Gibraltar Industries, Inc. (NASDAQ:ROCK) Q4 2022 Earnings Conference Call February 22, 2023 9:00 AM ET Company Participants Carolyn Capaccio - LHA Investor Relations Bill Bosway - Chairman, President, and Chief Executive Officer Tim Murphy - Chief Financial Officer Conference Call Participants Daniel Moore - CJS Securities Julio Romero - Sidoti Operator Greetings, and welcome to the Gibraltar Industries Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is b ...

Financial Performance - The Company reported a liquidity of $322.1 million as of December 31, 2022, including $17.6 million in cash and $304.5 million available under its revolving credit facility[28]. - The Company has a share repurchase program authorized for up to $200 million, with $85.9 million spent to repurchase 1,997,366 shares as of December 31, 2022[31]. - The Company reported a backlog of approximately $299 million as of December 31, 2022, compared to $344 million in the previous year, primarily related to the Renewables, Agtech, and Infrastructure segments[54]. - In 2022, approximately 45% of the Company's revenues were generated from direct sales to end users, a decrease from 56% in 2021[50]. - One home improvement retailer accounted for 14% of the Company's consolidated net sales in 2022, with no other customer exceeding 10%[33]. Acquisitions and Divestitures - The Company acquired Quality Aluminum Products for an aggregate purchase price of $52.1 million, enhancing its Residential segment[30]. - The Company plans to divest its non-core Processing business within the Agtech segment to focus on higher growth opportunities[32]. - The Company classified its Processing business as held for sale as of March 31, 2022, to focus on higher growth areas within the Agtech segment[32]. Operational Strategy - The Company operates 33 facilities, including 25 manufacturing plants, across 15 states, Canada, China, and Japan[20]. - The Company’s portfolio management strategy includes optimizing its business in higher growth markets and divesting non-core segments[16]. - The Company has implemented enterprise resource planning systems to manage inventory and forecast customer orders effectively[46]. - The Company has integrated its Renewables segment under the brand name Terrasmart and Agtech segment under Prospiant to enhance brand strategy[51]. Product Development and Innovation - The Company introduced new products including screw-based racking and foundation solutions, operating software for solar energy investments, and single-axis tracker systems, enhancing installation efficiency and reducing costs[37]. - New products introduced include screw-based racking solutions and operating software for optimizing solar energy investments, enhancing project design capabilities[37]. - The Company has expanded its product offerings in the Infrastructure segment, including engineered pavement sealants for airport runways and corrosion-protection products for cable-suspension bridges, targeting new markets[44]. Employee and Workforce Management - The Company employs 2,137 total employees, with 41% classified as salary and 59% as hourly, reflecting a diverse workforce structure[61]. - The total workforce composition includes 2,137 employees, with 29.1% female and 70.8% male[68]. - Among the employees, 41.0% are salaried and 59.0% are hourly workers[69]. - The ethnic background of employees shows 62.1% White, 13.8% Hispanic or Latino, and 12.6% Black or African American[70]. - The Gibraltar Leadership Program was launched to 194 leaders in 2022, focusing on various leadership skills[73]. - The company emphasizes ongoing education and development, including quarterly ethics training for all employees[73]. Safety and Quality Commitment - The Company maintains a focus on safety, with a disciplined management process and monthly reviews of safety performance by the CEO, aiming for a zero incidents work environment[63]. - The Company’s commitment to quality is reflected in its management systems designed to meet customer and regulatory expectations[27]. Market Presence and Customer Engagement - The Company serves customers primarily in North America, with one home improvement retailer accounting for 14% of consolidated net sales in 2022[33]. - The Company has implemented a Customer Relationship Management (CRM) system to improve sales visibility and enable cross-sell and up-sell opportunities, enhancing market data aggregation[52].

Financial Data and Key Metrics Changes - Adjusted revenue increased by 6% to $389 million, with adjusted operating income up 16%, adjusted EBITDA up 14%, and adjusted EPS up 19% to $1.12 per share [8][22][24] - Backlog decreased by 7% to $356 million, driven by lower backlog in Renewables and Agtech businesses [10][24] Business Line Data and Key Metrics Changes - **Renewables Segment**: Revenue decreased by 14.7%, with backlog down 9%. Adjusted operating margin improved to 12.9%, up 150 basis points year-over-year [26][28] - **Residential Segment**: Revenue increased by 25.7%, with 19% organic growth. Adjusted operating income and EBITDA grew by 22.6% and 21.6%, respectively [30][32] - **Agtech Segment**: Adjusted revenue decreased by 7.3%, but adjusted operating and EBITDA margins improved by 200 and 230 basis points, respectively [35][37] - **Infrastructure Segment**: Revenue increased by 9.1%, with order backlog up 11%. Adjusted operating income increased by 62.5% [38][39] Market Data and Key Metrics Changes - Commodity prices for hot-rolled coil steel and aluminum have corrected, but remain above pre-pandemic levels. Other cost inputs like labor and transportation remain inflated [14] - The UFLPA enforcement continues to impact solar panel supply, with expectations for improvement in the first half of 2023 [11][20] Company Strategy and Development Direction - The company is focused on five key performance initiatives: driving 80/20, managing supply chain disruptions, accelerating digitization, improving organizational health, and conducting business responsibly [48][56] - The company raised the lower end of its GAAP and adjusted EPS outlook for the year, reaffirming its consolidated revenue outlook of $1.38 billion to $1.43 billion [50] Management's Comments on Operating Environment and Future Outlook - Management expects the renewables market to grow, with a slower first half of 2023 due to supply chain issues, but anticipates acceleration in the second half [52][56] - The residential market is returning to normal seasonality, with expectations for solid repair activity despite challenges in new housing construction [53][56] Other Important Information - The company acquired Quality Aluminum Products, contributing $0.02 to adjusted EPS and broadening its geographic and product footprint [9][100] - The company generated $38 million in cash from continuing operations during the quarter, with a net cash investment of $51.6 million for the purchase of QAP [40][43] Q&A Session Summary Question: What was the pricing versus volume during the quarter for the Residential side? - Management indicated that pricing was the main driver, with volume also contributing through participation gains [62] Question: Any inventory reductions from big-box retailers? - Management noted no significant change in volume at the big-box level, with expectations for normal seasonality to return [63][64] Question: What is the expectation for supply ramp-up in Renewables? - Management expects supply to normalize within a quarter once customers feel more comfortable [70] Question: How is inventory impacting free cash flow? - Management acknowledged that supply chain issues forced them to maintain higher inventory levels than anticipated [72][73] Question: What are the key variables for success in Renewables in 2023? - Key variables include panel supply, inflation impacts, and the benefits from the Inflation Reduction Act [95][96] Question: Can you discuss the strategic rationale behind the QAP deal? - The acquisition opens new channel opportunities, geographic expansion, and cross-selling potential [99][101] Question: Will 2023 be a growth year in the Residential segment? - Management believes that despite potential revenue declines from deflationary metal prices, growth can be achieved through volume pickup and participation gains [121][122]

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR For the transition period from to Commission File Number 000-22462 GIBRALTAR INDUSTRIES, INC. (Exact name of Registrant as specified in its charter) Delaware 16-1445150 (State or ...

SECOND QUARTER 2022 EARNINGS CALL 1 August 3, 2022 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 expectations, estimates, forecasts, and projections about the Company's business, and management's beliefs about future operations, results, and financial position. ...

Gibraltar Industries, Inc. (NASDAQ:ROCK) Q2 2022 Earnings Conference Call August 3, 2022 9:00 AM ET Company Participants Carolyn Capaccio - LHA, Investor Relations Bill Bosway - Chairman, President & Chief Executive Officer Tim Murphy - Chief Financial Officer Conference Call Participants Stefanos Crist - CJS Securities Ken Zener - KeyBanc Julio Romero - Sidoti and Co. Walter Liptak - Seaport Global Operator Greetings, and welcome to Gibraltar Industries Q2 2022 Earnings Conference Call. At this time, all ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-22462 GIBRALTAR INDUSTRIES, INC. (Exact name of Registrant as specified in its charter) Delaware 16-1445150 (State of inco ...

Gibraltar Industries, Inc. (NASDAQ:ROCK) Q1 2022 Earnings Conference Call May 4, 2022 9:00 AM ET Company Participants Carolyn Capaccio - LHA, Investor Relations Bill Bosway - Chairman, President & Chief Executive Officer Tim Murphy - Chief Financial Officer Conference Call Participants Daniel Moore - CJS Securities Ken Zener - KeyBanc Capital Markets Walt Liptak - Seaport Operator Greetings, and welcome to the Gibraltar Industries Q1 2022 Earnings Conference Call. At this time, all participants are in a lis ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-22462 GIBRALTAR INDUSTRIES, INC. (Exact name of Registrant as specified in its charter) Delaware 16-1445150 (State of inc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-22462 GIBRALTAR INDUSTRIES, INC. Delaware 16-1445150 (State of incorporation ) (I.R.S. Employer Identification No.) 3556 Lake Shore Road P.O. ...