EX-99.1 2 exhibit.htm PRESS RELEASE TEXT New Page 1

  

For Immediate Release
                                                                                    April 25, 2005

 

GIBRALTAR REPORTS FIRST-QUARTER SALES AND EARNINGS
 First-Quarter Sales of $274 Million Up 34 %, Earnings Per Share Grew by 13% to $.36

            BUFFALO, NEW YORK (April 25, 2005) - Gibraltar Industries, Inc. (Nasdaq: ROCK) today reported record sales and earnings for the quarter ended March 31, 2005.

            Sales from continuing operations in the first quarter of 2005 were $274 million, an increase of approximately 34 percent from $205 million in the first quarter of 2004.  Net income from continuing operations of $10.6 million in the quarter ended March 31, 2005 increased by approximately 15 percent from $9.3 million in the first quarter of 2004.

            Earnings per share from continuing operations in the first quarter of 2005 were $.36, at the upper end of the range Gibraltar provided on February 14, and increased by approximately 13 percent compared to $.32 per share in the first quarter of 2004.

            As a result of the sale of the Company's Milcor subsidiary on January 27, 2005, the results of operations for Milcor have been reclassified as discontinued operations in the Company's income statements for all periods.

            "We were able to generate strong first-quarter sales and earnings with sequential improvement in our margins from the fourth quarter to the first quarter and expect to have a continuation of that trend in the second quarter as we move into the seasonally strongest time for our business," said Brian J. Lipke, Gibraltar's Chairman and Chief Executive Officer.

            "While Gibraltar will continue to pursue opportunities to strategically grow and strengthen its business - of both our existing operations and via acquisitions, joint ventures, and strategic alliances - we are simultaneously intensifying our focus on improving our operational performance, including consolidating our supply chain function, improving our distribution and logistics, and moving to shared services with a number of functions," said Mr. Lipke. 

            Looking ahead, Mr. Lipke said that, barring a significant change in business conditions, Gibraltar expects its second-quarter earnings per share from continuing operations will be in the range of $.54 to $.57, compared to $.52 in the second quarter of 2004.

Gibraltar Industries is a leading manufacturer, processor, and distributor of metals and other engineered materials for the building products, vehicular, and other industrial markets. The Company serves a large number of customers in a variety of industries in all 50 states, Canada, Mexico, Europe, Asia, and Central and South America. It has approximately 3,600 employees and operates 73 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: general economic conditions, the impact of the availability and the effects of changing raw material prices on the Company's results of operations; the ability to pass through cost increases to customers; changing demand for the Company's products and services; risks associated with the integration of acquisitions; and changes in interest or tax rates.

 Gibraltar will review its first-quarter results and discuss its outlook for the second quarter during its quarterly conference call, which will be held at 1 p.m. Eastern Time on April 26. Details of the call can be found on Gibraltar's web site, at www.gibraltar1.com.

 CONTACT: Kenneth P. Houseknecht, Vice President of Communications and Investor Relations, at 716/826-6500, ext. 3229, or khouseknecht@gibraltar1.com.

 Gibraltar's news releases, along with comprehensive information about the Company, are available on the Internet, at www.gibraltar1.com.

 

 

GIBRALTAR INDUSTRIES, INC.

Financial Highlights
(in thousands, except per share data)

                              

 

          Three Months Ended
    March 31, 2005     March 31, 2004 
Net sales $

273,581

   $

204,607
Net income from continuing operations $

10,622

   $

9,259
Net income per share from continuing operations - Basic $

.36

   $

.32
Weighted average shares outstanding - Basic  

29,571

    

29,134
Net income per share from continuing operations - Diluted $

.36

   $

.32
Weighted average shares outstanding - Diluted  

29,775

    

29,358

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GIBRALTAR INDUSTRIES, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 

 

 

     March 31,                         December 31,

 

 

2005

 

 

       2004

 

 

(unaudited)

 

 

(audited)

Assets

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

                Cash and cash equivalents

$

6,843

 

$

10,892

                Accounts receivable

 

171,969

 

 

146,021

                Inventories

 

230,192

 

 

207,215

                Other current assets

 

15,265

 

 

15,479

                        Total current assets

 

424,269

 

 

379,607

 

 

 

 

 

 

Property, plant and equipment, net

 

256,776

 

 

269,019

Goodwill

 

268,598

 

 

285,927

Investments in partnerships

 

8,312

 

 

8,211

Other assets

 

13,554

 

 

14,937

 

$

971,509

 

$

957,701

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

                Accounts payable

$

70,936

 

$

70,775

                Accrued expenses

 

48,502

 

 

51,885

                Current maturities of long-term debt

 

8,859

 

 

8,858

                Current maturities of related party debt

 

5,833

 

 

5,834

                        Total current liabilities

 

134,130

 

 

137,352

 

 

 

 

 

 

Long-term debt

 

297,197

 

 

283,681

Long-term related party debt

 

5,833

 

 

11,666

Deferred income taxes

 

65,852

 

 

66,485

Other non-current liabilities

 

4,919

 

 

4,774

Shareholders' equity:

 

 

 

 

 

                Preferred stock, $.01 par value; authorized: 10,000,000       shares; none outstanding

 

 
-

 

 


-

                Common stock, $.01 par value; authorized 50,000,000 shares; issued 29,701,280 and 29,665,780 shares in 2005 and
2004, respectively

 

 

297

 

 

 

297

                Additional paid-in capital

 

210,238

 

 

209,765

                Retained earnings

 

251,846

 

 

242,585

                Unearned compensation

 

(533)

 

 

(572)

                Accumulated other comprehensive loss

 

1,730

 

 

1,668

                             

 

463,578

 

 

453,743

Less: cost of 40,500 common shares held in treasury in

         2005 and 2004

 

 

-

 

 

 

-

             Total shareholders' equity

 

463,578

 

 

453,743

 

$

971,509

 

$

957,701

 

 

 

 

 


 

 

GIBRALTAR INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share date)
 

 

Three Months Ended
March 31,

   

 

 

 

2005

 

2004

  
 

 

 

 (unaudited)

 (unaudited)

  
Net sales    

 

 $

273,581

 $

204,607

  
     

 

  

 

  

 

  
Cost of sales    

 

  

223,449

  

163,194

  
     

 

  

 

  

 

  
     Gross profit    

 

  

50,132

  

41,413

  
     

 

  

 

  

 

  
Selling, general and administrative expense    

 

  

29,236

  

23,599

  
     

 

  

 

  

 

  
     Income from operations    

 

  

20,896

  

17,814

  
     

 

  

 

  

 

  
Other (income) expense:    

 

  

 

  

 

  
                Equity in partnerships' income
                Interest expense		    

 

  

(444)
3,928

  

(540)
3,050

  
Total other expense    

 

  

3,484

  

2,510

  
     

 

  

 

  

 

  
     Income before taxes    

 

  

17,412

  

15,304

  
     

 

  

 

  

 

  
Provision for income taxes    

 

  

6,790

  

6,045

  
     

 

  

 

  

 

  
     Net income from continuing operations    

 

  

10,622

  

9,259

  
     

 

  

 

  

 

  
Discontinued operations:    

 

  

 

  

 

  
                Income from discontinued operations
                Income tax expense              		   

 

  

204

80

  

142

56

  
                Net income from discontinued operations    

 

  

124

  

86

  
     

 

  

 

  

 

  
Net income    

 

 $

10,746

 $

9,345

  
     

 

  

 

  

 

  
Net income per share - Basic:    

 

  

 

  

 

  
                Income from continuing operations
                Income from discontinued operations		    

 

 $

.36
.00

 $

.32
.00

  
                Net Income    

 

 $

.36

 $

.32

  
     

 

  

 

  

 

  
Weighted average shares outstanding - Basic    

 

  

29,571

  

29,134

  
     

 

  

 

  

 

  
Net income per share - Diluted:    

 

  

 

  

 

  
                Income from continuing operations
                Income from discontinued operations		    

 

 $

.36
.00

 $

.32
.00

  
                Net Income    

 

 $

.36

 $

.32

  
     

 

  

 

  

 

  
Weighted average shares outstanding - Diluted    

 

  

29,775

  

29,358

  


 

GIBRALTAR INDUSTRIES, INC.

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 

                            Three Months Ended
                                    March 31,

 

 

 

2005

 

2004

 

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Net income

 

$

10,746

$

9,345

Net income from discontinued operations

 

 

124

 

86

Net income from continuing operations

 

 

10,622

 

9,259

Adjustments to reconcile net income to net cash used in
   operating activities:

 

 

 

 

 

Depreciation and amortization

 

 

6,473

 

5,789

Provision for deferred income taxes

 

 

(1,691)

 

1,113

Equity in partnerships' income

 

 

(444)

 

(540)

Distributions from partnerships

 

 

343

 

16

Unearned compensation, net of restricted stock forfeitures

 

 

51

 

7

Other noncash adjustments

 

 

-

 

(27)

Increase (decrease) in cash resulting from changes

 

 

 

 

 

   in (net of acquisitions):

 

 

 

 

 

     Accounts receivable

 

 

(32,835)

 

(30,749)

     Inventories

 

 

(29,244)

 

(2,693)

     Other current assets

 

 

678

 

(964)

     Accounts payable and accrued expenses

 

 

(1,220)

 

11,610

     Other assets

 

 

(800)

 

(397)

 

 

 

 

 

 

       Net cash used in continuing operations

 

 

(48,067)

 

(7,576)

       Net cash provided by (used in) discontinued operations

 

 

194

 

(2,572)

       Net cash used in operating activities

 

 

(47,873)

 

(10,148)

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Acquisitions, net of cash acquired

 

 

-

 

(7,135)

Purchases of property, plant and equipment

 

 

(6,075)

 

(5,200)

Net proceeds from sale of property and equipment

 

 

255

 

295

 

 

 

 

 

 

     Net cash used in investing activities for continuing  operations

 

 

(5,820)

 

(12,040)

     Net cash provided by (used in) investing activities for
        discontinued operations

 

 

 

42,973

 

 

(255)

     Net cash provided by (used in) investing activities

 

 

37,153

 

(12,295)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Long-term debt reduction

 

 

-

 

(9,659)

Proceeds from long-term debt

 

 

7,683

 

2,656

Net proceeds from issuance of common stock

 

 

473

 

6,720

Payment of dividends

 

 

(1,485)

 

(869)

 

 

 

 

 

 

     Net cash provided by (used in) financing activities

 

 

6,671

 

(1,152)

 

 

 

 

 

 

     Net decrease in cash and cash equivalents

 

 

(4,049)

 

(23,595)

 

 

 

 

 

 

Cash and cash equivalents at beginning of year

 

 

10,892

 

29,019

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

6,843

$

5,424

 
           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GIBRALTAR INDUSTRIES, INC.

Segment Information
(in thousands)

 
 

Three Months Ended March 31,

 

 

 

 

 

 

Increase (Decrease)

 

  

2005

 

2004

  

$

 

%

 

 

(unaudited)

  

(unaudited)

 

 

  

 

 

 

 

 

 

 

 

 

 

Net Sales

 

 

 

 

 

 

 

 

     Processed metal products

$

127,612

$

77,166

$

50,446

 

65.4%

     Building products

 

119,172

 

101,935

 

17,237

 

16.9%

     Thermal processing

 

26,797

 

25,506

 

1,291

 

5.1%

 

 

 

 

 

 

 

 

 

Total Sales

$

273,581

$

204,607

$

68,974

 

33.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Operations

 

 

 

 

 

 

 

 

     Processed metal products

$

14,023

$

8,027

$

5,996

 

74.7%

     Building products

 

10,504

 

10,396

 

108

 

1.0%

     Thermal processing

 

3,405

 

3,948

 

(543)

 

(13.8)%

     Corporate

 

(7,036)

 

(4,557)

 

(2,479)

 

54.4%

 

 

 

 

 

 

 

 

 

Total Operating Income

$

20,896

$

17,814

$

3,082

 

17.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margin

 

 

 

 

 

 

 

 

     Processed metal products

 

11.0%

 

10.4%

 

 

 

 

     Building products

 

8.8%

 

10.2%

 

 

 

 

     Thermal processing

 

12.7%

 

15.5%