Business Wire | Aug 3, 2021 07:30AM EDT

Gibraltar Announces Second Quarter 2021 Financial Results

Aug. 03, 2021

BUFFALO, N.Y.--(BUSINESS WIRE)--Aug. 03, 2021--Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the renewable energy, residential, agtech and infrastructure markets, today reported its financial results for the three-month period ended June 30, 2021.

"In the midst of a dynamic and inflationary market environment, we delivered solid performance with revenue growth of 37%, adjusted operating income growth of 8%, adjusted EPS growth of 7%, and order backlog increased 54%, or 32% on a proforma basis, to over $400 million, the highest level in the history of the company," President and Chief Executive Officer Bill Bosway stated. "Material cost inflation continued to accelerate as we exited the first quarter, and labor, freight, and logistics inflation and availability began to surface as we entered the second quarter. Working closely with customers and suppliers starting during fourth quarter 2020 and implementing ongoing pricing and productivity initiatives has helped us manage these dynamics and deliver this quarter's results. Additionally, the integrations of TerraSmart and Sunfig are on track, our Agtech business is recovering as planned, and overall demand is currently in line with expectations."

Second Quarter 2021 Consolidated Results from Continuing Operations

Net sales from continuing operations increased 36.5% to $348.4 million, with organic growth contributing 14.0% and recent acquisitions 22.5%. Organic growth was driven by strong end market demand and participation gains in all four segments.

GAAP earnings increased 7.8% to $26.4 million, or $0.80 per share, and adjusted earnings increased 6.9% to $26.3 million, or $0.80 per share, the result of continued execution across the business segments, the TerraSmart acquisition, and 80/20 productivity initiatives, partially offset by timing and alignment of higher input costs and price increases, supply chain disruptions, and shifts in project timing in the Agtech and Renewables segments. 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.

Below are second quarter 2021 consolidated results from continuing operations:

Three Months Ended June 30,

$Millions, except GAAP AdjustedEPS

2021 2020 % Change 2021 2020 % Change

Net Sales $ 348.4 $ 255.2 36.5 % $ 348.4 $ 255.2 36.5 %

Net Income $ 26.4 $ 24.5 7.8 % $ 26.3 $ 24.6 6.9 %

Diluted EPS $ 0.80 $ 0.74 8.1 % $ 0.80 $ 0.75 6.7 %

Second Quarter Segment Results

Renewables

The headwinds impacting the solar industry in the first quarter, including steel inflation, supply chain challenges with panels, and the safe harbor ITC extension announced in December 2020, continued into the second quarter. Despite this, the Renewable business continued to accelerate, delivering year-over-year revenue growth of 92.5% through the combination of the legacy and TerraSmart businesses and pro forma organic growth of 25%. Growth was driven by strong demand across Gibraltar's broad offering of fixed tilt, tracker, canopy, and eBos product solutions serving the community and commercial and industrial market segments. Order backlog exceeded $218 million at the end of the quarter, up 54% from last year on a proforma basis, its highest level in the company's history. The integration of the legacy and TerraSmart businesses remains on track, and the combination of the two is resonating well in the market.

Adjusted operating income improved 45.2% while adjusted operating margin contracted 380 basis points, the majority of which was anticipated, and related to the integration of TerraSmart. The TerraSmart integration is delivering as expected with adjusted operating margins nearly doubling over the first quarter as demand continued to accelerate and 80/20 productivity initiatives were implemented, and TerraSmart's full-year margin plan remains on track. Of the remaining shortfall, approximately half was related to a one-time tariff credit received in Q2 2020, with the remaining the result of timing and alignment of price actions with input cost inflation and project movement related to supply chain schedule and logistics challenges.

For the second quarter, the Renewables segment reported:

Three Months Ended June 30,

$Millions GAAP Adjusted

2021 2020 % Change 2021 2020 % Change

Net Sales $ 107.8 $ 56.0 92.5 % $ 107.8 $ 56.0 92.5 %

Operating $ 9.5 $ 8.4 13.1 % $ 12.2 $ 8.4 45.2 %Income

Operating 8.8 % 15.1 % (630) 11.3 % 15.1 % (380)Margin bps bps

Residential

Revenue increased 17.7% with strong organic growth of 12% driven by increased pricing and volume, despite supply chain dynamics related to material, labor and logistics availability; Architectural Mailboxes, acquired in 2020, contributed 6% of the quarter's growth and integration remains on track.

The business delivered adjusted operating margin of 16.6%, a decrease versus last year, driven by the impact of accelerated inflation, material and labor availability, and the timing and alignment of price actions with input costs. Gibraltar has implemented multiple price increases, and will continue to do so until inflation subsides. In accordance with customer supply agreements, each price action will take time to align with accelerating inflation, with operating margin historically recovering within a one or two quarter period. In the near term, management will continue to maximize operating profit dollars with focus on execution and 80/20 productivity initiatives.

For the second quarter, the Residential segment reported:

Three Months Ended June 30,

$Millions GAAP Adjusted

2021 2020 % 2021 2020 % Change Change

Net Sales $ 164.2 $ 139.5 17.7 % $ 164.2 $ 139.5 17.7 %

Operating $ 27.2 $ 28.0 (2.9 %) $ 27.2 $ 28.2 (3.5 %)Income

Operating 16.5 % 20.0 % (350) 16.6 % 20.2 % (360)Margin bps bps

Agtech

Revenue increased 27.0% with solid activity across the produce, commercial, car wash, retail, and processing equipment segments. Although demand continued to improve, the business experienced project movement from the second quarter into the second half of 2021 as schedules have been impacted by permit delays, rescoping of projects, and supply chain disruptions. Order backlog experienced a slight and temporary contraction during the quarter due to rescoping of projects and the impact of supply chain disruptions. July customer order activity is accelerating backlog momentum, and the segment remains on track with expectations for the year.

Adjusted operating income was flat year-over-year and adjusted operating margin expanded 180 basis points on a sequential basis as the processing equipment business continued to improve along with continuing benefits of integration in the produce business. Adjusted operating margin contracted year-over-year due to business mix, the movement of certain abovementioned projects into the second half of the year, higher input costs and logistics challenges. These temporary headwinds were partially offset by improvements in legacy greenhouse structures, cannabis greenhouse structures, and cannabis and hemp processing equipment businesses.

For the second quarter, the Agtech segment reported:

Three Months Ended June 30,

$Millions GAAP Adjusted

2021 2020 % 2021 2020 % Change Change

Net Sales $ 53.7 $ 42.3 27.0 % $ 53.7 $ 42.3 27.0 %

Operating $ 1.0 $ 0.8 25.0 % $ 2.3 $ 2.3 -- Income

Operating 1.8 % 1.8 % -- bps 4.2 % 5.5 % (130) bpsMargin

Infrastructure

Revenue increased 29.7% as demand for fabricated and non-fabricated products increased as State D.O.T. project funding improved with the strengthening of the U.S. economy. Order backlog increased 11% to more than $46 million during the quarter indicating growing strength across the business.

Improvement in adjusted operating margin was driven by mix of higher-margin non-fabricated products and solutions, strong execution on higher volumes, and continued investment in 80/20 productivity initiatives.

For the second quarter, the Infrastructure segment reported:

Three Months Ended June 30,

$Millions GAAP Adjusted

2021 2020 % Change 2021 2020 % Change

Net Sales $ 22.7 $ 17.5 29.7 % $ 22.7 $ 17.5 29.7 %

Operating $ 4.2 $ 2.8 50.0 % $ 4.2 $ 2.8 50.0 %Income

Operating 18.4 % 16.0 % 240 bps 18.4 % 16.0 % 240 bpsMargin

Business Outlook

"We expect today's business environment, which has been very dynamic since the beginning of January, to remain so throughout the second half of 2021. We will continue to manage inflation, minimize supply chain disruptions, operate in a tight labor market, and continue with our COVID operating protocols. We are currently positioned well with solid end market demand, record order backlog, a very healthy balance sheet, and strong focus on daily execution, acquisition integrations, and further strengthening our organization and operating systems," commented Mr. Bosway. "We remain confident in our existing full year 2021 guidance for revenue and earnings. We base this on our performance to date in 2021, which is consistent with historical patterns, and our current outlook and initiatives for improving profitability across each business. Consolidated revenue is expected to range between $1.3 billion and $1.35 billion. GAAP EPS from continuing operations is expected to range between $2.78 and $2.95 compared to $2.53 in 2020, and adjusted EPS from continuing operations is expected to range between $3.30 and $3.47 compared to $2.73 in 2020."

Second Quarter 2021 Conference Call Details

Gibraltar will host a conference call today starting at 9:00 a.m. ET to review its results for the second quarter of 2021. 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 (877) 407-3088 or (201) 389-0927. For interested individuals unable to join the live conference call, a webcast replay will be available on the Company's website for one year.

About Gibraltar

Gibraltar Industries is a leading manufacturer and provider of products and services for the renewable energy, residential, agtech 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, 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 INCOME

(in thousands, except per share data)

(unaudited)

Three Months Ended Six Months Ended June 30, June 30,

2021 2020 2021 2020

Net Sales $ 348,389 $ 255,184 $ 635,981 $ 470,585

Cost of sales 267,458 189,623 495,032 355,163

Gross profit 80,931 65,561 140,949 115,422

Selling, general,and 49,522 34,813 96,725 71,897 administrativeexpense

Income from 31,409 30,748 44,224 43,525 operations

Interest expense 245 222 689 266

Other income (4,666 ) (1,892 ) (4,351 ) (1,374 )

Income before 35,830 32,418 47,886 44,633 taxes

Provision for 9,457 7,961 11,017 10,274 income taxes

Income fromcontinuing 26,373 24,457 36,869 34,359 operations

Discontinued operations:

(Loss) income (502 ) 3,746 2,068 6,576 before taxes

(Benefit of)provision for (78 ) 911 226 1,584 income taxes

(Loss) incomefrom discontinued (424 ) 2,835 1,842 4,992 operations

Net income $ 25,949 $ 27,292 $ 38,711 $ 39,351

Net earnings per share - Basic:

Income fromcontinuing $ 0.80 $ 0.75 $ 1.12 $ 1.05 operations

(Loss) incomefrom discontinued (0.01 ) 0.09 0.06 0.16 operations

Net income $ 0.79 $ 0.84 $ 1.18 $ 1.21

Weighted averageshares 32,790 32,605 32,791 32,596 outstanding --Basic

Net earnings per share - Diluted:

Income fromcontinuing $ 0.80 $ 0.74 $ 1.11 $ 1.05 operations

(Loss) incomefrom discontinued (0.01 ) 0.09 0.06 0.15 operations

Net income $ 0.79 $ 0.83 $ 1.17 $ 1.20

Weighted averageshares 33,056 32,860 33,071 32,868 outstanding --Diluted

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

June 30, 2021

December 31, 2020

(unaudited)

Assets

Current assets:

Cash and cash equivalents

$

16,963

$

32,054

Accounts receivable, net of allowance of $5,294 and $3,529

225,315

197,990

Inventories, net

133,625

98,307

Prepaid expenses and other current assets

23,641

19,671

Assets of discontinued operations

-

77,438

Total current assets

399,544

425,460

Property, plant, and equipment, net

95,837

89,562

Operating lease assets

21,651

25,229

Goodwill

508,857

514,279

Acquired intangibles

159,734

156,365

Other assets

510

1,599

$

1,186,133

$

1,212,494

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$

168,917

$

134,738

Accrued expenses

68,677

83,505

Billings in excess of cost

49,215

34,702

Liabilities of discontinued operations

-

49,295

Total current liabilities

286,809

302,240

Long-term debt

32,309

85,636

Deferred income taxes

37,555

39,057

Non-current operating lease liabilities

14,391

17,730

Other non-current liabilities

27,461

24,026

Stockholders' equity:

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

-

-

Common stock, $0.01 par value; 100,000 and 50,000 shares authorized at June 30, 2021 and December 31, 2020, respectively; 33,718 shares and 33,568 shares issued and outstanding in 2021 and 2020

337

336

Additional paid-in capital

310,728

304,870

Retained earnings

508,654

469,943

Accumulated other comprehensive income (loss)

1,552

(2,461

)

Cost of 1,083 and 1,028 common shares held in treasury in 2021 and 2020

(33,663

)

(28,883

)

Total stockholders' equity

787,608

743,805

$

1,186,133

$

1,212,494

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

June 30, December 31, 2021 2020

(unaudited)

Assets

Current assets:

Cash and cash equivalents $ 16,963 $ 32,054

Accounts receivable, net of allowance of 225,315 197,990 $5,294 and $3,529

Inventories, net 133,625 98,307

Prepaid expenses and other current assets 23,641 19,671

Assets of discontinued operations - 77,438

Total current assets 399,544 425,460

Property, plant, and equipment, net 95,837 89,562

Operating lease assets 21,651 25,229

Goodwill 508,857 514,279

Acquired intangibles 159,734 156,365

Other assets 510 1,599

$ 1,186,133 $ 1,212,494

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ 168,917 $ 134,738

Accrued expenses 68,677 83,505

Billings in excess of cost 49,215 34,702

Liabilities of discontinued operations - 49,295

Total current liabilities 286,809 302,240

Long-term debt 32,309 85,636

Deferred income taxes 37,555 39,057

Non-current operating lease liabilities 14,391 17,730

Other non-current liabilities 27,461 24,026

Stockholders' equity:

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

Common stock, $0.01 par value; 100,000 and50,000 shares authorized at June 30, 2021 andDecember 31, 2020, respectively; 33,718 337 336 shares and 33,568 shares issued andoutstanding in 2021 and 2020

Additional paid-in capital 310,728 304,870

Retained earnings 508,654 469,943

Accumulated other comprehensive income (loss) 1,552 (2,461 )

Cost of 1,083 and 1,028 common shares held in (33,663 ) (28,883 ) treasury in 2021 and 2020

Total stockholders' equity 787,608 743,805

$ 1,186,133 $ 1,212,494

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

Six Months Ended June 30,

2021

2020

Cash Flows from Operating Activities

Net income

$

38,711

$

39,351

Income from discontinued operations

1,842

4,992

Income from continuing operations

36,869

34,359

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation and amortization

16,014

9,942

Stock compensation expense

4,935

4,171

Gain on sale of business

-

(1,881

)

Exit activity costs, non-cash

1,193

346

Benefit of deferred income taxes

(36

)

(195

)

Other, net

349

429

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

Accounts receivable

(29,150

)

(26,289

)

Inventories

(42,686

)

3,289

Other current assets and other assets

(611

)

1,893

Accounts payable

35,174

(989

)

Accrued expenses and other non-current liabilities

(9,274

)

(36,042

)

Net cash provided by (used in) operating activities of continuing operations

12,777

(10,967

)

Net cash (used in) provided by operating activities of discontinued operations

(2,002

)

3,712

Net cash provided by (used in) operating activities

10,775

(7,255

)

Cash Flows from Investing Activities

Acquisitions, net of cash acquired

(2

)

(54,385

)

Net proceeds from sale of property and equipment

-

59

Purchases of property, plant, and equipment

(9,474

)

(4,178

)

Net proceeds from sale of business

39,991

704

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

30,515

(57,800

)

Net cash used in investing activities of discontinued operations

(176

)

(1,053

)

Net cash provided by (used in) investing activities

30,339

(58,853

)

Cash Flows from Financing Activities

Proceeds from long-term debt

31,200

-

Long-term debt payments

(83,636

)

-

Purchase of treasury stock at market prices

(4,780

)

(4,462

)

Net proceeds from issuance of common stock

924

78

Net cash used in financing activities

(56,292

)

(4,384

)

Effect of exchange rate changes on cash

87

(12

)

Net decrease in cash and cash equivalents

(15,091

)

(70,504

)

Cash and cash equivalents at beginning of year

32,054

191,363

Cash and cash equivalents at end of period

$

16,963

$

120,859

GIBRALTAR INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

Six Months Ended June 30,

2021 2020

Cash Flows from Operating Activities

Net income $ 38,711 $ 39,351

Income from discontinued operations 1,842 4,992

Income from continuing operations 36,869 34,359

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation and amortization 16,014 9,942

Stock compensation expense 4,935 4,171

Gain on sale of business - (1,881 )

Exit activity costs, non-cash 1,193 346

Benefit of deferred income taxes (36 ) (195 )

Other, net 349 429

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

Accounts receivable (29,150 ) (26,289 )

Inventories (42,686 ) 3,289

Other current assets and other assets (611 ) 1,893

Accounts payable 35,174 (989 )

Accrued expenses and other non-current liabilities (9,274 ) (36,042 )

Net cash provided by (used in) operating 12,777 (10,967 ) activities of continuing operations

Net cash (used in) provided by operating (2,002 ) 3,712 activities of discontinued operations

Net cash provided by (used in) operating 10,775 (7,255 ) activities

Cash Flows from Investing Activities

Acquisitions, net of cash acquired (2 ) (54,385 )

Net proceeds from sale of property and equipment - 59

Purchases of property, plant, and equipment (9,474 ) (4,178 )

Net proceeds from sale of business 39,991 704

Net cash provided by (used in) investing 30,515 (57,800 ) activities of continuing operations

Net cash used in investing activities of (176 ) (1,053 ) discontinued operations

Net cash provided by (used in) investing 30,339 (58,853 ) activities

Cash Flows from Financing Activities

Proceeds from long-term debt 31,200 -

Long-term debt payments (83,636 ) -

Purchase of treasury stock at market prices (4,780 ) (4,462 )

Net proceeds from issuance of common stock 924 78

Net cash used in financing activities (56,292 ) (4,384 )

Effect of exchange rate changes on cash 87 (12 )

Net decrease in cash and cash equivalents (15,091 ) (70,504 )

Cash and cash equivalents at beginning of year 32,054 191,363

Cash and cash equivalents at end of period $ 16,963 $ 120,859

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

Three Months Ended June 30,2021

As Reported In GAAP Statements

Restructuring Charges

Senior Leadership Transition Costs

Acquisition Related Items

Adjusted Financial Measures

Net Sales

Renewables

$

107,751

-

-

-

$

107,751

Residential

164,209

-

-

-

164,209

Agtech

53,696

-

-

-

53,696

Infrastructure

22,733

-

-

-

22,733

Consolidated sales

348,389

-

-

-

348,389

Income from operations

Renewables

9,510

786

-

1,858

12,154

Residential

27,155

29

-

-

27,184

Agtech

977

1,287

-

-

2,264

Infrastructure

4,186

-

-

-

4,186

Segments Income

41,828

2,102

-

1,858

45,788

Unallocated corporate expense

(10,419

)

59

18

32

(10,310

)

Consolidated income from operations

31,409

2,161

18

1,890

35,478

Interest expense

245

-

-

-

245

Other (income) expense

(4,666

)

-

-

4,747

81

Income before income taxes

35,830

2,161

18

(2,857

)

35,152

Provision for income taxes

9,457

507

5

(1,149

)

8,820

Income from continuing operations

$

26,373

$

1,654

$

13

$

(1,708

)

$

26,332

Income from continuing operations per share - diluted

$

0.80

$

0.05

$

-

$

(0.05

)

$

0.80

Operating margin

Renewables

8.8

%

0.7

%

-

%

1.7

%

11.3

%

Residential

16.5

%

-

%

-

%

-

%

16.6

%

Agtech

1.8

%

2.4

%

-

%

-

%

4.2

%

Infrastructure

18.4

%

-

%

-

%

-

%

18.4

%

Segments Margin

12.0

%

0.6

%

-

%

0.5

%

13.1

%

Consolidated

9.0

%

0.6

%

-

%

0.5

%

10.2

%

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

Three Months Ended June 30,2021

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

Net Sales

Renewables $ 107,751 - - - $ 107,751

Residential 164,209 - - - 164,209

Agtech 53,696 - - - 53,696

Infrastructure 22,733 - - - 22,733

Consolidated 348,389 - - - 348,389 sales



Income from operations

Renewables 9,510 786 - 1,858 12,154

Residential 27,155 29 - - 27,184

Agtech 977 1,287 - - 2,264

Infrastructure 4,186 - - - 4,186

Segments 41,828 2,102 - 1,858 45,788 Income

Unallocatedcorporate (10,419 ) 59 18 32 (10,310 ) expense

Consolidatedincome from 31,409 2,161 18 1,890 35,478 operations



Interest 245 - - - 245 expense

Other (income) (4,666 ) - - 4,747 81 expense

Income before 35,830 2,161 18 (2,857 ) 35,152 income taxes

Provision for 9,457 507 5 (1,149 ) 8,820 income taxes

Income fromcontinuing $ 26,373 $ 1,654 $ 13 $ (1,708 ) $ 26,332 operations

Income fromcontinuingoperations per $ 0.80 $ 0.05 $ - $ (0.05 ) $ 0.80 share -diluted



Operating margin

Renewables 8.8 % 0.7 % - % 1.7 % 11.3 %

Residential 16.5 % - % - % - % 16.6 %

Agtech 1.8 % 2.4 % - % - % 4.2 %

Infrastructure 18.4 % - % - % - % 18.4 %

Segments 12.0 % 0.6 % - % 0.5 % 13.1 %Margin

Consolidated 9.0 % 0.6 % - % 0.5 % 10.2 %

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

Three Months Ended June 30, 2020

As Reported In GAAP Statements

Restructuring & Senior Leadership Transition Costs

Acquisition Costs

Gain on Sale of Business

Adjusted Financial Measures

Net Sales

Renewables

$

55,950

$

-

$

-

$

-

$

55,950

Residential

139,472

-

-

-

139,472

Agtech

42,309

-

-

-

42,309

Infrastructure

17,453

-

-

-

17,453

Consolidated sales

255,184

-

-

-

255,184

Income from operations

Renewables

8,422

-

-

-

8,422

Residential

27,964

263

-

-

28,227

Agtech

766

388

1,172

-

2,326

Infrastructure

2,801

-

-

-

2,801

Segments Income

39,953

651

1,172

-

41,776

Unallocated corporate expense

(9,205

)

161

50

-

(8,994

)

Consolidated income from operations

30,748

812

1,222

-

32,782

Interest expense

222

-

-

-

222

Other income

(1,892

)

-

-

1,881

(11

)

Income before income taxes

32,418

812

1,222

(1,881

)

32,571

Provision for income taxes

7,961

170

274

(469

)

7,936

Income from continuing operations

$

24,457

$

642

$

948

$

(1,412

)

$

24,635

Income from continuing operations per share - diluted

$

0.74

$

0.02

$

0.03

$

(0.04

)

$

0.75

Operating margin

Renewables

15.1

%

-

%

-

%

-

%

15.1

%

Residential

20.0

%

0.2

%

-

%

-

%

20.2

%

Agtech

1.8

%

0.9

%

2.8

%

-

%

5.5

%

Infrastructure

16.0

%

-

%

-

%

-

%

16.0

%

Segments Margin

15.7

%

0.3

%

0.5

%

-

%

16.4

%

Consolidated

12.0

%

0.3

%

0.5

%

-

%

12.8

%

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

Three Months Ended June 30, 2020

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

Net Sales

Renewables $ 55,950 $ - $ - $ - $ 55,950

Residential 139,472 - - - 139,472

Agtech 42,309 - - - 42,309

Infrastructure 17,453 - - - 17,453

Consolidated 255,184 - - - 255,184 sales



Income from operations

Renewables 8,422 - - - 8,422

Residential 27,964 263 - - 28,227

Agtech 766 388 1,172 - 2,326

Infrastructure 2,801 - - - 2,801

Segments 39,953 651 1,172 - 41,776 Income

Unallocatedcorporate (9,205 ) 161 50 - (8,994 ) expense

Consolidatedincome from 30,748 812 1,222 - 32,782 operations



Interest 222 - - - 222 expense

Other income (1,892 ) - - 1,881 (11 )

Income before 32,418 812 1,222 (1,881 ) 32,571 income taxes

Provision for 7,961 170 274 (469 ) 7,936 income taxes

Income fromcontinuing $ 24,457 $ 642 $ 948 $ (1,412 ) $ 24,635 operations

Income fromcontinuingoperations per $ 0.74 $ 0.02 $ 0.03 $ (0.04 ) $ 0.75 share -diluted



Operating margin

Renewables 15.1 % - % - % - % 15.1 %

Residential 20.0 % 0.2 % - % - % 20.2 %

Agtech 1.8 % 0.9 % 2.8 % - % 5.5 %

Infrastructure 16.0 % - % - % - % 16.0 %

Segments 15.7 % 0.3 % 0.5 % - % 16.4 %Margin

Consolidated 12.0 % 0.3 % 0.5 % - % 12.8 %

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

Six Months Ended June 30, 2021

As Reported In GAAP Statements

Restructuring Charges

Senior Leadership Transition Costs

Acquisition Related Items

Adjusted Financial Measures

Net Sales

Renewables

$

193,263

-

-

-

$

193,263

Residential

304,426

-

-

-

304,426

Agtech

100,435

-

-

-

100,435

Infrastructure

37,857

-

-

-

37,857

Consolidated sales

635,981

-

-

-

635,981

Income from operations

Renewables

8,989

5,757

-

3,758

18,504

Residential

50,089

94

-

-

50,183

Agtech

1,906

1,491

-

-

3,397

Infrastructure

6,223

-

-

-

6,223

Segments Income

67,207

7,342

-

3,758

78,307

Unallocated corporate expense

(22,983

)

59

1,307

915

(20,702

)

Consolidated income from operations

44,224

7,401

1,307

4,673

57,605

Interest expense

689

-

-

-

689

Other (income) expense

(4,351

)

-

-

4,747

396

Income before income taxes

47,886

7,401

1,307

(74

)

56,520

Provision for income taxes

11,017

1,880

311

(442

)

12,766

Income from continuing operations

$

36,869

$

5,521

$

996

$

368

$

43,754

Income from continuing operations per share - diluted

$

1.11

$

0.17

$

0.03

$

0.01

$

1.32

Operating margin

Renewables

4.7

%

3.0

%

-

%

1.9

%

9.6

%

Residential

16.5

%

-

%

-

%

-

%

16.5

%

Agtech

1.9

%

1.5

%

-

%

-

%

3.4

%

Infrastructure

16.4

%

-

%

-

%

-

%

16.4

%

Segments Margin

10.6

%

1.2

%

-

%

0.6

%

12.3

%

Consolidated

7.0

%

1.2

%

0.2

%

0.7

%

9.1

%

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

Six Months Ended June 30, 2021

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

Net Sales

Renewables $ 193,263 - - - $ 193,263

Residential 304,426 - - - 304,426

Agtech 100,435 - - - 100,435

Infrastructure 37,857 - - - 37,857

Consolidated 635,981 - - - 635,981 sales



Income from operations

Renewables 8,989 5,757 - 3,758 18,504

Residential 50,089 94 - - 50,183

Agtech 1,906 1,491 - - 3,397

Infrastructure 6,223 - - - 6,223

Segments 67,207 7,342 - 3,758 78,307 Income

Unallocatedcorporate (22,983 ) 59 1,307 915 (20,702 ) expense

Consolidatedincome from 44,224 7,401 1,307 4,673 57,605 operations



Interest 689 - - - 689 expense

Other (income) (4,351 ) - - 4,747 396 expense

Income before 47,886 7,401 1,307 (74 ) 56,520 income taxes

Provision for 11,017 1,880 311 (442 ) 12,766 income taxes

Income fromcontinuing $ 36,869 $ 5,521 $ 996 $ 368 $ 43,754 operations

Income fromcontinuingoperations per $ 1.11 $ 0.17 $ 0.03 $ 0.01 $ 1.32 share -diluted



Operating margin

Renewables 4.7 % 3.0 % - % 1.9 % 9.6 %

Residential 16.5 % - % - % - % 16.5 %

Agtech 1.9 % 1.5 % - % - % 3.4 %

Infrastructure 16.4 % - % - % - % 16.4 %

Segments 10.6 % 1.2 % - % 0.6 % 12.3 %Margin

Consolidated 7.0 % 1.2 % 0.2 % 0.7 % 9.1 %

GIBRALTAR INDUSTRIES, INC.

Reconciliation of Adjusted Financial Measures

(in thousands, except per share data)

(unaudited)

Six Months Ended June 30, 2020

As Reported In GAAP Statements

Restructuring & Senior Leadership Transition Costs

Acquisition Costs

Gain on Sale of Business

Adjusted Financial Measures

Net Sales

Renewables

$

103,213

$

-

$

-

$

-

$

103,213

Residential

242,891

-

-

-

242,891

Agtech

91,543

-

-

-

91,543

Infrastructure

32,938

-

-

-

32,938

Consolidated sales

470,585

-

-

-

470,585

Income from operations

Renewables

12,781

18

-

-

12,799

Residential

41,689

484

-

-

42,173

Agtech

2,106

388

2,173

-

4,667

Infrastructure

4,377

-

-

-

4,377

Segments Income

60,953

890

2,173

-

64,016

Unallocated corporate expense

(17,428

)

2,441

309

-

(14,678

)

Consolidated income from operations

43,525

3,331

2,482

-

49,338

Interest expense

266

-

-

-

266

Other (income) expense

(1,374

)

-

-

1,881

507

Income before income taxes

44,633

3,331

2,482

(1,881

)

48,565

Provision for income taxes

10,274

229

590

(469

)

10,624

Income from continuing operations

$

34,359

$

3,102

$

1,892

$

(1,412

)

$

37,941

Income from continuing operations per share - diluted

$

1.05

$

0.09

$

0.05

$

(0.04

)

$

1.15

Operating margin

Renewables

12.4

%

-

%

-

%

-

%

12.4

%

Residential

17.2

%

0.2

%

-

%

-

%

17.4

%

Agtech

2.3

%

0.4

%

2.4

%

-

%

5.1

%

Infrastructure

13.3

%

-

%

-

%

-

%

13.3

%

Segments Margin

13.0

%

0.2

%

0.5

%

-

%

13.6

%

Consolidated

9.2

%

0.7

%

0.5

%

-

%

10.5

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210803005278/en/

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