Business Wire | Oct 29, 2020 07:30AM EDT

Gibraltar Announces Third-Quarter 2020 Financial Results

Oct. 29, 2020

BUFFALO, N.Y.--(BUSINESS WIRE)--Oct. 29, 2020--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, GAAP Adjustedexcept EPS

2020 2019 % 2020 2019 % Change 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 GAAP Adjustedmillions

2020 2019 % 2020 2019 % Change Change

Net Sales $ 128.3 $ 116.8 9.8 % $ 128.3 $ 116.8 9.8 %

Operating Margin 11.1 % 16.8 % (570) 11.6 % 17.8 % (620) bps 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 GAAP Adjustedmillions

2020 2019 % 2020 2019 % Change 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 Nine Months Ended September 30, 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 41,584 45,158 120,448 115,444 administrative expense

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 9,828 6,843 21,686 14,901 taxes

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 BALANCE SHEETS(in thousands, except per share data)

September 30, December 2020 31, 2019

(unaudited)

Assets

Current assets:

Cash and cash equivalents $ 179,816 $ 191,363

Accounts receivable, net of allowance of $3,319 203,488 147,515 and $6,330

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 50,000shares; 33,519 shares and 33,192 shares issued and 335 332 outstanding in 2020 and 2019

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 (28,635) (22,227) treasury in 2020 and 2019

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.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 30,2020

As Senior Acquisition Adjusted Reported Restructuring Leadership Related Financial In GAAP Charges Transition Items Measures Statements Costs

Net Sales

RenewableEnergy & $ 128,258 $ - $ - $ - $ 128,258 Conservation

Residential 151,718 - - - 151,718 Products

Industrial &Infrastructure 49,767 - - - 49,767 Products

LessInter-Segment (78) - - - (78) Sales

49,689 - - - 49,689

Consolidated 329,665 - - - 329,665 sales



Income from operations

RenewableEnergy & 14,195 172 - 572 14,939 Conservation

Residential 32,454 186 - - 32,640 Products

Industrial &Infrastructure 5,199 252 - - 5,451 Products

Segments 51,848 610 - 572 53,030 Income

Unallocatedcorporate (7,989) 17 170 16 (7,786) expense

Consolidatedincome from 43,859 627 170 588 45,244 operations



Interest 218 - - - 218 expense

Other expense 53 - - - 53

Income before 43,588 627 170 588 44,973 income taxes

Provision for 9,828 146 - 135 10,109 income taxes

Net income $ 33,760 $ 481 $ 170 $ 453 $ 34,864

Net earningsper share - $ 1.02 $ 0.02 $ 0.01 $ 0.01 $ 1.06 diluted



Operating margin

RenewableEnergy & 11.1 % 0.1 % - % 0.4 % 11.6 %Conservation

Residential 21.4 % 0.1 % - % - % 21.5 %Products

Industrial &Infrastructure 10.5 % 0.5 % - % - % 11.0 %Products

Segments 15.7 % 0.2 % - % 0.2 % 16.1 %Margin

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)

Three Months Ended September 30, 2019

As Senior Acquisition Adjusted Reported Restructuring Leadership Related Financial In GAAP Charges Transition Items Measures Statements Costs

Net Sales

RenewableEnergy & $ 116,771 $ - $ - $ - $ 116,771Conservation

Residential 126,275 - - - 126,275Products

Industrial &Infrastructure 56,361 - - - 56,361Products

LessInter-Segment (171) - - - (171) Sales

56,190 - - - 56,190

Consolidated 299,236 - - - 299,236sales



Income from operations

RenewableEnergy & 19,633 37 - 1,166 20,836Conservation

Residential 17,012 3,415 - - 20,427Products

Industrial &Infrastructure 5,462 285 - - 5,747Products

Segments 42,107 3,737 - 1,166 47,010 income

Unallocatedcorporate (10,687) 246 2,708 470 (7,263) expense

Consolidatedincome from 31,420 3,983 2,708 1,636 39,747 operations



Interest 17 - - - 17expense

Other expense 84 - - - 84

Income before 31,319 3,983 2,708 1,636 39,646 income taxes

Provision for 6,843 1,030 161 417 8,451income taxes

Net income $ 24,476 $ 2,953 $ 2,547 $ 1,219 $ 31,195

Net earningsper share - $ 0.75 $ 0.09 $ 0.08 $ 0.03 $ 0.95 diluted



Operating margin

RenewableEnergy & 16.8 % - % - % 1.0 % 17.8 %Conservation

Residential 13.5 % 2.7 % - % - % 16.2 %Products

Industrial &Infrastructure 9.7 % 0.5 % - % - % 10.2 %Products

Segments 14.1 % 1.2 % - % 0.4 % 15.7 %margin

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, 2020

As Senior Acquisition Gain on Adjusted Reported Restructuring Leadership Related Sale of Financial In GAAP Charges Transition Items Business Measures Statements Costs

Net Sales

RenewableEnergy & $ 323,014 $ - $ - $ - $ - $ 323,014 Conservation

Residential 394,609 - - - - 394,609 Products

Industrial &Infrastructure 147,831 - - - - 147,831 Products

LessInter-Segment (536) - - - - (536) Sales

147,295 - - - - 147,295

Consolidated 864,918 - - - - 864,918 sales



Income from operations

RenewableEnergy & 29,082 578 - 2,745 - 32,405 Conservation

Residential 74,143 670 - - - 74,813 Products

Industrial &Infrastructure 15,832 564 - - - 16,396 Products

Segments 119,057 1,812 - 2,745 - 123,614 Income

Unallocatedcorporate (25,417) 116 2,512 325 - (22,464) expense

Consolidatedincome from 93,640 1,928 2,512 3,070 - 101,150 operations



Interest 385 - - - - 385 expense

Other (income) (1,542) - - - 1,881 339 expense

Income before 94,797 1,928 2,512 3,070 (1,881) 100,426 income taxes

Provision for 21,686 455 - 725 (469) 22,397 income taxes

Net income $ 73,111 $ 1,473 $ 2,512 $ 2,345 $ (1,412) $ 78,029

Net earningsper share - $ 2.22 $ 0.04 $ 0.08 $ 0.07 $ (0.04) $ 2.37 diluted



Operating margin

RenewableEnergy & 9.0 % 0.2 % - % 0.8 % - % 10.0 %Conservation

Residential 18.8 % 0.2 % - % - % - % 19.0 %Products

Industrial &Infrastructure 10.7 % 0.4 % - % - % - % 11.1 %Products

Segments 13.8 % 0.2 % - % 0.3 % - % 14.3 %Margin

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

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20201029005168/en/

CONTACT: LHA Investor Relations Jody Burfening/Carolyn Capaccio (212) 838-3777 rock@lhai.com