Gibraltar Industries, Inc. · NASDAQ:ROCK
Gibraltar Industries — Q4 2012 Earnings Presentation
14 slides from Gibraltar Industries's earnings presentation, Feb 22, 2013
Slide 1: Fourth Quarter 2012 Earnings Call Presentation
Fourth Quarter 2012 Earnings Call Presentation February 22, 2013 The data in this package should be read in conjunction with the Gibraltar earnings release.
Slide 2: Forward Looking Statements
2 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 expectations, estimates,
Slide 3: Gibraltar Overview
Gibraltar Overview 3 • Solid Q4, driven by performance improvement initiatives • Q4 operating profit rose $11 million on similar volume • EPS improved substantially • Tuck-in acquisitions late in Q4
Slide 4: Revenue Dynamics
Revenue Dynamics 4 • Non-residential demand was mixed picture: • Infrastructure was bright spot • Industrial pricing to raw material trend • European recession …. (15)% • Residential products demand lag: • Lag to new construction starts • Product re-set US-wide • Acquisitions in late Q4 added 1% pt
Slide 5: Q4 Margin Improvement
Q4 Margin Improvement 5 • Gross margin rose 240 bps, or +$4M; efficiencies and materials management • SG&A reduction of $7M; re-designed equity comp • West Coast integration 90% complete: • Combined four separate businesses & 11 facilities into 1 unit w/ 9 facilities • Exit remaining large facility
Slide 6: YOY Improvement
YOY Improvement 6 FY FY 4Q12 4Q11 2012 2011 Revenues Revenues $174.1 $790.1 $766.6 • Q4: acquisitions & public infrastructure demand $172.6 up, offset by slower R&R and industrial. • FY: growth led by acquisitions with exposure to ( 1)% +3% public infrastructure & multi-family residential markets.
Slide 7: Net Income / EPS
Net Income / EPS 7 FY FY 4Q12 4Q11 Var 2012 2011 Var Adjusted operating income (loss) * $ 6.9 $ (4.3) $ 11.2 $ 49.6 $ 45.0 $ 4.6 Net interest expense (4.6) (5.0) 0.4 (18.6) (19.4) 0.8 Other non-operating income 0.1 - 0.1 0.5 0.1 0.4 Adjusted income tax (expense) benefit* (0.9) 4.2 (5.1) (11.3) (10.4
Slide 8: Low Leverage and Strong Liquidity
Low Leverage and Strong Liquidity 8 Debt by tranche1 ($ in millions) Leverage and net leverage Notes ABL Leverage Net leverage $257 5.2x 5 4.8x 50 $207 $207 $208 4.3x 5 5 5 3.7x 2.8x 2.6x 202 202 202 203 2.0x 2.0x 2009 2010 2011 2012 1Reflects carrying value of existing notes 2009 2010 2011 2012 Liq
Slide 9: New Bonds Due 2021
New Bonds Due 2021 9 Redeemed Jan. 31 & Issued Feb. 13, 2013 Jan. 31, 2013 Size $204M $210M Coupon 8.00% 6.25% OID 1.675% None Tenor 2015 2021 Redemption NC5 NC4 Distribution 144A Cash Interest Expense $16.3M $13.1M
Slide 10: Acquisitions in Late Q4 2012
3 Acquisitions in Late Q4 2012 10 • Complementary product lines: • Exterior awnings & sun screens for residential market • Bridge & highway components • Perforated metal products; East Coast complement • Cost synergies & new products • Aggregate trailing 12-month revenues totaled $55 million; adjust
Slide 11: Revenues
Revenues 11 2012 revenues proforma including LTM $55M for acquisitions in late Q4 2012 Public Infrastructure 10% Residential & Residential & Low Low Rise Commercial Rise Commercial Industrial Industrial Building Building 40% 50% Other 18% Chemical Plants 23% Education & Medical 7% Leisure / Stadiums
Slide 12: Guidance
Guidance I~ _—S GIBRALTAR TNDUSTRIES 12
Slide 13: Gibraltar Outlook
Gibraltar Outlook 13 • Well-positioned for bottom-line growth in 2013: • Market restoration & leveraged earnings • West Coast restructuring in 2012 • Late Q4 2012 acquisitions accretive • Lower interest expense on bond re-fi • Well-positioned for 2013 top-line growth with market tailwinds
Slide 14: Q&A
14 Q&A