ROCK - Earnings call transcript Q3 2018 | Gibraltar Industries, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Gibraltar Industries' Third Quarter 2018 Earnings Conference Call. Today's call is being recorded and webcast. My name is Christine, and I'll be your coordinator today. [Operator Instructions] I would now turn the call over to David Calusdian, from the company's Investor Relations firm, Sharon Merrill Associates. Please proceed.

David Calusdian

thank joining and everyone, morning, you us. for Good

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

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

this financial I'll and Chief slides. the press Frank call measures to Chief call three. Officer, release release please earnings Additionally, to Tim and of morning Frank. At Officer, are the Murphy. this have to Financial been contained Heard; financial measures. slide morning and On point, Gibraltar's adjusted And GAAP Executive Reconciliations appended earnings remarks this Gibraltar's adjusted over our turn turn to

Frank Heard

growth quarter, momentum even growth continued year-over-year managed and market. market. you the our us line, our on strategy, volatility cost extremely to face we've reporting We both through executed renewable in products and joining another achieved and on for energy Thanks, David. innovative challenging ever generated and morning, We solid thank maintain we everyone, Good the call an today. well the Four-pillar as delivered bottom on top

X% short our of same infrastructure $X.XX, were a year-over-year is a our guidance. GAAP Our residential but $X.XX third earnings and our million At in the as range last $X.XX of the faced time, non-GAAP from comparison market. Non-GAAP of and high-end continuing year-over-year, of soft challenging year. guidance we earnings were up the up revenues $XXX quarter roofing earnings towards

strength continued Our operators raw clients the around new ability as increases. material great bottom of our our to reflects products growing to to cost performance performance. collaboratively margin work our volatility earnings manage with higher contributed also percentage line and our innovative positively business A

and our renewable in we the growth SolarBos, of of more I'll discuss quarter, in to provider. about an strategic the systems During of each Tim acquisition furthers electrical it speak over that, pillars. also progress I'll energy in ability then our drive return the detail, announced Their complementary turn to Tim. would more our one segments balance space. our to technology four With

Tim Murphy

you, Thank morning, good and Frank, everyone.

We GAAP to due an Solid even continued end and solid with to X% delivered quarter adjusted roofing year-over-year. products Results. in in & move innovative in residential in higher third comparison growth material offset infrastructure. increased market entitled will by segment, demand earnings year-over-year strong presentation, in Renewable Consolidated XXXX Conservation and volatility slide the increased Strong Energy revenues partially market of activity lower headwinds. at in difficult for guidance with end Consolidated storm-related activity cost the Let's four a end

competitive. allocating earlier recovered the and we segment, market By to material continue by we customers quarter, aluminum remain fairly caused the and volatility, year. our while price ensuring steel in During work that by the increases manage to announced with cost our customers costs tariffs by

price of and earnings line, our innovative benefited from Energy cost initiatives. Conservation strong Renewable bottom consolidated products, management XX/XX benefits greater Infrastructure simplification results & material effective from A segments. in the and continued and mix On Industrial

reflects level compensation million $X.X third in the in XXXX million expenses in quarter XXXX to $X.X expense compared levels. performance-based corporate normalized XXXX. were Our The

Now commercial of multifamily the level softer storm-related year-over-year three year ago, Products due segment. demand. starting decreased industry X% activity and reporting a of to segments, five, market mainly let's review slide each Residential Revenues higher in our with the roofing

margin storm-related is geographical bottom enhanced levels, we the demand XX/XX the and roofing initiatives, also mix for market from operating unfavorable resulted due segment, country. year, the grow markets. to customer line, this service saw Despite volume. to share activity rain steady in across new which product accessories decline On Residential a are management, we lower leveraging In

offset in six, revenues. line, resulting strong demand a Infrastructure and Products the the business, the was in on performance Industrial a X% by than segment, Turning slide the top lower infrastructure to continued in business more from industrial decrease

to continue the innovative from Industrial business. see security strong our in perimeter demand We solutions

appear operating resulted line, products, customer margins benefit margin demand to material of and On the the in for simplification the as alignment increased the we're future in prices, from innovative in continued activities XX/XX products momentum demand selling seeing higher for perimeter to the improved infrastructure growth bottom indicate initiatives. An by bidding encouraged innovative from We're cost space. security solutions. the industrial such

products, from management expect this higher continued in profitability and effective ongoing cost We XX/XX price margin segment initiatives.

with Renewable revenue and improvement nearly Now XX% X% turning innovative markets; & SolarBos. contribution recent Energy & driven Conservation the to tracker our Conservation Renewable in of solution, of continued was slide domestic acquisition demand segment, Energy our seven, by a success from the strong

volume margin improvement initiatives XX/XX line, leverage. primarily resulted bottom and with ongoing the On

expect earnings the acquisition We will its in be XXXX integration. SolarBos to following accretive

in the the and the from cross-selling an As expect eight, to turn competitive enhanced offerings. to meaningful detail we our call, advantage later of opportunities SolarBos service Please addition capturing Frank opportunity. will slide

acquisition operations, of million million of the $XX to positioned end earnings. $XXX the our generated at primarily well quarter, from we to execute strategy. are we on quarter, cash us available our The from the During

review million to Please that our to such us the continue standpoint, We on nine, can to targets acquisitions EBITDA that material slide will million to $XXX SolarBos. the consider benefit from of Driving Pillars who Frank? Four although, a I'll turn progress $XX focus our with would our Value for be and point, Frank, strategy performance, on we up At smaller turn as technology quarter. this to Creation. Four-pillar back guidance it

Frank Heard

you, Thank Tim.

end the we of As positive first businesses, initiatives XX/XX complexity of the our continues of year to our Four our our organization. transformation, pillar, goal to pillar strategy through excellence, operational results. reduce cost and of Xth the the The adjust yield our offering approach is the product simplify across

in-lining active of as replenishment projects currently majority is our the simplification well market-rate-of-demand These While initiatives as and we B. pillar outsourcing our in all complete, work this across include segments. of have Products.

we that lines, markets customers pillar, remainder projects resources expect the to To allocate to have growth, We now we leadership, focus benefits markets and evaluate a the The during result of time In highest product achieve portfolio downside third into and with continually target greater our best realize product for potential end limited end management, to businesses. simplification XXXX. from XXXX effort platforms and is of on our portfolio further sustainable and in and is risk. sustainable significantly innovation. pillar, now potential this second our growth

QX can contribution goal sustainable in making from is protection, drive significant innovative to through acquired our from developed the lines. as to pillar through Our growth progress results. internally you see product products this patent or products We're with

our businesses By patent our XXXX and During X% issues, address X% to developing pain and opportunities. core solid XXXX, of marketing competencies businesses with revenues to higher and leveraging identifying we're up are installation. products innovative trade-focused XXXX. innovative in To of manufacturing from techniques in and products advanced using customer and these engineering, XX% shifting our points across of products, these develop growth selling margin to our teams new organic

solutions, which In quarter. addition security to grow perimeter during and solar tracker the

developing our and should to you forward are in teams quarters beyond. have ahead. with made, new enable look teams to Our in opportunities updating progress market and several additional that XXXX accelerate the pleased quite on We're innovations us the profitability

of through our an pillar ongoing which acquisitions, Finally, part is fourth transformation. Gibraltar's is growth important

beyond. It is SolarBos a design acquisition complexity a and to of offerings projects we with market, electrical will balance and enabling higher And revenue provider scale to to deal RBI's products example solar provides value our the technology U.S. capture in. labor XX% in solutions that larger to projects -- small their solar participate already of technology. a with offerings of products up RBI's of SolarBos on delivering XXXX deliver us customers, our products for see By renewable more We give energy duplication its SolarBos' opens both solar SolarBos opportunity integrating systems for us. projects and complementary for them excellent reduce are a good Our projects. and domestic to business and material us also to up the the solar is contribution privately-held

building infrastructure, Conservation. be Our postal target Renewable security, Energy acquisition products, perimeter and residential & markets to solutions, continue parcel

process. contribute and making guidance. energy our pipeline the time XX acquisition Gibraltar to remain We in to only Please committed to long-term and value We prospecting shareholders. team have strong for will that invest XXXX slide a turn his to vetting and executive and continues acquisitions

solid in our $X narrowing $X.XX to between lowering At We considering basis. from sales time, excess our to diluted to or range be on adjusted $X.XX X% previous revenue current and expect same X% our the performance per but an between to of With X%, delivered one range expectation earnings and we GAAP we're so $X.XX in levels. high-end with continue XXXX of quarter far our left, have X% -- XXXX. of billion, growth the in guidance EPS activity share the to $X.XX

products, to growth in. markets all in and across the our they continue driving segments, about We optimistic end be confident organic innovative participate we're

impact domestic and the expect we continued material However, tariffs. cost related of volatility to global

markets renewals XXXX, $XXX higher residential QX of unseasonable the in from million between later million quarter expect fourth end and and allowed the into down levels sustain the year. when conservation weather both For $XXX $XXX we activity revenues XXXX, to million

between per between we and expect basis, adjusted $X.XX. GAAP We expect per EPS $X.XX earnings and on diluted $X.XX $X.XX and consolidated an share, share

the continued momentum to business, shareholders. to have of the capital, point, promise Gibraltar open shareholders like At and support. questions rate for team we'll transformation money this executing continued their of this on that furthering continued value thank time. you Thank may for to make implement with growth to is continue deliver there our for and Four-pillar at increase to the we for value-added to expect our for our course, any their return and at markets. acquisitions new to goal work use up call long-term initiatives, higher customers And a particularly the In volatility closing, innovation to to expect our strategy, and in market development and sustainable drive to of benefits and we seek in with cost drive product mitigate continue profitability. of XX/XX customers simplification with acceleration through efforts, attractive projects from simplification our and growth XX/XX to manage end Our you. headwinds value-creation more our more efficient I'd in to our

Operator

[Operator Please Instructions] line question comes with KeyBanc. Zener proceed Our with first question. the from of Ken your

Ken Zener

morning, Good gentlemen.

Frank Heard

Good morning, Ken.

Tim Murphy

Ken. morning, Good

Ken Zener

revision weaker we wrong. because most to get is from don't renewable? the about perhaps X-year assume decline think XX, comp sure sales vision up that mean, is a I stock there make was up XQ, terms to the volatility coming Understanding way on your -- your of in of XX. was basis, it is the a renewable in for just magnitude, Is or it… I res

Tim Murphy

shortfall order as think slowdown time that would we say, significant guidance renewable what -- in is third the and right And think the I where that there Last looks I'd this we the the for guidance, infrastructure and about say is gave -- performance. expected year, I in the conservation as that gave like, would residential Ken, we where fourth thought expectation say around we quarter. was we saw quarter. a from quarter is fees last we I it.

We also expected residential to come down.

with the more. we what little we third a think in saw pulled residential quarter, I bit

Ken Zener

that internally now is about margin in about really is XX% it seeing Is in participants more And talk were your the but cost what especially to environment. out increasingly what are that guys terms Could of in your of you delivered -- are it's area that for the guys as that a higher of kind bids? an good to of Which efficiently? you rational, is strong broader obviously cost you quarter competition? controlling not industry landscape a Okay. in process? steel there very lay think -- about about the are opposed what just Doing And/or you doing my margins. expertise, you're very there. I doing renewable If more

Frank Heard

Yes.

I it's above. I think in the all we think do --

and sustainable I expect -- think of it enjoy the only anyone RBI of probably if those performance a was that and performance the businesses. than bought picked we couple of wouldn't the have elements we the the when that today business. we element combination is we

terms and we with other on large, lot terms the not and relative of renewable side, that's conservation And material In initiative a energy on greenhouse in one differences by performances. side what the report. of and of

not it's the like So dramatically dragging up on other day. one is given a

back-end, it operationally. rising of to types an size it two and also us that HR, And so making operational but leverage the back-end the of markets this opportunity But front-end, of different different it of work rep tides. provides additional like ones, is business. in products. the finance gives similar, the the in also terms is to us So typical side overhead and buying benefits The different couple of in, gives of terms

to our competitors So that think that the would industry. be would relative -- model solar typical in business I unique

size X small-scale different. is we or would when projects, But also margin material-only a pile of than system, in X couple some larger tighter -- megawatts. bigger would much drivers. have and -- the the our primarily and our key our than more we is weighted are where We on to obviously, small-scale is target, only, we terms by fixed-tilt we profiles large, heavier were solar much probably it When in community with tracker of average of and which higher up because we're of piece I but we back-end, by it front-end, the proposition on say, in would broader items manufactured of large-scale and our tracker install as the primarily the well of be scale. don't It's volumes. lot elements own XX scale fixed-tilt. that jobs, and actual get the megawatts, do focused you the driven do own into we they the do last we jobs, sells of projects, structural historically Introduction price, we -- may third-party do the a competitors of makes be Whereas value around manufacturing side when think structural that's the what and In margin own solar that's lot the because the profile work reasons in size, terms We us smaller of a -- nature design in design by and for and more at competitors service that lot testing. work we're their high of the and uniquely manufacturing. the percentage of going outsource those we work with then quality, it most of our do different, I a things that design, We competitors just our of product. the terms engineering On with so I you bought all and be results business. see combination today, sustainable think it the forward a we expected but do

Ken Zener

doing? How are competitors

Frank Heard

financial performance, doing going they're to their different. think they're materially think I different. I'm speak but to not I

Ken Zener

very… there, your it which is certainly still confidence like But is sounds Right.

Frank Heard

think, benefited process back-end really me business, in the kicks the of last those this the us all in I well. thing, with fact, business under we've is and here that uniqueness table, as the helped also on along In the applying Tim XX/XX taking have as

had didn't. yes, a I the side, So down the after couple to end moving though continuing we forward very -- build were the years, you we're pleased acquisition demand absolutely see even market -- market and now on the with of we solar

contribution see going its potential a going to and we're quite forward. we and with to pleased be greenhouse So going side extremely rising honest, the its material And be forward. that's tide ongoing

on, to team. well, and spend time it's lots so doing they're So of to an things work leadership in, group exciting

Ken Zener

question. walked -- many a just as as in saying shrunk last you it appreciate being with though, guys businesses looks in Industrial you infrastructure is, products, that. It from I drag. good, If are you ways was away prior years. could Well, industrial lot I the two the it your

really business you're trend first because say, with you Does where growth, Is I this seeing if -- business about margins However, the nicely if segment applications. you're the with good. building? be consistent, margins of the could could has this we a XX% perimeters -- really and seeing kind let's to you're internal initiatives. up -- that incremental are your this where see been perhaps talked year-over-year, portfolio just me -- know

Frank Heard

is work I with a themselves. reinvent and doing selling bid developers chance to think that portfolio using it's allows think it leverage steel them proposition. pointed been they're on you group a way lot just projects working perimeter have wholesalers. the in initiative the I on And this investments of to a that of proposition a to asset, markets of then they people side, value place XX/XX as where and it metal broader To get perimeter security past and security, project is the a and to out. terms in value in broader in on end the which They're of

And security a attractive. revenue to long the cheerleaders, of from so… supportive progress we've been and We're times tough steps, -- large is this of some because enough way positive and group getting distribution been progressive those yes, So some nice the a know couple higher their work, hard lot your as has than security show a made -- market terms we corporation but the early steps a We're much of long towards days, in margin that's a obviously, positive margin margin we not a the has -- gross so the way know reinvesting level, it's themselves. its But this Gibraltar to active is market they end profile, in goal and the and today. through perimeter a and that's margins. perimeter net of point,

Ken Zener

very you Thank much. Good.

Frank Heard

You are welcome.

Operator

of Please with question. proceed Global. comes the Seaport line question with Walter next your from Our Liptak

Walter Liptak

Hi, good morning guys.

Frank Heard

are Hi, you doing? Walt. How

Walter Liptak

Good.

it is last does a that What wins and follow-ons them? to high hope just jobs? for perimeter of security Or their the -- got steps? you've some positive to that wanted funnel's Did they building question. is making mean couple some Just

Tim Murphy

Year-over-year all -- time I growth of a a engaged and on industry, player and them small show in funnel fully and as but take security describe still and the they're specific team spent so I some with the above; quality, I the would perimeter now encouraging.

Walter Liptak

come year? make they some there's you here. through you a win sound Like couple for like could And jobs next -- it they they have an more could if to -- opportunity Okay. big

Frank Heard

To my lot is And the end American billion, a research somewhere return variety to service in market of and earlier the market. relative know comment, perspective. North of the technology That's it's we've size done and perspective attractive from extremely profile. at a up product And we a the $X of of around probably margin market made a segment.

first able support engineering to company. towards a structural selling -- and year, back-end a with our enter project of and then -- a experiences able the and some that guys in product a done and lot year, system along that market and and leverage direct line space, be of skills year, they development past sales of activity -- of what some sensing right terms classification does get of and unique as that consider the as sets service good RBI were assets to engineers, of they did supporting technology same some around to what the building they've the past a around type is and to patents to of type them. to So do developers And terms work are they products enter -- out be in past more trying force

their steps that all to between the channel particular initiative, in So and property of there's specifically owners assets developers with have various across country. this up harden no

margin and a and backlog higher And large with a and opportunity of earlier products growth of market profitability to very and services. provides in range it opportunity. job fast-growing a much revenue, point, growth a broader Tim's So opportunities

sustainable. in So of terms that early the days, but type steps make we've and seen progressive activity numbers, it some of

the pleased progress. with So

Walter Liptak

other could great. bearings funnel going things perimeter -- Is a said clarify on were in referring there something or related comments, if infrastructure your there's one security? you thing And projects, else? I bridge Tim, like Okay, the of you in to

Tim Murphy

of the to a And process, longer come time in the little on projects. so to infrastructure of they on producing. to do the been those work. some there's and there's they're yes, market, contractors It Yes, to projects already we we're through build -- being a would shift take states by bidding then designed design a the side market the what where having going bit actually market and is -- signing business, to get found we time to get to the be from contract more

getting we're they're the but between our involved, -- design to They're state forth So the a back there's of prior our from in design pipeline. lot and contract. and the

we contracts the basically level, projects next an increased signed. -- where which So see where to to participate we is level being of waiting get

Frank Heard

And can be the to from the win And building Tim's challenges they that got first point, year -- funds we've design, of to large-scale states Walter, and seen, think through also install. their the the in towards projects projects. multiple track second engineering to started into to their the matching funding process and process bid is the shift projects what the as then and in fast and -- the year, of the terms allocation of year large-scale

necessarily activity, if number of bids notes year-over-year of day other bidding bid our and you the that I the types -- looked the of than activity, -- driven our the doubled. at a primarily more and our has project, bid in value So not the for number our size saw by

million million of think $XX from $XX terms I activity. gone in it's to above

at major at right? the going tail-end before, products that work do to to are point new the building So of process, are Tim's One's our to and driven said, starting building try the going building bridge. to holes. you'll versus, building repair, to to as up by -- And like we're renovation a that's bridges at the we're supposed pot thing get They're that I jobs shifting short-term some that type of starting. actually of look people we're keep that's, or hey, --

Walter Liptak

Okay.

timing projects sounds it would -- you timing, might be the hear the right, going? I as year some these So next get spring of like

Frank Heard

out, harder when. customers delivered. think, we demonstrate with you when level did say to we we mid-year the But I that win spring and win job find our start it of we the all different seen it's Yes, need to of then, and We're would once through working were last would things a performance years. certainly what hopeful expect that late seeing to over in couple the we've job,

Walter Liptak

Okay, okay.

one Just a tax using rate quarter? you're the for the Tim, fourth quick for

Tim Murphy

didn't disclosed depends We it's the the a that too somewhat we expect it price quarter. specific will that predict. to tax don't by hard tax and things on of experiencing on out impact But benefits rate, the some Walter. rest that's much been day stock that discrete an why We've fourth saying, comp that around in carry I

So used I what you off. probably you would seen rate with so if say, wouldn't consistent far you've a far be

Walter Liptak

we mistaken. for been labor in okay. up is, in and know? this residential you construction more near for business the career, based are entire go in moving there's one markets, Where you, some just enough Like, you've where something think, positioning Or we cycle? on on housing, think where How rates -- one are around I'm Okay, the hitting And interested markets some it comps? if are Like, not what we And and couple a end? do in you worries think there's about interest low where cycle? you the and the we're could it I'm then, we the you are really is for years? shortages this your tough And demand things. if Frank, I

Frank Heard

People I and multifamily the cycle of to of think period year-over-year there single top not would a relevant. of requirements closer always time, basis. we're that such that, the of terms a closer the for And -- that backlog. must of replacement what argue would sure in a producing that's we're I'm lot to certainly be the under towards on that end long target be --

think past I a were in in $XXX,XXX last that in So now was doubled I than my to group we've listen, and term a my that. year, $XXX,XXX more life

sustainable million number the heard now consolidated. thrown then $X.X is around think and I I've So that

side. fairly can think draw from conclusions. economic whether buyer to I relative million, at market shift off to or up north of then That starts years the it's $X activity $XXX,XXX you versus up to it of country is XX of that number? continues ramped to left And the much changes get So a as basically number we ago day quickly people runway your to and to the the the between buying that how this If drop a in today. own sustainable the seven broader stood houses demographic

is So that's the end -- That to I the we're what my view is, not thinking. consistent where the just know end. to don't beginning. certainly close closer you're to We're is.

Walter Liptak

Okay, all right. Fair enough.

will Okay. Thanks. I get back in queue.

Operator

question. Dan Our next Moore Please Securities. with your line question CJS proceed of from the comes with

Stefanos Crist

are is This How for Crist Stefanos Dan doing calling you Moore. morning. Good today?

Frank Heard

Stefanos. morning, Good

Tim Murphy

Very good.

Stefanos Crist

you tracker us coming and questions, update quick feedback solar products of the from Couple real in on customers? can about

Tim Murphy

progress product. process Yes. -- with and yet We're products the happy we're the with with the making

for we projects. with a haven't customers. We to select been product to of working not it officially customer, of more sale any ask and continue available group It's They more but launched have to yet. the

so we happy far with So, bright happy see progress in and date, to a it. future

Stefanos Crist

on Great. now? could where from fixed-tilt, And do of projections a you couple that have tracker any versus years be

Tim Murphy

we by half. far in of -- towards a the installation. Tracker biggest last is year. second we're In the all projects did We tracker -- until business, started fixed-tilt couple of end broader the the up historically, market. megawatt So our

So don't There's both research. in is the other various the sides a estimates however, moves would what growth out think groups our I guess, know necessarily and rate. we what of market we don't is, know what GTN from going would market the expect we to with guess do. there few I market. industry continued I

total. at, project we what Each specific. is think look in see we I growth just

product decision service So depending make the load, wind they tracker a offering offer comfortable conditions, project what and the we either. the today, on fixed-tilt. the geography, snow can are the ground load, our And between the developers with, size what and of the

it for So us. opportunity we see just a additional growth for as

encouraging there There's that concerned end drive at other coming this was in at again think -- the and tariff sustaining market. a in. would year, is the I solar that prices general, There last really trade the in a up beginning was the of the up panel the space, of that, thing they're is panels XX% case. and really on dampen XX%, year,

quarter of bringing something were customers short panel a they're from last lot. mid-$X.XX $X.XX them of hearing third We're think, that I year, in a now neighborhood in prices range. for

tariffs have had significantly. I a market generate continues mean, certainly, energy some negative solar them. not they'd from to cost the had as to be So the drop perspective, -- from lower without pretty But they've impact a

Frank Heard

twice -- year-to-date, that. $XX doubled X. launches Certainly, quarter with that way test million by sustainable last tracker demonstrating the bottom long-term that's, grow forecast more of broader And created fixed-tilt -- next the And tracker the that 'XX, forecast couple started our the we significant a has then after to thing have that then, of and and four from ability, initiative in opportunity. year tracker says after bottom goal 'XX, in number a the declining from to over and a market I 'XX that we've flat maybe years we that I initiatives was And you a a business. more that current at fixed-tilt early a obviously, all is lower at bit, up the space. fourth and one materially that 'XX. innovation another one. of size as which than have year and is opportunity other is publicly be We've year. said just year get the it started on our we hopefully, And of public the four The those end proportional is And would before, the we than little stefon we the said that on the a generate they Certainly, space, to with of add, space. perimeter that if fixed-tilt to product, tracker this we will should as and that share, large play security was lockers, we we're qualified want help end the our project of it think kind

$XX the fixed-tilt opportunity technology to that, between solar other which -- than competitive is in something larger the space. if slightly target choices our larger and market than displace million we would believe, somewhere we community be the if So much continues

a doing disappointed to positive we're jobs range are customers, is, form. the broad from fact nice we they're people all opposite job, like not are the our that one-offs a original and people natural really is feedback case. sold getting where customers our So doing of multiple It's

Stefanos Crist

And question. more then one Great.

are priorities, especially your for So you is price? share recent capital the primary mentioned pullback your with allocation remaining What in M&A. focus

Frank Heard

within continue I and people board. to -- have have of strategy. discussions we specific very our It a their think review we we allocation capital to that Board, it's group responsibility and -- our primarily helps

land to we I think continue on.

being and most but strategy acquisitions. set option priority a that to first us pursue structure to of of that committee businesses onetime addition now. obviously, things or. reinvest Our There's I support, the that where generate enough that would in enough it's whether dry lot accelerate would is either number ensure that's modest for that just of maybe not acquisitions one large-scale -- got transformation. it's we're is, stage it we Whereas, today, powder in capital past, context, we to momentum to whether capital think argue aside that a whether now and more But we the and from we've made that, have paying our material it's off doing fairly cash own a debt, whether the a progress a all at a probably a continue don't or could share think buyback, allow it's and else even dividend, in generation. our continued would would -- in probably now. to has in something I in consider, those cash that just maintain We

majority And So think that's I hasn't changed. were but the before, a our where acquisition we the is different on side position. of certainly, that incentives

Stefanos Crist

way or backlog portion of in greenhouse evolved this an there how just is opportunities business? pipeline How like big opportunity of is? And question. more to the the is of cannabis-related any frame One Right.

Tim Murphy

And Well, that think to today that, grow think And at we you total. opportunities. million We the cannabis business $XXX most some I market that could is estimates. years. of $XXX that driven we five could by market is in in million-ish think greenhouse probably give growth

They actually states of still might they saying bit you go The on the while Then U.S. a earlier around it that from then be going to perspective, select get of the caveat a state-by-state There legislators think sort expect But law are we they a have legal, law growth to of go It licensing the the they customers. the Then is overwhelming going amount work a vote, think to this their takes that, and runway to administer especially we process all basis. prior the going there's I'll California when we I program? throw set. of sort from a is be in recreational California is And is is get for that. process. seen its as so a to they growth, long of to licensees. have So is see a issues little have their market, to because through. through you process from through legal. aren't recreational selection licensing What will medical in signed state-by-state. longer year. we is how we qualify states went this go on almost these that inquiries a do

it's that get a investing it's through or find process if in about range But continues market, cool. market a growing. Backlog we who it to we is we a be go customer have so boy, projects who new oh, of in are grow. somebody curious the And in every to inquiry think, those out the comes -- just when And greenhouse yes, to brand somebody us. that pipelines would

we're in So mean, the middle encouraged. I we're it. of

focused have their historic industry career. on the entire same of been they're botanical customers that bit space may who different for a gardens growers have in that's We our little in than because team everyday a

Frank Heard

like as It's going And the Yes. market end as spoke specifically eventually it will that I think is greenhouse up on U.S. is, the a into Tim thing opportunity. to fact legalizes in very about well. everything be I it to a would the Canada, XX in ultimately going times as fast-growing add

great think it's in quality; outdoor into high position I So from is grow, It's grow is indoor indoor been high quality. greenhouse moving that cost, high a and low cost, grow -- into from in then quality; low that. greenhouse, perspective, is a we're cost, because outdoor low grow

there's to is, are greenhouse. spot But we going they're that gold expertise to around design shovel in environment, the that focused of have some our to we're deals a in ability know then CBDs focused extraction go a to don't and of and to capture, -- levels is don't in of the on. packaging, company. aspect a We've in in our we participate two on we And in goes to an impact the product, largest greenhouse, in and to we a it grown during There's structure measurement lot delivery, that got aspect is in degree energy-related security medical-based there be genetically various that to some technology downstream I what systems So around the growing build whole and also to Energy ultimately greenhouse don't is the control flowers goes that, we today. engineered happen it one gets that that team that product. good fact, The a that's participate environment. rush today. have own technologies But in guess. types or one our that as recreational of broader and that is another product pain products for there's based technology whether business. that points. and into then the go a various THC into that levels of testing We there's it'd different And we be

So our as from larger perspective. to side, out should participating green an we're spending much than the we view technology just a than greenhouse. figure that's try where market to innovative be And we house where cannabis in time other

And tours but involved early in and it's today. in exciting I've companies of that those of strategic type couple thinking various personally not a So know days, space. to sat done we an are conferences we technology

So opinion, going is early in -- to certainly, this like end but is so… think, Canada, the days market same I in other the countries but state as, legalized up transformation, our

Stefanos Crist

All right. much. you so Thank

Frank Heard

You welcome. are

Operator

Thank you.

to the question-and-answer session. reached will I the Mr. over any or remarks. end back conference Heard additional now have closing We of for turn the

Frank Heard

and concludes today our Well, thank you, call. everyone, us for that joining

Operator

call. for conference you and today's Ladies thank gentlemen, very in much participation your

a disconnect. You may Have wonderful now day.

Gibraltar Industries (ROCK) 2 Nov 182018 Q3 Earnings call transcript