Gibraltar Industries, Inc. · NASDAQ:ROCK
Gibraltar Industries — Investor Presentation (August 2019)
34 slides from Gibraltar Industries's investor presentation, August 2019
Slide 1: Investor Presentation
Investor Presentation August 2019
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: Gibraltar Transformation
Gibraltar …Transformation … Revenues Vision: • Transformational Change • Best-in-class value creation & returns Renewable Energy & Conservation Residential • 2x Revenue – 4x Earnings 32% Products • Billion Dollar Market Cap. – Relevant Industrial & 46% Infrastructure Products 22% Underway: • Executi
Slide 4: The Opportunity… entering 5th Year 2019
The Opportunity… entering 5th Yr …2019 Current Portfolio 80/20 Simplification Acquisition Growth/ Portfolio Mgmt Acquisitions/ Portfolio Mgmt/ Simplification $4.00 Current Portfolio ROIC Acq's/ Portfolio Mgmt/ Simplification ROIC 14.8% - 15.5% 15.0% 2019 Opportunity Revenue $3.50 Current Portfolio $
Slide 5: Capturing the Opportunity
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 1 small set of customers who bring in the majority of revenue an
Slide 6: Capturing the Opportunity: Operational Excellence
Capturing the Opportunity 1 Operational Excellence - “ treating the ‘80’ differently than the ’20’” Objectives Customer vs Products ▪ Simplify and streamline business ▪ Increase operating profit with fewer assets High Vol. Items Low Vol. A=3,100 (3,500) B= 14,100 (21,300) ▪ Grow revenues by focusing
Slide 7: Capturing the Opportunity: Operational Excellence
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-Forward Customers; Pricing, Overhead, Part #s, Inventories & Sq. Ft. Manufacture the 80’s / 2017-Forward Lower COGS, Inventories, Fixed Outsourc
Slide 8: Capturing the Opportunity: Innovation
Capturing the Opportunity 2 Innovation - Focused on adding higher value-added products Focus ▪ Postal Products – electronic package solutions ▪ Industrial & Infrastructure – expanded metal perimeter security products ▪ Solar – Single axis tracker ground mount ▪ Ongoing trade focus to continually ide
Slide 9: Capturing the Opportunity: 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 ▪ Sold & divested businesses and product lines which helped dr
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 ▪
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
Slide 12: Acquisitions as Strategic Accelerator
Capturing the Opportunity Acquisitions as Strategic Accelerator New Credit Facility announced in January • $400M, 5-year revolving credit facility Liquidity ($M) • Replaces $300M credit agreement due December 2020 $588 • Enhanced flexibility for capital allocation Revolver Cash $511 $476 $457 Levera
Slide 13: Appendix
Appendix
Slide 14: Residential Products Segment (46% of 2018 Base Revenue)
Residential Products Segment (46% of 2018 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
Slide 15: Industrial & Infrastructure Segment (22% of 2018 Base Revenue)
Industrial & Infrastructure Segment (22% of 2018 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
Slide 16: Renewable Energy & Conservation (32% of 2018 Base Revenue)
Renewable Energy & Conservation (32% of 2018 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
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
Slide 18: Solid Consolidated Results
Solid Consolidated Results 2Q19 Revenue Highlights Revenues • Increased activity in Renewable Energy and Infrastructure • More than offset by lower Industrial demand Quarterly Year-to-Date • Record backlog $242M, up 30% YOY $266.0 2Q19 Operating Income / EPS Highlights $262.7 $490.1 $481.4 • Interes
Slide 19: 2019 Guidance
2019 Guidance 2018 2019 2019 Assumptions Revenues $1,002M $1,030M - $1,050M Residential: Markets consistent with 2018 3% - 5% Industrial & Infrastructure: Continued growth driven by demand for innovative products Renewable Energy & Conservation: Continued domestic market expansion; continued demand
Slide 20: Year 5: Continued Progress
Year 5: Continued Progress Revenue Adj. Operating Margin (1) 1200 15% 1000 1030 - 10% 800 1041 1008 987 1002 1050 10.0% 10.1% 10.6- 600 862 5% 10.1% 11.1% 4.4% 6.6% 400 0% 2014 2015 2016 2017 2018 2019E 2014 2015 2016 2017 2018 2019E ROIC Adj. EPS 20% 2.40- 15% $2.00 2.14 2.55 10% 14.6% 14.8 – 1.67
Slide 21: Ongoing Base Revenues (1 / 3)
Ongoing Base Revenues (1 / 3) Residential Industrial & Infrastructure 476* 468* 463 450 430 432 432* 377 450 295 350 350 222 214 250 250 150 150 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Base Revenue Mail Contract 80/20 Quad 4 Exit Base Revenue 80/20 Quad 4 Exit Exit Europe Exit Bar Grating
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 - - 207 207 Proforma $ 432 $ 430 $ 207 $ 1,069 Business Changes 2-year Postal Contract completed - Dec. 2015 $ (30) $ - $ - $ (30) 80 / 20 Q
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 - 44 45 Proforma $ 432 $ 295 $ 326 $ 1,053 Business Changes EXIT Industrial Business Unit in Europe - Apr. 2016 - (11) - (11) EXIT Ind
Slide 24: Q2 2019 Reconciliation of Adjusted Measures
Q2 2019 Reconciliation of Adjusted Measures Thre e Months Ende d June 3 0 , 2 0 19 Restructuring Senio r (unaudited) / (in thousands) A s Repo rted and Leadership A djusted in GA A P A cquisitio n Transitio n Debt Financial Statements Related Items Co sts Repayment M easures Net Sales Residential P
Slide 25: YTD 2019 Reconciliation of Adjusted Measures
YTD 2019 Reconciliation of Adjusted Measures S ix Months Ende d June 3 0 , 2 0 19 Restructuring Senio r (unaudited) / (in thousands) A s Repo rted and Leadership A djusted in GA A P A cquisitio n Transitio n Debt Financial Statements Related Items Co sts Repayment M easures Net Sales Residential P r
Slide 26: Q2 2018 Reconciliation of Adjusted Measures
Q2 2018 Reconciliation of Adjusted Measures Thre e Months Ende d June 3 0 , 2 0 18 Senio r A s Repo rted Leadership A djusted (unaudited) / (in thousands) in GA A P Restructuring Transitio n Financial Statements Charges Co sts M easures Net Sales Residential P ro ducts $ 131,128 $ - $ - $ 131,128 In
Slide 27: YTD 2018 Reconciliation of Adjusted Measures
YTD 2018 Reconciliation of Adjusted Measures S ix Months Ende d June 3 0 , 2 0 18 Senio r A s Repo rted Leadership A djusted (unaudited) / (in thousands) in GA A P Restructuring Transitio n Financial Statements Charges Co sts Tax Refo rm M easures Net Sales Residential P ro ducts $ 235,076 $ - $ - $
Slide 28: 2018 Reconciliation of Adjusted Measures
2018 Reconciliation of Adjusted Measures Twelve Months Ended December 31, 2018 As Reported in Restructuring & Senior Adjusted (unaudited) / (in thousands) GAAP Acquisition Leadership Financial Statements Related Items Transition Costs Tax Reform Measures Net Sales Residential Products $ 463,216 $ -
Slide 29: 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
Slide 30: 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
Slide 31: 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 (unaudited) / (in thousands) A s Repo rted A cquisitio n Facility Sale / Intangible Reclass o f A djusted in GA A P Related Restructuring A sset Hedging Financial Statements Items Co sts Impairment A cti
Slide 32: 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,
Slide 33: ROIC Calculation Reconciliation
ROIC Calculation Reconciliation (unaudited) / (in thousands) 2014 2015 2016 2017 2018 2019E Net (Loss) / Income - GA A P $ (81,792) $ 23,476 $ 33,719 $ 62,965 $ 63,809 $64,000-69,000 A djustments for special charges, net of taxes 96,359 10,917 19,922 4,876 5,737 15,000 Tax reform transition adjustme
Slide 34: Investor Presentation
Investor Presentation August 2019
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