Gibraltar Industries, Inc. · NASDAQ:ROCK
Gibraltar Industries — WNY Investors Conference 2014
31 slides from Gibraltar Industries's conference presentation, Sep 26, 2014
Slide 1: WNY Investors Conference 2014
1 WNY Investors Conference 2014 September 26, 2014
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 Certain information set forth in this presentation, 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, intentions, est
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures 3 In addition to results presented in accordance with U.S. GAAP, this presentation and related tables include certain non-GAAP financial measures. We have provided reconciliations of those measures to the most directly comparable GAAP measures, which are available in the
Slide 4: Investment Thesis
Investment Thesis 4 MARGIN EXPANSION ON END-MARKET STRENGTH • #1 share in key building product categories • Outlook for sustained residential and industrial market expansion • Potential to leverage sales and profit growth from increasing market demand • Low leverage and strong liquidity • Record of
Slide 5: Gibraltar at a Glance
Gibraltar at a Glance 5 LEADING MANUFACTURER OF BUILDING PRODUCTS • Serving end markets of new residential and repair & remodeling, industrial & manufacturing facilities, and public transportation infrastructure Industrial & Residential • #1 share in our product categories Infrastructure 48% 52% • $
Slide 6: Industrial & Infrastructure Products Segment
Industrial & Infrastructure Products Segment 6 EXPANDED FOCUS Expanded Metal & Engineered Bearings & Bar Grating Perforated Metal Joints, Sealants •Walkways, Stairs •Security Barriers •Mitigate movement from load, wind, seismic, •Flooring •Architectural Facades Uses temperature •Platforms •Filtratio
Slide 7: Residential Products Segment
Residential Products Segment 7 GROWING RESIDENTIAL PENETRATION Roof & Foundation Rain Dispersion, Postal Storage Ventilation Products Trim, Flashing Building Accessories (single & cluster) •New Build •New Build •New Build •New Build Markets End •Repair & Remodel •Repair & Remodel •Repair & Remodel •
Slide 8: Blue Chip Customer Base
Blue Chip Customer Base 8 LOW CONCENTRATION Residential Industrial & Infrastructure At a Glance Market Position Market Position Profitable Growth Financial Performance Outlook
Slide 9: Broad Geographic Coverage
Broad Geographic Coverage 9 PRODUCTS SOLD IN 57 COUNTRIES ON 6 CONTINENTS Austria Bulgaria Belgium Poland Netherlands Czech Sweden Canada Denmark Republic Romania Bosnia Norway Germany Slovak Turkey Republic Finland Latvia Iceland United Slovenia Kingdom Croatia Mongolia Ireland France Saudi Arabia
Slide 10: Growth Strategy: Creating Value
Growth Strategy 10 CREATING VALUE Operational excellence initiatives to drive 3-5 Value-added strategic 2 acquisitions points of margin improvement 3 25% 50% 25% Growing the core 1 4-5 points Core Growth Acquisitions Margins Increase At a Glance Market Position Profitable Growth Profitable Growth Fi
Slide 11: Growth Strategy: Acquisitions as Accelerators
Growth Strategy 11 ACQUISITIONS AS “ACCELERATORS” Wealth Generation Market Size Relative Profitability Value Chain & Pain Points Enhance Existing Unique Value Proposition Product Lines Brand Equity Strategic Patented Products/Services Expand Geographic #1 or #2 Share Footprint Ability to Defend Lead
Slide 12: Shareholder Value Strategy
Shareholder Value Strategy 12 SIGNIFICANT UPSIDE FOR INCREASING SHAREHOLDER RETURNS • Focus capital, expenses & high performers/potentials on Resource Allocation key platforms • Establish minimum required returns Investment Opportunities • Rank projects based on risk-adjusted, after-tax returns • En
Slide 13: Top-line Results
Top-line Results 13 SUSTAINING GROWTH Total Revenue $853– $828 $860 $790 $767 In Millions $639 $637 2013 2014E 2012 2011 2010 2009 At a Glance Market Position Profitable Growth Financial Performance Financial Performance Outlook
Slide 14: Bottom-line Results
Bottom-line Results 14 PROACTIVE RESTRUCTURING, COST & GROWTH INITIATIVES Adjusted EBITDA $80 $78 $72 $75 In Millions $54 $40 10% 10% 9% 8% 8% 6% 2013 2014E 2012 2011 2010 2009 Margin •All amounts reported represent continuing operations before special charges. See non-GAAP reconciliations in append
Slide 15: Cash Flow Remains Strong
Cash Flow Remains Strong 15 SOLID CASH EARNINGS $60 $50-55 $50 $45 $39 5% $28-33 5% 3%-4% $ in millions 2014E 2013 2012 Cash Flow from Operations Free Cash Flow is sum of Cash Flow from Operations less capital expenditures; as % of Sales. (2014 and 2013 exclude an additional $6M and $13M proceeds fr
Slide 16: Low Leverage and Strong Liquidity
Low Leverage and Strong Liquidity 16 LIQUIDITY NEARING 3x EBITDA Liquidity Leverage Leverage Net Leverage ABL Cash 5.2X $200 $206 $118 3.7X $170 $165 3.1X $103 2.8X 2.6X 2.7X $147 $117 2.0X 2.0X 1.8X $116 1.5X $86 $97 $88 2013 06/30/14 $61 2011 2012 $54 $48 2010 2013 06/30/14 2011 2012 In millions 2
Slide 17: 2014 Financial Guidance
2014 Financial Guidance 17 WEAKER MARKET CONDITIONS & COST INFLATION 2013 2014E Assumptions Revenues $828M +3% to +4% Residential: Postal products growth offsets choppy R&R markets. Industrial & Infrastructure: Modest growth in Q2. 2H equivalent to 2H13. Segment Income $69M $55M-58M RM cost inflatio
Slide 18: Key Investment Factors
Key Investment Factors 18 LEVERAGED TO END-MARKET STRENGTH • Leading share in growing markets • Outlook for sustained residential and industrial growth • Secular upside in postal products • Low leverage; strong liquidity • Focus on returns-based organic & acquisition- driven growth
Slide 19: Appendix
19 APPENDIX
Slide 20: Consolidated Results
Consolidated Results 20 UNEVEN MARKET CONDITIONS 1H 1H 2Q14 2Q13 2014 2013 Revenues $235.0 $224.5 $426.0 $421.3 • Postal products volume led the gains; Revenues modest volume gains to industrial +5% +1% markets • Partially offset by volume decreases to roofing-related Rez and transportation Adjusted
Slide 21: EBITDA Reconciliation
21 EBITDA Reconciliation (unaudited) / (in thousands) 2009 2010 2011 2012 2013 TTM 6/30/14 2014E Net income (loss) $ (52,025) $ (91,068) $ 16,523 $ 12,645 $ (5,633) $ (5,373) $ 15,700 (Income) loss from discontinued Operations, net of taxes 12,453 15,712 (7,307) 5 (4) - - Income (loss) from continui
Slide 22: 1H 2014 Non-GAAP Reconciliation
22 1H 2014 Non-GAAP Reconciliation (unaudited) / (in thousands) Six Months Ended June 30, 2014 As Reported in Adjusted GAAP Acquisition Restructuring Statement of Statements Related Costs Costs Operations Income from operations Residential Products $ 13,182 $ 206 $ 145 $ 13,533 Industrial & Infrastr
Slide 23: 2013 Non-GAAP Reconciliation
23 2013 Non-GAAP Reconciliation (unaudited) / (in thousands) Twelve Months Ended December 31, 2013 Acquisition As Reported Related and Intangible Deferred Tax Adjusted in GAAP Restructuring Asset Note Valuation Statement of Statements Costs Impairment Refinancing Allowance Operations Income from ope
Slide 24: 1H 2013 Non-GAAP Reconciliation
24 1H 2013 Non-GAAP Reconciliation (unaudited) / (in thousands) Six Months Ended June 30, 2013 As Reported in Adjusted GAAP Acquisition Restructuring Note Statement of Statements Related Costs Costs Refinancing Operations Income from operations Residential Products $ 19,857 $ - $ 710 $ - $ 20,567 In
Slide 25: 2012 Non-GAAP Reconciliation
25 2012 Non-GAAP Reconciliation (unaudited) / (in thousands) Twelve Months Ended December 31, 2012 As Reported Acquisition Intangible Adjusted in GAAP Related Restructuring Asset Statement of Statements Costs Costs Impairment Operations Income from operations Residential Products $ 23,902 $ - $ 2,45
Slide 26: 2011 Non-GAAP Reconciliation
26 2011 Non-GAAP Reconciliation (unaudited) / (in thousands) Twelve Months Ended December 31, 2011 As Reported Adjusted in GAAP Acquisition Surrendered Restructuring Statement of Statements Related Costs Compensation Costs Operations Net Sales $ 766,607 $ - $ - $ - $ 766,607 Cost of Sales 621,492 (2
Slide 27: 2010 Non-GAAP Reconciliation
27 2010 Non-GAAP Reconciliation (unaudited) / (in thousands) Twelve Months Ended December 31, 2010 Intangible As Reported Asset Ineffective Deferred Tax in GAAP Impairment Interest Rate Restructuring Valuation Adjusted Statements Adjustment Swap Costs Allowance Earnings Net Sales $ 637,454 $ - $ - $
Slide 28: 2009 Non-GAAP Reconciliation
28 2009 Non-GAAP Reconciliation (unaudited) / (in thousands) Twelve Months Ended December 31, 2009 As Reported Intangible Deferred in GAAP Asset Financing Restructuring Adjusted Statements Impairment Costs Costs Earnings Net Sales $ 639,076 $ - $ - $ - $ 639,076 Cost of Sales 519,348 - - (1,705) 517
Slide 29: Gross & Net Leverage Reconciliation
29 Gross & Net Leverage Reconciliation (unaudited) / (in thousands) TTM June 30, 2010 2011 2012 2013 2014 Adjusted EBITDA $ 39,763 $ 75,021 $ 79,573 $ 77,843 $ 69,019 Debt 207,197 207,163 207,803 214,007 213,600 Gross Leverage 5.2X 2.8X 2.6X 2.7X 3.1X Less cash (60,866) (54,117) (48,028) (97,039) (8
Slide 30: ROIC Reconciliation
30 ROIC Reconciliation (unaudited) / (in thousands) 2008 2009 2010 2011 2012 2013 2014E Adjusted (Loss) Income from Continuing Operations $ 27,837 $ 3,600 $ (4,049) $ 15,314 $ 20,194 $ 21,374 $ 15,800 Interest Expense 23,820 20,009 18,290 19,363 18,582 15,323 14,800 Adjusted Effective Tax Rate 37.5%
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