ROCK - Earnings call transcript Q1 2021 | Gibraltar Industries, Inc.

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Operator

Greetings. And welcome to the Q1 2021 Gibraltar Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. to of conference LHA. like host, to now Capaccio Carolyn would turn over the your I Please ahead. go

Carolyn Capaccio

Gibraltar Thanks, of Operator. earnings this Good Executive the call management Officer. first contain joining discontinued results. section Bosway, us was The morning, GAAP be which remarks release at earnings Industries’ Officer; press non-GAAP everyone, and With the has on a reconciliation that operation during the Gibraltar Gibraltar’s divested with release company’s are adjusted slide was end press on thank financial of fourth and me Tim are Investor the found was financial Chief acquired and quarter that December and call results. President available morning Industrial of in classified Murphy, Bill the will today. Gibraltar’s of issued the TerraSmart, is morning, can today. Chief you business, Financial this measures XXXX, the Please was quarter release gibraltarX.com. presentation which to press of as as in as both February Tables XXXX XX, note included earnings well XXXX, website, in XXXX use Info the Results issued that measures. for that

risk slide Also page by on materially not read advises and two on slide be factors SEC through section filings, accessed statements. differ of four segments. the expressed with contain accessed events, Gibraltar actual quarterly guarantee noted year which clicking has the implied These for anticipated the provided Energy earnings its two, detailed forward-looking full and be future of are statements presentation, & Agtech segment respect can to XXXX Presentations. press to Renewable website. & Renewables has information can and results the Gibraltar performance the by separated statements its renamed or you historical Additionally, and of may Conservation performance future company’s from of company’s financial its XXXX these segment the results. into Agtech the the also and which the Gibraltar forward-looking results release website, Renewables or on quarters Reports Investor results the in as through presentation

will I Bill? to call turn the Now, over Bill Bosway.

Bill Bosway

everybody, Hi. you Good our today. morning, and joining call thank for

we morning an we will quarter with this your provide Tim results of of our review will Then XXXX Then I questions. today. call our start and first come financials. detail I a more guidance Let’s back change and priorities will and and QX our up announced overview the the will segment for review then then earlier reporting regarding our for open strategic

So, let’s turn slide to discuss results. to QX three

across end participation ongoing managed challenging we gains labor that solid execution, market So operate deal results weather reflect while markets country, delivered availability the healthy we through material and and demand, with material the continue some worked across inflation, pandemic, to shortages. and our through

segment, driven related which good growth XX%, business, Harbor For strong XXXX. the to XX% in quarter in first our quarter Residential our Renewables was volume in increased growth organic, Safe of the compared which of revenue by to

year completed Solutions TerraSmart our Sunfig Residential integration full completing Architectural our of starting as business. business in activity Renewables full and our with performed of acquisitions and their its into Mailboxes Agtech quarter Energy business. integration first Our planned into second integration its Thermo

increased good acquisition, organic share. price good The cost segments, the on basis well. last Adjusted in Renewables, services and to backlog on and basis record the expansion Our Infrastructure we up million also pro $X.XX a year, versus growth XX.X% as or bookings and XX% TerraSmart absolute Residential productivity XX% an mix, during generated good initiatives. and order up and margin million, per earnings strengthened to management, $XXX result order the $XX.X of products forma quarter XX/XX continued and

and Now let’s four turn slide segment reporting. to I to want discuss new a

As really going our offer as transparency our we investors that transformation our performance it’s I stakeholders of businesses. strategy, and important continue the core as greater even think, business, forward our we concerning to of the well

providing markets our our insight and As time, and well in accelerating and important we into investments participate we vision the also performance. is understand allocate talent required focused energy unique the to and how

segment former report Renewable So now two this and we four quarter, and segments. results beginning with Conservation Renewables segments into Energy the will separated & business Agtech, across

Residential, Renewables, So Agtech Infrastructure. have and we

the after the shows this adjusted segment So, change. and operating revenue slide income the by graph segment composition of our and on before

closely you revenue, Renewables Residential the Infrastructure XX%, remaining of represented first look our of X%. and XX% XXXX, XX% If Agtech in the quarter

For business. These the year of these XX% XX%. represented represent comparison our XXXX, the this three business business of for XX% and businesses in of Residential three Agtech first represented quarter Renewables total while XX% of business, our and segments collectively the accounted

in our really So the result portfolio to to way growth markets shifting business started end XXXX a in more we the for in shift actions offerings. higher of revenue the is start monetized

industrial be all including broadest ground size are focused will acquisitions should investing and move solar of and Renewables the on the and solar but software in Solar we as and years TerraSmart and fields any us to Sunfig design the segment, we largest serves through over technology position XXXX, segments added domestic as in our five reminder, business us than RBI those with strengthening acquisitions announced a and technology turnkey slide the the we we beginning in and review provider energy solar of solar utility we market, The market, of through the on able portfolio similar Infrastructure, three solar five subsequent to the canopy specifically TerraSmart which to more when slide organic then our both in solar doubled community, mount XXXX energy which segments. Let’s and January our across really last join were Sunfig, started tracker serving customers business growth terrain. solutions, December of and that early acquisition commercial who this any

me on let a team key in finance, integration integration its you process human marketing, with update our has provide with management. TerraSmart. sales organization focused really and optimizing driving functions systems, business quick on resources, The emphasis initial efforts progress product So engineering

good I we organizations. each area our think making sales XXX we consolidated are and and progress days pretty both the in over marketing last have

customers. we and single toward -- phase are We for moving are a

business ERP also are entire CRM the system. We a and putting common

most Our reliable proven platform legacy were best teams software operating Sunflower. engineering remote and with teams our and of our management management TerraSmart’s challenged assessment flexible based TerraTrack most their a product The select complete the performing that’s technology portfolio tracker system. to

and challenged expand with offering our team, the also the engineering feature tracker We focus community. can we bankability simplify so financial investments

As been has a TerraTrack our the selected go-forward as result, tracker technology platform.

to will For both installations continue with customers to and everyone existing accordingly. we and transitioning support existing customers, started TerraTrack we have future Sunfig

more remain much start, plan. there’s integration good progress on do, we to making So but to work and we are off are a

let’s to to at our Agtech six Now slide look new turn segment.

focused years. in distribution and million XX of six The in engineering, XXXX a just the acquired manufacturing, design, over market, two been energy it provided structures, So we growing Rough supporting on RBI revenue we Brothers which installation market XXXX, business multi-purpose for precedent approximately segments. market was markets the solar really and had which environment commercial controlled business and Greenhouse in $XX were discussed greenhouse core when

fruits and Over in more the greenhouse multi-purpose both as and Nexus Agtech growth processing, provider equipment the we subsequent good leaders last capabilities cannabis we growing. of growing in and of Separations, Thermo year extraction of and year acquisitions size environmentally market we XXXX, ways and for to This significant it’s Then XXXX, demand pesticide produce in and business growing five structures. strong years leader based growing operations refining organic cannabis X% grown America We as more solutions to the an per market. acquired well and accelerate. round best-in-class produce consumer Supercritical presence for In turnkey fast growing. have responsible Apeks am acquired as controlled the for greenhouse greenhouse processing tripled Energy, the hemp continues in and Colorado hemp. and through used of produce America adding than and leading XXXX free structures I in XXXX tactical attracting Denver, growing environment scale North locally exciting In in and in both is investment North a large Delta and cannabis build looking the in a added provider vegetables oil

produce hold processing which medicinal brief Let’s market extracts legacy grower critical for take The sided The an through overview and along can exciting and and for of and I extraction reflect successful demand you leadership in size positions key actually and to states describes whether growing purposes. licenses oil industry design, of a segment cannabis Agtech environment. strong domain we we illustrates remaining or The and which process, facilities left knowledge, scalability managing each structures immature, grown the we This largest and markets side we is with for products recreational all successful segments legalize portfolio the improve demand continue equipment consumable And was still scale services slide the and and our the of services of balance also segment see but serve. chart in technology course predictability turn The and serve. many for as really end to business segments are growing approve to six market. will the segment providing seven and right results. build and our our the involves supply the installed. How more of the produced is consistency we relatively accordingly. deliver you is the will of four

our agriculture installed our our to oil controlled of environment heritage turn yesterday brands represents we solutions slide over cannabis ecosystem. X,XXX and North portfolio new eight six for of really supporting experience which called discuss leadership for Agtech environment years acres leverages in by brand solutions operating segment, of the and solutions let’s Prospiant, controlled launched by reflects to soil representing Prospiant Now portfolio broadest Agtech go-to-market environment for to far America. XXX the controlled

are new and help markets are next accelerate. moving Our phase and of now maturation their toward relatively them are well position quickly to we

growing and partner process the a with time. is set market important. one our at and believe in so environment to and do services really with technologies customers help vision build products We shape best it’s Our of

that and have solve would for Prospiant. have single know opportunities Our customers that is really and the they solution, success problems and they a trust, the create

me let and stop through by turn over overall results now segment. So there, you to take the it Tim to will in I total

turn slide let’s nine. to So

Tim Murphy

with Architectural winter over driven increased by recent the driven EPS was growth mix, you Mailboxes, strong along I our revenue Residential participation Thanks, consolidated XX% by segment, through margin the operating up TerraSmart, expansion demand acquisitions well cover as execution the demand XX.X% as Residential XXXX across my Residential total Sunfig, execution ongoing impact end the $XXX.X generated pro discussion from reminder a Bill, income and million, result shipping segment, a strong of adjusted the the as up backlog growth results The Delta. with Organic increased continued quarter, Adjusted at and Renewables continued and was our morning, first Renewables And demand Energy operations. basis, We organic Renewables which excellence businesses. and increase continued impact in offset everyone. and services and benefits XX% of XX.X% end revenue storm initiatives. on of Thermo will operational first driven on and products quarter market and to XX.X% growth by results. good gains million, acquisitions, and XXXX in quarter Consolidated will in the forma and continuing delays. The the segments, take segment from from of continued segments. in was XX.X%. our $XXX

we inflation, As a impact the were pandemic, and material performance-based in availability, result, labor costs. of increased material and effective offsetting the compensation

will dynamic to foreseeable shipping and to needs Our and services for our expect future. the labor procure materials obtain and required been meet teams hard working continue we have the very this customers’

and Renewables, Infrastructure, and Agtech with As Agtech. the Bill now reporting, quarter’s four out former Renewable noted, Energy Renewables segments, this Conservation the & Residential, two, segment we report breaking into

acquisitions, let’s and the in starting slide legacy review our Renewables segment X.X% by business. Sunfig growth segment. as each well increased driven revenues XX, with Now TerraSmart organic XX.X%, as Segment

end our pro points, in anticipated. the down of the timing execution, As XX%, current XXXX, TerraSmart our step backlog quarter events during maintain continued extension end expect solar performed first and for the operating Safe schedule under to growth proceeding initiated finance of we on XXXX, basis at related record business rates, is ongoing were demand basis to the in evident weather Integration incentive movement quarter be activity solar with some and increase in their investment XXXX. margin we project of end the quarter remove of ITC projects entire also XX helps was X% have Strong credit project’s were its performance customer December to a of and infection legacy started we the extended implementing not tax invest XX% amount. Safe forma up business. to dynamic fourth and productivity XX/XX XX%. costs in higher Safe accretive in rules through was the the Harbor more experienced customers system a new margin Harbor XXXX. and improved which chain of benefit of unique TerraSmart continuing In XXXX, XX% revenues the to remain significant the as grew and or was to two quarter the in ITC schedule having levels. to scheduled prior XXXX the and XXXX challenges. Harbor supply years Despite benefit quarter at The and Adjusted our booked drive portion revenues, credit given through reflecting additional XXXX, of to instead operating across business XX/XX and in ITC to that The of projects retain

X% review growth dynamics to to XX% to and adjusted management, higher organic February segment. of despite growth, and slide four input and Organic contributed Segment our and all business the move the material almost from availability XX on and price cost material labor execution operating year integration challenging Residential participation and this XX.X% initiatives increased last gains Segment logistics ongoing with and from management increased Residential solid revenue offset Mailboxes higher margin strong business grew across concerns, related pandemic weather the of productivity and impact revenues acquired in Architectural Let’s track. with volume, logistics. with XX/XX labor costs, challenges. which businesses, availability,

revenue produce offset and slide improving new gain and to was as XX X.X% dynamics our weather challenging in continued to move the hemp existing markets. to let’s and Now conditions project supply Segment down schedules. cannabis impacted and the review chain Agtech segment. market The market during than pandemic, the momentum quarter slower

the convert We hemp well Solution, as customers encouraged was business. from impacted and of margin the adjusted the Agtech’s increasing business activity integration overall produce by equipment by projects are Segment core pandemic-related expect processing continued of Energy operating the the The progressing see through we activity we and markets, timing our and in increasing demand is the in to volumes and of despite progress this Thermo border. U.S.-Canadian market mix the closure to year. cannabis

margin execution lower Thermo newer operating and implementation we to expected of and systems. acquisition of expand through majority benefits are and the margins margin in the the inherited We backlog projects the our through of of XXXX XX/XX have projects the higher worked through

and consolidation market drive We million business, trend also completed expected produce sequentially a an structure forward. is in of facilities Segment driven will to the backlog continue cost which in the provide and active $XX results going increased better to XXXX. X% this by processing positive

review Now to our slide Infrastructure let’s to move XX segment.

operations. and and to grew $XXX,XXX impact the has federal fabricated productivity Industrial pandemic schedules to in quarter, margin Infrastructure fourth as today in higher will project strong As or helped XXrd business driven existing Segment the revenue momentum My momentum completed we non-fabricated as cover initiatives driven margin X.X% and funding. solutions. market the XX/XX on results continues products ongoing XX.X% sale recover. by we first improved the discussed $XX as positive quarter DLT its operating basis new the technology, XXX of Segment continuing historic in operations. continued decreased million Order to systems execution operating reflecting have in points and offset included comments and the our products. adjusted recovery for state the economy This call, business and slower by February the discontinued investment backlog

repayment to by million from used move continuing We Let’s XX generated given in $XX net and million approximately position. borrowings. we cash $XX partially hand cash material on in On our and offset inventory cash $X,X $XXX the from an raw revolver, $XX million leverage investing rising XXst, million used of was approximately liquidity available million turn. with increase operations was meet $X.X discuss a activities of in to for a $XX million. of had result million by divestiture, net $XX.X industrial to slide our quarter, Cash March of of quarter on of the of million capital in a We mainly financing outstanding in expenditures demand cash customer growing prices.

using continue balance to revolver repay on within a generated the to our year flow our remaining operations. from cash We expect

active cash Our working debt. on offers invest model the managing liquidity capital. flow excellence, and modest organic capital organization strong of continue repayment and to and operational operating and focused of remain development our us our M&A expenditure remain the to and in ample discussions We inorganic growth in relatively initiatives,

will Now, call turn I the to back Bill.

Bill Bosway

Thanks.

Let’s…

Operator

is line open. Hi, Bill, your

Bill Bosway

I am Yeah. sorry.

accelerate priorities efforts, and XXXX, to portfolio system turn in Let’s our update an organization. really on transformation as business pillars XX we through for slide management our our to three strengthening continue our key our improving

focused we priority one, last a Top business. and them our Our number is, key accordingly. very priorities on earnings scale and call remain remain consistent our Agtech with Renewables

per management system. plan model operating to as acquisitions customer as scale apply execute backlog, and operations and our and integrator well growing delivery XX/XX field continue project have We record our to our

digital and invest strategy in processes parallel, energy position services operations additional organization continue in and the of with In our further to market. technology we segment in strengthening are also our solar IP, development the build We in tools. systems, defining portfolio software maintenance and capabilities,

which responsible relationships foundational of and our residential portfolio drive do our our progressing via where responsible right of our and the efficiency business have stay the health focused inflation, growing initiatives, our suppliers, XX% with stakeholders. Our to in third, steel, I material, systems. supply or And day list and chain, of proactively way. number material our our managing new at diligently customers absolutely important optimizing communities control way automation with our with quality Gibraltar, food conducting and our is aluminum in and price people to whether continue we safety, XX/XX conduct continued support logistics, must productivity also production, and effort build I the term. our it’s near-term, costs lead-time focused effort development, now medium two, for focus priority believe laser business improving our execution while initiatives the On labor assess with summarized the transportation managing customers. we and to and opportunities sound both fourth, our capability the is facilities these right to and managing supporting the and resin, culture solutions and solutions product plus XX, in manner in ongoing availability energy enhanced every our our on all we continue We and in and And availability environmentally to really solar is cost slide our in longer areas. business in dynamics

initiatives. So, our I to key just a on few want touch of

play. So have five of that a update let them we me currently in give on brief you

curriculum and Board culture and continue each to hours with the initiative our focused on environment creating employee compliance In best XXX% feel our assignment of year complete per with we and can training of success. online QX, ethics X,XXX realize included requiring with employee of people intent XX.X First, our where education. team hours education our over of their completed the and representing members

and the the understand appropriate of inclusion level understanding communities plus really this where our our been the initiatives us months location continued have mapping partnered of for to of our over positions, requiring XX Better assessments to It’s in Energy’s diverse of our Secondly, of last XX we to DOE as partnership have location. number program. of we a process This help hires diversity itself. each candidate’s XX% slates have each we the determine and new In with community launched each facility three, and universities operate. And we diversity comparison we support diversity parallel, been with important new Plants diverse. local Department with when energy our started entails the filling the Programs

We Renewables our energy to and spend, source us selected our and outside sources. facilities an help firm for assess also opportunity management energy to from usage have energy the

to our Our carbon report for partnership based reduction also the DOE company-wide plan a of is contributing with locations. the scientific-based our each development on sustainability of

the by technology, our We will months adding legal. with have of finally, digital transformation, experience management, of that and ESG ready and competency end have XX information we and Board And XXXX. evolved last members marketing over cybersecurity, the renewable Directors new energy, four

importantly, more diversity well. and diverse, management very as is team Board thought of the to brings a Our tremendous

We our names expanded missions each also and charters all restated recently for and committee. our committee

we XXXX. So, for to XX slide outlook our let’s will move discuss and

backlog. by are to We see continue strong start order demand solid supported we market and customer a to a end off good

availability in business into inflation, confidence have labor second remain terms going supply general challenges of do quarter. pandemic, the dynamics, and the in While we our chain

will to for well through operate environment current people. executing focus and the We our continue environment safe on manage a maintain

reiterate refrain and we move of we clarity the will guidance until from as year. through our we XXXX previous and guidance Given today’s providing quarterly have -- reiterate full the for more environment to earnings year we revenue continue

continue confidence and plan. full in to quarter-to-quarter and EPS GAAP our range we $X.XX to year $X.XX, regardless compared to expected and $X.XX executing is remain As billion cadence, focused $X.XX XXXX XXXX in between and and between overall reminder, said, EPS we That a range to expected on will $X.XX delivering to have adjusted between $X.XX, plans to revenue range is to $X.XX and $X.X XXXX. is compared our the billion, consolidated in expected outlook

the for open So, with will we that, questions. call

Operator

[Operator go ahead. Instructions] Zener question from The Markets. Capital first Ken Please KeyBanc of is

Ken Zener

Good gentlemen. morning,

Bill Bosway

How Ken. Hey, are you?

Ken Zener

Good. guard pro we here. out can -- here here. Caught do Can how I say for again stop that -- me you word Agtech again, pro me, to pros you want -- off say prosphate? go --

Bill Bosway

Prospiant.

Ken Zener

Prospiant.

to Appreciate it Trying about in correctly. the the to data run gave think comments. rate XXXX, to the refer Okay. disclosures. annual us you XXXX in second Two the

guidance. let under me sounded expect descriptive margin be you with positive said start you Now, expect It were XX%. you in X% which like just then, that just to XXXX, are about looks the margins are margins XXXX the and not Agtech, you years, in had about quarterly giving Agtech you correct, you year? segment that It like growth are to you so Tim, be you expecting, being this I up believe is

Tim Murphy

Yeah.

of think all. I

Ken Zener

Okay.

Tim Murphy

all go to We up. expect

Ken Zener

in over that give The decline really leverage are X% function start. bought investments Okay. the their is breakout. you is, that its these acquire which end appreciate Can just just margin walk market. you that to a X% volume maybe us us right? plus and and you in IT obviously today, attainable time, trying investments, lot companies, think systems investments volatile there’s margin, you you am when to lower at I of happening Delta, Really of ask I Can and and through reason was sense or do spending then safety, the are that a sales is XX%, in is Apeks on maybe to XXXX. a XXXX these money of you seem understand -- the margin, I all

Tim Murphy

that. take me Let

Bill Bosway

Yeah.

So Tim, -- Go follow-up. will yeah. I ahead, and

Tim Murphy

Yeah.

along the the, and end quarters. year of couple quarter, there. So, and towards core cannabis in of and a I We business. off. that in volume those in actually businesses hemp but the And the took way historic business some market impacted the was certainly the market cannabis is purchased guess, with the Ken, the remainder really of first in processing two losses had separate the our property businesses certainly, which downturn, in One processing pieces we hemp that a

Ken Zener

Right.

Tim Murphy

a And than January. underway the series margins core that and start produce in either work lower we we were they normally acquired to… or that projects would acquired were business to we at. had were But We at be doing of

Ken Zener

Right.

Tim Murphy

… customer’s our honor requirements.

the recovery both core along margin combination in levels year and with of markets pulled down this cost, businesses as our are seeing facility move all some so profitability and pipeline to in normalized project we to items the more two restructuring and the refill and and did And of maybe processing in processing and/or through those business lower that help. those with and the hemp cannabis reduce expected we

is but part So, yes, it, volume other of is there pieces.

Ken Zener

Okay. It next that when how seems like I crazy this now is, year year, this broken out. look to have you

projects isn’t at, you whether the on assume side, the The flowers grind I you be did necessarily good that. right, would renewable continue X% really piece vegetable Ag you it was But think I stuff. bidding it’s can that mean to know it seems. would on and what I --

am a as last you I drag just leverage is You just is margin about think of another… guess hear through I this are acquire year’s operating level I trying than well? to backlog say. what is kind a year working There on

Tim Murphy

Yeah.

Ken Zener

… way in to leverage is… say that business think do operating it. I you mean

Tim Murphy

Yeah.

Ken Zener

… XX% generally leverage? going EBIT to range your XX% operating that be with in broad consistent of business, kind

Tim Murphy

depend going project mix. It’s on to

businesses to new whole So out in host that a of there. given there’s it’s call hard

-- So I the wouldn’t processing business...

Ken Zener

Yeah.

Tim Murphy

business. target leverage our cannabis. the that last margin year, ...has X.X% X% produce is a for yeah, than different in But, the than not Ken, general, the

Ken Zener

Right.

Tim Murphy

of and as and markets. improve a integrate operating it we place systems from in businesses back key the the over You then these will see time value put couple get some

Ken Zener

with I now going Agtech, most I stick just out. last Great. known and -- started And and to think, I interesting guess it the you that it’s to have my am me question breaking the, since category

happen, actually in go a within Thank How involved to credit an As and mean, If just or stuff taking final that the or change move does can allows Does gets of state last who year the cash payments I cannabis through, that’s business across question? of take states does national at how instead demand mean the the to the level that. that transfers example, much the state involvement, knows? accept you I business business? for you. and business of it states. does lines because talked about cash my legalization fed have we lines state you continue how or federal the were issue impacting in elevate stability actually that that credit is this

Bill Bosway

on so and have legalization and see is more it what licensing I more and into Board, talk one all come immaturely you interested with that I creates considering now. a because probably even as just to is of the with you more the suspect associated going in forward. we states that and happening process state-to-state lot of which wanted states market. think remain, Ken dealing this themselves, would happening this possible, for get thing is, which process In revenue then been choppiness what part states having The and the the if of are

on played. at be federal angles different and that level be I think could depends there couple the it a the involvement could

think a of little has those each I different scenario.

you across that, that think angle, banking that there’s kind the about. up maybe a there’s snap multi-state licenses to licenses are as think, those But level of buy of federal I matures, most over angle, operators now FDA at state. an and time regardless industry there’s the people trying two So right are have

I think four and I to hundreds two ago whether think how less. time you have that will that And that’s the three next starting see can out -- continue to that existed pairing trying they are that or over happens will meantime, will think, states some continue, forward effectively years, they So you depend extend of kind move in something to come will things I are happens happen Washington. of or multi-state But to what companies the and on and operators the folks as do with. of partner that, you to of those trying

multi-state bit these to it way point. Access their But come gets marketplace challenge a too. the be a characterize evolution would I who I think will more a this so, helpful, operations for of of lot been as And their it’s little it. a easier but banking finance bigger, to small players expansion as as the to about natural up ability funding

think I that front. over balance on will see the that’s time So you

Ken Zener

Thank you.

Bill Bosway

Yeah.

Operator

Walter The from is ahead. Liptak Seaport next Global. go of Please question

Walter Liptak

XX/XX Thanks for description can us and XX/XX? Yeah. guess, know business the profits. doing I silver or numbers Agtech that higher each is in a Thanks. bullet Hi. different But tell their last XX/XX running I you the for units the not question. of

Bill Bosway

Yeah.

in fact, In question. We business. finished Walt, good week effort long our a just solar

of are the manufacturing. relates there’s our of XX/XX more our delivery I’d which profitability using if field traditional world and it. half spent a think long we traditional understand our say part other mapping, as to the used business helping half we model, about of But on -- that that teaching legacy people and integration TerraSmart, XX/XX. So moved cash there’s our for what in to our the to operations is And just week it most a business. business are XX/XX of with as also revenue education and But you there’s is that’s people

well So, we have as excel well. really to there

that’s as So of well model, of simplification of to you traditional about business our walls. is product on that the it enlightening driven as and four applied piece piece inside applied line think manufacturing really to

area Splitting same aggressive the are two working in that that split each last thing So, the businesses. pretty we in out for the in organization. over hard, yeah, our have doing Agtech brought year the We respective we are pretty leadership of these we and business. businesses

been stuff focus have and trying we We a but common over of was years on accordingly the that implementing both. a across the to leverage of ERPs, been all time last single have systems over period five have consolidated kind framework, businesses processes and into CRMs, common difference

do business about similar models they think what of terms for each, the in the you putting very we are in and If things ground.

So is into active. XX/XX going solar very

We well Agtech shortly. as are kick in going that to off here

a been lot runway XX/XX work that And of say a happening. Residential businesses our doing we had of of in that’s and our yet were go still I a in business So lot would to still and there. have there couple

lot and amount it’s years, better. years importantly, last over in ways There’s the capacity I a been work to the as where Infrastructure much is you ability new to ago, facility than business. active see Again, dollars there. So effective a of much done today three tremendous scale convert our leadership our And of three and it think XX/XX very there. in years then was utilize more better four our improvement our is and ability up

this theme think we of when effective So, about we record and us. But there’s be why a meet is, in XX/XX each now what to are needs to done. businesses, of as that our execution, scalability demand front across seeing the different angle still consistent to

So profile each the -- and side. across on of it’s businesses our really demand

-- we done. needs mapping the intense that -- everything work just is and finished are we the question yeah, a very week some be now to of of perfect implementing So, because remapping everything

Walter Liptak

like the there’s doing business Okay. is and entire around Great. doing sounds XX/XX project maybe uniqueness It to some work. Yeah.

great. that’s So

Bill Bosway

Walt, a product, if people words help PLS, It understand. whether or to it’s are different. or Yeah. service whole and That’s really lot the a there, show is, you are replace enlightening but you we a not trying whether it’s -- what it’s

So down us, we are for about of management, because that just if business half our you in project drilling important piece think it. is into is

we going got accelerated way as and consistent that apply well. So in a have to forward

go sorry, anyway, So, ahead.

Walter Liptak

to I some last great. that issues talking to components you. about were quarter you some as were projects large No. Okay. as... want having with NOI, or That’s ask well Thank six five guys

Bill Bosway

Right.

Walter Liptak

what in related I comp then make that that And Harbor sure this solar Harbor about. hearing understood Safe are of Is the because quarter comments Harbor. about the XXXX… to were I ...permitting from and Safe wonder we difficult the Safe

Bill Bosway

Yeah.

Walter Liptak

projects? the large an maybe on …and Thanks. update

Bill Bosway

Yeah.

or a a bit and in out that we four was Those still a that and four, spread be but or Asia there’s particular it’s those online. had specific panel was solar about you projects, component -- for through, getting was better. QX were it’s itself will went into working projects goes talking facility big panel inside. between recall that coming a the a XX-megawatt got issue back are five I The bit first still think there we QX. manufacturing about if a it challenge which And of XX-megawatt offline So, They for the that’s delayed. projects

through. working think I So that’s itself

first So this will those year. in projects finish half of line the the across get

So that’s of that piece that.

if I stuff all permitting, smaller we with talked we time. just for of do are lot had you think recall big projects, deal a permitting Those the about projects XX-megawatt. when those were the we us. We four projects

with sized we wasn’t we in average pretty had were typically project deal, because X-megawatt. big So an one a move, it having past a substantial project the when whereas big doing was

bigger have we gotten bigger have in bit we gotten have little delayed, confident did quarter. into when bigger the in But more things get in and differently like. As do gotten we getting projects, a which themselves developers those pulled -- more which stuff are to wanting it’s we or

the for that was that of -- stuff But side we and deal permitting that I will So to with permitting that. stop have been learn the start. just It’s with you years. something dealing and

it, racking, maintain of had you going inverters, do buy buy December the at benefit with as the if fourth they that that You and up to you kind the think But about to for Safe can are this, can quarter you you Tim can we knowing This you of that and step on years, and November, an ITC down kind ITC is going about an of value the the least end have using to have different last into take flexible down is The you three which so three the step step thing approaches of place forth. described, benefit Well, years down. next towards to how interesting. benefit, you buy of project order that are that people to thing you buy industry year. Harbor of every can panels. X%

project first industry, from following benefit this XXXX the demand of didn’t happens, you that’s show once you commit up out was do in to four of orders. put a when December, you seasonality QX. to got as to of Harbor next show shift it for where overly revenue. and But the really QX year perspective. to using year more Those be of following So, no it’s the Therefore, within the some the in that the starts actually a have there to months happen. people tends anything material just projects quarter Safe to those doesn’t that inflated place lot in or up year start that a that money down, of since But

it couple not ground of it’s country next going February to is more have January the stuff replicated sense for a to because around years see. tough would makes put the -- think to I you that and the of itself industry have weather. And going is seasonality normally the So because in

stepped and have you material a and not industry that have So has of won’t lot forward, that is the was revenue doesn’t just year. see because year seen benefits bought next it down this -- it

years. industry yeah, you and the were we probably kind it that’s as of a by So see of for typically previous situation, reflective That’s well. impacted won’t us, an QX

have day, We they of extend they so real But QX late at a the by people administration such it demand think didn’t. an it. offset, you extension about our not if the in impact to in do not decision attend would to, understand what to decided have So having was the it Safe QX, Harbor didn’t the time. mean

So in had effectively offset growth year to we and this QX we and year-over-year. that did still generate

actually as are a bookings -- it’s market pretty solid ongoing supports demand end I again and think So having demand. quarter good that well, good also good that’s reflecting reflecting good that

Safe that So helps within the Harbor.

Walter Liptak

you. Yeah. Yes. Thank

Bill Bosway

next see it, of either. do I So you the Safe because impact to going two There’s a into think extension of year no incentive don’t will years. Harbor

to no Safe year next discussion this it have as relates QX won’t incentive Harbor, there’s we it. to do because So

Walter Liptak

impact last year? a Okay. quarter there Is happened second that

Bill Bosway

Yeah.

Walter Liptak

September or… From

Bill Bosway

Yeah.

really you or You industry four for can months. have it. a go because to have look back the little bit have you of five always Yeah, you project-by-project,

I up think through months its four April. like

so about So don’t I I over be this of to Again, into don’t QX. what different deal as kind over across -- a going developers have have bleed little what projects you big decided us do. rest for in of we year, it a will the we XXX depends do lot and developers. industry. the of you think project-by-project a know flight know, that’s to could around And

kind it QX in don’t track I So but anticipate big one, deal a of it’s each hard to for us. being

Walter Liptak

back queue. get into I Thanks. Great. Okay. will

Bill Bosway

Okay.

Operator

is from Sidoti & Julio Company. next The Romero go of ahead. question Please

Julio Romero

Hey. morning, Good morning, Bill. Tim. Good

Tim Murphy

Hi.

Bill Bosway

Julio. you? morning, How are Good

Julio Romero

Thanks. good. am I

and Residential ask segment So is the wanted in XQ. to is think, growth the about in rate like in actually XX% sequentially, at the segment. this XQ quarter organic I It accelerating XX% I looks XX%

was I just So you can… hoping if

Bill Bosway

Yeah.

Julio Romero

product growth or what rate? us driving give more a are that on channels maybe organic granularity of lines … strong little kind

Bill Bosway

Yeah. Board. I across the say, would Julio,

of of do with the been have years. We couple that’s done to it has and some been last think work the part I fortunate

channels made have participation across good gains. some progress each with of our We

I initiatives, with that of think Frankly, that’s ability on a result relative focused take us. reduce XX/XX cost of of we more things doing really business have have out our -- been trying to to of to a lot to deliver consistently. fix cost the we -- able costs

do help how customers of you think transportation, their all strategies about you of our So logistics distribution and and of product. and around plan

a just been lot participation. helped us I done, gain that’s there’s think, of So work

robust. stand And shut told quite a lot in looking frankly, February we down our to weather for utilities Residential of by business down was because that. operate say from we the were continues good obviously market I’d to over that our facility. a of QX, The a So week, were of chunk be in to

but people pay and up doing to ago So didn’t so have place we we industry you into the kind people to a and market, regions having have which could things, and a those year strong that I issues overtime its in other we so with forth, having using and much in think, who gains, starting in off material general, of lot participation investments for are But, I made hear us. whipsaw things as with. as had make with of on availability think whole

market with has expansion we execute it’s overall I’d to kind us of expansion customers, additional just end ability where So geographically, a our that’s are. just some good it’s say business. helped strong and gain

Julio Romero

going be forward. maybe guess mentioned that management within is make the segment, cost I businesses up And that Residential the going requiring you it. to four price Got effort continuous

could -- I speak to… don’t if you Just

Bill Bosway

Right.

Julio Romero

stand those in kind … for terms do effort businesses within Residential the of cost of any price there? those doing four of required out

Bill Bosway

No.

our for I lockers. are roofing businesses, being -- most the ventilation, sold same if through think Those and the part think accessories you and the -- about mail mailboxes channels. biggest

with So same group working the discussions and they that have there is that we with are them. of challenge ongoing customers just

different. I Board. challenge Improvement pretty So business same the the much is business, is think across Home HIG our bit the a little our And

We through going are dealers it’s and direct really to homeowner.

in going through are probably reason more giving been to There’s part less lot until successful discussions the clarity relatively I each earlier, there. that’s discussion say, the timely a actually and just customer been that’s we have of challenging So now. it’s quarterly I’d managing implement. see been guidance. continue discussion think an challenging the be to able ongoing I have general, one-off, of right hey, we But but a price not more manner to costs and and we why than some just variables are in eventually, And get are we to mentioned others,

to last one, that year. the rate of throughout of availability the still then then think price and higher and all still year and get into it’s really this throw But environment that. months it availability. And XX that in supply material all overall -- material else. cost for month last something that months everything into to chain year, day forget of attention infection was management is you of about our you we for the If activities today very you close our last kind and drives in huge the relative labor much seven average out spike than XX are XX inflation We paying just

forward. near-term. the job set of issue to changing working of team in it. I a see an our I as that think that that’s have don’t of And focus or really a We be has through to going just lot so lot going stuff last to a year great done the have continue and circumstances

continue is So I talked remain about going level things you to whether to of its high. to will have that price cost or some of the just these think these intensity other things approach

Julio Romero

helpful. you That’s the switching weighted to or... mentioned or you Infrastructure just order backlog fabricated Is improvement segment, non-fabricated it. there. And towards Got improvement maybe I more gears the guess, products that backlog

Bill Bosway

Mainly…

Julio Romero

Some additional color there.

Bill Bosway

think, I starting in fabricated, Maybe see Yeah. we to more non-fabricated. fabricated. activity are Maybe

last a job sealants garages just airports had a So parking coatings that offset investments that and stopped. runways team on did and to lot year great the fact go of and and and

struggled to to part around making last team And in us year really is, good XX/XX back that the a forward. three and which position go a economy’s the great going product So on did put job execution the so we really was and grow years backlog has improvement continues A, I it reason recovering. of fabricated think

DOD the gas that been start up to that’s heavily helpful. funded budgets of So tax and by are pick some

come to we are So some in. to QX we well, that starting kick that’s to really as last year see, projects And us. this important for start goal economy start and really because and B, see and more non-fabricated late get to start order to QX think think, fruition year of then, across the line the of I I the

both it’s are things happen. So of combination that those starting of a to

bill We about are know doesn’t We their everyone all yet. that restructure -- talks not that. seeing exist

of So a seeing what just the we economy. recovery are I general is think

have better able a better either able go to and a position to being to in margin it We we delivery ago a that deal three of get perspective. I projects are just years position not are we as out with and or been to think take in a from result would execute

market go show is starting to am to ability that. market our expand excited our think flat I been I that’s So the about and during up

by of and the we able market were few goes go economy than ago. the get to a things So bigger that after the supported piece are we actually may topline, recovery as drive the topline years other

the So makes that also starting sense. contributing see. we are That to that’s I think backlog to

Julio Romero

questions. Appreciate does. It it. Thanks for taking the

Bill Bosway

Yeah.

Operator

I like to remarks. session. question-and-answer the would back Bosway closing concludes to turn our This Bill the call for

Bill Bosway

today. Well, again, thanks everybody for joining us

update the KeyBanc Materials Industrials European looking Conference June on marketing a We and in will attend participating well. in to our giving quarter Xth number Basic we forward progress as going an to of earnings and then dates. really and are And and be the second U.S. release

day. have you thank a and So great

Operator

today’s concludes This conference.

disconnect your at time. your for lines may Thank this you You participation.

Gibraltar Industries (ROCK) 8 May 212021 Q1 Earnings call transcript