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, 2016 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 245,273 $ 19,922 $ (2,096 ) $ 263,099 Cost of sales — 183,557 15,075 (1,737 ) 196,895 Gross profit — 61,716 4,847 (359 ) 66,204 Selling, general, and administrative expense 14,134 29,367 (3,074 ) — 40,427 (Loss) income from operations (14,134 ) 32,349 7,921 (359 ) 25,777 Interest expense (income) 3,401 285 (20 ) — 3,666 Other expense (income) 8,533 65 (563 ) — 8,035 (Loss) income before taxes (26,068 ) 31,999 8,504 (359 ) 14,076 (Benefit of) provision for income taxes (8,275 ) 4,277 1,085 — (2,913 ) (Loss) income from continuing operations (17,793 ) 27,722 7,419 (359 ) 16,989 Equity in earnings from subsidiaries 35,141 7,419 — (42,560 ) — Net income $ 17,348 $ 35,141 $ 7,419 $ (42,919 ) $ 16,989 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 SIX MONTHS ENDED JUNE 30, 2016 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 456,492 $ 47,215 $ (6,931 ) $ 496,776 Cost of sales — 348,996 37,715 (6,295 ) 380,416 Gross profit — 107,496 9,500 (636 ) 116,360 Selling, general, and administrative expense 14,174 61,437 1,365 — 76,976 (Loss) income from operations (14,174 ) 46,059 8,135 (636 ) 39,384 Interest expense (income) 6,804 595 (42 ) — 7,357 Other expense (income) 8,487 121 (768 ) — 7,840 (Loss) income before taxes (29,465 ) 45,343 8,945 (636 ) 24,187 (Benefit of) provision for income taxes (9,482 ) 8,911 1,276 — 705 (Loss) income from continuing operations (19,983 ) 36,432 7,669 (636 ) 23,482 Equity in earnings from subsidiaries 44,101 7,669 — (51,770 ) — Net income $ 24,118 $ 44,101 $ 7,669 $ (52,406 ) $ 23,482 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 COMPREHENSIVE INCOME THREE MONTHS ENDED JUNE 30, 2016 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net income $ 17,348 $ 35,141 $ 7,419 $ (42,919 ) $ 16,989 Other comprehensive income: Foreign currency translation adjustment — — 7,753 — 7,753 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 7,753 — 7,790 Total comprehensive income $ 17,348 $ 35,178 $ 15,172 $ (42,919 ) $ 24,779 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 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 SIX MONTHS ENDED JUNE 30, 2016 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net income $ 24,118 $ 44,101 $ 7,669 $ (52,406 ) $ 23,482 Other comprehensive income: Foreign currency translation adjustment — — 10,831 — 10,831 Adjustment to retirement benefit liability, net of tax — (2 ) — — (2 ) Adjustment to post-retirement health care liability, net of tax — 76 — — 76 Other comprehensive income — 74 10,831 — 10,905 Total comprehensive income $ 24,118 $ 44,175 $ 18,500 $ (52,406 ) $ 34,387 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 BALANCE SHEETS JUNE 30, 2016 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ — $ 100,762 $ 23,352 $ — $ 124,114 Accounts receivable, net — 138,630 11,540 — 150,170 Intercompany balances 12,719 (5,014 ) (7,705 ) — — Inventories — 92,657 5,564 — 98,221 Other current assets 11,517 (3,380 ) 3,982 — 12,119 Total current assets 24,236 323,655 36,733 — 384,624 Property, plant, and equipment, net — 103,439 5,369 — 108,808 Goodwill — 270,017 24,780 — 294,797 Acquired intangibles — 107,934 12,501 — 120,435 Other assets — 4,336 — — 4,336 Investment in subsidiaries 640,535 62,888 — (703,423 ) — $ 664,771 $ 872,269 $ 79,383 $ (703,423 ) $ 913,000 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ — $ 78,856 $ 3,949 $ — $ 82,805 Accrued expenses 7,397 38,600 3,334 — 49,331 Billings in excess of cost — 25,486 4,872 30,358 Current maturities of long-term debt — 400 — — 400 Total current liabilities 7,397 143,342 12,155 — 162,894 Long-term debt 207,795 1,041 — — 208,836 Deferred income taxes — 38,809 4,340 — 43,149 Other non-current liabilities — 48,542 — — 48,542 Shareholders’ equity 449,579 640,535 62,888 (703,423 ) 449,579 $ 664,771 $ 872,269 $ 79,383 $ (703,423 ) $ 913,000 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 SIX MONTHS ENDED JUNE 30, 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 $ (27,297 ) $ 62,183 $ 14,263 $ — $ 49,149 Cash Flows from Investing Activities Cash paid for acquisitions — (2,314 ) — — (2,314 ) Net proceeds from sale of property and equipment — 133 29 — 162 Purchases of property, plant, and equipment — (3,852 ) (183 ) — (4,035 ) Net proceeds from sale of business — — 8,479 — 8,479 Other, net — 1,118 — — 1,118 Net cash (used in) provided by investing activities — (4,915 ) 8,325 — 3,410 Cash Flows from Financing Activities Long-term debt payments — (400 ) — — (400 ) Payment of debt issuance costs — (54 ) — — (54 ) Purchase of treasury stock at market prices (462 ) — — — (462 ) Net proceeds from issuance of common stock 2,057 — — — 2,057 Intercompany financing 25,410 4,351 (29,761 ) — — Excess tax benefit from stock compensation 292 — — — 292 Net cash provided by (used in) financing activities 27,297 3,897 (29,761 ) — 1,433 Effect of exchange rate changes on cash — — 1,264 — 1,264 Net increase (decrease) in cash and cash equivalents — 61,165 (5,909 ) — 55,256 Cash and cash equivalents at beginning of year — 39,597 29,261 — 68,858 Cash and cash equivalents at end of period $ — $ 100,762 $ 23,352 $ — $ 124,114 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 Purchases of property, plant, and equipment — (4,307 ) (317 ) — (4,624 ) Cash paid for acquisitions — (106,055 ) (28,263 ) — (134,318 ) Other, net — 1,154 — — 1,154 Net proceeds from sale of property and equipment — 26,181 — — 26,181 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 |