Gibraltar Industries, Inc. · NASDAQ:ROCK
Gibraltar Industries — Investor Presentation (November 2019)
30 slides from Gibraltar Industries's investor presentation, November 2019
Slide 1: Investor Presentation
Investor Presentation November 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 Industries – Who We Are
Gibraltar Industries – Who We Are Revenues TTM Q319 • $1B Multi-industrial company serving targeted Renewable Energy end markets: Renewable Energy, Conservation, & Conservation 34% Residential Residential Products, Infrastructure, Industrial Products 45% Industrial & • Shifting away from commoditize
Slide 4: Investment Highlights
Investment Highlights Solid financial trajectory, on track to Multi-Industrial focused on achieve 3-4% revenue growth and 50- sustainable value creation 70bps adjusted operating margin expansion in 2019 Ample balance sheet flexibility to Asset portfolio leverages core support strategic execution com
Slide 5: Renewable Energy & Conservation (34% of TTM Q319 Revenue)
Renewable Energy & Conservation (34% of TTM Q319 Revenue) Products Solar Racking Greenhouses (“GH”) & Processing Ground mount fixed-tilt PV • Design / Engineering Floriculture Research, public and arrays • Fabrication Large-scale horticulture private Application Single axis tracker • Insta
Slide 6: Residential Products Segment (45% of TTM Q319 Revenue)
Residential Products Segment (45% of TTM Q319 Revenue) Postal and parcel storage Ventilation products for Products Roofing Accessories Home Improvement (Single and cluster) roofs and foundations Mail and package delivery Ventilation and whole- Water protection Gutter Protection Appli
Slide 7: Industrial & Infrastructure Segment (21% of TTM Q319 Revenue)
Industrial & Infrastructure Segment (21% of TTM Q319 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 seismic
Slide 8: Strategy
Strategy Drive growth and returns across platforms 5 Key Initiatives 1 Operational excellence 2 Direct Connection with End Customers Strategic Acquisitions 3 New Products and Innovation 80/20 3 - 5 pts Grow Core 4 Portfolio Optimization 4-5 pts 5 Acquisitions as a Strategic Accelerator www
Slide 9: Key Initiatives: Operational Excellence
Key Initiatives 1 Operational Excellence Actions Simplify and streamline business Increase operating profit with fewer assets Institutionalize sustainable culture of simplification 80/20 simplification Focus on products customers value Refocus on the relatively Results small set of customers
Slide 10: Key Initiatives: Direct Connection with End Customers
Key Initiatives 2 Direct Connection with End Customers Actions Focus on markets where customers value relationships Eliminate barriers and middlemen Differentiate ourselves through execution Leverage domain knowledge to identify customer pain points Results Q319: 51% of revenue direct to
Slide 11: Key Initiatives: New Products and Innovation
Key Initiatives 3 New Products and Innovation Actions Add higher value products to solve customer pain points Ongoing trade focus to continually identify new opportunities Results Postal Products → electronic package solutions Industrial & Infrastructure → expanded metal perimeter security p
Slide 12: Key Initiatives: Portfolio Optimization
Key Initiatives 4 Portfolio Optimization Actions Apply market, demand, and value extraction criteria to every end market Focus on platforms that fit growth, margin, ROIC hurdles Allocate leadership time, resources and capital accordingly Results Divested businesses and product lines which im
Slide 13: Key Initiatives: Acquisitions as a Strategic Accelerator
Key Initiatives 5 Acquisitions as a Strategic Accelerator Solar Balance of Systems & Adjacencies $148M acquisition in June 2015 Site prep, design, + install Renewable Energy Carports - Solar $6M acquisition of SolarBOS, electrical BOS in 3Q’18 Conservation Agricultural trends (commercial g
Slide 14: Apeks Supercritical Acquisition
Key Initiatives Apeks Supercritical Acquisition Strategic Rationale - Next Step Forward in Growing & Processing Value Chain • First investment into extraction processing - broadens Gibraltar’s presence to cover both Growing and Processing markets • It is an attractive market with an excellent growth
Slide 15: Balance Sheet Supports Growth
Balance Sheet Supports Growth Leverage Liquidity ($M) Leverage Net Leverage Cash Revolver Acquisition Criteria 2.1X $588 $511 $532 ◄ Strengthen our 1.8X 1.8X platforms 1.7X $457 1.5X $291 $349 ◄ Enhance our growth $289 $287 $394 and margin profile $280 ◄ Expand our presence in $297 target end market
Slide 16: Solid Consolidated Financial Performance
Solid Consolidated Financial Performance Revenues 3Q19 Revenue Highlights • Accelerating growth in Renewable Energy & Conservation Quarterly Year-to-Date • Residential, Industrial & Infrastructure stabilizing • Backlog of $241M, up 45% YOY $299.2 $789.3 $280.1 $761.5 3Q19 Operating Income / EPS High
Slide 17: 2019 Guidance
2019 Guidance 2018 2019 2019 Assumptions Revenues $1,002M $1,040M - $1,050M Renewable Energy & Conservation: Continued strong end market expansion 4% - 5% combined with participation gains driven by execution, broad offering, and Apeks Residential: Markets consistent with 2018 Industrial & Infrastru
Slide 18: Investment Highlights
Investment Highlights Solid financial trajectory, on track to Multi-Industrial focused on achieve 3-4% revenue growth and 50- sustainable value creation 70bps adjusted operating margin expansion in 2019 Ample balance sheet flexibility to Asset portfolio leverages core support strategic execution com
Slide 19: Appendix
Appendix
Slide 20: Q3 2019 Reconciliation of Adjusted Measures
Q3 2019 Reconciliation of Adjusted Measures Three Months Ended September 30, 2019 Senior (unaudited) / (in thousands) As Reported Leadership Acquisition Adjusted in GAAP Restructuring Transition Related Financial Statements Charges Costs Items Measures Net Sales Renewable Energy & Conservation $ 116
Slide 21: YTD 2019 Reconciliation of Adjusted Measures
YTD 2019 Reconciliation of Adjusted Measures Nine Months Ended September 30, 2019 Senior (unaudited) / (in thousands) As Reported Leadership Acquisition Adjusted in GAAP Restructuring Transition Related Debt Financial Statements Charges Costs Items Repayment Measures Net Sales Renewable Energy & Con
Slide 22: Q3 2018 Reconciliation of Adjusted Measures
Q3 2018 Reconciliation of Adjusted Measures Three Months Ended September 30, 2018 Senior As Reported Leadership Acquisition Adjusted (unaudited) / (in thousands) in GAAP Restructuring Transition Related Financial Statements Charges Costs Items Tax Reform Measures Net Sales Renewable Energy & Conserv
Slide 23: YTD 2018 Reconciliation of Adjusted Measures
YTD 2018 Reconciliation of Adjusted Measures Nine Months Ended September 30, 2018 Senior As Reported Leadership Acquisition Adjusted (unaudited) / (in thousands) in GAAP Restructuring Transition Related Financial Statements Charges Costs Items Tax Reform Measures Net Sales Renewable Energy & Conserv
Slide 24: Q4 2018 Reconciliation of Adjusted Measures
Q4 2018 Reconciliation of Adjusted Measures Three Months Ended December 31, 2018 Restructuring Senior As Reported & Acquisition Leadership Adjusted (unaudited) / (in thousands) in GAAP Related Transition Financial Statements Items Costs Tax Reform Measures Net Sales Residential Products $ 102,301 $
Slide 25: 2018 Reconciliation of Adjusted Measures
2018 Reconciliation of Adjusted Measures Twelve Months Ended December 31, 2018 Restructuring Senior (unaudited) / (in thousands) As Reported & Acquisition Leadership Adjusted in GAAP Related Transition Financial Statements Items Costs Tax Reform Measures Net Sales Residential Products $ 463,216 $ -
Slide 26: 2017 Reconciliation of Adjusted Measures
2017 Reconciliation of Adjusted Measures Twelve Months Ended December 31, 2017 Restructuring Senior (unaudited) / (in thousands) As Reported & Acquisition Leadership Adjusted in GAAP Related Transition Portfolio Financial Statements Items Costs Management Tax Reform Measures Net Sales Residential Pr
Slide 27: 2016 Reconciliation of Adjusted Measures
2016 Reconciliation of Adjusted Measures Twelve Months Ended December 31, 2016 Senior As Reported Acquisition Leadership Adjusted (unaudited) / (in thousands) in GAAP Related Restructuring Transition Portfolio Financial Statements Items Charges Costs Management Measures Net Sales Residential Product
Slide 28: 2015 Reconciliation of Adjusted Measures
2015 Reconciliation of Adjusted Measures Twelve Months Ended December 31, 2015 Gain on (unaudited) / (in thousands) As Reported Acquisition Facility Sale / Intangible Reclass of Adjusted in GAAP Related Restructuring Asset Hedging Financial Statements Items Costs Impairment Activity Measures Net Sal
Slide 29: 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 $66,000-69,000 A djustments for special charges, net of taxe 96,359 10,917 19,922 4,876 5,737 15,000 Tax reform transition adjustmen
Slide 30: Baird 2019 Global Industrial Conference
Baird 2019 Global Industrial Conference November 6, 2019
Gibraltar Industries — Investor Presentation (November 2019) on 6ix