Gibraltar Industries, Inc. · NASDAQ:ROCK
Gibraltar Industries — Investor Presentation (May 2023)
37 slides from Gibraltar Industries's investor presentation, May 2023
Slide 1: Gibraltar Industries Investor Presentation May 2023
GIBRALTAR INDUSTRIES Investor Presentation May 2023 www.Gibraltar1.com
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
Slide 3: $1.3B+ Manufacturer Reshaping Critical Markets in North America
$1.3B+ MANUFACTURER RESHAPING CRITICAL MARKETS IN NORTH AMERICA 2022 Revenue Strong foundation with leadership positions gaining momentum in attractive end markets ~ 40% sustainable • Renewables • Residential • Agtech Agtech Renewables Strategy to accelerate execution and scale across 4 segments to
Slide 4: Significant Progress in Transforming the Business
SIGNIFICANT PROGRESS IN TRANSFORMING THE BUSINESS PORTFOLIO OPTIMIZATION 3 PILLAR FOUNDATION 1 2 3 2014 2022 Portfolio Business Organization Management System Higher Growth 80/20 Excellence Design Talent, AgTech Renewables Markets Structure Industrial & Business Models Residential Profitable Markets
Slide 5: Strong Positioning in Markets
STRONG POSITIONING IN MARKETS Industry Technology / Project Mgmt & Leadership Brand Operations “The Sauce” Portfolio - breadth & depth Renewable Field operations - 700+ projects/yr Energy Scale - speed - agility for customers National presence in major regions Residential Portfolio - breadth for reg
Slide 6: Renewables – Fast Growing Addressable Market
RENEWABLES – FAST GROWING ADDRESSABLE MARKET Segment 2020 2025 CAGR % ’20 – ’25 Design Software $0.1 $0.2 8% to 12% Racking & Field Installation $2.9 $4.1 6% to 9% Electrical Balance of $0.7 $1.0 6% to 9% System (eBOS) Operations & Maintenance $1.1 $2.7 15% to 20% $4.8B $8.0B $14B $22B $4.8B $8.0B 2
Slide 7: Gibraltar's Comprehensive Solar Growth Engine
GIBRALTAR’S COMPREHENSIVE SOLAR GROWTH ENGINE Field O&M Design Infrastructure Operations Services Design (SIFT) Electrical Electrical Balance of Systems Project Tracker Optimization Systems (eBOS) Management Management Geo Racking 1. Fixed Tilt Canopy & Roof Assessment Development Remote Services Sy
Slide 8: Solar Industry Panel Supply – Q1 2023 Update
SOLAR INDUSTRY PANEL SUPPLY – Q1 2023 UPDATE ▪ Uyghur Forced Labor Prevention Act (UFLPA) signed in Uyghur Forced December 2021, enforcement began June 2022 Withhold Labor ▪ Suppliers working through UFLPA enforcement with US Release Order Ongoing Prevention Act Customs & Border Protection (WRO) (UF
Slide 9: Renewables Growth Plan
RENEWABLES GROWTH PLAN Revenue & Adjusted Operating Margin* Revenue Growth 2020 2025P / CAGR TRACKER Revenue $238 ~ $700 ~ 24% ~ $700 Grow 4X on penetration, portfolio expansion $700 Adj. OM* 12.6% ~ 15% ~ 240bps Adj. EBITDA%* 14.1% ~ 16.5% ~ 630bps eBOS $600 Grow 2X in core utility space, innovat
Slide 10: Residential – Market Segment Dynamics
RESIDENTIAL – MARKET SEGMENT DYNAMICS Building Products Home Improvement Mail & Package New Construction DEMAND DRIVERS 16% Weather 56% 28% Age Related USPS MAIL DELIVERY COMPELLING DEMOGRAPHICS Replacement Cycles Weather New Construction AGING POPULATION 141 million USPS delivery points Growth in n
Slide 11: Residential – Description of Products and Services
RESIDENTIAL – DESCRIPTION OF PRODUCTS AND SERVICES Building Products Home Improvement Mail & Package ESSENTIAL PRODUCTS ON AND AROUND YOUR ROOF PRODUCTS HOME IMPROVEMENT USPS REQUIREMENTS Licensing Gutter protection and outdoor living products for residential and commercial Quality program applicati
Slide 12: Residential Growth Plan
RESIDENTIAL GROWTH PLAN Revenue & Adjusted Operating Margin* Strategic Imperatives 2020 2025P ∆ / CAGR EFFICIENCY Revenue $523 ~ $700 ~ 6% Execution – 80/20 Productivity, Automation, Supply Chain Adj. OM* 18.2% ~ 20% ~ 180bps Initiatives, Systems platform Adj. EBITDA%* 19.9% ~21.5% ~160bps $800 CHAN
Slide 13: Agtech Market and Drivers
AGTECH MARKET AND DRIVERS CONSUMER SHIFT SUSTAINABILITY Fresh and plant-based foods are ~70% of vine crops in 2018 were driving demand for year-round, locally- imported – susceptible to border, grown, pesticide free produce transportation, and sustainability challenges LEGALIZATION OF CANNABIS THE F
Slide 14: Gibraltar's Established Agtech Growth Engine
GIBRALTAR’S ESTABLISHED AGTECH GROWTH ENGINE Install / Design Build Operate Integrate Concept / 12 Structure “Families” & Service Buildings Project Maintenance Design Serving Each Unique Segment Need Management Services Structural / MEP Category SMEs 3rd Party Partners Construction Greenhouse Engine
Slide 15: Agtech Growth Plan
AGTECH GROWTH PLAN Revenue & Adjusted Operating Margin* Strategic Imperatives 2020 2025P / CAGR Revenue $209 ~ $320 ~ 9% ACCELERATE VALUE CREATION Adj. OM* 6.8% ~ 15% ~ 820bps ~$320 Drive ~ $141M of growth and ~ 800 bps of Adj. EBITDA%* 9.7% ~ 16.5% ~ 680bps margin expansion $305 EXPAND SHARE OF W
Slide 16: Our Commitment
OUR COMMITMENT Our People Our Communities The World Create the best environment for our Invest in the communities where our Drive Solutions for Energy Production, people to have success people live & work Growing Food, Home Efficiency Key Tenets 1. Promote and improve sustainability 2. Do what is ri
Slide 17: Gibraltar 2020-2025 Growth Plan
GIBRALTAR 2020- 2025 GROWTH PLAN Revenue OPPORTUNITY $2,000 Accelerate execution and scale across 4 ~ $1,800 segments M & A incremental to plan $1,500 $1,382 POSITION $1,011 $1,000 $M Strong foundation with leadership positions $742 gaining momentum in good end markets $500 PLAN Revenue growth ~12%
Slide 18: Scale and Execute 2025
SCALE AND EXECUTE 2025 Performance Transformation Revenue ~12% CAGR Foundation is strong - 3 pillars Adj. Op Margin ~ 190 bps Positioned to scale Adj. EPS grows 2X+ Sustainable solid growth markets ~ $750M cash from operations M&A incremental to plan Execution The Team 80/20 acceleration + Q-T-C Str
Slide 19: Balance Sheet Solid – Margin Expansion and Working Capital
BALANCE SHEET SOLID – MARGIN EXPANSION AND WORKING CAPITAL MANAGEMENT DROVE CASH GENERATION LIQUIDITY ($M) WORKING CAPITAL Q1 Benefit in • AP $ 23M • Other assets $ 2M • Other liabilities $ 1M Q1 Offset by $382 • AR $ 18M $322 $351 • Inventory $ 1M $369 FREE CASH FLOW $304 $344 Revolver Q123 FCF* =
Slide 20: Share Repurchase Program
SHARE REPURCHASE PROGRAM Q1 2023 UPDATE • Repurchased 153,537 shares • Market value $7.4 million • Average price - $47.99 • Through Q1 end, have expended ~47% of $200 million authorized PROGRAM - $200 million, 3 years ending May 2, 2025 ▪ Rationale • 2022 - 2025 operating plan expects to generate si
Slide 21: Capital Management: Investing in the Future
CAPITAL MANAGEMENT: INVESTING IN THE FUTURE 2015 - 2020 2020 - 2025 Plan ~$600M ~$750M Cash From Cash From Operations Operations Capex M&A Capex M&A $74M $510M – 6 acquisitions <2% Rev, 20% IRR 10X EBITDA multiple 80/20 initiatives TerraSmart & Sunfig 80/20 - Lean 3X leverage or less Health & Safety
Slide 22: Investment Highlights
INVESTMENT HIGHLIGHTS Strong foundation with leadership positions gaining momentum in attractive end markets Strategy in place to drive 2020-2025 Revenue ~12% CAGR Adj. Operating margin grows ~ 190 bps Accelerating execution and scale across 4 Adj. EPS improves 2X segments to drive growth and return
Slide 23: Appendix
APPENDIX GIBRALTAR
Slide 24: Consolidated Financial Performance – 1st Quarter Results
CONSOLIDATED FINANCIAL PERFORMANCE 1ST QUARTER RESULTS ADJUSTED PROFIT MEASURES* NET SALES* OPERATING MARGIN* EBITDA MARGIN* ADJUSTED DILUTED EPS* Q123 Q122 Q123 Q122 Q123 Q122 Q123 Q122 $316.0 13.4% $290.8 $0.70 10.6% 10.8% $0.60 8.5% -8.0% +210 bps +260 bps +16.7% *Amounts, other than EPS, are sta
Slide 25: 2023 Priorities
2023 PRIORITIES STRATEGIC PILLARS 2023 KEY PRIORITIES 1. Drive growth, quality of earnings, strong cash performance BUSINESS SYSTEM 2. Execute 80 / 20 – win participation, expand margin, drive service levels PORTFOLIO 3. Stay the course with digital IT investing in our businesses MANAGEMENT 4. Organ
Slide 26: Adjusted Financial Measures Reconciliation – Q1 2023
ADJUSTED FINANCIAL MEASURES RECONCILIATION – Q1 2023 Three Months Ended March 31, 2023 Restructuring & Senior As Reported in Leadership Adjusted GAAP Transition Acquisition Portfolio Financial Statements Costs Related Items Management Measures Net Sales Renewables $ 59,205 $ - $ - $ - $ 59,205 Resid
Slide 27: Adjusted Operating Profit & EBITDA Reconciliations – Q1 2023
ADJUSTED OPERATING PROFIT & EBITDA RECONCILIATIONS – Q1 2023 Three months ended March 31, 2023 Consolidated Renewables Residential Agtech Infrastructure Net Sales $ 293,267 $ 59,205 $ 179,495 $ 35,852 $ 18,715 Less: Processing Net Sales (2,514) - - (2,514) - Adjusted Net Sales $ 290,753 $ 59,205 $ 1
Slide 28: Adjusted Financial Measures Reconciliation – Q1 2022
ADJUSTED FINANCIAL MEASURES RECONCILIATION – Q1 2022 Three Months Ended March 31, 2022 Senior As Reported in Leadership Adjusted GAAP Restructuring Transition Acquisition Portfolio Financial Statements Charges Costs Related Items Management Measures Net Sales Renewables $ 78,783 $ - $ - $ - $ - $ 78
Slide 29: Adjusted Operating Profit & EBITDA Reconciliations – Q1 2022
ADJUSTED OPERATING PROFIT & EBITDA RECONCILIATIONS – Q1 2022 Three months ended March 31, 2022 Consolidated Renewables Residential Agtech Infrastructure Net Sales $ 317,865 $ 78,783 $ 179,485 $ 42,428 $ 17,169 Less: Processing Net Sales (1,823) - - (1,823) - Adjusted Net Sales $ 316,042 $ 78,783 $ 1
Slide 30: Adjusted Financial Measures Reconciliation – Q4 2022
ADJUSTED FINANCIAL MEASURES RECONCILIATION – Q4 2022 Three Months Ended December 31, 2022 As Reported in Adjusted GAAP Restructuring Acquisition Portfolio Financial Statements Charges Related Items Management Measures Net Sales Renewables $ 86,116 $ - $ - $ - $ 86,116 Residential 171,926 - - - 171,9
Slide 31: Adjusted Operating Profit & EBITDA Reconciliations – Q4 2022
ADJUSTED OPERATING PROFIT & EBITDA RECONCILIATIONS – Q4 2022 Three months ended December 31, 2022 Consolidated Renewables Residential Agtech Infrastructure Net Sales $ 313,861 $ 86,116 $ 171,926 $ 38,543 $ 17,276 Less: Processing Revenues* (943) - - (943) - Adjusted Net Sales $ 312,918 $ 86,116 $ 17
Slide 32: Adjusted Financial Measures Reconciliation – Q4 2021
ADJUSTED FINANCIAL MEASURES RECONCILIATION – Q4 2021 Three Months Ended December 31, 2021 Acquisition & Restructuring Senior As Reported in & Intanbile Leadership Adjusted GAAP Asset T ransition Portfolio Financial Statements Impairment Costs Management* Measures* Net Sales Renewables $ 108,671 $ -
Slide 33: Adjusted Operating Profit & EBITDA Reconciliations – Q4 2021
ADJUSTED OPERATING PROFIT & EBITDA RECONCILIATIONS – Q4 2021 Three months ended December 31, 2021 Consolidated Renewables Residential Agtech Infrastructure Net Sales $ 334,449 $ 108,671 $ 159,534 $ 49,751 $ 16,493 Less: Processing Revenues* (4,266) - - (4,266) - Adjusted Net Sales $ 330,183 $ 108,67
Slide 34: Adjusted Financial Measures Reconciliation – YTD 2022
ADJUSTED FINANCIAL MEASURES RECONCILIATION – YTD 2022 Twelve Months Ended December 31, 2022 Restructuring As Reported in & Senior Adjusted GAAP Leadership Acquisition Portfolio Financial Statements Costs Related Items Management Measures Net Sales Renewables $ 377,567 $ - $ - $ - $ 377,567 Residenti
Slide 35: Adjusted Operating Profit & EBITDA Reconciliations – YTD 2022
ADJUSTED OPERATING PROFIT & EBITDA RECONCILIATIONS – YTD 2022 Twelve months ended December 31, 2022 Consolidated Renewables Residential Agtech Infrastructure Net Sales $ 1,389,966 $ 377,567 $ 767,248 $ 168,868 $ 76,283 Less: Processing Revenues* (7,840) - - (7,840) - Adjusted Net Sales $ 1,382,126 $
Slide 36: Adjusted Financial Measures Reconciliation – YTD 2020
ADJUSTED FINANCIAL MEASURES RECONCILIATION – YTD 2020 Twelve Months Ended December 31, 2020 Restructuring & Senior Acquisition As Reported in Leadership Related Items Adjusted Adjusted GAAP T ransition & Gain on Sale Financial Portfolio Financial Statements Costs of Business Measures Management* Mea
Slide 37: Adjusted Operating Profit & EBITDA Reconciliations – 2020 & 2015
ADJUSTED OPERATING PROFIT & EBITDA RECONCILIATIONS – 2020 & 2015 For the year ended December 31, 2020 For the year ended December 31, 2015 Industrial Continuing Consolidated Renewables Residential Agtech Infrastructure Consolidated Disposition Operations Net Sales 1,032,578 238,107 522,814 209,460 6
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