Gibraltar Announces Third-Quarter 2020 Financial Results

Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the renewable energy, conservation, residential, industrial and infrastructure markets, today reported its financial results for the three-month period ended September 30, 2020.

“We delivered a solid performance as we continued to focus on executing our business plans. Revenue increased 10.2% and adjusted EPS increased 11.6%, with GAAP and adjusted operating margins improving 280 and 40 basis points respectively,” said President and Chief Executive Officer Bill Bosway. “Our investments across the business over the last nine months have been meaningful, targeted, and are beginning to generate positive results. We also recently completed a $27 million acquisition of Architectural Mailboxes, a complementary addition to our Mail and Package solutions business. We enter the fourth quarter with solid momentum and a backlog of $304 million, up 26%, and a strong, liquid balance sheet to fund key initiatives.”

Third Quarter 2020 Consolidated Results

Gibraltar reported the following consolidated results:

 

Three Months Ended September 30,

Dollars in millions, except EPS

GAAP

 

Adjusted

 

2020

2019

% Change

 

2020

2019

% Change

Net Sales

$

329.7

$

299.2

10.2

%

 

$

329.7

$

299.2

10.2

%

Net Income

$

33.8

$

24.5

38.0

%

 

$

34.9

$

31.2

11.9

%

Diluted EPS

$

1.02

$

0.75

36.0

%

 

$

1.06

$

0.95

11.6

%

Third quarter 2020 net sales increased 10.2% to $329.7 million, driven by the Residential Products and Renewable Energy & Conservation segments. Of the 10.2% increase, organic growth accounted for 2.1%, and recent acquisitions contributed 8.1%.

GAAP earnings increased 38.0% to $33.8 million, or $1.02 per share, while adjusted earnings increased 11.9% to $34.9 million, or $1.06 per share, the result of organic growth and marked margin expansion in our Residential Products segment, continued execution in all core businesses, product and services mix, favorable alignment of price to material costs, and ongoing benefits from operational excellence initiatives. Adjusted measures remove charges for restructuring initiatives, acquisition-related items, senior leadership transition costs, and other reclassifications, as further described in the appended reconciliation of adjusted financial measures.

Third Quarter Segment Results

Renewable Energy & Conservation

For the third quarter, the Renewable Energy & Conservation segment reported:

 

Three Months Ended September 30,

Dollars in millions

GAAP

 

Adjusted

 

2020

2019

% Change

 

2020

2019

% Change

Net Sales

$

128.3

 

$

116.8

 

9.8

%

 

$

128.3

 

$

116.8

 

9.8

%

Operating Margin

 

11.1

%

 

16.8

%

(570) bps

 

 

11.6

%

 

17.8

%

(620) bps

Segment revenue increased 9.8% driven by growth in Renewable Energy and previous acquisitions in the Conservation business, offset by a decline in the core Conservation business related to a slowdown in the cannabis and hemp markets. Total segment backlog increased 28% with Renewable Energy and Conservation businesses contributing equally to the increase over 2019. The strength in backlog is the result of strong end market demand in Renewable Energy, and in Conservation, driven by strength in the fruits and vegetables market and increasing activity in the cannabis market.

Adjusted operating margin declined for the quarter driven by near-term market challenges impacting the Conservation business, particularly related to the cannabis and hemp markets. The acquisitions made in the Conservation business delivered margins consistent with expectations, and margins are expected to improve moving forward. Renewable Energy margin performance remains solid, driven by strong execution, participation gains, and product and service mix.

Residential Products

For the third quarter, the Residential Products segment reported:

 

Three Months Ended September 30,

Dollars in millions

GAAP

Adjusted

 

2020

2019

% Change

2020

2019

% Change

Net Sales

$

151.7

 

$

126.3

 

20.1

%

$

151.7

 

$

126.3

 

20.1

%

Operating Margin

 

21.4

%

 

13.5

%

790 bps

 

21.5

%

 

16.2

%

530 bps

Segment revenue increased 20.1% as the home improvement market continued to show solid activity, and through participation gains across our various distribution channels. Adjusted operating margin increased with consistent execution on higher volume, effective price and material cost management, and additional 80/20 initiatives.

Subsequent to quarter-end, Gibraltar acquired Architectural Mailboxes for $27 million, a complementary addition to Gibraltar’s existing mail & package solutions business within the Residential segment. The acquisition provides an entry into new market segments while creating synergy across digital marketing, engineering, and supply chain initiatives. Architectural Mailboxes revenue is expected to be $26 million in 2020.

Industrial & Infrastructure Products

For the third quarter, the Industrial & Infrastructure Products segment reported:

 

Three Months Ended September 30,

Dollars in millions

GAAP

Adjusted

 

2020

2019

% Change

2020

2019

% Change

Net Sales

$

49.7

 

$

56.2

 

(11.6

)%

$

49.7

 

$

56.2

 

(11.6

)%

Operating Margin

 

10.5

%

 

9.7

%

80 bps

 

11.0

%

 

10.2

%

80 bps

Segment revenue decreased 11.6%, driven by lower demand for core industrial products. The infrastructure business was down slightly as the pandemic affected spending on infrastructure projects in certain end markets. Infrastructure backlog grew slightly.

The increase in adjusted operating margin was driven by continued improvement in execution in the industrial business and effective price and material cost management.

Business Outlook

Gibraltar delivered solid revenue and adjusted EPS growth through the first three quarters, and expects fourth quarter performance to surpass 2019 results. Given the ongoing level of uncertainty related to the pandemic, the economy, and the upcoming election, Gibraltar is maintaining the practice of providing qualitative guidance.

“While our momentum and end market trends continue to be positive, we are closely monitoring the everchanging pandemic landscape and potential impact on the U.S. and global economy,” Bosway commented. “We remain focused on executing our operating playbook, maintaining a safe environment for our people, and meeting our customers’ needs every day. We will also continue key organic and inorganic investments to strengthen our business platforms for the markets we serve.”

Third Quarter 2020 Conference Call Details

Gibraltar will host a conference call today starting at 9:00 a.m. ET to review its results for the third quarter of 2020. Interested parties may access the webcast through the Investors section of the Company’s website at www.gibraltar1.com or dial into the call at (833) 665-0649 or (914) 987-7311. Presentation slides referenced during the conference call will be available for download on the website. A webcast replay of the conference call and a copy of the transcript will be available on the website following the call.

About Gibraltar

Gibraltar Industries is a leading manufacturer and provider of products and services for the renewable energy, conservation, residential, industrial, and infrastructure markets. With a three-pillar strategy focused on business systems, portfolio management, and organization and talent development, Gibraltar’s mission is to create compounding and sustainable value with strong leadership positions in higher growth, profitable end markets. Gibraltar serves customers primarily throughout North America. Comprehensive information about Gibraltar can be found on its website at 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 impacts of COVID-19 on the global economy and on our customers, suppliers, employees, operations, business, liquidity and cash flows, 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, 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 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. Adjusted financial measures exclude special charges consisting of restructuring costs primarily associated with 80/20 simplification initiatives, senior leadership transition costs, early debt repayment, acquisition related costs, and other reclassifications. These adjustments are shown in the reconciliation of adjusted financial measures excluding special charges provided in the supplemental financial schedules that accompany this news release. The Company believes that the presentation of results excluding special charges provides meaningful supplemental data to investors, as well as management, 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. Special charges are excluded since they may not be considered directly related to the Company’s ongoing business operations. 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.

GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2020

 

2019

 

2020

 

2019

Net Sales

$

329,665

 

 

$

299,236

 

 

$

864,918

 

 

$

789,308

 

Cost of sales

244,222

 

 

222,658

 

 

650,830

 

 

605,272

 

Gross profit

85,443

 

 

76,578

 

 

214,088

 

 

184,036

 

Selling, general, and administrative expense

41,584

 

 

45,158

 

 

120,448

 

 

115,444

 

Income from operations

43,859

 

 

31,420

 

 

93,640

 

 

68,592

 

Interest expense

218

 

 

17

 

 

385

 

 

2,297

 

Other expense (income)

53

 

 

84

 

 

(1,542)

 

 

660

 

Income before taxes

43,588

 

 

31,319

 

 

94,797

 

 

65,635

 

Provision for income taxes

9,828

 

 

6,843

 

 

21,686

 

 

14,901

 

Net income

$

33,760

 

 

$

24,476

 

 

$

73,111

 

 

$

50,734

 

 

 

 

 

 

 

 

 

Net earnings per share:

 

 

 

 

 

 

 

Basic

$

1.03

 

 

$

0.75

 

 

$

2.24

 

 

$

1.57

 

Diluted

$

1.02

 

 

$

0.75

 

 

$

2.22

 

 

$

1.55

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

32,635

 

 

32,470

 

 

32,606

 

 

32,357

 

Diluted

32,969

 

 

32,770

 

 

32,902

 

 

32,677

 

GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)

 

 

September 30,
2020

 

December 31,
2019

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

179,816

 

 

$

191,363

 

Accounts receivable, net of allowance of $3,319 and $6,330

203,488

 

 

147,515

 

Inventories, net

77,943

 

 

78,476

 

Prepaid expenses and other current assets

20,306

 

 

19,748

 

Total current assets

481,553

 

 

437,102

 

Property, plant, and equipment, net

94,983

 

 

95,409

 

Operating lease assets

32,359

 

 

27,662

 

Goodwill

382,427

 

 

329,705

 

Acquired intangibles

108,821

 

 

92,592

 

Other assets

1,703

 

 

1,980

 

 

$

1,101,846

 

 

$

984,450

 

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

131,746

 

 

$

83,136

 

Accrued expenses

106,480

 

 

98,463

 

Billings in excess of cost

31,267

 

 

47,598

 

Total current liabilities

269,493

 

 

229,197

 

Deferred income taxes

40,942

 

 

40,334

 

Non-current operating lease liabilities

23,314

 

 

19,669

 

Other non-current liabilities

22,022

 

 

21,286

 

Shareholders’ equity:

 

 

 

Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding

 

 

 

Common stock, $0.01 par value; authorized 50,000 shares; 33,519 shares and 33,192 shares issued and outstanding in 2020 and 2019

335

 

 

332

 

Additional paid-in capital

302,107

 

 

295,582

 

Retained earnings

478,488

 

 

405,668

 

Accumulated other comprehensive loss

(6,220)

 

 

(5,391)

 

Cost of 1,024 and 906 common shares held in treasury in 2020 and 2019

(28,635)

 

 

(22,227)

 

Total shareholders’ equity

746,075

 

 

673,964

 

 

$

1,101,846

 

 

$

984,450

 

GIBRALTAR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

 

 

Nine Months Ended
September 30,

 

2020

 

2019

Cash Flows from Operating Activities

 

 

 

Net income

$

73,111

 

 

$

50,734

 

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

 

 

 

Depreciation and amortization

17,325

 

 

14,923

 

Stock compensation expense

6,151

 

 

10,087

 

Gain on sale of business

(1,881)

 

 

 

Exit activity costs, non-cash

505

 

 

479

 

Provision for (benefit of) deferred income taxes

668

 

 

(429)

 

Other, net

1,402

 

 

3,267

 

Changes in operating assets and liabilities, excluding the effects of acquisitions:

 

 

 

Accounts receivable

(40,176)

 

 

(56,645)

 

Inventories

6,102

 

 

18,617

 

Other current assets and other assets

6,095

 

 

(6,949)

 

Accounts payable

13,408

 

 

22,770

 

Accrued expenses and other non-current liabilities

(26,516)

 

 

15,640

 

Net cash provided by operating activities

56,194

 

 

72,494

 

Cash Flows from Investing Activities

 

 

 

Acquisitions, net of cash acquired

(54,385)

 

 

(8,665)

 

Net proceeds from sale of property and equipment

568

 

 

87

 

Purchases of property, plant, and equipment

(9,335)

 

 

(7,703)

 

Net proceeds from sale of business

2,000

 

 

 

Net cash used in investing activities

(61,152)

 

 

(16,281)

 

Cash Flows from Financing Activities

 

 

 

Long-term debt payments

 

 

(212,000)

 

Payment of debt issuance costs

 

 

(1,235)

 

Purchase of treasury stock at market prices

(6,408)

 

 

(3,495)

 

Net proceeds from issuance of common stock

377

 

 

400

 

Net cash used in financing activities

(6,031)

 

 

(216,330)

 

Effect of exchange rate changes on cash

(558)

 

 

729

 

Net decrease in cash and cash equivalents

(11,547)

 

 

(159,388)

 

Cash and cash equivalents at beginning of year

191,363

 

 

297,006

 

Cash and cash equivalents at end of period

$

179,816

 

 

$

137,618

 

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)

 

 

 

Three Months Ended
September 30,2020

 

 

As
Reported
In GAAP
Statements

 

Restructuring
Charges

 

Senior
Leadership
Transition
Costs

 

Acquisition
Related
Items

 

Adjusted
Financial
Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

$

128,258

 

 

$

 

 

$

 

 

$

 

 

$

128,258

 

Residential Products

 

151,718

 

 

 

 

 

 

 

 

151,718

 

Industrial & Infrastructure Products

 

49,767

 

 

 

 

 

 

 

 

49,767

 

Less Inter-Segment Sales

 

(78)

 

 

 

 

 

 

 

 

(78)

 

 

 

49,689

 

 

 

 

 

 

 

 

49,689

 

Consolidated sales

 

329,665

 

 

 

 

 

 

 

 

329,665

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

14,195

 

 

172

 

 

 

 

572

 

 

14,939

 

Residential Products

 

32,454

 

 

186

 

 

 

 

 

 

32,640

 

Industrial & Infrastructure Products

 

5,199

 

 

252

 

 

 

 

 

 

5,451

 

Segments Income

 

51,848

 

 

610

 

 

 

 

572

 

 

53,030

 

Unallocated corporate expense

 

(7,989)

 

 

17

 

 

170

 

 

16

 

 

(7,786)

 

Consolidated income from operations

 

43,859

 

 

627

 

 

170

 

 

588

 

 

45,244

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

218

 

 

 

 

 

 

 

 

218

 

Other expense

 

53

 

 

 

 

 

 

 

 

53

 

Income before income taxes

 

43,588

 

 

627

 

 

170

 

 

588

 

 

44,973

 

Provision for income taxes

 

9,828

 

 

146

 

 

 

 

135

 

 

10,109

 

Net income

 

$

33,760

 

 

$

481

 

 

$

170

 

 

$

453

 

 

$

34,864

 

Net earnings per share - diluted

 

$

1.02

 

 

$

0.02

 

 

$

0.01

 

 

$

0.01

 

 

$

1.06

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

11.1

%

 

0.1

%

 

%

 

0.4

%

 

11.6

%

Residential Products

 

21.4

%

 

0.1

%

 

%

 

%

 

21.5

%

Industrial & Infrastructure Products

 

10.5

%

 

0.5

%

 

%

 

%

 

11.0

%

Segments Margin

 

15.7

%

 

0.2

%

 

%

 

0.2

%

 

16.1

%

Consolidated

 

13.3

%

 

0.2

%

 

0.1

%

 

0.2

%

 

13.7

%

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)

 

 

 

Three Months Ended
September 30, 2019

 

 

As
Reported
In GAAP
Statements

 

Restructuring
Charges

 

Senior
Leadership
Transition
Costs

 

Acquisition
Related
Items

 

Adjusted
Financial
Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

$

116,771

 

 

$

 

 

$

 

 

$

 

 

$

116,771

Residential Products

 

126,275

 

 

 

 

 

 

 

 

126,275

Industrial & Infrastructure Products

 

56,361

 

 

 

 

 

 

 

 

56,361

Less Inter-Segment Sales

 

(171)

 

 

 

 

 

 

 

 

(171)

 

 

 

56,190

 

 

 

 

56,190

Consolidated sales

 

299,236

 

 

 

 

 

 

 

299,236

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

19,633

 

 

37

 

 

 

 

1,166

 

 

20,836

Residential Products

 

17,012

 

 

3,415

 

 

 

 

 

 

20,427

Industrial & Infrastructure Products

 

5,462

 

 

285

 

 

 

 

 

 

5,747

Segments income

 

42,107

 

 

3,737

 

 

 

 

1,166

 

 

47,010

 

Unallocated corporate expense

 

(10,687)

 

 

246

 

 

2,708

 

 

470

 

 

(7,263)

 

Consolidated income from operations

 

31,420

 

 

3,983

 

 

2,708

 

 

1,636

 

 

39,747

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

17

 

 

 

 

 

 

 

 

17

Other expense

 

84

 

 

 

 

 

 

 

 

84

 

Income before income taxes

 

31,319

 

 

3,983

 

 

2,708

 

 

1,636

 

 

39,646

 

Provision for income taxes

 

6,843

 

 

1,030

 

 

161

 

 

417

 

 

8,451

Net income

 

$

24,476

 

 

$

2,953

 

 

$

2,547

 

 

$

1,219

 

 

$

31,195

 

Net earnings per share - diluted

 

$

0.75

 

 

$

0.09

 

 

$

0.08

 

 

$

0.03

 

 

$

0.95

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

16.8

%

 

%

 

%

 

1.0

%

 

17.8

%

Residential Products

 

13.5

%

 

2.7

%

 

%

 

%

 

16.2

%

Industrial & Infrastructure Products

 

9.7

%

 

0.5

%

 

%

 

%

 

10.2

%

Segments margin

 

14.1

%

 

1.2

%

 

%

 

0.4

%

 

15.7

%

Consolidated

 

10.5

%

 

1.3

%

 

0.9

%

 

0.5

%

 

13.3

%

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)

 

 

 

Nine Months Ended
September 30, 2020

 

 

As
Reported
In GAAP
Statements

 

Restructuring
Charges

 

Senior
Leadership
Transition
Costs

 

Acquisition
Related
Items

 

Gain on
Sale of
Business

 

Adjusted
Financial
Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

$

323,014

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

323,014

 

Residential Products

 

394,609

 

 

 

 

 

 

 

 

 

 

394,609

 

Industrial & Infrastructure Products

 

147,831

 

 

 

 

 

 

 

 

 

 

147,831

 

Less Inter-Segment Sales

 

(536)

 

 

 

 

 

 

 

 

 

 

(536)

 

 

 

147,295

 

 

 

 

 

 

 

 

 

 

147,295

 

Consolidated sales

 

864,918

 

 

 

 

 

 

 

 

 

 

864,918

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

29,082

 

 

578

 

 

 

 

2,745

 

 

 

 

32,405

 

Residential Products

 

74,143

 

 

670

 

 

 

 

 

 

 

 

74,813

 

Industrial & Infrastructure Products

 

15,832

 

 

564

 

 

 

 

 

 

 

 

16,396

 

Segments Income

 

119,057

 

 

1,812

 

 

 

 

2,745

 

 

 

 

123,614

 

Unallocated corporate expense

 

(25,417)

 

 

116

 

 

2,512

 

 

325

 

 

 

 

(22,464)

 

Consolidated income from operations

 

93,640

 

 

1,928

 

 

2,512

 

 

3,070

 

 

 

 

101,150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

385

 

 

 

 

 

 

 

 

 

 

385

 

Other (income) expense

 

(1,542)

 

 

 

 

 

 

 

 

1,881

 

 

339

 

Income before income taxes

 

94,797

 

 

1,928

 

 

2,512

 

 

3,070

 

 

(1,881)

 

 

100,426

 

Provision for income taxes

 

21,686

 

 

455

 

 

 

 

725

 

 

(469)

 

 

22,397

 

Net income

 

$

73,111

 

 

$

1,473

 

 

$

2,512

 

 

$

2,345

 

 

$

(1,412)

 

 

$

78,029

 

Net earnings per share – diluted

 

$

2.22

 

 

$

0.04

 

 

$

0.08

 

 

$

0.07

 

 

$

(0.04)

 

 

$

2.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

9.0

%

 

0.2

%

 

%

 

0.8

%

 

%

 

10.0

%

Residential Products

 

18.8

%

 

0.2

%

 

%

 

%

 

%

 

19.0

%

Industrial & Infrastructure Products

 

10.7

%

 

0.4

%

 

%

 

%

 

%

 

11.1

%

Segments Margin

 

13.8

%

 

0.2

%

 

%

 

0.3

%

 

%

 

14.3

%

Consolidated

 

10.8

%

 

0.2

%

 

0.3

%

 

0.4

%

 

%

 

11.7

%

GIBRALTAR INDUSTRIES, INC.
Reconciliation of Adjusted Financial Measures
(in thousands, except per share data)
(unaudited)

 

 

 

Nine Months Ended
September 30, 2019

 

 

As
Reported
In GAAP
Statements

 

Restructuring
Charges

 

Senior
Leadership
Transition
Costs

 

Acquisition
Related
Items

 

Debt
Repayment

 

Adjusted
Financial
Measures

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

$

261,612

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

261,612

 

Residential Products

 

360,417

 

 

 

 

 

 

 

 

 

 

360,417

 

Industrial & Infrastructure Products

 

168,096

 

 

 

 

 

 

 

 

 

 

168,096

 

Less Inter-Segment Sales

 

(817)

 

 

 

 

 

 

 

 

 

 

(817)

 

 

 

167,279

 

 

 

 

 

 

 

 

 

 

167,279

 

Consolidated sales

 

789,308

 

 

 

 

 

 

 

 

 

 

789,308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

30,914

 

 

36

 

 

 

 

1,166

 

 

 

 

32,116

 

Residential Products

 

49,880

 

 

3,785

 

 

78

 

 

 

 

 

 

53,743

 

Industrial & Infrastructure Products

 

13,660

 

 

1,598

 

 

 

 

 

 

 

 

15,258

 

Segments income

 

94,454

 

 

5,419

 

 

78

 

 

1,166

 

 

 

 

101,117

 

Unallocated corporate expense

 

(25,862)

 

 

919

 

 

6,973

 

 

474

 

 

 

 

(17,496)

 

Consolidated income from operations

 

68,592

 

 

6,338

 

 

7,051

 

 

1,640

 

 

 

 

83,621

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

2,297

 

 

 

 

 

 

 

 

(1,079)

 

 

1,218

 

Other expense

 

660

 

 

 

 

 

 

 

 

 

 

660

 

Income before income taxes

 

65,635

 

 

6,338

 

 

7,051

 

 

1,640

 

 

1,079

 

 

81,743

 

Provision for income taxes

 

14,901

 

 

1,616

 

 

481

 

 

418

 

 

269

 

 

17,685

 

Net income

 

$

50,734

 

 

$

4,722

 

 

$

6,570

 

 

$

1,222

 

 

$

810

 

 

$

64,058

 

Net earnings per share - diluted

 

$

1.55

 

 

$

0.15

 

 

$

0.20

 

 

$

0.04

 

 

$

0.02

 

 

$

1.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

 

 

 

 

 

 

 

 

 

 

Renewable Energy & Conservation

 

11.8

%

 

%

 

%

 

0.4

%

 

%

 

12.3

%

Residential Products

 

13.8

%

 

1.1

%

 

%

 

%

 

%

 

14.9

%

Industrial & Infrastructure Products

 

8.2

%

 

1.0

%

 

%

 

%

 

%

 

9.1

%

Segments margin

 

12.0

%

 

0.7

%

 

%

 

0.1

%

 

%

 

12.8

%

Consolidated

 

8.7

%

 

0.8

%

 

0.9

%

 

0.2

%

 

%

 

10.6

%