Gibraltar Announces Third-Quarter 2018 Financial Results
Reports Revenues of $280.1 million, GAAP EPS of $0.60 and Adjusted EPS of $0.71
GAAP and Adjusted EPS at Higher End of Guidance
Strong Demand for Innovative Products Continues
Buffalo, New York, November 1, 2018 - Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and distributor of building products for the residential, industrial, infrastructure, and renewable energy and conservation markets, today reported its financial results for the three- and nine-month periods ended September 30, 2018. All financial metrics in this release reflect only the Company’s continuing operations unless otherwise noted.
Third-quarter Consolidated Results
Gibraltar reported the following consolidated results:
|
| | | | | | | |
| | Three Months Ended September 30, |
| Dollars in millions, except EPS | GAAP | | Adjusted |
| | 2018 | 2017 | % Change | | 2018 | 2017 | % Change |
| Net Sales | $280.1 | $274.6 | 2.0% | | $280.1 | $274.6 | 2.0% |
| Net Income | $19.5 | $20.6 | (5.3)% | | $23.2 | $21.5 | 7.9% |
| Diluted EPS | $0.60 | $0.64 | (6.3)% | | $0.71 | $0.67 | 6.0% |
The Company reported third-quarter 2018 net sales of $280.1 million. The 2 percent increase was driven by strong growth in the Renewable Energy & Conservation segment and increased demand for higher-margin, innovative products, which were partially offset by an unfavorable year-over-year comparison in the Residential Segment due to strong storm-related roofing activity in the third quarter of 2017, and lower end-market activity in Infrastructure.
GAAP and adjusted earnings were at the higher end of the Company’s guidance as noted in its second-quarter earnings release, reflecting strong results in the Renewable Energy & Conservation segment, a greater mix of higher-margin innovative products, effective price-material cost management and ongoing benefits from 80/20 simplification initiatives. The adjusted amounts for the third quarter of 2018 and 2017 remove special items from both periods, as described in the appended reconciliation of adjusted financial measures.
Management Comments
“We delivered another solid quarter, reporting year-over-year growth on both the top and bottom lines, excluding special charges, even as we faced market headwinds,” said President and CEO Frank Heard. “We executed on our four-pillar strategy, managed cost volatility extremely well, achieved growth through innovative new products, and maintained the momentum we have generated in the renewable energy and conservation markets. Revenues were up 2 percent year over year and GAAP and adjusted earnings of $0.60 and $0.71, respectively, were at the higher end of our guidance range.”
Third-quarter Segment Results
Residential Products
For the third quarter, the Residential Products segment reported:
|
| | | | | | | |
| | Three Months Ended September 30, |
| Dollars in millions | GAAP | | Adjusted |
| | 2018 | 2017 | % Change | | 2018 | 2017 | % Change |
| Net Sales | $125.8 | $129.5 | (2.9)% | | $125.8 | $129.5 | (2.9)% |
| Operating Margin | 16.0% | 18.4% | (240) bps | | 17.5% | 19.1% | (160) bps |
Third-quarter 2018 revenues in Gibraltar’s Residential Products segment were down 3 percent year over year, primarily due to higher storm-related roofing activity in the third quarter of 2017, and softness in the commercial and multi-family construction markets. Steady customer demand for rain management products partially offset those factors.
Lower operating margin resulted from unfavorable product mix, and to a lesser extent, volume leverage. The adjusted operating margin for the third quarter of 2018 and 2017 removes the special charges for restructuring initiatives under the 80/20 program from both periods.
Industrial & Infrastructure Products
For the third quarter, the Industrial & Infrastructure Products segment reported:
|
| | | | | | | |
| | Three Months Ended September 30, |
| Dollars in millions | GAAP | | Adjusted |
| | 2018 | 2017 | % Change | | 2018 | 2017 | % Change |
| Net Sales | $55.8 | $56.9 | (1.9)% | | $55.8 | $56.9 | (1.9)% |
| Operating Margin | 5.2% | 4.5% | 70 bps | | 8.4% | 5.1% | 330 bps |
Third-quarter 2018 revenues in Gibraltar’s Industrial & Infrastructure Products segment were down 2 percent year over year as strong performance from the Industrial business was more than offset by lower demand in the Infrastructure business. The Company expects continued demand for innovative products in its Industrial business and growing demand in its Infrastructure business.
GAAP and adjusted operating margin improvement for the segment resulted from demand for higher-margin innovative products, the continued benefit from 80/20 simplification initiatives and effective price-material cost management. This segment’s adjusted operating margin for the third quarter of 2018 and 2017 removes the special charges for restructuring initiatives under the 80/20 program, portfolio management activities, and senior leadership transition costs.
Renewable Energy & Conservation
For the third quarter, the Renewable Energy & Conservation segment reported:
|
| | | | | | | |
| | Three Months Ended September 30, |
| Dollars in millions | GAAP | | Adjusted |
| | 2018 | 2017 | % Change | | 2018 | 2017 | % Change |
| Net Sales | $98.5 | $88.1 | 11.8% | | $98.5 | $88.1 | 11.8% |
| Operating Margin | 15.3% | 13.1% | 220 bps | | 15.1% | 13.6% | 150 bps |
Renewable Energy & Conservation segment revenues were up 12 percent year over year, driven by strong domestic demand, continued growth in innovative products, and a contribution from the recently acquired SolarBos.
The third-quarter 2018 GAAP and adjusted operating margin improvement reflected the continued benefit from 80/20 simplification initiatives and leverage from the continued strong demand for our renewable energy and conservation products and services. This segment’s adjusted operating margin for the third quarter of 2018 and 2017 removes the special charges for restructuring initiatives and portfolio management activities.
Business Outlook
“We continue to be optimistic about innovative products driving organic growth across all of our segments, and we are confident in the end markets these products are targeting,” said Heard. “We also are excited about our growth momentum in the Renewable Energy & Conservation segment.”
“For the fourth quarter, our goals are to drive sustainable growth through the acceleration of new product development initiatives, to work with our customers to manage cost volatility, to implement 80/20 simplification projects, and to seek value-added acquisitions in attractive end markets. For the full year, we expect to continue to deliver on our promise to make more money at a higher rate of return with a more efficient use of capital, and create long-term value creation for our shareholders,” concluded Heard.
Gibraltar continues to expect 2018 consolidated revenues to exceed $1 billion, but is lowering its revenue growth expectations from 2-4% growth to 1-2% growth, considering current activity levels across the Company’s end markets. At the same time, Gibraltar is narrowing its full-year 2018 earnings guidance to the high end of the previous range. GAAP EPS for the full year 2018 are now expected to be in the range of $1.82 to $1.87, or $2.03 to $2.08 on an adjusted basis, compared with $1.95 and $1.71, respectively, in 2017.
For the fourth quarter of 2018, the Company is expecting revenue in the range of $239 million to $249 million. GAAP EPS for the fourth quarter 2018 are expected to be between $0.26 and $0.31, or $0.35 to $0.40 on an adjusted basis.
|
| | | | | | | | | | | | | | | | | | | | | | | |
| FY 2018 Guidance Reconciliation | | | | | | | | |
| | Gibraltar Industries | | |
| Dollars in millions, except EPS | Operating | | Income | | Net | | Diluted Earnings | | |
| | Income | | Margin | | Taxes | | Income | | Per Share | | |
| GAAP Measures | $ | 90-92 | | | | 9.1-9.2 % | | | $ | 19-20 | | | $ | 58-60 | | | $ | 1.82-1.87 | |
| Restructuring Costs | | 10 | | | | 1% | | | 2 | | | | 8 | | | | 0.21 | | |
| | | | | | | | | | | | | | | | |
| Adjusted Measures | $ | 100-102 | | | | 10.1-10.2% | | | $ | 21-22 | | | $ | 66-68 | | | $ | 2.03-2.08 | |
Third-quarter Conference Call Details
Gibraltar has scheduled a conference call today starting at 9:00 a.m. ET to review its results for the third quarter of 2018. Interested parties may access the call by dialing (877) 407-5790 or (201) 689-8328. The presentation slides that will be discussed in the conference call are expected to be available this morning, prior to the start of the call. The slides may be downloaded from the Gibraltar website: www.gibraltar1.com. A webcast replay of the conference call and a copy of the transcript will be available on the website following the call.
About Gibraltar
Gibraltar Industries is a leading manufacturer and distributor of building products for the residential, industrial, infrastructure, and renewable energy and conservation markets. With a four-pillar strategy focused on operational improvement, product innovation, portfolio management and acquisitions, Gibraltar’s mission is to drive best-in-class performance. Gibraltar serves customers primarily throughout North America and to a lesser extent Asia. Comprehensive information about Gibraltar can be found on its website at www.gibraltar1.com.
Safe Harbor Statement
Information contained in this news release, other than historical information, contains forward-looking statements and is subject to a number of risk factors, uncertainties, and assumptions. Risk factors that could affect these statements include, but are not limited to, the following: the availability of raw materials and the effects of changing raw material prices on the Company’s results of operations; energy prices and usage; changing demand for the Company’s products and services; changes in the liquidity of the capital and credit markets; risks associated with the integration and performance of acquisitions; and changes in interest and tax rates. In addition, such forward-looking statements could also be affected by general industry and market conditions, as well as macroeconomic factors including government monetary and trade policies, such as tariffs and expiration of tax credits along with currency fluctuations and general political conditions. Other risks and uncertainties that arise from time to time are described in Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K. 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. Adjusted financial measures exclude special charges consisting of restructuring costs primarily associated with the 80/20 simplification initiative and portfolio management actions, acquisition-related items, and other reclassifications. These adjustments are shown in the reconciliation of adjusted financial measures excluding special charges provided in the supplemental financial schedules that accompany this news release. The Company believes that the presentation of results excluding special charges provides meaningful supplemental data to investors, as well as management, 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. Special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations. 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.
Next Earnings Announcement
Gibraltar expects to release its financial results for the three- and twelve-month period ending December 31, 2018, on Thursday, February 21, 2019, and hold its earnings conference call later that morning, starting at 9:00 a.m. ET.
Contact:
Timothy Murphy
Chief Financial Officer
(716) 826-6500 ext. 3277
tfmurphy@gibraltar1.com
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended
September 30, | | Nine Months Ended
September 30, |
| | 2018 | | 2017 | | 2018 | | 2017 |
| Net Sales | $ | 280,086 |
| | $ | 274,574 |
| | $ | 761,459 |
| | $ | 728,806 |
|
| Cost of sales | 209,807 |
| | 205,839 |
| | 572,359 |
| | 548,991 |
|
| Gross profit | 70,279 |
| | 68,735 |
| | 189,100 |
| | 179,815 |
|
| Selling, general, and administrative expense | 40,875 |
| | 33,042 |
| | 113,579 |
| | 109,513 |
|
| Income from operations | 29,404 |
| | 35,693 |
| | 75,521 |
| | 70,302 |
|
| Interest expense | 2,906 |
| | 3,486 |
| | 9,305 |
| | 10,612 |
|
| Other expense (income) | 522 |
| | 404 |
| | (50 | ) | | 811 |
|
| Income before taxes | 25,976 |
| | 31,803 |
| | 66,266 |
| | 58,879 |
|
| Provision for income taxes | 6,473 |
| | 11,184 |
| | 15,574 |
| | 21,090 |
|
| Income from continuing operations | 19,503 |
| | 20,619 |
| | 50,692 |
| | 37,789 |
|
| Discontinued operations: | | | | | | | |
| Loss before taxes | — |
| | — |
| | — |
| | (644 | ) |
| Benefit of income taxes | — |
| | — |
| | — |
| | (239 | ) |
| Loss from discontinued operations | — |
| | — |
| | — |
| | (405 | ) |
| Net income | $ | 19,503 |
| | $ | 20,619 |
| | $ | 50,692 |
| | $ | 37,384 |
|
| Net earnings per share – Basic: | | | | | | | |
| Income from continuing operations | $ | 0.61 |
| | $ | 0.65 |
| | $ | 1.59 |
| | $ | 1.19 |
|
| Loss from discontinued operations | — |
| | — |
| | — |
| | (0.01 | ) |
| Net income | $ | 0.61 |
| | $ | 0.65 |
| | $ | 1.59 |
| | $ | 1.18 |
|
| Weighted average shares outstanding -- Basic | 32,115 |
| | 31,703 |
| | 31,922 |
| | 31,700 |
|
| Net earnings per share – Diluted: | | | | | | | |
| Income from continuing operations | $ | 0.60 |
| | $ | 0.64 |
| | $ | 1.56 |
| | $ | 1.17 |
|
| Loss from discontinued operations | — |
| | — |
| | — |
| | (0.01 | ) |
| Net income | $ | 0.60 |
| | $ | 0.64 |
| | $ | 1.56 |
| | $ | 1.16 |
|
| Weighted average shares outstanding -- Diluted | 32,571 |
| | 32,210 |
| | 32,524 |
| | 32,216 |
|
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
|
| | | | | | | |
| | September 30,
2018 | | December 31,
2017 |
| | (unaudited) | | |
| Assets | | | |
| Current assets: | | | |
| Cash and cash equivalents | $ | 245,413 |
| | $ | 222,280 |
|
| Accounts receivable, net | 180,875 |
| | 145,385 |
|
| Inventories | 97,486 |
| | 86,372 |
|
| Other current assets | 8,949 |
| | 8,727 |
|
| Total current assets | 532,723 |
| | 462,764 |
|
| Property, plant, and equipment, net | 93,718 |
| | 97,098 |
|
| Goodwill | 323,321 |
| | 321,074 |
|
| Acquired intangibles | 99,545 |
| | 105,768 |
|
| Other assets | 4,480 |
| | 4,681 |
|
| | $ | 1,053,787 |
| | $ | 991,385 |
|
| Liabilities and Shareholders’ Equity | | | |
| Current liabilities: | | | |
| Accounts payable | $ | 92,997 |
| | $ | 82,387 |
|
| Accrued expenses | 76,268 |
| | 75,467 |
|
| Billings in excess of cost | 21,900 |
| | 12,779 |
|
| Current maturities of long-term debt | 400 |
| | 400 |
|
| Total current liabilities | 191,565 |
| | 171,033 |
|
| Long-term debt | 209,809 |
| | 209,621 |
|
| Deferred income taxes | 32,110 |
| | 31,237 |
|
| Other non-current liabilities | 37,428 |
| | 47,775 |
|
| Shareholders’ equity: | | | |
| Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding | — |
| | — |
|
| Common stock, $0.01 par value; authorized 50,000 shares; 32,842 shares and 32,332 shares issued and outstanding in 2018 and 2017 | 328 |
| | 323 |
|
| Additional paid-in capital | 280,149 |
| | 271,957 |
|
| Retained earnings | 325,878 |
| | 274,562 |
|
| Accumulated other comprehensive loss | (6,174 | ) | | (4,366 | ) |
| Cost of 778 and 615 common shares held in treasury in 2018 and 2017 | (17,306 | ) | | (10,757 | ) |
| Total shareholders’ equity | 582,875 |
| | 531,719 |
|
| | $ | 1,053,787 |
| | $ | 991,385 |
|
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
|
| | | | | | | |
| | Nine Months Ended
September 30, |
| | 2018 | | 2017 |
| Cash Flows from Operating Activities | | | |
| Net income | $ | 50,692 |
| | $ | 37,384 |
|
| Loss from discontinued operations | — |
| | (405 | ) |
| Income from continuing operations | 50,692 |
| | 37,789 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: | | | |
| Depreciation and amortization | 15,449 |
| | 16,427 |
|
| Stock compensation expense | 6,854 |
| | 5,069 |
|
| Net gain on sale of assets | (203 | ) | | (139 | ) |
| Exit activity costs (recoveries), non-cash | 1,088 |
| | (1,931 | ) |
| Benefit of deferred income taxes | — |
| | (136 | ) |
| Other, net | 1,317 |
| | 1,411 |
|
| Changes in operating assets and liabilities, excluding the effects of acquisitions: | | | |
| Accounts receivable | (30,534 | ) | | (42,310 | ) |
| Inventories | (16,263 | ) | | 2,016 |
|
| Other current assets and other assets | 1,052 |
| | (2,002 | ) |
| Accounts payable | 9,237 |
| | 25,134 |
|
| Accrued expenses and other non-current liabilities | (479 | ) | | 7,503 |
|
| Net cash provided by operating activities | 38,210 |
| | 48,831 |
|
| Cash Flows from Investing Activities | | | |
| Cash paid for acquisitions, net of cash acquired | (5,241 | ) | | (18,494 | ) |
| Net proceeds from sale of property and equipment | 3,147 |
| | 12,935 |
|
| Purchases of property, plant, and equipment | (6,767 | ) | | (5,152 | ) |
| Net cash used in investing activities | (8,861 | ) | | (10,711 | ) |
| Cash Flows from Financing Activities | | | |
| Long-term debt payments | (400 | ) | | (400 | ) |
| Purchase of treasury stock at market prices | (6,549 | ) | | (1,982 | ) |
| Net proceeds from issuance of common stock | 1,343 |
| | 649 |
|
| Net cash used in financing activities | (5,606 | ) | | (1,733 | ) |
| Effect of exchange rate changes on cash | (610 | ) | | 1,468 |
|
| Net increase in cash and cash equivalents | 23,133 |
| | 37,855 |
|
| Cash and cash equivalents at beginning of year | 222,280 |
| | 170,177 |
|
| Cash and cash equivalents at end of period | $ | 245,413 |
| | $ | 208,032 |
|
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30, 2018 |
| | | As Reported In GAAP Statements | | Restructuring Charges | | Senior Leadership Transition Costs | | Acquisition Related Items | | Tax Reform | | Adjusted Financial Measures |
| Net Sales | | | | | | | | | | | | |
| Residential Products | | $ | 125,839 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 125,839 |
|
| Industrial & Infrastructure Products | | 56,033 |
| | — |
| | — |
| | — |
| | — |
| | 56,033 |
|
| Less Inter-Segment Sales | | (272 | ) | | — |
| | — |
| | — |
| | — |
| | (272 | ) |
| | | 55,761 |
| | — |
| | — |
| | — |
| | — |
| | 55,761 |
|
| Renewable Energy & Conservation | | 98,486 |
| | — |
| | — |
| | — |
| | — |
| | 98,486 |
|
| Consolidated sales | | 280,086 |
| | — |
|
| — |
| | — |
| | — |
| | 280,086 |
|
| | | | | | | | | | | | | |
| Income from operations | | | | | | | | | | | | |
| Residential Products | | 20,138 |
| | 1,877 |
| | — |
| | — |
| | — |
| | 22,015 |
|
| Industrial & Infrastructure Products | | 2,892 |
| | 1,775 |
| | — |
| | — |
| | — |
| | 4,667 |
|
| Renewable Energy & Conservation | | 15,072 |
| | (156 | ) | | — |
| | — |
| | — |
| | 14,916 |
|
| Segments Income | | 38,102 |
| | 3,496 |
| | — |
| | — |
| | — |
| | 41,598 |
|
| Unallocated corporate expense | | (8,698 | ) | | 164 |
| | 386 |
| | 471 |
| | — |
| | (7,677 | ) |
| Consolidated income from operations | | 29,404 |
| | 3,660 |
| | 386 |
| | 471 |
| | — |
| | 33,921 |
|
| | | | | | | | | | | | | |
| Interest expense | | 2,906 |
| | — |
| | — |
| | — |
| | — |
| | 2,906 |
|
| Other expense | | 522 |
| | — |
| | — |
| | — |
| | — |
| | 522 |
|
| Income before income taxes | | 25,976 |
| | 3,660 |
| | 386 |
| | 471 |
| | — |
| | 30,493 |
|
| Provision for income taxes | | 6,473 |
| | 904 |
| | 91 |
| | 113 |
| | (245 | ) | | 7,336 |
|
| Income from continuing operations | | $ | 19,503 |
| | $ | 2,756 |
| | $ | 295 |
| | $ | 358 |
| | $ | 245 |
| | $ | 23,157 |
|
| Income from continuing operations per share - diluted | | $ | 0.60 |
| | $ | 0.08 |
| | $ | 0.01 |
| | $ | 0.01 |
| | $ | 0.01 |
| | $ | 0.71 |
|
| | | | | | | | | | | | | |
| Operating margin | | | | | | | | | | | | |
| Residential Products | | 16.0 | % | | 1.5 | % | | — | % | | — | % | | — | % | | 17.5 | % |
| Industrial & Infrastructure Products | | 5.2 | % | | 3.2 | % | | — | % | | — | % | | — | % | | 8.4 | % |
| Renewable Energy & Conservation | | 15.3 | % | | (0.2 | )% | | — | % | | — | % | | — | % | | 15.1 | % |
| Segments Margin | | 13.6 | % | | 1.3 | % | | — | % | | — | % | | — | % | | 14.9 | % |
| Consolidated | | 10.5 | % | | 1.3 | % | | 0.1 | % | | 0.2 | % | | — | % | | 12.1 | % |
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
|
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30, 2017 |
| | | As Reported In GAAP Statements | | Acquisition & Restructuring Charges | | Senior Leadership Transition Costs | | Portfolio Management | | Adjusted Financial Measures |
| Net Sales | | | | | | | | | | |
| Residential Products | | $ | 129,501 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 129,501 |
|
| Industrial & Infrastructure Products | | 57,162 |
| | — |
| | — |
| | — |
| | 57,162 |
|
| Less Inter-Segment Sales | | (224 | ) | | — |
| | — |
| | — |
| | (224 | ) |
| | | 56,938 |
| | — |
| | — |
| | — |
| | 56,938 |
|
| Renewable Energy & Conservation | | 88,135 |
| | — |
| | — |
| | — |
| | 88,135 |
|
| Consolidated sales | | 274,574 |
| | — |
| | — |
| | — |
| | 274,574 |
|
| | | | | | | | | | | |
| Income from operations | | | | | | | | | | |
| Residential Products | | 23,764 |
| | 1,008 |
| | — |
| | — |
| | 24,772 |
|
| Industrial & Infrastructure Products | | 2,554 |
| | (15 | ) | | 260 |
| | 101 |
| | 2,900 |
|
| Renewable Energy & Conservation | | 11,549 |
| | 534 |
| | — |
| | (77 | ) | | 12,006 |
|
| Segments income | | 37,867 |
| | 1,527 |
| | 260 |
| | 24 |
| | 39,678 |
|
| Unallocated corporate expense | | (2,174 | ) | | 47 |
| | (762 | ) | | — |
| | (2,889 | ) |
| Consolidated income from operations | | 35,693 |
| | 1,574 |
| | (502 | ) | | 24 |
| | 36,789 |
|
| | | | | | | | | | | |
| Interest expense | | 3,486 |
| | — |
| | — |
| | — |
| | 3,486 |
|
| Other expense | | 404 |
| | — |
| | — |
| | — |
| | 404 |
|
| Income before income taxes | | 31,803 |
| | 1,574 |
| | (502 | ) | | 24 |
| | 32,899 |
|
| Provision for income taxes | | 11,184 |
| | 618 |
| | (183 | ) | | (267 | ) | | 11,352 |
|
| Income from continuing operations | | $ | 20,619 |
| | $ | 956 |
| | $ | (319 | ) | | $ | 291 |
| | $ | 21,547 |
|
| Income from continuing operations per share - diluted | | $ | 0.64 |
| | $ | 0.03 |
| | $ | (0.01 | ) | | $ | 0.01 |
| | $ | 0.67 |
|
| | | | | | | | | | | |
| Operating margin | | | | | | | | | | |
| Residential Products | | 18.4 | % | | 0.8 | % | | — | % | | — | % | | 19.1 | % |
| Industrial & Infrastructure Products | | 4.5 | % | | — | % | | 0.5 | % | | 0.2 | % | | 5.1 | % |
| Renewable Energy & Conservation | | 13.1 | % | | 0.6 | % | | — | % | | (0.1 | )% | | 13.6 | % |
| Segments margin | | 13.8 | % | | 0.6 | % | | 0.1 | % | | — | % | | 14.5 | % |
| Consolidated | | 13.0 | % | | 0.6 | % | | (0.2 | )% | | — | % | | 13.4 | % |
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended
September 30, 2018 |
| | | As Reported In GAAP Statements | | Restructuring Charges | | Senior Leadership Transition Costs | | Acquisition Related Items | | Tax Reform | | Adjusted Financial Measures |
| Net Sales | | | | | | | | | | | | |
| Residential Products | | $ | 360,915 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 360,915 |
|
| Industrial & Infrastructure Products | | 172,218 |
| | — |
| | — |
| | — |
| | — |
| | 172,218 |
|
| Less Inter-Segment Sales | | (861 | ) | | — |
| | — |
| | — |
| | — |
| | (861 | ) |
| | | 171,357 |
| | — |
| | — |
| | — |
| | — |
| | 171,357 |
|
| Renewable Energy & Conservation | | 229,187 |
| | — |
| | — |
| | — |
| | — |
| | 229,187 |
|
| Consolidated sales | | 761,459 |
| | — |
| | — |
| | — |
| | — |
| | 761,459 |
|
| | | | | | | | | | | | | |
| Income from operations | | | | | | | | | | | | |
| Residential Products | | 57,572 |
| | 1,682 |
| | — |
| | — |
| | — |
| | 59,254 |
|
| Industrial & Infrastructure Products | | 12,098 |
| | 1,262 |
| | — |
| | — |
| | — |
| | 13,360 |
|
| Renewable Energy & Conservation | | 28,690 |
| | (23 | ) | | 178 |
| | — |
| | — |
| | 28,845 |
|
| Segments Income | | 98,360 |
| | 2,921 |
| | 178 |
| | — |
| | — |
| | 101,459 |
|
| Unallocated corporate expense | | (22,839 | ) | | 431 |
| | 844 |
| | 471 |
| | — |
| | (21,093 | ) |
| Consolidated income from operations | | 75,521 |
| | 3,352 |
| | 1,022 |
| | 471 |
| | — |
| | 80,366 |
|
| | | | | | | | | | | | | |
| Interest expense | | 9,305 |
| | — |
| | — |
| | — |
| | — |
| | 9,305 |
|
| Other income | | (50 | ) | | — |
| | — |
| | — |
| | — |
| | (50 | ) |
| Income before income taxes | | 66,266 |
| | 3,352 |
| | 1,022 |
| | 471 |
| | — |
| | 71,111 |
|
| Provision for income taxes | | 15,574 |
| | 798 |
| | 264 |
| | 113 |
| | (177 | ) | | 16,572 |
|
| Income from continuing operations | | $ | 50,692 |
| | $ | 2,554 |
| | $ | 758 |
| | $ | 358 |
| | $ | 177 |
| | $ | 54,539 |
|
| Income from continuing operations per share – diluted | | $ | 1.56 |
| | $ | 0.08 |
| | $ | 0.02 |
| | $ | 0.01 |
| | $ | 0.01 |
| | $ | 1.68 |
|
| | | | | | | | | | | | | |
| Operating margin | | | | | | | | | | | | |
| Residential Products | | 16.0 | % | | 0.5 | % | | — | % | | — | % | | — | % | | 16.4 | % |
| Industrial & Infrastructure Products | | 7.1 | % | | 0.7 | % | | — | % | | — | % | | — | % | | 7.8 | % |
| Renewable Energy & Conservation | | 12.5 | % | | — | % | | 0.1 | % | | — | % | | — | % | | 12.6 | % |
| Segments Margin | | 12.9 | % | | 0.4 | % | | — | % | | — | % | | — | % | | 13.3 | % |
| Consolidated | | 9.9 | % | | 0.5 | % | | 0.1 | % | | 0.1 | % | | — | % | | 10.6 | % |
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
|
| | | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended
September 30, 2017 |
| | | As Reported In GAAP Statements | | Acquisition & Restructuring Charges | | Senior Leadership Transition Costs | | Portfolio Management | | Adjusted Financial Measures |
| Net Sales | | | | | | | | | | |
| Residential Products | | $ | 361,304 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 361,304 |
|
| Industrial & Infrastructure Products | | 165,806 |
| | — |
| | — |
| | — |
| | 165,806 |
|
| Less Inter-Segment Sales | | (994 | ) | | — |
| | — |
| | — |
| | (994 | ) |
| | | 164,812 |
| | — |
| | — |
| | — |
| | 164,812 |
|
| Renewable Energy & Conservation | | 202,690 |
| | — |
| | — |
| | — |
| | 202,690 |
|
| Consolidated sales | | 728,806 |
| | — |
| | — |
| | — |
| | 728,806 |
|
| | | | | | | | | | | |
| Income from operations | | | | | | | | | | |
| Residential Products | | 61,984 |
| | 1,253 |
| | — |
| | — |
| | 63,237 |
|
| Industrial & Infrastructure Products | | 5,914 |
| | (15 | ) | | 260 |
| | 482 |
| | 6,641 |
|
| Renewable Energy & Conservation | | 18,381 |
| | 534 |
| | 252 |
| | 2,342 |
| | 21,509 |
|
| Segments income | | 86,279 |
| | 1,772 |
| | 512 |
| | 2,824 |
| | 91,387 |
|
| Unallocated corporate expense | | (15,977 | ) | | 325 |
| | (342 | ) | | — |
| | (15,994 | ) |
| Consolidated income from operations | | 70,302 |
| | 2,097 |
| | 170 |
| | 2,824 |
| | 75,393 |
|
| | | | | | | | | | | |
| Interest expense | | 10,612 |
| | — |
| | — |
| | — |
| | 10,612 |
|
| Other expense | | 811 |
| | — |
| | — |
| | — |
| | 811 |
|
| Income before income taxes | | 58,879 |
| | 2,097 |
| | 170 |
| | 2,824 |
| | 63,970 |
|
| Provision for income taxes | | 21,090 |
| | 813 |
| | 69 |
| | (70 | ) | | 21,902 |
|
| Income from continuing operations | | $ | 37,789 |
| | $ | 1,284 |
| | $ | 101 |
| | $ | 2,894 |
| | $ | 42,068 |
|
| Income from continuing operations per share - diluted | | $ | 1.17 |
| | $ | 0.04 |
| | $ | — |
| | $ | 0.10 |
| | $ | 1.31 |
|
| | | | | | | | | | | |
| Operating margin | | | | | | | | | | |
| Residential Products | | 17.2 | % | | 0.3 | % | | — | % | | — | % | | 17.5 | % |
| Industrial & Infrastructure Products | | 3.6 | % | | — | % | | 0.2 | % | | 0.3 | % | | 4.0 | % |
| Renewable Energy & Conservation | | 9.1 | % | | 0.3 | % | | 0.1 | % | | 1.2 | % | | 10.6 | % |
| Segments margin | | 11.8 | % | | 0.2 | % | | 0.1 | % | | 0.4 | % | | 12.5 | % |
| Consolidated | | 9.6 | % | | 0.2 | % | | — | % | | 0.4 | % | | 10.3 | % |
