Gibraltar Announces Third Quarter 2023 Financial Results

Rhea-AI Summary

Gibraltar Industries, Inc. reports Q3 2023 financial results. GAAP EPS increased by 19% and adjusted EPS increased by 23% on flat net sales. Strong cash generation and working capital management. Backlog up 5%. End market demand remains strong. Raising 2023 EPS guidance and narrowing net sales outlook.

Positive

• GAAP EPS increased by 19% and adjusted EPS increased by 23% on flat net sales.
• Strong cash generation and working capital management.
• Backlog up 5%.
• End market demand remains strong.
• Raising 2023 EPS guidance.
• Narrowing net sales outlook.

Negative

• None.

EPS: GAAP up 19%, Adjusted up 23% on Flat Net Sales

Strong Cash Generation on Higher Margins, Working Capital Management

Backlog up 5%, End Market Demand Remains Strong

Raising 2023 EPS; Narrowing 2023 Net Sales Outlook

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 September 30, 2023.

“Our focus in 2023 has been to drive quality of earnings through profitability expansion and cash flow improvement, and this has paid off. In the third quarter, on an adjusted basis, operating income increased 19%, EPS increased over 23%, and we generated 23% free cash flow on flat net sales. Our results year to date allow us to increase our earnings and free cash flow guidance and narrow our revenue guide. With order backlog up over 5% versus last year, our fundamentals are solid, and we are positioned for a strong end to the year,” stated Chairman and CEO Bill Bosway.

Third Quarter 2023 Consolidated Results

	Three Months Ended September 30,
$Millions, except EPS	GAAP				Adjusted
	2023	2022	Change		2023	2022	Change
Net Sales	$390.7	$391.3	(0.2)%		$390.0	$389.0	0.3%
Net Income	$39.3	$34.3	14.6%		$42.5	$35.7	19.0%
Diluted EPS	$1.28	$1.08	18.5%		$1.38	$1.12	23.2%

Net sales were flat, driven by the timing of active projects shifting from the third quarter in project-based businesses, and price management initiatives in the Residential business. These headwinds were positively offset by revenue from recent acquisitions and market participation gains across the business.

GAAP earnings increased to $39.3 million, or $1.28 per share. Adjusted net income increased 19.0% to $42.5 million, or $1.38 per share, and adjusted EPS increased 23.2% driven by solid execution. Free cash flow to net sales of 23.0% compared to 8.6% in the prior year was driven by improved margin performance and working capital management.

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.

Third Quarter Segment Results

Renewables

	Three Months Ended September 30,
$Millions	GAAP				Adjusted
	2023	2022	Change		2023	2022	Change
Net Sales	$106.4	$111.1	(4.2)%		$106.4	$111.1	(4.2)%
Operating Income	$12.9	$14.2	(9.2)%		$17.7	$14.3	23.8%
Operating Margin	12.1%	12.8%	(70) bps		16.7%	12.9%	380 bps

Net sales were down 4.2% as module supply, local permitting delays, and further delay of the final Inflation Reduction Act tax credit guidelines impacted customer start dates of contracted and active projects in the quarter. New order bookings remained robust with order backlog up 13.3% versus prior year.

Adjusted operating margin increased 380 basis points versus the prior year as the team continued to execute well across the business. Assuming no change in industry dynamics, management expects relatively flat net sales in the fourth quarter, with net sales in the second half accelerating from the first half.

Residential

	Three Months Ended September 30,
$Millions	GAAP				Adjusted
	2023	2022	Change		2023	2022	Change
Net Sales	$227.7	$215.6	5.6%		$227.7	$215.6	5.6%
Operating Income	$42.2	$35.8	17.9%		$42.8	$36.3	17.9%
Operating Margin	18.5%	16.6%	190 bps		18.8%	16.8%	200 bps

Net sales increased 5.6% with recent acquisitions adding 8.8%. Organic sales decreased 3.2% driven by price adjustments in response to the downward movement in commodity prices, and 80/20 initiatives targeting less attractive product lines. The company continues to grow participation with new and existing customers in its core products, and through expansion into new regions.

Adjusted operating income improved 17.9% with increased volume, improved alignment of price/cost, implementation of additional 80/20 initiatives, and favorable product line mix. Adjusted operating margin expanded 200 basis points and management expects continued strong performance through year-end.

Agtech

	Three Months Ended September 30,
$Millions	GAAP				Adjusted
	2023	2022	Change		2023	2022	Change
Net Sales	$31.7	$44.2	(28.3)%		$30.9	$41.9	(26.3)%
Operating Income	$2.1	$3.8	(44.7)%		$1.7	$4.5	(62.2)%
Operating Margin	6.7%	8.5%	(180) bps		5.6%	10.7%	(510) bps

Net sales on an adjusted basis were down 26.3% as the start of new project construction was delayed within the quarter. New orders continued to accelerate, increasing backlog 9.4% sequentially; the company expects these orders, combined with projects now underway, to drive revenue acceleration in the fourth quarter.

Adjusted operating margin decreased 510 basis points as net sales shifted from the third to the fourth quarter.

Infrastructure

	Three Months Ended September 30,
$Millions	GAAP				Adjusted
	2023	2022	Change		2023	2022	Change
Net Sales	$25.0	$20.4	22.5%		$25.0	$20.4	22.5%
Operating Income	$6.4	$2.6	146.2%		$6.4	$2.6	146.2%
Operating Margin	25.6%	12.6%	1300 bps		25.6%	12.6%	1300 bps

Net sales and order backlog increased 22.5% and 6.2% respectively driven by solid end market demand and market participation gains, and management expects positive momentum to continue for the remainder of the year.

Operating income increased 146.2% and operating margins improved 1,300 basis points driven by strong execution, 80/20 productivity, supply chain efficiency, and product line mix.

Business Outlook

Mr. Bosway concluded, “Given our results for the first nine months and the momentum we carry into the fourth quarter, we are adjusting our outlook for EPS upward, and narrowing our 2023 net sales outlook. We expect to deliver improved profitability and cash flow.”

Gibraltar is raising its guidance for earnings for the full year 2023. GAAP EPS is now expected to range between $3.51 and $3.71, compared to $2.56 in 2022, and adjusted EPS is now expected to range between $4.05 and $4.15, compared to $3.40 in 2022. The outlook for consolidated net sales narrows to between $1.37 billion and $1.40 billion, compared to $1.38 billion in 2022.

Third 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 third 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 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 is in the process of being 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 is in the process of being 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 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. 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 September 30,							Nine Months Ended September 30,
		2023				2022			2023				2022
Net sales	$	390,744			$	391,291		$	1,048,925			$	1,076,105
Cost of sales		285,360				296,735			769,873				826,434
Gross profit		105,384				94,556			279,052				249,671
Selling, general, and administrative expense		52,194				47,160			153,415				140,941
Income from operations		53,190				47,396			125,637				108,730
Interest expense		417				1,048			3,216				2,189
Other (income) expense		(1,040	)			363			(1,946	)			797
Income before taxes		53,813				45,985			124,367				105,744
Provision for income taxes		14,536				11,690			33,268				26,686
Net income	$	39,277			$	34,295		$	91,099			$	79,058
Net earnings per share:
Basic	$	1.29			$	1.08		$	2.97			$	2.44
Diluted	$	1.28			$	1.08		$	2.96			$	2.43
Weighted average shares outstanding:
Basic		30,485				31,707			30,638				32,396
Diluted		30,715				31,812			30,808				32,503

GIBRALTAR INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share data)
	September 30, 2023				December 31, 2022
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	85,465			$	17,608
Accounts receivable, net of allowance of $4,069 and $3,746, respectively		256,400				217,156
Inventories, net		141,008				170,360
Prepaid expenses and other current assets		24,817				18,813
Total current assets		507,690				423,937
Property, plant, and equipment, net		105,537				109,584
Operating lease assets		23,004				26,502
Goodwill		515,344				512,363
Acquired intangibles		134,047				137,526
Other assets		2,424				701
	$	1,288,046			$	1,210,613
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	160,742			$	106,582
Accrued expenses		100,657				73,721
Billings in excess of cost		51,616				35,017
Total current liabilities		313,015				215,320
Long-term debt		—				88,762
Deferred income taxes		47,007				47,088
Non-current operating lease liabilities		16,901				19,041
Other non-current liabilities		21,274				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; 34,212 and 34,060 shares issued and outstanding in 2023 and 2022		342				340
Additional paid-in capital		330,128				322,873
Retained earnings		719,077				627,978
Accumulated other comprehensive loss		(5,483	)			(3,432	)
Cost of 3,776 and 3,199 common shares held in treasury in 2023 and 2022		(154,215	)			(125,660	)
Total stockholders’ equity		889,849				822,099
	$	1,288,046			$	1,210,613

GIBRALTAR INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
	Nine Months Ended September 30,
		2023				2022
Cash Flows from Operating Activities
Net income	$	91,099			$	79,058
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		20,574				19,192
Stock compensation expense		7,257				5,889
Exit activity costs, non-cash		572				1,427
Provision for deferred income taxes		179				181
Other, net		2,945				3,620
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable		(44,331	)			(25,538	)
Inventories		30,431				(19,840	)
Other current assets and other assets		(1,426	)			393
Accounts payable		53,198				(24,756	)
Accrued expenses and other non-current liabilities		46,158				(1,065	)
Net cash provided by operating activities		206,656				38,561
Cash Flows from Investing Activities
Acquisitions, net of cash acquired		(9,863	)			(51,621	)
Purchases of property, plant, and equipment, net		(7,976	)			(15,704	)
Net cash used in investing activities		(17,839	)			(67,325	)
Cash Flows from Financing Activities
Proceeds from long-term debt		50,000				197,800
Long-term debt payments		(141,000	)			(100,000	)
Purchase of common stock at market prices		(29,182	)			(58,125	)
Net cash (used in) provided by financing activities		(120,182	)			39,675
Effect of exchange rate changes on cash		(778	)			(1,841	)
Net increase in cash and cash equivalents		67,857				9,070
Cash and cash equivalents at beginning of year		17,608				12,849
Cash and cash equivalents at end of period	$	85,465			$	21,919

GIBRALTAR INDUSTRIES, INC. Reconciliation of Adjusted Financial Measures (in thousands, except per share data) (unaudited)
		Three Months Ended September 30, 2023
		As Reported In GAAP Statements				Restructuring Charges				Acquisition Related Items				Portfolio Management				Adjusted Financial Measures
Net Sales
Renewables		$	106,362			$	—			$	—			$	—			$	106,362
Residential			227,747				—				—				—				227,747
Agtech			31,666				—				—				(780	)			30,886
Infrastructure			24,969				—				—				—				24,969
Consolidated sales			390,744				—				—				(780	)			389,964
Income from operations
Renewables			12,907				4,385				457				—				17,749
Residential			42,158				676				12				—				42,846
Agtech			2,136				5				—				(399	)			1,742
Infrastructure			6,386				—				—				—				6,386
Segments Income			63,587				5,066				469				(399	)			68,723
Unallocated corporate expense			(10,397	)			(33	)			229				72				(10,129	)
Consolidated income from operations			53,190				5,033				698				(327	)			58,594
Interest expense			417				—				—				—				417
Other (income) expense			(1,040	)			—				—				1,241				201
Income before income taxes			53,813				5,033				698				(1,568	)			57,976
Provision for income taxes			14,536				1,232				175				(450	)			15,493
Net income		$	39,277			$	3,801			$	523			$	(1,118	)		$	42,483
Net income per share - diluted		$	1.28			$	0.12			$	0.02			$	(0.04	)		$	1.38
Operating margin
Renewables			12.1	%			4.2	%			0.4	%			—	%			16.7	%
Residential			18.5	%			0.3	%			—	%			—	%			18.8	%
Agtech			6.7	%			—	%			—	%			(1.3	)%			5.6	%
Infrastructure			25.6	%			—	%			—	%			—	%			25.6	%
Segments Margin			16.3	%			1.3	%			0.1	%			(0.1	)%			17.6	%
Consolidated			13.6	%			1.3	%			0.2	%			(0.1	)%			15.0	%

GIBRALTAR INDUSTRIES, INC. Reconciliation of Adjusted Financial Measures (in thousands, except per share data) (unaudited)
		Three Months Ended September 30, 2022
		As Reported In GAAP Statements				Restructuring & Senior Leadership Transition Costs				Acquisition Related Items				Portfolio Management				Adjusted Financial Measures
Net Sales
Renewables		$	111,119			$	—			$	—			$	—			$	111,119
Residential			215,592				—				—				—				215,592
Agtech			44,217				—				—				(2,326	)			41,891
Infrastructure			20,363				—				—				—				20,363
Consolidated sales			391,291				—				—				(2,326	)			388,965
Income from operations
Renewables			14,216				(42	)			126				—				14,300
Residential			35,802				12				476				—				36,290
Agtech			3,777				232				—				481				4,490
Infrastructure			2,572				—				—				—				2,572
Segments Income			56,367				202				602				481				57,652
Unallocated corporate expense			(8,971	)			82				522				—				(8,367	)
Consolidated income from operations			47,396				284				1,124				481				49,285
Interest expense			1,048				—				—				—				1,048
Other expense			363				—				—				—				363
Income before income taxes			45,985				284				1,124				481				47,874
Provision for income taxes			11,690				74				285				124				12,173
Net income		$	34,295			$	210			$	839			$	357			$	35,701
Net income per share - diluted		$	1.08			$	0.01			$	0.02			$	0.01			$	1.12
Operating margin
Renewables			12.8	%			—	%			0.1	%			—	%			12.9	%
Residential			16.6	%			—	%			0.2	%			—	%			16.8	%
Agtech			8.5	%			0.5	%			—	%			1.1	%			10.7	%
Infrastructure			12.6	%			—	%			—	%			—	%			12.6	%
Segments Margin			14.4	%			0.1	%			0.1	%			0.1	%			14.8	%
Consolidated			12.1	%			0.1	%			0.3	%			0.1	%			12.7	%

GIBRALTAR INDUSTRIES, INC. Reconciliation of Adjusted Financial Measures (in thousands, except per share data) (unaudited)
		Nine Months Ended September 30, 2023
		As Reported In GAAP Statements				Restructuring Charges				Acquisition Related Items				Portfolio Management				Adjusted Financial Measures
Net Sales
Renewables		$	243,026			$	—			$	—			$	—			$	243,026
Residential			635,476				—				—				—				635,476
Agtech			102,546				—				—				(4,059	)			98,487
Infrastructure			67,877				—				—				—				67,877
Consolidated sales			1,048,925				—				—				(4,059	)			1,044,866
Income from operations
Renewables			21,084				7,319				637				—				29,040
Residential			115,626				790				12				—				116,428
Agtech			3,349				722				37				4,458				8,566
Infrastructure			14,928				—				—				—				14,928
Segments Income			154,987				8,831				686				4,458				168,962
Unallocated corporate expense			(29,350	)			(52	)			292				96				(29,014	)
Consolidated income from operations			125,637				8,779				978				4,554				139,948
Interest expense			3,216				—				—				—				3,216
Other (income) expense			(1,946	)			—				—				2,268				322
Income before income taxes			124,367				8,779				978				2,286				136,410
Provision for income taxes			33,268				2,229				248				140				35,885
Net income		$	91,099			$	6,550			$	730			$	2,146			$	100,525
Net income per share - diluted		$	2.96			$	0.21			$	0.02			$	0.07			$	3.26
Operating margin
Renewables			8.7	%			3.0	%			0.3	%			—	%			11.9	%
Residential			18.2	%			0.1	%			—	%			—	%			18.3	%
Agtech			3.3	%			0.7	%			—	%			4.3	%			8.7	%
Infrastructure			22.0	%			—	%			—	%			—	%			22.0	%
Segments Margin			14.8	%			0.8	%			0.1	%			0.4	%			16.2	%
Consolidated			12.0	%			0.8	%			0.1	%			0.4	%			13.4	%

GIBRALTAR INDUSTRIES, INC. Reconciliation of Adjusted Financial Measures (in thousands, except per share data) (unaudited)
		Nine Months Ended September 30, 2022
		As Reported In GAAP Statements				Restructuring & Senior Leadership Transition Costs				Acquisition Related Items				Portfolio Management				Adjusted Financial Measures
Net Sales
Renewables		$	291,451			$	—			$	—			$	—			$	291,451
Residential			595,322				—				—				—				595,322
Agtech			130,325				—				—				(6,897	)			123,428
Infrastructure			59,007				—				—				—				59,007
Consolidated sales			1,076,105				—				—				(6,897	)			1,069,208
Income from operations
Renewables			14,061				2,343				731				—				17,135
Residential			104,901				1,594				476				—				106,971
Agtech			5,350				320				—				4,115				9,785
Infrastructure			6,640				(63	)			—				—				6,577
Segments Income			130,952				4,194				1,207				4,115				140,468
Unallocated corporate expense			(22,222	)			531				529				—				(21,162	)
Consolidated income from operations			108,730				4,725				1,736				4,115				119,306
Interest expense			2,189				—				—				—				2,189
Other expense			797				—				—				100				897
Income before income taxes			105,744				4,725				1,736				4,015				116,220
Provision for income taxes			26,686				1,177				437				1,003				29,303
Net income		$	79,058			$	3,548			$	1,299			$	3,012			$	86,917
Net income per share - diluted		$	2.43			$	0.11			$	0.04			$	0.09			$	2.67
Operating margin
Renewables			4.8	%			0.8	%			0.3	%			—	%			5.9	%
Residential			17.6	%			0.2	%			0.1	%			—	%			18.0	%
Agtech			4.1	%			0.2	%			—	%			3.2	%			7.9	%
Infrastructure			11.3	%			(0.1	)%			—	%			—	%			11.1	%
Segments Margin			12.2	%			0.4	%			0.1	%			0.4	%			13.1	%
Consolidated			10.1	%			0.4	%			0.2	%			0.4	%			11.2	%

GIBRALTAR INDUSTRIES, INC. Reconciliation of Adjusted Financial Measures (in thousands) (unaudited)
		Three Months Ended September 30, 2023
		Consolidated				Renewables				Residential				Agtech				Infrastructure
Net Sales		$	390,744			$	106,362			$	227,747			$	31,666			$	24,969
Less: Processing Net Sales			(780	)			—				—				(780	)			—
Adjusted Net Sales		$	389,964			$	106,362			$	227,747			$	30,886			$	24,969
Net Income			39,277
Provision for Income Taxes			14,536
Interest Expense			417
Other Income			(1,040	)
Operating Profit			53,190				12,907				42,158				2,136				6,386
Adjusted Measures*			5,404				4,842				688				(394	)			—
Adjusted Operating Profit			58,594				17,749				42,846				1,742				6,386
Adjusted Operating Margin			15.0	%			16.7	%			18.8	%			5.6	%			25.6	%
Adjusted Other Expense			245				—				—				—				—
Depreciation & Amortization			6,909				2,171				2,586				943				783
Stock Compensation Expense			2,201				204				528				(194	)			109
Adjusted EBITDA			67,459				20,124				45,960				2,491				7,278
Adjusted EBITDA Margin			17.3	%			18.9	%			20.2	%			8.1	%			29.1	%
Cash Flow - Operating Activities			92,562
Purchase of PPE, Net			(2,692	)
Free Cash Flow			89,870
Free Cash Flow - % of Adjusted Net Sales			23.0	%
*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 September 30, 2022
		Consolidated				Renewables				Residential				Agtech				Infrastructure
Net Sales		$	391,291			$	111,119			$	215,592			$	44,217			$	20,363
Less: Processing Net Sales			(2,326	)			—				—				(2,326	)			—
Adjusted Net Sales		$	388,965			$	111,119			$	215,592			$	41,891			$	20,363
Net Income			34,295
Provision for Income Taxes			11,690
Interest Expense			1,048
Other Expense			363
Operating Profit			47,396				14,216				35,802				3,777				2,572
Adjusted Measures*			1,889				84				488				713				—
Adjusted Operating Profit			49,285				14,300				36,290				4,490				2,572
Adjusted Operating Margin			12.7	%			12.9	%			16.8	%			10.7	%			12.6	%
Adjusted Other Expense			364				—				—				—				—
Depreciation & Amortization			6,515				2,088				2,296				1,015				789
Stock Compensation Expense			1,764				296				313				142				55
Adjusted EBITDA			57,200				16,684				38,899				5,647				3,416
Adjusted EBITDA Margin			14.7	%			15.0	%			18.0	%			13.5	%			16.8	%
Cash Flow - Operating Activities			38,017
Purchase of PPE, Net			(4,502	)
Free Cash Flow			33,515
Free Cash Flow - % of Adjusted Net Sales			8.6	%
*Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

GIBRALTAR INDUSTRIES, INC. Reconciliation of Adjusted Financial Measures (in thousands) (unaudited)
		Nine Months Ended September 30, 2023
		Consolidated				Renewables				Residential				Agtech				Infrastructure
Net Sales		$	1,048,925			$	243,026			$	635,476			$	102,546			$	67,877
Less: Processing Net Sales			(4,059	)			—				—				(4,059	)			—
Adjusted Net Sales		$	1,044,866			$	243,026			$	635,476			$	98,487			$	67,877
Net Income			91,099
Provision for Income Taxes			33,268
Interest Expense			3,216
Other Income			(1,946	)
Operating Profit			125,637				21,084				115,626				3,349				14,928
Adjusted Measures*			14,311				7,956				802				5,217				—
Adjusted Operating Profit			139,948				29,040				116,428				8,566				14,928
Adjusted Operating Margin			13.4	%			11.9	%			18.3	%			8.7	%			22.0	%
Adjusted Other Expense			322				—				—				—				—
Depreciation & Amortization			20,574				6,561				7,542				2,850				2,349
Stock Compensation Expense			7,257				651				1,135				140				212
Adjusted EBITDA			167,457				36,252				125,105				11,556				17,489
Adjusted EBITDA Margin			16.0	%			14.9	%			19.7	%			11.7	%			25.8	%
Cash Flow - Operating Activities			206,656
Purchase of PPE, Net			(7,976	)
Free Cash Flow			198,680
Free Cash Flow - % of Adjusted Net Sales			19.0	%
*Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

GIBRALTAR INDUSTRIES, INC. Reconciliation of Adjusted Financial Measures (in thousands) (unaudited)
		Nine Months Ended September 30, 2022
		Consolidated				Renewables				Residential				Agtech				Infrastructure
Net Sales		$	1,076,105			$	291,451			$	595,322			$	130,325			$	59,007
Less: Processing Net Sales			(6,897	)			—				—				(6,897	)			—
Adjusted Net Sales		$	1,069,208			$	291,451			$	595,322			$	123,428			$	59,007
Net Income			79,058
Provision for Income Taxes			26,686
Interest Expense			2,189
Other Expense			797
Operating Profit			108,730				14,061				104,901				5,350				6,640
Adjusted Measures*			10,576				3,074				2,070				4,435				(63	)
Adjusted Operating Profit			119,306				17,135				106,971				9,785				6,577
Adjusted Operating Margin			11.2	%			5.9	%			18.0	%			7.9	%			11.1	%
Adjusted Other Expense			888				—				—				—				—
Depreciation & Amortization			19,192				6,344				6,374				3,347				2,364
Less: Processing Business Depreciation & Amortization			(332	)			—				—				(332	)			—
Adjusted Depreciation & Amortization			18,860				6,344				6,374				3,015				2,364
Stock Compensation Expense			5,889				744				745				319				129
Less: SLT Related Stock Compensation Recovery			155				—				—				—				—
Adjusted Stock Compensation Expense			6,044				744				745				319				129
Adjusted EBITDA			143,322				24,223				114,090				13,119				9,070
Adjusted EBITDA Margin			13.4	%			8.3	%			19.2	%			10.6	%			15.4	%
Cash Flow - Operating Activities			38,561
Purchase of PPE, Net			(15,704	)
Free Cash Flow			22,857
Free Cash Flow - % of Adjusted Net Sales			2.1	%
*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/20231102038336/en/

LHA Investor Relations

Jody Burfening/Carolyn Capaccio

(212) 838-3777

rock@lhai.com

Source: Gibraltar Industries, Inc.

FAQ

What are the key financial highlights of Gibraltar Industries' Q3 2023 results?

Gibraltar Industries reported that GAAP EPS increased by 19% and adjusted EPS increased by 23% on flat net sales.

How is the company's cash generation and working capital management?

The company reported strong cash generation and working capital management.

What is the backlog situation for Gibraltar Industries?

The backlog is up 5% compared to the previous year.

What is the outlook for end market demand?

End market demand remains strong.

What is the updated guidance for 2023 EPS?

Gibraltar Industries is raising its guidance for 2023 EPS.

How has the net sales outlook changed?

The net sales outlook has been narrowed for 2023.