Gibraltar Announces Full Year And Fourth Quarter 2020 Financial Results

Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading manufacturer and provider of products and services for the renewable energy, conservation, residential and infrastructure markets, today reported its financial results for the three-month period ended December 31, 2020. Results of TerraSmart, acquired at the end of the day on December 31, 2020, had no impact on operations in 2020 in reported results.

“Overall, we delivered record performance in 2020 while remaining very focused on the health and well-being of our people, operations, customers, and communities. We also worked on the business, executed key initiatives, and generated strong cash flow, enabling material investments to support our long term strategy,” said President and Chief Executive Officer Bill Bosway. “Our fourth quarter performance was solid with revenue increasing 17% and adjusted EPS increasing 4%, and we enter 2021 with a strong backlog of approximately $300 million, up 50%, and a strong balance sheet and cash flow profile to continue driving our key initiatives.”

Fourth Quarter 2020 Consolidated Results from Continuing Operations*

Gibraltar reported the following consolidated results from continuing operations:

		Three Months Ended December 31,
Dollars in millions, except EPS		GAAP						Adjusted
		2020		2019		% Change		2020		2019		% Change
Net Sales		$265.2		$226.0		17.3%		$265.2		$226.0		17.3%
Net Income		$17.6		$15.0		17.3%		$19.5		$18.6		4.8%
Diluted EPS		$0.53		$0.46		15.2%		$0.59		$0.57		3.5%

Fourth quarter 2020 net sales from continuing operations increased 17.3% to $265.2 million, driven by the Residential Products and Renewable Energy & Conservation segments. Of the 17.3% increase, organic growth accounted for 3.6%, and recent acquisitions contributed 13.7%.

GAAP earnings increased 17.3% to $17.6 million, or $0.53 per share, while adjusted earnings increased 4.8% to $19.5 million, or $0.59 per share, the result of organic growth and continued margin expansion in the Residential Products segment, 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.

*Gibraltar has classified the Industrial business as a discontinued operation with fourth quarter 2020 results. Included in fourth quarter 2020 loss from discontinued operations of $26.1 million is a non-cash loss of $29.6 million related to the disposal of this business.

Fourth Quarter Segment Results

Renewable Energy & Conservation

The acquisition of TerraSmart, an important addition to Gibraltar’s renewable energy business, was completed on December 31, 2020. TerraSmart delivered 2020 revenue of $157 million and adjusted EBITDA of $26 million, in line with expectations creating a business with approximately $400M in revenue and operating margin in excess of 12% on a Pro Forma basis as we enter 2021. TerraSmart’s 2020 results did not impact Gibraltar’s Q4 2020 results.

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

		Three Months Ended December 31,
Dollars in millions		GAAP						Adjusted
		2020		2019		% Change		2020		2019		% Change
Net Sales		$124.6		$111.4		11.8%		$124.6		$111.4		11.8%
Operating Margin		9.4%		14.9%		(550) bps		9.7%		15.2%		(550) bps

Segment revenue increased 11.8% driven by growth from acquisitions. Organic revenue slowed during the quarter driven by certain market dynamics. Solar customers experienced unanticipated solar panel supply challenges and building permit delays causing temporary delays to existing projects slated for the fourth quarter. In the conservation business, market conditions for greenhouse structures and processing extraction equipment serving the cannabis and hemp markets remain slow, but the positive momentum in order activity and backlog over the last 60 days supports our previous expectation of these two markets being solid in 2021. Total segment backlog continued to grow, increasing 55%, driven by continued strength in both solar energy and organic produce end markets.

Adjusted operating margin performance was driven by a reduction in solar volume as existing solar projects moved into 2021. We expect the solar panel supply challenges to subside in the first half of 2021. We also experienced a delay to our integration plan of Thermo Energy Systems (TES), which is located in Canada, due to mandated Covid-19 visitation and travel restrictions between the U.S. and Canada. The slower greenhouse structures and processing equipment market for cannabis and hemp impacted volume and productivity initiatives in the quarter creating a margin drag accordingly.

Residential Products

For the fourth quarter, the Residential Products segment reported:

		Three Months Ended December 31,
Dollars in millions		GAAP						Adjusted
		2020		2019		% Change		2020		2019		% Change
Net Sales		$128.2		$101.2		26.7%		$128.2		$101.2		26.7%
Operating Margin		15.8%		13.0%		280 bps		15.9%		13.1%		280 bps

Segment revenue increased 26.7% as the residential market continued to show solid activity, with strong demand and participation gains across all channels. Organic growth was 21.4%, with the acquired Architectural Mailboxes business contributing 5.3% growth. Adjusted operating margin increased with consistent execution on higher volume, and additional 80/20 initiatives.

Infrastructure Products

As noted above, Gibraltar completed the sale of the Industrial business on February 23, 2021. The results of the Industrial business are included as discontinued operations and the assets and liabilities have been reclassified as held-for-sale in fourth quarter 2020 results.

For the fourth quarter, the Infrastructure Products segment reported:

		Three Months Ended December 31,
Dollars in millions		GAAP						Adjusted
		2020		2019		% Change		2020		2019		% Change
Net Sales		$12.4		$13.4		(7.5)%		$12.4		$13.4		(7.5)%
Operating Margin		4.6%		5.8%		(120) bps		6.4%		5.8%		60 bps

Segment revenue decreased 7.5% as the pandemic continued to impact existing and new project schedules, especially in segments like airport runway maintenance, where customers have delayed spending. The increase in adjusted operating margin was driven by strong execution in fabricated product sales which has offset a decline in our higher margin non-fabricated product lines. Infrastructure backlog improved modestly, but bidding activity has approached record levels moving into 2021.

Business Outlook

“We enter 2021 with momentum across our businesses and confidence in our end markets, and we will continue executing our operating playbook, maintaining a safe environment for our people and supporting our customers,” Mr. Bosway concluded. “Although we are dealing with challenging short term market dynamics, I am confident we will deliver full year growth and margin expansion in 2021.”

Gibraltar is providing guidance for revenue and earnings for the full year 2021. Consolidated revenue is expected to range between $1.3 billion and $1.35 billion. GAAP EPS is expected to range between $2.78 and $2.95, compared to $2.53 in 2020, and adjusted EPS is expected to range between $3.30 and $3.47, compared to $2.73 in 2020.

		Gibraltar Industries
Dollars in millions, except EPS				Operating					Income			Net			Diluted Earnings
		Revenue		Income			Margin		Taxes			Income			Per Share
GAAP Measures		$1.3B - $1.35B		$	127-135		9.8-10.0%		$	36-38		$	92-98		$	2.78-2.95
Adjustments					22		1.7%			4			17			0.52
Adjusted Measures				$	149-157		11.5-11.7%		$	40-42		$	109-115		$	3.30-3.47

Fourth 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 fourth 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 [phone] or [phone]. 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, conservation, residential, 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, restatement of previously reported adjusted financial measures to account for discontinued operations 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 December 31,								Twelve Months Ended December 31,
		2020				2019				2020				2019
Net Sales		$	265,201			$	226,034			$	1,032,578			$	898,233
Cost of sales		202,775				168,608				776,235				678,336
Gross profit		62,426				57,426				256,343				219,897
Selling, general, and administrative expense		39,704				37,193				149,153				139,085
Income from operations		22,722				20,233				107,190				80,812
Interest expense (income)		220				(5		)		703				2,323
Other expense (income)		150				192				(1,272		)		408
Income before taxes		22,352				20,046				107,759				78,081
Provision for income taxes		4,754				5,003				24,468				18,153
Income from continuing operations		17,598				15,043				83,291				59,928
Discontinued operations:
(Loss) income before taxes		(25,992		)		(918		)		(16,602		)		6,682
Provision for (benefit of) income taxes		151				(232		)		2,123				1,519
(Loss) income from discontinued operations		(26,143		)		(686		)		(18,725		)		5,163
Net (loss) income		$	(8,545	)		$	14,357			$	64,566			$	65,091
Net earnings per share – Basic:
Income from continuing operations		$	0.54			$	0.46			$	2.55			$	1.85
(Loss) income from discontinued operations		(0.80		)		(0.02		)		(0.57		)		0.16
Net (loss) income		$	(0.26	)		$	0.44			$	1.98			$	2.01
Weighted average shares outstanding -- Basic		32,719				32,505				32,664				32,389
Net earnings per share – Diluted:
Income from continuing operations		$	0.53			$	0.46			$	2.53			$	1.83
(Loss) income from discontinued operations		(0.79		)		(0.02		)		(0.57		)		0.16
Net (loss) income		$	(0.26	)		$	0.44			$	1.96			$	1.99
Weighted average shares outstanding -- Diluted		33,016				32,880				32,918				32,722

GIBRALTAR INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share data)
		December 31, 2020				December 31, 2019
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	32,054			$	191,363
Accounts receivable, net		197,990				133,895
Inventories, net		98,307				61,957
Prepaid expenses and other current assets		19,671				18,959
Assets of discontinued operations		77,438				30,928
Total current assets		425,460				437,102
Property, plant, and equipment, net		89,562				78,152
Operating lease assets		25,229				21,201
Goodwill		514,279				307,355
Acquired intangibles		156,365				76,734
Other assets		1,599				1,980
Assets of discontinued operations		—				61,926
		$	1,212,494			$	984,450
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable		$	134,738			$	72,628
Accrued expenses		83,505				86,597
Billings in excess of cost		34,702				47,598
Liabilities of discontinued operations		49,295				22,374
Total current liabilities		302,240				229,197
Long-term debt		85,636				—
Deferred income taxes		39,057				35,404
Non-current operating lease liabilities		17,730				14,943
Other non-current liabilities		24,026				21,272
Liabilities of discontinued operations		—				9,670
Shareholders’ equity:
Preferred stock, $0.01 par value; authorized 10,000 shares; none outstanding		—				—
Common stock, $0.01 par value; authorized 50,000 shares; 33,568 and 33,192 shares issued in 2020 and 2019		336				332
Additional paid-in capital		304,870				295,582
Retained earnings		469,943				405,668
Accumulated other comprehensive loss		(2,461		)		(5,391		)
Cost of 1,028 and 906 common shares held in treasury in 2020 and 2019		(28,883		)		(22,227		)
Total shareholders’ equity		743,805				673,964
		$	1,212,494			$	984,450

GIBRALTAR INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
		Twelve Months Ended December 31,
		2020				2019
Cash Flows from Operating Activities
Net income		$	64,566			$	65,091
(Loss) income from discontinued operations		(18,725		)		5,163
Income from continuing operations		83,291				59,928
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		20,915				17,557
Stock compensation expense		8,173				12,570
Gain on sale of business		(1,881		)		—
Exit activity costs, non-cash		493				408
Provision for deferred income taxes		3,786				4,120
Other, net		1,944				5,399
Changes in operating assets and liabilities, excluding the effects of acquisitions:
Accounts receivable		2,277				(11,256		)
Inventories		(5,719		)		14,272
Other current assets and other assets		5,467				(9,306		)
Accounts payable		(1,160		)		4,804
Accrued expenses and other non-current liabilities		(44,570		)		14,040
Net cash provided by operating activities of continuing operations		73,016				112,536
Net cash provided by operating activities of discontinued operations		16,088				17,399
Net cash provided by operating activities		89,104				129,935
Cash Flows from Investing Activities
Acquisitions, net of cash acquired		(313,686		)		(8,595		)
Net proceeds from sale of property and equipment		77				92
Purchases of property, plant, and equipment		(13,068		)		(8,776		)
Net proceeds from sale of business		2,000				—
Net cash used in investing activities of continuing operations		(324,677		)		(17,279		)
Net cash used in investing activities of discontinued operations		(2,033		)		(2,394		)
Net cash used in investing activities		(326,710		)		(19,673		)
Cash Flows from Financing Activities
Proceeds from long-term debt		85,000				—
Long-term debt payments		—				(212,000		)
Payment of debt issuance costs		—				(1,235		)
Purchase of treasury stock at market prices		(6,656		)		(4,305		)
Net proceeds from issuance of common stock		1,119				490
Net cash provided by (used in) financing activities		79,463				(217,050		)
Effect of exchange rate changes on cash		(1,166		)		1,145
Net decrease in cash and cash equivalents		(159,309		)		(105,643		)
Cash and cash equivalents at beginning of year		191,363				297,006
Cash and cash equivalents at end of year		$	32,054			$	191,363

GIBRALTAR INDUSTRIES, INC. Reconciliation of Adjusted Financial Measures (in thousands, except per share data) (unaudited)
		Three Months Ended December 31, 2020
		As Reported In GAAP Statements				Restructuring Charges				Senior Leadership Transition Costs				Acquisition Related Items				Adjusted Financial Measures
Net Sales
Renewable Energy & Conservation		$	124,553			$	—			$	—			$	—			$	124,553
Residential Products		128,205				—				—				—				128,205
Infrastructure Products		12,443				—				—				—				12,443
Consolidated sales		265,201				—				—				—				265,201
Income from operations
Renewable Energy & Conservation		11,656				369				—				34				12,059
Residential Products		20,287				70				—				—				20,357
Infrastructure Products		573				226				—				—				799
Segments Income		32,516				665				—				34				33,215
Unallocated corporate expense		(9,794		)		259				14				1,666				(7,855		)
Consolidated income from operations		22,722				924				14				1,700				25,360
Interest expense		220				—				—				—				220
Other expense		150				—				—				—				150
Income before income taxes		22,352				924				14				1,700				24,990
Provision for income taxes		4,754				251				—				439				5,444
Income from continuing operations		$	17,598			$	673			$	14			$	1,261			$	19,546
Income from continuing operations per share – diluted		$	0.53			$	0.02			$	—			$	0.04			$	0.59
Operating margin
Renewable Energy & Conservation		9.4		%		0.3		%		—		%		—		%		9.7		%
Residential Products		15.8		%		0.1		%		—		%		—		%		15.9		%
Infrastructure Products		4.6		%		1.8		%		—		%		—		%		6.4		%
Segments Margin		12.3		%		0.3		%		—		%		—		%		12.5		%
Consolidated		8.6		%		0.3		%		—		%		0.6		%		9.6		%

GIBRALTAR INDUSTRIES, INC. Reconciliation of Adjusted Financial Measures (in thousands, except per share data) (unaudited)
		Three Months Ended December 31, 2019
		As Previously Reported In GAAP Statements				Discontinued Operations Restatement				As Reported In GAAP Statements				Restructuring & Acquisition Related Items				Senior Leadership Transition Costs				Adjusted Financial Measures
Net Sales
Renewable Energy & Conservation		$	111,411			$	—			$	111,411			$	—			$	—			$	111,411
Residential Products		101,213				—				101,213				—				—				101,213
Infrastructure Products		45,709				(32,299		)		13,410				—				—				13,410
Less Inter-Segment Sales		(202		)		202				—				—				—				—
		45,507				(32,097		)		13,410				—				—				13,410
Consolidated sales		258,131				(32,097		)		226,034				—				—				226,034
Income from operations
Renewable Energy & Conservation		16,644				—				16,644				288				—				16,932
Residential Products		13,167				—				13,167				72				—				13,239
Infrastructure Products		(205		)		986				781				—				—				781
Segments income		29,606				986				30,592				360				—				30,952
Unallocated corporate expense		(10,359		)		—				(10,359		)		752				2,693				(6,914		)
Consolidated income from operations		19,247				986				20,233				1,112				2,693				24,038
Interest income		(92		)		87				(5		)		—				—				(5		)
Other expense		211				(19		)		192				—				—				192
Income before income taxes		19,128				918				20,046				1,112				2,693				23,851
Provision for income taxes		4,771				232				5,003				91				134				5,228
Income from continuing operations		$	14,357			$	686			$	15,043			$	1,021			$	2,559			$	18,623
Income from continuing operations per share – diluted		$	0.44			$	0.02			$	0.46			$	0.03			$	0.08			$	0.57
Operating margin
Renewable Energy & Conservation		14.9		%						14.9		%		0.3		%		—		%		15.2		%
Residential Products		13.0		%						13.0		%		0.1		%		—		%		13.1		%
Infrastructure Products		(0.5		)%						5.8		%		—		%		—		%		5.8		%
Segments margin		11.5		%						13.5		%		0.2		%		—		%		13.7		%
Consolidated		7.5		%						9.0		%		0.5		%		1.2		%		10.6		%

GIBRALTAR INDUSTRIES, INC. Reconciliation of Adjusted Financial Measures (in thousands, except per share data) (unaudited)
		Twelve Months Ended December 31, 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		$	447,567			$	—			$	—			$	—			$	—			$	447,567
Residential Products		522,814				—				—				—				—				522,814
Infrastructure Products		62,197				—				—				—				—				62,197
Consolidated sales		1,032,578				—				—				—				—				1,032,578
Income from operations
Renewable Energy & Conservation		40,738				947				—				2,779				—				44,464
Residential Products		94,430				740				—				—				—				95,170
Infrastructure Products		7,233				226				—				—				—				7,459
Segments Income		142,401				1,913				—				2,779				—				147,093
Unallocated corporate expense		(35,211		)		375				2,526				1,991				—				(30,319		)
Consolidated income from operations		107,190				2,288				2,526				4,770				—				116,774
Interest expense		703				—				—				—				—				703
Other (income) expense		(1,272		)		—				—				—				1,881				609
Income before income taxes		107,759				2,288				2,526				4,770				(1,881		)		115,462
Provision for income taxes		24,468				547				—				1,164				(469		)		25,710
Income from continuing operations		$	83,291			$	1,741			$	2,526			$	3,606			$	(1,412	)		$	89,752
Income from continuing operations per share – diluted		$	2.53			$	0.05			$	0.08			$	0.11			$	(0.04	)		$	2.73
Operating margin
Renewable Energy & Conservation		9.1		%		0.2		%		—		%		0.6		%		—		%		9.9		%
Residential Products		18.1		%		0.1		%		—		%		—		%		—		%		18.2		%
Infrastructure Products		11.6		%		0.4		%		—		%		—		%		—		%		12.0		%
Segments Margin		13.8		%		0.2		%		—		%		0.3		%		—		%		14.2		%
Consolidated		10.4		%		0.2		%		0.2		%		0.5		%		—		%		11.3		%

GIBRALTAR INDUSTRIES, INC. Reconciliation of Adjusted Financial Measures (in thousands, except per share data) (unaudited)
		Twelve Months Ended December 31, 2019
		As Previously Reported In GAAP Statements				Discontinued Operations Restatement				As Reported In GAAP Statements				Restructuring, Acquisition & Debt Repayment Costs				Senior Leadership Transition Costs				Adjusted Financial Measures
Net Sales
Renewable Energy & Conservation		$	373,023			$	—			$	373,023			$	—			$	—			$	373,023
Residential Products		461,630				—				461,630				—				—				461,630
Infrastructure Products		213,805				(150,225		)		63,580				—				—				63,580
Less Inter-Segment Sales		(1,019		)		1,019				—				—				—				—
		212,786				(149,206		)		63,580				—				—				63,580
Consolidated sales		1,047,439				(149,206		)		898,233				—				—				898,233
Income from operations
Renewable Energy & Conservation		47,558				—				47,558				1,490				—				49,048
Residential Products		63,047				—				63,047				3,857				78				66,982
Infrastructure Products		13,455				(7,027		)		6,428				—				—				6,428
Segments income		124,060				(7,027		)		117,033				5,347				78				122,458
Unallocated corporate expense		(36,221		)		—				(36,221		)		2,145				9,666				(24,410		)
Consolidated income from operations		87,839				(7,027		)		80,812				7,492				9,744				98,048
Interest expense		2,205				118				2,323				(1,079		)		—				1,244
Other expense		871				(463		)		408				—				—				408
Income before income taxes		84,763				(6,682		)		78,081				8,571				9,744				96,396
Provision for income taxes		19,672				(1,519		)		18,153				2,080				615				20,848
Income from continuing operations		$	65,091			$	(5,163	)		$	59,928			$	6,491			$	9,129			$	75,548
Income from continuing operations per share – diluted		$	1.99			$	(0.16	)		$	1.83			$	0.20			$	0.28			$	2.31
Operating margin
Renewable Energy & Conservation		12.7		%						12.7		%		0.4		%		—		%		13.1		%
Residential Products		13.7		%						13.7		%		0.8		%		—		%		14.5		%
Infrastructure Products		6.3		%						10.1		%		—		%		—		%		10.1		%
Segments margin		11.8		%						13.0		%		0.6		%		—		%		13.6		%
Consolidated		8.4		%						9.0		%		0.8		%		1.1		%		10.9		%

GIBRALTAR INDUSTRIES, INC. Reconciliation of Adjusted Financial Measures (in thousands, except per share data) (unaudited)
		Three Months Ended March 31, 2020
		As Previously Reported In GAAP Statements				Discontinued Operations Restatement				As Reported in GAAP Statements				Restructuring & Senior Leadership Transition Costs				Acquisition Related Items				Adjusted Financial Measures
Net Sales
Renewable Energy & Conservation		$	96,497			$	—			$	96,497			$	—			$	—			$	96,497
Residential Products		103,419				—				103,419				—				—				103,419
Infrastructure Products		49,801				(34,316		)		15,485				—				—				15,485
Less Inter-Segment Sales		(278		)		278				—				—				—				—
		49,523				(34,038		)		15,485				—				—				15,485
Consolidated sales		249,439				(34,038		)		215,401				—				—				215,401
Income from operations
Renewable Energy & Conservation		5,699				—				5,699				18				1,001				6,718
Residential Products		13,725				—				13,725				221				—				13,946
Infrastructure Products		3,989				(2,413		)		1,576				—				—				1,576
Segment Income		23,413				(2,413		)		21,000				239				1,001				22,240
Unallocated corporate expense		(8,223		)		—				(8,223		)		2,280				259				(5,684		)
Consolidated income from operations		15,190				(2,413		)		12,777				2,519				1,260				16,556
Interest (income) expense		(47		)		91				44				—				—				44
Other expense		192				326				518				—				—				518
Income before income taxes		15,045				(2,830		)		12,215				2,519				1,260				15,994
Provision for income taxes		2,986				(673		)		2,313				59				316				2,688
Income from continuing operations		$	12,059			$	(2,157	)		$	9,902			$	2,460			$	944			$	13,306
Income from continuing operations per share – diluted		$	0.37			$	(0.07	)		$	0.30			$	0.07			$	0.03			$	0.40
Operating margin
Renewable Energy & Conservation		5.9		%						5.9		%		—		%		1.0		%		7.0		%
Residential Products		13.3		%						13.3		%		0.2		%		—		%		13.5		%
Infrastructure Products		8.1		%						10.2		%		—		%		—		%		10.2		%
Segments Margin		9.4		%						9.7		%		0.1		%		0.5		%		10.3		%
Consolidated		6.1		%						5.9		%		1.1		%		0.6		%		7.7		%

GIBRALTAR INDUSTRIES, INC. Reconciliation of Adjusted Financial Measures (in thousands, except per share data) (unaudited)
		Three Months Ended June 30, 2020
		As Previously Reported In GAAP Statements				Discontinued Operations Restatement				As Reported in GAAP Statements				Costs (Recoveries) on Restructuring & Senior Leadership Transition				Acquisition Related Items				Adjusted Financial Measures
Net Sales
Renewable Energy & Conservation		$	98,259			$	—			98,259				$	—			$	—			$	98,259
Residential Products		139,472				—				139,472				—				—				139,472
Infrastructure Products		48,263				(30,810		)		17,453				—				—				17,453
Less Inter-Segment Sales		(180		)		180				—				—				—				—
		48,083				(30,630		)		17,453				—				—				17,453
Consolidated sales		285,814				(30,630		)		255,184				—				—				255,184
Income from operations
Renewable Energy & Conservation		9,188				—				9,188				388				1,172				10,748
Residential Products		27,964				—				27,964				263				—				28,227
Infrastructure Products		6,644				(3,843		)		2,801				—				—				2,801
Segment Income		43,796				(3,843		)		39,953				651				1,172				41,776
Unallocated corporate expense		(9,205		)		—				(9,205		)		161				50				(8,994		)
Consolidated income from operations		34,591				(3,843		)		30,748				812				1,222				32,782
Interest expense		214				8				222				—				—				222
Other income		(1,787		)		(105		)		(1,892		)		1,881				—				(11		)
Income before income taxes		36,164				(3,746		)		32,418				(1,069		)		1,222				32,571
Provision for income taxes		8,872				(911		)		7,961				(299		)		274				7,936
Income from continuing operations		$	27,292			$	(2,835	)		$	24,457			$	(770	)		$	948			$	24,635
Income from continuing operations per share – diluted		$	0.83			$	(0.09	)		$	0.74			$	(0.02	)		$	0.03			$	0.75
Operating margin
Renewable Energy & Conservation		9.4		%						9.4		%		0.4		%		1.2		%		10.9		%
Residential Products		20.0		%						20.0		%		0.2		%		—		%		20.2		%
Infrastructure Products		13.8		%						16.0		%		—		%		—		%		16.0		%
Segments Margin		15.3		%						15.7		%		0.3		%		0.5		%		16.4		%
Consolidated		12.1		%						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 September 30, 2020
		As Previously Reported In GAAP Statements				Discontinued Operations Restatement				As Reported in GAAP Statements				Restructuring & Senior Leadership Transition Costs				Acquisition Related Items				Adjusted Financial Measures
Net Sales
Renewable Energy & Conservation		$	128,258			$	—			$	128,258			$	—			$	—			$	128,258
Residential Products		151,718				—				151,718				—				—				151,718
Infrastructure Products		49,767				(32,951		)		16,816				—				—				16,816
Less Inter-Segment Sales		(78		)		78				—				—				—				—
		49,689				(32,873		)		16,816				—				—				16,816
Consolidated sales		329,665				(32,873		)		296,792				—				—				296,792
Income from operations
Renewable Energy & Conservation		14,195				—				14,195				172				572				14,939
Residential Products		32,454				—				32,454				186				—				32,640
Infrastructure Products		5,199				(2,916		)		2,283				—				—				2,283
Segment Income		51,848				(2,916		)		48,932				358				572				49,862
Unallocated corporate expense		(7,989		)		—				(7,989		)		187				16				(7,786		)
Consolidated income from operations		43,859				(2,916		)		40,943				545				588				42,076
Interest expense		218				(1		)		217				—				—				217
Other expense (income)		53				(101		)		(48		)		—				—				(48		)
Income before income taxes		43,588				(2,814		)		40,774				545				588				41,907
Provision for income taxes		9,828				(388		)		9,440				67				135				9,642
Income from continuing operations		$	33,760			$	(2,426	)		$	31,334			$	478			$	453			$	32,265
Income from continuing operations per share – diluted		$	1.02			$	(0.07	)		$	0.95			$	0.02			$	0.01			$	0.98
Operating margin
Renewable Energy & Conservation		11.1		%						11.1		%		0.1		%		0.4		%		11.6		%
Residential Products		21.4		%						21.4		%		0.1		%		—		%		21.5		%
Infrastructure Products		10.5		%						13.6		%		—		%		—		%		13.6		%
Segments Margin		15.7		%						16.5		%		0.1		%		0.2		%		16.8		%
Consolidated		13.3		%						13.8		%		0.2		%		0.2		%		14.2		%

 

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