EX-99 3 a4390321_ex991.txt GIBRALTAR EXHIBIT 99.1 Exhibit 99.1 Gibraltar's First-Quarter Earnings up 20% on 11% Sales Growth; Second-Quarter Acquisitions of Construction Metals and Air Vent Will Add $100 Million in Annual Sales BUFFALO, N.Y.--(BUSINESS WIRE)--May 5, 2003--Gibraltar (Nasdaq: ROCK) today reported strong gains in both sales and earnings for the quarter ended March 31, 2003. As it had previously indicated on April 14, Gibraltar reported first-quarter 2003 sales of approximately $161 million, an increase of approximately 11 percent compared to $145 million in the first quarter of 2002. Its first-quarter net income was $4.9 million, an increase of approximately 20 percent compared to $4.1 million in the first quarter of 2002. Gibraltar also reported first-quarter earnings per share (EPS) of $.30, the same EPS it reported in the first quarter of 2002. There were approximately 20 percent more weighted average shares outstanding in the first quarter of 2003 as a result of Gibraltar's successful completion of its secondary stock offering of 3,150,000 shares in March of 2002. "We had strong first-quarter sales and earnings growth, and we are still well positioned to generate improved sales and earnings during 2003, in spite of a sharp slowdown in the economy during the first quarter, caused by concerns over the war in Iraq and delays to the start of the construction and remodeling season from bad weather," said Brian J. Lipke, Gibraltar's Chairman and Chief Executive Officer. "We continued to build on that momentum with the immediately accretive second-quarter acquisitions of Construction Metals and Air Vent, which added approximately $100 million in new revenues, and provides us with numerous opportunities to continue our strategic growth, as we strengthen our leadership position in key product categories and geographic markets, expand and integrate our product lines, form new customer relationships and strengthen existing ones, and create additional opportunities to generate operational synergies," said Mr. Lipke. On April 1, Gibraltar acquired Construction Metals, Inc., an Ontario, California-based, privately held manufacturer of a wide array of building and construction products, which are distributed from ten facilities to retail and wholesale customers throughout the western United States. On May 1, the Company announced that it had acquired Air Vent Inc., a Dallas, Texas-based subsidiary of CertainTeed Corporation, making Gibraltar North America's largest manufacturer of ventilation products and accessories. "The acquisitions of Construction Metals and Air Vent continue to move a larger share of Gibraltar's business into higher value-added products, processes, and services, like building products and heat treating. We now have annualized building products sales of approximately $400 million, and annual heat-treating sales approaching $100 million," said Mr. Lipke. "As we move into the seasonally strongest periods for our building products business (the second and third quarters), and we begin to benefit from the acquisitions of Construction Metals and Air Vent, we expect our sales and earnings to strengthen in the second quarter. Barring a significant change in business conditions, we expect our second-quarter earnings per share will be in the range of $.50 to $.55, compared to $.49 in the second quarter of 2002, on approximately the same number of weighted average shares outstanding," said Mr. Lipke. "Looking ahead to the rest of 2003, we will continue to benefit from our strategic diversification. By broadening our customer base and business mix, expanding the steel-consuming markets we are serving, and extending our reach into many of North America's fastest-growing markets, Gibraltar has consistently demonstrated that it can achieve profitable growth even in a weak economy," said Mr. Lipke. Gibraltar is one of North America's leading metal processors, a manufacturer of more than 5,000 steel and other metal products, and North America's second-largest commercial heat treater. The Company serves approximately 10,000 customers in a variety of industries in all 50 states, Canada, and Mexico. It has approximately 3,800 employees and operates 68 facilities in 26 states, Canada, and Mexico. Information contained in this release, other than historical information, should be considered forward-looking, and may be subject to a number of risk factors, including: the impact of changing steel prices on the Company's results of operations; changing demand for the Company's products; risks associated with the integration of acquisitions; and changes in interest or tax rates. Gibraltar will review its first-quarter results and discuss 2003 during its quarterly conference call on May 6, at 2 p.m. Eastern Time. Details on the conference call can be found on the Gibraltar Web site, at www.gibraltar1.com. Gibraltar's news releases, along with comprehensive information about the Company, are available on the Internet, at www.gibraltar1.com. GIBRALTAR STEEL CORPORATION Financial Highlights (in thousands, except per share data) Three Months Ended March 31, 2003 March 31, 2002 -------------- -------------- Net Sales $ 161,532 $ 144,713 Net Income $ 4,904 $ 4,078 Net Income Per Share-Basic $ .31 .31 Weighted Average Shares Outstanding- Basic 15,988 $ 13,272 Net Income Per Share-Diluted $ .30 $ .30 Weighted Average Shares Outstanding- Diluted 16,151 13,444 GIBRALTAR STEEL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET (in thousands) March 31, December 31, 2003 2002 ------------ ------------ (unaudited) (audited) Assets ------ Current assets: Cash and cash equivalents $ 4,617 $ 3,662 Accounts receivable 97,620 87,772 Inventories 113,465 106,155 Other current assets 7,943 5,405 ------------ ------------ Total current assets 223,645 202,994 Property, plant and equipment, net 231,666 231,526 Goodwill 133,452 133,452 Other assets 8,469 8,596 ------------ ------------ $ 597,232 $ 576,568 ============ ============ Liabilities and Shareholders' Equity ------------------------------------ Current liabilities: Accounts payable $ 45,170 $ 42,074 Accrued expenses 16,946 22,050 Current maturities of long-term debt 625 624 ------------ ------------ Total current liabilities 62,741 64,748 Long-term debt 182,572 166,308 Deferred income taxes 45,691 44,656 Other non-current liabilities 7,645 7,739 Shareholders' equity: Preferred shares - - Common shares 160 160 Additional paid-in capital 125,084 124,825 Retained earnings 176,411 172,147 Accumulated comprehensive loss (2,414) (2,560) Unearned compensation (1,008) (1,086) Currency translation adjustment 350 (369) ------------ ------------ Total shareholders' equity 298,583 293,117 ------------ ------------ $ 597,232 $ 576,568 ============ ============ GIBRALTAR STEEL CORPORATION CONDENSED CONSOLIDATED STATEMENT OF INCOME (in thousands, except per share data) Three Months Ended March 31, 2003 2002 ------------ ------------ (unaudited) (unaudited) Net sales $ 161,532 $ 144,713 Cost of sales 132,386 117,499 ------------ ------------ Gross profit 29,146 27,214 Selling, general and administrative expense 18,433 17,597 ------------ ------------ Income from operations 10,713 9,617 Interest expense 2,540 2,763 ------------ ------------ Income before taxes 8,173 6,854 Provision for income taxes 3,269 2,776 ------------ ------------ Net income $ 4,904 $ 4,078 ============ ============ Net income per share - Basic $ .31 $ .31 ============ ============ Weighted average shares outstanding - Basic 15,988 13,272 ============ ============ Net income per share - Diluted $ .30 $ .30 ============ ============ Weighted average shares outstanding - Diluted 16,151 13,444 ============ ============ GIBRALTAR STEEL CORPORATION CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (in thousands) Three Months Ended March 31, 2003 2002 ------------ ------------ (unaudited) (unaudited) Cash flows from operating activities ------------------------------------ Net income $ 4,904 $ 4,078 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 5,295 5,009 Provision for deferred income taxes 773 880 Undistributed equity investment income (50) 191 Other noncash adjustments 167 28 Increase (decrease) in cash resulting from changes in: Accounts receivable (9,722) (14,262) Inventories (7,310) (1,309) Other current assets (2,503) (1,810) Accounts payable and accrued expenses (1,904) 5,822 Other assets 39 (159) ------------ ------------ Net cash used in operating activities (10,311) (1,532) ------------ ------------ Cash flows from investing activities ------------------------------------ Purchases of property, plant and equipment (4,843) (2,387) Net proceeds from sale of property and equipment 225 137 ------------ ------------ Net cash used in investing activities (4,618) (2,250) ------------ ------------ Cash flows from financing activities ------------------------------------ Long-term debt reduction (2,047) (58,511) Proceeds from long-term debt 18,312 6,586 Payment of dividends (640) (442) Net proceeds from issuance of common stock 259 50,853 ------------ ------------ Net cash provided by (used in) financing activities 15,884 (1,514) ------------ ------------ Net increase (decrease) in cash and cash equivalents 955 (5,296) Cash and cash equivalents at beginning of year 3,662 8,150 ------------ ------------ Cash and cash equivalents at end of period $ 4,617 $ 2,854 ============ ============ GIBRALTAR STEEL CORPORATION Segment Information (in thousands) Three Months Ended March 31, ---------------------------- Increase (Decrease) 2003 2002 $ % ----------- ----------- ------------------------ (unaudited) (unaudited) Net Sales Processed steel $ 71,203 $ 63,012 $ 8,191 13.0% Building products 68,295 63,220 5,075 8.0% Heat treating 22,034 18,481 3,553 19.2% Total Sales 161,532 144,713 16,819 11.6% Income from Operations Processed steel $ 8,353 $ 7,468 $ 885 11.9% Building products 2,530 2,495 35 1.4% Heat treating 2,963 2,617 346 13.2% Corporate (3,133) (2,963) (170) (5.7)% Total Operating Income 10,713 9,617 1,096 11.4% Operating Margin Processed steel 11.7% 11.9% Building products 3.7% 3.9% Heat treating 13.4% 14.2% CONTACT: Gibraltar Kenneth P. Houseknecht, 716/826-6500 khouseknecht@gibraltar1.com