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 100% owned domestic 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 STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2017 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 947,604 $ 52,738 $ (13,424 ) $ 986,918 Cost of sales — 719,587 43,187 (12,400 ) 750,374 Gross profit — 228,017 9,551 (1,024 ) 236,544 Selling, general, and administrative expense 147 133,409 9,892 — 143,448 Intangible asset impairment — 200 47 — 247 (Loss) income from operations (147 ) 94,408 (388 ) (1,024 ) 92,849 Interest expense (income) 13,609 512 (89 ) — 14,032 Other expense — 500 409 — 909 (Loss) income before taxes (13,756 ) 93,396 (708 ) (1,024 ) 77,908 (Benefit of) provision for income taxes (5,079 ) 19,787 235 — 14,943 (Loss) income from continuing operations (8,677 ) 73,609 (943 ) (1,024 ) 62,965 Discontinued operations: Loss before taxes — (644 ) — — (644 ) Benefit of income taxes — (239 ) — — (239 ) Loss from discontinued operations — (405 ) — — (405 ) Equity in earnings from subsidiaries 72,261 (943 ) — (71,318 ) — Net income (loss) $ 63,584 $ 72,261 $ (943 ) $ (72,342 ) $ 62,560 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2016 (in thousands) Gibraltar Guarantor Non-Guarantor Eliminations Total Net sales $ — $ 950,945 $ 78,184 $ (21,148 ) $ 1,007,981 Cost of sales — 722,315 62,729 (21,825 ) 763,219 Gross profit — 228,630 15,455 677 244,762 Selling, general, and administrative expense 14,302 137,343 9,454 — 161,099 Intangible asset impairment — 7,980 2,195 — 10,175 (Loss) income from operations (14,302 ) 83,307 3,806 677 73,488 Interest expense (income) 13,609 1,042 (74 ) — 14,577 Other expense (income) 8,716 512 (300 ) — 8,928 (Loss) income before taxes (36,627 ) 81,753 4,180 677 49,983 (Benefit of) provision for income taxes (11,768 ) 27,551 481 — 16,264 (Loss) income from continuing operations (24,859 ) 54,202 3,699 677 33,719 Discontinued operations: Loss before taxes — (70 ) — — (70 ) Benefit of income taxes — (26 ) — — (26 ) Loss from discontinued operations — (44 ) — — (44 ) Equity in earnings from subsidiaries 57,857 3,699 — (61,556 ) — Net income $ 32,998 $ 57,857 $ 3,699 $ (60,879 ) $ 33,675 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2015 (in thousands) Gibraltar Guarantor Non-Guarantor Eliminations Total Net sales $ — $ 960,614 $ 109,984 $ (29,725 ) $ 1,040,873 Cost of sales — 785,085 94,949 (26,137 ) 853,897 Gross profit — 175,529 15,035 (3,588 ) 186,976 Selling, general, and administrative expense 133 115,882 17,366 — 133,381 Intangible asset impairment — 4,863 — — 4,863 (Loss) income from operations (133 ) 54,784 (2,331 ) (3,588 ) 48,732 Interest expense (income) 13,609 1,469 (75 ) — 15,003 Other expense (income) 50 (3,154 ) (267 ) — (3,371 ) (Loss) income before taxes (13,792 ) 56,469 (1,989 ) (3,588 ) 37,100 (Benefit of) provision for income taxes (4,427 ) 18,827 (776 ) — 13,624 (Loss) income from continuing operations (9,365 ) 37,642 (1,213 ) (3,588 ) 23,476 Discontinued operations: Loss before taxes — (44 ) — — (44 ) Benefit of income taxes — (16 ) — — (16 ) Loss from discontinued operations — (28 ) — — (28 ) Equity in earnings from subsidiaries 36,401 (1,213 ) — (35,188 ) — Net income (loss) $ 27,036 $ 36,401 $ (1,213 ) $ (38,776 ) $ 23,448 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Year ended December 31, 2017 Net income (loss) $ 63,584 $ 72,261 $ (943 ) $ (72,342 ) $ 62,560 Other comprehensive income: Foreign currency translation adjustment — — 3,150 — 3,150 Adjustment to retirement benefit liability, net of tax — (9 ) — — (9 ) Adjustment to post-retirement healthcare benefit liability, net of tax — 214 — — 214 Other comprehensive income — 205 3,150 — 3,355 Total comprehensive income $ 63,584 $ 72,466 $ 2,207 $ (72,342 ) $ 65,915 Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Year ended December 31, 2016 Net income $ 32,998 $ 57,857 $ 3,699 $ (60,879 ) $ 33,675 Other comprehensive income: Foreign currency translation adjustment — — 6,945 — 6,945 Adjustment to retirement benefit liability, net of tax — 55 — — 55 Adjustment to post-retirement healthcare benefit liability, net of tax — 695 — — 695 Other comprehensive income — 750 6,945 — 7,695 Total comprehensive income $ 32,998 $ 58,607 $ 10,644 $ (60,879 ) $ 41,370 Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Year ended December 31, 2015 Net income (loss) $ 27,036 $ 36,401 $ (1,213 ) $ (38,776 ) $ 23,448 Other comprehensive income (loss): Foreign currency translation adjustment — — (6,228 ) — (6,228 ) Adjustment to retirement benefit liability, net of tax — 34 15 — 49 Adjustment to post-retirement healthcare benefit liability, net of tax — 171 — — 171 Unrealized loss on cash flow hedges, net of tax — 143 — — 143 Other comprehensive income (loss) — 348 (6,213 ) — (5,865 ) Total comprehensive income (loss) $ 27,036 $ 36,749 $ (7,426 ) $ (38,776 ) $ 17,583 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2017 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ — $ 192,604 $ 29,676 $ — $ 222,280 Accounts receivable, net — 138,903 6,482 — 145,385 Intercompany balances 324 4,166 (4,490 ) — — Inventories — 82,457 3,915 — 86,372 Other current assets 5,415 (368 ) 3,680 — 8,727 Total current assets 5,739 417,762 39,263 — 462,764 Property, plant, and equipment, net — 93,906 3,192 — 97,098 Goodwill — 298,258 22,816 — 321,074 Acquired intangibles — 97,171 8,597 — 105,768 Other assets — 4,681 — — 4,681 Investment in subsidiaries 739,970 61,746 — (801,716 ) — $ 745,709 $ 973,524 $ 73,868 $ (801,716 ) $ 991,385 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ — $ 77,786 $ 4,601 $ — $ 82,387 Accrued expenses 5,469 67,746 2,252 — 75,467 Billings in excess of cost — 9,840 2,939 — 12,779 Current maturities of long-term debt — 400 — — 400 Total current liabilities 5,469 155,772 9,792 — 171,033 Long-term debt 208,521 1,100 — — 209,621 Deferred income taxes — 28,907 2,330 — 31,237 Other non-current liabilities — 47,775 — — 47,775 Shareholders’ equity 531,719 739,970 61,746 (801,716 ) 531,719 $ 745,709 $ 973,524 $ 73,868 $ (801,716 ) $ 991,385 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2016 (in thousands) Gibraltar Guarantor Non-Guarantor Eliminations Total Assets Current assets: Cash and cash equivalents $ — $ 143,826 $ 26,351 $ — $ 170,177 Accounts receivable, net — 117,526 6,546 — 124,072 Intercompany balances (615 ) 6,152 (5,537 ) — — Inventories — 85,483 4,129 — 89,612 Other current assets 13,783 (10,070 ) 3,623 — 7,336 Total current assets 13,168 342,917 35,112 — 391,197 Property, plant, and equipment, net — 104,642 3,662 — 108,304 Goodwill — 282,300 21,732 — 304,032 Acquired intangibles — 101,520 9,270 — 110,790 Other assets — 3,922 — — 3,922 Investment in subsidiaries 663,118 58,477 — (721,595 ) — $ 676,286 $ 893,778 $ 69,776 $ (721,595 ) $ 918,245 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ — $ 66,363 $ 3,581 $ — $ 69,944 Accrued expenses 7,369 60,004 3,019 — 70,392 Billings in excess of cost — 9,301 2,051 — 11,352 Current maturities of long-term debt — 400 — — 400 Total current liabilities 7,369 136,068 8,651 — 152,088 Long-term debt 208,037 1,200 — — 209,237 Deferred income taxes — 35,354 2,648 — 38,002 Other non-current liabilities — 58,038 — — 58,038 Shareholders’ equity 460,880 663,118 58,477 (721,595 ) 460,880 $ 676,286 $ 893,778 $ 69,776 $ (721,595 ) $ 918,245 GIBRALTAR INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS DECEMBER 31, 2017 (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 $ (15,172 ) $ 83,114 $ 2,128 $ — $ 70,070 Cash Flows from Investing Activities Purchases of property, plant, and equipment — (11,026 ) (373 ) — (11,399 ) Acquisitions, net of cash acquired — (18,494 ) — — (18,494 ) Net proceeds from sale of property and equipment — 12,905 191 — 13,096 Net cash used in investing activities — (16,615 ) (182 ) — (16,797 ) Cash Flows from Financing Activities Long-term debt payments — (400 ) — — (400 ) Purchase of treasury stock at market prices (2,872 ) — — — (2,872 ) Intercompany financing 17,370 (17,321 ) (49 ) — — Net proceeds from issuance of common stock 674 — — — 674 Net cash provided by (used in) financing activities 15,172 (17,721 ) (49 ) — (2,598 ) Effect of exchange rate changes on cash — — 1,428 — 1,428 Net increase in cash and cash equivalents — 48,778 3,325 — 52,103 Cash and cash equivalents at beginning of year — 143,826 26,351 — 170,177 Cash and cash equivalents at end of year $ — $ 192,604 $ 29,676 $ — $ 222,280 GIBRALTAR INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS DECEMBER 31, 2016 (in thousands) Gibraltar Guarantor Non-Guarantor Eliminations Total Cash Flows from Operating Activities Net cash (used in) provided by operating activities $ (34,243 ) $ 140,890 $ 17,340 $ — $ 123,987 Cash Flows from Investing Activities Purchases of property, plant, and equipment — (10,321 ) (458 ) — (10,779 ) Acquisitions, net of cash acquired — (23,412 ) — — (23,412 ) Net proceeds from sale of property and equipment — 230 723 — 953 Net proceeds from sale of business — — 8,250 — 8,250 Other, net — 1,118 — — 1,118 Net cash (used in) provided by investing activities — (32,385 ) 8,515 — (23,870 ) 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 (1,539 ) — — — (1,539 ) Intercompany financing 32,441 (3,822 ) (28,619 ) — — Net proceeds from issuance of common stock 3,341 — — — 3,341 Net cash provided by (used in) financing activities 34,243 (4,276 ) (28,619 ) — 1,348 Effect of exchange rate changes on cash — — (146 ) — (146 ) Net increase (decrease) in cash and cash equivalents — 104,229 (2,910 ) — 101,319 Cash and cash equivalents at beginning of year — 39,597 29,261 — 68,858 Cash and cash equivalents at end of year $ — $ 143,826 $ 26,351 $ — $ 170,177 GIBRALTAR INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS DECEMBER 31, 2015 (in thousands) Gibraltar Guarantor Non-Guarantor Eliminations Total Cash Flows from Operating Activities Net cash (used in) provided by operating activities $ (13,309 ) $ 94,977 $ 5,553 $ — $ 87,221 Cash Flows from Investing Activities Purchases of property, plant, and equipment — (11,754 ) (619 ) — (12,373 ) Acquisitions, net of cash acquired — (114,145 ) (26,476 ) — (140,621 ) Net proceeds from sale of property and equipment — 26,500 — — 26,500 Other, net — 1,154 1,154 Net cash used in investing activities — (98,245 ) (27,095 ) — (125,340 ) Cash Flows from Financing Activities Long-term debt payments — (73,642 ) — — (73,642 ) Proceeds from long-term debt — 73,242 73,242 Payment of debt issuance costs — (1,166 ) — — (1,166 ) Purchase of treasury stock at market prices (956 ) — — — (956 ) Intercompany financing 12,464 (47,035 ) 34,571 — — Net proceeds from issuance of common stock 1,801 — — — 1,801 Net cash provided by (used in) financing activities 13,309 (48,601 ) 34,571 — (721 ) Effect of exchange rate changes on cash — — (2,912 ) — (2,912 ) Net (decrease) increase in cash and cash equivalents — (51,869 ) 10,117 — (41,752 ) Cash and cash equivalents at beginning of year — 91,466 19,144 — 110,610 Cash and cash equivalents at end of year $ — $ 39,597 $ 29,261 $ — $ 68,858 |