Gibraltar Announces Fourth Quarter and Full Year 2023 Financial Results

2023 EPS: GAAP up 40%, Adjusted up 21% on Flat Net Sales

Strong 2023 Cash Generation on Higher Margins, Working Capital Management

2024 Growth: Revenue 4-9%, EPS 12-20%

BUFFALO, N.Y.--()--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 period ended December 31, 2023.

“Fourth quarter results reflected a strong finish to a very good year for Gibraltar. We delivered 5% revenue growth, 50 basis points of adjusted operating margin expansion and adjusted EPS growth of 18%. For 2023, we outperformed what we set out to achieve at the beginning of the year, improving our quality of earnings and operating execution, generating $218 million of operating cash flow. As a result, with solid end market fundamentals, improving business conditions in Renewables and Agtech markets and our more efficient operating engine, we expect a strong 2024,” stated Chairman and CEO Bill Bosway.

Fourth Quarter 2023 Consolidated Results

 

Three Months Ended December 31,

$Millions, except EPS

GAAP

 

Adjusted

 

2023

2022

Change

 

2023

2022

Change

Net Sales

$328.8

$313.9

4.7%

 

$328.8

$312.9

5.1%

Net Income

$19.4

$3.3

NMF

 

$26.0

$22.4

16.1%

Diluted EPS

$0.63

$0.11

NMF

 

$0.85

$0.72

18.1%

Net sales increased 5.1% with all segments contributing to growth and order backlog increasing more than 10% versus last year.

GAAP earnings increased to $19.4 million, or $0.63 per share. Adjusted net income increased 16.1% to $26.0 million, or $0.85 per share, and adjusted EPS increased 18.1%. For the full year, revenue was essentially flat, GAAP and adjusted EPS and free cash flow all increased within the higher outlook included in third quarter 2023 reporting.

Adjusted measures exclude charges for restructuring initiatives, acquisition-related items, senior leadership transition costs and portfolio management actions, as further described in the appended reconciliation of adjusted financial measures.

Fourth Quarter Segment Results

Renewables

 

Three Months Ended December 31,

$Millions

GAAP

 

Adjusted

 

2023

2022

Change

 

2023

2022

Change

Net Sales

$87.7

$86.1

1.9%

 

$87.7

$86.1

1.9%

Operating Income

$9.1

$11.2

(18.8)%

 

$11.5

$13.1

(12.2)%

Operating Margin

10.3%

13.0%

(270) bps

 

13.1%

15.2%

(210) bps

Net sales increased 1.9%, driven by backlog converting to sales as customers continued to work through scheduling challenges related to permitting delays and awaited final tax credit guidance from the Inflation Reduction Act. New bookings continued to be robust, driving backlog up 20.9% versus last year.

Adjusted operating margin decreased 210 basis points versus the prior year as strong execution across the business was offset by warranty cost incurred during the quarter for a project completed in 2022.

Residential

 

Three Months Ended December 31,

$Millions

GAAP

 

Adjusted

 

2023

2022

Change

 

2023

2022

Change

Net Sales

$179.3

$171.9

4.3%

 

$179.3

$171.9

4.3%

Operating Income

$27.4

$21.6

26.9%

 

$31.5

$23.0

37.0%

Operating Margin

15.3%

12.5%

280 bps

 

17.5%

13.4%

410 bps

Net sales increased 4.3% with organic sales up 3.1% driven by participation gains and volume, partially offset by pricing adjustments related to commodity deflation.

Adjusted operating margin expanded 410 basis points, driven by improved price/cost alignment versus the prior year’s quarter, volume and 80/20 initiatives.

Agtech

 

Three Months Ended December 31,

$Millions

GAAP

 

Adjusted

 

2023

2022

Change

 

2023

2022

Change

Net Sales

$42.4

$38.5

10.1%

 

$42.4

$37.6

12.8%

Operating Income

$(4.3)

$(2.4)

(79.2)%

 

$(1.4)

$1.7

NMF

Operating Margin

(10.1)%

(6.3)%

(380) bps

 

(3.3)%

4.6%

(790) bps

Net sales on an adjusted basis increased 12.8% as the team executed on new orders in backlog.

Included in 2023 operating results is a $3.5 million charge to write down a receivable associated with a distressed cannabis customer. Before the charge, adjusted operating margin was approximately 5%, an increase of 40 basis points driven by volume, customer and product mix, and 80/20 initiatives.

Infrastructure

 

Three Months Ended December 31,

$Millions

GAAP

 

Adjusted

 

2023

2022

Change

 

2023

2022

Change

Net Sales

$19.4

$17.3

12.1%

 

$19.4

$17.3

12.1%

Operating Income

$3.6

$2.4

50.0%

 

$3.6

$2.4

50.0%

Operating Margin

18.6%

13.7%

490 bps

 

18.6%

13.7%

490 bps

Net sales and order backlog increased 12.1% and 3.0%, respectively, driven by continued solid end market demand and market participation gains.

Operating margin increased 490 basis points driven by ongoing strong execution, 80/20 productivity, and improving product and customer mix.

Business Outlook

Mr. Bosway concluded, “For 2024, we expect strong performances for all four segments, with Renewables and Agtech returning to top-line growth and Residential and Infrastructure positioned for continued performance. We will continue to work our proven playbook, leveraging our operating engine for scale and driving revenue growth, continued margin expansion and strong cash flow generation.”

Gibraltar is providing its guidance for earnings for the full year 2024. Consolidated revenue is expected to range between $1.43 billion and $1.48 billion, compared to $1.37 billion in 2023. GAAP EPS is expected to range between $4.04 and $4.29, compared to $3.59 in 2023, and adjusted EPS is expected to range between $4.57 and $4.82, compared to $4.11 in 2023.

Fourth Quarter 2023 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 2023. 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, the loss of any key customers, adverse effects of inflation, our ability to continue to improve operating margins, our ability to translate our backlog into net sales, other general economic conditions and conditions in the particular markets in which we operate, changes 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 IT systems, the impact of regulation (including the Department of Commerce’s solar panel anti-circumvention investigation, the Auxin Solar challenge to the Presidential waiver of tariffs 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 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 net sales, 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 net sales reflects the removal of net sales associated with our Processing business, which has been liquidated. Adjusted net income, operating income and margin exclude 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 which has been liquidated. These special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations. The aforementioned exclusions along with other adjustments to other income below operating profit are excluded from adjusted EPS. Adjusted EBITDA further excludes interest, taxes, depreciation, amortization and stock compensation expense. 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 net sales. The Company believes that the presentation of adjusted measures and free cash flow 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 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 the Company’s presentation of non-GAAP financial measures should not be construed as an inference that the Company’s 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,

 

 

2023

 

 

 

2022

 

 

2023

 

 

 

2022

Net sales

$

328,811

 

 

$

313,861

 

$

1,377,736

 

 

$

1,389,966

Cost of sales

 

245,897

 

 

 

244,838

 

 

1,015,770

 

 

 

1,071,272

Gross profit

 

82,914

 

 

 

69,023

 

 

361,966

 

 

 

318,694

Selling, general, and administrative expense

 

54,025

 

 

 

47,651

 

 

207,440

 

 

 

188,592

Intangible asset impairment

 

3,797

 

 

 

 

 

3,797

 

 

 

Income from operations

 

25,092

 

 

 

21,372

 

 

150,729

 

 

 

130,102

Interest (income) expense, net

 

(214

)

 

 

1,858

 

 

3,002

 

 

 

4,047

Other expense (income)

 

681

 

 

 

13,768

 

 

(1,265

)

 

 

14,565

Income before taxes

 

24,625

 

 

 

5,746

 

 

148,992

 

 

 

111,490

Provision for income taxes

 

5,191

 

 

 

2,398

 

 

38,459

 

 

 

29,084

Net income

$

19,434

 

 

$

3,348

 

$

110,533

 

 

$

82,406

 

 

 

 

 

 

 

 

Net earnings per share:

 

 

 

 

 

 

 

Basic

$

0.64

 

 

$

0.11

 

$

3.61

 

 

$

2.57

Diluted

$

0.63

 

 

$

0.11

 

$

3.59

 

 

$

2.56

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

30,523

 

 

 

31,135

 

 

30,626

 

 

 

32,096

Diluted

 

30,724

 

 

 

31,257

 

 

30,785

 

 

 

32,192

 

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 

 

December 31,
2023

 

December 31,
2022

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

99,426

 

 

$

17,608

 

Accounts receivable, net of allowance of $5,572 and $3,746, respectively

 

224,550

 

 

 

217,156

 

Inventories, net

 

120,503

 

 

 

170,360

 

Prepaid expenses and other current assets

 

17,772

 

 

 

18,813

 

Total current assets

 

462,251

 

 

 

423,937

 

Property, plant, and equipment, net

 

107,603

 

 

 

109,584

 

Operating lease assets

 

44,918

 

 

 

26,502

 

Goodwill

 

513,383

 

 

 

512,363

 

Acquired intangibles

 

125,980

 

 

 

137,526

 

Other assets

 

2,316

 

 

 

701

 

 

$

1,256,451

 

 

$

1,210,613

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

92,124

 

 

$

106,582

 

Accrued expenses

 

88,719

 

 

 

73,721

 

Billings in excess of cost

 

44,735

 

 

 

35,017

 

Total current liabilities

 

225,578

 

 

 

215,320

 

Long-term debt

 

 

 

 

88,762

 

Deferred income taxes

 

57,103

 

 

 

47,088

 

Non-current operating lease liabilities

 

35,989

 

 

 

19,041

 

Other non-current liabilities

 

22,783

 

 

 

18,303

 

Stockholders’ equity:

 

 

 

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

 

 

 

 

 

Common stock, $0.01 par value; authorized 100,000 shares; 34,219 and 34,060 shares issued and outstanding in 2023 and 2022

 

342

 

 

 

340

 

Additional paid-in capital

 

332,621

 

 

 

322,873

 

Retained earnings

 

738,511

 

 

 

627,978

 

Accumulated other comprehensive loss

 

(2,114

)

 

 

(3,432

)

Cost of 3,778 and 3,199 common shares held in treasury in 2023 and 2022

 

(154,362

)

 

 

(125,660

)

Total stockholders’ equity

 

914,998

 

 

 

822,099

 

 

$

1,256,451

 

 

$

1,210,613

 

 

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

Twelve Months Ended

December 31,

 

 

2023

 

 

 

2022

 

Cash Flows from Operating Activities

 

 

 

Net income

$

110,533

 

 

$

82,406

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

27,378

 

 

 

26,167

 

Intangible asset impairment

 

3,797

 

 

 

 

Stock compensation expense

 

9,750

 

 

 

8,334

 

Exit activity costs, non-cash

 

2,771

 

 

 

16,266

 

Provision for deferred income taxes

 

10,800

 

 

 

6,337

 

Other, net

 

12,492

 

 

 

1,506

 

Changes in operating assets and liabilities net of effects from acquisitions:

 

 

 

Accounts receivable

 

(15,375

)

 

 

32,754

 

Inventories

 

45,908

 

 

 

14,377

 

Other current assets and other assets

 

514

 

 

 

2,062

 

Accounts payable

 

(14,387

)

 

 

(76,260

)

Accrued expenses and other non-current liabilities

 

24,295

 

 

 

(11,258

)

Net cash provided by operating activities

 

218,476

 

 

 

102,691

 

Cash Flows from Investing Activities

 

 

 

Acquisitions, net of cash acquired

 

(9,863

)

 

 

(51,621

)

Purchases of property, plant, and equipment, net

 

(13,906

)

 

 

(20,062

)

Net proceeds from sale of business

 

8,047

 

 

 

 

Net cash used in investing activities

 

(15,722

)

 

 

(71,683

)

Cash Flows from Financing Activities

 

 

 

Proceeds from long-term debt

 

50,000

 

 

 

204,500

 

Long-term debt payments

 

(141,000

)

 

 

(138,000

)

Payment of debt issuance costs

 

 

 

 

(2,013

)

Purchase of common stock at market prices

 

(29,329

)

 

 

(89,494

)

Net cash used in financing activities

 

(120,329

)

 

 

(25,007

)

Effect of exchange rate changes on cash

 

(607

)

 

 

(1,242

)

Net increase in cash and cash equivalents

 

81,818

 

 

 

4,759

 

Cash and cash equivalents at beginning of year

 

17,608

 

 

 

12,849

 

Cash and cash equivalents at end of year

$

99,426

 

 

$

17,608

 

 

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

December 31, 2023

 

 

As

Reported

In GAAP Statements

 

Restructuring Charges

 

Acquisition Related Items

 

Portfolio Management

 

Adjusted

Financial Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

Renewables

 

$

87,712

 

 

$

 

 

$

 

 

$

 

 

$

87,712

 

Residential

 

 

179,327

 

 

 

 

 

 

 

 

 

 

 

 

179,327

 

Agtech

 

 

42,421

 

 

 

 

 

 

 

 

 

 

 

 

42,421

 

Infrastructure

 

 

19,351

 

 

 

 

 

 

 

 

 

 

 

 

19,351

 

Consolidated sales

 

 

328,811

 

 

 

 

 

 

 

 

 

 

 

 

328,811

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

9,076

 

 

 

2,075

 

 

 

331

 

 

 

 

 

 

11,482

 

Residential

 

 

27,442

 

 

 

4,021

 

 

 

 

 

 

 

 

 

31,463

 

Agtech

 

 

(4,277

)

 

 

3,196

 

 

 

 

 

 

(339

)

 

 

(1,420

)

Infrastructure

 

 

3,601

 

 

 

 

 

 

 

 

 

 

 

 

3,601

 

Segment Income

 

 

35,842

 

 

 

9,292

 

 

 

331

 

 

 

(339

)

 

 

45,126

 

Unallocated corporate expense

 

 

(10,750

)

 

 

1

 

 

 

8

 

 

 

(7

)

 

 

(10,748

)

Consolidated income from operations

 

 

25,092

 

 

 

9,293

 

 

 

339

 

 

 

(346

)

 

 

34,378

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

(214

)

 

 

 

 

 

 

 

 

 

 

 

(214

)

Other expense

 

 

681

 

 

 

 

 

 

 

 

 

(643

)

 

 

38

 

Income before income taxes

 

 

24,625

 

 

 

9,293

 

 

 

339

 

 

 

297

 

 

 

34,554

 

Provision for income taxes

 

 

5,191

 

 

 

2,354

 

 

 

86

 

 

 

908

 

 

 

8,539

 

Net income

 

$

19,434

 

 

$

6,939

 

 

$

253

 

 

$

(611

)

 

$

26,015

 

Net income per share – diluted

 

$

0.63

 

 

$

0.23

 

 

$

0.01

 

 

$

(0.02

)

 

$

0.85

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

10.3

%

 

 

2.4

%

 

 

0.4

%

 

 

%

 

 

13.1

%

Residential

 

 

15.3

%

 

 

2.2

%

 

 

%

 

 

%

 

 

17.5

%

Agtech

 

 

(10.1

)%

 

 

7.5

%

 

 

%

 

 

(0.8

)%

 

 

(3.3

)%

Infrastructure

 

 

18.6

%

 

 

%

 

 

%

 

 

%

 

 

18.6

%

Segments Margin

 

 

10.9

%

 

 

2.9

%

 

 

0.1

%

 

 

(0.1

)%

 

 

13.7

%

Consolidated

 

 

7.6

%

 

 

2.9

%

 

 

0.1

%

 

 

(0.1

)%

 

 

10.5

%

 

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

 

Segments 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

 

Net income

 

$

3,348

 

 

$

5,079

 

 

$

809

 

 

$

13,206

 

 

$

22,442

 

Net income 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)

 

 

 

Twelve Months Ended

December 31, 2023

 

 

As

Reported

In GAAP Statements

 

Restructuring Charges

 

Acquisition Related Items

 

Portfolio Management

 

Adjusted

Financial Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

Renewables

 

$

330,738

 

 

$

 

 

$

 

 

$

 

 

$

330,738

 

Residential

 

 

814,803

 

 

 

 

 

 

 

 

 

 

 

 

814,803

 

Agtech

 

 

144,967

 

 

 

 

 

 

 

 

 

(4,059

)

 

 

140,908

 

Infrastructure

 

 

87,228

 

 

 

 

 

 

 

 

 

 

 

 

87,228

 

Consolidated sales

 

 

1,377,736

 

 

 

 

 

 

 

 

 

(4,059

)

 

 

1,373,677

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

30,160

 

 

 

9,394

 

 

 

968

 

 

 

 

 

 

40,522

 

Residential

 

 

143,068

 

 

 

4,811

 

 

 

12

 

 

 

 

 

 

147,891

 

Agtech

 

 

(928

)

 

 

3,918

 

 

 

37

 

 

 

4,119

 

 

 

7,146

 

Infrastructure

 

 

18,529

 

 

 

 

 

 

 

 

 

 

 

 

18,529

 

Segment Income

 

 

190,829

 

 

 

18,123

 

 

 

1,017

 

 

 

4,119

 

 

 

214,088

 

Unallocated corporate expense

 

 

(40,100

)

 

 

(51

)

 

 

300

 

 

 

89

 

 

 

(39,762

)

Consolidated income from operations

 

 

150,729

 

 

 

18,072

 

 

 

1,317

 

 

 

4,208

 

 

 

174,326

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

3,002

 

 

 

 

 

 

 

 

 

 

 

 

3,002

 

Other (income) expense

 

 

(1,265

)

 

 

 

 

 

 

 

 

1,625

 

 

 

360

 

Income before income taxes

 

 

148,992

 

 

 

18,072

 

 

 

1,317

 

 

 

2,583

 

 

 

170,964

 

Provision for income taxes

 

 

38,459

 

 

 

4,583

 

 

 

334

 

 

 

1,048

 

 

 

44,424

 

Net income

 

$

110,533

 

 

$

13,489

 

 

$

983

 

 

$

1,535

 

 

$

126,540

 

Net income per share – diluted

 

$

3.59

 

 

$

0.43

 

 

$

0.04

 

 

$

0.05

 

 

$

4.11

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

Renewables

 

 

9.1

%

 

 

2.8

%

 

 

0.3

%

 

 

%

 

 

12.3

%

Residential

 

 

17.6

%

 

 

0.6

%

 

 

%

 

 

%

 

 

18.2

%

Agtech

 

 

(0.6

)%

 

 

2.7

%

 

 

%

 

 

2.8

%

 

 

5.1

%

Infrastructure

 

 

21.2

%

 

 

%

 

 

%

 

 

%

 

 

21.2

%

Segments Margin

 

 

13.9

%

 

 

1.3

%

 

 

0.1

%

 

 

0.3

%

 

 

15.6

%

Consolidated

 

 

10.9

%

 

 

1.3

%

 

 

0.1

%

 

 

0.3

%

 

 

12.7

%

 

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

 

Segments 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

 

Net income

 

$

82,406

 

 

$

8,627

 

 

$

2,108

 

 

$

16,218

 

 

$

109,359

 

Net income 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)

(unaudited)

 

 

 

Three Months Ended

December 31, 2023

 

 

Consolidated

 

Renewables

 

Residential

 

Agtech

 

Infrastructure

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

328,811

 

 

$

87,712

 

 

$

179,327

 

 

$

42,421

 

 

$

19,351

 

Less: Processing Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Sales

 

$

328,811

 

 

$

87,712

 

 

$

179,327

 

 

$

42,421

 

 

$

19,351

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

19,434

 

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

 

5,191

 

 

 

 

 

 

 

 

 

Interest Income

 

 

(214

)

 

 

 

 

 

 

 

 

Other Expense

 

 

681

 

 

 

 

 

 

 

 

 

Operating Profit

 

 

25,092

 

 

 

9,076

 

 

 

27,442

 

 

 

(4,277

)

 

 

3,601

 

Adjusted Measures*

 

 

9,286

 

 

 

2,406

 

 

 

4,021

 

 

 

2,857

 

 

 

 

Adjusted Operating Profit

 

 

34,378

 

 

 

11,482

 

 

 

31,463

 

 

 

(1,420

)

 

 

3,601

 

Adjusted Operating Margin

 

 

10.5

%

 

 

13.1

%

 

 

17.5

%

 

 

(3.3

)%

 

 

18.6

%

Adjusted Other Expense

 

 

89

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

 

6,804

 

 

 

2,109

 

 

 

2,537

 

 

 

940

 

 

 

788

 

Stock Compensation Expense

 

 

2,493

 

 

 

230

 

 

 

498

 

 

 

57

 

 

 

77

 

Adjusted EBITDA

 

$

43,586

 

 

$

13,821

 

 

$

34,498

 

 

$

(423

)

 

$

4,466

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Margin

 

 

13.3

%

 

 

15.8

%

 

 

19.2

%

 

 

(1.0

)%

 

 

23.1

%

 

 

 

 

 

 

 

 

 

 

 

Cash Flow - Operating Activities

 

 

11,820

 

 

 

 

 

 

 

 

 

Purchase of PPE, Net

 

 

(5,930

)

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

5,890

 

 

 

 

 

 

 

 

 

Free Cash Flow - % of Adjusted Net Sales

 

 

1.8

%

 

 

 

 

 

 

 

 

 

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

 

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(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 Net Sales

 

 

(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

 

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

%

 

 

 

 

 

 

 

 

 

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

 

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands)

(unaudited)

 

 

 

Twelve Months Ended

December 31, 2023

 

 

Consolidated

 

Renewables

 

Residential

 

Agtech

 

Infrastructure

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

1,377,736

 

 

$

330,738

 

 

$

814,803

 

 

$

144,967

 

 

$

87,228

 

Less: Processing Net Sales

 

 

(4,059

)

 

 

 

 

 

 

 

 

(4,059

)

 

 

 

Adjusted Net Sales

 

$

1,373,677

 

 

$

330,738

 

 

$

814,803

 

 

$

140,908

 

 

$

87,228

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

110,533

 

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

 

38,459

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

3,002

 

 

 

 

 

 

 

 

 

Other Income

 

 

(1,265

)

 

 

 

 

 

 

 

 

Operating Profit

 

 

150,729

 

 

 

30,160

 

 

 

143,068

 

 

 

(928

)

 

 

18,529

 

Adjusted Measures*

 

 

23,597

 

 

 

10,362

 

 

 

4,823

 

 

 

8,074

 

 

 

 

Adjusted Operating Profit

 

 

174,326

 

 

 

40,522

 

 

 

147,891

 

 

 

7,146

 

 

 

18,529

 

Adjusted Operating Margin

 

 

12.7

%

 

 

12.3

%

 

 

18.2

%

 

 

5.1

%

 

 

21.2

%

Adjusted Other Expense

 

 

411

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

 

 

27,378

 

 

 

8,670

 

 

 

10,079

 

 

 

3,790

 

 

 

3,137

 

Stock Compensation Expense

 

 

9,750

 

 

 

881

 

 

 

1,633

 

 

 

197

 

 

 

289

 

Adjusted EBITDA

 

$

211,043

 

 

$

50,073

 

 

$

159,603

 

 

$

11,133

 

 

$

21,955

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Margin

 

 

15.4

%

 

 

15.1

%

 

 

19.6

%

 

 

7.9

%

 

 

25.2

%

 

 

 

 

 

 

 

 

 

 

 

Cash Flow - Operating Activities

 

 

218,476

 

 

 

 

 

 

 

 

 

Purchase of PPE, Net

 

 

(13,906

)

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

204,570

 

 

 

 

 

 

 

 

 

Free Cash Flow - % of Adjusted Net Sales

 

 

14.9

%

 

 

 

 

 

 

 

 

 

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

 

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(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 Net Sales

 

 

(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: Processing Business 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

%

 

 

 

 

 

 

 

 

 

*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

$Cashtags

Contacts

LHA Investor Relations
Jody Burfening/Carolyn Capaccio
(212) 838-3777
rock@lhai.com