BUFFALO, N.Y.–(BUSINESS WIRE)–Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the renewable energy, conservation, residential and infrastructure markets, today reported its financial results for the three-month period ended December 31, 2020. Results of TerraSmart, acquired at the end of the day on December 31, 2020, had no impact on operations in 2020 in reported results.
“Overall, we delivered record performance in 2020 while remaining very focused on the health and well-being of our people, operations, customers, and communities. We also worked on the business, executed key initiatives, and generated strong cash flow, enabling material investments to support our long term strategy,” said President and Chief Executive Officer Bill Bosway. “Our fourth quarter performance was solid with revenue increasing 17% and adjusted EPS increasing 4%, and we enter 2021 with a strong backlog of approximately $300 million, up 50%, and a strong balance sheet and cash flow profile to continue driving our key initiatives.”
Fourth Quarter 2020 Consolidated Results from Continuing Operations*
Gibraltar reported the following consolidated results from continuing operations:
Three Months Ended December 31,
Dollars in millions, except EPS
GAAP
Adjusted
2020
2019
% Change
2020
2019
% Change
Net Sales
$265.2
$226.0
17.3%
$265.2
$226.0
17.3%
Net Income
$17.6
$15.0
17.3%
$19.5
$18.6
4.8%
Diluted EPS
$0.53
$0.46
15.2%
$0.59
$0.57
3.5%
Fourth quarter 2020 net sales from continuing operations increased 17.3% to $265.2 million, driven by the Residential Products and Renewable Energy & Conservation segments. Of the 17.3% increase, organic growth accounted for 3.6%, and recent acquisitions contributed 13.7%.
GAAP earnings increased 17.3% to $17.6 million, or $0.53 per share, while adjusted earnings increased 4.8% to $19.5 million, or $0.59 per share, the result of organic growth and continued margin expansion in the Residential Products segment, product and services mix, favorable alignment of price to material costs, and ongoing benefits from operational excellence initiatives. Adjusted measures remove charges for restructuring initiatives, acquisition-related items, senior leadership transition costs, and other reclassifications, as further described in the appended reconciliation of adjusted financial measures.
*Gibraltar has classified the Industrial business as a discontinued operation with fourth quarter 2020 results. Included in fourth quarter 2020 loss from discontinued operations of $26.1 million is a non-cash loss of $29.6 million related to the disposal of this business.
Fourth Quarter Segment Results
Renewable Energy & Conservation
The acquisition of TerraSmart, an important addition to Gibraltar’s renewable energy business, was completed on December 31, 2020. TerraSmart delivered 2020 revenue of $157 million and adjusted EBITDA of $26 million, in line with expectations creating a business with approximately $400M in revenue and operating margin in excess of 12% on a Pro Forma basis as we enter 2021. TerraSmart’s 2020 results did not impact Gibraltar’s Q4 2020 results.
For the fourth quarter, the Renewable Energy & Conservation segment reported:
Three Months Ended December 31,
Dollars in millions
GAAP
Adjusted
2020
2019
% Change
2020
2019
% Change
Net Sales
$124.6
$111.4
11.8%
$124.6
$111.4
11.8%
Operating Margin
9.4%
14.9%
(550) bps
9.7%
15.2%
(550) bps
Segment revenue increased 11.8% driven by growth from acquisitions. Organic revenue slowed during the quarter driven by certain market dynamics. Solar customers experienced unanticipated solar panel supply challenges and building permit delays causing temporary delays to existing projects slated for the fourth quarter. In the conservation business, market conditions for greenhouse structures and processing extraction equipment serving the cannabis and hemp markets remain slow, but the positive momentum in order activity and backlog over the last 60 days supports our previous expectation of these two markets being solid in 2021. Total segment backlog continued to grow, increasing 55%, driven by continued strength in both solar energy and organic produce end markets.
Adjusted operating margin performance was driven by a reduction in solar volume as existing solar projects moved into 2021. We expect the solar panel supply challenges to subside in the first half of 2021. We also experienced a delay to our integration plan of Thermo Energy Systems (TES), which is located in Canada, due to mandated Covid-19 visitation and travel restrictions between the U.S. and Canada. The slower greenhouse structures and processing equipment market for cannabis and hemp impacted volume and productivity initiatives in the quarter creating a margin drag accordingly.
Residential Products
For the fourth quarter, the Residential Products segment reported:
Three Months Ended December 31,
Dollars in millions
GAAP
Adjusted
2020
2019
% Change
2020
2019
% Change
Net Sales
$128.2
$101.2
26.7%
$128.2
$101.2
26.7%
Operating Margin
15.8%
13.0%
280 bps
15.9%
13.1%
280 bps
Segment revenue increased 26.7% as the residential market continued to show solid activity, with strong demand and participation gains across all channels. Organic growth was 21.4%, with the acquired Architectural Mailboxes business contributing 5.3% growth. Adjusted operating margin increased with consistent execution on higher volume, and additional 80/20 initiatives.
Infrastructure Products
As noted above, Gibraltar completed the sale of the Industrial business on February 23, 2021. The results of the Industrial business are included as discontinued operations and the assets and liabilities have been reclassified as held-for-sale in fourth quarter 2020 results.
For the fourth quarter, the Infrastructure Products segment reported:
Three Months Ended December 31,
Dollars in millions
GAAP
Adjusted
2020
2019
% Change
2020
2019
% Change
Net Sales
$12.4
$13.4
(7.5)%
$12.4
$13.4
(7.5)%
Operating Margin
4.6%
5.8%
(120) bps
6.4%
5.8%
60 bps
Segment revenue decreased 7.5% as the pandemic continued to impact existing and new project schedules, especially in segments like airport runway maintenance, where customers have delayed spending. The increase in adjusted operating margin was driven by strong execution in fabricated product sales which has offset a decline in our higher margin non-fabricated product lines. Infrastructure backlog improved modestly, but bidding activity has approached record levels moving into 2021.
Business Outlook
“We enter 2021 with momentum across our businesses and confidence in our end markets, and we will continue executing our operating playbook, maintaining a safe environment for our people and supporting our customers,” Mr. Bosway concluded. “Although we are dealing with challenging short term market dynamics, I am confident we will deliver full year growth and margin expansion in 2021.”
Gibraltar is providing guidance for revenue and earnings for the full year 2021. Consolidated revenue is expected to range between $1.3 billion and $1.35 billion. GAAP EPS is expected to range between $2.78 and $2.95, compared to $2.53 in 2020, and adjusted EPS is expected to range between $3.30 and $3.47, compared to $2.73 in 2020.
Gibraltar Industries
Dollars in millions, except EPS
Operating
Income
Net
Diluted
Earnings
Revenue
Income
Margin
Taxes
Income
Per Share
GAAP Measures
$1.3B – $1.35B
$
127-135
9.8-10.0%
$
36-38
$
92-98
$
2.78-2.95
Adjustments
22
1.7%
4
17
0.52
Adjusted Measures
$
149-157
11.5-11.7%
$
40-42
$
109-115
$
3.30-3.47
Fourth Quarter 2020 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 2020. Interested parties may access the webcast through the Investors section of the Company’s website at www.gibraltar1.com or dial into the call at (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 Industries is a leading manufacturer and provider of products and services for the renewable energy, conservation, residential, and infrastructure markets. With a three-pillar strategy focused on business systems, portfolio management, and organization and talent development, Gibraltar’s mission is to create compounding and sustainable value with strong leadership positions in higher growth, profitable end markets. Gibraltar serves customers primarily throughout North America. Comprehensive information about Gibraltar can be found on its website at 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 impacts of COVID-19 on the global economy and on our customers, suppliers, employees, operations, business, liquidity and cash flows, other general economic conditions and conditions in the particular markets in which we operate, 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, 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 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. Adjusted financial measures exclude special charges consisting of restructuring costs primarily associated with 80/20 simplification initiatives, senior leadership transition costs, early debt repayment, acquisition related costs, restatement of previously reported adjusted financial measures to account for discontinued operations and other reclassifications. These adjustments are shown in the reconciliation of adjusted financial measures excluding special charges provided in the supplemental financial schedules that accompany this news release. The Company believes that the presentation of results excluding special charges provides meaningful supplemental data to investors, as well as management, 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. Special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations. 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.
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2020
2019
2020
2019
Net Sales
$
265,201
$
226,034
$
1,032,578
$
898,233
Cost of sales
202,775
168,608
776,235
678,336
Gross profit
62,426
57,426
256,343
219,897
Selling, general, and administrative expense
39,704
37,193
149,153
139,085
Income from operations
22,722
20,233
107,190
80,812
Interest expense (income)
220
(5
)
703
2,323
Other expense (income)
150
192
(1,272
)
408
Income before taxes
22,352
20,046
107,759
78,081
Provision for income taxes
4,754
5,003
24,468
18,153
Income from continuing operations
17,598
15,043
83,291
59,928
Discontinued operations:
(Loss) income before taxes
(25,992
)
(918
)
(16,602
)
6,682
Provision for (benefit of) income taxes
151
(232
)
2,123
1,519
(Loss) income from discontinued operations
(26,143
)
(686
)
(18,725
)
5,163
Net (loss) income
$
(8,545
)
$
14,357
$
64,566
$
65,091
Net earnings per share – Basic:
Income from continuing operations
$
0.54
$
0.46
$
2.55
$
1.85
(Loss) income from discontinued operations
(0.80
)
(0.02
)
(0.57
)
0.16
Net (loss) income
$
(0.26
)
$
0.44
$
1.98
$
2.01
Weighted average shares outstanding — Basic
32,719
32,505
32,664
32,389
Net earnings per share – Diluted:
Income from continuing operations
$
0.53
$
0.46
$
2.53
$
1.83
(Loss) income from discontinued operations
(0.79
)
(0.02
)
(0.57
)
0.16
Net (loss) income
$
(0.26
)
$
0.44
$
1.96
$
1.99
Weighted average shares outstanding — Diluted
33,016
32,880
32,918
32,722
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
December 31,
2020
December 31,
2019
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
32,054
$
191,363
Accounts receivable, net
197,990
133,895
Inventories, net
98,307
61,957
Prepaid expenses and other current assets
19,671
18,959
Assets of discontinued operations
77,438
30,928
Total current assets
425,460
437,102
Property, plant, and equipment, net
89,562
78,152
Operating lease assets
25,229
21,201
Goodwill
514,279
307,355
Acquired intangibles
156,365
76,734
Other assets
1,599
1,980
Assets of discontinued operations
—
61,926
$
1,212,494
$
984,450
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable
$
134,738
$
72,628
Accrued expenses
83,505
86,597
Billings in excess of cost
34,702
47,598
Liabilities of discontinued operations
49,295
22,374
Total current liabilities
302,240
229,197
Long-term debt
85,636
—
Deferred income taxes
39,057
35,404
Non-current operating lease liabilities
17,730
14,943
Other non-current liabilities
24,026
21,272
Liabilities of discontinued operations
—
9,670
Shareholders’ equity:
Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding
—
—
Common stock, $0.01 par value; authorized 50,000 shares; 33,568 and 33,192 shares issued in 2020 and 2019
336
332
Additional paid-in capital
304,870
295,582
Retained earnings
469,943
405,668
Accumulated other comprehensive loss
(2,461
)
(5,391
)
Cost of 1,028 and 906 common shares held in treasury in 2020 and 2019
(28,883
)
(22,227
)
Total shareholders’ equity
743,805
673,964
$
1,212,494
$
984,450
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)
Twelve Months Ended
December 31,
2020
2019
Cash Flows from Operating Activities
Net income
$
64,566
$
65,091
(Loss) income from discontinued operations
(18,725
)
5,163
Income from continuing operations
83,291
59,928
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
20,915
17,557
Stock compensation expense
8,173
12,570
Gain on sale of business
(1,881
)
—
Exit activity costs, non-cash
493
408
Provision for deferred income taxes
3,786
4,120
Other, net
1,944
5,399
Changes in operating assets and liabilities, excluding the effects of acquisitions:
Accounts receivable
2,277
(11,256
)
Inventories
(5,719
)
14,272
Other current assets and other assets
5,467
(9,306
)
Accounts payable
(1,160
)
4,804
Accrued expenses and other non-current liabilities
(44,570
)
14,040
Net cash provided by operating activities of continuing operations
73,016
112,536
Net cash provided by operating activities of discontinued operations
16,088
17,399
Net cash provided by operating activities
89,104
129,935
Cash Flows from Investing Activities
Acquisitions, net of cash acquired
(313,686
)
(8,595
)
Net proceeds from sale of property and equipment
77
92
Purchases of property, plant, and equipment
(13,068
)
(8,776
)
Net proceeds from sale of business
2,000
—
Net cash used in investing activities of continuing operations
(324,677
)
(17,279
)
Net cash used in investing activities of discontinued operations
(2,033
)
(2,394
)
Net cash used in investing activities
(326,710
)
(19,673
)
Cash Flows from Financing Activities
Proceeds from long-term debt
85,000
—
Long-term debt payments
—
(212,000
)
Payment of debt issuance costs
—
(1,235
)
Purchase of treasury stock at market prices
(6,656
)
(4,305
)
Net proceeds from issuance of common stock
1,119
490
Net cash provided by (used in) financing activities
79,463
(217,050
)
Effect of exchange rate changes on cash
(1,166
)
1,145
Net decrease in cash and cash equivalents
(159,309
)
(105,643
)
Cash and cash equivalents at beginning of year
191,363
297,006
Cash and cash equivalents at end of year
$
32,054
$
191,363
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended
December 31, 2020
As
Reported
In GAAP
Statements
Restructuring
Charges
Senior
Leadership
Transition
Costs
Acquisition
Related
Items
Adjusted
Financial
Measures
Net Sales
Renewable Energy & Conservation
$
124,553
$
—
$
—
$
—
$
124,553
Residential Products
128,205
—
—
—
128,205
Infrastructure Products
12,443
—
—
—
12,443
Consolidated sales
265,201
—
—
—
265,201
Income from operations
Renewable Energy & Conservation
11,656
369
—
34
12,059
Residential Products
20,287
70
—
—
20,357
Infrastructure Products
573
226
—
—
799
Segments Income
32,516
665
—
34
33,215
Unallocated corporate expense
(9,794
)
259
14
1,666
(7,855
)
Consolidated income from operations
22,722
924
14
1,700
25,360
Interest expense
220
—
—
—
220
Other expense
150
—
—
—
150
Income before income taxes
22,352
924
14
1,700
24,990
Provision for income taxes
4,754
251
—
439
5,444
Income from continuing operations
$
17,598
$
673
$
14
$
1,261
$
19,546
Income from continuing operations per share – diluted
$
0.53
$
0.02
$
—
$
0.04
$
0.59
Operating margin
Renewable Energy & Conservation
9.4
%
0.3
%
—
%
—
%
9.7
%
Residential Products
15.8
%
0.1
%
—
%
—
%
15.9
%
Infrastructure Products
4.6
%
1.8
%
—
%
—
%
6.4
%
Segments Margin
12.3
%
0.3
%
—
%
—
%
12.5
%
Consolidated
8.6
%
0.3
%
—
%
0.6
%
9.6
%
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended
December 31, 2019
As Previously
Reported
In GAAP
Statements
Discontinued
Operations
Restatement
As
Reported
In GAAP
Statements
Restructuring &
Acquisition
Related Items
Senior
Leadership
Transition
Costs
Adjusted
Financial
Measures
Net Sales
Renewable Energy & Conservation
$
111,411
$
—
$
111,411
$
—
$
—
$
111,411
Residential Products
101,213
—
101,213
—
—
101,213
Infrastructure Products
45,709
(32,299
)
13,410
—
—
13,410
Less Inter-Segment Sales
(202
)
202
—
—
—
—
45,507
(32,097
)
13,410
—
—
13,410
Consolidated sales
258,131
(32,097
)
226,034
—
—
226,034
Income from operations
Renewable Energy & Conservation
16,644
—
16,644
288
—
16,932
Residential Products
13,167
—
13,167
72
—
13,239
Infrastructure Products
(205
)
986
781
—
—
781
Segments income
29,606
986
30,592
360
—
30,952
Unallocated corporate expense
(10,359
)
—
(10,359
)
752
2,693
(6,914
)
Consolidated income from operations
19,247
986
20,233
1,112
2,693
24,038
Interest income
(92
)
87
(5
)
—
—
(5
)
Other expense
211
(19
)
192
—
—
192
Income before income taxes
19,128
918
20,046
1,112
2,693
23,851
Provision for income taxes
4,771
232
5,003
91
134
5,228
Income from continuing operations
$
14,357
$
686
$
15,043
$
1,021
$
2,559
$
18,623
Income from continuing operations per share – diluted
$
0.44
$
0.02
$
0.46
$
0.03
$
0.08
$
0.57
Operating margin
Renewable Energy & Conservation
14.9
%
14.9
%
0.3
%
—
%
15.2
%
Residential Products
13.0
%
13.0
%
0.1
%
—
%
13.1
%
Infrastructure Products
(0.5
)%
5.8
%
—
%
—
%
5.8
%
Segments margin
11.5
%
13.5
%
0.2
%
—
%
13.7
%
Consolidated
7.5
%
9.0
%
0.5
%
1.2
%
10.6
%
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Twelve Months Ended
December 31, 2020
As
Reported
In GAAP
Statements
Restructuring
Charges
Senior
Leadership
Transition
Costs
Acquisition
Related
Items
Gain on
Sale of
Business
Adjusted
Financial
Measures
Net Sales
Renewable Energy & Conservation
$
447,567
$
—
$
—
$
—
$
—
$
447,567
Residential Products
522,814
—
—
—
—
522,814
Infrastructure Products
62,197
—
—
—
—
62,197
Consolidated sales
1,032,578
—
—
—
—
1,032,578
Income from operations
Renewable Energy & Conservation
40,738
947
—
2,779
—
44,464
Residential Products
94,430
740
—
—
—
95,170
Infrastructure Products
7,233
226
—
—
—
7,459
Segments Income
142,401
1,913
—
2,779
—
147,093
Unallocated corporate expense
(35,211
)
375
2,526
1,991
—
(30,319
)
Consolidated income from operations
107,190
2,288
2,526
4,770
—
116,774
Interest expense
703
—
—
—
—
703
Other (income) expense
(1,272
)
—
—
—
1,881
609
Income before income taxes
107,759
2,288
2,526
4,770
(1,881
)
115,462
Provision for income taxes
24,468
547
—
1,164
(469
)
25,710
Income from continuing operations
$
83,291
$
1,741
$
2,526
$
3,606
$
(1,412
)
$
89,752
Income from continuing operations per share – diluted
$
2.53
$
0.05
$
0.08
$
0.11
$
(0.04
)
$
2.73
Operating margin
Renewable Energy & Conservation
9.1
%
0.2
%
—
%
0.6
%
—
%
9.9
%
Residential Products
18.1
%
0.1
%
—
%
—
%
—
%
18.2
%
Infrastructure Products
11.6
%
0.4
%
—
%
—
%
—
%
12.0
%
Segments Margin
13.8
%
0.2
%
—
%
0.3
%
—
%
14.2
%
Consolidated
10.4
%
0.2
%
0.2
%
0.5
%
—
%
11.3
%
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Twelve Months Ended
December 31, 2019
As Previously
Reported
In GAAP
Statements
Discontinued
Operations
Restatement
As
Reported
In GAAP
Statements
Restructuring,
Acquisition &
Debt
Repayment
Costs
Senior
Leadership
Transition
Costs
Adjusted
Financial
Measures
Net Sales
Renewable Energy & Conservation
$
373,023
$
—
$
373,023
$
—
$
—
$
373,023
Residential Products
461,630
—
461,630
—
—
461,630
Infrastructure Products
213,805
(150,225
)
63,580
—
—
63,580
Less Inter-Segment Sales
(1,019
)
1,019
—
—
—
—
212,786
(149,206
)
63,580
—
—
63,580
Consolidated sales
1,047,439
(149,206
)
898,233
—
—
898,233
Income from operations
Renewable Energy & Conservation
47,558
—
47,558
1,490
—
49,048
Residential Products
63,047
—
63,047
3,857
78
66,982
Infrastructure Products
13,455
(7,027
)
6,428
—
—
6,428
Segments income
124,060
(7,027
)
117,033
5,347
78
122,458
Unallocated corporate expense
(36,221
)
—
(36,221
)
2,145
9,666
(24,410
)
Consolidated income from operations
87,839
(7,027
)
80,812
7,492
9,744
98,048
Interest expense
2,205
118
2,323
(1,079
)
—
1,244
Other expense
871
(463
)
408
—
—
408
Income before income taxes
84,763
(6,682
)
78,081
8,571
9,744
96,396
Provision for income taxes
19,672
(1,519
)
18,153
2,080
615
20,848
Income from continuing operations
$
65,091
$
(5,163
)
$
59,928
$
6,491
$
9,129
$
75,548
Income from continuing operations per share – diluted
$
1.99
$
(0.16
)
$
1.83
$
0.20
$
0.28
$
2.31
Operating margin
Renewable Energy & Conservation
12.7
%
12.7
%
0.4
%
—
%
13.1
%
Residential Products
13.7
%
13.7
%
0.8
%
—
%
14.5
%
Infrastructure Products
6.3
%
10.1
%
—
%
—
%
10.1
%
Segments margin
11.8
%
13.0
%
0.6
%
—
%
13.6
%
Consolidated
8.4
%
9.0
%
0.8
%
1.1
%
10.9
%
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended March 31, 2020
As Previously
Reported
In GAAP
Statements
Discontinued
Operations
Restatement
As Reported
in GAAP
Statements
Restructuring
& Senior
Leadership
Transition
Costs
Acquisition
Related
Items
Adjusted
Financial
Measures
Net Sales
Renewable Energy & Conservation
$
96,497
$
—
$
96,497
$
—
$
—
$
96,497
Residential Products
103,419
—
103,419
—
—
103,419
Infrastructure Products
49,801
(34,316
)
15,485
—
—
15,485
Less Inter-Segment Sales
(278
)
278
—
—
—
—
49,523
(34,038
)
15,485
—
—
15,485
Consolidated sales
249,439
(34,038
)
215,401
—
—
215,401
Income from operations
Renewable Energy & Conservation
5,699
—
5,699
18
1,001
6,718
Residential Products
13,725
—
13,725
221
—
13,946
Infrastructure Products
3,989
(2,413
)
1,576
—
—
1,576
Segment Income
23,413
(2,413
)
21,000
239
1,001
22,240
Unallocated corporate expense
(8,223
)
—
(8,223
)
2,280
259
(5,684
)
Consolidated income from operations
15,190
(2,413
)
12,777
2,519
1,260
16,556
Interest (income) expense
(47
)
91
44
—
—
44
Other expense
192
326
518
—
—
518
Income before income taxes
15,045
(2,830
)
12,215
2,519
1,260
15,994
Provision for income taxes
2,986
(673
)
2,313
59
316
2,688
Income from continuing operations
$
12,059
$
(2,157
)
$
9,902
$
2,460
$
944
$
13,306
Income from continuing operations per share – diluted
$
0.37
$
(0.07
)
$
0.30
$
0.07
$
0.03
$
0.40
Operating margin
Renewable Energy & Conservation
5.9
%
5.9
%
—
%
1.0
%
7.0
%
Residential Products
13.3
%
13.3
%
0.2
%
—
%
13.5
%
Infrastructure Products
8.1
%
10.2
%
—
%
—
%
10.2
%
Segments Margin
9.4
%
9.7
%
0.1
%
0.5
%
10.3
%
Consolidated
6.1
%
5.9
%
1.1
%
0.6
%
7.7
%
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended June 30, 2020
As Previously
Reported
In GAAP
Statements
Discontinued
Operations
Restatement
As Reported
in GAAP
Statements
Costs
(Recoveries)
on
Restructuring
& Senior
Leadership
Transition
Acquisition
Related
Items
Adjusted
Financial
Measures
Net Sales
Renewable Energy & Conservation
$
98,259
$
—
98,259
$
—
$
—
$
98,259
Residential Products
139,472
—
139,472
—
—
139,472
Infrastructure Products
48,263
(30,810
)
17,453
—
—
17,453
Less Inter-Segment Sales
(180
)
180
—
—
—
—
48,083
(30,630
)
17,453
—
—
17,453
Consolidated sales
285,814
(30,630
)
255,184
—
—
255,184
Income from operations
Renewable Energy & Conservation
9,188
—
9,188
388
1,172
10,748
Residential Products
27,964
—
27,964
263
—
28,227
Infrastructure Products
6,644
(3,843
)
2,801
—
—
2,801
Segment Income
43,796
(3,843
)
39,953
651
1,172
41,776
Unallocated corporate expense
(9,205
)
—
(9,205
)
161
50
(8,994
)
Consolidated income from operations
34,591
(3,843
)
30,748
812
1,222
32,782
Interest expense
214
8
222
—
—
222
Other income
(1,787
)
(105
)
(1,892
)
1,881
—
(11
)
Income before income taxes
36,164
(3,746
)
32,418
(1,069
)
1,222
32,571
Provision for income taxes
8,872
(911
)
7,961
(299
)
274
7,936
Income from continuing operations
$
27,292
$
(2,835
)
$
24,457
$
(770
)
$
948
$
24,635
Income from continuing operations per share – diluted
$
0.83
$
(0.09
)
$
0.74
$
(0.02
)
$
0.03
$
0.75
Operating margin
Renewable Energy & Conservation
9.4
%
9.4
%
0.4
%
1.2
%
10.9
%
Residential Products
20.0
%
20.0
%
0.2
%
—
%
20.2
%
Infrastructure Products
13.8
%
16.0
%
—
%
—
%
16.0
%
Segments Margin
15.3
%
15.7
%
0.3
%
0.5
%
16.4
%
Consolidated
12.1
%
12.0
%
0.3
%
0.5
%
12.8
%
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
Three Months Ended September 30, 2020
As Previously
Reported
In GAAP
Statements
Discontinued
Operations
Restatement
As Reported
in GAAP
Statements
Restructuring
& Senior
Leadership
Transition
Costs
Acquisition
Related
Items
Adjusted
Financial
Measures
Net Sales
Renewable Energy & Conservation
$
128,258
$
—
$
128,258
$
—
$
—
$
128,258
Residential Products
151,718
—
151,718
—
—
151,718
Infrastructure Products
49,767
(32,951
)
16,816
—
—
16,816
Less Inter-Segment Sales
(78
)
78
—
—
—
—
49,689
(32,873
)
16,816
—
—
16,816
Consolidated sales
329,665
(32,873
)
296,792
—
—
296,792
Income from operations
Renewable Energy & Conservation
14,195
—
14,195
172
572
14,939
Residential Products
32,454
—
32,454
186
—
32,640
Infrastructure Products
5,199
(2,916
)
2,283
—
—
2,283
Segment Income
51,848
(2,916
)
48,932
358
572
49,862
Unallocated corporate expense
(7,989
)
—
(7,989
)
187
16
(7,786
)
Consolidated income from operations
43,859
(2,916
)
40,943
545
588
42,076
Interest expense
218
(1
)
217
—
—
217
Other expense (income)
53
(101
)
(48
)
—
—
(48
)
Income before income taxes
43,588
(2,814
)
40,774
545
588
41,907
Provision for income taxes
9,828
(388
)
9,440
67
135
9,642
Income from continuing operations
$
33,760
$
(2,426
)
$
31,334
$
478
$
453
$
32,265
Income from continuing operations per share – diluted
$
1.02
$
(0.07
)
$
0.95
$
0.02
$
0.01
$
0.98
Operating margin
Renewable Energy & Conservation
11.1
%
11.1
%
0.1
%
0.4
%
11.6
%
Residential Products
21.4
%
21.4
%
0.1
%
—
%
21.5
%
Infrastructure Products
10.5
%
13.6
%
—
%
—
%
13.6
%
Segments Margin
15.7
%
16.5
%
0.1
%
0.2
%
16.8
%
Consolidated
13.3
%
13.8
%
0.2
%
0.2
%
14.2
%
