Gibraltar Announces Full Year And Fourth Quarter 2020 Financial Results

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

%

Gibraltar Announces Full Year And Fourth Quarter 2020 Financial Results

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