Gibraltar Announces Fourth Quarter and Full Year 2023 Financial Results

Rhea-AI Summary

Gibraltar Industries, Inc. (Nasdaq: ROCK) reports strong financial results for Q4 2023 with 5% revenue growth, higher margins, and improved EPS. The company generated $218 million in operating cash flow and expects a strong 2024. Net sales increased by 5.1%, GAAP earnings reached $19.4 million, and adjusted EPS grew by 18.1%.

Positive

• Strong revenue growth of 5% in Q4 2023.
• Higher margins and improved adjusted EPS.
• Operating cash flow of $218 million generated in 2023.
• Expectations for a strong performance in 2024.
• Net sales increased by 5.1% with all segments contributing to growth.
• Adjusted net income increased by 16.1% to $26.0 million.
• Adjusted EPS grew by 18.1%.
• Consolidated revenue expected to range between $1.43 billion and $1.48 billion for 2024.

Negative

• Adjusted operating margin decreased in the Renewables segment due to warranty costs.
• A $3.5 million charge was incurred in the Agtech segment to write down a receivable associated with a distressed cannabis customer.
• Negative operating margin in the Agtech segment before the charge.
• Revenue was essentially flat for the full year 2023.

Insights

Financial Analyst

Gibraltar Industries' significant increase in GAAP and adjusted earnings per share (EPS) in 2023, despite flat net sales, indicates a robust operational efficiency and cost management strategy. The fact that the company has outperformed its initial financial projections for the year is a positive sign for investors, reflecting management's ability to navigate market conditions effectively. The reported increase in operating cash flow to $218 million demonstrates strong cash generation capabilities, which is critical for sustaining growth and financing future investments without incurring excessive debt.

Looking ahead, the projected revenue growth of 4-9% and EPS growth of 12-20% for 2024 suggests that Gibraltar Industries is expecting continued improvement in its end markets. The emphasis on the Renewables and Agtech segments aligns with broader market trends towards sustainable technologies and agriculture innovation. However, investors should be mindful of the market's volatility, particularly in sectors like renewables, which are subject to policy changes and economic cycles.

Market Research Analyst

The reported backlog increase of more than 10% is a strong indicator of future revenue potential, as it represents orders that have been placed but not yet fulfilled. This is particularly relevant in the renewables sector, where Gibraltar Industries has seen a backlog increase of 20.9%. This growth can be attributed to the anticipation of final tax credit guidance from the Inflation Reduction Act, which could stimulate further investment in renewable energy projects. However, the segment's operating margin decline due to warranty costs raises concerns about project execution risks and the potential for future unanticipated expenses.

The Residential segment's performance, with a 4.3% increase in net sales and a significant operating margin expansion, suggests resilience in the face of commodity price deflation. The successful implementation of 80/20 initiatives, which aim to streamline operations by focusing on the most profitable products and customers, appears to be yielding positive results. Continuous improvement in this segment could be a reliable source of revenue for Gibraltar Industries, especially considering the ongoing demand in the residential market.

Industrial Sector Analyst

The Agtech segment's adjusted net sales growth of 12.8% underscores the potential in the agricultural technology market. However, the $3.5 million charge to write down a receivable from a distressed cannabis customer highlights the risks involved in the Agtech sector, particularly in emerging industries like cannabis. The ability to navigate customer credit risks and maintain diversified revenue streams will be crucial for Gibraltar's long-term success in this segment.

Infrastructure's robust performance, with a 12.1% increase in net sales and a substantial operating margin improvement, reflects strong end market demand and effective market participation strategies. The company's focus on productivity and improving product and customer mix could serve as a model for operational excellence within the industry. The forward-looking statements regarding the continuation of strong performances across all segments indicate confidence in the company's strategic direction, yet it is important to monitor how external factors such as economic conditions and competitive dynamics may impact these expectations.

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, 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-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.

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 cost		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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240221275453/en/

LHA Investor Relations

Jody Burfening/Carolyn Capaccio

(212) 838-3777

rock@lhai.com

Source: Gibraltar Industries, Inc.

FAQ

What was the percentage increase in adjusted EPS for Q4 2023?

Adjusted EPS increased by 18.1% in Q4 2023.

What was the operating margin for the Residential segment in Q4 2023?

The operating margin for the Residential segment was 17.5% in Q4 2023.

What is the expected range for consolidated revenue in 2024?

Consolidated revenue is expected to range between $1.43 billion and $1.48 billion for 2024.

Why did the Agtech segment incur a $3.5 million charge in Q4 2023?

The charge was to write down a receivable associated with a distressed cannabis customer.

What caused the increase in net sales in Q4 2023?

Net sales increased due to backlog converting to sales and robust new bookings.