GIBRALTAR ANNOUNCES SECOND QUARTER 2022 FINANCIAL RESULTS
Revenue: GAAP up 5%, Adjusted up 7%; EPS: GAAP up 13%, Adjusted up 19%
Reaffirming 2022 Revenue and EPS Growth Outlook
Order Backlog at $408 Million, up 5%
Buffalo, New York, August 3, 2022 - 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-month period ended June 30, 2022.
“Gibraltar generated solid performance in the quarter, with adjusted revenue up 7% and adjusted EPS up 19%. Our Renewables, Agtech, and Infrastructure margins improved sequentially according to our expectations and our Residential business delivered both strong revenue and margin performance,” Chairman and CEO Bill Bosway stated. “Part of our ongoing strategy is to further simplify and digitize our businesses, and we completed two additional ERP implementations during the quarter; these systems are designed to enable us to better connect with and provide seamless value to our customers while increasing speed, flexibility, and efficiency of our operations. Demand drivers remain solid for the overall business despite our Renewables’ customers waiting for clarity on panel availability to execute orders and finalize projects.”
Second Quarter 2022 Consolidated Results from Continuing Operations
Below are second quarter 2022 consolidated results from continuing operations:
| Three Months Ended June 30, | |||||||||||||||||||||||
| $Millions, except EPS | GAAP | Adjusted | |||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||
| Net Sales | $366.9 | $348.4 | 5.3% | $364.2 | $341.1 | 6.8% | |||||||||||||||||
| Net Income | $29.3 | $26.4 | 11.0% | $31.5 | $26.7 | 18.0% | |||||||||||||||||
| Diluted EPS | $0.90 | $0.80 | 12.5% | $0.96 | $0.81 | 18.5% | |||||||||||||||||
Revenue from continuing operations increased 5.3% to $366.9 million. Adjusted revenue increased 6.8% to $364.2 million driven primarily by participation gains and price management in the Residential segment, partially offset by continued supply chain challenges and project delays in the Agtech and Renewables segments.
GAAP earnings increased 11.0% to $29.3 million, or $0.90 per share, and adjusted earnings increased 18.0% to $31.5 million, or $0.96 per share. Profitability in the quarter was driven by participation gains, price management, business mix, and 80/20 initiatives.
Adjusted measures exclude charges for restructuring initiatives, acquisition-related items, senior leadership transition costs, and the results of the Processing business, which was classified as held for sale in the first quarter of 2022, as further described in the appended reconciliation of adjusted financial measures.
Second Quarter Segment Results
Renewables
For the second quarter, the Renewables segment reported:
| Three Months Ended June 30, | |||||||||||||||||||||||
| $Millions | GAAP | Adjusted | |||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||
| Net Sales | $101.5 | $107.8 | (5.8)% | $101.5 | $107.8 | (5.8)% | |||||||||||||||||
| Operating Income | $6.8 | $9.5 | (28.4%) | $7.1 | $12.2 | (41.8%) | |||||||||||||||||
| Operating Margin | 6.7% | 8.8% | (210) bps | 7.0% | 11.3% | (430) bps | |||||||||||||||||
As expected, solar project schedules remained dynamic as customers continued to understand the impact of the Department of Commerce investigation, the implementation of the Uyghur Forced Labor Prevention Act by the U.S. Custom and Border Protection Agency, and the Executive Order issued by the administration with respect to solar panel tariff enforcement. As a result, revenue was down 5.8%. Backlog was down 2.1% as new bookings slowed pending visibility on these key trade issues. Backlog is expected to improve once these trade issues are resolved.
Adjusted operating income improved $11.4 million, for a margin increase of over 1,200 basis points sequentially and reached double-digit performance in both May and June. Gibraltar expects sequential margin improvement to continue in the second half of the year. Acquisition integration efforts are on track with a common ERP system now live and in-sourcing initiatives on schedule for implementation in the second half of the year.
Residential
For the second quarter, the Residential segment reported:
| Three Months Ended June 30, | |||||||||||||||||||||||
| $Millions | GAAP | Adjusted | |||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||
| Net Sales | $200.2 | $164.2 | 21.9% | $200.2 | $164.2 | 21.9% | |||||||||||||||||
| Operating Income | $35.7 | $27.2 | 31.3% | $37.0 | $27.2 | 36.0% | |||||||||||||||||
| Operating Margin | 17.8% | 16.5% | 130 bps | 18.5% | 16.6% | 190 bps | |||||||||||||||||
Revenue increased 21.9%, marking the eighth consecutive quarter of double-digit growth. Revenue was driven by price management and participation gains.
Adjusted operating income grew 36.0% and adjusted operating margin improved 190 basis points to 18.5% through price / cost management, supply chain initiatives, labor management, and additional 80/20 initiatives. Gibraltar also implemented a new ERP system in the mail and package business.
Agtech
For the second quarter, the Agtech segment reported:
| Three Months Ended June 30, | |||||||||||||||||||||||
| $Millions | GAAP | Adjusted | |||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||
| Net Sales | $43.7 | $53.7 | (18.6)% | $40.9 | $46.4 | (11.9)% | |||||||||||||||||
| Operating Income | $1.5 | $1.0 | 50.0% | $2.7 | $2.7 | - | |||||||||||||||||
| Operating Margin | 3.5% | 1.8% | 170 bps | 6.7% | 5.9% | 80 bps | |||||||||||||||||
GAAP revenue decreased 18.6%, with adjusted revenue down 11.9% due to Produce and Cannabis project movement into the third and fourth quarters of 2022. Quote activity and new order bookings were robust in the quarter, resulting in backlog increasing 30%.
Adjusted operating margin improved 80 basis points over last year through business mix, price / cost management, supply chain improvement, 80/20 initiatives, and integration activities.
Infrastructure
For the second quarter, the Infrastructure segment reported:
| Three Months Ended June 30, | |||||||||||||||||||||||
| $Millions | GAAP | Adjusted | |||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||
| Net Sales | $21.5 | $22.7 | (5.3)% | $21.5 | $22.7 | (5.3)% | |||||||||||||||||
| Operating Income | $2.9 | $4.2 | (31.0)% | $2.9 | $4.2 | (31.0)% | |||||||||||||||||
| Operating Margin | 13.4% | 18.4% | (500) bps | 13.4% | 18.4% | (500) bps | |||||||||||||||||
Revenue decreased 5.3% versus a very strong Q2 2021, which benefitted from the scheduling of customer projects. Order backlog was flat during the quarter, but bidding activity is very strong and new bookings have accelerated early in the third quarter. Management continues to expect a positive impact from the infrastructure bill later in the second half of 2022.
Adjusted operating margin improved 690 basis points sequentially as the business overcomes steel inflation impacting fixed-price projects with state departments of transportation booked in 2020 and early 2021. Unfavorable product mix resulted in margins being down versus last year. Management continues to expect margins to improve through 2022 with lower margin projects subsiding, business mix improving, and volume leverage.
Business Outlook
Gibraltar is reaffirming guidance for revenue and earnings for the full year 2022, with consolidated revenue expected to range between $1.38 billion and $1.43 billion. GAAP EPS is expected to be between $2.80 and $3.00, and adjusted EPS expected to be between $3.20 and $3.40.
“Our first half results, current demand profile, and ongoing 80/20 initiatives support our confidence in delivering our full-year performance commitments. We remain focused on execution, including supply chain optimization, price / cost alignment, labor management, 80/20, and further simplifying our businesses,” said Mr. Bosway.
Second Quarter 2022 Conference Call Details
Gibraltar will host a conference call today starting at 9:00 a.m. ET to review its results for the second quarter of 2022. Interested parties may access the webcast through the Investors section of the Company’s website at www.gibraltar1.com, where related presentation materials will also be posted prior to the conference call. The call may also be accessed by dialing 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 is a leading manufacturer and provider of products and services for the renewable energy, residential, agtech, and infrastructure markets. Gibraltar’s mission, to make life better for people and the planet, is fueled by advancing the disciplines of engineering, science, and technology. Gibraltar is innovating to reshape critical markets in comfortable living, sustainable power, and productive growing throughout North America. For more please visit www.gibraltar1.com.
Forward-Looking Statements
Certain information set forth in this news release, other than historical statements, contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are based, in whole or in part, on current expectations, estimates, forecasts, and projections about the Company’s business, and management’s beliefs about future operations, results, and financial position. These statements are not guarantees of future performance and are subject to a number of risk factors, uncertainties, and assumptions. Actual events, performance, or results could differ materially from the anticipated events, performance, or results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from current expectations include, among other things, the availability and pricing of our principal raw materials and component parts, supply chain challenges causing project delays and field operations inefficiencies and disruptions, availability of labor at our manufacturing and distribution facilities or on our project sites, further impacts of COVID-19 on our customers, suppliers, employees, operations, business, liquidity and cash flows, the loss of any key customers, adverse effects of inflation, 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, disruptions to our IT systems, the impact of regulation (including the Department of Commerce’s solar panel anti-circumvention investigation), rebates, credits and incentives and variations in government spending and our ability to derive expected benefits from restructuring, productivity initiatives, liquidity enhancing actions, and other cost reduction actions. Before making any investment decisions regarding our company, we strongly advise you to read the section entitled “Risk Factors” in our most recent annual report on Form 10-K and Quarterly Report on Form 10-Q which can be accessed under the “SEC Filings” link of the “Investor Info” page of our website at www.Gibraltar1.com. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law or regulation.
Adjusted Financial Measures
To supplement Gibraltar’s consolidated financial statements presented on a GAAP basis, Gibraltar also presented certain adjusted financial measures in this news release, including adjusted revenues, adjusted operating income and margin, adjusted net income, adjusted earnings per share (EPS) and adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) each a non-GAAP financial measure. Adjusted revenue reflects the removal of revenue associated with our Processing business, which has been classified as held-for-sale. Adjusted net income, operating income and margin excludes special charges consisting of restructuring costs primarily associated with 80/20 simplification or
lean initiatives, senior leadership transition costs, acquisition related costs and the operating losses generated by our processing business that has been classified as held-for-sale. These special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations. The adjusted measures now exclude the results of the Processing business since it was classified as held for sale as of March 31, 2022. Our adjusted financial measures as of and for the three-month and six-month periods ending June 30, 2021 have been recast to reflect this additional adjustment as detailed in the appended reconciliation of adjusted financial measures. The results of the Processing business are considered non-recurring due to the Company’s commitment during the first quarter of 2022 to a plan to sell the Processing business. The aforementioned exclusions along with other adjustments to other income below operating profit are excluded from adjusted EPS. Adjusted EBITDA further excludes depreciation, amortization and stock compensation. In evaluating its business, the Company considers and uses these non-GAAP financial measures as supplemental measures of its operating performance. The Company believes that the presentation of results excluding these items provides meaningful supplemental data to investors that are indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods as well as comparison with other companies. Adjusted EBITDA is also a useful measure of the Company’s ability to service debt and is one of the measures used for determining the Company’s debt covenant compliance.
Adjustments to the most directly comparable financial measures presented on a GAAP basis are quantified in the reconciliation of adjusted financial measures excluding special charges provided in the supplemental financial schedules that accompany this news release. These adjusted measures should not be viewed as a substitute for the Company’s GAAP results and may be different than adjusted measures used by other companies and our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Reconciliations of non-GAAP measures related to full-year 2022 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.
Contact:
LHA Investor Relations
Jody Burfening/Carolyn Capaccio
(212) 838-3777
rock@lhai.com
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Net sales | $ | 366,949 | $ | 348,389 | $ | 684,814 | $ | 635,981 | |||||||||||||||
| Cost of sales | 276,678 | 267,458 | 529,699 | 495,032 | |||||||||||||||||||
| Gross profit | 90,271 | 80,931 | 155,115 | 140,949 | |||||||||||||||||||
| Selling, general, and administrative expense | 50,132 | 49,522 | 93,781 | 96,725 | |||||||||||||||||||
| Income from operations | 40,139 | 31,409 | 61,334 | 44,224 | |||||||||||||||||||
| Interest expense | 656 | 245 | 1,141 | 689 | |||||||||||||||||||
| Other expense (income) | 281 | (4,666) | 434 | (4,351) | |||||||||||||||||||
| Income before taxes | 39,202 | 35,830 | 59,759 | 47,886 | |||||||||||||||||||
| Provision for income taxes | 9,895 | 9,457 | 14,996 | 11,017 | |||||||||||||||||||
| Income from continuing operations | 29,307 | 26,373 | 44,763 | 36,869 | |||||||||||||||||||
| Discontinued operations: | |||||||||||||||||||||||
| (Loss) income before taxes | — | (502) | — | 2,068 | |||||||||||||||||||
| (Benefit from) provision for income taxes | — | (78) | — | 226 | |||||||||||||||||||
| (Loss) income from discontinued operations | — | (424) | — | 1,842 | |||||||||||||||||||
| Net income | $ | 29,307 | $ | 25,949 | $ | 44,763 | $ | 38,711 | |||||||||||||||
| Net earnings per share – Basic: | |||||||||||||||||||||||
| Income from continuing operations | $ | 0.90 | $ | 0.80 | $ | 1.37 | $ | 1.12 | |||||||||||||||
| (Loss) income from discontinued operations | — | (0.01) | — | 0.06 | |||||||||||||||||||
| Net income | $ | 0.90 | $ | 0.79 | $ | 1.37 | $ | 1.18 | |||||||||||||||
| Weighted average shares outstanding – Basic | 32,585 | 32,790 | 32,748 | 32,791 | |||||||||||||||||||
| Net earnings per share – Diluted: | |||||||||||||||||||||||
| Income from continuing operations | $ | 0.90 | $ | 0.80 | $ | 1.36 | $ | 1.11 | |||||||||||||||
| (Loss) income from discontinued operations | — | (0.01) | — | 0.06 | |||||||||||||||||||
| Net income | $ | 0.90 | $ | 0.79 | $ | 1.36 | $ | 1.17 | |||||||||||||||
| Weighted average shares outstanding – Diluted | 32,660 | 33,056 | 32,843 | 33,071 | |||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
| June 30, 2022 | December 31, 2021 | ||||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 17,149 | $ | 12,849 | |||||||
| Accounts receivable, net of allowance of $3,901 and $3,738, respectively | 275,596 | 236,444 | |||||||||
| Inventories, net | 197,499 | 176,207 | |||||||||
| Prepaid expenses and other current assets | 39,333 | 21,467 | |||||||||
| Total current assets | 529,577 | 446,967 | |||||||||
| Property, plant, and equipment, net | 100,998 | 96,885 | |||||||||
| Operating lease assets | 26,206 | 18,120 | |||||||||
| Goodwill | 509,357 | 510,942 | |||||||||
| Acquired intangibles | 128,725 | 141,504 | |||||||||
| Other assets | 550 | 483 | |||||||||
| $ | 1,295,413 | $ | 1,214,901 | ||||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 160,058 | $ | 172,286 | |||||||
| Accrued expenses and other current liabilities | 77,606 | 67,993 | |||||||||
| Billings in excess of cost | 65,864 | 46,711 | |||||||||
| Total current liabilities | 303,528 | 286,990 | |||||||||
| Long-term debt | 93,454 | 23,781 | |||||||||
| Deferred income taxes | 40,150 | 40,278 | |||||||||
| Non-current operating lease liabilities | 19,252 | 11,390 | |||||||||
| Other non-current liabilities | 21,751 | 27,204 | |||||||||
| Stockholders’ equity: | |||||||||||
| Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding | — | — | |||||||||
| Common stock, $0.01 par value; authorized 100,000 shares in 2022 and 2021; 33,989 shares and 33,799 shares issued and outstanding in 2022 and 2021 | 340 | 338 | |||||||||
| Additional paid-in capital | 318,664 | 314,541 | |||||||||
| Retained earnings | 590,335 | 545,572 | |||||||||
| Accumulated other comprehensive (loss) income | (3,213) | 187 | |||||||||
| Treasury stock, at cost, 2,374 and 1,107 shares in 2022 and 2021 | (88,848) | (35,380) | |||||||||
| Total stockholders’ equity | 817,278 | 825,258 | |||||||||
| $ | 1,295,413 | $ | 1,214,901 | ||||||||
GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Six Months Ended June 30, | |||||||||||
| 2022 | 2021 | ||||||||||
| Cash Flows from Operating Activities | |||||||||||
| Net income | $ | 44,763 | $ | 38,711 | |||||||
| Income from discontinued operations | — | 1,842 | |||||||||
| Income from continuing operations | 44,763 | 36,869 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 12,677 | 16,014 | |||||||||
| Stock compensation expense | 4,125 | 4,935 | |||||||||
| Exit activity costs, non-cash | 1,198 | 1,193 | |||||||||
| Provision for (benefit of) deferred income taxes | 29 | (36) | |||||||||
| Other, net | 2,666 | 349 | |||||||||
| Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||||||||||
| Accounts receivable | (40,473) | (29,150) | |||||||||
| Inventories | (33,616) | (42,686) | |||||||||
| Other current assets and other assets | (1,612) | (611) | |||||||||
| Accounts payable | (10,501) | 35,174 | |||||||||
| Accrued expenses and other non-current liabilities | 21,288 | (9,274) | |||||||||
| Net cash provided by operating activities of continuing operations | 544 | 12,777 | |||||||||
| Net cash used in operating activities of discontinued operations | — | (2,002) | |||||||||
| Net cash provided by operating activities | 544 | 10,775 | |||||||||
| Cash Flows from Investing Activities | |||||||||||
| Acquisitions, net of cash acquired | — | (2) | |||||||||
| Net proceeds from sale of property and equipment | 85 | — | |||||||||
| Purchases of property, plant, and equipment | (11,287) | (9,474) | |||||||||
| Net proceeds from sale of business | — | 39,991 | |||||||||
| Net cash (used in) provided by investing activities of continuing operations | (11,202) | 30,515 | |||||||||
| Net cash used in investing activities of discontinued operations | — | (176) | |||||||||
| Net cash (used in) provided by investing activities | (11,202) | 30,339 | |||||||||
| Cash Flows from Financing Activities | |||||||||||
| Proceeds from long-term debt | 120,500 | 31,200 | |||||||||
| Long-term debt payments | (51,000) | (83,636) | |||||||||
| Purchase of common stock at market prices | (53,468) | (4,780) | |||||||||
| Net proceeds from issuance of common stock | — | 924 | |||||||||
| Net cash provided by (used in) financing activities | 16,032 | (56,292) | |||||||||
| Effect of exchange rate changes on cash | (1,074) | 87 | |||||||||
| Net increase (decrease) in cash and cash equivalents | 4,300 | (15,091) | |||||||||
| Cash and cash equivalents at beginning of year | 12,849 | 32,054 | |||||||||
| Cash and cash equivalents at end of period | $ | 17,149 | $ | 16,963 | |||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Three Months Ended June 30,2022 | ||||||||||||||||||||||||||||||||
| As Reported In GAAP Statements | Restructuring & Senior Leadership Transition Costs | Acquisition Related Items | Portfolio Management | Adjusted Financial Measures | ||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||
| Renewables | $ | 101,549 | $ | — | $ | — | $ | — | $ | 101,549 | ||||||||||||||||||||||
| Residential | 200,245 | — | — | — | 200,245 | |||||||||||||||||||||||||||
| Agtech | 43,680 | — | — | (2,748) | 40,932 | |||||||||||||||||||||||||||
| Infrastructure | 21,475 | — | — | — | 21,475 | |||||||||||||||||||||||||||
| Consolidated sales | 366,949 | — | — | (2,748) | 364,201 | |||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||
| Renewables | 6,829 | 68 | 215 | — | 7,112 | |||||||||||||||||||||||||||
| Residential | 35,664 | 1,295 | — | — | 36,959 | |||||||||||||||||||||||||||
| Agtech | 1,542 | 97 | — | 1,109 | 2,748 | |||||||||||||||||||||||||||
| Infrastructure | 2,887 | — | — | — | 2,887 | |||||||||||||||||||||||||||
| Segments Income | 46,922 | 1,460 | 215 | 1,109 | 49,706 | |||||||||||||||||||||||||||
| Unallocated corporate expense | (6,783) | 174 | — | — | (6,609) | |||||||||||||||||||||||||||
| Consolidated income from operations | 40,139 | 1,634 | 215 | 1,109 | 43,097 | |||||||||||||||||||||||||||
| Interest expense | 656 | — | — | — | 656 | |||||||||||||||||||||||||||
| Other expense | 281 | — | — | 100 | 381 | |||||||||||||||||||||||||||
| Income before income taxes | 39,202 | 1,634 | 215 | 1,009 | 42,060 | |||||||||||||||||||||||||||
| Provision for income taxes | 9,895 | 398 | 52 | 245 | 10,590 | |||||||||||||||||||||||||||
| Income from continuing operations | $ | 29,307 | $ | 1,236 | $ | 163 | $ | 764 | $ | 31,470 | ||||||||||||||||||||||
| Income from continuing operations per share - diluted | $ | 0.90 | $ | 0.03 | $ | 0.01 | $ | 0.02 | $ | 0.96 | ||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||
| Renewables | 6.7 | % | 0.1 | % | 0.2 | % | — | % | 7.0 | % | ||||||||||||||||||||||
| Residential | 17.8 | % | 0.6 | % | — | % | — | % | 18.5 | % | ||||||||||||||||||||||
| Agtech | 3.5 | % | 0.2 | % | — | % | 2.5 | % | 6.7 | % | ||||||||||||||||||||||
| Infrastructure | 13.4 | % | — | % | — | % | — | % | 13.4 | % | ||||||||||||||||||||||
| Segments Margin | 12.8 | % | 0.4 | % | 0.1 | % | 0.3 | % | 13.6 | % | ||||||||||||||||||||||
| Consolidated | 10.9 | % | 0.4 | % | 0.1 | % | 0.3 | % | 11.8 | % | ||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||
| As Reported In GAAP Statements | Restructuring & Senior Leadership Transition Costs | Acquisition Related Items | Adjusted Financial Measures | Portfolio Management* | Adjusted Financial Measures * | |||||||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||||||||
| Renewables | $ | 107,751 | $ | — | $ | — | $ | 107,751 | $ | — | $ | 107,751 | ||||||||||||||||||||||||||
| Residential | 164,209 | — | — | 164,209 | — | 164,209 | ||||||||||||||||||||||||||||||||
| Agtech | 53,696 | — | — | 53,696 | (7,264) | 46,432 | ||||||||||||||||||||||||||||||||
| Infrastructure | 22,733 | — | — | 22,733 | — | 22,733 | ||||||||||||||||||||||||||||||||
| Consolidated sales | 348,389 | — | — | 348,389 | (7,264) | 341,125 | ||||||||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||||||||
| Renewables | 9,510 | 786 | 1,858 | 12,154 | — | 12,154 | ||||||||||||||||||||||||||||||||
| Residential | 27,155 | 29 | — | 27,184 | — | 27,184 | ||||||||||||||||||||||||||||||||
| Agtech | 977 | 1,287 | — | 2,264 | 466 | 2,730 | ||||||||||||||||||||||||||||||||
| Infrastructure | 4,186 | — | — | 4,186 | — | 4,186 | ||||||||||||||||||||||||||||||||
| Segments Income | 41,828 | 2,102 | 1,858 | 45,788 | 466 | 46,254 | ||||||||||||||||||||||||||||||||
| Unallocated corporate expense | (10,419) | 77 | 32 | (10,310) | — | (10,310) | ||||||||||||||||||||||||||||||||
| Consolidated income from operations | 31,409 | 2,179 | 1,890 | 35,478 | 466 | 35,944 | ||||||||||||||||||||||||||||||||
| Interest expense | 245 | — | — | 245 | — | 245 | ||||||||||||||||||||||||||||||||
| Other (income) expense | (4,666) | — | 4,747 | 81 | — | 81 | ||||||||||||||||||||||||||||||||
| Income before income taxes | 35,830 | 2,179 | (2,857) | 35,152 | 466 | 35,618 | ||||||||||||||||||||||||||||||||
| Provision for income taxes | 9,457 | 512 | (1,149) | 8,820 | 124 | 8,944 | ||||||||||||||||||||||||||||||||
| Income from continuing operations | $ | 26,373 | $ | 1,667 | $ | (1,708) | $ | 26,332 | $ | 342 | $ | 26,674 | ||||||||||||||||||||||||||
| Income from continuing operations per share - diluted | $ | 0.80 | $ | 0.05 | $ | (0.05) | $ | 0.80 | $ | 0.01 | $ | 0.81 | ||||||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||||||||
| Renewables | 8.8 | % | 0.7 | % | 1.7 | % | 11.3 | % | — | % | 11.3 | % | ||||||||||||||||||||||||||
| Residential | 16.5 | % | — | % | — | % | 16.6 | % | — | % | 16.6 | % | ||||||||||||||||||||||||||
| Agtech | 1.8 | % | 2.4 | % | — | % | 4.2 | % | 1.7 | % | 5.9 | % | ||||||||||||||||||||||||||
| Infrastructure | 18.4 | % | — | % | — | % | 18.4 | % | — | % | 18.4 | % | ||||||||||||||||||||||||||
| Segments Margin | 12.0 | % | 0.6 | % | 0.5 | % | 13.1 | % | 0.5 | % | 13.6 | % | ||||||||||||||||||||||||||
| Consolidated | 9.0 | % | 0.6 | % | 0.5 | % | 10.2 | % | 0.3 | % | 10.5 | % | ||||||||||||||||||||||||||
*Recast to exclude processing equipment business which was reclassified as held for sale as of March 31, 2022. | ||||||||||||||||||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
| As Reported In GAAP Statements | Restructuring & Senior Leadership Transition Charges | Acquisition Related Items | Portfolio Management | Adjusted Financial Measures | ||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||
| Renewables | $ | 180,332 | $ | — | $ | — | $ | — | $ | 180,332 | ||||||||||||||||||||||
| Residential | 379,730 | — | — | — | 379,730 | |||||||||||||||||||||||||||
| Agtech | 86,108 | — | — | (4,571) | 81,537 | |||||||||||||||||||||||||||
| Infrastructure | 38,644 | — | — | — | 38,644 | |||||||||||||||||||||||||||
| Consolidated sales | 684,814 | — | — | (4,571) | 680,243 | |||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||
| Renewables | (155) | 2,385 | 605 | — | 2,835 | |||||||||||||||||||||||||||
| Residential | 69,099 | 1,582 | — | — | 70,681 | |||||||||||||||||||||||||||
| Agtech | 1,573 | 88 | — | 3,634 | 5,295 | |||||||||||||||||||||||||||
| Infrastructure | 4,068 | (63) | — | — | 4,005 | |||||||||||||||||||||||||||
| Segments Income | 74,585 | 3,992 | 605 | 3,634 | 82,816 | |||||||||||||||||||||||||||
| Unallocated corporate expense | (13,251) | 449 | 7 | — | (12,795) | |||||||||||||||||||||||||||
| Consolidated income from operations | 61,334 | 4,441 | 612 | 3,634 | 70,021 | |||||||||||||||||||||||||||
| Interest expense | 1,141 | — | — | — | 1,141 | |||||||||||||||||||||||||||
| Other expense | 434 | — | — | 100 | 534 | |||||||||||||||||||||||||||
| Income before income taxes | 59,759 | 4,441 | 612 | 3,534 | 68,346 | |||||||||||||||||||||||||||
| Provision for income taxes | 14,996 | 1,103 | 152 | 879 | 17,130 | |||||||||||||||||||||||||||
| Income from continuing operations | $ | 44,763 | $ | 3,338 | $ | 460 | $ | 2,655 | $ | 51,216 | ||||||||||||||||||||||
| Income from continuing operations per share - diluted | $ | 1.36 | $ | 0.10 | $ | 0.02 | $ | 0.08 | $ | 1.56 | ||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||
| Renewables | (0.1) | % | 1.3 | % | 0.3 | % | — | % | 1.6 | % | ||||||||||||||||||||||
| Residential | 18.2 | % | 0.4 | % | — | % | — | % | 18.6 | % | ||||||||||||||||||||||
| Agtech | 1.8 | % | 0.1 | % | — | % | 4.2 | % | 6.5 | % | ||||||||||||||||||||||
| Infrastructure | 10.5 | % | (0.2) | % | — | % | — | % | 10.4 | % | ||||||||||||||||||||||
| Segments Margin | 10.9 | % | 0.6 | % | 0.1 | % | 0.5 | % | 12.2 | % | ||||||||||||||||||||||
| Consolidated | 9.0 | % | 0.7 | % | 0.1 | % | 0.5 | % | 10.3 | % | ||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)
| Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||
| As Reported In GAAP Statements | Restructuring & Senior Leadership Transition Costs | Acquisition Related Items | Adjusted Financial Measures | Portfolio Management* | Adjusted Financial Measures * | |||||||||||||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||||||||||||||
| Renewables | $ | 193,263 | $ | — | $ | — | $ | 193,263 | $ | — | $ | 193,263 | ||||||||||||||||||||||||||
| Residential | 304,426 | — | — | 304,426 | — | 304,426 | ||||||||||||||||||||||||||||||||
| Agtech | 100,435 | — | — | 100,435 | (12,237) | 88,198 | ||||||||||||||||||||||||||||||||
| Infrastructure | 37,857 | — | — | 37,857 | — | 37,857 | ||||||||||||||||||||||||||||||||
| Consolidated sales | 635,981 | — | — | 635,981 | (12,237) | 623,744 | ||||||||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||||||||||
| Renewables | 8,989 | 5,757 | 3,758 | 18,504 | — | 18,504 | ||||||||||||||||||||||||||||||||
| Residential | 50,089 | 94 | — | 50,183 | — | 50,183 | ||||||||||||||||||||||||||||||||
| Agtech | 1,906 | 1,491 | — | 3,397 | 1,302 | 4,699 | ||||||||||||||||||||||||||||||||
| Infrastructure | 6,223 | — | — | 6,223 | — | 6,223 | ||||||||||||||||||||||||||||||||
| Segments Income | 67,207 | 7,342 | 3,758 | 78,307 | 1,302 | 79,609 | ||||||||||||||||||||||||||||||||
| Unallocated corporate expense | (22,983) | 1,366 | 915 | (20,702) | — | (20,702) | ||||||||||||||||||||||||||||||||
| Consolidated income from operations | 44,224 | 8,708 | 4,673 | 57,605 | 1,302 | 58,907 | ||||||||||||||||||||||||||||||||
| Interest expense | 689 | — | — | 689 | — | 689 | ||||||||||||||||||||||||||||||||
| Other (income) expense | (4,351) | — | 4,747 | 396 | — | 396 | ||||||||||||||||||||||||||||||||
| Income before income taxes | 47,886 | 8,708 | (74) | 56,520 | 1,302 | 57,822 | ||||||||||||||||||||||||||||||||
| Provision for income taxes | 11,017 | 2,191 | (442) | 12,766 | 345 | 13,111 | ||||||||||||||||||||||||||||||||
| Income from continuing operations | $ | 36,869 | $ | 6,517 | $ | 368 | $ | 43,754 | $ | 957 | $ | 44,711 | ||||||||||||||||||||||||||
| Income from continuing operations per share - diluted | $ | 1.11 | $ | 0.20 | $ | 0.01 | $ | 1.32 | $ | 0.03 | $ | 1.35 | ||||||||||||||||||||||||||
| Operating margin | ||||||||||||||||||||||||||||||||||||||
| Renewables | 4.7 | % | 3.0 | % | 1.9 | % | 9.6 | % | — | % | 9.6 | % | ||||||||||||||||||||||||||
| Residential | 16.5 | % | — | % | — | % | 16.5 | % | — | % | 16.5 | % | ||||||||||||||||||||||||||
| Agtech | 1.9 | % | 1.5 | % | — | % | 3.4 | % | 1.9 | % | 5.3 | % | ||||||||||||||||||||||||||
| Infrastructure | 16.4 | % | — | % | — | % | 16.4 | % | — | % | 16.4 | % | ||||||||||||||||||||||||||
| Segments Margin | 10.6 | % | 1.2 | % | 0.6 | % | 12.3 | % | 0.5 | % | 12.8 | % | ||||||||||||||||||||||||||
| Consolidated | 7.0 | % | 1.4 | % | 0.7 | % | 9.1 | % | 0.3 | % | 9.4 | % | ||||||||||||||||||||||||||
*Recast to exclude processing equipment business which was reclassified as held for sale as of March 31, 2022. | ||||||||||||||||||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Income From Continuing Operations to Adjusted EBITDA
(in thousands)
(unaudited)
| Three Months Ended June 30,2022 | ||||||||||||||||||||||||||||||||
| Consolidated | Renewables | Residential | Agtech | Infrastructure | ||||||||||||||||||||||||||||
| Net Sales | $ | 366,949 | $ | 101,549 | $ | 200,245 | $ | 43,680 | $ | 21,475 | ||||||||||||||||||||||
| Less: Processing Revenues* | (2,748) | — | — | (2,748) | — | |||||||||||||||||||||||||||
| Adjusted Net Sales | $ | 364,201 | $ | 101,549 | $ | 200,245 | $ | 40,932 | $ | 21,475 | ||||||||||||||||||||||
| Income From Continuing Operations | 29,307 | |||||||||||||||||||||||||||||||
| Provision for Income Taxes | 9,895 | |||||||||||||||||||||||||||||||
| Interest Expense | 656 | |||||||||||||||||||||||||||||||
| Other Expense | 281 | |||||||||||||||||||||||||||||||
| Operating Profit | 40,139 | 6,829 | 35,664 | 1,542 | 2,887 | |||||||||||||||||||||||||||
| Adjusted Measures** | 2,958 | 283 | 1,295 | 1,206 | — | |||||||||||||||||||||||||||
| Adjusted Operating Profit | 43,097 | 7,112 | 36,959 | 2,748 | 2,887 | |||||||||||||||||||||||||||
| Adjusted Operating Margin | 11.8 | % | 7.0 | % | 18.5 | % | 6.7 | % | 13.4 | % | ||||||||||||||||||||||
| Adjusted Other Expense & Loss on Sale of PPE | 371 | — | — | — | — | |||||||||||||||||||||||||||
| Depreciation & Amortization | 6,341 | 2,113 | 2,025 | 1,013 | 792 | |||||||||||||||||||||||||||
| Less: Held for Sale Depreciation & Amortization | — | — | — | — | — | |||||||||||||||||||||||||||
| Adjusted Depreciation & Amortization | 6,341 | 2,113 | 2,025 | 1,013 | 792 | |||||||||||||||||||||||||||
| Stock Compensation Expense | 2,773 | 195 | 241 | 107 | 41 | |||||||||||||||||||||||||||
| Less: Senior Leadership Transition Related Stock Compensation Recovery | — | — | — | — | — | |||||||||||||||||||||||||||
| Adjusted Stock Compensation Expense | 2,773 | 195 | 241 | 107 | 41 | |||||||||||||||||||||||||||
| Adjusted EBITDA | 51,840 | 9,420 | 39,225 | 3,868 | 3,720 | |||||||||||||||||||||||||||
| Adjusted EBITDA Margin | 14.2 | % | 9.3 | % | 19.6 | % | 9.4 | % | 17.3 | % | ||||||||||||||||||||||
| *To remove revenues of processing equipment business classified as held for sale | ||||||||||||||||||||||||||||||||
| **Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures | ||||||||||||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Income From Continuing Operations to Adjusted EBITDA
(in thousands)
(unaudited)
| Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
| Consolidated | Renewables | Residential | Agtech | Infrastructure | ||||||||||||||||||||||||||||
| Net Sales | $ | 348,389 | $ | 107,751 | $ | 164,209 | $ | 53,696 | $ | 22,733 | ||||||||||||||||||||||
| Less: Processing Revenues* | (7,264) | — | — | (7,264) | — | |||||||||||||||||||||||||||
| Adjusted Net Sales | $ | 341,125 | $ | 107,751 | $ | 164,209 | $ | 46,432 | $ | 22,733 | ||||||||||||||||||||||
| Income From Continuing Operations | 26,373 | |||||||||||||||||||||||||||||||
| Provision for Income Taxes | 9,457 | |||||||||||||||||||||||||||||||
| Interest Expense | 245 | |||||||||||||||||||||||||||||||
| Other Income | (4,666) | |||||||||||||||||||||||||||||||
| Operating Profit | 31,409 | 9,510 | 27,155 | 977 | 4,186 | |||||||||||||||||||||||||||
| Adjusted Measures** | 4,535 | 2,644 | 29 | 1,753 | — | |||||||||||||||||||||||||||
| Adjusted Operating Profit | 35,944 | 12,154 | 27,184 | 2,730 | 4,186 | |||||||||||||||||||||||||||
| Adjusted Operating Margin | 10.5 | % | 11.3 | % | 16.6 | % | 5.9 | % | 18.4 | % | ||||||||||||||||||||||
| Adjusted Other Expense | 81 | — | — | — | — | |||||||||||||||||||||||||||
| Depreciation & Amortization | 8,040 | 3,717 | 2,203 | 1,299 | 767 | |||||||||||||||||||||||||||
| Less: Held for Sale Depreciation & Amortization | (331) | — | — | (331) | — | |||||||||||||||||||||||||||
| Less: Acquisition-Related Amortization | (1,563) | (1,563) | — | — | — | |||||||||||||||||||||||||||
| Adjusted Depreciation & Amortization | 6,146 | 2,154 | 2,203 | 968 | 767 | |||||||||||||||||||||||||||
| Stock Compensation Expense | 2,567 | 232 | 282 | 223 | 16 | |||||||||||||||||||||||||||
| Less: Senior Leadership Transition Related Stock Compensation Expense | — | — | — | — | — | |||||||||||||||||||||||||||
| Adjusted Stock Compensation Expense | 2,567 | 232 | 282 | 223 | 16 | |||||||||||||||||||||||||||
| Adjusted EBITDA | 44,576 | 14,540 | 29,669 | 3,921 | 4,969 | |||||||||||||||||||||||||||
| Adjusted EBITDA Margin | 13.1 | % | 13.5 | % | 18.1 | % | 8.4 | % | 21.9 | % | ||||||||||||||||||||||
| *To remove revenues of processing equipment business classified as held for sale | ||||||||||||||||||||||||||||||||
| **Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures | ||||||||||||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Income From Continuing Operations to Adjusted EBITDA
(in thousands)
(unaudited)
| Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
| Consolidated | Renewables | Residential | Agtech | Infrastructure | ||||||||||||||||||||||||||||
| Net Sales | $ | 684,814 | $ | 180,332 | $ | 379,730 | $ | 86,108 | $ | 38,644 | ||||||||||||||||||||||
| Less: Processing Revenues* | (4,571) | — | — | (4,571) | — | |||||||||||||||||||||||||||
| Adjusted Net Sales | $ | 680,243 | $ | 180,332 | $ | 379,730 | $ | 81,537 | $ | 38,644 | ||||||||||||||||||||||
| Income From Continuing Operations | 44,763 | |||||||||||||||||||||||||||||||
| Provision for Income Taxes | 14,996 | |||||||||||||||||||||||||||||||
| Interest Expense | 1,141 | |||||||||||||||||||||||||||||||
| Other Expense | 434 | |||||||||||||||||||||||||||||||
| Operating Profit | 61,334 | (155) | 69,099 | 1,573 | 4,068 | |||||||||||||||||||||||||||
| Adjusted Measures** | 8,687 | 2,990 | 1,582 | 3,722 | (63) | |||||||||||||||||||||||||||
| Adjusted Operating Profit | 70,021 | 2,835 | 70,681 | 5,295 | 4,005 | |||||||||||||||||||||||||||
| Adjusted Operating Margin | 10.3 | % | 1.6 | % | 18.6 | % | 6.5 | % | 10.4 | % | ||||||||||||||||||||||
| Adjusted Other Expense & Loss on Sale of PPE | 524 | — | — | — | — | |||||||||||||||||||||||||||
| Depreciation & Amortization | 12,677 | 4,256 | 4,078 | 2,332 | 1,575 | |||||||||||||||||||||||||||
| Less: Held for Sale Depreciation & Amortization | (332) | — | — | (332) | — | |||||||||||||||||||||||||||
| Adjusted Depreciation & Amortization | 12,345 | 4,256 | 4,078 | 2,000 | 1,575 | |||||||||||||||||||||||||||
| Stock Compensation Expense | 4,125 | 448 | 432 | 177 | 74 | |||||||||||||||||||||||||||
| Less: Senior Leadership Transition Related Stock Compensation Recovery | 155 | — | — | — | — | |||||||||||||||||||||||||||
| Adjusted Stock Compensation Expense | 4,280 | 448 | 432 | 177 | 74 | |||||||||||||||||||||||||||
| Adjusted EBITDA | 86,122 | 7,539 | 75,191 | 7,472 | 5,654 | |||||||||||||||||||||||||||
| Adjusted EBITDA Margin | 12.7 | % | 4.2 | % | 19.8 | % | 9.2 | % | 14.6 | % | ||||||||||||||||||||||
| *To remove revenues of processing equipment business classified as held for sale | ||||||||||||||||||||||||||||||||
| **Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures | ||||||||||||||||||||||||||||||||
GIBRALTAR INDUSTRIES, INC.
Reconciliation of Income From Continuing Operations to Adjusted EBITDA
(in thousands)
(unaudited)
| Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
| Consolidated | Renewables | Residential | Agtech | Infrastructure | ||||||||||||||||||||||||||||
| Net Sales | $ | 635,981 | $ | 193,263 | $ | 304,426 | $ | 100,435 | $ | 37,857 | ||||||||||||||||||||||
| Less: Processing Revenues* | (12,237) | — | — | (12,237) | — | |||||||||||||||||||||||||||
| Adjusted Net Sales | $ | 623,744 | $ | 193,263 | $ | 304,426 | $ | 88,198 | $ | 37,857 | ||||||||||||||||||||||
| Income From Continuing Operations | 36,869 | |||||||||||||||||||||||||||||||
| Provision for Income Taxes | 11,017 | |||||||||||||||||||||||||||||||
| Interest Expense | 689 | |||||||||||||||||||||||||||||||
| Other Income | (4,351) | |||||||||||||||||||||||||||||||
| Operating Profit | 44,224 | 8,989 | 50,089 | 1,906 | 6,223 | |||||||||||||||||||||||||||
| Adjusted Measures** | 14,683 | 9,515 | 94 | 2,793 | — | |||||||||||||||||||||||||||
| Adjusted Operating Profit | 58,907 | 18,504 | 50,183 | 4,699 | 6,223 | |||||||||||||||||||||||||||
| Adjusted Operating Margin | 9.4 | % | 9.6 | % | 16.5 | % | 5.3 | % | 16.4 | % | ||||||||||||||||||||||
| Adjusted Other Expense | 396 | — | — | — | — | |||||||||||||||||||||||||||
| Depreciation & Amortization | 16,014 | 7,308 | 4,418 | 2,647 | 1,535 | |||||||||||||||||||||||||||
| Less: Held for Sale Depreciation & Amortization | (661) | — | — | (661) | — | |||||||||||||||||||||||||||
| Less: Acquisition-Related Amortization | (3,138) | (3,138) | — | — | — | |||||||||||||||||||||||||||
| Adjusted Depreciation & Amortization | 12,215 | 4,170 | 4,418 | 1,986 | 1,535 | |||||||||||||||||||||||||||
| Stock Compensation Expense | 4,935 | 386 | 502 | 374 | 44 | |||||||||||||||||||||||||||
| Less: Senior Leadership Transition Related Stock Compensation Expense | (504) | — | — | — | — | |||||||||||||||||||||||||||
| Adjusted Stock Compensation Expense | 4,431 | 386 | 502 | 374 | 44 | |||||||||||||||||||||||||||
| Adjusted EBITDA | 75,157 | 23,060 | 55,103 | 7,059 | 7,802 | |||||||||||||||||||||||||||
| Adjusted EBITDA Margin | 12.0 | % | 11.9 | % | 18.1 | % | 8.0 | % | 20.6 | % | ||||||||||||||||||||||
| *To remove revenues of processing equipment business classified as held for sale | ||||||||||||||||||||||||||||||||
| **Adjusted Measures details are presented on the corresponding Reconciliation of Adjusted Financial Measures | ||||||||||||||||||||||||||||||||