, volume, participation gains, and continued 80/20 initiatives; Infrastructure segment margins benefited from lean productivity initiatives and favorable product line mix; Agtech segment margin improved sequentially on continued execution from lean enterprise initiatives and supply chain improvements. Adjusted measures remove charges for restructuring initiatives, acquisition-related items, and senior leadership transition costs, as further described in the appended reconciliation of adjusted financial measures.

Fourth Quarter Segment Results

Renewables

For the fourth quarter, the Renewables segment reported:

		Three Months Ended December 31,
$Millions		GAAP							Adjusted
		2021		2020		% Change			2021		2020		% Change
Net Sales		$108.7		$64.6		68.3%			$108.7		$64.6		68.3%
Operating Income		$(1.0)		$8.3		-112.0%			$1.4		$8.3		-83.1%
Operating Margin		(1.0)%		12.8%		(1380) bps			1.3%		12.8%		(1150) bps

Revenue increased 68.3% including the TerraSmart acquisition, with organic revenue decreasing 2.3% driven by solar project delays related to supply chain and field operations disruptions. Backlog increased 27%, driven by strength in both ground mount and canopy solutions.

Adjusted operating income decreased to $1.4 million and operating margins contracted to 1.3% as field project management inefficiencies associated with market supply disruptions and an unanticipated level of cost inflation on structural steel used in solar canopy projects. The integration of TerraSmart remains on track with organization, process development, information systems, supply chain, and in-sourcing activities gaining momentum per plan.

Residential

For the fourth quarter, the Residential segment reported:

		Three Months Ended December 31,
$Millions		GAAP							Adjusted
		2021		2020		% Change			2021		2020		% Change
Net Sales		$159.5		$128.2		24.4%			$159.5		$128.2		24.4%
Operating Income		$26.3		$20.3		29.6%			$26.5		$20.4		29.9%
Operating Margin		16.5%		15.8%		70 bps			16.6%		15.9%		70 bps

Revenue increased 24.4%, marking the sixth consecutive quarter of double-digit growth, nearly all of which was organic. Revenue was driven by price, volume and participation gains.

Adjusted operating income grew 29.9% and adjusted operating margin of 16.6% improved 70 basis points as price management and key operating actions began to drive year-over-year margin recovery. Gibraltar continues to work with supply chain partners to support customer needs while continuing its focus on price/cost management, simplification, in-lining, and automation.

Agtech

For the fourth quarter, the Agtech segment reported:

		Three Months Ended December 31,
$Millions		GAAP							Adjusted
		2021		2020		% Change			2021		2020		% Change
Net Sales		$49.8		$59.9		-16.9%			$49.8		$59.9		-16.9%
Operating Income		$(5.1)		$3.4		-250.0%			$3.1		$3.8		-18.4%
Operating Margin		(10.2)%		5.7%		(1590) bps			6.3%		6.4%		(10) bps

Revenue decreased 16.9% as state and local agencies continued to work through construction permit backlogs for facilities designed to grow fruits and vegetables. For the states which legalized cannabis in 2020, the process of issuing production and processing licenses to operators remains slower than expected resulting in additional customer project delays during the quarter. The commercial greenhouse business continued solid growth across its core product lines serving the retail, institutional and car wash markets. Order backlog increased modestly in the quarter, with continued strength in produce and commercial businesses.

Adjusted operating margin improved 120 basis points compared to the third quarter on continued execution from lean enterprise initiatives, ongoing integration activities, and efforts to optimize supply chain, particularly in sourcing roofing systems and glass; margin was essentially flat year-over-year.

Infrastructure

For the fourth quarter, the Infrastructure segment reported:

		Three Months Ended December 31,
$Millions		GAAP							Adjusted
		2021		2020		% Change			2021		2020		% Change
Net Sales		$16.5		$12.4		33.1%			$16.5		$12.4		33.1%
Operating Income		$1.0		$0.6		66.7%			$1.1		$0.8		37.5%
Operating Margin		6.4%		4.6%		180 bps			6.5%		6.4%		10 bps

Revenue increased 33.1%, driven by growth in both fabricated and in non-fabricated products. Management expects to see the impact of incremental government spending on infrastructure toward the end of 2022. Order backlog increased 12%.

Adjusted operating margin was up slightly as the benefits of 80/20 initiatives and favorable mix offset unanticipated structural steel inflation as well as labor availability challenges.

Business Outlook

“2021 was a challenging year in which we gained valuable learning from an environment that pressure-tested our systems, processes, tools, and organization and operating paradigms. These challenges - unprecedented inflation, supply chain inefficiencies, and labor availability issues along with acquisition integrations and additional pandemic variants - helped us identify additional opportunities to improve our business, portfolio, business systems, and organization,” stated Mr. Bosway.

“As we enter 2022, our demand is solid across the business and the robust long-term fundamentals supporting our end markets remain intact. We expect the market environment to be dynamic for at least the first half of the year as inflation, labor, transportation, and pandemic challenges persist,” Mr. Bosway concluded. “I am confident, given the successes we achieved and the investments we made over the last 12 months in our organization, systems, and processes, we will enhance our 2022 performance and deliver full year growth and margin expansion as we continue to execute toward our 2025 objectives.”

Gibraltar is providing guidance for revenue and earnings for the full year 2022. Consolidated revenue is expected to range between $1.38 billion and $1.43 billion, compared to $1.34 billion in 2021. GAAP EPS is expected to range between $2.80 and $3.00, compared to $2.25 in 2021, and adjusted EPS is expected to range between $3.20 and $3.40, compared to $2.78 in 2021.

Fourth Quarter 2021 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 2021. 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, the impacts of COVID-19 on the global economy and 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, 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, including 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 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, and acquisition related costs. 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. Special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations.

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 December 31,								Twelve Months Ended December 31,
		2021				2020				2021				2020
Net sales		$	334,449			$	265,201			$	1,339,783			$	1,032,578
Cost of sales			268,639				202,775				1,049,772				776,235
Gross profit			65,810				62,426				290,011				256,343
Selling, general, and administrative expense			42,724				39,704				184,723				149,153
Intangible asset impairment			8,300				—				8,300				—
Income from operations			14,786				22,722				96,988				107,190
Interest expense, net			459				220				1,639				703
Other expense (income)			66				150				(4,213	)			(1,272	)
Income before taxes			14,261				22,352				99,562				107,759
Provision for income taxes			4,468				4,754				25,046				24,468
Income from continuing operations			9,793				17,598				74,516				83,291
Discontinued operations:
(Loss) income before taxes			(388	)			(25,992	)			1,479				(16,602	)
Provision for income taxes			43				151				366				2,123
(Loss) income from discontinued operations			(431	)			(26,143	)			1,113				(18,725	)
Net income (loss)		$	9,362			$	(8,545	)		$	75,629			$	64,566
Net earnings per share – Basic:
Income from continuing operations		$	0.30			$	0.54			$	2.27			$	2.55
(Loss) income from discontinued operations			(0.02	)			(0.80	)			0.03				(0.57	)
Net income (loss)		$	0.28			$	(0.26	)		$	2.30			$	1.98
Weighted average shares outstanding – Basic			32,910				32,719				32,873				32,664
Net earnings per share – Diluted:
Income from continuing operations		$	0.30			$	0.53			$	2.25			$	2.53
(Loss) income from discontinued operations			(0.02	)			(0.79	)			0.04				(0.57	)
Net income (loss)		$	0.28			$	(0.26	)		$	2.29			$	1.96
Weighted average shares outstanding – Diluted			33,055				33,016				33,054				32,918

GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
		December 31, 2021				December 31, 2020
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	12,849			$	32,054
Accounts receivable, net of allowance of $3,738 and $3,529, respectively			236,444				197,990
Inventories, net			176,207				98,307
Prepaid expenses and other current assets			21,467				19,671
Assets of discontinued operations			—				77,438
Total current assets			446,967				425,460
Property, plant, and equipment, net			96,885				89,562
Operating lease assets			18,120				25,229
Goodwill			510,942				514,279
Acquired intangibles			141,504				156,365
Other assets			483				1,599
		$	1,214,901			$	1,212,494
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	172,286			$	134,738
Accrued expenses			67,993				83,505
Billings in excess of cost			46,711				34,702
Liabilities of discontinued operations			—				49,295
Total current liabilities			286,990				302,240
Long-term debt			23,781				85,636
Deferred income taxes			40,278				39,057
Non-current operating lease liabilities			11,390				17,730
Other non-current liabilities			27,204				24,026
Stockholders’ equity:
Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding			—				—
Common stock, $0.01 par value; authorized 100,000 and 50,000 shares in 2021 and 2020; 33,799 and 33,568 shares issued and outstanding in 2021 and 2020			338				336
Additional paid-in capital			314,541				304,870
Retained earnings			545,572				469,943
Accumulated other comprehensive income (loss)			187				(2,461	)
Cost of 1,107 and 1,028 common shares held in treasury in 2021 and 2020			(35,380	)			(28,883	)
Total stockholders’ equity			825,258				743,805
		$	1,214,901			$	1,212,494

GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
		Twelve Months Ended December 31,
		2021				2020
Cash Flows from Operating Activities
Net income		$	75,629			$	64,566
Income (loss) from discontinued operations			1,113				(18,725	)
Income from continuing operations			74,516				83,291
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			31,966				20,915
Intangible asset impairment			8,300				—
Stock compensation expense			8,652				8,173
Gain on sale of business			—				(1,881	)
Exit activity costs, non-cash			1,193				493
Provision for deferred income taxes			2,968				3,786
Other, net			1,570				1,944
Changes in operating assets and liabilities (excluding the effects of acquisitions):
Accounts receivable			(41,887	)			2,277
Inventories			(85,763	)			(5,719	)
Other current assets and other assets			(426	)			5,467
Accounts payable			38,367				(1,160	)
Accrued expenses and other non-current liabilities			(14,384	)			(44,570	)
Net cash provided by operating activities of continuing operations			25,072				73,016
Net cash (used in) provided by operating activities of discontinued operations			(2,002	)			16,088
Net cash provided by operating activities			23,070				89,104
Cash Flows from Investing Activities
Acquisitions, net of cash acquired			4,143				(313,686	)
Net proceeds from sale of property and equipment			214				77
Purchases of property, plant, and equipment			(17,705	)			(13,068	)
Net proceeds from sale of business			38,062				2,000
Net cash provided by (used in) investing activities of continuing operations			24,714				(324,677	)
Net cash used in investing activities of discontinued operations			(176	)			(2,033	)
Net cash provided by (used in) investing activities			24,538				(326,710	)
Cash Flows from Financing Activities
Proceeds from long-term debt			59,500				85,000
Long-term debt payments			(120,636	)			—
Purchase of common stock at market prices			(6,497	)			(6,656	)
Net proceeds from issuance of common stock			1,021				1,119
Net cash (used in) provided by financing activities			(66,612	)			79,463
Effect of exchange rate changes on cash			(201	)			(1,166	)
Net decrease in cash and cash equivalents			(19,205	)			(159,309	)
Cash and cash equivalents at beginning of year			32,054				191,363
Cash and cash equivalents at end of year		$	12,849			$	32,054

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
		Three Months Ended December 31, 2021
		As Reported In GAAP Statements				Restructuring & Intangible Asset Impairment Charges				Senior Leadership Transition Costs				Acquisition Related Items				Adjusted Financial Measures
Net Sales
Renewables		$	108,671			$	—			$	—			$	—			$	108,671
Residential			159,534				—				—				—				159,534
Agtech			49,751				—				—				—				49,751
Infrastructure			16,493				—				—				—				16,493
Consolidated sales			334,449				—				—				—				334,449
Income from operations
Renewables			(1,037	)			74				251				2,145				1,433
Residential			26,250				216				—				—				26,466
Agtech			(5,064	)			8,203				—				—				3,139
Infrastructure			1,048				26				—				—				1,074
Segment Income			21,197				8,519				251				2,145				32,112
Unallocated corporate expense			(6,411	)			49				1				2				(6,359	)
Consolidated income from operations			14,786				8,568				252				2,147				25,753
Interest expense			459				—				—				—				459
Other expense			66				—				—				—				66
Income before income taxes			14,261				8,568				252				2,147				25,228
Provision for income taxes			4,468				2,153				58				536				7,215
Income from continuing operations		$	9,793			$	6,415			$	194			$	1,611			$	18,013
Income from continuing operations per share – diluted		$	0.30			$	0.20			$	—			$	0.04			$	0.54
Operating margin
Renewables			(1.0	)%			0.1	%			0.2	%			1.9	%			1.3	%
Residential			16.5	%			0.1	%			—	%			—	%			16.6	%
Agtech			(10.2	)%			16.5	%			—	%			—	%			6.3	%
Infrastructure			6.4	%			0.2	%			—	%			—	%			6.5	%
Segments Margin			6.3	%			2.6	%			0.1	%			0.7	%			9.6	%
Consolidated			4.4	%			2.6	%			0.1	%			0.7	%			7.7	%

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
Renewables		$	64,648			$	—			$	—			$	—			$	64,648
Residential			128,205				—				—				—				128,205
Agtech			59,905				—				—				—				59,905
Infrastructure			12,443				—				—				—				12,443
Consolidated sales			265,201				—				—				—				265,201
Income from operations
Renewables			8,254				—				—				—				8,254
Residential			20,287				70				—				—				20,357
Agtech			3,402				369				—				34				3,805
Infrastructure			573				226				—				—				799
Segment 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
Renewables			12.8	%			—	%			—	%			—	%			12.8	%
Residential			15.8	%			0.1	%			—	%			—	%			15.9	%
Agtech			5.7	%			0.6	%			—	%			0.1	%			6.4	%
Infrastructure			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)
		Twelve Months Ended December 31, 2021
		As Reported In GAAP Statements				Restructuring & Intangible Asset Impairment Charges				Senior Leadership Transition Costs				Acquisition Related Items				Adjusted Financial Measures
Net Sales
Renewables		$	432,096			$	—			$	—			$	—			$	432,096
Residential			635,505				—				—				—				635,505
Agtech			199,161				—				—				—				199,161
Infrastructure			73,021				—				—				—				73,021
Consolidated sales			1,339,783				—				—				—				1,339,783
Income from operations
Renewables			20,158				5,962				643				7,967				34,730
Residential			105,821				393				—				—				106,214
Agtech			(931	)			9,987				—				—				9,056
Infrastructure			8,911				26				—				—				8,937
Segment Income			133,959				16,368				643				7,967				158,937
Unallocated corporate expense			(36,971	)			145				1,312				970				(34,544	)
Consolidated income from operations			96,988				16,513				1,955				8,937				124,393
Interest expense			1,639				—				—				—				1,639
Other (income) expense			(4,213	)			—				—				4,747				534
Income before income taxes			99,562				16,513				1,955				4,190				122,220
Provision for income taxes			25,046				4,150				450				609				30,255
Income from continuing operations		$	74,516			$	12,363			$	1,505			$	3,581			$	91,965
Income from continuing operations per share – diluted		$	2.25			$	0.38			$	0.04			$	0.11			$	2.78
Operating margin
Renewables			4.7	%			1.4	%			0.1	%			1.9	%			8.0	%
Residential			16.7	%			0.1	%			—	%			—	%			16.7	%
Agtech			(0.5	)%			5.0	%			—	%			—	%			4.5	%
Infrastructure			12.2	%			—	%			—	%			—	%			12.2	%
Segments Margin			10.0	%			1.2	%			—	%			0.6	%			11.9	%
Consolidated			7.2	%			1.2	%			0.1	%			0.6	%			9.3	%

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
Renewables		$	238,107			$	—			$	—			$	—			$	—			$	238,107
Residential			522,814				—				—				—				—				522,814
Agtech			209,460				—				—				—				—				209,460
Infrastructure			62,197				—				—				—				—				62,197
Consolidated sales			1,032,578				—				—				—				—				1,032,578
Income from operations
Renewables			30,105				15				—				—				—				30,120
Residential			94,430				740				—				—				—				95,170
Agtech			10,633				932				—				2,779				—				14,344
Infrastructure			7,233				226				—				—				—				7,459
Segment 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
Renewables			12.6	%			—	%			—	%			—	%			—	%			12.6	%
Residential			18.1	%			0.1	%			—	%			—	%			—	%			18.2	%
Agtech			5.1	%			0.4	%			—	%			1.3	%			—	%			6.8	%
Infrastructure			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 Income From Continuing Operations to Adjusted EBITDA
(in thousands)
(unaudited)
		Three Months Ended December 31, 2021
		Consolidated				Renewables				Residential				Agtech				Infrastructure
Net Sales		$	334,449			$	108,671			$	159,534			$	49,751			$	16,493
Income From Continuing Operations			9,793
Provision for Income Taxes			4,468
Interest Expense			459
Other (Income) / Expense			66
Operating Profit			14,786				(1,037	)			26,250				(5,064	)			1,048
Restructuring Charges			8,568				74				216				8,203				26
Senior Leadership Transition Costs			252				251				—				—				—
Acquisition Related Items			2,147				2,145				—				—				—
Adjusted Operating Profit			25,753				1,433				26,466				3,139				1,074
Adjusted Operating Margin			7.7	%			1.3	%			16.6	%			6.3	%			6.5	%
Adjusted Other (Income) / Expense			66				—				—				—				—
Depreciation & Amortization			8,008				3,749				2,125				1,295				782
Less: Acquisition-Related Amortization			(1,567	)			(1,567	)			—				—				—
Adjusted Depreciation & Amortization			6,441				2,182				2,125				1,295				782
Stock Compensation Expense			1,755				162				224				86				33
Adjusted EBITDA			33,883				3,777				28,815				4,520				1,889
Adjusted EBITDA Margin			10.1	%			3.5	%			18.1	%			9.1	%			11.5	%

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Income From Continuing Operations to Adjusted EBITDA
(in thousands)
(unaudited)
		Three Months Ended December 31, 2020
		Consolidated				Renewables				Residential				Agtech				Infrastructure
Net Sales		$	265,201			$	64,648			$	128,205			$	59,905			$	12,443
Income From Continuing Operations			17,598
Provision for Income Taxes			4,754
Interest Expense			220
Other (Income) / Expense			150
Operating Profit			22,722				8,254				20,287				3,402				573
Restructuring Charges			924				—				70				369				226
Senior Leadership Transition Costs			14				—				—				—				—
Acquisition Related Items			1,700				—				—				34				—
Adjusted Operating Profit			25,360				8,254				20,357				3,805				799
Adjusted Operating Margin			9.6	%			12.8	%			15.9	%			6.4	%			6.4	%
Adjusted Other (Income) / Expense			150				—				—				—				—
Depreciation & Amortization			5,166				827				2,232				1,373				761
Less: Acquisition-Related Amortization			(34	)			—				—				(34	)			—
Adjusted Depreciation & Amortization			5,132				827				2,232				1,339				761
Stock Compensation Expense			2,022				86				287				331				36
Adjusted EBITDA			32,364				9,167				22,876				5,475				1,596
Adjusted EBITDA Margin			12.2	%			14.2	%			17.8	%			9.1	%			12.8	%

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
Income From Continuing Operations			74,516
Provision for Income Taxes			25,046
Interest Expense			1,639
Other (Income) / Expense			(4,213	)
Operating Profit			96,988				20,158				105,821				(931	)			8,911
Restructuring Charges			16,513				5,962				393				9,987				26
Senior Leadership Transition Costs			1,955				643				—				—				—
Acquisition Related Items			8,937				7,967				—				—				—
Adjusted Operating Profit			124,393				34,730				106,214				9,056				8,937
Adjusted Operating Margin			9.3	%			8.0	%			16.7	%			4.5	%			12.2	%
Adjusted Other (Income) / Expense			534				—				—				—				—
Depreciation & Amortization			31,966				14,682				8,694				5,279				3,092
Less: Acquisition-Related Amortization			(6,273	)			(6,273	)			—				—				—
Adjusted Depreciation & Amortization			25,693				8,409				8,694				5,279				3,092
Stock Compensation Expense			7,895				772				990				599				104
Adjusted EBITDA			157,447				43,911				115,898				14,934				12,133
Adjusted EBITDA Margin			11.8	%			10.2	%			18.2	%			7.5	%			16.6	%

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Income From Continuing Operations to Adjusted EBITDA
(in thousands)
(unaudited)
		Twelve Months Ended December 31, 2020
		Consolidated				Renewables				Residential				Agtech				Infrastructure
Net Sales		$	1,032,578			$	238,107			$	522,814			$	209,460			$	62,197
Income From Continuing Operations			83,291
Provision for Income Taxes			24,468
Interest Expense			703
Other (Income) / Expense			(1,272	)
Operating Profit			107,190				30,105				94,430				10,633				7,233
Restructuring Charges			2,288				15				740				932				226
Senior Leadership Transition Costs			2,526				—				—				—				—
Acquisition Related Items			4,770				—				—				2,779				—
Adjusted Operating Profit			116,774				30,120				95,170				14,344				7,459
Adjusted Operating Margin			11.3	%			12.6	%			18.2	%			6.8	%			12.0	%
Adjusted Other (Income) / Expense			609				—				—				—				—
Depreciation & Amortization			20,915				3,376				8,120				6,068				3,060
Less: Acquisition-Related Amortization			(905	)			—				—				(905	)			—
Adjusted Depreciation & Amortization			20,010				3,376				8,120				5,163				3,060
Stock Compensation Expense			8,173				86				767				845				50
Adjusted EBITDA			144,348				33,582				104,057				20,352				10,569
Adjusted EBITDA Margin			14.0	%			14.1	%			19.9	%			9.7	%			17.0	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220223005401/en/

LHA Investor Relations

Jody Burfening/Carolyn Capaccio

(212) 838-3777

rock@lhai.com

Source: Gibraltar Industries, Inc.

FAQ

What were Gibraltar Industries' Q4 2021 earnings results?

Gibraltar reported Q4 2021 revenue of $334.4 million with GAAP EPS at $0.30, a decrease of 43.4% from the previous year.

What is the 2022 revenue outlook for Gibraltar Industries?

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

How did the Renewables segment perform in Q4 2021?

The Renewables segment reported revenue growth of 68.3% but faced significant operating losses due to supply chain disruptions.

What is Gibraltar's EPS guidance for 2022?

Gibraltar provided EPS guidance of $2.80 to $3.00 for GAAP and $3.20 to $3.40 adjusted for 2022.