Gibraltar Announces Second Quarter 2023 Financial Results
EPS: GAAP up
Backlog at
Continued Strong Cash Flow Generation
Increasing 2023 EPS Outlook; Reaffirming 2023 Net Sales Outlook
“We executed well in the quarter, building on our momentum from the beginning of the year. Our end market fundamentals remain solid with our order backlog up
Second Quarter 2023 Consolidated Results
|
Three Months Ended June 30, |
||||||
$Millions, except EPS |
GAAP |
|
Adjusted |
||||
|
2023 |
2022 |
Change |
|
2023 |
2022 |
Change |
Net Sales |
|
|
(0.5)% |
|
|
|
|
Net Income |
|
|
|
|
|
|
|
Diluted EPS |
|
|
|
|
|
|
|
Net sales were flat, driven by the acquisition of Quality Aluminum Products, completed in the third quarter of 2022, along with organic growth in the Residential and Infrastructure segments. Offsetting growth were market price adjustments in the Residential segment, continued channel inventory right-sizing, and project delays in the Renewables and Agtech segments related to solar module availability, project permitting, and project rescoping.
GAAP earnings increased to
Adjusted measures exclude charges for restructuring initiatives, acquisition-related items, senior leadership transition costs and the results of the processing business, as further described in the appended reconciliation of adjusted financial measures.
Second Quarter Segment Results
Renewables
|
Three Months Ended June 30, |
||||||
$Millions |
GAAP |
|
Adjusted |
||||
|
2023 |
2022 |
Change |
|
2023 |
2022 |
Change |
Net Sales |
|
|
(23.6)% |
|
|
|
(23.6)% |
Operating Income |
|
|
(13.2)% |
|
|
|
|
Operating Margin |
|
|
90 bps |
|
|
|
470 bps |
Net sales were down
Adjusted operating margin increased 470 basis points versus prior year as the team continued to execute well across the business. Management expects to deliver improved sales and margin performance in the second half of the year as module supply improves further.
Residential
|
Three Months Ended June 30, |
||||||
$Millions |
GAAP |
|
Adjusted |
||||
|
2023 |
2022 |
Change |
|
2023 |
2022 |
Change |
Net Sales |
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
Operating Margin |
|
|
150 bps |
|
|
|
80 bps |
Net sales increased
Adjusted operating income improved
Agtech
|
Three Months Ended June 30, |
||||||
$Millions |
GAAP |
|
Adjusted |
||||
|
2023 |
2022 |
Change |
|
2023 |
2022 |
Change |
Net Sales |
|
|
(19.9)% |
|
|
|
(16.1)% |
Operating Income |
|
|
NMF |
|
|
|
|
Operating Margin |
(3.2)% |
|
(670) bps |
|
|
|
280 bps |
Net sales on an adjusted basis were down
Adjusted operating margin improved 280 basis points driven by 80/20 initiatives, supply chain optimization initiatives, and improvement in project management systems. Margin performance is expected to be solid for the rest of the year.
During the quarter,
Infrastructure
|
Three Months Ended June 30, |
||||||
$Millions |
GAAP |
|
Adjusted |
||||
|
2023 |
2022 |
Change |
|
2023 |
2022 |
Change |
Net Sales |
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
Operating Margin |
|
|
1070 bps |
|
|
|
1070 bps |
Net sales and order backlog increased
Adjusted operating income doubled and adjusted operating margins improved 1,070 basis points driven by strong execution, 80/20 productivity, supply chain efficiency, and product line mix.
Business Outlook
Mr. Bosway concluded, “We delivered solid results in the first half, and we expect this momentum to continue as we enter the second half. As a result, we are raising our EPS guide and are reaffirming our 2023 net sales outlook, and expect to deliver growth, improved profitability, and better cash flow versus last year.”
Second Quarter 2023 Conference Call Details
About
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, increases 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 our IT systems, the impact of regulation (including the Department of Commerce’s solar panel anti-circumvention investigation 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,
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 June 30, |
|
Six Months Ended June 30, |
||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
Net sales |
$ |
364,914 |
|
|
$ |
366,949 |
|
$ |
658,181 |
|
|
$ |
684,814 |
Cost of sales |
|
268,175 |
|
|
|
276,678 |
|
|
484,513 |
|
|
|
529,699 |
Gross profit |
|
96,739 |
|
|
|
90,271 |
|
|
173,668 |
|
|
|
155,115 |
Selling, general, and administrative expense |
|
53,662 |
|
|
|
50,132 |
|
|
101,221 |
|
|
|
93,781 |
Income from operations |
|
43,077 |
|
|
|
40,139 |
|
|
72,447 |
|
|
|
61,334 |
Interest expense |
|
1,308 |
|
|
|
656 |
|
|
2,799 |
|
|
|
1,141 |
Other (income) expense |
|
(509 |
) |
|
|
281 |
|
|
(906 |
) |
|
|
434 |
Income before taxes |
|
42,278 |
|
|
|
39,202 |
|
|
70,554 |
|
|
|
59,759 |
Provision for income taxes |
|
11,555 |
|
|
|
9,895 |
|
|
18,732 |
|
|
|
14,996 |
Net income |
$ |
30,723 |
|
|
$ |
29,307 |
|
$ |
51,822 |
|
|
$ |
44,763 |
|
|
|
|
|
|
|
|
||||||
Net earnings per share: |
|
|
|
|
|
|
|
||||||
Basic |
$ |
1.01 |
|
|
$ |
0.90 |
|
$ |
1.69 |
|
|
$ |
1.37 |
Diluted |
$ |
1.00 |
|
|
$ |
0.90 |
|
$ |
1.68 |
|
|
$ |
1.36 |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||
Basic |
|
30,554 |
|
|
|
32,585 |
|
|
30,725 |
|
|
|
32,748 |
Diluted |
|
30,684 |
|
|
|
32,660 |
|
|
30,846 |
|
|
|
32,843 |
GIBRALTAR INDUSTRIES, INC. |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(in thousands, except per share data) |
|||||||
|
June 30,
|
|
December 31,
|
||||
|
(unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
18,621 |
|
|
$ |
17,608 |
|
Accounts receivable, net of allowance of |
|
266,487 |
|
|
|
217,156 |
|
Inventories, net |
|
159,542 |
|
|
|
170,360 |
|
Prepaid expenses and other current assets |
|
18,320 |
|
|
|
18,813 |
|
Total current assets |
|
462,970 |
|
|
|
423,937 |
|
Property, plant, and equipment, net |
|
106,130 |
|
|
|
109,584 |
|
Operating lease assets |
|
25,041 |
|
|
|
26,502 |
|
Goodwill |
|
511,961 |
|
|
|
512,363 |
|
Acquired intangibles |
|
131,925 |
|
|
|
137,526 |
|
Other assets |
|
550 |
|
|
|
701 |
|
|
$ |
1,238,577 |
|
|
$ |
1,210,613 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
155,464 |
|
|
$ |
106,582 |
|
Accrued expenses |
|
82,746 |
|
|
|
73,721 |
|
Billings in excess of cost |
|
54,838 |
|
|
|
35,017 |
|
Total current liabilities |
|
293,048 |
|
|
|
215,320 |
|
Long-term debt |
|
9,790 |
|
|
|
88,762 |
|
Deferred income taxes |
|
47,024 |
|
|
|
47,088 |
|
Non-current operating lease liabilities |
|
18,502 |
|
|
|
19,041 |
|
Other non-current liabilities |
|
19,903 |
|
|
|
18,303 |
|
Stockholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
342 |
|
|
|
340 |
|
Additional paid-in capital |
|
327,927 |
|
|
|
322,873 |
|
Retained earnings |
|
679,800 |
|
|
|
627,978 |
|
Accumulated other comprehensive loss |
|
(4,115 |
) |
|
|
(3,432 |
) |
Cost of 3,770 and 3,199 common shares held in treasury in 2023 and 2022 |
|
(153,644 |
) |
|
|
(125,660 |
) |
Total stockholders’ equity |
|
850,310 |
|
|
|
822,099 |
|
|
$ |
1,238,577 |
|
|
$ |
1,210,613 |
|
GIBRALTAR INDUSTRIES, INC. |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
|
Six Months Ended June 30, |
||||||
|
|
2023 |
|
|
|
2022 |
|
Cash Flows from Operating Activities |
|
|
|
||||
Net income |
$ |
51,822 |
|
|
$ |
44,763 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
13,665 |
|
|
|
12,677 |
|
Stock compensation expense |
|
5,056 |
|
|
|
4,125 |
|
Exit activity (recoveries) costs, non-cash |
|
(23 |
) |
|
|
1,198 |
|
Provision for deferred income taxes |
|
179 |
|
|
|
29 |
|
Other, net |
|
2,680 |
|
|
|
2,666 |
|
Changes in operating assets and liabilities, excluding the effects of acquisitions: |
|
|
|
||||
Accounts receivable |
|
(54,979 |
) |
|
|
(40,473 |
) |
Inventories |
|
12,130 |
|
|
|
(33,616 |
) |
Other current assets and other assets |
|
4,069 |
|
|
|
(1,612 |
) |
Accounts payable |
|
48,327 |
|
|
|
(10,501 |
) |
Accrued expenses and other non-current liabilities |
|
31,168 |
|
|
|
21,288 |
|
Net cash provided by operating activities |
|
114,094 |
|
|
|
544 |
|
Cash Flows from Investing Activities |
|
|
|
||||
Acquisitions, net of cash acquired |
|
554 |
|
|
|
— |
|
Purchases of property, plant, and equipment, net |
|
(5,284 |
) |
|
|
(11,202 |
) |
Net cash used in investing activities |
|
(4,730 |
) |
|
|
(11,202 |
) |
Cash Flows from Financing Activities |
|
|
|
||||
Proceeds from long-term debt |
|
40,800 |
|
|
|
120,500 |
|
Long-term debt payments |
|
(120,000 |
) |
|
|
(51,000 |
) |
Purchase of common stock at market prices |
|
(28,770 |
) |
|
|
(53,468 |
) |
Net cash (used in) provided by financing activities |
|
(107,970 |
) |
|
|
16,032 |
|
Effect of exchange rate changes on cash |
|
(381 |
) |
|
|
(1,074 |
) |
Net increase in cash and cash equivalents |
|
1,013 |
|
|
|
4,300 |
|
Cash and cash equivalents at beginning of year |
|
17,608 |
|
|
|
12,849 |
|
Cash and cash equivalents at end of period |
$ |
18,621 |
|
|
$ |
17,149 |
|
GIBRALTAR INDUSTRIES, INC. |
||||||||||||||||||||
Reconciliation of Adjusted Financial Measures |
||||||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
Three Months Ended June 30,2023 |
||||||||||||||||||
|
|
As Reported
|
|
Restructuring
|
|
Acquisition
|
|
Portfolio
|
|
Adjusted
|
||||||||||
Net Sales |
|
|
|
|
|
|
|
|
|
|
||||||||||
Renewables |
|
$ |
77,459 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
77,459 |
|
Residential |
|
|
228,234 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
228,234 |
|
Agtech |
|
|
35,028 |
|
|
|
— |
|
|
|
— |
|
|
|
(765 |
) |
|
|
34,263 |
|
Infrastructure |
|
|
24,193 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
24,193 |
|
Consolidated sales |
|
|
364,914 |
|
|
|
— |
|
|
|
— |
|
|
|
(765 |
) |
|
|
364,149 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from operations |
|
|
|
|
|
|
|
|
|
|
||||||||||
Renewables |
|
|
5,908 |
|
|
|
2,997 |
|
|
|
148 |
|
|
|
— |
|
|
|
9,053 |
|
Residential |
|
|
43,959 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
43,959 |
|
Agtech |
|
|
(1,117 |
) |
|
|
156 |
|
|
|
11 |
|
|
|
4,222 |
|
|
|
3,272 |
|
Infrastructure |
|
|
5,828 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,828 |
|
Segments Income |
|
|
54,578 |
|
|
|
3,153 |
|
|
|
159 |
|
|
|
4,222 |
|
|
|
62,112 |
|
Unallocated corporate expense |
|
|
(11,501 |
) |
|
|
— |
|
|
|
42 |
|
|
|
24 |
|
|
|
(11,435 |
) |
Consolidated income from operations |
|
|
43,077 |
|
|
|
3,153 |
|
|
|
201 |
|
|
|
4,246 |
|
|
|
50,677 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense |
|
|
1,308 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,308 |
|
Other (income) expense |
|
|
(509 |
) |
|
|
— |
|
|
|
— |
|
|
|
559 |
|
|
|
50 |
|
Income before income taxes |
|
|
42,278 |
|
|
|
3,153 |
|
|
|
201 |
|
|
|
3,687 |
|
|
|
49,319 |
|
Provision for income taxes |
|
|
11,555 |
|
|
|
857 |
|
|
|
53 |
|
|
|
569 |
|
|
|
13,034 |
|
Net income |
|
$ |
30,723 |
|
|
$ |
2,296 |
|
|
$ |
148 |
|
|
$ |
3,118 |
|
|
$ |
36,285 |
|
Net income per share - diluted |
|
$ |
1.00 |
|
|
$ |
0.08 |
|
|
$ |
— |
|
|
$ |
0.10 |
|
|
$ |
1.18 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating margin |
|
|
|
|
|
|
|
|
|
|
||||||||||
Renewables |
|
|
7.6 |
% |
|
|
3.9 |
% |
|
|
0.2 |
% |
|
|
— |
% |
|
|
11.7 |
% |
Residential |
|
|
19.3 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
19.3 |
% |
Agtech |
|
|
(3.2 |
)% |
|
|
0.4 |
% |
|
|
— |
% |
|
|
12.1 |
% |
|
|
9.5 |
% |
Infrastructure |
|
|
24.1 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
24.1 |
% |
Segments Margin |
|
|
15.0 |
% |
|
|
0.9 |
% |
|
|
— |
% |
|
|
1.2 |
% |
|
|
17.1 |
% |
Consolidated |
|
|
11.8 |
% |
|
|
0.9 |
% |
|
|
0.1 |
% |
|
|
1.2 |
% |
|
|
13.9 |
% |
GIBRALTAR INDUSTRIES, INC. |
||||||||||||||||||||
Reconciliation of Adjusted Financial Measures |
||||||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
Three Months Ended June 30, 2022 |
||||||||||||||||||
|
|
As Reported
|
|
Restructuring
|
|
Acquisition
|
|
Portfolio
|
|
Adjusted
|
||||||||||
Net Sales |
|
|
|
|
|
|
|
|
|
|
||||||||||
Renewables |
|
$ |
101,549 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
101,549 |
|
Residential |
|
|
200,245 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
200,245 |
|
Agtech |
|
|
43,680 |
|
|
|
— |
|
|
|
— |
|
|
|
(2,748 |
) |
|
|
40,932 |
|
Infrastructure |
|
|
21,475 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21,475 |
|
Consolidated sales |
|
|
366,949 |
|
|
|
— |
|
|
|
— |
|
|
|
(2,748 |
) |
|
|
364,201 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from operations |
|
|
|
|
|
|
|
|
|
|
||||||||||
Renewables |
|
|
6,829 |
|
|
|
68 |
|
|
|
215 |
|
|
|
— |
|
|
|
7,112 |
|
Residential |
|
|
35,664 |
|
|
|
1,295 |
|
|
|
— |
|
|
|
— |
|
|
|
36,959 |
|
Agtech |
|
|
1,542 |
|
|
|
97 |
|
|
|
— |
|
|
|
1,109 |
|
|
|
2,748 |
|
Infrastructure |
|
|
2,887 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,887 |
|
Segments Income |
|
|
46,922 |
|
|
|
1,460 |
|
|
|
215 |
|
|
|
1,109 |
|
|
|
49,706 |
|
Unallocated corporate expense |
|
|
(6,783 |
) |
|
|
174 |
|
|
|
— |
|
|
|
— |
|
|
|
(6,609 |
) |
Consolidated income from operations |
|
|
40,139 |
|
|
|
1,634 |
|
|
|
215 |
|
|
|
1,109 |
|
|
|
43,097 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense |
|
|
656 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
656 |
|
Other expense |
|
|
281 |
|
|
|
— |
|
|
|
— |
|
|
|
100 |
|
|
|
381 |
|
Income before income taxes |
|
|
39,202 |
|
|
|
1,634 |
|
|
|
215 |
|
|
|
1,009 |
|
|
|
42,060 |
|
Provision for income taxes |
|
|
9,895 |
|
|
|
398 |
|
|
|
52 |
|
|
|
245 |
|
|
|
10,590 |
|
Net income |
|
$ |
29,307 |
|
|
$ |
1,236 |
|
|
$ |
163 |
|
|
$ |
764 |
|
|
$ |
31,470 |
|
Net income per share - diluted |
|
$ |
0.90 |
|
|
$ |
0.03 |
|
|
$ |
0.01 |
|
|
$ |
0.02 |
|
|
$ |
0.96 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating margin |
|
|
|
|
|
|
|
|
|
|
||||||||||
Renewables |
|
|
6.7 |
% |
|
|
0.1 |
% |
|
|
0.2 |
% |
|
|
— |
% |
|
|
7.0 |
% |
Residential |
|
|
17.8 |
% |
|
|
0.6 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
18.5 |
% |
Agtech |
|
|
3.5 |
% |
|
|
0.2 |
% |
|
|
— |
% |
|
|
2.5 |
% |
|
|
6.7 |
% |
Infrastructure |
|
|
13.4 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
13.4 |
% |
Segments Margin |
|
|
12.8 |
% |
|
|
0.4 |
% |
|
|
0.1 |
% |
|
|
0.3 |
% |
|
|
13.6 |
% |
Consolidated |
|
|
10.9 |
% |
|
|
0.4 |
% |
|
|
0.1 |
% |
|
|
0.3 |
% |
|
|
11.8 |
% |
GIBRALTAR INDUSTRIES, INC. |
||||||||||||||||||||
Reconciliation of Adjusted Financial Measures |
||||||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
Six Months Ended June 30, 2023 |
||||||||||||||||||
|
|
As Reported In
|
|
Restructuring
|
|
Acquisition
|
|
Portfolio
|
|
Adjusted
|
||||||||||
Net Sales |
|
|
|
|
|
|
|
|
|
|
||||||||||
Renewables |
|
$ |
136,664 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
136,664 |
|
Residential |
|
|
407,729 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
407,729 |
|
Agtech |
|
|
70,880 |
|
|
|
— |
|
|
|
— |
|
|
|
(3,279 |
) |
|
|
67,601 |
|
Infrastructure |
|
|
42,908 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
42,908 |
|
Consolidated sales |
|
|
658,181 |
|
|
|
— |
|
|
|
— |
|
|
|
(3,279 |
) |
|
|
654,902 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from operations |
|
|
|
|
|
|
|
|
|
|
||||||||||
Renewables |
|
|
8,177 |
|
|
|
2,934 |
|
|
|
180 |
|
|
|
— |
|
|
|
11,291 |
|
Residential |
|
|
73,468 |
|
|
|
114 |
|
|
|
— |
|
|
|
— |
|
|
|
73,582 |
|
Agtech |
|
|
1,213 |
|
|
|
717 |
|
|
|
37 |
|
|
|
4,857 |
|
|
|
6,824 |
|
Infrastructure |
|
|
8,542 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,542 |
|
Segments Income |
|
|
91,400 |
|
|
|
3,765 |
|
|
|
217 |
|
|
|
4,857 |
|
|
|
100,239 |
|
Unallocated corporate expense |
|
|
(18,953 |
) |
|
|
(19 |
) |
|
|
63 |
|
|
|
24 |
|
|
|
(18,885 |
) |
Consolidated income from operations |
|
|
72,447 |
|
|
|
3,746 |
|
|
|
280 |
|
|
|
4,881 |
|
|
|
81,354 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense |
|
|
2,799 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,799 |
|
Other (income) expense |
|
|
(906 |
) |
|
|
— |
|
|
|
— |
|
|
|
1,027 |
|
|
|
121 |
|
Income before income taxes |
|
|
70,554 |
|
|
|
3,746 |
|
|
|
280 |
|
|
|
3,854 |
|
|
|
78,434 |
|
Provision for income taxes |
|
|
18,732 |
|
|
|
997 |
|
|
|
73 |
|
|
|
590 |
|
|
|
20,392 |
|
Net income |
|
$ |
51,822 |
|
|
$ |
2,749 |
|
|
$ |
207 |
|
|
$ |
3,264 |
|
|
$ |
58,042 |
|
Net income per share - diluted |
|
$ |
1.68 |
|
|
$ |
0.09 |
|
|
$ |
— |
|
|
$ |
0.11 |
|
|
$ |
1.88 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating margin |
|
|
|
|
|
|
|
|
|
|
||||||||||
Renewables |
|
|
6.0 |
% |
|
|
2.1 |
% |
|
|
0.1 |
% |
|
|
— |
% |
|
|
8.3 |
% |
Residential |
|
|
18.0 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
18.0 |
% |
Agtech |
|
|
1.7 |
% |
|
|
1.0 |
% |
|
|
0.1 |
% |
|
|
6.9 |
% |
|
|
10.1 |
% |
Infrastructure |
|
|
19.9 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
19.9 |
% |
Segments Margin |
|
|
13.9 |
% |
|
|
0.6 |
% |
|
|
— |
% |
|
|
0.7 |
% |
|
|
15.3 |
% |
Consolidated |
|
|
11.0 |
% |
|
|
0.6 |
% |
|
|
— |
% |
|
|
0.7 |
% |
|
|
12.4 |
% |
GIBRALTAR INDUSTRIES, INC. |
||||||||||||||||||||
Reconciliation of Adjusted Financial Measures |
||||||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
Six Months Ended June 30, 2022 |
||||||||||||||||||
|
|
As Reported
|
|
Restructuring
|
|
Acquisition
|
|
Portfolio
|
|
Adjusted
|
||||||||||
Net Sales |
|
|
|
|
|
|
|
|
|
|
||||||||||
Renewables |
|
$ |
180,332 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
180,332 |
|
Residential |
|
|
379,730 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
379,730 |
|
Agtech |
|
|
86,108 |
|
|
|
— |
|
|
|
— |
|
|
|
(4,571 |
) |
|
|
81,537 |
|
Infrastructure |
|
|
38,644 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
38,644 |
|
Consolidated sales |
|
|
684,814 |
|
|
|
— |
|
|
|
— |
|
|
|
(4,571 |
) |
|
|
680,243 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from operations |
|
|
|
|
|
|
|
|
|
|
||||||||||
Renewables |
|
|
(155 |
) |
|
|
2,385 |
|
|
|
605 |
|
|
|
— |
|
|
|
2,835 |
|
Residential |
|
|
69,099 |
|
|
|
1,582 |
|
|
|
— |
|
|
|
— |
|
|
|
70,681 |
|
Agtech |
|
|
1,573 |
|
|
|
88 |
|
|
|
— |
|
|
|
3,634 |
|
|
|
5,295 |
|
Infrastructure |
|
|
4,068 |
|
|
|
(63 |
) |
|
|
— |
|
|
|
— |
|
|
|
4,005 |
|
Segments Income |
|
|
74,585 |
|
|
|
3,992 |
|
|
|
605 |
|
|
|
3,634 |
|
|
|
82,816 |
|
Unallocated corporate expense |
|
|
(13,251 |
) |
|
|
449 |
|
|
|
7 |
|
|
|
— |
|
|
|
(12,795 |
) |
Consolidated income from operations |
|
|
61,334 |
|
|
|
4,441 |
|
|
|
612 |
|
|
|
3,634 |
|
|
|
70,021 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense |
|
|
1,141 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,141 |
|
Other expense |
|
|
434 |
|
|
|
— |
|
|
|
— |
|
|
|
100 |
|
|
|
534 |
|
Income before income taxes |
|
|
59,759 |
|
|
|
4,441 |
|
|
|
612 |
|
|
|
3,534 |
|
|
|
68,346 |
|
Provision for income taxes |
|
|
14,996 |
|
|
|
1,103 |
|
|
|
152 |
|
|
|
879 |
|
|
|
17,130 |
|
Net income |
|
$ |
44,763 |
|
|
$ |
3,338 |
|
|
$ |
460 |
|
|
$ |
2,655 |
|
|
$ |
51,216 |
|
Net income per share - diluted |
|
$ |
1.36 |
|
|
$ |
0.10 |
|
|
$ |
0.02 |
|
|
$ |
0.08 |
|
|
$ |
1.56 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating margin |
|
|
|
|
|
|
|
|
|
|
||||||||||
Renewables |
|
|
(0.1 |
)% |
|
|
1.3 |
% |
|
|
0.3 |
% |
|
|
— |
% |
|
|
1.6 |
% |
Residential |
|
|
18.2 |
% |
|
|
0.4 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
18.6 |
% |
Agtech |
|
|
1.8 |
% |
|
|
0.1 |
% |
|
|
— |
% |
|
|
4.2 |
% |
|
|
6.5 |
% |
Infrastructure |
|
|
10.5 |
% |
|
|
(0.2 |
)% |
|
|
— |
% |
|
|
— |
% |
|
|
10.4 |
% |
Segments Margin |
|
|
10.9 |
% |
|
|
0.6 |
% |
|
|
0.1 |
% |
|
|
0.5 |
% |
|
|
12.2 |
% |
Consolidated |
|
|
9.0 |
% |
|
|
0.7 |
% |
|
|
0.1 |
% |
|
|
0.5 |
% |
|
|
10.3 |
% |
GIBRALTAR INDUSTRIES, INC. |
||||||||||||||||||||
Reconciliation of Adjusted Financial Measures |
||||||||||||||||||||
(in thousands) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
Three Months Ended June 30,2023 |
||||||||||||||||||
|
|
Consolidated |
|
Renewables |
|
Residential |
|
Agtech |
|
Infrastructure |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Sales |
|
$ |
364,914 |
|
|
$ |
77,459 |
|
|
$ |
228,234 |
|
|
$ |
35,028 |
|
|
$ |
24,193 |
|
Less: Processing Net Sales |
|
|
(765 |
) |
|
|
— |
|
|
|
— |
|
|
|
(765 |
) |
|
|
— |
|
Adjusted Net Sales |
|
$ |
364,149 |
|
|
$ |
77,459 |
|
|
$ |
228,234 |
|
|
$ |
34,263 |
|
|
$ |
24,193 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Income |
|
|
30,723 |
|
|
|
|
|
|
|
|
|
||||||||
Provision for Income Taxes |
|
|
11,555 |
|
|
|
|
|
|
|
|
|
||||||||
Interest Expense |
|
|
1,308 |
|
|
|
|
|
|
|
|
|
||||||||
Other Income |
|
|
(509 |
) |
|
|
|
|
|
|
|
|
||||||||
Operating Profit |
|
|
43,077 |
|
|
|
5,908 |
|
|
|
43,959 |
|
|
|
(1,117 |
) |
|
|
5,828 |
|
Adjusted Measures* |
|
|
7,600 |
|
|
|
3,145 |
|
|
|
— |
|
|
|
4,389 |
|
|
|
— |
|
Adjusted Operating Profit |
|
|
50,677 |
|
|
|
9,053 |
|
|
|
43,959 |
|
|
|
3,272 |
|
|
|
5,828 |
|
Adjusted Operating Margin |
|
|
13.9 |
% |
|
|
11.7 |
% |
|
|
19.3 |
% |
|
|
9.5 |
% |
|
|
24.1 |
% |
Adjusted Other Expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Depreciation & Amortization |
|
|
6,831 |
|
|
|
2,211 |
|
|
|
2,463 |
|
|
|
953 |
|
|
|
786 |
|
Stock Compensation Expense |
|
|
3,462 |
|
|
|
233 |
|
|
|
309 |
|
|
|
181 |
|
|
|
56 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
|
|
60,970 |
|
|
|
11,497 |
|
|
|
46,731 |
|
|
|
4,406 |
|
|
|
6,670 |
|
Adjusted EBITDA Margin |
|
|
16.7 |
% |
|
|
14.8 |
% |
|
|
20.5 |
% |
|
|
12.9 |
% |
|
|
27.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash Flow - Operating Activities |
|
|
76,049 |
|
|
|
|
|
|
|
|
|
||||||||
Purchase of PPE, Net |
|
|
(3,094 |
) |
|
|
|
|
|
|
|
|
||||||||
Free Cash Flow |
|
|
72,955 |
|
|
|
|
|
|
|
|
|
||||||||
Free Cash Flow - % of Adjusted Net Sales |
|
|
20.0 |
% |
|
|
|
|
|
|
|
|
||||||||
|
||||||||||||||||||||
*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 June 30, 2022 |
||||||||||||||||||
|
|
Consolidated |
|
Renewables |
|
Residential |
|
Agtech |
|
Infrastructure |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Sales |
|
$ |
366,949 |
|
|
$ |
101,549 |
|
|
$ |
200,245 |
|
|
$ |
43,680 |
|
|
$ |
21,475 |
|
Less: Processing Net Sales |
|
|
(2,748 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,748 |
) |
|
|
— |
|
Adjusted Net Sales |
|
$ |
364,201 |
|
|
$ |
101,549 |
|
|
$ |
200,245 |
|
|
$ |
40,932 |
|
|
$ |
21,475 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Income |
|
|
29,307 |
|
|
|
|
|
|
|
|
|
||||||||
Provision for Income Taxes |
|
|
9,895 |
|
|
|
|
|
|
|
|
|
||||||||
Interest Expense |
|
|
656 |
|
|
|
|
|
|
|
|
|
||||||||
Other Expense |
|
|
281 |
|
|
|
|
|
|
|
|
|
||||||||
Operating Profit |
|
|
40,139 |
|
|
|
6,829 |
|
|
|
35,664 |
|
|
|
1,542 |
|
|
|
2,887 |
|
Adjusted Measures* |
|
|
2,958 |
|
|
|
283 |
|
|
|
1,295 |
|
|
|
1,206 |
|
|
|
— |
|
Adjusted Operating Profit |
|
|
43,097 |
|
|
|
7,112 |
|
|
|
36,959 |
|
|
|
2,748 |
|
|
|
2,887 |
|
Adjusted Operating Margin |
|
|
11.8 |
% |
|
|
7.0 |
% |
|
|
18.5 |
% |
|
|
6.7 |
% |
|
|
13.4 |
% |
Adjusted Other Expense |
|
|
371 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Depreciation & Amortization |
|
|
6,341 |
|
|
|
2,113 |
|
|
|
2,025 |
|
|
|
1,013 |
|
|
|
792 |
|
Stock Compensation Expense |
|
|
2,773 |
|
|
|
195 |
|
|
|
241 |
|
|
|
107 |
|
|
|
41 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
|
|
51,840 |
|
|
|
9,420 |
|
|
|
39,225 |
|
|
|
3,868 |
|
|
|
3,720 |
|
Adjusted EBITDA Margin |
|
|
14.2 |
% |
|
|
9.3 |
% |
|
|
19.6 |
% |
|
|
9.4 |
% |
|
|
17.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash Flow - Operating Activities |
|
|
8,298 |
|
|
|
|
|
|
|
|
|
||||||||
Purchase of PPE, Net |
|
|
(6,800 |
) |
|
|
|
|
|
|
|
|
||||||||
Free Cash Flow |
|
|
1,498 |
|
|
|
|
|
|
|
|
|
||||||||
Free Cash Flow - % of Adjusted Net Sales |
|
|
0.4 |
% |
|
|
|
|
|
|
|
|
||||||||
|
||||||||||||||||||||
*Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures |
GIBRALTAR INDUSTRIES, INC. |
||||||||||||||||||||
Reconciliation of Adjusted Financial Measures |
||||||||||||||||||||
(in thousands) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
Six Months Ended June 30, 2023 |
||||||||||||||||||
|
|
Consolidated |
|
Renewables |
|
Residential |
|
Agtech |
|
Infrastructure |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Sales |
|
$ |
658,181 |
|
|
$ |
136,664 |
|
|
$ |
407,729 |
|
|
$ |
70,880 |
|
|
$ |
42,908 |
|
Less: Processing Net Sales |
|
|
(3,279 |
) |
|
|
— |
|
|
|
— |
|
|
|
(3,279 |
) |
|
|
— |
|
Adjusted Net Sales |
|
$ |
654,902 |
|
|
$ |
136,664 |
|
|
$ |
407,729 |
|
|
$ |
67,601 |
|
|
$ |
42,908 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Income |
|
|
51,822 |
|
|
|
|
|
|
|
|
|
||||||||
Provision for Income Taxes |
|
|
18,732 |
|
|
|
|
|
|
|
|
|
||||||||
Interest Expense |
|
|
2,799 |
|
|
|
|
|
|
|
|
|
||||||||
Other Income |
|
|
(906 |
) |
|
|
|
|
|
|
|
|
||||||||
Operating Profit |
|
|
72,447 |
|
|
|
8,177 |
|
|
|
73,468 |
|
|
|
1,213 |
|
|
|
8,542 |
|
Adjusted Measures* |
|
|
8,907 |
|
|
|
3,114 |
|
|
|
114 |
|
|
|
5,611 |
|
|
|
— |
|
Adjusted Operating Profit |
|
|
81,354 |
|
|
|
11,291 |
|
|
|
73,582 |
|
|
|
6,824 |
|
|
|
8,542 |
|
Adjusted Operating Margin |
|
|
12.4 |
% |
|
|
8.3 |
% |
|
|
18.0 |
% |
|
|
10.1 |
% |
|
|
19.9 |
% |
Adjusted Other Expense |
|
|
77 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Depreciation & Amortization |
|
|
13,665 |
|
|
|
4,390 |
|
|
|
4,956 |
|
|
|
1,907 |
|
|
|
1,566 |
|
Stock Compensation Expense |
|
|
5,056 |
|
|
|
447 |
|
|
|
607 |
|
|
|
334 |
|
|
|
103 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
|
|
99,998 |
|
|
|
16,128 |
|
|
|
79,145 |
|
|
|
9,065 |
|
|
|
10,211 |
|
Adjusted EBITDA Margin |
|
|
15.3 |
% |
|
|
11.8 |
% |
|
|
19.4 |
% |
|
|
13.4 |
% |
|
|
23.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash Flow - Operating Activities |
|
|
114,094 |
|
|
|
|
|
|
|
|
|
||||||||
Purchase of PPE, Net |
|
|
(5,284 |
) |
|
|
|
|
|
|
|
|
||||||||
Free Cash Flow |
|
|
108,810 |
|
|
|
|
|
|
|
|
|
||||||||
Free Cash Flow - % of Adjusted Net Sales |
|
|
16.6 |
% |
|
|
|
|
|
|
|
|
||||||||
|
||||||||||||||||||||
*Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures |
GIBRALTAR INDUSTRIES, INC. |
||||||||||||||||||||
Reconciliation of Adjusted Financial Measures |
||||||||||||||||||||
(in thousands) |
||||||||||||||||||||
(unaudited) |
||||||||||||||||||||
|
|
Six Months Ended June 30, 2022 |
||||||||||||||||||
|
|
Consolidated |
|
Renewables |
|
Residential |
|
Agtech |
|
Infrastructure |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Sales |
|
$ |
684,814 |
|
|
$ |
180,332 |
|
|
$ |
379,730 |
|
|
$ |
86,108 |
|
|
$ |
38,644 |
|
Less: Processing Net Sales |
|
|
(4,571 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4,571 |
) |
|
|
— |
|
Adjusted Net Sales |
|
$ |
680,243 |
|
|
$ |
180,332 |
|
|
$ |
379,730 |
|
|
$ |
81,537 |
|
|
$ |
38,644 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Income |
|
|
44,763 |
|
|
|
|
|
|
|
|
|
||||||||
Provision for Income Taxes |
|
|
14,996 |
|
|
|
|
|
|
|
|
|
||||||||
Interest Expense |
|
|
1,141 |
|
|
|
|
|
|
|
|
|
||||||||
Other Expense |
|
|
434 |
|
|
|
|
|
|
|
|
|
||||||||
Operating Profit |
|
|
61,334 |
|
|
|
(155 |
) |
|
|
69,099 |
|
|
|
1,573 |
|
|
|
4,068 |
|
Adjusted Measures* |
|
|
8,687 |
|
|
|
2,990 |
|
|
|
1,582 |
|
|
|
3,722 |
|
|
|
(63 |
) |
Adjusted Operating Profit |
|
|
70,021 |
|
|
|
2,835 |
|
|
|
70,681 |
|
|
|
5,295 |
|
|
|
4,005 |
|
Adjusted Operating Margin |
|
|
10.3 |
% |
|
|
1.6 |
% |
|
|
18.6 |
% |
|
|
6.5 |
% |
|
|
10.4 |
% |
Adjusted Other Expense |
|
|
524 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Depreciation & Amortization |
|
|
12,677 |
|
|
|
4,256 |
|
|
|
4,078 |
|
|
|
2,332 |
|
|
|
1,575 |
|
Less: Processing Business Depreciation & Amortization |
|
|
(332 |
) |
|
|
— |
|
|
|
— |
|
|
|
(332 |
) |
|
|
— |
|
Adjusted Depreciation & Amortization |
|
|
12,345 |
|
|
|
4,256 |
|
|
|
4,078 |
|
|
|
2,000 |
|
|
|
1,575 |
|
Stock Compensation Expense |
|
|
4,125 |
|
|
|
448 |
|
|
|
432 |
|
|
|
177 |
|
|
|
74 |
|
Less: SLT Related Stock Compensation Recovery |
|
|
155 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted Stock Compensation Expense |
|
|
4,280 |
|
|
|
448 |
|
|
|
432 |
|
|
|
177 |
|
|
|
74 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
|
|
86,122 |
|
|
|
7,539 |
|
|
|
75,191 |
|
|
|
7,472 |
|
|
|
5,654 |
|
Adjusted EBITDA Margin |
|
|
12.7 |
% |
|
|
4.2 |
% |
|
|
19.8 |
% |
|
|
9.2 |
% |
|
|
14.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash Flow - Operating Activities |
|
|
544 |
|
|
|
|
|
|
|
|
|
||||||||
Purchase of PPE, Net |
|
|
(11,202 |
) |
|
|
|
|
|
|
|
|
||||||||
Free Cash Flow |
|
|
(10,658 |
) |
|
|
|
|
|
|
|
|
||||||||
Free Cash Flow - % of Adjusted Net Sales |
|
|
(1.6 |
)% |
|
|
|
|
|
|
|
|
||||||||
|
||||||||||||||||||||
*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/20230802488656/en/
LHA Investor Relations
Jody Burfening/Carolyn Capaccio
(212) 838-3777
rock@lhai.com
Source: Gibraltar Industries, Inc.