Supplemental Financial Information | SUPPLEMENTAL FINANCIAL INFORMATION The following information sets forth the consolidating summary financial statements of the issuer (Gibraltar Industries, Inc.) and guarantors, which guarantee the Senior Subordinated 6.25% Notes due February 1, 2021 , and the non-guarantors. The guarantors are significant domestic 100% owned subsidiaries of the issuer and the guarantees are full, unconditional, joint and several. Investments in subsidiaries are accounted for by the parent using the equity method of accounting. The guarantor subsidiaries and non-guarantor subsidiaries are presented on a combined basis. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. GIBRALTAR INDUSTRIES, INC. CONSOLIDATING STATEMENTS OF OPERATIONS THREE MONTHS ENDED JUNE 30, 2015 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 235,468 $ 22,419 $ (4,716 ) $ 253,171 Cost of sales — 193,554 19,863 (4,365 ) 209,052 Gross profit — 41,914 2,556 (351 ) 44,119 Selling, general, and administrative expense 31 30,322 2,565 — 32,918 (Loss) income from operations (31 ) 11,592 (9 ) (351 ) 11,201 Interest expense (income) 3,402 433 (24 ) — 3,811 Other (income) expense (19 ) 1,058 62 — 1,101 (Loss) income before taxes (3,414 ) 10,101 (47 ) (351 ) 6,289 (Benefit of) provision for income taxes (1,197 ) 3,174 225 — 2,202 (Loss) income from continuing operations (2,217 ) 6,927 (272 ) (351 ) 4,087 Equity in earnings from subsidiaries 6,655 (272 ) — (6,383 ) — Net income (loss) $ 4,438 $ 6,655 $ (272 ) $ (6,734 ) $ 4,087 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING STATEMENTS OF OPERATIONS THREE MONTHS ENDED JUNE 30, 2014 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 216,885 $ 22,971 $ (4,896 ) $ 234,960 Cost of sales — 179,207 20,173 (4,543 ) 194,837 Gross profit — 37,678 2,798 (353 ) 40,123 Selling, general, and administrative expense 25 23,511 1,857 — 25,393 (Loss) income from operations (25 ) 14,167 941 (353 ) 14,730 Interest expense (income) 3,403 322 (34 ) — 3,691 Other expense — 519 — — 519 (Loss) income before taxes (3,428 ) 13,326 975 (353 ) 10,520 (Benefit of) provision for income taxes (1,187 ) 5,095 181 — 4,089 (Loss) income from continuing operations (2,241 ) 8,231 794 (353 ) 6,431 Equity in earnings from subsidiaries 9,025 794 — (9,819 ) — Net income $ 6,784 $ 9,025 $ 794 $ (10,172 ) $ 6,431 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING STATEMENTS OF OPERATIONS SIX MONTHS ENDED JUNE 30, 2015 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 419,818 $ 42,167 $ (8,199 ) $ 453,786 Cost of sales — 350,418 37,079 (7,745 ) 379,752 Gross profit — 69,400 5,088 (454 ) 74,034 Selling, general, and administrative expense 71 49,684 4,108 — 53,863 (Loss) income from operations (71 ) 19,716 980 (454 ) 20,171 Interest expense (income) 6,804 760 (53 ) — 7,511 Other (income) expense (12 ) (2,465 ) 19 — (2,458 ) (Loss) income before taxes (6,863 ) 21,421 1,014 (454 ) 15,118 (Benefit of) provision for income taxes (2,407 ) 7,435 466 — 5,494 (Loss) income from continuing operations (4,456 ) 13,986 548 (454 ) 9,624 Discontinued operations: Loss from discontinued operations before taxes — (44 ) — — (44 ) Benefit of income taxes — (16 ) — — (16 ) Loss from discontinued operations — (28 ) — — (28 ) Equity in earnings from subsidiaries 14,506 548 — (15,054 ) — Net income $ 10,050 $ 14,506 $ 548 $ (15,508 ) $ 9,596 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING STATEMENTS OF OPERATIONS SIX MONTHS ENDED JUNE 30, 2014 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 389,666 $ 45,890 $ (9,564 ) $ 425,992 Cost of sales — 324,368 40,667 (9,030 ) 356,005 Gross profit — 65,298 5,223 (534 ) 69,987 Selling, general, and administrative expense 61 51,274 3,589 — 54,924 (Loss) income from operations (61 ) 14,024 1,634 (534 ) 15,063 Interest expense (income) 6,764 636 (69 ) — 7,331 Other expense — 549 — — 549 (Loss) income before taxes (6,825 ) 12,839 1,703 (534 ) 7,183 (Benefit of) provision for income taxes (2,364 ) 4,861 341 — 2,838 (Loss) income from continuing operations (4,461 ) 7,978 1,362 (534 ) 4,345 Equity in earnings from subsidiaries 9,340 1,362 — (10,702 ) — Net income $ 4,879 $ 9,340 $ 1,362 $ (11,236 ) $ 4,345 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED JUNE 30, 2015 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net income (loss) $ 4,438 $ 6,655 $ (272 ) $ (6,734 ) $ 4,087 Other comprehensive income: Foreign currency translation adjustment — — 2,138 — 2,138 Reclassification of loss on cash flow hedges, net of tax — — — — — Adjustment to retirement benefit liability, net of tax — 2 — — 2 Adjustment to post-retirement health care liability, net of tax — 37 — — 37 Other comprehensive income — 39 2,138 — 2,177 Total comprehensive income $ 4,438 $ 6,694 $ 1,866 $ (6,734 ) $ 6,264 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED JUNE 30, 2014 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net income $ 6,784 $ 9,025 $ 794 $ (10,172 ) $ 6,431 Other comprehensive (loss) income: Foreign currency translation adjustment — — 1,542 — 1,542 Change in unrealized loss on cash flow hedges, net of tax — (956 ) — — (956 ) Adjustment to retirement benefit liability, net of tax — 2 — — 2 Adjustment to post-retirement health care liability, net of tax — 18 — — 18 Other comprehensive (loss) income — (936 ) 1,542 — 606 Total comprehensive income $ 6,784 $ 8,089 $ 2,336 $ (10,172 ) $ 7,037 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME SIX MONTHS ENDED JUNE 30, 2015 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net income $ 10,050 $ 14,506 $ 548 $ (15,508 ) $ 9,596 Other comprehensive (loss) income: Foreign currency translation adjustment — — (1,662 ) — (1,662 ) Reclassification of loss on cash flow hedges, net of tax — 143 — — 143 Adjustment to retirement benefit liability, net of tax — 4 — — 4 Adjustment to post-retirement health care liability, net of tax — 74 — — 74 Other comprehensive income (loss) — 221 (1,662 ) — (1,441 ) Total comprehensive income (loss) $ 10,050 $ 14,727 $ (1,114 ) $ (15,508 ) $ 8,155 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME SIX MONTHS ENDED JUNE 30, 2014 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net income $ 4,879 $ 9,340 $ 1,362 $ (11,236 ) $ 4,345 Other comprehensive income (loss): Foreign currency translation adjustment — — 638 — 638 Change in unrealized loss on cash flow hedges, net of tax — (956 ) — — (956 ) Adjustment to retirement benefit liability, net of tax — 4 — — 4 Adjustment to post-retirement health care liability, net of tax — 37 — — 37 Other comprehensive (loss) income — (915 ) 638 — (277 ) Total comprehensive income $ 4,879 $ 8,425 $ 2,000 $ (11,236 ) $ 4,068 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING BALANCE SHEETS JUNE 30, 2015 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ — $ 17,160 $ 22,262 $ — $ 39,422 Accounts receivable, net — 160,282 20,100 — 180,382 Intercompany balances (114,041 ) 137,658 (23,617 ) — — Inventories — 124,810 9,941 — 134,751 Other current assets 2,448 17,840 3,051 — 23,339 Total current assets (111,593 ) 457,750 31,737 — 377,894 Property, plant, and equipment, net — 110,822 14,173 — 124,995 Goodwill — 271,343 21,575 — 292,918 Acquired intangibles — 120,151 16,580 — 136,731 Other assets 2,689 4,772 — — 7,461 Investment in subsidiaries 720,452 57,621 — (778,073 ) — $ 611,548 $ 1,022,459 $ 84,065 $ (778,073 ) $ 939,999 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ — $ 106,333 $ 8,398 $ — $ 114,731 Accrued expenses 4,928 75,842 11,613 — 92,383 Current maturities of long-term debt — 400 — — 400 Total current liabilities 4,928 182,575 20,011 — 207,514 Long-term debt 210,000 32,800 — — 242,800 Deferred income taxes — 48,744 5,987 — 54,731 Other non-current liabilities — 37,888 446 — 38,334 Shareholders’ equity 396,620 720,452 57,621 (778,073 ) 396,620 $ 611,548 $ 1,022,459 $ 84,065 $ (778,073 ) $ 939,999 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2014 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ — $ 91,466 $ 19,144 $ — $ 110,610 Accounts receivable, net — 91,713 9,428 — 101,141 Intercompany balances 21,619 (1,850 ) (19,769 ) — — Inventories — 120,091 8,652 — 128,743 Other current assets 4,484 14,488 965 — 19,937 Total current assets 26,103 315,908 18,420 — 360,431 Property, plant, and equipment, net — 116,628 12,947 — 129,575 Goodwill — 229,558 6,486 — 236,044 Acquired intangibles — 77,259 4,956 — 82,215 Other assets 2,931 2,964 — — 5,895 Investment in subsidiaries 573,664 32,404 — (606,068 ) — $ 602,698 $ 774,721 $ 42,809 $ (606,068 ) $ 814,160 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ — $ 74,751 $ 6,495 $ — $ 81,246 Accrued expenses 5,469 45,561 1,409 — 52,439 Current maturities of long-term debt — 400 — — 400 Total current liabilities 5,469 120,712 7,904 — 134,085 Long-term debt 210,000 3,200 — — 213,200 Deferred income taxes — 47,717 2,055 — 49,772 Other non-current liabilities — 29,428 446 — 29,874 Shareholders’ equity 387,229 573,664 32,404 (606,068 ) 387,229 $ 602,698 $ 774,721 $ 42,809 $ (606,068 ) $ 814,160 GIBRALTAR INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2015 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flows from Operating Activities Net cash (used in) provided by operating activities $ (6,621 ) $ 16,091 $ 2,288 $ — $ 11,758 Cash Flows from Investing Activities Cash paid for acquisitions — (106,055 ) (28,263 ) — (134,318 ) Net proceeds from sale of property and equipment — 26,181 — — 26,181 Purchases of property, plant, and equipment — (4,307 ) (317 ) — (4,624 ) Other investing activities — 1,154 — — 1,154 Net cash used in investing activities — (83,027 ) (28,580 ) — (111,607 ) Cash Flows from Financing Activities Long-term debt payments — (11,792 ) — — (11,792 ) Proceeds from long-term debt — 41,392 — — 41,392 Purchase of treasury stock at market prices (387 ) — — — (387 ) Net proceeds from issuance of common stock 180 — — — 180 Intercompany financing 6,791 (36,970 ) 30,179 — — Excess tax benefit from stock compensation 37 — — — 37 Net cash provided by (used in) financing activities 6,621 (7,370 ) 30,179 — 29,430 Effect of exchange rate changes on cash — — (769 ) — (769 ) Net (decrease) increase in cash and cash equivalents — (74,306 ) 3,118 — (71,188 ) Cash and cash equivalents at beginning of year — 91,466 19,144 — 110,610 Cash and cash equivalents at end of period $ — $ 17,160 $ 22,262 $ — $ 39,422 GIBRALTAR INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2014 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash Flows from Operating Activities Net cash (used in) provided by operating activities $ (6,664 ) $ 272 $ 2,607 $ — $ (3,785 ) Cash Flows from Investing Activities Purchases of property, plant, and equipment — (9,232 ) (2,266 ) — (11,498 ) Other investing activities — 121 — — 121 Net proceeds from sale of property and equipment — 5,947 3 — 5,950 Net cash used in investing activities — (3,164 ) (2,263 ) — (5,427 ) Cash Flows from Financing Activities Long-term debt payments — (407 ) — — (407 ) Purchase of treasury stock at market prices (408 ) — — — (408 ) Net proceeds from issuance of common stock 404 — — — 404 Intercompany financing 6,587 (6,028 ) (559 ) — — Excess tax benefit from stock compensation 81 — — — 81 Net cash provided by (used in) financing activities 6,664 (6,435 ) (559 ) — (330 ) Effect of exchange rate changes on cash — — 260 — 260 Net (decrease) increase in cash and cash equivalents — (9,327 ) 45 — (9,282 ) Cash and cash equivalents at beginning of year — 75,856 21,183 — 97,039 Cash and cash equivalents at end of period $ — $ 66,529 $ 21,228 $ — $ 87,757 |