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 MARCH 31, 2016 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 211,219 $ 27,293 $ (4,835 ) $ 233,677 Cost of sales — 165,439 22,640 (4,558 ) 183,521 Gross profit — 45,780 4,653 (277 ) 50,156 Selling, general, and administrative expense 40 32,070 4,439 — 36,549 (Loss) income from operations (40 ) 13,710 214 (277 ) 13,607 Interest expense (income) 3,403 310 (22 ) — 3,691 Other (income) expense (46 ) 56 (205 ) — (195 ) (Loss) income before taxes (3,397 ) 13,344 441 (277 ) 10,111 (Benefit of) provision for income taxes (1,207 ) 4,634 191 — 3,618 (Loss) income from continuing operations (2,190 ) 8,710 250 (277 ) 6,493 Equity in earnings from subsidiaries 8,960 250 — (9,210 ) — Net income $ 6,770 $ 8,960 $ 250 $ (9,487 ) $ 6,493 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING STATEMENTS OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2015 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 184,350 $ 19,748 $ (3,483 ) $ 200,615 Cost of sales — 156,864 17,216 (3,380 ) 170,700 Gross profit — 27,486 2,532 (103 ) 29,915 Selling, general, and administrative expense 40 19,362 1,543 — 20,945 (Loss) income from operations (40 ) 8,124 989 (103 ) 8,970 Interest expense (income) 3,402 327 (29 ) — 3,700 Other expense (income) 7 (3,523 ) (43 ) — (3,559 ) (Loss) income before taxes (3,449 ) 11,320 1,061 (103 ) 8,829 (Benefit of) provision for income taxes (1,210 ) 4,261 241 — 3,292 (Loss) income from continuing operations (2,239 ) 7,059 820 (103 ) 5,537 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 7,851 820 — (8,671 ) — Net income $ 5,612 $ 7,851 $ 820 $ (8,774 ) $ 5,509 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2016 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net income $ 6,770 $ 8,960 $ 250 $ (9,487 ) $ 6,493 Other comprehensive income: Foreign currency translation adjustment — — 3,078 — 3,078 Adjustment to retirement benefit liability, net of tax — (1 ) — — (1 ) Adjustment to post-retirement health care liability, net of tax — 38 — — 38 Other comprehensive income — 37 3,078 — 3,115 Total comprehensive income $ 6,770 $ 8,997 $ 3,328 $ (9,487 ) $ 9,608 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2015 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net income $ 5,612 $ 7,851 $ 820 $ (8,774 ) $ 5,509 Other comprehensive (loss) income: Foreign currency translation adjustment — — (3,800 ) — (3,800 ) Reclassification of loss on cash flow hedges, net of tax — 143 — — 143 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 (loss) — 182 (3,800 ) — (3,618 ) Total comprehensive income (loss) $ 5,612 $ 8,033 $ (2,980 ) $ (8,774 ) $ 1,891 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING BALANCE SHEETS MARCH 31, 2016 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ — $ 53,155 $ 29,472 $ — $ 82,627 Accounts receivable, net — 131,436 18,022 — 149,458 Intercompany balances 13,943 13,634 (27,577 ) — — Inventories — 96,928 9,478 — 106,406 Other current assets 1,281 4,571 4,000 — 9,852 Total current assets 15,224 299,724 33,395 — 348,343 Property, plant, and equipment, net — 104,380 12,301 — 116,681 Goodwill — 270,017 23,647 — 293,664 Acquired intangibles — 109,837 11,812 — 121,649 Other assets — 4,112 — — 4,112 Investment in subsidiaries 614,945 58,092 — (673,037 ) — $ 630,169 $ 846,162 $ 81,155 $ (673,037 ) $ 884,449 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ — $ 75,413 $ 8,581 $ — $ 83,994 Accrued expenses 1,547 44,927 4,141 — 50,615 Billings in excess of cost — 25,863 5,660 31,523 Current maturities of long-term debt — 400 — — 400 Total current liabilities 1,547 146,603 18,382 — 166,532 Long-term debt 207,674 1,358 — — 209,032 Deferred income taxes — 38,786 4,178 — 42,964 Other non-current liabilities — 44,470 503 — 44,973 Shareholders’ equity 420,948 614,945 58,092 (673,037 ) 420,948 $ 630,169 $ 846,162 $ 81,155 $ (673,037 ) $ 884,449 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING BALANCE SHEETS DECEMBER 31, 2015 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ — $ 39,597 $ 29,261 $ — $ 68,858 Accounts receivable, net — 142,674 22,295 — 164,969 Intercompany balances 15,023 12,033 (27,056 ) — — Inventories — 99,132 7,926 — 107,058 Other current assets 4,535 2,957 3,045 — 10,537 Total current assets 19,558 296,393 35,471 — 351,422 Property, plant, and equipment, net — 106,413 12,519 — 118,932 Goodwill — 270,017 22,373 — 292,390 Acquired intangibles — 111,734 11,279 — 123,013 Other assets — 4,015 — — 4,015 Investment in subsidiaries 603,208 54,792 — (658,000 ) — $ 622,766 $ 843,364 $ 81,642 $ (658,000 ) $ 889,772 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ — $ 81,551 $ 7,653 $ — $ 89,204 Accrued expenses 5,127 55,363 7,115 — 67,605 Billings in excess of cost — 20,548 7,638 — 28,186 Current maturities of long-term debt — 400 — — 400 Total current liabilities 5,127 157,862 22,406 — 185,395 Long-term debt 207,553 1,329 — — 208,882 Deferred income taxes — 38,763 3,891 — 42,654 Other non-current liabilities — 42,202 553 — 42,755 Shareholders’ equity 410,086 603,208 54,792 (658,000 ) 410,086 $ 622,766 $ 843,364 $ 81,642 $ (658,000 ) $ 889,772 GIBRALTAR INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2016 (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 $ (6,557 ) $ 23,250 $ (1,339 ) $ — $ 15,354 Cash Flows from Investing Activities Cash paid for acquisitions — (2,314 ) — — (2,314 ) Net proceeds from sale of property and equipment — 57 — — 57 Purchases of property, plant, and equipment — (1,356 ) (145 ) — (1,501 ) Other, net — 1,118 — — 1,118 Net cash used in investing activities — (2,495 ) (145 ) — (2,640 ) Cash Flows from Financing Activities Purchase of treasury stock at market prices (414 ) — — — (414 ) Net proceeds from issuance of common stock 133 — — — 133 Payment of debt issuance costs — (54 ) — — (54 ) Intercompany financing 6,651 (7,143 ) 492 — — Excess tax benefit from stock compensation 187 — — — 187 Net cash provided by (used in) financing activities 6,557 (7,197 ) 492 — (148 ) Effect of exchange rate changes on cash — — 1,203 — 1,203 Net increase in cash and cash equivalents — 13,558 211 — 13,769 Cash and cash equivalents at beginning of year — 39,597 29,261 — 68,858 Cash and cash equivalents at end of period $ — $ 53,155 $ 29,472 $ — $ 82,627 GIBRALTAR INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 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 $ (6,609 ) $ (8,853 ) $ 710 $ — $ (14,752 ) Cash Flows from Investing Activities Purchases of property, plant, and equipment — (1,720 ) (302 ) — (2,022 ) Other, net — (61 ) — — (61 ) Net proceeds from sale of property and equipment — 26,181 — — 26,181 Net cash provided by (used in) investing activities — 24,400 (302 ) — 24,098 Cash Flows from Financing Activities Purchase of treasury stock at market prices (356 ) — — — (356 ) Net proceeds from issuance of common stock 9 — — — 9 Intercompany financing 6,938 (6,184 ) (754 ) — — Excess tax benefit from stock compensation 18 — — — 18 Net cash provided by (used in) financing activities 6,609 (6,184 ) (754 ) — (329 ) Effect of exchange rate changes on cash — — (1,327 ) — (1,327 ) Net increase (decrease) in cash and cash equivalents — 9,363 (1,673 ) — 7,690 Cash and cash equivalents at beginning of year — 91,466 19,144 — 110,610 Cash and cash equivalents at end of period $ — $ 100,829 $ 17,471 $ — $ 118,300 |