Gibraltar Industries, Inc. · NASDAQ:ROCK
Gibraltar Industries — Q2 2023 Earnings Presentation
16 slides from Gibraltar Industries's earnings presentation, Aug 2, 2023
Slide 1: Second Quarter 2023 Earnings Call
SECOND QUARTER 2023 EARNINGS CALL August 2, 2023 1
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: Second Quarter 2023 Results
SECOND QUARTER 2023 RESULTS NET SALES § End market demand evolving as expected with more strength in the 2nd half ADJUSTED of the year across each segment $364M Flat NET SALES § Residential: channel inventory in better balance along with normal seasonal demand pattern ADJUSTED § Renewables: module s
Slide 4: Solar Industry Module Supply – Q2 2023 Update
SOLAR INDUSTRY MODULE SUPPLY – Q2 2023 UPDATE § Uyghur Forced Labor Prevention Act (UFLPA) signed in December 2021, enforcement Uyghur Forced began June 2022 Labor § Suppliers gradually moving up US Customs & Border Protection UFLPA enforcement Prevention Act learning curve (UFLPA) § Customers expec
Slide 5: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 2ND QUARTER RESULTS 1st HALF RESULTS ADJUSTED PROFIT MEASURES* ADJUSTED PROFIT MEASURES* OPERATING EBITDA OPERATING EBITDA NET SALES* MARGIN* MARGIN* DILUTED EPS* NET SALES* MARGIN* MARGIN* DILUTED EPS* 2023 2022 2023 2022 2023 2022 2022 2021 2023 2022 2023 2022 20
Slide 6: Renewables
RENEWABLES 2ND QUARTER RESULTS 1st HALF RESULTS ADJUSTED PROFIT MEASURES ADJUSTED PROFIT MEASURES NET SALES* OPERATING MARGIN* EBITDA MARGIN* NET SALES* OPERATING MARGIN* EBITDA MARGIN* Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 YTD 23 YTD 22 YTD 23 YTD 22 YTD 23 YTD 22 14.8% $180.3 11.8% $101.5 11.7% $136
Slide 7: Residential
RESIDENTIAL 2ND QUARTER RESULTS 1st HALF RESULTS ADJUSTED PROFIT MEASURES ADJUSTED PROFIT MEASURES NET SALES* OPERATING MARGIN* EBITDA MARGIN* NET SALES* OPERATING MARGIN* EBITDA MARGIN* Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 YTD 23 YTD 22 YTD 23 YTD 22 YTD 23 YTD 22 $228.2 $407.7 $200.2 $379.7 19.8% 1
Slide 8: Agtech
AGTECH 2ND QUARTER RESULTS 1st HALF RESULTS ADJUSTED PROFIT MEASURES ADJUSTED PROFIT MEASURES NET SALES* OPERATING MARGIN* EBITDA MARGIN* NET SALES* OPERATING MARGIN* EBITDA MARGIN* Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 YTD 23 YTD 22 YTD 23 YTD 22 YTD 23 YTD 22 9.5% $81.5 10.1% $40.9 12.9% 13.4% 6.7%
Slide 9: Infrastructure
INFRASTRUCTURE 2ND QUARTER RESULTS 1st HALF RESULTS ADJUSTED PROFIT MEASURES ADJUSTED PROFIT MEASURES NET SALES* OPERATING MARGIN* EBITDA MARGIN* NET SALES* OPERATING MARGIN* EBITDA MARGIN* Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 YTD 23 YTD 22 YTD 23 YTD 22 YTD 23 YTD 22 $42.9 $24.2 27.6% 23.8% 24.1% $3
Slide 10: Balance Sheet – Margin Expansion and Working Capital Management Continue to Drive Cash Performance
BALANCE SHEET – MARGIN EXPANSION AND WORKING CAPITAL MANAGEMENT CONTINUE TO DRIVE CASH PERFORMANCE LIQUIDITY ($M) WORKING CAPITAL Revolver GENERATED CASH OF $33M Cash $382 $403 Q2 Benefit § Inventory $14M $322 § AP $25M § Other liabilities $29M $384 § Other assets $2M $369 $304 Q2 Offset by § AR $37
Slide 11: Share Repurchase Program Q2 2023 Update
SHARE REPURCHASE PROGRAM Q2 2023 UPDATE § Repurchased 368,038 shares § Market value $17.8 million § Average price - $48.40 § Through Q2 end, have expended ~56% of $200 million authorized PROGRAM - $200 million, 3 years ending May 2, 2025 § Rationale ̶ 2022 - 2025 operating plan expects to generate s
Slide 12: 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 13: Revised 2023 Guidance
REVISED 2023 GUIDANCE REVISED 2023 INCREASE VS 2022* GUIDE PRIOR GUIDE Net Sales $1.38B $1.36 – $1.41B -- Operating Income GAAP $130.1M $150.9 – $159.5M ~ 12% Adjusted $150.7M $167.9 – $176.2M ~ 11% Adjusted EBITDA $183.4M $200.6 – $211.6M ~ 8% Operating Margin GAAP 9.4% ~ 11.1% – 11.3% ~ 120 bps Ad
Slide 14: Appendix
APPENDIX GIBRALTAR
Slide 15: Raising 2023 Outlook: Bridge
RAISING 2023 OUTLOOK: BRIDGE 1st HALF ACTUAL 2nd HALF RANGE 2023 REVISED RANGE Net Sales $658M $702 - $752M $1.36 – $1.41B Operating Income GAAP $72.4M $78.5 - $87.1M $150.9 - $159.5M Adjusted $81.4M $86.5 - $94.8M $167.9 - $176.2M Adjusted EBITDA $100.0M $100.6 - $111.6M $200.6 - $211.6M Operating
Slide 16: Gibraltar
GIBRALTAR August 2, 2023 GIBRALTAR