Gibraltar Announces Third Quarter 2023 Financial Results

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.--()--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

 

Contacts

LHA Investor Relations
Jody Burfening/Carolyn Capaccio
(212) 838-3777
rock@lhai.com

$Cashtags

Contacts

LHA Investor Relations
Jody Burfening/Carolyn Capaccio
(212) 838-3777
rock@lhai.com