Gibraltar Industries, Inc. · NASDAQ:ROCK

Gibraltar Industries — Investor Presentation (January 2019)

33 slides from Gibraltar Industries's investor presentation, Jan 9, 2019

  1. Slide 1: Investor Presentation January 2019

    Investor Presentation January, 2019

  2. Slide 2: Safe Harbor Statements

    Safe Harbor Statements Forward Looking Statements 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 exp

  3. Slide 3: Gibraltar Transformation

    Gibraltar …Transformation … Revenues Vision: • Transformational Change • Best-in-class value creation & returns Renewable Energy & Conservation Residential • 2x Revenue – 4x Earnings 31% Products • Billion Dollar Market Cap. – Relevant Industrial & 47% Infrastructure Products 22% Underway: • Executi

  4. Slide 4: The Opportunity: Adjusted EPS and ROIC

    The Opportunity… 4th Yr …2018 Current Portfolio 80/20 Simplification Acquisition Growth/ Portfolio Mgmt Acquisitions/ Portfolio Mgmt/ Simplification 15.0% $4.00 Current Portfolio ROIC Acq's/ Portfolio Mgmt/ Simplification ROIC 13.9%-14.7% 2019 Opportunity Revenue $3.50 Current Portfolio $1.0B 12.6%

  5. Slide 5: Capturing the Opportunity: 4-Pillars of Value Creation

    Capturing the Opportunity “Make more money at a Higher Rate of Return and More Efficient Use of Capital” 4-Pillars of Value Creation Strategy Creating Value Through Higher Earnings  Operational excellence: Refocusing on the relatively small 1 set of customers who bring in the majority of revenue an

  6. Slide 6: Operational Excellence: Customers vs Products

    Capturing the Opportunity 1 Operational Excellence - “ treating the ‘80’ differently than the ’20’” Objectives Customer vs Products  Simplify and streamline business High Vol. Items Low Vol.  Increase operating profit with fewer assets A=3,600 (3,500) B= 15,500 (21,300)  Grow revenues by focusing

  7. Slide 7: Operational Excellence: What's Next

    Capturing the Opportunity 1 Operational Excellence “ more to go …..what’s next ’” Initiatives Years Focus on the “80’s” of SKUs & 80/20 Simplification 2015-2016 Customers; Pricing, Overhead, Part #s, Inventories & Sq. Ft. Manufacture the 80’s / 2017-2018 Lower COGS, Inventories, Fixed Outsource the

  8. Slide 8: Innovation - IP Protected

    Capturing the Opportunity 2 Innovation - IP Protected 10% of Revenue…target of 10% in 2020 Focus  Postal Products – centralized mail systems & electronic package solutions  Industrial & Infrastructure – expanded metal perimeter security products  Solar – Single axis tracker ground mount  Buildin

  9. Slide 9: Portfolio Management

    Capturing the Opportunity 3 Portfolio Management – the thoughtful allocation of capital  Regular evaluation of existing platforms’ future value-creation  Allocation of leadership time, capital & resources to highest potential platforms  Divestiture of European industrial business (April 2016)  E

  10. Slide 10: Acquisitions as a Strategic Accelerator

    Capturing the Opportunity 4 Acquisitions - as a strategic accelerator …. Mail & Parcel Solutions  Curbside to centralized Postal & Parcel  Parcel delivery  Last Mile / Self Service Solutions  Package Concierge Acquired 1Q17 Whole Home Air Management  Tighter building envelopes Air Management 

  11. Slide 11: Acquisitions with Innovative Technology / Processes

    Capturing the Opportunity 4 Acquisitions - ….with Innovative Technology / Processes Solar Balance of Systems & Adjacencies  $148M acquisition in June 2015  Site prep, design, + install Renewable Energy  Carports - Solar  $6M acquisition of SolarBOS, electrical BOS in 3Q’18 Conservation  Agricul

  12. Slide 12: Acquisitions as Strategic Accelerator: Leverage and Liquidity

    Capturing the Opportunity Acquisitions as Strategic Accelerator Liquidity ($M) Leverage $535 Revolver Cash $511 $457 Leverage Net Leverage $349 $290 $289 $287 2.8X 2.1X 1.8X 1.8X 1.7X $209 1.5X 1.5X $280 $98 $245 0.4X 0.0X 0.0X $222 $170 $111 $69 2017 2018 Q3 2015 2016 2014 2017 2018 2015 2016 2014

  13. Slide 13: Appendix

    Appendix

  14. Slide 14: Residential Products Segment

    Residential Products Segment (47% of 2017 Base Revenue)  Rain dispersion  Postal and parcel storage (Single  Ventilation products for roofs and  Trims Products and cluster) foundations  Flashing  Other roof-related accessories  Mail and package delivery  Water protection Application  Ventil

  15. Slide 15: Industrial & Infrastructure Segment

    Industrial & Infrastructure Segment (22% of 2017 Base Revenue)  Structural bearings  Expanded metal Products  Expansion joints  Perforated metal  Sealants  Perimeter security solutions  Preserve bridge functionality under varying weight, Application  Walkways / catwalks wind, heat and seismi

  16. Slide 16: Renewable Energy & Conservation

    Renewable Energy & Conservation (31% of 2017 Base Revenue) Products Solar Racking Greenhouses (“GH”)  For ground-mount  Ground mount fixed-tilt PV  Floriculture – Design arrays  Large-scale horticulture  Seed development Application – Fabrication  Commercial rooftop  Research, public and  Se

  17. Slide 17: Rigorous Identification, Vetting Process

    Rigorous Identification, Vetting Process Value Creation Target Platforms Unique Value Proposition Brand Equity FAIL Patented Products/Services Share Leader PASS • Commodity player Ability to Defend • Patents, differentiator • Market follower Leadership Talent • Market leader • Weak team, or strong o

  18. Slide 18: Solid Consolidated Results

    Solid Consolidated Results 3Q18 Revenue Highlights • Strong demand in Renewable Energy & Conservation and Revenues innovative products • Offset lower sales in Residential and Infrastructure Quarterly Year-to-Date 3Q18 Operating Income / EPS Highlights $280.1 $761.5 $274.6 $728.8 • Higher performance

  19. Slide 19: 2018 Guidance

    2018 Guidance 2017 2018 2018 Assumptions Revenues $986.9M $1,000M - $1,010M Residential: Ventilation-related products down due to strong weather related 1% - 2% activity in 2017; decline in commercial and multi-family markets Industrial & Infrastructure: Strong Industrial end markets; innovative pro

  20. Slide 20: Year 4: Continued Progress

    Year 4: Continued Progress Revenue Adj. Operating Margin (1) 1200 15% 1000 1000- 10% 800 1041 1008 987 10.1%- 862 1010 5% 10.0% 10.1% 600 4.4% 6.6% 10.2% 400 0% 2014 2015 2016 2017 2018E 2014 2015 2016 2017 2018E ROIC Adj. EPS 15% $2.00 13.9%- 2.03- 10% 12.6% 1.67 1.71 2.08 11.7% 14.7% $1.00 5% 8.1%

  21. Slide 21: Ongoing Base Revenues (1/3)

    Ongoing Base Revenues (1 / 3) Residential Industrial & Infrastructure 476* 468* 450 430 432 431* 377 450 350 295 350 214 250 250 150 150 2014 2015 2016 2017 2014 2015 2016 2017 Base Revenue Mail Contract 80/20 Quad 4 Exit Base Revenue 80/20 Quad 4 Exit Exit Europe Exit Bar Grating Renewable Energy C

  22. Slide 22: Ongoing Base Revenues Rise (2/3)

    Ongoing Base Revenues Rise (2 / 3) Industrial & Renewable Residential Infrastruct. Energy Consolid. 2014 Revenue as reported $ 432 $ 430 $ ‐ $ 862 Acquisitions ‐ ‐ 187 187 Proforma $ 432 $ 430 $ 187 $ 1,049 Business Changes 2‐year Postal Contract completed ‐ Dec. 2015 $ (30) $ ‐ $ ‐ $ (30) 80 / 20 Q

  23. Slide 23: Ongoing Base Revenues Rise (3/3)

    Ongoing Base Revenues Rise (3 / 3) Industrial & Renewable Residential Infrastruct. Energy Consolid. 2016 Revenue as reported $ 431 $ 295 $ 282 $ 1,008 Acquisitions 1 ‐ 22 23 Proforma $ 432 $ 295 $ 304 $ 1,031 Business Changes EXIT Industrial Business Unit in Europe ‐ Apr. 2016 ‐ (11) ‐ (11) EXIT Ind

  24. Slide 24: Q3 2018 Reconciliation of Adjusted Measures

    Q3 2018 Reconciliation of Adjusted Measures Thre e Months Ende d S e pte mbe r 3 0 , 2 0 18 Senio r (unaudited) / (in thousands) A s Repo rted Leadership A cquisitio n A djusted in GA A P Restructuring Transitio n Related Financial Statements Charges Co sts Items Tax Refo rm M easures Net Sales Resi

  25. Slide 25: YTD 2018 Reconciliation of Adjusted Measures

    YTD 2018 Reconciliation of Adjusted Measures Nine Months Ende d S e pte mbe r 3 0 , 2 0 18 Senio r (unaudited) / (in thousands) A s Repo rted Leadership A cquisitio n A djusted in GA A P Restructuring Transitio n Related Financial Statements Charges Co sts Items Tax Refo rm M easures Net Sales Resid

  26. Slide 26: Q3 2017 Reconciliation of Adjusted Measures

    Q3 2017 Reconciliation of Adjusted Measures Thre e Months Ende d S e pte mbe r 3 0 , 2 0 17 Senio r (unaudited) / (in thousands) A s Repo rted A cquisitio n & Leadership A djusted in GA A P Restructuring Transitio n P o rtfo lio Financial Statements Charges Co sts M anagement M easures Net Sales Res

  27. Slide 27: YTD 2017 Reconciliation of Adjusted Measures

    YTD 2017 Reconciliation of Adjusted Measures Nine Months Ende d S e pte mbe r 3 0 , 2 0 17 Senio r (unaudited) / (in thousands) A s Repo rted A cquisitio n & Leadership A djusted in GA A P Restructuring Transitio n P o rtfo lio Financial Statements Charges Co sts M anagement M easures Net Sales Resi

  28. Slide 28: 2017 Reconciliation of Adjusted Measures

    2017 Reconciliation of Adjusted Measures Twe lve Months Ende d De c e mbe r 3 1, 2 0 17 Restructuring Senio r (unaudited) / (in thousands) A s Repo rted & A cquisitio n Leadership A djusted in GA A P Related Transitio n P o rtfo lio Financial Statements Items Co sts M anagement Tax Refo rm M easures

  29. Slide 29: 2016 Reconciliation of Adjusted Measures

    2016 Reconciliation of Adjusted Measures Twe lve Months Ende d De c e mbe r 3 1, 2 0 16 Senio r A s Repo rted A cquisitio n Leadership A djusted (unaudited) / (in thousands) in GA A P Related Restructuring Transitio n P o rtfo lio Financial Statements Items Charges Co sts M anagement M easures Net S

  30. Slide 30: 2015 Reconciliation of Adjusted Measures

    2015 Reconciliation of Adjusted Measures Twe lve Months Ende d De c e mbe r 3 1, 2 0 15 Gain o n A s Repo rted A cquisitio n Facility Sale / Intangible Reclass o f A djusted (unaudited) / (in thousands) in GA A P Related Restructuring A sset Hedging Financial Statements Items Co sts Impairment A cti

  31. Slide 31: 2014 Reconciliation of Adjusted Measures

    2014 Reconciliation of Adjusted Measures Twe lve Months Ende d De c e mbe r 3 1, 2 0 14 (unaudited) / (in thousands) A s Repo rted A cquisitio n Intangible A djusted in GA A P Related Restructuring A sset Financial Statements Items Charges Impairment M easures Net Sales Residential P ro ducts $ 431,

  32. Slide 32: ROIC Calculation Reconciliation

    ROIC Calculation Reconciliation 2014 2015 2016 2017 2018E (unaudited) / (in thousands) Net (Loss) / Income - GAAP $ (81,792) $ 23,476 $ 33,719 $ 62,965 $56,400-60,300 Intangible asset impairment, net of taxes 96,159 3,429 - - - Restructuring, acquisition & other special charges, net of taxes 200 7,4

  33. Slide 33: Investor Presentation January 2019

    Investor Presentation January, 2019

Gibraltar Industries — Investor Presentation (January 2019) on 6ix