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Gibraltar Announces Fourth Quarter and Full Year 2022 Financial Results

2022 Revenue: GAAP up 3.7%; Adjusted up 4.7%

2022 EPS: GAAP up 13.8% with Charge; Adjusted up 18.9%

2023 Outlook Calls for Further Margin Expansion and Cash Flow Growth

Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the renewable energy, residential, agtech and infrastructure markets, today reported its financial results for the three- and twelve- month periods ended December 31, 2022.

“We executed well in the fourth quarter and remained focused on our key initiatives while adapting to the ongoing fluid external environment. Our adjusted net income improved 20.4% and adjusted EPS improved 28.6% on a sales reduction of 5.2%. We also generated free cash flow of 19% of revenue as we improved margin and working capital performance during the quarter. For the full year, we delivered revenue growth, adjusted EPS and free cash flow within our stated outlook, and GAAP EPS within our recently announced outlook,” stated Chairman and CEO Bill Bosway.

Fourth Quarter 2022 Consolidated Results from Continuing Operations

Below are fourth quarter 2022 consolidated results from continuing operations:

 

Three Months Ended December 31,

$Millions, except EPS

GAAP

 

Adjusted

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

Net Sales

$313.9

 

$334.4

 

-6.1%

 

$312.9

 

$330.2

 

-5.2%

Net Income

$3.3

 

$9.8

 

-66.3%

 

$22.4

 

$18.6

 

20.4%

Diluted EPS

$0.11

 

$0.30

 

-63.3%

 

$0.72

 

$0.56

 

28.6%

Revenue decreased 6.1% to $313.9 million and adjusted revenue decreased 5.2% to $312.9 million. Adjusted revenue was down 9.8% organically, with reductions in the Residential, Renewables, and Agtech businesses. In Residential, volume was impacted as the market returned to historically lower seasonal demand patterns as supply chain reliability improved. Also, market prices began to align with changes in commodity indexes. The acquisition of Quality Aluminum Products (“QAP”) partially offset the impact of Residential market dynamics. Project rescoping and rescheduling impacted the Renewables and Agtech segments. Demand in the Infrastructure segment remained solid.

GAAP earnings decreased to $3.3 million, or $.0.11 per share, which included a previously disclosed one-time non-cash charge for the write-down of $14.0 million, or $0.35 per share, for the held-for-sale processing equipment business in the Agtech segment. Adjusted net income increased 20.4% to $22.4 million, or $0.72 per share, and adjusted EPS increased 28.6%. Performance was driven by profitability improvement in the Renewables and Infrastructure segments through material cost alignment, field operations efficiency, price management, business mix, 80/20 initiatives and the share repurchase program.

Adjusted measures exclude charges for restructuring initiatives, acquisition-related items and the results of the processing business which included a write down in the fourth quarter of 2022, as further described in the appended reconciliation of adjusted financial measures.

Fourth Quarter Segment Results

Renewables

For the fourth quarter, the Renewables segment reported:

 

Three Months Ended December 31,

$Millions

GAAP

 

Adjusted

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

Net Sales

$86.1

 

$108.7

 

(20.8)%

 

$86.1

 

$108.7

 

(20.8)%

Operating Income

$11.2

 

$(1.0)

 

NMF

 

$13.1

 

$1.4

 

NMF

Operating Margin

13.0%

 

(1.0)%

 

1400 bps

 

15.2%

 

1.3%

 

1390 bps

Customer demand remained strong for products and services but both Segment revenue and backlog were down 20.8% and 17% respectively as the U.S. solar industry continued to contend with panel importation guidelines governed by the Uyghur Forced Labor Prevention Act (UFLPA), which has impacted scoping and scheduling of projects.

Despite importation issues impacting revenue, adjusted operating margin improved as expected, increasing 1,390 basis points year-over-year and 230 basis points sequentially, driven by field operations productivity, 80/20 project management, business mix, and materials productivity.

Residential

For the fourth quarter, the Residential segment reported:

 

Three Months Ended December 31,

$Millions

GAAP

 

Adjusted

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

Net Sales

$171.9

 

$159.5

 

7.8%

 

$171.9

 

$159.5

 

7.8%

Operating Income

$21.6

 

$26.3

 

(17.9)%

 

$23.0

 

$26.5

 

(13.2)%

Operating Margin

12.5%

 

16.5%

 

(400) bps

 

13.4%

 

16.6%

 

(320) bps

Revenue increased 7.8%; the acquisition of QAP contributed 9.4% of growth for the segment. Organic revenue was impacted as the market returned to its typical lower seasonal demand patterns in the quarter as supply chain reliability improved and market prices began to align with changes in commodity indexes. QAP results, included for a full quarter, were as expected.

Adjusted operating income decreased 13.2% and adjusted operating margin decreased 320 basis points. The alignment of price and material cost, and the timing of changes in commodity indexes, impacted organic margin in the quarter. The acquisition of QAP, finalized in the third quarter, contributed 110 basis points of the decrease. Margins are expected to recover as price/cost alignment improves and QAP integration benefits are realized.

Agtech

For the fourth quarter, the Agtech segment reported:

 

Three Months Ended December 31,

$Millions

GAAP

 

Adjusted

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

Net Sales

$38.5

 

$49.8

 

(22.7)%

 

$37.6

 

$45.5

 

(17.4)%

Operating Income

$(2.4)

 

$(5.1)

 

52.9%

 

$1.7

 

$4.0

 

(57.5)%

Operating Margin

(6.3)%

 

(10.2)%

 

390 bps

 

4.6%

 

8.8%

 

(420) bps

GAAP revenue decreased 22.7%, with adjusted revenue down 17.4% due to project rescoping and rescheduling of produce growing projects into 2023. While quote activity remains robust, backlog decreased 13%.

Adjusted operating margin decreased 420 basis points as project rescheduling delayed project revenue recognition, partially offset by better project execution.

As previously disclosed, Gibraltar recorded a fourth quarter 2022 charge to write down the value of its processing equipment business.

Infrastructure

For the fourth quarter, the Infrastructure segment reported:

 

Three Months Ended December 31,

$Millions

GAAP

 

Adjusted

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

Net Sales

$17.3

 

$16.5

 

4.8%

 

$17.3

 

$16.5

 

4.8%

Operating Income

$2.4

 

$1.0

 

140.0%

 

$2.4

 

$1.1

 

118.2%

Operating Margin

13.7%

 

6.4%

 

730 bps

 

13.7%

 

6.5%

 

720 bps

Revenue increased 4.8% and backlog increased 23% as bidding activity remained very strong. Management expects continued positive impact in 2023 from increased infrastructure spending related to the Infrastructure Investment and Jobs Act.

Adjusted operating income more than doubled and adjusted operating margins improved 720 basis points driven by improved price material cost alignment, improved operating execution, product mix, and volume leverage.

Business Outlook

“We enter 2023 with good operating momentum and a plan to deliver full year growth, margin expansion, and strong cash performance for the year. We are well prepared for what will continue to be a fluid external environment and we expect that the Residential market will return to normal demand seasonality, panel supply for the solar industry will improve in the second half of the year, and Agtech projects for produce growing will get finalized.” Mr. Bosway concluded, “The long-term fundamentals of our end markets remain strong, and given the progress we made the last 12 months in our market positioning, systems, processes, and organization, we expect to drive solid performance in 2023 as we continue to execute toward our 2025 objectives.”

Gibraltar is providing guidance for revenue and earnings for the full year 2023. Consolidated revenue is expected to range between $1.36 billion and $1.41 billion, compared to $1.38 billion in 2022. GAAP EPS is expected to range between $3.04 and $3.24, compared to $2.56 in 2022, and adjusted EPS is expected to range between $3.46 and $3.66, compared to $3.40 in 2022.

Fourth Quarter 2022 Conference Call Details

Gibraltar will host a conference call today starting at 9:00 a.m. ET to review its results for the fourth quarter of 2022. Interested parties may access the webcast through the Investors section of the Company’s website at www.gibraltar1.com, where related presentation materials will also be posted prior to the conference call. The call also may be accessed by dialing (877) 407-3088 or (201) 389-0927. For interested individuals unable to join the live conference call, a webcast replay will be available on the Company’s website for one year.

About Gibraltar

Gibraltar is a leading manufacturer and provider of products and services for the renewable energy, residential, agtech, and infrastructure markets. Gibraltar’s mission, to make life better for people and the planet, is fueled by advancing the disciplines of engineering, science, and technology. Gibraltar is innovating to reshape critical markets in comfortable living, sustainable power, and productive growing throughout North America. For more please visit www.gibraltar1.com.

Forward-Looking Statements

Certain information set forth in this news release, other than historical statements, contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are based, in whole or in part, on current expectations, estimates, forecasts, and projections about the Company’s business, and management’s beliefs about future operations, results, and financial position. These statements are not guarantees of future performance and are subject to a number of risk factors, uncertainties, and assumptions. Actual events, performance, or results could differ materially from the anticipated events, performance, or results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from current expectations include, among other things, the availability and pricing of our principal raw materials and component parts, supply chain challenges causing project delays and field operations inefficiencies and disruptions, availability of labor at our manufacturing and distribution facilities or on our project sites, the loss of any key customers, adverse effects of inflation, our ability to sell assets that Gibraltar has determined to sell, other general economic conditions and conditions in the particular markets in which we operate, increases in spending due to laws and government incentives, such as the Infrastructure Investment and Jobs Act, changes in customer demand and capital spending, competitive factors and pricing pressures, our ability to develop and launch new products in a cost-effective manner, our ability to realize synergies from newly acquired businesses, disruptions to our IT systems, the impact of regulation (including the Department of Commerce’s solar panel anti-circumvention investigation and the Uyghur Forced Labor Prevention Act (UFLPA)), rebates, credits and incentives and variations in government spending and our ability to derive expected benefits from restructuring, productivity initiatives, liquidity enhancing actions, and other cost reduction actions. Before making any investment decisions regarding our company, we strongly advise you to read the section entitled “Risk Factors” in our most recent annual report on Form 10-K and Quarterly Report on Form 10-Q which can be accessed under the “SEC Filings” link of the “Investor Info” page of our website at www.Gibraltar1.com. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law or regulation.

Adjusted Financial Measures

To supplement Gibraltar’s consolidated financial statements presented on a GAAP basis, Gibraltar also presented certain adjusted financial measures in this news release and its quarterly conference call, including adjusted revenues, adjusted operating income and margin, adjusted net income, adjusted earnings per share (EPS), free cash flow and adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) each a non-GAAP financial measure. Adjusted revenue reflects the removal of revenue associated with our Processing business, which has been classified as held-for-sale. Adjusted net income, operating income and margin excludes special charges consisting of restructuring costs primarily associated with 80/20 simplification or lean initiatives, senior leadership transition costs, acquisition related costs and the operating losses generated by our processing business that has been classified as held-for-sale. These special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations. The adjusted measures now exclude the results of the Processing business since it was classified as held for sale as of March 31, 2022. Our adjusted financial measures as of and for the three-month and twelve-month periods ending December 31, 2021 have been recast to reflect this additional adjustment as detailed in the appended reconciliation of adjusted financial measures. The results of the Processing business are considered non-recurring due to the Company’s commitment during the first quarter of 2022 to a plan to sell the Processing business. The aforementioned exclusions along with other adjustments to other income below operating profit are excluded from adjusted EPS. Adjusted EBITDA further excludes depreciation, amortization and stock compensation. In evaluating its business, the Company considers and uses these non-GAAP financial measures as supplemental measures of its operating performance. Free cash flow is operating cash flow less capital expenditures and the related margin is free cash flow divided by revenues. The Company believes that the presentation of results excluding these items provides meaningful supplemental data to investors that are indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods as well as comparison with other companies. Adjusted EBITDA and free cash flow are also useful measures of the Company’s ability to service debt and adjusted EBITDA is one of the measures used for determining the Company’s debt covenant compliance.

Adjustments to the most directly comparable financial measures presented on a GAAP basis are quantified in the reconciliation of adjusted financial measures excluding special charges provided in the supplemental financial schedules that accompany this news release. These adjusted measures should not be viewed as a substitute for the Company’s GAAP results and may be different than adjusted measures used by other companies and our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

Reconciliations of non-GAAP measures related to full-year 2023 guidance have not been provided due to the unreasonable efforts it would take to provide such reconciliations due to the high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations.

 

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Net sales

$

313,861

 

$

334,449

 

$

1,389,966

 

$

1,339,783

Cost of sales

 

244,838

 

 

268,639

 

 

1,071,272

 

 

1,049,772

Gross profit

 

69,023

 

 

65,810

 

 

318,694

 

 

290,011

Selling, general, and administrative expense

 

47,651

 

 

42,724

 

 

188,592

 

 

184,723

Intangible asset impairment

 

 

 

8,300

 

 

 

 

8,300

Income from operations

 

21,372

 

 

14,786

 

 

130,102

 

 

96,988

Interest expense, net

 

1,858

 

 

459

 

 

4,047

 

 

1,639

Other expense (income)

 

13,768

 

 

66

 

 

14,565

 

 

(4,213)

Income before taxes

 

5,746

 

 

14,261

 

 

111,490

 

 

99,562

Provision for income taxes

 

2,398

 

 

4,468

 

 

29,084

 

 

25,046

Income from continuing operations

 

3,348

 

 

9,793

 

 

82,406

 

 

74,516

Discontinued operations:

 

 

 

 

 

 

 

(Loss) income before taxes

 

 

 

(388)

 

 

 

 

1,479

Provision for income taxes

 

 

 

43

 

 

 

 

366

(Loss) income from discontinued operations

 

 

 

(431)

 

 

 

 

1,113

Net income

$

3,348

 

$

9,362

 

$

82,406

 

$

75,629

Net earnings per share – Basic:

 

 

 

 

 

 

 

Income from continuing operations

$

0.11

 

$

0.30

 

$

2.57

 

$

2.27

(Loss) income from discontinued operations

 

 

 

(0.02)

 

 

 

 

0.03

Net income

$

0.11

 

$

0.28

 

$

2.57

 

$

2.30

Weighted average shares outstanding – Basic

 

31,135

 

 

32,910

 

 

32,096

 

 

32,873

Net earnings per share – Diluted:

 

 

 

 

 

 

 

Income from continuing operations

$

0.11

 

$

0.30

 

$

2.56

 

$

2.25

(Loss) income from discontinued operations

 

 

 

(0.02)

 

 

 

 

0.04

Net income

$

0.11

 

$

0.28

 

$

2.56

 

$

2.29

Weighted average shares outstanding – Diluted

 

31,257

 

 

33,055

 

 

32,192

 

 

33,054

 

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 

 

December 31,

2022

 

December 31,

2021

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

17,608

 

$

12,849

Accounts receivable, net of allowance of $3,746 and $3,738,

respectively

 

217,156

 

 

236,444

Inventories, net

 

170,360

 

 

176,207

Prepaid expenses and other current assets

 

18,813

 

 

21,467

Total current assets

 

423,937

 

 

446,967

Property, plant, and equipment, net

 

109,584

 

 

96,885

Operating lease assets

 

26,502

 

 

18,120

Goodwill

 

512,363

 

 

510,942

Acquired intangibles

 

137,526

 

 

141,504

Other assets

 

701

 

 

483

 

$

1,210,613

 

$

1,214,901

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

106,582

 

$

172,286

Accrued expenses

 

73,721

 

 

67,993

Billings in excess of cost

 

35,017

 

 

46,711

Total current liabilities

 

215,320

 

 

286,990

Long-term debt

 

88,762

 

 

23,781

Deferred income taxes

 

47,088

 

 

40,278

Non-current operating lease liabilities

 

19,041

 

 

11,390

Other non-current liabilities

 

18,303

 

 

27,204

Stockholders’ equity:

 

 

 

Preferred stock, $0.01 par value; authorized 10,000 shares; none

outstanding

 

 

 

Common stock, $0.01 par value; authorized 100,000 shares; 34,060

and 33,799 shares issued and outstanding in 2022 and 2021

 

340

 

 

338

Additional paid-in capital

 

322,873

 

 

314,541

Retained earnings

 

627,978

 

 

545,572

Accumulated other comprehensive (loss) income

 

(3,432)

 

 

187

Cost of 3,199 and 1,107 common shares held in treasury in 2022

and 2021

 

(125,660)

 

 

(35,380)

Total stockholders’ equity

 

822,099

 

 

825,258

 

$

1,210,613

 

$

1,214,901

 

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

2022

 

 

2021

Cash Flows from Operating Activities

 

 

 

Net income

$

82,406

 

$

75,629

Income from discontinued operations

 

 

 

1,113

Income from continuing operations

 

82,406

 

 

74,516

Adjustments to reconcile net income to net cash provided by operating

activities:

 

 

 

Depreciation and amortization

 

26,167

 

 

31,966

Intangible asset impairment

 

 

 

8,300

Stock compensation expense

 

8,334

 

 

8,652

Held for sale valuation allowance

 

13,990

 

 

Exit activity costs, non-cash

 

2,276

 

 

1,193

Provision for deferred income taxes

 

6,337

 

 

2,968

Other, net

 

1,506

 

 

1,570

Changes in operating assets and liabilities (excluding acquisition balances):

 

 

 

Accounts receivable

 

32,754

 

 

(41,887)

Inventories

 

14,377

 

 

(85,763)

Other current assets and other assets

 

2,062

 

 

(426)

Accounts payable

 

(76,260)

 

 

38,367

Accrued expenses and other non-current liabilities

 

(11,258)

 

 

(14,384)

Net cash provided by operating activities of continuing operations

 

102,691

 

 

25,072

Net cash used in operating activities of discontinued operations

 

 

 

(2,002)

Net cash provided by operating activities

 

102,691

 

 

23,070

Cash Flows from Investing Activities

 

 

 

Acquisitions, net of cash acquired

 

(51,621)

 

 

4,143

Purchases of property, plant, and equipment, net

 

(20,062)

 

 

(17,491)

Net proceeds from sale of business

 

 

 

38,062

Net cash (used in) provided by investing activities of continuing operations

 

(71,683)

 

 

24,714

Net cash used in investing activities of discontinued operations

 

 

 

(176)

Net cash (used in) provided by investing activities

 

(71,683)

 

 

24,538

Cash Flows from Financing Activities

 

 

 

Proceeds from long-term debt

 

204,500

 

 

59,500

Long-term debt payments

 

(138,000)

 

 

(120,636)

Payment of debt issuance costs

 

(2,013)

 

 

Purchase of common stock at market prices

 

(89,494)

 

 

(6,497)

Net proceeds from issuance of common stock

 

 

 

1,021

Net cash used in financing activities

 

(25,007)

 

 

(66,612)

Effect of exchange rate changes on cash

 

(1,242)

 

 

(201)

Net increase (decrease) in cash and cash equivalents

 

4,759

 

 

(19,205)

Cash and cash equivalents at beginning of year

 

12,849

 

 

32,054

Cash and cash equivalents at end of year

$

17,608

 

$

12,849

 

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

December 31, 2022

 

 

As

Reported

In GAAP

Statements

 

Restructuring

Charges

 

Acquisition

Related

Items

 

Portfolio

Management

 

Adjusted

Financial

Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

Renewables

 

$

86,116

 

$

 

$

 

$

 

$

86,116

Residential

 

 

171,926

 

 

 

 

 

 

 

 

171,926

Agtech

 

 

38,543

 

 

 

 

 

 

(943)

 

 

37,600

Infrastructure

 

 

17,276

 

 

 

 

 

 

 

 

17,276

Consolidated sales

 

 

313,861

 

 

 

 

 

 

(943)

 

 

312,918

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

11,182

 

 

1,897

 

 

51

 

 

 

 

13,130

Residential

 

 

21,557

 

 

527

 

 

951

 

 

 

 

23,035

Agtech

 

 

(2,436)

 

 

1,517

 

 

 

 

2,654

 

 

1,735

Infrastructure

 

 

2,363

 

 

 

 

 

 

 

 

2,363

Segment Income

 

 

32,666

 

 

3,941

 

 

1,002

 

 

2,654

 

 

40,263

Unallocated corporate expense

 

 

(11,294)

 

 

2,306

 

 

72

 

 

 

 

(8,916)

Consolidated income from operations

 

 

21,372

 

 

6,247

 

 

1,074

 

 

2,654

 

 

31,347

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,858

 

 

(140)

 

 

 

 

 

 

1,718

Other expense (income)

 

 

13,768

 

 

 

 

 

 

(13,990)

 

 

(222)

Income before income taxes

 

 

5,746

 

 

6,387

 

 

1,074

 

 

16,644

 

 

29,851

Provision for income taxes

 

 

2,398

 

 

1,308

 

 

265

 

 

3,438

 

 

7,409

Income from continuing operations

 

$

3,348

 

$

5,079

 

$

809

 

$

13,206

 

$

22,442

Income from continuing operations per share – diluted

 

$

0.11

 

$

0.16

 

$

0.03

 

$

0.42

 

$

0.72

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

13.0 %

 

 

2.2 %

 

 

0.1 %

 

 

— %

 

 

15.2 %

Residential

 

 

12.5 %

 

 

0.3 %

 

 

0.6 %

 

 

— %

 

 

13.4 %

Agtech

 

 

(6.3) %

 

 

3.9 %

 

 

— %

 

 

6.9 %

 

 

4.6 %

Infrastructure

 

 

13.7 %

 

 

— %

 

 

— %

 

 

— %

 

 

13.7 %

Segments Margin

 

 

10.4 %

 

 

1.3 %

 

 

0.3 %

 

 

0.8 %

 

 

12.9 %

Consolidated

 

 

6.8 %

 

 

2.0 %

 

 

0.3 %

 

 

0.8 %

 

 

10.0 %

 

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

December 31, 2021

 

 

As Reported

In GAAP

Statements

 

Restructuring

& Intangible

Asset

Impairment

Charges

 

Acquisition

Related Items &

Senior Leadership

Transition Costs

 

Portfolio

Management*

 

Adjusted

Financial

Measures*

Net Sales

 

 

 

 

 

 

 

 

 

 

Renewables

 

$

108,671

 

$

 

$

 

$

 

$

108,671

Residential

 

 

159,534

 

 

 

 

 

 

 

 

159,534

Agtech

 

 

49,751

 

 

 

 

 

 

(4,266)

 

 

45,485

Infrastructure

 

 

16,493

 

 

 

 

 

 

 

 

16,493

Consolidated sales

 

 

334,449

 

 

 

 

 

 

(4,266)

 

 

330,183

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

(1,037)

 

 

74

 

 

2,396

 

 

 

 

1,433

Residential

 

 

26,250

 

 

216

 

 

 

 

 

 

26,466

Agtech

 

 

(5,064)

 

 

8,203

 

 

 

 

850

 

 

3,989

Infrastructure

 

 

1,048

 

 

26

 

 

 

 

 

 

1,074

Segments Income

 

 

21,197

 

 

8,519

 

 

2,396

 

 

850

 

 

32,962

Unallocated corporate expense

 

 

(6,411)

 

 

49

 

 

3

 

 

 

 

(6,359)

Consolidated income from operations

 

 

14,786

 

 

8,568

 

 

2,399

 

 

850

 

 

26,603

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

459

 

 

 

 

 

 

 

 

459

Other expense

 

 

66

 

 

 

 

 

 

 

 

66

Income before income taxes

 

 

14,261

 

 

8,568

 

 

2,399

 

 

850

 

 

26,078

Provision for income taxes

 

 

4,468

 

 

2,153

 

 

594

 

 

226

 

 

7,441

Income from continuing operations

 

$

9,793

 

$

6,415

 

$

1,805

 

$

624

 

$

18,637

Income from continuing operations per share - diluted

 

$

0.30

 

$

0.20

 

$

0.04

 

$

0.02

 

$

0.56

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

(1.0) %

 

 

0.1 %

 

 

2.1 %

 

 

— %

 

 

1.3 %

Residential

 

 

16.5 %

 

 

0.1 %

 

 

— %

 

 

— %

 

 

16.6 %

Agtech

 

 

(10.2) %

 

 

16.5 %

 

 

— %

 

 

1.7 %

 

 

8.8 %

Infrastructure

 

 

6.4 %

 

 

0.2 %

 

 

— %

 

 

— %

 

 

6.5 %

Segments Margin

 

 

6.3 %

 

 

2.6 %

 

 

0.8 %

 

 

0.3 %

 

 

10.0 %

Consolidated

 

 

4.4 %

 

 

2.6 %

 

 

0.8 %

 

 

0.3 %

 

 

8.1 %

 

 

 

 

 

 

 

 

 

 

 

*Recast to exclude processing equipment business which was reclassified as held for sale as of March 31, 2022.

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Twelve Months Ended

December 31, 2022

 

 

As

Reported

In GAAP

Statements

 

Restructuring

Charges &

Senior

Leadership

Transition Costs

 

Acquisition

Related

Items

 

Portfolio

Management

 

Adjusted

Financial

Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

Renewables

 

$

377,567

 

$

 

$

 

$

 

$

377,567

Residential

 

 

767,248

 

 

 

 

 

 

 

 

767,248

Agtech

 

 

168,868

 

 

 

 

 

 

(7,840)

 

 

161,028

Infrastructure

 

 

76,283

 

 

 

 

 

 

 

 

76,283

Consolidated sales

 

 

1,389,966

 

 

 

 

 

 

(7,840)

 

 

1,382,126

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

25,243

 

 

4,240

 

 

782

 

 

 

 

30,265

Residential

 

 

126,458

 

 

2,121

 

 

1,427

 

 

 

 

130,006

Agtech

 

 

2,914

 

 

1,837

 

 

 

 

6,769

 

 

11,520

Infrastructure

 

 

9,003

 

 

(63)

 

 

 

 

 

 

8,940

Segment Income

 

 

163,618

 

 

8,135

 

 

2,209

 

 

6,769

 

 

180,731

Unallocated corporate expense

 

 

(33,516)

 

 

2,837

 

 

601

 

 

 

 

(30,078)

Consolidated income from operations

 

 

130,102

 

 

10,972

 

 

2,810

 

 

6,769

 

 

150,653

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

4,047

 

 

(140)

 

 

 

 

 

 

3,907

Other expense

 

 

14,565

 

 

 

 

 

 

(13,890)

 

 

675

Income before income taxes

 

 

111,490

 

 

11,112

 

 

2,810

 

 

20,659

 

 

146,071

Provision for income taxes

 

 

29,084

 

 

2,485

 

 

702

 

 

4,441

 

 

36,712

Income from continuing operations

 

$

82,406

 

$

8,627

 

$

2,108

 

$

16,218

 

$

109,359

Income from continuing operations per share – diluted

 

$

2.56

 

$

0.26

 

$

0.07

 

$

0.51

 

$

3.40

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

6.7 %

 

 

1.1 %

 

 

0.2 %

 

 

— %

 

 

8.0 %

Residential

 

 

16.5 %

 

 

0.2 %

 

 

0.2 %

 

 

— %

 

 

16.9 %

Agtech

 

 

1.7 %

 

 

1.1 %

 

 

— %

 

 

4.0 %

 

 

7.2 %

Infrastructure

 

 

11.8 %

 

 

(0.1) %

 

 

— %

 

 

— %

 

 

11.7 %

Segments Margin

 

 

11.8 %

 

 

0.6 %

 

 

0.2 %

 

 

0.5 %

 

 

13.1 %

Consolidated

 

 

9.4 %

 

 

0.8 %

 

 

0.2 %

 

 

0.5 %

 

 

10.9 %

 

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Twelve Months Ended

December 31, 2021

 

 

As Reported In

GAAP

Statements

 

Restructuring

& Intangible

Asset

Impairment

Charges

 

Acquisition

Related Items &

Senior

Leadership

Transition Costs

 

Portfolio

Management*

 

Adjusted

Financial

Measures*

Net Sales

 

 

 

 

 

 

 

 

 

 

Renewables

 

$

432,096

 

$

 

$

 

$

 

$

432,096

Residential

 

 

635,505

 

 

 

 

 

 

 

 

635,505

Agtech

 

 

199,161

 

 

 

 

 

 

(20,328)

 

 

178,833

Infrastructure

 

 

73,021

 

 

 

 

 

 

 

 

73,021

Consolidated sales

 

 

1,339,783

 

 

 

 

 

 

(20,328)

 

 

1,319,455

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

20,158

 

 

5,962

 

 

8,610

 

 

 

 

34,730

Residential

 

 

105,821

 

 

393

 

 

 

 

 

 

106,214

Agtech

 

 

(931)

 

 

9,987

 

 

 

 

3,539

 

 

12,595

Infrastructure

 

 

8,911

 

 

26

 

 

 

 

 

 

8,937

Segments Income

 

 

133,959

 

 

16,368

 

 

8,610

 

 

3,539

 

 

162,476

Unallocated corporate expense

 

 

(36,971)

 

 

145

 

 

2,282

 

 

 

 

(34,544)

Consolidated income from operations

 

 

96,988

 

 

16,513

 

 

10,892

 

 

3,539

 

 

127,932

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,639

 

 

 

 

 

 

 

 

1,639

Other (income) expense

 

 

(4,213)

 

 

 

 

4,747

 

 

 

 

534

Income before income taxes

 

 

99,562

 

 

16,513

 

 

6,145

 

 

3,539

 

 

125,759

Provision for income taxes

 

 

25,046

 

 

4,150

 

 

1,059

 

 

926

 

 

31,181

Income from continuing operations

 

$

74,516

 

$

12,363

 

$

5,086

 

$

2,613

 

$

94,578

Income from continuing operations per share - diluted

 

$

2.25

 

$

0.38

 

$

0.15

 

$

0.08

 

$

2.86

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

4.7 %

 

 

1.4 %

 

 

2.0 %

 

 

— %

 

 

8.0 %

Residential

 

 

16.7 %

 

 

0.1 %

 

 

— %

 

 

— %

 

 

16.7 %

Agtech

 

 

(0.5) %

 

 

5.0 %

 

 

— %

 

 

1.8 %

 

 

7.0 %

Infrastructure

 

 

12.2 %

 

 

— %

 

 

— %

 

 

— %

 

 

12.2 %

Segments Margin

 

 

10.0 %

 

 

1.2 %

 

 

0.6 %

 

 

0.3 %

 

 

12.3 %

Consolidated

 

 

7.2 %

 

 

1.2 %

 

 

0.7 %

 

 

0.3 %

 

 

9.7 %

 

 

 

 

 

 

 

 

 

 

 

*Recast to exclude processing equipment business which was reclassified as held for sale as of March 31, 2022.

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Income From Continuing Operations to Adjusted EBITDA and Free Cash Flows

(in thousands)

(unaudited)

 

 

 

Three Months Ended

December 31, 2022

 

 

Consolidated

 

Renewables

 

Residential

 

Agtech

 

Infrastructure

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

313,861

 

$

86,116

 

$

171,926

 

$

38,543

 

$

17,276

Less: Processing Revenues*

 

 

(943)

 

 

 

 

 

 

(943)

 

 

Adjusted Net Sales

 

$

312,918

 

$

86,116

 

$

171,926

 

$

37,600

 

$

17,276

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

3,348

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

 

2,398

 

 

 

 

 

 

 

 

Interest Expense

 

 

1,858

 

 

 

 

 

 

 

 

Other Expense

 

 

13,768

 

 

 

 

 

 

 

 

Operating Profit

 

 

21,372

 

 

11,182

 

 

21,557

 

 

(2,436)

 

 

2,363

Adjusted Measures**

 

 

9,975

 

 

1,948

 

 

1,478

 

 

4,171

 

 

Adjusted Operating Profit

 

 

31,347

 

 

13,130

 

 

23,035

 

 

1,735

 

 

2,363

Adjusted Operating Margin

 

 

10.0 %

 

 

15.2 %

 

 

13.4 %

 

 

4.6 %

 

 

13.7 %

Adjusted Other Income

 

 

(193)

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

 

6,975

 

 

2,123

 

 

2,609

 

 

1,030

 

 

786

Less: Held for Sale Depreciation & Amortization

 

 

 

 

 

 

 

 

 

 

Adjusted Depreciation & Amortization

 

 

6,975

 

 

2,123

 

 

2,609

 

 

1,030

 

 

786

Stock Compensation Expense

 

 

2,445

 

 

195

 

 

245

 

 

108

 

 

41

Less: SLT Related Stock Compensation Expense

 

 

(838)

 

 

 

 

 

 

 

 

Adjusted Stock Compensation Expense

 

 

1,607

 

 

195

 

 

245

 

 

108

 

 

41

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

40,122

 

 

15,448

 

 

25,889

 

 

2,873

 

 

3,190

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Margin

 

 

12.8 %

 

 

17.9 %

 

 

15.1 %

 

 

7.6 %

 

 

18.5 %

 

 

 

 

 

 

 

 

 

 

 

Cash Flow - Operating Activities

 

 

64,130

 

 

 

 

 

 

 

 

Purchase of PPE, Net

 

 

(4,358)

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

59,772

 

 

 

 

 

 

 

 

Free Cash Flow - % of Adjusted Net Sales

 

 

19.1 %

 

 

 

 

 

 

 

 

*To remove revenues of processing equipment business classified as held for sale

**Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Income From Continuing Operations to Adjusted EBITDA and Free Cash Flows

(in thousands)

(unaudited)

 

 

 

Three Months Ended

December 31, 2021

 

 

Consolidated

 

Renewables

 

Residential

 

Agtech

 

Infrastructure

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

334,449

 

$

108,671

 

$

159,534

 

$

49,751

 

$

16,493

Less: Processing Revenues*

 

 

(4,266)

 

 

 

 

 

 

(4,266)

 

 

Adjusted Net Sales

 

$

330,183

 

$

108,671

 

$

159,534

 

$

45,485

 

$

16,493

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

9,793

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

 

4,468

 

 

 

 

 

 

 

 

Interest Expense

 

 

459

 

 

 

 

 

 

 

 

Other Expense

 

 

66

 

 

 

 

 

 

 

 

Operating Profit

 

 

14,786

 

 

(1,037)

 

 

26,250

 

 

(5,064)

 

 

1,048

Adjusted Measures**

 

 

11,817

 

 

2,470

 

 

216

 

 

9,053

 

 

26

Adjusted Operating Profit

 

 

26,603

 

 

1,433

 

 

26,466

 

 

3,989

 

 

1,074

Adjusted Operating Margin

 

 

8.1 %

 

 

1.3 %

 

 

16.6 %

 

 

8.8 %

 

 

6.5 %

Adjusted Other Expense

 

 

66

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

 

8,008

 

 

3,749

 

 

2,126

 

 

1,295

 

 

782

Less: Held for Sale Depreciation & Amortization

 

 

(332)

 

 

 

 

 

 

(332)

 

 

Less: Acquisition-Related Amortization

 

 

(1,567)

 

 

(1,567)

 

 

 

 

 

 

Adjusted Depreciation & Amortization

 

 

6,109

 

 

2,182

 

 

2,126

 

 

963

 

 

782

Stock Compensation Expense

 

 

1,883

 

 

162

 

 

224

 

 

86

 

 

33

Less: SLT Related Stock Compensation Expense

 

 

(128)

 

 

 

 

 

 

 

 

Adjusted Stock Compensation Expense

 

 

1,755

 

 

162

 

 

224

 

 

86

 

 

33

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

34,401

 

 

3,777

 

 

28,816

 

 

5,038

 

 

1,889

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Margin

 

 

10.4 %

 

 

3.5 %

 

 

18.1 %

 

 

11.1 %

 

 

11.5 %

 

 

 

 

 

 

 

 

 

 

 

Cash Flow - Operating Activities

 

 

39,595

 

 

 

 

 

 

 

 

Purchase of PPE, Net

 

 

(4,240)

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

35,355

 

 

 

 

 

 

 

 

Free Cash Flow - % of Adjusted Net Sales

 

 

10.7 %

 

 

 

 

 

 

 

 

*To remove revenues of processing equipment business classified as held for sale

**Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Income From Continuing Operations to Adjusted EBITDA and Free Cash Flows

(in thousands)

(unaudited)

 

 

 

Twelve Months Ended

December 31, 2022

 

 

Consolidated

 

Renewables

 

Residential

 

Agtech

 

Infrastructure

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

1,389,966

 

$

377,567

 

$

767,248

 

$

168,868

 

$

76,283

Less: Processing Revenues*

 

 

(7,840)

 

 

 

 

 

 

(7,840)

 

 

Adjusted Net Sales

 

$

1,382,126

 

$

377,567

 

$

767,248

 

$

161,028

 

$

76,283

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

82,406

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

 

29,084

 

 

 

 

 

 

 

 

Interest Expense

 

 

4,047

 

 

 

 

 

 

 

 

Other Expense

 

 

14,565

 

 

 

 

 

 

 

 

Operating Profit

 

 

130,102

 

 

25,243

 

 

126,458

 

 

2,914

 

 

9,003

Adjusted Measures**

 

 

20,551

 

 

5,022

 

 

3,548

 

 

8,606

 

 

(63)

Adjusted Operating Profit

 

 

150,653

 

 

30,265

 

 

130,006

 

 

11,520

 

 

8,940

Adjusted Operating Margin

 

 

10.9 %

 

 

8.0 %

 

 

16.9 %

 

 

7.2 %

 

 

11.7 %

Adjusted Other Expense

 

 

695

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

 

26,167

 

 

8,467

 

 

8,983

 

 

4,377

 

 

3,150

Less: Held for Sale Depreciation & Amortization

 

 

(332)

 

 

 

 

 

 

(332)

 

 

Adjusted Depreciation & Amortization

 

 

25,835

 

 

8,467

 

 

8,983

 

 

4,045

 

 

3,150

Stock Compensation Expense

 

 

8,334

 

 

939

 

 

990

 

 

427

 

 

170

Less: SLT Related Stock Compensation Expense

 

 

(683)

 

 

 

 

 

 

 

 

Adjusted Stock Compensation Expense

 

 

7,651

 

 

939

 

 

990

 

 

427

 

 

170

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

183,444

 

 

39,671

 

 

139,979

 

 

15,992

 

 

12,260

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Margin

 

 

13.3 %

 

 

10.5 %

 

 

18.2 %

 

 

9.9 %

 

 

16.1 %

 

 

 

 

 

 

 

 

 

 

 

Cash Flow - Operating Activities

 

 

102,691

 

 

 

 

 

 

 

 

Purchase of PPE, Net

 

 

(20,062)

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

82,629

 

 

 

 

 

 

 

 

Free Cash Flow - % of Adjusted Net Sales

 

 

6.0 %

 

 

 

 

 

 

 

 

*To remove revenues of processing equipment business classified as held for sale

**Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Income From Continuing Operations to Adjusted EBITDA and Free Cash Flows

(in thousands)

(unaudited)

 

 

 

Twelve Months Ended

December 31, 2021

 

 

Consolidated

 

Renewables

 

Residential

 

Agtech

 

Infrastructure

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

1,339,783

 

$

432,096

 

$

635,505

 

$

199,161

 

$

73,021

Less: Processing Revenues*

 

 

(20,328)

 

 

 

 

 

 

(20,328)

 

 

Adjusted Net Sales

 

$

1,319,455

 

$

432,096

 

$

635,505

 

$

178,833

 

$

73,021

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

74,516

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

 

25,046

 

 

 

 

 

 

 

 

Interest Expense

 

 

1,639

 

 

 

 

 

 

 

 

Other Income

 

 

(4,213)

 

 

 

 

 

 

 

 

Operating Profit

 

 

96,988

 

 

20,158

 

 

105,821

 

 

(931)

 

 

8,911

Adjusted Measures**

 

 

30,944

 

 

14,572

 

 

393

 

 

13,526

 

 

26

Adjusted Operating Profit

 

 

127,932

 

 

34,730

 

 

106,214

 

 

12,595

 

 

8,937

Adjusted Operating Margin

 

 

9.7 %

 

 

8.0 %

 

 

16.7 %

 

 

7.0 %

 

 

12.2 %

Adjusted Other Expense

 

 

534

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

 

31,966

 

 

14,682

 

 

8,694

 

 

5,279

 

 

3,092

Less: Held for Sale Depreciation & Amortization

 

 

(1,324)

 

 

 

 

 

 

(1,324)

 

 

Less: Acquisition-Related Amortization

 

 

(6,273)

 

 

(6,273)

 

 

 

 

 

 

Adjusted Depreciation & Amortization

 

 

24,369

 

 

8,409

 

 

8,694

 

 

3,955

 

 

3,092

Stock Compensation Expense

 

 

8,652

 

 

772

 

 

990

 

 

635

 

 

104

Less: SLT Related Stock Compensation Expense

 

 

(757)

 

 

 

 

 

 

(36)

 

 

Adjusted Stock Compensation Expense

 

 

7,895

 

 

772

 

 

990

 

 

599

 

 

104

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

159,662

 

 

43,911

 

 

115,898

 

 

17,149

 

 

12,133

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Margin

 

 

12.1 %

 

 

10.2 %

 

 

18.2 %

 

 

9.6 %

 

 

16.6 %

 

 

 

 

 

 

 

 

 

 

 

Cash Flow - Operating Activities

 

 

25,072

 

 

 

 

 

 

 

 

Purchase of PPE, Net

 

 

(17,491)

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

7,581

 

 

 

 

 

 

 

 

Free Cash Flow - % of Adjusted Net Sales

 

 

0.6 %

 

 

 

 

 

 

 

 

*To remove revenues of processing equipment business classified as held for sale

**Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures

 

Contacts

LHA Investor Relations

Jody Burfening/Carolyn Capaccio

(212) 838-3777

rock@lhai.com

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