ROCK - Earnings call transcript Q4 2021 | Gibraltar Industries, Inc.

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Operator

Greetings. Welcome to the Q4 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

You begin. may

Carolyn Capaccio

Thanks website. which differ financial the GAAP also presentation, to slide earnings was forward-looking forward-looking respect you or company’s the operator. release is future Info that as performance to this section results of management guarantee acquired in available from non-GAAP slide Investor statements can are earnings of These Good presentation that contain Officer; The December found through financial financial remarks the joining of risk not presentation use Industries' in Results by actual read in reconciliation us earnings gibraltarX.com. Gibraltar’s morning, company’s performance Also its call during on at slide President included the release XXXX adjusted well and year-to-date to release future everyone, statements and of was the can both with With are Chairman, of and that anticipated filings, measures. Chief of will on as the be statements. thank press in the earnings events, Tim me press end XXXX which results Murphy, may SEC noted the press implied and Tables or advises the two website, Financial Chief are release morning, and expressed today. line press results. and materially Bill these Gibraltar detailed measures issued contain be Gibraltar’s company’s the TerraSmart, the Gibraltar of today. Bosway, results. the Executive you Officer. as for the the factors accessed issued was

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

William Bosway

good everybody, thank today. Thanks you for us Carolyn. Hey, and joining morning,

financial year, then performance. overview discuss your and and an discuss and Tim We'll fourth the our XXXX, with for open quarter call results, then year our of then and well the will we'll as start for full review pivot the will plans We as questions. guidance

So let's year-end turn XXXX titled three, to review. slide

quarter good contributing a the growth continue positions results market line XX X%, we as by that off of XX.X% to markets. growth year participation across and gains business. grew January were in fourth our driven capping top build The So, we range end previewed with our overall business price and within organic the leadership on

$XXX with remained continue enter sorry. support Our the during acquisitions as year XX% -- or and robust momentum demand contributed growth order our the the order Customer up to backlog XX%, year-end, of activity we at end XXXX. reaching of year at million

and lower than positive and growth EBITDA of inflation and were the margins transportation. While year EPS throughout availability we from adjusted adjusted accelerating headwinds labor operating despite materials, adjusted generated in expected, income,

$XXX $XX million, we and were to well, income particularly to and our disruptions X.X% X.X% manage first and share. rates their keep operating worked infection As EBITDA fourth $X.XX million $XXX teams to safe, to increased net grew in Adjusted grew when diligently COVID per minimize quarters Adjusted or million. and X% from highest. income COVID to adjusted at the

last Agtech, held and lower on residential sequentially managing of the corner of revenue to pressure-tested business. our expectations challenges. environment drive modify margin the into year. had XX some while Although, XX% and paradigms, to flat and and which improved hindsight XXXX. performance margin of and margin reflects our in points was inflation in We last our we have turned organization Margin the that over versus below move through our basis growth improved profitability it delivered In modestly year, volume, and year, quarter, improved fourth improve we we processes, as supply XX.X%. In effectively chain really our again systems well during an operating and better all we our

our and operating despite a as increase in quarter million, for of significant we hard entire delivered execution. XX% Renewables, industry to year, XXXX. systems made for we executed well. quarter, of also while integrating difficult We and just year and fourth business, year progress margin delivered and supply issues adjusted significant really EBITDA chain improving the offset And the growth strong improving demand inflation general fought over $XX the In customer in an in the Infrastructure,

consecutive commodity price fourth movement gears fifth switch more little turn market a seven across slide about marked of environment. to bit in and quarter The four high our core prices. Let's operating talk The inflation quarter the current experienced the also commodities.

elevated XXXX, at still its course, hot-rolled and we of reductions during Unfortunately, continued higher today's is quarter, Over-the-road polypropylene to remain rise plate versus started fourth resin Despite an in quarter. ocean prices freight reversed though quarter, further QX, different. these price aluminum commodity prices the market elevated XXXX. remain both again currently in steel, rates price transportation beginning and during are the coil and the or increased January. forecasted somewhat during pricing the elevated Structural we steel anticipate aluminum, also will rise to and in XXXX. to environment see and in While increased situation,

and we XXXX. rapid experienced nor not currently to do increases see throughout seeing price like we are we severe First, expect and

increased example, per expect situation hot-rolled don't coil For record-setting that we per and creating incredibly $XX QX, an XX-month in challenging steel to repeat. back XXXX, really week period, starting really ton over

better expect minimize the investments in supply and to made type have disruption chain we Second, supply XXXX. of experienced consistency we

all activated to to had five in different playbook initiatives, key during were which through environment. active much continue learning our to of focus given operating So, or And market we've on manage a we evolve XXXX. our XXXX,

in time First, continue keeping and price manner. balance cost and and to manage effective and a

balance QX, last residential and the both year. and in improvement cost demonstrated margin was business growth to as generate revenue So able price over

and better ability Our have align with project project be The increases, various projects. their pricing demand for it and customers based surcharges, et implemented strategies whether shaping businesses, project pricing Infrastructure, approaches, teams the to throughout improve that's and cetera, better and continue Renewables, cost life cycle. Agtech alignment to

with have focus Secondly, simplification project operations. on well and really as and XX/XX, as land to line and based enterprise our support initiatives businesses we to customer field system optimization product continue

experienced business. higher propositions during where reduced we and Fourth, enhanced inventory seasonal new Third, design vehicles development, price to automation inflation products with introduce where the for optimization. for of availability key demand. and modification, our ongoing markets more through fifth, lastly, our value more chain and business skilled specifically implement cost products, the in alternate year there labor materials in installation optimization, is supply -- residential markets year risk. initiatives our renewable investing launching We're And invested operations where believe components autonomous support times

year, macroeconomic our our well. of investments We various year, But long-term of with multiple both and the Throughout growth. second of it end I and focused a in progress With industry simultaneously me industry let our to review Agtech demonstrated remain significant Residential, magnitude, and headwinds, challenging proud They Infrastructure XXXX So, experienced, half And both and in across expect some headwinds in speed enhanced and starting we're the leadership XXXX. was XXXX we as including and going of better headwinds in as I to a am performance that's think generate in haven't something businesses And our on particularly improvements by energy markets XXXX. position never with attractive. market, have year converging steadfast our markets. businesses team. remain many XXXX, really, We a changed. Tim very that, in we made short-term more drive solar team. the revenue The over our end results. fundamentals our for Tim? detailed the although, turn

Tim Murphy

through consolidated five. everyone. segment results, and take I'll good Thanks slide starting our you Bill, morning, on

offset EBITDA driven our reminder, to discussion quarter-end will increased non-GAAP lean respectively a adjusted of added measures lean in as $XXX X.X%. continued the our initiatives supply Again, X.X% at growth by with We of press XX.X% As of actions, backlog by find and XX% Mailboxes. pricing, adjusted line EBITDA X.X%, gains Total set, and driven EBITDA EBITDA and X.X% from chain measures in performance were compression our fourth Residential, operating XXXX you demand GAAP these our initiatives impacted, Architectural Also, adjusted gains favorable as in market non-GAAP margin revenue adjusted and and quarter transportation XXXX, approximately cover as Residential afford million, down was from end results well and in in material, segments, in up fourth by than the operating segment and $XXX.X enterprise release growth disclosure today. announced, supply segment greater EPS increased to XX.X% quarter. acquisitions income Adjusted Consolidated in labor fourth volume and continuing margin improvements higher margin generated in business. volume million. quarter, TerraSmart costs, Infrastructure and Agtech. reconciliations issued of metrics the chain adjusted quarter Infrastructure quarter as mix Renewable the and by can sectors. more previously from in despite my Adjusted the over comparability operations. pricing across and product our across challenges and productivity participation continued we've Organic the to participation

generated margin delivering costs operating the basis macro difference allocation with points, price and Renewables margin rate stock during adding sequentially market organic Adjusted balance improvement. we XXX achieved due demand rate to project of X.X% challenges return increased as compensation to $X.XX XX.X% struggling component as margin consistent the certain executed and prior and industry schedules. points fourth panel billion, where the year and disruption. key tax in the respectively positive year we to with Agtech supply Residential Our growth XX.X%, labor, revenue cost chain income income XXX from fourth Lower revenues. contracted by as adjustments. benefits availability transportation through contributing the excess quarter Consolidated and quarter. grew and margin tax EBITDA states in acquisitions the our basis Infrastructure limited year. with and growth a provision over to accelerated an in and improving

X.X% And in $X.XX strong EBITDA as in with income $XXX.X These are I sustainable to TerraSmart, net tax increased increased results to adjusted the $XXX.X from the adjusted in we the XXXX, line we of $XX increased results EPS income growth. we And was issued and where generated the to and the revenues. XXXX tend Our a in Northeast in over more result be difference income in that's in mainly due rate taxes tax generate of which this higher of the income strong states acquisition mostly to adjusted to rate end preliminary remains to double-digit year states, backlog XXXX January. where markets allocation demand million, per million million. with X.X% share, X.X% mentioned, higher. increasing with

basis, field period full Now the a significant adjusted and driven for our strong I X% Segment operation demand. previously pro decreased revenues we year impact quarter optimization tool fourth market X.X% and XXXX. let's and revenue over slide projects. decreased chain mentioned, demand decreased year. segment, million. solar EBITDA Despite to from we to the $X.X we the driven to each design to with adjusted Adjusted segment. two six, strong disrupting up X.X% subscribers by On we the Renewable operating TerraSmart in quarter and $XXX our headwinds XXX% factors by growth forma experienced, Organic continue saw contracted with pro remained margins despite and starting market continued X.X%, $X.X and income the saw review Underlying over backlog Segment grew XX.X%, respectively field by increase both TerraTrak from up million Sunfig slippage were schedules, in the slippage challenges contracted XX% prior product year on impacted disclosed. EBITDA in solar million supply tracker forma the operating to full in to revenue on acquisition. X.X%,

field per second, and modifications project operational redeployment that efficiencies And crews revenue unanticipated First, scheduling type unit install panel by impacted and additional higher steel, drove projects. significant in which inflation to resulting option changes. cost canopy support to by structural rescheduling and panel racking created of of management, field in racking availability and

to projects XXXX. expect the canopy half first off of We the from in margin impacts affected roll

year and should new of basis, Our we product, X% product scale. XX% respectively. delivered pro TerraTrak On additional was revenue by full also margin forma and the in product tracker quarter this of build for margins margin our XX.X%, on mix installations X.X% operating as experience EBITDA and grew and a or improve adjusted impacted basis and margin adjusted we a

remains margin business plan. chain the momentum as renewables to TerraSmart per activities And track XXXX, with information into of in-sourcing expect margins we integration Our supply for development, on year. move we systems, with the throughout deliver double-digit organization, gaining process recovering and

and review revenues driven our revenue continued increased growth. segment. transportation materials, Let's sixth move double-digit to product combat of customers to labor of and share our platforms. Segment wins inflation, wallet expanding Residential new quarter cost slide and participation with driven seven existing expansion customer and by increased additions, grew consecutive pricing gains by Organic Midwest new in both XX.X%, XX.X%, the geographic on existing to

as margin example, basis commodities. XX%, two an our operating productivity timing XX of less acquisition aligned new adjusted We product mix and of of grew in well integration both points, labor respectively Mailboxes as For Architectural costs additional inflation the the disruptions actions through of benefits, expanded operating on contributed and products better for Adjusted growth, points supply some success experienced Segment metal the QX EBITDA and with pricing income prior improved. The market less line with XX/XX track. management slightly and expansion adjusted and quarters XX.X% roofing respectively. than better this slowing and existing price of with as along as EBITDA XX the customers. basis and initiatives versus chain X% business and

supply management, are to support simplification, on customers' We work needs and price/cost our automation. continue and partners chain maintaining in-lining with to our focus

expect this bottom in top line and growth We during business XXXX. continued

efforts Agtech The of eight of to up XX% and mix in for increased of a improved key delays the state permitting XX.X% to work The supply delayed EBITDA in margin XX.X% third timing quarter in improvement and backlog supply revenue revenue markets. adjusted of water experience additional the last produce delays the local over segment. execution XX commercial serving chain roofing disruption was Let's the to from glass, over basis flat improve by revenue decreased continued as and projects points, optimize carwash demonstrates timing successful over revenues, initiatives, the move and solid margins continue January as Order retail, operating to product the year-over-year to Canadian of by the our result year-end quarter, continued XX, and business. January in materials chain, essentially and business, And level. as lines core to input were impacted in institutional particularly impacted XX% permitting sourcing XXXX XXX Segment respectively slide lean review reduction January. in despite to enterprise ongoing related Segment of and activities, modestly across cannabis backlog despite the projects we've XXXX be growth however, systems greenhouse driving with and at up bookings and which continues through operating inflation business benefits this produce margins. performance the done during integration rights.

segment. strong backlog our slide as margin benefit mix. improved expect solid to non-fabricated convert to Infrastructure demand And products, we of given Segment by from additional demand forward, let's from and nine system projects products continue up improvements and on revenue customers acceleration Going funding make review availability move caught XX.X%, and driven positive for fabricated deferred to we in as by XXXX. momentum for additional increased

backlog Order closure Ita, with affected million QX XXXX. mix infrastructure of up structural was supplier which into impact was days of We operating see benefits and XX/XX due headwinds points the adjusted incremental decreased government basis the revenues. percentage demand higher for moving in products. plate steel increased smaller XXXX. the non-fabricated XX of as XXX higher fixed manufactured as of margin favorable of XXX Adjusted EBITDA on end towards over solid amortization with Hurricane a basis $XX challenges to the inflation margin products, expect to and depreciation margin spending the relatively offset and a points to labor XX% along availability of Segment and

expect of XXXX the business to federal this Act to the bottom in JOBS of We top in and both end XXXX. begin expect see improvement impact investment towards infrastructure for the and line continued the

$XX slide our inventory our cash the expanded benefited cash $XX impacted discuss million have down let's turn. the through operations our guard meet Now to [paid] continuing we a million XX, quarter, net on net from and paid customers' was position. move lower of original income, requirements. as expectation and hand continuing $XX At in capital revolver, our a We to XX:XX had available of of receivable than our in compression approximately one reduction accounts against investment cash substantial on tenth margin leverage million disruptions liquidity was on XX which during revolver December we to we the material to chain we ensure supply in million $XXX quarter. our Working from and and collected,

We on cash flow operations. using XXXX expect to our pay balance generated the outstanding from revolver during

return We to liquidity levels more XXXX, flow growth. during cash for of expect strong to driving free normal

Now, to call I'll the Bill. turn back

William Bosway

Tim. Thanks,

XX, our slide our and an and for update give we'll to move portfolio Let's on XXXX. focus

mentioned and So, our of markets supporting we to continue the position strengthen remain I our end robust, as each build our markets. earlier, leadership in and fundamentals

faster accomplishes acquisitions. in grown two through we initiatives last organic market and/or each growth revenue rates. It respective investment the Over in business than have growth the years, key

platforms, drivers, forward. and to we've our Our participation five growth growing gains, organizing taking Renewables portfolio. different to XX them units is a Residential, faster of simplified our result Agtech going and XXXX, price Since adding also operating market solid management business and businesses

A environment. business systems lot the work focused consolidating and been and the integrating challenging during strengthen organization. organization, our launches to portfolio, brand new strengthening and building Our of day-to-day effort, completed executing covered legacy operating has acquisitions, our simplification companies, a and business good

Renewables adjusted make businesses XXXX, scale adjusted during our two These us plan. in operating Agtech in we and experienced improvements but operating performance and businesses help performance of Residential and XXXX. delivered Our necessary the headwinds in year margins margin to solid XXXX, were margin while and deliver short investments double-digit continue Infrastructure industry-specific to

for and concerns to commercial developers remains as in segment, we'll chain XX, move we activity our trends inflationary supply disruption slide as let's with initiatives each industrial and intent backlog industry market of XXXX. and into start the robust and let's subside reflecting key up the further market address So, customers General to and anticipate discuss Renewables. panel their a demand $XXX and is remains and strong projects. move variety order to in XX% the our to in Customer The to lessening industry continue with disruption ways supply strength general of market. million, business,

a Here's industry. ongoing our panel of concerns is quick supply the summary what for driving

polysilicon currently products the release silicon made in starting which by also of located Customs withhold in but WRO, any is Xinjiang make by the products allegations and the materials verify the of silicon use WRO entering June bans province are a The companies using The allow industrial order, First, panel and solar-grade WRO issued U.S., panel based can materials Silicon containing importer U.S. forced the on companies XXXX reaction to solar in is in a Industry Hoshine WRO other if Silicon Protection contained Chinese not large be Hoshine to province. Industry, to producer Hoshine Border to labor. products in as of back products. from Hoshine imported polysilicon. is solar was

import response on an on November the duties of claim anti-circumvention the panels. in petition March. recently Department filed -- importers being from filed in solar sometime And with circumventing to is trade is preventing Commerce expected first the in initial This this second with XXXX. the on focused dismissed Second, focused preventing petition case

of solar steel, the since substantial strategies, creating year. the XX the begin more absorb. has rapid increases company year The and positive panels inflation industry. struggled sustained inflation been to supply sources industry in As have costs continuous has acceleration both coil wave while a said, the declines That months. General first experienced steel a slow. expect structural recently seen a sourcing for seen with hot-rolled is the entire quite was to We've inception, evolve we in supply. which rate over industry Effectively last the issues to in of everyone shock industry continue consistent continue, the also price for compliance price finding development of chain we for its XXXX has being input to

prices to today across are commodity seeing expect allows to we price effectively. remain plan the we Although, to projects the industry more elevated, execute stability

and they to we as Finally, policy benefit ITC benefits, relates we the XXXX, in change as do any follow it expect current not structure evolve. will during discussions

early to we solar year, subside input into costs. industry to customers and And quarter experience summarize, elevated those move challenges during supply of we continues mainly in to panel will So, optimistic, to months the as while XXXX, XXXX. are our the similar headwinds headwinds start these the persisting fourth faced in

is up, expect given cetera. started is solid full We to QX customer commodity margins in step for backlog more continue and the to the year, robust, activity stability. et assuming We price quoting and

it's Renewables our and and focus in the our for So, on initiatives top agility five we and this flexibility maintain business. critical execute market

dynamics First, the chain deal and to closer the earlier customer to potential growth and and on chain optimize We process we scale collaborate and with continue must today's process capability must supply with have. supply understand support to inherently our management. in market upgrade solutions momentum work project systems to and disruptions customers we

slide on to momentum our find continue initiatives improvement XXXX. solar our let's helping the engaging specifically for the trends, in-sourcing and customers earlier discuss also must growth drive initiatives. Fourth, set Third, strategy, cost XXXX, to fifth, solution them our technology Stayed then must right the residential key we synergies as chain that gain the the acquisition some project our delivers we optimize implement and tracker planned their of XX, for assumptions now best we in margin and finally, investment. scale go-to-market and supply experience. must TerraTrak TerraSmart returns continue for And the we process,

and inflation substantially. in has markets, residential has our new market with increased the increased other significantly costs pricing end home As input

not driver result, the market, of have only hot relatively is but we current situation. a inflation As the a

of for homes few We see a there large of to new well aging over fundamental and shortage years. inventory the supply and for and continue a as favorable demand dynamic repair homes homes, need relatively now a also driving upgrades next existing single-family is

While housing positive. of supporting have the some straight we year. We remain customer solid good in XXXX investments, and order multiple market expect line exited with impact support start on to the a increases fundamental future backlog and activity with the for solid

Our supported inventory price by management, quarters is chain participation for believe demand is and challenges mitigate preventing market gains We the second to the supply customer XXXX. focused XXXX the supply potential demand and both management third growth, the in experienced chain disruption that peak into of going traditionally industry the industry. quarters, and type on

So, segments four products initiatives Residential and and and through geographic in new the for new for to core expansion with One, services continue business. gain participation customers market existing there are regions.

continue Secondly, partner dynamics customers evolve. market and as price we must with our proactively management initiatives

customers to with further support digital upgrade our to capability our Third, system system collaborative advance ERP execute business optimization.

cost and to facilities. important fourth, accelerate during efficiency revenue demand generated, improving business and in with we our our and differentiator when business per dollar projects acquire automation finally, additional of of And our driving our labor customers. doing our us, XX/XX For for lower input peak an particularly the for periods is labor us

Agtech, expect we the in five over produce industry review the similar to in environment continue slide to the start agriculture both years. investment and to Agtech, move in XX and last To and assumptions our growth Agtech X% controlled in the Infrastructure key number XXXX, Commercial for trends to rate with grow reasons. initiatives annual a for to segments. of to invest Let's X% growers

years, which very environment has continues First, the controlled around large-scale attractive. been high-tech be of for economics to XX-plus agriculture,

ability via inherently Secondly, a produce and supply is to attractive to across vegetables year-round selection fruits retailers. of growth the cycles larger multiple also

a operations expanding the farming. moving in is solutions the seed the speed growing growing and for controlled water fourth, optimal development pace reduces innovation at of the footprint and And market versus traditional both accordingly. Third, environmental land requirements significantly and rapid environment outdoor

after continues We to we with momentum customer we also exclusive expanding segments. carwash legalized new retail in XXXX. and a in expect our business start processes and structures that continue for both half year nationally. expect of in cannabis, in And expand benefit retail, back commercial this In for licensing our In carwash are partner a to these delays the should cannabis states of will and states to the this progress, accelerate year. limited second sector

we have three Agtech for initiatives So, business. the core

we worked that acquisition, planned. higher margin must Thermo lower our projects execute have improvement margin new backlog now the First, customer through as margin deliver we and with inherently produce

business Switching Secondly, state minimize of as and drive to structures customers retail chain structures, the infrastructure Legislature's partner. our of demand the execute And new supportive has glass our and/or rollout costs. drive to directing the our with of we greenhouse expansion strengthen structures This, year. continue our for to and In to predictable must the scale cadence. and eliminate runways and economy roofing expect the and solid later supply funding project with project and investment second more Infrastructure. in which ramp DOT disruption Infrastructure the third, plans in its started become our carwash in additional budget in half for turn, field reduce bridges, implementation we improved, also in to consistent surface should more funding XXXX. we in starting bill experience protection should overall

plate and steel, bearing products structural key our for to commodities prices expect used joint both also and fabricating We remain elevated. in

three this have core business. initiatives We for

quote-to-cash with customers, XX/XX optimizing improving must steel by First, our and manufacturing footprint. accelerating inflation our plate structural we mitigate process

our to improve And then funding need in forward bill third, strong infrastructure processes its core growing budgets. and engineering business. from we to Secondly, maintain systems, demand support our we makes way the upgrade the operations to market to expanded as and state additional capacity continues recover manufacturing profitability to to the DOT continue

and review XX, So, XXXX move now our we'll to let's slide guidance.

demand So, backlog order we XXXX, the and remain markets is solid the business fundamentals our and enter long-term across as robust intact. our end supporting

in made organization I'm continue confident the costs full our expect have we the margin into elevated, given experience dynamic we and labor, deliver and remain. our as XXXX we remain year, as processes, in market environment be XXXX, XXXX to learning expansion execute transportation We investments challenges to ability toward input growth our move to objectives. systems year and the as we and enhanced our in pandemic

adjusted for the in and earnings is range $X.XX Consolidated XXXX. compared between in $X.XX and for compared between between range is guidance in to $X.XX EPS follows: range expected XXXX. is GAAP XXXX $X.XX billion $X.XX $X.XX and revenue year to to compared And $X EPS to Our $X.XX billion to XXXX. and full to billion revenue is expected $X.XX as expected

Finally, I team ever and thank you most unlike effort the for in just to experienced. want on everyone any year of XXXX. to -- us again say a have resiliency Frankly, their Gibraltar

Our learning has us to XXXX, for after forward getting tremendous opportunities and look it. really created in XXXX we in

questions. with up your that, the call let's and So, open take

Operator

At will this [Operator a time, question Daniel Instructions] your question. with with Moore Our proceed we is CJS be from conducting first session. Please Securities. question-and-answer

Daniel Moore

more. impact from Good morning, what What then, declined details was Thanks for into volume pricing? was forma bit Bill. Renewables. and revenue X%. questions. Good the morning, the start And Pro the -- get Maybe a Tim. little impact with the about taking we'll

Tim Murphy

It's getting was as Yeah. teed It's obviously push demand timing. of Dan, not projects some just slip, just and the But there's large on market. the the businesses in other not in on just from going. the a up volume because there. as the reduction some pricing of really schedule

Daniel Moore

impact margin schedule of the solar a availability at raw much described was as basis, look slip timing supply of I panel chains, versus on you materials? when how price/cost year-over-year it And

Tim Murphy

schedule to of Yeah. of cost in the steel really and XX/XX. related specifically I chain split sort incremental costs material to we it of the structural of the and supply related the XX% at XX% disruption sort inflation. experienced

Daniel Moore

to XX% when expect we the do that get back? And

Tim Murphy

projects all through there adjusted work have, quarter. we of so, end be gone hangover We all second of the some it's by We've projects. as and the the think those rest will we of the

Daniel Moore

the kind price what gains. participation the growth Got for -- of it. general strong maybe question And there, resi. as same then, well of as volume versus was And breakdown quickly and

Tim Murphy

Yeah.

get both started expansion, some I geographically, in again, we year the I -- customers called this of with that around But we existing roofing however is and inventory second the up both days not of many customers than carrying we out, the and resi. think, half price reason We more team over broader to volume instance, was that. that's additional wins in that continue the part also, the we than And picked of do on we steel a on hadn't have. based some in basis, expanded we're that covered. actually driven would fact can of That's usually bit historically ago when And more in products. just -- days the industry regions some have a wholesale supply. order the and our year sort a we can work we today by everybody Midwest, in to turning

Daniel Moore

the and in price and the given for comments back. top And guidance, line. can relatively material certainly a much to longer -- growth more, and It much about we've of dynamic is in it. The seems that of jump redundancy expectations? volume the the volume EPS cadence any inflation the ramp is just generally year. And low But maybe line And throughout the and one about kind imply pricing the terms Thanks. I X% sorry term the but how Got that the volume? -- growth relative implies -- questions, your of of growth, raw seen? midpoint how in to EBITDA actions given at

Tim Murphy

Yeah.

me, the at environment of -- inflationary most of outlook on I for think, called And costs. laid it fourth during Dan, cold-rolled, our that's a bit And -- we material down quarter. peaked look XXXX -- we the of. the most has since the that -- the use most if sort one sort and declined Bill use hot-rolled, commodity you the out slides, which to of is notably

our raw costs transportation moved so, that cost significantly. as for materials when anticipates it's pricing one not because our labor up, obviously, a And the investment do to plan usually recognize through system. one we are adjust flows but And that pricing some costs,

we some so, And plan. baked the that into of

whole So, how get on overall, the little business, got of along X%. reduction with think is really growth you've probably I the price you sort a to

Daniel Moore

that single higher the volume implied growth at midpoint. mid correct? or So digit Is

Tim Murphy

Yeah. fair. That's

Daniel Moore

back any I you. Okay. will jump Thank for follow-ups. All right.

Operator

Romero with & is Sidoti your question. from next Our question proceed Co. Please Julio with

Julio Romero

for Tim. the and Okay. taking morning, Thanks Bill Good questions.

William Bosway

Good morning, Julio.

Julio Romero

XX%. operating that inefficiencies you the the segment, margin And of for segment XQ. to to know that guidance seeing should regarding Renewable terms your expectation So, I operation I now? field does through renewable continue related and in appreciate What double-digit the assumption WRO assume the the you're mentioned chain supply disruptions

of but you could issue into that of that kind outcomes mentioned, maybe the assumption? WRO for range and baked I of talk slides think one what's about if your

William Bosway

closely have it discussions way panel really what that months they current them, as we working in, our our those somewhere, but warehouse with et into cetera. you spent access availability. So, flowing in have with And have Julio, around on to of a this don't country? and they we've hand is projects customers Do you in them in everything year. last Are X locked plan the the built do more panels relates to solar have kind they

think to So, are guesswork and out, take but mitigate also order of reflects them, not around things to in those our we're that built us. for I of project for the only of disruption, kind trying which trying activity, some some backlog

industry time. mentioned, So stuff, input one three about. months, kind whether think some going six can The months quickly. to that's on pretty broader go is things And to of change or I that's for

were held. of an released were that As number that panels there week, being were just last example, a

year. ways we've So, last the of industry dealing navigate with is that finding these been some the nuances through to

adjusting been getting materials people those And improve in have have taken those chains to effectively panels have where so to evolving. you get that your you time from that supply panels. don't they're happen. for polysilicon It's through, their panels Hoshine And included and to for

and some last way So, optimism options. that's than finding because a through months there's now in they navigate why that six that's pick they're did better to to think in they so, I that starting other up, the from or the field folks have

for than through but gets more that And the positive get. way QX that's able that we're not in whether to is in a People take most they we a percolate supply the here the time up -- much and we'll everyone's has don't But not on been more as next stays are the what time some modify and industry sourced disruptive the chain. been with. the rectified, on around. to that to or industry Commerce that before. not. and things in disruption, than working to things this you'll one Department in play -- seeing if accordingly. is more And work some perfect. days, think to run do, these some know, anti-circumvention it's the in deal out. we're more choppiness anticipating modifying QX a polysilicon has wag the don't optimism were starting know And -- the we've into and to the relates deal that. people XX And get in important panels to stay start are tail ever which When really but will the let's itself to they having that projects disruption field work the that polysilicon -- all based to on settle starting then of or other or not next parts effective while, while. it that hear with about it's will start a will It not industries for it takes industry. So, dog of have and was but of people tap a out really to for probably in assume There's -- of lot There'll situation way by the the there had China to XXXX cases most work covered that, see then be some additional going WRO I WRO to it in take they and still or And

our into So, the hand XXXX. for us That's that of some the customer, that's you have way of it in each the comes. do to kind go of some where the going disruption. through thought have projects on and of with we what about building do mitigate the terms how plan optimism base sit of But we in down, It's plan. we

Julio Romero

kind really making is, WRO gets kind Got it. a regards then supply in understand resolved? more hand of was into you of That's really your now what's call helpful it's on panel to of assumption to with there baked when

William Bosway

your point. control We can't Yeah. we something on rely regard can't to in that

and and to there through the what's and see tried what's project sit not. way down we've every So that's go with

is sure a deal things to constant line. -- something has mentioned, this making it's that So it's never I just battle constant are of as And had those industry -- a the with.

to processes systems and to that's the do months. And entire in working really across what had industry so, tighten we've And up. the to last hard been try six

chasing of kind Just this.

Julio Romero

other polysilicon? Renewable My you seeing shortage are question segment inputs staying second on just customers of your material is, the than -- are any

William Bosway

field. number one been used been -- that's in in mean, inflation come I the across that's issue. Panel everything obviously there's have there is the

I panels issue think by availability. are far, the number one on

it issues components. XXXX, particular there were think in buried on some I

be these a what's think, the so to happening supply/demand worked see to as the payables. out apt got supply more things other it. easier more But the been items basic impactful than on have is I issue, don't being going with navigate those it's as because those other just as those have think panel been through. panel, near I not We

Julio Romero

cash And talk for Does working that the just perspective? sales. assumes from be last my about is just year? to Understood. back normalize Could will guidance. the you assume maybe working that neutral a capital here about Okay. capital free one XX% flow Expecting -- what to to on of

Tim Murphy

in the of a residential than more the inventory we've business, the as not labor, half we little improvement, or a what a we'd for again, slight historically side we our huge build that to season investment a the amount a our you'll maybe bit have I is see as think busy There built used past, fair in get actually to improvement. first And doing we in because of two hands harder temp and that's days, on. day continue and plan, expect, we're

the not earlier. us. to able business. the then those normalization to on that thought say maybe we we yet, year, We're staff our sure back -- build to the improve is adjust to needs, making pre-pandemic want full-time any reduce to and by working a we we're through environment supply would customers. larger understand hand. some had our And just we've enough that as what our in important I we'll conservative got wouldn't customers' not to I move So, meet be have that's there'll and be -- operating we And just say and today with but little means do We're levels because to that. days

Julio Romero

sense. Make

William Bosway

of one the aluminum. you with on -- commodities, is our at most is an if look one the we have that concerned perspective add to things I'd availability

Europe been current So, an went the the as we on smelting with the of this last amount year, impact in few months, But into capacity has impacted -- that any actually ongoing this aluminum from given has the issue and we energy Russian, really Ukraine prices of QX and there's in excludes aluminum. influence industry. particularly Russia

And to So that's come been down aluminum up. back off-line and bounce for that's why time. start you see some

we is us. as -- earlier but as which we that said, that we for a result, in And good to Tim of have brought -- supply we've locked so, the ensure And that in, that.

were much we difficulty]. so that dealing inflation on aluminum, availability. commodities unavailable, more [technical year, Last around less steel. multiple and much year, on This less that's it's So we had both with so

Julio Romero

very it. will on. pass Thanks I Got it much.

Operator

the reached Bosway, now question-and-answer have session. over And closing to turn We the Bill will CEO, the end of call remarks. I for

William Bosway

months Vicinity with report speak our Spring to we'll to we We'll be in for progress. able I few again joining everyone March, first when Again, quarter at and us a be in presenting thank want Conference you today.

to look everyone appreciate in. forward calls. calling and Stay you. So, and follow-up healthy I Thank our safe

Operator

participation. today's This you time. may for your at conference, lines and this Thank your concludes disconnect you

Gibraltar Industries (ROCK) 23 Feb 222021 Q4 Earnings call transcript