Delaware | 0-22462 | 16-1445150 | ||
(State or other jurisdiction of incorporation ) | (Commission File Number) | (IRS Employer Identification No.) |
Item 2.02 Results of Operations and Financial Condition | 3 | ||||
Item 7.01 Regulation FD Disclosure | 3 | ||||
Item 9.01 Financial Statements and Exhibits | 3 | ||||
SIGNATURE | 4 |
Exhibit No. | Description | |
Earnings Release issued by Gibraltar Industries, Inc. on February 21, 2019 |
GIBRALTAR INDUSTRIES, INC. | ||||
Date: | February 21, 2019 | |||
By: | /s/ Jeffrey J. Watorek | |||
Jeffrey J. Watorek | ||||
Vice President, Treasurer and Secretary |
Three Months Ended December 31, | |||||||
Dollars in millions, except EPS | GAAP | Adjusted | |||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||
Net Sales | $240.9 | $258.1 | (6.7)% | $240.9 | $258.1 | (6.7)% | |
Net Income | $13.1 | $25.2 | (48.0)% | $15.2 | $13.2 | 15.2% | |
Diluted EPS | $0.40 | $0.78 | (48.7)% | $0.47 | $0.41 | 14.6% |
Three Months Ended December 31, | |||||||
Dollars in millions | GAAP | Adjusted | |||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||
Net Sales | $102.2 | $105.3 | (2.9)% | $102.2 | $105.3 | (2.9)% | |
Operating Margin | 12.0% | 14.2% | (220) bps | 13.4% | 14.3% | (90) bps |
Three Months Ended December 31, | |||||||
Dollars in millions | GAAP | Adjusted | |||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||
Net Sales | $50.5 | $49.1 | 2.9% | $50.5 | $49.1 | 2.9% | |
Operating Margin | 6.4% | 4.6% | 180 bps | 6.7% | 4.3% | 240 bps |
Three Months Ended December 31, | |||||||
Dollars in millions | GAAP | Adjusted | |||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||
Net Sales | $88.1 | $103.7 | (15.0)% | $88.1 | $103.7 | (15.0)% | |
Operating Margin | 9.9% | 11.4% | (150) bps | 11.6% | 12.0% | (40) bps |
FY 2019 Guidance Reconciliation | |||||||||||||||||||||||
Gibraltar Industries | |||||||||||||||||||||||
Dollars in millions, except EPS | Operating | Income | Net | Diluted Earnings | |||||||||||||||||||
Income | Margin | Taxes | Income | Per Share | |||||||||||||||||||
GAAP Measures | $ | 93-100 | 9.0-9.5% | $ | 26-28 | $ | 64-69 | $ | 1.95-2.10 | ||||||||||||||
Restructuring Costs | 17 | 1.6% | 3 | 15 | $0.45 | ||||||||||||||||||
Adjusted Measures | $ | 110-117 | 10.6-11.1% | $ | 29-31 | $ | 79-84 | $ | 2.40-2.55 |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net Sales | $ | 240,913 | $ | 258,112 | $ | 1,002,372 | $ | 986,918 | |||||||
Cost of sales | 187,653 | 201,383 | 760,012 | 750,374 | |||||||||||
Gross profit | 53,260 | 56,729 | 242,360 | 236,544 | |||||||||||
Selling, general, and administrative expense | 33,261 | 34,135 | 146,840 | 143,448 | |||||||||||
Intangible asset impairment | 1,552 | 47 | 1,552 | 247 | |||||||||||
Income from operations | 18,447 | 22,547 | 93,968 | 92,849 | |||||||||||
Interest expense | 2,759 | 3,420 | 12,064 | 14,032 | |||||||||||
Other expense | 2,009 | 98 | 1,959 | 909 | |||||||||||
Income before taxes | 13,679 | 19,029 | 79,945 | 77,908 | |||||||||||
Provision for (benefit of) income taxes | 562 | (6,147 | ) | 16,136 | 14,943 | ||||||||||
Income from continuing operations | 13,117 | 25,176 | 63,809 | 62,965 | |||||||||||
Discontinued operations: | |||||||||||||||
Loss before taxes | — | — | — | (644 | ) | ||||||||||
Benefit of income taxes | — | — | — | (239 | ) | ||||||||||
Loss from discontinued operations | — | — | — | (405 | ) | ||||||||||
Net income | $ | 13,117 | $ | 25,176 | $ | 63,809 | $ | 62,560 | |||||||
Net earnings per share – Basic: | |||||||||||||||
Income from continuing operations | $ | 0.41 | $ | 0.79 | $ | 2.00 | $ | 1.98 | |||||||
Loss from discontinued operations | — | — | — | (0.01 | ) | ||||||||||
Net income | $ | 0.41 | $ | 0.79 | $ | 2.00 | $ | 1.97 | |||||||
Weighted average shares outstanding -- Basic | 32,148 | 31,771 | 31,979 | 31,701 | |||||||||||
Net earnings per share – Diluted: | |||||||||||||||
Income from continuing operations | $ | 0.40 | $ | 0.78 | $ | 1.96 | $ | 1.95 | |||||||
Loss from discontinued operations | — | — | — | (0.01 | ) | ||||||||||
Net income | $ | 0.40 | $ | 0.78 | $ | 1.96 | $ | 1.94 | |||||||
Weighted average shares outstanding -- Diluted | 32,562 | 32,420 | 32,534 | 32,250 |
December 31, 2018 | December 31, 2017 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 297,006 | $ | 222,280 | |||
Accounts receivable, net | 140,283 | 145,385 | |||||
Inventories | 98,913 | 86,372 | |||||
Other current assets | 8,351 | 8,727 | |||||
Total current assets | 544,553 | 462,764 | |||||
Property, plant, and equipment, net | 95,830 | 97,098 | |||||
Goodwill | 323,671 | 321,074 | |||||
Acquired intangibles | 96,375 | 105,768 | |||||
Other assets | 1,216 | 4,681 | |||||
$ | 1,061,645 | $ | 991,385 | ||||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 79,136 | $ | 82,387 | |||
Accrued expenses | 87,074 | 75,467 | |||||
Billings in excess of cost | 17,857 | 12,779 | |||||
Current maturities of long-term debt | 208,805 | 400 | |||||
Total current liabilities | 392,872 | 171,033 | |||||
Long-term debt | 1,600 | 209,621 | |||||
Deferred income taxes | 36,530 | 31,237 | |||||
Other non-current liabilities | 33,950 | 47,775 | |||||
Shareholders’ equity: | |||||||
Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding | — | — | |||||
Common stock, $0.01 par value; authorized 50,000 shares; 32,887 and 32,332 shares issued in 2018 and 2017 | 329 | 323 | |||||
Additional paid-in capital | 282,525 | 271,957 | |||||
Retained earnings | 338,995 | 274,562 | |||||
Accumulated other comprehensive loss | (7,234 | ) | (4,366 | ) | |||
Cost of 796 and 615 common shares held in treasury in 2018 and 2017 | (17,922 | ) | (10,757 | ) | |||
Total shareholders’ equity | 596,693 | 531,719 | |||||
$ | 1,061,645 | $ | 991,385 |
Twelve Months Ended December 31, | |||||||
2018 | 2017 | ||||||
Cash Flows from Operating Activities | |||||||
Net income | $ | 63,809 | $ | 62,560 | |||
Loss from discontinued operations | — | (405 | ) | ||||
Income from continuing operations | 63,809 | 62,965 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 20,374 | 21,690 | |||||
Intangible asset impairment | 1,552 | 247 | |||||
Stock compensation expense | 9,189 | 7,122 | |||||
Net gain on sale of assets | (143 | ) | (123 | ) | |||
Exit activity costs (recoveries), non-cash | 1,344 | (1,877 | ) | ||||
Provision for (benefit of) deferred income taxes | 4,781 | (7,105 | ) | ||||
Other, net | 1,386 | 2,118 | |||||
Changes in operating assets and liabilities (excluding the effects of acquisitions): | |||||||
Accounts receivable | 9,737 | (21,806 | ) | ||||
Inventories | (16,951 | ) | 870 | ||||
Other current assets and other assets | (22 | ) | (2,629 | ) | |||
Accounts payable | (4,828 | ) | 11,332 | ||||
Accrued expenses and other non-current liabilities | 7,317 | (2,734 | ) | ||||
Net cash provided by operating activities | 97,545 | 70,070 | |||||
Cash Flows from Investing Activities | |||||||
Purchases of property, plant, and equipment | (12,457 | ) | (11,399 | ) | |||
Acquisitions, net of cash acquired | (5,241 | ) | (18,494 | ) | |||
Net proceeds from sale of property and equipment | 3,149 | 13,096 | |||||
Net cash used in investing activities | (14,549 | ) | (16,797 | ) | |||
Cash Flows from Financing Activities | |||||||
Long-term debt payments | (400 | ) | (400 | ) | |||
Purchase of treasury stock at market prices | (7,165 | ) | (2,872 | ) | |||
Net proceeds from issuance of common stock | 1,385 | 674 | |||||
Net cash used in financing activities | (6,180 | ) | (2,598 | ) | |||
Effect of exchange rate changes on cash | (2,090 | ) | 1,428 | ||||
Net increase in cash and cash equivalents | 74,726 | 52,103 | |||||
Cash and cash equivalents at beginning of year | 222,280 | 170,177 | |||||
Cash and cash equivalents at end of year | $ | 297,006 | $ | 222,280 |
Three Months Ended December 31, 2018 | ||||||||||||||||||||
As Reported In GAAP Statements | Restructuring & Acquisition Related Items | Senior Leadership Transition Costs | Tax Reform | Adjusted Financial Measures | ||||||||||||||||
Net Sales | ||||||||||||||||||||
Residential Products | $ | 102,301 | $ | — | $ | — | $ | — | $ | 102,301 | ||||||||||
Industrial & Infrastructure Products | 50,788 | — | — | — | 50,788 | |||||||||||||||
Less Inter-Segment Sales | (242 | ) | — | — | — | (242 | ) | |||||||||||||
50,546 | — | — | — | 50,546 | ||||||||||||||||
Renewable Energy & Conservation | 88,066 | — | — | — | 88,066 | |||||||||||||||
Consolidated sales | 240,913 | — | — | — | 240,913 | |||||||||||||||
Income from operations | ||||||||||||||||||||
Residential Products | 12,266 | 1,425 | — | — | 13,691 | |||||||||||||||
Industrial & Infrastructure Products | 3,238 | 140 | — | — | 3,378 | |||||||||||||||
Renewable Energy & Conservation | 8,733 | 1,447 | — | — | 10,180 | |||||||||||||||
Segment Income | 24,237 | 3,012 | — | — | 27,249 | |||||||||||||||
Unallocated corporate expense | (5,790 | ) | 33 | (430 | ) | — | (6,187 | ) | ||||||||||||
Consolidated income from operations | 18,447 | 3,045 | (430 | ) | — | 21,062 | ||||||||||||||
Interest expense | 2,759 | — | — | — | 2,759 | |||||||||||||||
Other expense (income) | 2,009 | (3,060 | ) | — | — | (1,051 | ) | |||||||||||||
Income before income taxes | 13,679 | 6,105 | (430 | ) | — | 19,354 | ||||||||||||||
Provision for income taxes | 562 | 3,978 | (370 | ) | (48 | ) | 4,122 | |||||||||||||
Income from continuing operations | $ | 13,117 | $ | 2,127 | $ | (60 | ) | $ | 48 | $ | 15,232 | |||||||||
Income from continuing operations per share – diluted | $ | 0.40 | $ | 0.07 | $ | — | $ | — | $ | 0.47 | ||||||||||
Operating margin | ||||||||||||||||||||
Residential Products | 12.0 | % | 1.4 | % | — | % | — | % | 13.4 | % | ||||||||||
Industrial & Infrastructure Products | 6.4 | % | 0.3 | % | — | % | — | % | 6.7 | % | ||||||||||
Renewable Energy & Conservation | 9.9 | % | 1.6 | % | — | % | — | % | 11.6 | % | ||||||||||
Segments Margin | 10.1 | % | 1.2 | % | — | % | — | % | 11.3 | % | ||||||||||
Consolidated | 7.7 | % | 1.2 | % | (0.2 | )% | — | % | 8.7 | % |
Three Months Ended December 31, 2017 | ||||||||||||||||||||||||
As Reported In GAAP Statements | Restructuring & Acquisition Related Items | Senior Leadership Transition Costs | Portfolio Management | Tax Reform | Adjusted Financial Measures | |||||||||||||||||||
Net Sales | ||||||||||||||||||||||||
Residential Products | $ | 105,299 | $ | — | $ | — | $ | — | $ | — | $ | 105,299 | ||||||||||||
Industrial & Infrastructure Products | 49,405 | — | — | — | — | 49,405 | ||||||||||||||||||
Less Inter-Segment Sales | (253 | ) | — | — | — | — | (253 | ) | ||||||||||||||||
49,152 | — | — | — | — | 49,152 | |||||||||||||||||||
Renewable Energy & Conservation | 103,661 | — | — | — | — | 103,661 | ||||||||||||||||||
Consolidated sales | 258,112 | — | — | — | — | 258,112 | ||||||||||||||||||
Income from operations | ||||||||||||||||||||||||
Residential Products | 14,909 | 150 | — | — | — | 15,059 | ||||||||||||||||||
Industrial & Infrastructure Products | 2,245 | 64 | — | (195 | ) | — | 2,114 | |||||||||||||||||
Renewable Energy & Conservation | 11,837 | 621 | — | (2 | ) | — | 12,456 | |||||||||||||||||
Segment Income | 28,991 | 835 | — | (197 | ) | — | 29,629 | |||||||||||||||||
Unallocated corporate expense | (6,444 | ) | 82 | 535 | — | — | (5,827 | ) | ||||||||||||||||
Consolidated income from operations | 22,547 | 917 | 535 | (197 | ) | — | 23,802 | |||||||||||||||||
Interest expense | 3,420 | — | — | — | — | 3,420 | ||||||||||||||||||
Other expense | 98 | — | — | — | — | 98 | ||||||||||||||||||
Income before income taxes | 19,029 | 917 | 535 | (197 | ) | — | 20,284 | |||||||||||||||||
(Benefit of) provision for income taxes | (6,147 | ) | 305 | 203 | 150 | 12,535 | 7,046 | |||||||||||||||||
Income from continuing operations | $ | 25,176 | $ | 612 | $ | 332 | $ | (347 | ) | $ | (12,535 | ) | $ | 13,238 | ||||||||||
Income from continuing operations per share – diluted | $ | 0.78 | $ | 0.02 | $ | 0.01 | $ | (0.01 | ) | $ | (0.39 | ) | $ | 0.41 | ||||||||||
Operating margin | ||||||||||||||||||||||||
Residential Products | 14.2 | % | 0.1 | % | — | % | — | % | — | % | 14.3 | % | ||||||||||||
Industrial & Infrastructure Products | 4.6 | % | 0.1 | % | — | % | (0.4 | )% | — | % | 4.3 | % | ||||||||||||
Renewable Energy & Conservation | 11.4 | % | 0.6 | % | — | % | — | % | — | % | 12.0 | % | ||||||||||||
Segments Margin | 11.2 | % | 0.3 | % | — | % | (0.1 | )% | — | % | 11.5 | % | ||||||||||||
Consolidated | 8.7 | % | 0.3 | % | 0.2 | % | (0.1 | )% | — | % | 9.2 | % |
Twelve Months Ended December 31, 2018 | ||||||||||||||||||||
As Reported In GAAP Statements | Restructuring & Acquisition Related Items | Senior Leadership Transition Costs | Tax Reform | Adjusted Financial Measures | ||||||||||||||||
Net Sales | ||||||||||||||||||||
Residential Products | $ | 463,216 | $ | — | $ | — | $ | — | $ | 463,216 | ||||||||||
Industrial & Infrastructure Products | 223,006 | — | — | — | 223,006 | |||||||||||||||
Less Inter-Segment Sales | (1,103 | ) | — | — | — | (1,103 | ) | |||||||||||||
221,903 | — | — | — | 221,903 | ||||||||||||||||
Renewable Energy & Conservation | 317,253 | — | — | — | 317,253 | |||||||||||||||
Consolidated sales | 1,002,372 | — | — | — | 1,002,372 | |||||||||||||||
Income from operations | ||||||||||||||||||||
Residential Products | 69,838 | 3,107 | — | — | 72,945 | |||||||||||||||
Industrial & Infrastructure Products | 15,336 | 1,402 | — | — | 16,738 | |||||||||||||||
Renewable Energy & Conservation | 37,423 | 1,424 | 178 | — | 39,025 | |||||||||||||||
Segment Income | 122,597 | 5,933 | 178 | — | 128,708 | |||||||||||||||
Unallocated corporate expense | (28,629 | ) | 935 | 414 | — | (27,280 | ) | |||||||||||||
Consolidated income from operations | 93,968 | 6,868 | 592 | — | 101,428 | |||||||||||||||
Interest expense | 12,064 | — | — | — | 12,064 | |||||||||||||||
Other expense (income) | 1,959 | (3,060 | ) | — | — | (1,101 | ) | |||||||||||||
Income before income taxes | 79,945 | 9,928 | 592 | — | 90,465 | |||||||||||||||
Provision for income taxes | 16,136 | 4,889 | (106 | ) | (225 | ) | 20,694 | |||||||||||||
Income from continuing operations | $ | 63,809 | $ | 5,039 | $ | 698 | $ | 225 | $ | 69,771 | ||||||||||
Income from continuing operations per share – diluted | $ | 1.96 | $ | 0.15 | $ | 0.02 | $ | 0.01 | $ | 2.14 | ||||||||||
Operating margin | ||||||||||||||||||||
Residential Products | 15.1 | % | 0.6 | % | — | % | — | % | 15.7 | % | ||||||||||
Industrial & Infrastructure Products | 6.9 | % | 0.6 | % | — | % | — | % | 7.5 | % | ||||||||||
Renewable Energy & Conservation | 11.8 | % | 0.4 | % | 0.1 | % | — | % | 12.3 | % | ||||||||||
Segments Margin | 12.2 | % | 0.6 | % | — | % | — | % | 12.8 | % | ||||||||||
Consolidated | 9.4 | % | 0.7 | % | 0.1 | % | — | % | 10.1 | % |
Twelve Months Ended December 31, 2017 | ||||||||||||||||||||||||
As Reported In GAAP Statements | Restructuring & Acquisition Related Items | Senior Leadership Transition Costs | Portfolio Management | Tax Reform | Adjusted Financial Measures | |||||||||||||||||||
Net Sales | ||||||||||||||||||||||||
Residential Products | $ | 466,603 | $ | — | $ | — | $ | — | $ | — | $ | 466,603 | ||||||||||||
Industrial & Infrastructure Products | 215,211 | — | — | — | — | 215,211 | ||||||||||||||||||
Less Inter-Segment Sales | (1,247 | ) | — | — | — | — | (1,247 | ) | ||||||||||||||||
213,964 | — | — | — | — | 213,964 | |||||||||||||||||||
Renewable Energy & Conservation | 306,351 | — | — | — | — | 306,351 | ||||||||||||||||||
Consolidated sales | 986,918 | — | — | — | — | 986,918 | ||||||||||||||||||
Income from operations | ||||||||||||||||||||||||
Residential Products | 76,893 | 1,403 | — | — | — | 78,296 | ||||||||||||||||||
Industrial & Infrastructure Products | 8,159 | 49 | 260 | 287 | — | 8,755 | ||||||||||||||||||
Renewable Energy & Conservation | 30,218 | 1,155 | 252 | 2,340 | — | 33,965 | ||||||||||||||||||
Segment Income | 115,270 | 2,607 | 512 | 2,627 | — | 121,016 | ||||||||||||||||||
Unallocated corporate expense | (22,421 | ) | 407 | 193 | — | — | (21,821 | ) | ||||||||||||||||
Consolidated income from operations | 92,849 | 3,014 | 705 | 2,627 | — | 99,195 | ||||||||||||||||||
Interest expense | 14,032 | — | — | — | — | 14,032 | ||||||||||||||||||
Other expense | 909 | — | — | — | — | 909 | ||||||||||||||||||
Income before income taxes | 77,908 | 3,014 | 705 | 2,627 | — | 84,254 | ||||||||||||||||||
Provision for income taxes | 14,943 | 1,118 | 272 | 80 | 12,535 | 28,948 | ||||||||||||||||||
Income from continuing operations | $ | 62,965 | $ | 1,896 | $ | 433 | $ | 2,547 | $ | (12,535 | ) | $ | 55,306 | |||||||||||
Income from continuing operations per share – diluted | $ | 1.95 | $ | 0.06 | $ | 0.01 | $ | 0.08 | $ | (0.39 | ) | $ | 1.71 | |||||||||||
Operating margin | ||||||||||||||||||||||||
Residential Products | 16.5 | % | 0.3 | % | — | % | — | % | — | % | 16.8 | % | ||||||||||||
Industrial & Infrastructure Products | 3.8 | % | — | % | 0.1 | % | 0.1 | % | — | % | 4.1 | % | ||||||||||||
Renewable Energy & Conservation | 9.9 | % | 0.4 | % | 0.1 | % | 0.8 | % | — | % | 11.1 | % | ||||||||||||
Segments Margin | 11.7 | % | 0.2 | % | 0.1 | % | 0.3 | % | — | % | 12.3 | % | ||||||||||||
Consolidated | 9.4 | % | 0.3 | % | 0.1 | % | 0.3 | % | — | % | 10.1 | % |
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