Gibraltar Industries(US:ROCK)2021-08-06 22:45Financial Data and Key Metrics Changes - Revenue increased by 36.5% to $348.4 million, with 14% organic growth and 22.5% from acquisitions [6][18] - Adjusted operating income rose by 8.2%, and adjusted EPS increased by 6.7% to $0.80 per share [9][19] - Order backlog grew by 54% to over $400 million, reflecting strong demand [7][19] Business Line Data and Key Metrics Changes - Renewables Segment: Revenue increased by 92.5%, driven by the TerraSmart acquisition and 4% organic growth [21] - Residential Segment: Revenue increased by 17.7%, with organic growth of 12% and a 6% contribution from Architectural Mailboxes [24] - Agtech Segment: Revenue increased by 27%, despite project delays due to supply chain disruptions [27] - Infrastructure Segment: Revenue increased by 29.7%, driven by demand for fabricated products [31] Market Data and Key Metrics Changes - The solar market faced headwinds from significant input cost inflation and supply chain challenges, impacting project timing [21][22] - Demand remains strong across various segments, with a robust backlog indicating continued growth [22][24] Company Strategy and Development Direction - The company aims to scale its renewables and agtech businesses while managing inflation and optimizing the supply chain [39][41] - Continued focus on improving execution, health and safety, and investment in business systems to drive productivity [44][45] - The integration of TerraSmart is on track, with expectations for improved margins in the second half of the year [39][120] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing inflation and supply chain challenges but expressed confidence in the company's ability to navigate these issues [10][14] - The company reaffirmed its full-year guidance for revenue between $1.3 billion and $1.35 billion and adjusted EPS between $3.30 and $3.47 [49][48] - Management expects profitability improvements in each business segment as inflation subsides [20][47] Other Important Information - The company generated $14 million in cash from continuing operations, with a strong liquidity position [34][36] - The integration of TerraSmart is expected to drive positive results in the second half of the year [39][120] Q&A Session Summary Question: Can you provide context on renewable margins and cost pressures? - Management indicated that the TerraSmart acquisition impacted margins, and a one-time tariff credit from the previous year also played a role [58][59] Question: What is the confidence level regarding Agtech backlog translating to revenue? - Management expressed confidence that the backlog will contribute to revenue in the second half, with sequential improvement expected [78][79] Question: How are residential segment headwinds ranked? - Management ranked inflation as the primary headwind, followed by material availability and labor disruptions [90][92] Question: What is the outlook for cannabis-related businesses within Agtech? - Management noted that cannabis backlog is growing, indicating positive momentum in that market [101][104] Question: Can you elaborate on the integration of TerraSmart? - Management explained that the integration is progressing well, with expected margin improvements in the second half of the year [120][122]