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, 2018 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Net sales $ — $ 960,142 $ 64,090 $ (21,860 ) $ 1,002,372 Cost of sales — 728,187 52,857 (21,032 ) 760,012 Gross profit — 231,955 11,233 (828 ) 242,360 Selling, general, and administrative expense 151 139,726 6,963 — 146,840 Intangible asset impairment — 615 937 — 1,552 (Loss) income from operations (151 ) 91,614 3,333 (828 ) 93,968 Interest expense (income) 13,609 (1,279 ) (266 ) — 12,064 Other expense (income) — 3,396 (1,437 ) — 1,959 (Loss) income before taxes (13,760 ) 89,497 5,036 (828 ) 79,945 (Benefit of) provision for income taxes (3,853 ) 18,544 1,445 — 16,136 Equity in earnings from subsidiaries 74,544 3,591 — (78,135 ) — Net income $ 64,637 $ 74,544 $ 3,591 $ (78,963 ) $ 63,809 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2017 (in thousands) Gibraltar Guarantor Non-Guarantor 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 STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Year ended December 31, 2018 Net income $ 64,637 $ 74,544 $ 3,591 $ (78,963 ) $ 63,809 Other comprehensive income: Foreign currency translation adjustment — — (3,241 ) — (3,241 ) Cumulative effect of accounting change (see Note 2) — (350 ) — — (350 ) Adjustment to pension and post-retirement benefit liability, net of tax — 723 — — 723 Other comprehensive income (loss) — 373 (3,241 ) — (2,868 ) Total comprehensive income $ 64,637 $ 74,917 $ 350 $ (78,963 ) $ 60,941 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 pension and post-retirement benefit liability, net of tax — 205 — — 205 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 pension and post-retirement benefit liability, net of tax — 750 — — 750 Other comprehensive income — 750 6,945 — 7,695 Total comprehensive income $ 32,998 $ 58,607 $ 10,644 $ (60,879 ) $ 41,370 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2018 (in thousands) Gibraltar Industries, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Current assets: Cash and cash equivalents $ — $ 262,716 $ 34,290 $ — $ 297,006 Accounts receivable, net — 132,841 7,442 — 140,283 Intercompany balances 1,183 2,439 (3,622 ) — — Inventories — 94,700 4,213 — 98,913 Other current assets 3,853 1,146 3,352 — 8,351 Total current assets 5,036 493,842 45,675 — 544,553 Property, plant, and equipment, net — 93,034 2,796 — 95,830 Goodwill — 301,309 22,362 — 323,671 Acquired intangibles — 89,556 6,819 — 96,375 Other assets — 1,047 169 — 1,216 Investment in subsidiaries 806,155 62,722 — (868,877 ) — $ 811,191 $ 1,041,510 $ 77,821 $ (868,877 ) $ 1,061,645 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ — $ 73,934 $ 5,202 $ — $ 79,136 Accrued expenses 5,493 77,282 4,299 — 87,074 Billings in excess of cost — 13,864 3,993 — 17,857 Current maturities of long-term debt 209,005 (200 ) — — 208,805 Total current liabilities 214,498 164,880 13,494 — 392,872 Long-term debt — 1,600 — — 1,600 Deferred income taxes — 34,925 1,605 — 36,530 Other non-current liabilities — 33,950 — — 33,950 Shareholders’ equity 596,693 806,155 62,722 (868,877 ) 596,693 $ 811,191 $ 1,041,510 $ 77,821 $ (868,877 ) $ 1,061,645 GIBRALTAR INDUSTRIES, INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2017 (in thousands) Gibraltar Guarantor Non-Guarantor 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. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS DECEMBER 31, 2018 (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 $ (13,252 ) $ 103,543 $ 7,254 $ — $ 97,545 Cash Flows from Investing Activities Purchases of property, plant, and equipment — (12,054 ) (403 ) — (12,457 ) Acquisitions, net of cash acquired — (5,241 ) — — (5,241 ) Net proceeds from sale of property and equipment — 3,063 86 — 3,149 Net cash used in investing activities — (14,232 ) (317 ) — (14,549 ) Cash Flows from Financing Activities Long-term debt payments — (400 ) — — (400 ) Purchase of treasury stock at market prices (7,165 ) — — — (7,165 ) Intercompany financing 19,032 (18,799 ) (233 ) — — Net proceeds from issuance of common stock 1,385 — — — 1,385 Net cash provided by (used in) financing activities 13,252 (19,199 ) (233 ) — (6,180 ) Effect of exchange rate changes on cash — — (2,090 ) — (2,090 ) Net increase in cash and cash equivalents — 70,112 4,614 — 74,726 Cash and cash equivalents at beginning of year — 192,604 29,676 — 222,280 Cash and cash equivalents at end of year $ — $ 262,716 $ 34,290 $ — $ 297,006 GIBRALTAR INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS DECEMBER 31, 2017 (in thousands) Gibraltar Guarantor Non-Guarantor 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 |