EX-99.1 2 pressrel.htm For Immediate Release



For Immediate Release

        April 26, 2006



GIBRALTAR REPORTS FIRST-QUARTER SALES AND EARNINGS


First-Quarter Sales Increase 32 Percent to $360 Million;

Net Income of $14.4 Million is up 36 Percent; EPS of $.48 Increases 33 Percent


BUFFALO, NEW YORK (April 26, 2006) – Gibraltar Industries, Inc. (NASDAQ: ROCK) today reported strong first-quarter sales, net income, and earnings per share for the quarter ended March 31, 2006.


Sales from continuing operations in the first quarter of 2006 were $360 million, an increase of approximately 32 percent from $274 million in the first quarter of 2005, continuing a trend of solid sales growth. Net income from continuing operations of $14.4 million in the quarter ended March 31, 2006, increased by approximately 36 percent from $10.6 million in the first quarter of 2005.


Earnings per share from continuing operations in the first quarter of 2006 were $.48, above the upper end of the range Gibraltar provided on February 8, and an increase of approximately 33 percent compared to $.36 per share in the first quarter of 2005.


“Our results in the first quarter are especially noteworthy since we had to overcome rising energy and transportation costs, as well as competitive pricing pressures in our Processed Metal Products segment,” said Brian J. Lipke, Gibraltar’s Chairman and Chief Executive Officer.


“The first-quarter results in our Building Products segment, which now represents approximately 60 percent of our sales, were strong across the board. Our Thermal Processing segment had an excellent quarter, with record sales and strong operating margins. Our Processed Metal Products segment continued to face competitive pricing pressures, which persisted longer than anticipated, and the cost of steel is continuing to escalate,” said Henning N. Kornbrekke, Gibraltar’s President and Chief Operating Officer.


“Our first-quarter results again demonstrate that Gibraltar’s product, market, customer, and geographic diversity allows us to produce consistent and steadily improving results in a variety of economic and operating environments. These results again show that Gibraltar has transitioned into a diversified manufacturer capable of generating higher and more consistent margins over an extended period,” said Mr. Lipke.


“In the year ahead, we will continue to focus on improving operating efficiencies, optimizing our market share, and maximizing our cash flow to help fund our growth and reduce debt,” said Mr. Kornbrekke.


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Gibraltar Reports First-Quarter Sales and Earnings

Page Two




Looking ahead, Mr. Kornbrekke said that, barring a significant change in business conditions, Gibraltar expects its second-quarter earnings per share will be in the range of $.57 to $.62, compared to $.53 in the second quarter of 2005.


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 approximately 24,000 customers in a variety of industries in all 50 states, Canada, Mexico, Europe, Asia, and Central and South America. It has approximately 4,400 employees and operates 93 facilities in 29 states, Canada, Mexico, and China.


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; natural gas and electricity prices and usage; 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.


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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 2 p.m. Eastern Time on April 27. 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, khouseknecht@gibraltar1.com.


Gibraltar’s news releases, along with comprehensive information about the Company, are

available on the Internet, at www.gibraltar1.com.




Gibraltar Reports First-Quarter Sales and Earnings

Page Three


            GIBRALTAR INDUSTRIES, INC.

Financial Highlights

(in thousands, except per share data)



 

                            Three Months Ended

  

March 31, 2006

  

March 31, 2005

      

Net sales

$

360,355

 

$

273,581

Income from continuing operations

$

14,397

 

$

10,622

Income per share from continuing operations - Basic

$

.49

 

$

.36

Weighted average shares outstanding - Basic

 

29,652

  

29,571

Income per share from continuing operations - Diluted

$

.48

 

$

.36

Weighted average shares outstanding - Diluted

 

29,944

  

29,775


GIBRALTAR INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

 
  

    March 31,                         December 31,

  

       2006

  

       2005

      

Assets

     
      

Current assets:

     

Cash and cash equivalents

$

9,317

 

$

28,529

Accounts receivable

 

212,038

  

178,775

Inventories

 

210,745

  

194,653

Other current assets

 

22,111

  

22,047

Total current assets

 

454,211

  

424,004

      

Property, plant and equipment, net

 

309,657

  

311,147

Goodwill

 

406,810

  

406,767

Investments in partnerships

 

5,833

  

6,151

Other assets

 

55,787

  

56,943

 

$

1,232,298

 

$

1,205,012

      

Liabilities and Shareholders' Equity

     

Current liabilities:

     

Accounts payable

$

101,289

 

$

85,877

Accrued expenses

 

66,803

  

63,007

Current maturities of long-term debt

 

2,534

  

2,531

Current maturities of related party debt

 

5,833

  

5,833

Total current liabilities

 

176,459

  

157,248

      

Long-term debt

 

446,378

  

454,649

Deferred income taxes

 

93,625

  

93,052

Other non-current liabilities

 

6,830

  

6,038

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 29,783,623 and 29,734,986 shares in 2006 and  2005, respectively

 

298

  

298

Additional paid-in capital

 

212,961

  

216,897

Retained earnings

 

293,026

  

280,116

Unearned compensation

 

-

  

(5,153)

Accumulated other comprehensive loss

 

2,721

  

1,867


 

509,006

  

494,025

Less: cost of 41,100 common shares held in treasury in

         2006 and 2005

 


-

  


-

             Total shareholders’ equity

 

509,006

  

494,025

 

$

1,232,298

 

$

1,205,012




GIBRALTAR INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share date)

  

Three Months Ended

March 31,

   

 

  

2006

 

2005

     

Net sales

    

$

360,355

$

273,581

         

Cost of sales

     

288,832

 

223,449

         

     Gross profit

     

71,523

 

50,132

         

Selling, general and administrative expense

     

40,561

 

29,236

         

     Income from operations

     

30,962

 

20,896

         

Other (income) expense:

        

  

Equity in partnerships’ income and other income

Interest expense

     

(686)

8,047

 

(444)

3,928

Total other expense

     

7,361

 

3,484

         

     Income before taxes

     

23,601

 

17,412

         

Provision for income taxes

     

9,204

 

6,790

         

     Income from continuing operations

    

$

14,397

$

10,622

         

Discontinued operations:

        

Income from discontinued operations before taxes

Income tax expense


     

-

-

 

204

80

Income from discontinued operations

     

-

 

124

         

Net income

    

$

14,397

$

10,746

         

Net income per share – Basic:

        

Income from continuing operations

Income from discontinued operations

    

$

.49

.00

$

.36

.00

 

Net Income

    

$

.49

$

.36

         

Weighted average shares outstanding – Basic

     

29,652

 

29,571

         

Net income per share – Diluted:

        

Income from continuing operations

Income from discontinued operations

    

$

.48

.00

$

.36

.00

 

Net Income

    

$

.48

$

.36

         

Weighted average shares outstanding – Diluted

     

29,944

 

29,775

 
 

GIBRALTAR INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 
  

                                Three Months Ended

                                        March 31,

    

2006

 

2005

Cash flows from operating activities

      

Net income

  

$

14,397

$

10,746

Income from discontinued operations

   

-

 

124

Income from continuing operations

   

14,397

 

10,622

Adjustments to reconcile net income to net cash used in

   operating activities:

      

Depreciation and amortization

   

8,874

 

6,473

Provision for deferred income taxes

   

-

 

(1,691)

Equity in partnerships’ (loss) income

   

131

 

(444)

Distributions from partnerships

   

188

 

343

Stock compensation expense

   

706

 

51

Other noncash adjustments

   

(9)

 

-

Increase (decrease) in cash resulting from changes

      

   in (net of acquisitions):

      

     Accounts receivable

   

(33,273)

 

(32,835)

     Inventories

   

(16,101)

 

(29,244)

     Other current assets and other assets

   

629

 

(122)

     Accounts payable

   

15,424

 

602

     Accrued expenses and other non-current liabilities

   

5,464

 

(1,822)

       

       Net cash used in continuing operations

   

(3,570)

 

(48,067)

       Net cash provided by discontinued operations

   

0

 

194

       Net cash used in operating activities


   

(3,570)

 

(47,873)

       

Cash flows from investing activities

      

Purchases of property, plant and equipment

   

(6,377)

 

(6,075)

Net proceeds from sale of property and equipment

   

36

 

255

Net proceeds from sale of business

   

-

 

43,322

       

     Net cash used in investing activities for continuing operations

   

(6,341)

 

37,502

     Net cash provided by (used in) investing activities for

        discontinued operations

   


-

 


  (349)

     Net cash provided by (used in) investing activities

   

(6,341)

 

37,153

       

Cash flows from financing activities

      

Long-term debt reduction

   

(15,137)

 

-

Proceeds from long-term debt

   

6,817

 

7,683

Payment of deferred financing costs

   

(161)

 

-

Net proceeds from issuance of common stock

   

552

 

473

Payment of dividends

   

(1,487)

 

(1,485)

Tax benefit from stock options

   

115

 

-

       

     Net cash provided by (used in) financing activities

   

(9,301)

 

6,671

       

     Net decrease in cash and cash equivalents

   

(19,212)

 

(4,049)

       

Cash and cash equivalents at beginning of year

   

28,529

 

10,892

       

Cash and cash equivalents at end of period

  

$

9,317

$

6,843

GIBRALTAR INDUSTRIES, INC.

Segment Information

(in thousands)


 

Three Months Ended March 31,

      

Increase (Decrease)

  

2006

 

2005

 

$

 

%

  

(unaudited)

 

(unaudited)

    
         

Net Sales

        

     Building products

$

214,742

$

119,172

$

95,570

 

80.2%

     Processed metal products

 

115,889

 

127,612

 

(11,723)

 

(9.2%)

     Thermal processing

 

29,724

 

26,797

 

2,927

 

10.9%

         

Total Sales

$

360,355

$

273,581

$

86,774

 

31.7%

         
         

Income from Operations

        

     Building products

$

31,271

$

10,504

$

20,767

 

197.7%

     Processed metal products

 

6,735

 

14,023

 

(7,288)

 

(52.0%)

     Thermal processing

 

4,655

 

3,405

 

1,250

 

36.7%

     Corporate

 

(11,699)

 

(7,036)

 

(4,663)

 

66.3%

         

Total Operating Income

$

30,962

$

20,896

$

10,066

 

48.2%

         
         

Operating Margin

        

     Building products

 

14.6%

 

8.8%

    

     Processed metal products

 

5.8%

 

11.0%

 

 

 

 

     Thermal processing

 

15.7%

 

12.7%