EX-99.1 2 pressrel.htm For Immediate Release

 

                                           For Immediate Release

                                                                August 3, 2005

 

GIBRALTAR REPORTS IMPROVED SECOND-QUARTER SALES AND EARNINGS

Sales of $288 Million Grew 16%, Net Income from Continuing Operations was $15.9 Million

            BUFFALO, NEW YORK (August 3, 2005) - Gibraltar Industries, Inc. (NASDAQ: ROCK) today reported improved sales and earnings for the three and six months ended June 30, 2005.

            Sales in the second quarter of 2005 were $288 million, an increase of approximately 16 percent compared to $249 million in the second quarter of 2004. Sales for the first six months of 2005 were $562 million, up by approximately 24 percent compared to $454 million in the first half of 2004.

            Net income from continuing operations in the second quarter of 2005 was $15.9 million, compared to $15.3 million in the second quarter of 2004. During the first half of 2005, net income from continuing operations was $26.5 million, an increase of approximately eight percent compared to $24.6 million in the first six months of 2004.

            Earnings per share from continuing operations in the second quarter of 2005 were $.53, compared to $.51 in the second quarter of 2004 on slightly higher outstanding shares in the current period. During the first half of 2005, earnings per share from continuing operations were $.89, compared to $.83 in the first half of 2004.

            Inventories were reduced as scheduled by $31 million, providing positive cash flow which, combined with other positive operating cash flows, was used to reduce debt by $45 million during the quarter.

            "As a result of the volatility and timing of steel pricing issues occurring most notably during the second quarter, which are only recently starting to abate, the third quarter will see gross margin pressure" said Brian J. Lipke, Gibraltar's Chairman and Chief Executive Officer.

            "Since the end of the second quarter, steel prices have begun to stabilize, which should allow for the inventory flow through issue to be corrected with margins beginning to stabilize and move towards normal levels as the third quarter winds down.  As the balance of the year unfolds, we expect this trend to continue," said Mr. Lipke.

--more--

Gibraltar's Reports Record Quarterly Sales, Net Income, and Earnings Per Share
Page Two

            Taking into consideration the third quarter resolution of the inventory flow through situation, and barring a significant change in business conditions, Gibraltar expects its third-quarter earnings per share from continuing operations will be in the range of $.40 to $.45, compared to $.55 in the third quarter of 2004.

            "We are focused on continuous improvements in our growth and profitability.  Longer term, improving our returns on invested capital and improving our cash flow remain priorities," said Mr. Lipke.

            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.

        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 3,500 employees and operates 74 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 second-quarter results and discuss its outlook for the third quarter during its quarterly conference call, which will be held at 2 p.m. Eastern Time on August 4. 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

 

 
June 30, 2005

 

 
June 30, 2004

Net Sales

$

288,388

 

$

249,092

Net Income from Continuing Operations

$

15,915

 

$

15,294

Net Income Per Share from Continuing
    Operations -Basic


$


.54

 


$


.52

Weighted Average Shares Outstanding-Basic

 

29,606

 

 

29,308

Net Income Per Share from Continuing
    Operations - Diluted


$


.53

 


$


.51

Weighted Average Shares Outstanding-Diluted

 

29,762

 

 

29,554

 

 
   Six Months Ended

 

 
June 30, 2005

 

 
June 30, 2004

Net Sales

$

561,969

 

$

453,699

Net Income from Continuing Operations

$

26,537

 

$

24,553

Net Income Per Share from Continuing
   Operations -Basic


$


.90

 


$


.84

Weighted Average Shares Outstanding-Basic

 

29,588

 

 

29,227

Net Income Per Share from Continuing
   Operations -Diluted


$


.89

 


$


.83

Weighted Average Shares Outstanding-Diluted

 

29,769

 

 

29,462


 

GIBRALTAR INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)

 

 

June 30,
2005

 

 

December 31,
2004

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

                Cash and cash equivalents

$

7,025

 

$

10,892

                Accounts receivable, net

 

171,940

 

 

146,021

                Inventories

 

199,061

 

 

207,215

                Other current assets

11,825

15,479

                        Total current assets

 

389,851

 

 

379,607

Property, plant and equipment, net

254,643

269,019

Goodwill

269,881

285,927

Investments in partnerships

 7,753

8,211

Other assets

14,148

14,937

 

$

936,276

 

$

957,701

Liabilities and Shareholders' Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

                Accounts payable

$

65,001

 

$

70,775

                Accrued expenses

 

51,305

 

 

51,885

                Current maturities of long-term debt

 

8,860

 

 

8,859

                Current maturities of related party debt

 

5,833

 

 

5,833

                        Total current liabilities

 

130,999

 

 

137,352

 

 

 

 

 

 

Long-term debt

 

257,915

 

 

289,514

Long-term related party debt

 

-

 

 

5,833

Deferred income taxes

 

64,412

 

 

66,485

Other non-current liabilities

 

5,065

 

 

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 29,707,186 and 29,665,780 shares in 2005 and  2004, respectively

 

297

 

 

297

     Additional paid-in capital

 

216,488

 

 

209,765

     Retained earnings

265,834

242,585

     Unearned compensation

(6,313)

(572)

     Accumulated other comprehensive loss

 

1,579

 

 

1,668

                             

477,885

453,743

Less: cost of 40,500 common shares held in treasury in 2005 and 2004

 


-

 

 


-

                       Total shareholders' equity

 

477,885

 

 

453,743

 

$

936,276

 

$

957,701


                      See accompanying notes to condensed consolidated financial statements
 

 

GIBRALTAR INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands)

 

Three Months Ended
June 30,

Six Months Ended
June 30,

 

 

2005

 

2004

 

2005

 

     2004

 

 

      

 

 

Net sales

$

288,388

 

 $249,092

$        

561,969

   $

453,699

 

 

 

 

 

 

 

 

 

Cost of sales

 

 231,922

 

192,302

 

455,371

 

355,496

 

 

 

 

 

 

 

 

 

        Gross profit

 

56,466

 

56,790

 

106,598

 

98,203

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

27,188

 

9,719

 

56,424

 

53,318

 

 

 

 

 

 

 

 

 

     Income from operations

 

29,278

 

27,071

 

50,174

 

44,885

 

 

 

 

 

 

 

 

 

Other (income) expense:

 

 

 

 

 

 

 

 

  Equity in partnerships' loss (income), and other  income

 

93

 

(1,186)

 

(351)

 

(1,726)

  Interest expense

 

3,816

 

2,977

 

7,744

 

6,027

Total other expense

 

3,909

 

1,791

 

7,393

 

4,301

 

 

 

 

 

 

 

 

 

     Income before taxes

 

25,369

 

25,280

 

42,781

 

40,584

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

9,454

 

 9,986

 

16,244

 

16,031

    Net income from continuing operations

 

15,915

 

15,294

 

26,537

 

24,553

 

 

 

 

 

 

 

 

 

Discontinued operations:
     (Loss) income from discontinued operations
        Income tax (benefit) expense
        Net income (loss) from discontinued operations

$

(728)
(284)
(444)

 

$        248
  98
150

 

$    (524)
(204)
 (320)

 

$               390
154
236

 

 

 

 

 

 

 

 

 

Net income

 

15,471

 

15,444

 

26,217

 

24,789

 

 

 

 

 

 

 

 

 

Net income per share - Basic:
       Income from continuing operations
       (Loss) income from discontinued operations


$


.54
(.01)


 


$         .52
.01


$


.90
(.01)


$


.84
.01

                Net income

$

.53

 

$         .53

$

.89

$

.85

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - Basic

 

29,606

 

$  29,308

 

29,588

 

29,227

Net income per share - Diluted:
      Income from continuing operations
      (Loss) income from discontinued operations



$


.53
(.01)



$


.51
.01



$


.89
(.01)



$


.83
.01

                Net income

$

.52

$

.52

$

.88

$

.84

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - Diluted

 

29,762

 

29,554

 

29,769

 

29,462

 

GIBRALTAR INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Six Months Ended        
June 30,                  

 

 

     2005

 

2004

Cash flows from operating activities

 

 

 

 

Net income

$

26,217

$

24,789

Net (loss) income from discontinued operations

 

(320)

 

236

Net income from continuing operations

 

26,537

 

24,553

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

13,286

 

11,653

Provision for deferred income taxes

 

(786)                    

 

2,245

Equity in partnerships' income

 

(294)                    

 

(1,726)

Distributions from partnerships

 

748                    

 

846

Unearned compensation, net of restricted stock forfeitures

 

327                    

 

69

Other noncash adjustments

 

202                    

 

133

Increase (decrease) in cash resulting from changes

 

 

 

 

   in (net of acquisitions and disposition):

 

 

 

 

     Accounts receivable

 

(32,872)                  

 

(46,094)

     Inventories

 

1,862                   

 

(24,929)

     Other current assets

 

1,858                   

 

561

     Accounts payable and accrued expenses

 

(3,918)                  

 

37,235

     Other assets

 

(3,306)                  

 

(997)

 

 

 

 

 

       Net cash provided by continuing operations

 

3,644                   

 

3,549

       Net cash used in discontinued operations

 

(486)                  

 

(1,832)

       Net cash provided by operating activities

 

3,158                   

 

1,717

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Acquisitions, net of cash acquired

 

-                   

 

(48,600)

Purchases of property, plant and equipment

 

(10,385)                  

 

(9,783)

Net proceeds from sale of property and equipment

 

249                   

 

230

Net proceeds from sale of business

 

42,594                   

 

-

 

 

 

 

 

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

 


32,458                   

 


(58,153)

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

 


397                   

 


(477)

     Net cash provided by (used in) investing activities

 

32,855                   

 

(58,630)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Long-term debt reduction

 

(47,430)                 

 

(25,506)

Proceeds from long-term debt

 

10,000                  

 

57,680

Payment of dividends

 

(2,970)                 

 

(1,751)

Net proceeds from issuance of common stock

 

520                  

 

7,768

 

 

 

 

 

     Net cash (used in) provided by financing activities

 

(39,880)                

 

38,191

 

 

 

 

 

     Net decrease in cash and cash equivalents

 

(3,867)                

 

(18,722)

 

 

 

 

 

Cash and cash equivalents at beginning of year

 

10,892                 

 

29,019

 

 

 

 

 

Cash and cash equivalents at end of period

$

7,025                 

$

10,297

See accompanying notes to condensed consolidated financial statements

 


     GIBRALTAR INDUSTRIES, INC.
     Segment Information
     (unaudited)
      (in thousands)
 

 

Three Months Ended June 30,

 

 

 

 

 

 

Increase (Decrease)

 

 

2005

 

2004

 

$

 

%

 

 

(unaudited)

 

(unaudited)

 

 

 

 

Net Sales

 

 

 

 

 

 

 

 

     Processed metal products

$

118,188

$

94,320

$

23,868

 

25.3%

     Building products

 

142,654

 

128,341

 

14,313

 

11.2%

     Thermal processing

 

27,546

 

26,431

 

1,115

 

4.2%

 

 

 

 

 

 

 

 

 

Total Sales

 

288,388

 

249,092

 

39,296

 

15.8%

 

 

 

 

 

 

 

 

 

Income from Continuing Operations

 

 

 

 

 

 

 

 

     Processed metal products

$

8,444

$

11,004

$

(2,560)

$

(23.3%)

     Building products

 

22,197

 

19,734

 

2,463

 

12.5%

     Thermal processing

 

4,200

 

4,274

 

(74)

 

(2%)

     Corporate

 

(5,563)

 

(7,941)

 

2,378

 

29.9%

 

 

 

 

 

 

 

 

 

Total Operating Income

 

29,278

 

27,071

 

2,207

 

8.2%

 

 

 

 

 

 

 

 

 

Operating Margin

 

 

 

 

 

 

 

 

     Processed metal products

 

7.1%

 

11.7%

 

 

 

 

     Building products

 

15.6%

 

15.4%

 

 

 

 

     Thermal processing

 

15.2%

 

16.2%

 

 

 

 

 

Six Months Ended June 30,

 

 

 

 

 

 

Increase (Decrease)

 

 

2005

 

2004

 

$

 

%

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

 

 

 

 

 

 

 

     Processed metal products

$

245,800

$

171,486

$

74,314

 

43.3%

     Building products

 

261,826

 

230,276

 

31,550

 

13.7%

     Thermal processing

 

54,343

 

51,937

 

2,406

 

4.6%

 

 

 

 

 

 

 

 

 

Total Sales

 

561,969

 

453,699

 

108,270

 

23.9%

 

 

 

 

 

 

 

 

 

Income from Continuing Operations

 

 

 

 

 

 

 

 

     Processed metal products

$

22,467

$

19,031

$

3,436

 

18.1%

     Building products

 

32,701

 

30,129

 

2,572

 

8.5%

     Thermal processing

 

7,605

 

8,222

 

(617)

 

(7.5%)

     Corporate

 

(12,599)

 

(12,497)

 

(102)

 

0%

 

 

 

 

 

 

 

 

 

Total Operating Income

 

50,174

 

44,885

 

5,289

 

11.8%

 

 

 

 

 

 

 

 

 

Operating Margin

 

9.1%

 

11.1%

 

 

 

 

     Processed metal products

 

12.5%

 

13.1%

 

 

 

 

     Building products

 

14.0%

 

15.8%

 

 

 

 

     Thermal processing