ROCK - Earnings call transcript Q4 2017 | Gibraltar Industries, Inc.

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Operator

Good day ladies and gentlemen. Welcome to the Gibraltar industries Fourth Quarter 2017 Earnings Conference Call. Today's call is being recorded and webcast. My name is Kevin and I'll be your coordinator today. At this time all participants are in a listen-only mode. question-and-answer the a conference of conducting call. be session end towards the We'll turn to call the will the I now over Relations Sharon company's firm David Merrill Associates. Investor from Calusdian proceed. Please

David Calusdian

joining everyone us. thank morning Good you and for

press If you a investor find was received gibraltarX.com. have info can section this you in Gibraltar release Web the morning site copy issued it that of not earnings the of the

or Gibraltar financial These company's these X slides turn company's referring about During are results. also to will results presentations SEC presentation you fourth differ statements remarks advises quarter earnings company's actual summarize or The to through to materially presentation. contains can prepared the performance. which site. the to implied slide its company's be read the be detailed also forward-looking in Please may posted accessed factors release by the the company's events, in today slides filings, risk statements. future results site. expressed to and press forward-looking The performance from management Web anticipated Web the Slide

to earnings GAAP Gibraltar's measures this Executive adjusted release I'll Additionally, On slides. been contain and At point, this this release Frank turn is Frank our over Officer, have and please turn earnings to and to appended the to financial Officer, Heard; Slide Murphy. reconciliations Tim measures; call and adjusted financial Chief the Financial morning morning X. press of remarks Gibraltar's call Chief

Frank Heard

up another for we as XX% top we fourth from progress elements exceeded a guidance $X.XX revenues a year us our morning of of $X.XX GAAP David. ago. meaningful call and joining year in both year-over-year up today. our reported bottom-line everyone a With EPS the Gibraltar and closed of fourth achieved we transformation. loss Financially, our Good strong in and quarter; on achieved all thank for you we quarter, Thanks successful

reform, in XX% benefit conservation a market product later the which renewable we a quarter and our in XX% QX from in will a this tax call. in increase include From sales earnings and Our segment. increase achieved our residential $X.XX end we segment energy a discuss perspective,

now annual Our demonstrate capital to recorded I'll With to of businesses benefit management I'll upside We're return a indicating results. that We're in Through growth of excellence, the shareholders. GAAP upon divestiture tremendous a strategic of an innovation ongoing update a excluding turned our EPS this later XX% been bar reform the strategy segment pillars of GAAP grading financial of transformation call. each of X.X% over to one call potential. a the growth have QX our $X.XX of we've we've operationally and and improved excluding Since impact XXXX, transformation our or the years returns progress portfolio segment right narrowed the in and the adjusted non-GAAP that, a the acquisitions, basis built $X.XX. of years industrial greater few Tim tax business we these EPS sustainable in modest in in for reported provide we from GAAP on the that adjusted and full much strategic platform journey the basis a to turn earnings to now on our have to moves and increasing review markets invested XX% year financially. both for the corner. with EPS that year $X.XX and the organic and increase delta an operational five making results increase XX.X%. infrastructure XXXX of particularly one-time to between made XXXX $X.XX has the year pleased $X.XX EPS X% and XXXX to we've significantly that quarter our increase signaling generate our portfolio into an from loss on has over past to on EPS three On

Tim Murphy

you, everyone. Thank and morning Frank, good

of Slide We with revenues renewable in consolidated guidance. reported the to offset our solid base to both an experienced quarter On divestitures, residential our demand a actions revenues segment growth. in industrial year challenging presentation due excluding were and results fourth results. in Let's management titled solid year-over-year exceeding prior up comparisons segment conservation Strong infrastructure in our basis XXXX. in four our apples-to-apples and portfolio move and XX% energy beginning and each products, earnings segments

in The income moment lower the residential on tax variable earnings reform. benefited legislation benefit conservation will Tax expenses a higher point and simplification increase a or Job and has Slide operating margin and compensation new Please basis from XXX tax material and pre-tax impact our Energy substantially domestically. million as share to We segment, of consolidated positive take Noble of from have the reduced $XX.X we in our corporate a in $X.XX initiatives XX/XX our impact. per all bottom-line, on with five titled the to adjusted to volumes On review Cuts a due tax impact Act our Gibraltar, turn reform results. resulted generate

offset in industrial operations on business the Over million settle the to of to solar in Europe In residential management $X.X past million from will the years, Act due we two we our resulting deferred dream the in the foreign actions the of partially repatriation taxes, related charge XX, portfolio our Germany. recognize XXXX, reduced earnings. of at rate $XX.X our by we December a signing our income benefit racking exited which

$X.XX we're tax or which our to XX% to XXXX, In result, effective tax rate share our related benefit flows. and reporting approximately reform. quarter $XX.X earnings fourth we million in of the expect a will cash per a As benefit

XXX provide our [crunch] we tax to equal our XXXX before effective as rate forma appendix of The if adjusted the points XXXX impact to and EPS, is points expected as rate, For the comparable XXXX basis pro the these slides the for is reconciliation below in move throughout rate be rate the expected XXXX earnings included reform. [ph] the year. our XXXX to of GAAP for

each service of our package Now in strong To electronic starting by segment. driven segments Top-line enhanced the X, with Slide sales was centralized Residential Products building and this mail to benefit of let's levels reporting space. resulting and segment continue growth lockers. locker review increased the products, drive which three solutions and from partnerships strengthen secure systems for convenience safe at your [indiscernible] and in electronic market from the XX/XX Increasing to package initiatives, activity sales our continue ecommerce multifamily related share. demand

the income improvement. as slightly benefit operating to Adjusted the sales strong as contributed margins product decreased of operating bottom-line the On well to due XX/XX mix. initiatives segments

that solutions expected bottom segment. impact market are traction. The impact Turning overall sales. perimeter and same an coming apples-to-apples our and backlog solely down divestiture over revenues this quarter grading revenues X, the lower and basis new were X%. business XX% Infrastructure excluding to of Industrial we to activity Slide the the continuing our In time, our growth year fourth growing continue represented gain the the sign base we're encouraged to see products the prior sales. due domestic bar of to as which off fourth segment, the up beginning quarter security by to in On were infrastructure XXXX At

expect will efficiencies Bottom-line expect in growth to gain throughout margins from primarily as We to rebound increases. activity and XXXX operational improve we projects and accelerate the items further of reflects fourth XX/XX that in these security to traction the XXXX. products continue quarter segment infrastructure

in business. per offset demand than the panels a early $X drop for Now segment, of from conservation watt domestic gigawatts half drove market will than We bottom-line for impact is increase Slide the the X, expectations. the from more XXXX. that solar of year the XXXX, margins price panel but will XX% per pricing strong to the other On quarter and were racking to turning in of XX, in $X.XX in President four on solar renewable XX% of years to level the imported a be by over The exit Research which energy to and estimates European and million excess in and affected per costs revenues would tariff adjusted XX% price GTM prices next than off. range is in seen is the material the line quarter. higher operating over segment take January watt the XXXX, latter X% which by That higher tariff the approved for actions with cent $X.XX mid-XX lower operation decline XXXX. scheduled X.X central the in prices last that mid-XX our

solar projects advantage rate trackers expect nominal this of in, a our our tariff nature and our the development twice business the is market impact reduce continued growth in due manufacturing value of our racking provides to the engineering, projects size design, of to will We we to the participate distinct on for in installation. have solution under [indiscernible] fixed focus currently sales costs market helping overall products our commercial we segment integrated smaller structural the the cycling of and serve. proposition of because tilt solar than and scale solar megawatts out more of an community XX in of The and

this X competitive customer close value business proposition. in capturing will confident to turn opportunity. relationships to advantage the to the provide distinct a Slide continue our combination We Please of are new due

benefit the I'll technology although at acquisition EBITDA Cash to and call that strategy increased XX $XX we'll million be $XXX to turn leverage on $XXX million be targets million performance continue pillars million to We back $XXX and on Frank? acquisitions December at value focused Frank. We this for $XX can liquidity. XXXX. material the end driving standpoint. us to end creation. remain of between four of Slide our smaller execute our the turn consider from well-positioned to XXXX the At that million to Please will with high low point, with

Frank Heard

XX/XX costs across we implement our made Tim. basis offering we market on demand operational replenishment progress on reducing great value complete. and projects rate pillar, will focused XXXX, improvement. first we you, In operating operating and And excellence, the XXXX, of initiatives key in projects adjusting Thank product improve characteristics our to points XXX of contributed which In in-lining strategy. through complexity, margin our when creation organization. XX/XX In simplifying four-pillar QX, expect

advance and our from capital our to recap XX.X% performance To the We our the to and projects to has growing assets decreased increasing XX%. our XX%, or XX% XX% by reduced while million. sales, have all million $XXX $XXX to million fixed XX or shipping $XX percent we XX% our of from customers since strategy outsourcing latter decreased on-time our been by $XX across initiatives XXXX, expect B from invested projects, launched million benefiting our these Inventories to-date have to in conjunction business. XXXX. we our In average for adjusted with progress half our products in-lining start expect from

share projects, pricing service Tim As derived markets across our we're the a a products gaining in and combination of result, our we alignment levels customers from market XX/XX portfolio. better building as with earlier referenced the legacy regained business trust from our of increased

through drive value. development use strategies. that proposition time value Our and customers and be organic pain ultimately next in knowledge to understand that our trade fully step growth product reduce develop that focused with delivering selling innovative and their new more is to more spending marketing to pain products We'll points

our their from of goal our the projects to attaching segment, market. expertise market whole enter strengthening systems year. is XXXX the momentum. In innovative to have focused this A businesses developing pillar the our leader. Innovative capabilities. used of sales express we continues protection or existing X% innovation product developed existing XXXX. on glass with from products patent or and by number now This next in product way across and We'll historic the as in doubled X% gain to where our we launching our acquired share up meeting of expand RBI installations leads throughout residential locker In in to to with products position to existing me installed Our racking metal total greenhouse with of to solar their X% market lines. markets is almost internally our approach our the represent market example XXXX, focus for products products through target manufacturing great our grow our new

our our to With acquisition storage and of traction solution gain commercial to Package XXXX. our the for market. residential that Concierge, expect security targeting types multifamily secured in solutions to we're continues is contribute and of safe the and supply expected to grow segment, new In Industrial building top-line and properties growth continue recent to perimeter

product high technology solar infrastructure closed to value improved we larger increasing our renewable of expect exciting segments an In tracking energy a solution expectations a tilt that protect is and is will industrial and conservation Our goal allows new adjacent fixed demand XXXX and in as industry participate and that relative this physical capitalize to accelerate standards segment, to for by our our to assets with on handful continues us our our over profitability. work disruptive great towards space to and solutions installation meet customers. the solution. We set out turn all

ourselves all targets. with As us Tim new acquisition we in management combination will pillar before. of our markets to continuous the than value strategy a process improve We potential innovation from and rate on most to platforms a lines, be that are referenced to allocate time part Currently execute attractive will remain financial impact higher patient management the excellent view Gibraltar's supporting any we the an This today. businesses is we tariffs. of of provides solution earlier, ever only portfolio performance. return resources position in to portfolio investments and our to in evaluating Portfolio look on our this end allow with unique leadership ability the with to We in believe us next customers and focus the placed RBIs of as proposition, generate long-term as best navigate our and where strategy an we product important highest businesses.

Gibraltar's fourth consider through we is acquisitions, transformation. growth which Our important an part pillar of

an executive us shareholders. sustainable leadership as just prospecting right to the we continues to and larger in vetting have I more a Gibraltar that operating portion invest one only But in sustainable value and large its team consider of long-term Our targets making time allows to improved our acquisition, luxury to us and the will energy process. gets income contribute referenced, of

value supported prospects attractive or patented unique We by end propositions continue search for to and products M&A technologies. markets with

perimeter target solutions, our residential turn we've four-pillar launched security Please both renewable the for parcel building creation progress and Our financially. M&A post and progress. infrastructure, operationally continued markets of and products, we XX, conservation. Slide tremendous continue to energy made be end value and to at XXXX, strategy Since

top a result we And and our greatly shareholders to growth once leads year, our of invested then to bottom-line narrowed acquisitions, growth. EPS EPS increased ability to delta GAAP has seek management have the implementation significantly In Our now We EPS. attractive enter and more We drive tied optimism we're and increase the efficient non-GAAP between product portfolio about projects we GAAP end guidance. years value with markets sustain organic we and organic attractive XX, were can at of return leverage; plan generate was value new as the well sustainable the expect capital. net development new flow we capital. our limited growth of on and to Today for generated rate predictable acceleration and a cash generate continued our increased me and of levels. return profits year shareholders ago the and with a and added balance more sheet XXXX very more Slide through we At negative rate as through markets. Three to of again This M&A. the healthy use have initiatives, offer both now we ahead. higher close simplification end to breakeven XX/XX of acquisitions have as XXXX

material the that Our markets current tariff of discussed PV knowledge various continued with could and items we guidance along the the panels of on that costs. reflects our Tim including impact serve volatility modules

XXXX, we of $X year a sales in excess For expect full billion.

share tax GAAP or $X.XX reform between $X.XX $X.XX. with basis a on $X.XX $X.XX between compared to basis adjusted $X.XX We an on per of the EPS from expect impact $X.XX up excluding diluted and GAAP

our expect amounts year recently rate, the would expect an quarter basis. between For EPS per $XXX have XXXX earlier. successful and potential. from $X.XX respectfully. and $X.XX Tim greater or been strategy, GAAP a another $X.XX forward platform million of build to our we We upside of adjusted we a the benefit up closing expect QX consolidated EPS that $X.XX look markets $X.XX $X.XX have $X.XX In with four-pillar have XXXX. execution target customers and XXXX and of adjusted share as on described team benefit we first At portfolio significantly now we'll up members another XXXX, a adjusted between would diluted year on you commitment have open sustainable growth for GAAP tax GAAP and reform success and contributions. any their up have. we questions With first and $XXX ongoing call this building quarter that and from EPS of may our XXXX from the the continued $X.XX and Gibraltar revenues for full for been value for These shareholders and million the and reflect between and the tax long-term our expected all for And and point, thank ongoing enacted

Operator

will Our from question-and-answer proceed Thank is Instructions] question. first Moore now Securities. And [Operator be from a question conducting Daniel session. Please with your you. coming CJS

Daniel Moore

for Thanks morning. taking Good question. the

Frank Heard

How Dan. you doing? are morning, Good

Daniel Moore

color Tim a wanted to the do your start kind the of different in first you little digit Frank. low start the even year lighter the of expect a follow-up. not half? guess or throughout any in to then for growth And quick basis maybe implies segments? in XXXX. And growth mid terms differentials Good a that directionally but sort expected point, of to guidance the two, with when rates fairly just out be for to single growth I outlook

Tim Murphy

Dan, that our seasonal follows normal growth the would probably say I pattern.

obviously be higher quarter, So through fourth the you'd than to second first. quarter expect third

the so in all segments that far across range. they're And

Daniel Moore

it. Got

to revenue of seasonality the of outliers there typical major the relates year? as actual it in rest so terms dollars no So and

Frank Heard

Correct. Yes, Dan.

to year out. will normalized the solid point have reference be first not events we will really any because XXXX prior think year were have be I onetime do XXXX that pretty be

first quarter and large. to periods and [indiscernible] we saw even first don't any expect by will in what we So think quarter and and seasonality shifting I great pretty comparable be XXXX

shown we've expect. balance the year what what the slowly in modest So time is single-digit over through growth of the we about improving of course

Daniel Moore

opportunity this maybe and foothold? Got meaningful more M&A and traction gaining and is to Frank and you Remind us a it. are and market both large your at gears how via Shifting internally update in confident of that terms us security. efforts getting perimeter stage how just

Frank Heard

higher and will maybe and pipeline. rates innovative of it manageable Tim in I in of businesses sort a is business intangibles. start certainly bit assets sheets We've will market. of high talk I fixed market in you that terms profile. see margin little of with the balance rolling and drive let segment that terms the the between within products that in $X And some backlog participate opportunity a that return the around about But that billion seen balance of

not So around aspect that it's and already both utilized we the we that We think gain and that's and I've beginning can meaningful local an attractive barrier share in in are today, some we imports. amount to States the U.S. and today new said the in conductive in than that of and leveraged assets with manufacturing [indiscernible] the have manifest market market. itself. manufacturing of and develop We as business security different technologies but what's the think before, competing against non-conductive, side a can we do material under business products be do are that fencing,

dedicated Just around new and team a ago week -- a half with products. fencing the these and show week or a

we've that's shows and our users some into the show in Tim the really participating Year. in actually starting With New pipeline to going reactions end and positive up got

Tim Murphy

Yes.

bids started were little last the us, was in are when together this and that we market starting space. there year, other So very front to of just come this sales to our time than really

through so funnel farther that sort open funnel is that greater. past whenever significantly I along proportionately. goes And year bids And now and that of mean we're is work up greater to

funnel backlog of we for And pretty sort know that of up projects significantly security continues to fill. is year-over-year So the products.

but still encouraged, it's days. So early we are

Frank Heard

to to the a we we pipeline's side. point see growing we deliver had supply we to that not larger. on year's or Gibraltar's starting large And feet development running at under if jobs We get is way. profitably those we're going a really on And that in has it now the yet I rebuilt. work market and to to stage, to to the a bringing chain validate of we starting to exist users to the And profitable Dan, to walk. win resonating opportunity We've what got be we've is some this and a and $X going material our and But basis But, started crawl, Tim's start start space. going market of we're just a We're developing XXXX, that, over up think to and building that way to it's to in We've growth were brand contribute material teams billion evidence to organizing conclude that research products market. and crawl think become brand. there's And and certainly to and worth walk, really to and to we're directly them. done make adjacent we on long-term it product think and see with owners we're test that needs on run, it's can property validated

Daniel Moore

there forma Perfect. how revenue XXXX of -- how jump analogy. the in I what And decelerating, back. is beyond? pro and use But that do steady sort we lastly Concierge's that Package of gaining Are percentage accelerating, view the how I'll won't postal is and and do with solid business growth, you marketplace and traction? Parcel baseball you

Tim Murphy

of of with nominal very pace seems a sort in -- a expectations well expectations demand. growing is It market rate. significantly small that a revenue So lot our at there's but with it's that's that to line new brand faster and

rates. delivering rates, very pretty have we high growth So, and expectations growth they've been high

Daniel Moore

for again Thank it. the color. you, Got

Tim Murphy

Sure.

Operator

you. Thank

from Capital Zener next from Our Ken coming today Markets. is KeyBanc question

now is live. line Your

Ken Zener

gentlemen. morning Good

Frank Heard

Good morning, Ken.

Ken Zener

guys the we're in I believe are going has of Can cadence which through visibility. only because the the talk this -- the And impact tariffs that XX tariffs? realizing and in -- if you have -- of days of roughly us the could in to front cadence in you in the we XXXX of you the you could talk are revenue business the of by the that see XXXX see year, in can the that the we last just the call solar cadence seasonality top-line half, margin so I business just seasonality through margins traction. part the XXXX, now terms the you running X% we'll think In impacted business the back half understand tariffs new obviously

Frank Heard

I'll and in Tim Yes. both topics. start I'll on jump let

whether relative in time summer normal investment in to distribution a of the the in building or solar credits skewed States the the view a same the my can't we had rack histogram in think entered kind continental and throughout you of the perspective you're winter solar is of season. our of it still do we the And hasn't my do the market coming normalized from it the in yet I in building on tax that because can partway time. participation degree house, when a out. and United the at you end day, it you're building view off through long-term seasonality XXXX, In in

bit. has eventually to of over actually incentive as in to it building tax of argue over for being potentially with a per an the tariffs investment to to threatened brought normal going six a X, onetime out years less some credits credit little created completely tax that some My be season And missing X then and investment to period all over shifted that's to we're degree normalizes be out and taken again the a demand. come these shifting degree is time. what's going could of becomes tariff months one what time the off, So normalize issues next which became X similar demand view versus as of off

of that our to So what is long-term view me it.

going similar see I revenue we what time to a throughout similar XXXX, going this to see and cadence think we our year operating and it's a will that point just from the we that kind of And perspective we're really is in on we're is what obviously in in through what saw in XXXX. will quarters at income a saw believe is XXXX, in the we leverage see we margins. volume what belief what distribution -- and flow impact to XXXX then -- have

come bidding So orders, activity, think in it's point the versus that The is is, in the into not could down, XXXX of first at of to the in one buy if future up quarter now booked We pipeline, prior in actually same, then first. had the that I don't you -- point happened cadence XXXX see think not is, terms same one into the evidence argue this of that. I fourth terms reason we're but came issue maybe sticking some have quarter and our year. in theory to some out what the in at

future the point, something going don't It's yet. to window yet. quite So in -- to not not it's our we there's would your That earlier be day XXX understand in if suggest different. it's in

Tim So to to don't I you know add want that. something if

Tim Murphy

No.

I comprehensive. was that think that I think was -- pretty

Ken Zener

gentlemen. Thank you,

Frank Heard

Ken. He that isn't generous normally

Ken Zener

Thank it. appreciate I Oh, you.

Frank Heard

are welcome. You

Operator

you. Thank

today Our Liptak next Securities. Seaport from Global is question coming Walter from

line now Your live. is

Walter Liptak

Hi. Thanks. Good morning guys.

Frank Heard

Walter. Good you are doing? morning, How

Walter Liptak

the maybe help it XXXX profits could volume looks maybe rolling high Won't $XX me to $X looks XX%. of operating rate are you're about to costs leverage given if headwinds low X% profit page, -- looking just guidance things that to think price X% just good that then, that a us XX/XX the the ask be little guiding of or a things positive at bit because through million up you that -- revenue might then And growth at million like some And things X% cost and the to other benefits? level, guide. kind operating I wonder

Frank Heard

Yes.

in jump the I'm to on Just going and Tim let basis. open up segment

that that or tariff of activities others, people for this. take. to going probably are we've for ourselves than to think everything our I an is by it's on We those business competitors to the our are costs thing the No demonstrated a and be we'll businesses decisions end be recapture ability And in across just certainly steel that as different ultimately going all that. may that industrial have is, about all we've to we thing but to not any think price positive that at we within affected captured outcome made. our of think that and positioning one portfolio we'll President our may like be the impact of long-term it's our through I various in those because stretches variables businesses navigate, themselves think day, the product are have something any

in I think -- it. income that our there's a being is maybe aspect year-over-year to of underlying view aspect probably of underlying conservative if terms that somewhat the we're probably operating the that's

grow past would rest positioned better on input think part we question, than a terms in issues. We to I say profitably than I basis negatives in were ago that we that your material segmented were we're of of years once think past. you three the I have would -- raw get pluses the than the other more we concerns the of share

Tim? So,

Tim Murphy

uncertainty is up. -- think we've material I that cost Frank around market certainly cost the got it, about mentioned, so as material Walter, there's

So customers that. low harvested in We've line this over I of work line so hanging pricing security We've the fruit of some been carry most XX/XX, say around would carryover has to to factory there's some with in the got rearrange some got costs. year this the most benefit much that year to where the come MRD after really will latter but half doesn't completed. or work that reline until floors, of in our the is do of we and we work year of

I that guidance took everything the So account on our sort and think in together. of we into going marketplace

Frank Heard

-- ventilations on I existing the our years really or or related new expect at didn't be on some results product with a working quite in parcel think in we products and space. our higher we over we going space delivery organic is in with what to and products new really the be and ago, organizations growth of starting in new had many three going we security existing to lot tracker's either thing weren't perimeter we it or There the are a the space the other XXXX the of I to beginning and markets see to in and Two a side and traction is material has routes Yes. contributions And area development revenue are gain and opportunities whether product that years this new honest products, Today, margins. positive the some inherited we material existing pursuing the and some new think past forward. have above them think financial into have customers of have to lot. impact projects we levels that we

of that we the going to be we've doing counteract have if But, long you're stand you enough think have is I you absence time got And past. that. think I innovation. doing new grow now any we that and organically think still important something I M&A, something that's So in can the think from to something, you didn't I eventually on an in shrink

Walter Liptak

If you the to revenue of new organic X%? have from products some in growth X% that

Tim Murphy

Yes.

Frank Heard

We do.

Walter Liptak

price, could R&D? organic for X% initiatives what's you what's if market, what's from out in Maybe, the us to break X%

Tim Murphy

a in to we are lines and It's that CLS, continue X% to a X% and through each product some little business. different project. trim it's blend a bit PLS There little where that bit to our go

X% break in early it's five into to So, to X% segments. the year

Walter Liptak

Okay. Fair enough.

so first question, that the and the to Like can quantify conservative of you what are you being cost back inflation raw material, dollars. was in steel negative sounds the is it guidance? millions that's the on if like Going -- the impact

Tim Murphy

know don't impact. we necessarily I a lot that of negative have

you around to cold if there's in just and short-term. think the end the There from I XX around XXX. aluminum to steel happen markets some the memo, what's what in opportunities so marijuana can in next uncertainty with American now of uncertainty -- that days going do the look is

that view fourth you activity believe that don't that shouldn't saw cautious. so -- Frank mentioned, [indiscernible] some given is the going the So that impact, our quarter to We of just we but general of year. see this activity an look have but of today weren't going initial like to will is later much we

Frank Heard

year-over-year. import, unit the raw material the growing same assuming to specifically think I volume

it Our listen and lot of process we basis be think do try in fact materials would chain out the then announced takes when some what businesses to may for XX much steel take contracts not run break a increases the When a it take an the basis do will side. in we have raw that it if and we on -- on How effect time is effect. around -- when through aluminum our quarterly inventory annualized a our we side it or resins kind of price research of and that number fixed terms will XXX on we days. it's channels whether or have? to the Once it gets on on supply on

any there's of to X% are others percent an Some negotiated. are or variance X% or automatic tied plus raw minus material

kind through that So expectation at we real, a is a look those. we we pick of process that is our real number timing then pick And think is we in go think that this December. We year always price, customers place to remain recover at scenario. our land to everybody but calendar make not has but is unfortunately same sure our think only January the competitive in

maybe basis annualized years. over get X there we but an calendar on get So may we

timing end customers. terms recovery inputs. year it's about to It's that the of about on the conservative order calendar in be little versus our various count of into bit hedges recovery didn't we and back raw doesn't that's our a where in dollars the So fit current actual material natural the

So…

Walter Liptak

guys. Thanks enough. Fair right. All Okay.

Frank Heard

Yes.

Operator

Thank is Instructions] you. Meikle from AMPACT Our Brad question Research. [Operator from coming next

line Your now live. is

Brad Meikle

Good Hi. morning.

Frank Heard

Brad. Good morning,

Brad Meikle

things, to November. on so hard-rolled steel steel the side of since I in the Just XX% clarify is up coils guess

-- steel the QX? the you're of impact like half some assumption the assuming of year. of the that And you looks toward costs second are on in what's So

Tim Murphy

to and actions that what see coming forecasts we down tariff and that flat other costs is we offset. then We somewhat -- we've forecast would and to can moving Brad looking been flat suggest pretty it had dependent take steel we increasing and at on can look at

Frank Heard

Yes.

took across the going do place area board historically across a full I people that prior value And this whatever and a were chain in think good today it pretty corporate our and forecast in forward. out. job they year for supply generally I think

is relative material steel goods part unknown ramp as We year a to but going that's it that's the curve of raw current. now becomes of that's year. prior terms forecast relates there that of in pretty cost actually purchasing. in not our up think two know drives to to thirds we're for land, tough I one the change We're a we right ruling if sold where to the prices newly unique special think as to this behind

So a guidance. think from shape to in unless we're we I good get forecasting perspective surprised, our relative

Brad Meikle

What year mostly you to this the the said flowed you really P&L. through assumption or would imagine inventory is has probably increase so two of flat versus of beginning months middle XX% since your Tim, and I in steel of impact flat hasn't XXXX or the of seen your had terms -- we've three

Frank Heard

I born business pretty six dropping process. our started the penny Actually XXXX, in current. a averaged inventory. between here Brad, XX/XX through XX% look inventories When and somewhere We're we in at if months you

living imports raw So off today. steel not we're material low

Brad Meikle

back -- the or the spot for you're down? assuming spot So so current you're that assuming prices your guidance comes is annual

Tim Murphy

steel guidance. a in assuming We're elevated relatively our price of

four at reflected certainly last As we to that's the in point in our -- months pricing your guidance. looked

Brad Meikle

What or? elevated XX% meaning like relatively is

Tim Murphy

quoted reflecting I market I think that looking steel in a guidance. we're increase our four XX% the steel. months cost mean in last same at being and the you in

Brad Meikle

your color you how renewables you impacted And assumption business say price between has solar case for and can greenhouses solar on increase the module a was in tune the give and many watt of split year or XXXX. Okay. Thanks. $X.XX this change of did on the the And costs. because the is on in the breakdown, obviously megawatts business what to us XXX an terms in $X.XX developers what little a

pressure tracking fixed and these So the seeing are tilt year? on translate you up into pricing factors much that how this

Tim Murphy

and two-thirds there fourth normally fourth had more and in for probably We're me on another quarter. than was that Let is the the about businesses greenhouse little That question, one of piece solar your piece quarter, There with Brad. one-third strong demand. a start is both was pretty bit that?

Frank Heard

to don't we competitive the we us think unique commentary think of point the is up of say of segments I why stakeholders obvious share And the creating perspectives don't to enemy over own segment Brad or I become the a participate and us report various questions that we tariff our the navigate some solar worst color issue I explain want of businesses reasons Tim within around for to the to But the business can get one terms pressures can in. about think yellow things some through of give XXXX. circumstance it's your we course specifics and that the and because aspect your the we is and to financial on that would consolidated talk we in for call. competitive the

a we're bit do just can little are with we the going but in limit we people a and that going to put we'll best our to little So to in ensure tougher spot. -- don't ourselves we provide mind, to information, a operational bit

Brad Meikle

Okay.

Tim Murphy

that in bid. I each job market to So, I it's what is today offer our end it that pin offer than value think, competitive know the Brad, the proposition segment we competitive always our forecasts. customers just one into racks, pricing we of with we have benefits take serve remains we -- smaller And the environment, separately market is we have another is, the market. that more of we look the of

generally for that forecast install the XXXX. not flex there's there's and So our price per that through increased price would But watt say disclose, in competitive given not space a that price so list a or we don't I watts for we purposes. --

Frank Heard

skilled types on And of meaningful more of jobs aspect larger think we tilt tractor. the much compete to where Yes. some larger solar now the in install is our community engineer I fixed than scale is, those small that scale smaller on and both fixed other scale value bases, design of manufacture the is proposition the tilt and

of and around as the cost not it's that a issue get. also and pricing our So the the of percentage customers less of of they tariffs of the to impact a panels is type work sensitive great because pricing

we've XXXX that's translated of being into translated They over our that is bid into they activity gone sat to the some for and of in back first forward in -- period XXXX business that a business back going book XXXX. remain up confident, in development we remain our same the on side. customers of all busy with the unit, So quarter largest

research in and large than short-term a on So bigger that assume party takes independent probably activity of of seeing. puts will have impact meaningful we scale and would that's maybe were tracker based I we're on year-over-year in the around if some what terms third tariffs now the more there

in doing of all guidance. we we've work and taken the So the that and taken to to customer that think all we've level down we segment incorporated our to some try it in people validate the are current our that

Brad Meikle

Okay.

I'd bit Just and last was call the I for I asked higher. to year a essentially fixed flat that's the estimates conference XXXX XX%, your expectation think this year-on-year solar And the on think if market. about in XX% you're the tilt summarize, down yours my guiding revenues case, and so

largest on are and business. color share, us could percentage of do you is there? market you customer your have and in your So gaining many XX% What customer your business the a little give you just how renewables customers concentration

Frank Heard

that we Brad, addresses. customer But give think buy we are information I not down the to the going pieces. of to competitive names type into do and

And lows the developing as we the trend. megawatts of to the that from competitive what maintenance participate default we the Where very it get and companies that The natural serve. compare the trackers that continues be to within value wind to at put relative not the in overall, and different what we you market solar, larger with those it ongoing potential area tracker cost slow but in tilt and stated up that the you scale into output, theory, not also fixed is side context community specific. and business power where space. out compare build And isn't it we the our we something there into snow about when Sun, in unique with to when it's see don't don't natural is small In system, participate terms other we of our we a the see we two to may average of done we're can to we got but XX think costs. value that larger though and community that fixed it look even we who in and an system understand our projects. operating partners, we is aspect isn't market before of systems do of we solar don't we going to our see the to The we've of tracker market tilt develop lows. relative with we we for cost buy view and math migration scale -- where it understanding that customers we've under what do in a Our cost for the Determine there and geographically the tracker. in scale that but a scale, against do large

bid drop XXXX participate because we XX% that related a We solid translates activity our see it. into We doesn't we forward rising that that So in core don't into business backlog think going in business. a of it for don't space. -- see translate don't early and

Brad Meikle

a comes is are nature line back and answers. or that. assumptions the what understand where the question It the last Can it is level. This for and was annual it's the the assuming Thanks back-end is help at looks how steel loaded like you. us for is -- what with the guidance you down your of -- street roughly why higher quarter that Thank then first in just light. at is

Frank Heard

Thanks Brad.

Tim Murphy

Renewables building half of if as greenhouse project Products in those the seasonality just solar look either segments; the the the or is the second the peaks our it normal Construction. in for you Brad, Residential Solar the of business three a a Division; Residential a Yes, of both year. at season all

So the infrastructure the just rest of we're don't probably seasonal -- more year infrastructure much in the bridges built you've of as and as then kind quarter get got normal first industrial weather. side fluctuations just

Brad Meikle

from in is perspective. what there XXXX changes also XXXX we're a to trend in understanding that there's from took But material my no place forecasting

Frank Heard

Normal, seasonal.

Brad Meikle

segment-to-segment any there's by material nothing is the And on affect quarter that others. particular or that demand more different. no there quarter-to-quarter than changes top cost So, is line

don't validate for too from think prior team. year again, you, But far I that great think either with consensus out aligned we're we're to I original So a and appreciate it. guidance, thank but guidance

Operator

Thank you.

CJS from Moore proceed Daniel Securities. your from coming Please follow-up. with is question next Our

Daniel Moore

quick housekeeping. a books is What rate like rate? for XXXX? the XX% look is tax cash affected Just What the

Tim Murphy

reasons, placed a those. depend a on to pay no The repatriation It million. X little will get be really few in it so basically on for a we think over over because assets which years, lower deduction It's about from than is service tax a so will take that. impact fixed eight that little is bit get XXX% right when I

and cash taxes assets the and So be between service. when swing place book biggest I expense depreciation would think we and fixed

Daniel Moore

it. Got

you. Thank Okay.

Operator

any Heard, session. end back to or like question-and-answer floor reached would comments. We you. for the Thank the I to our further of Mr. over closing turn

Frank Heard

our you us quarter. joining for we look call. And talking everyone you to That thank next today. Well, forward concludes to

Operator

teleconference. does That today's you. conclude Thank

You may We thank have your line today. for you a time wonderful this your and participation disconnect at day.

Gibraltar Industries (ROCK) 22 Feb 182017 Q4 Earnings call transcript