Gibraltar Reports Record Sales and Earnings in 1997
27 January 1998
Gibraltar Reports Record Sales and Earnings in 1997; Sales Increased by 31% to $450 Million, Net Income Climbed to $16.4 Million
BUFFALO, N.Y., Jan. 27 -- Gibraltar Steel Corporation
today reported record sales and earnings for the 12 months
ended December 31, 1997, and record sales for the fourth quarter of 1997.
Sales were approximately $450 million in 1997, an increase of 31 percent
from $343 million in 1996. Sales in the fourth quarter of 1997 approximated
$108 million, an increase of approximately 25 percent from $86.5 million in
the fourth quarter of 1996.
Net income in 1997 was $16.4 million, or $1.33 per share, compared to
$16.0 million, or $1.42 per share, in 1996. In the fourth quarter of 1997,
net income was $3.5 million, or $.28 per share, versus $4.1 million, or $.33
per share, in the fourth quarter of 1996.
There were 12.4 million average shares outstanding for the quarter ended
December 31, 1997, compared to 12.3 million average shares in the fourth
quarter of 1996. In 1997, there were 12.4 million average shares outstanding,
compared to 11.3 million average shares in 1996 as a result of a successful
secondary public offering of approximately two million shares in June 1996.
"While 1997 was a good year for our company -- our best ever, in fact --
we had hoped for better," said Brian J. Lipke, Chairman and Chief Executive
Officer. "Nevertheless, we look to 1998 and beyond with a high level of
enthusiasm and excitement.
"The recent trends in steel prices -- together with our emphasis on cost
reductions and productivity enhancements -- should improve our margins in
1998.
"A number of our growth initiatives from 1997 -- the acquisitions of
Southeastern Metals Manufacturing Company and a new heat treat operation in
Athens, Alabama, and our investment in a new 56-inch mill in Cleveland, Ohio
-- bode well for the future," said Mr. Lipke.
"When we became a public company in November of 1993, we set some
aggressive, long-term goals for Gibraltar. We wanted to grow our annual sales
and earnings by 20 percent a year, on average, and increase our annual revenue
beyond the $1 billion mark and generate net income of at least $45 million by
2003, or sooner.
"We have now completed four of the ten years in this plan, each of which
has produced record sales and earnings, and we believe we are already 12 to
18 months ahead of our timetable. With improved performances from our
existing businesses -- and the successful acquisition of at least one company
per year, as we have done in each of the last three years -- we should further
accelerate our progress," said Mr. Lipke.
Information contained in this release, other than historical information,
should be considered forward-looking, and may be subject to a number of risk
factors, including: the impact of changing steel prices on the Company's
results of operations; changing demand for the Company's products; and changes
in interest or tax rates.
Gibraltar is a growth-oriented company and a leader in the intermediate
steel processing industry, specializing in high value-added, high-margin
processes and services. It provides steel products and related services to
approximately 6,000 customers in the automotive, automotive supply, metal
building and construction, steel, machinery, appliance, hardware, office
equipment, and electrical industries, among others.
The Company uses more than 20 different processes and services to produce,
manufacture, and distribute high-quality steel products such as cold-rolled
strip steel; heavy-duty steel strapping; galvanized, Galvalume(R), and
pre-painted sheet steel; and a wide array of metal products for the
residential and commercial construction markets. Gibraltar also provides
specialized heat-treating services of customer-owned parts and materials;
operates state-of-the-art materials management facilities; and through its
joint venture partnership, provides steel pickling.
GIBRALTAR STEEL CORPORATION
Financial Highlights
(in thousands, except share and per share data)
Three Months Ended
December 31, 1997 December 31, 1996
(unaudited)
Net Sales $107,961 $86,470
Net Income $3,486 $4,072
Earnings Per Share $.28 $.33
Weighted Average Shares
Outstanding 12,405,513 12,321,374
Twelve Months Ended
December 31, 1997 December 31, 1996
(audited)
Net Sales $449,700 $342,974
Net Income $16,416 $15,975
Earnings Per Share $1.33 $1.42
Weighted Average Shares
Outstanding 12,357,186 11,260,956
Gibraltar's news releases are available by calling 1-800-758-5804,
ext. 103722, or on the Internet at
http://www.prnewswire.com/cnoc/exec/menu?103722.
GIBRALTAR STEEL CORPORATION
Consolidated Balance Sheet
(in thousands, except share and per share data)
December 31,
ASSETS 1997 1996
Current assets:
Cash and cash equivalents $2,437 $5,545
Accounts receivable 49,151 40,106
Inventories 76,701 62,351
Other current assets 2,457 1,524
Total current assets 130,746 109,526
Property, plant and equipment, net 115,402 88,670
Other assets 35,188 24,311
$281,336 $222,507
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $38,233 $35,397
Accrued expenses 3,644 4,238
Current maturities of
long-term debt 1,224 1,218
Total current liabilities 43,101 40,853
Long-term debt 81,800 48,623
Deferred income taxes 15,094 10,364
Other non-current liabilities 1,297 923
Shareholders' equity
Preferred shares, $.01 par value;
authorized: 10,000,000 shares;
none outstanding -- --
Common shares, $.01 par value;
authorized: 50,000,000 shares;
issued and outstanding:
12,409,619 shares in 1997
and 12,322,400 in 1996 124 123
Additional paid-in capital 66,190 64,307
Retained earnings 73,730 57,314
Total shareholders' equity 140,044 121,744
$281,336 $222,507
GIBRALTAR STEEL CORPORATION
Consolidated Statement of Income
(in thousands, except share and per share data)
Three Months Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
Net sales $107,961 $86,470 $449,700 $342,974
Cost of sales 90,560 71,088 375,537 281,717
Gross profit 17,401 15,382 74,163 61,257
Selling, general
and administrative
expense 10,383 7,964 41,560 30,640
Income from
operations 7,018 7,418 32,603 30,617
Interest expense 1,208 632 5,115 3,827
Income before
taxes 5,810 6,786 27,488 26,790
Provision for
income taxes 2,324 2,714 11,072 10,815
Net income $3,486 $4,072 $16,416 $15,975
Net income
per share $.28 $.33 $1.33 $1.42
Weighted average
number of shares
outstanding 12,405,513 12,321,374 12,357,186 11,260,956
GIBRALTAR STEEL CORPORATION
Consolidated Statement of Cash Flows
(in thousands)
Year Ended December 31,
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $16,416 $15,975
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 8,478 6,246
Provision for deferred income
taxes 2,227 774
Undistributed equity investment
income (444) (528)
Gain on disposition of property
and equipment (68) (4)
Increase (decrease) in cash resulting
from changes in (net of effects
from acquisitions):
Accounts receivable (176) (1,225)
Inventories 1,607 (17,077)
Other current assets (726) 411
Accounts payable and accrued
expenses (2,597) 9,275
Other assets (289) (244)
Net cash provided by operating
activities 24,428 13,603
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions, net of cash acquired (26,475) (23,715)
Purchases of property, plant and
equipment (21,784) (15,477)
Proceeds from sale of property
and equipment 1,118 775
Net cash used in investing activities (47,141) (38,417)
CASH FLOWS FROM FINANCING ACTIVITIES
Long-term debt reduction (79,962) (78,195)
Proceeds from long-term debt 98,417 68,906
Net proceeds from issuance of common
stock 1,150 35,525
Net cash provided by financing
activities 19,605 26,236
Net (decrease) increase in cash and
cash equivalents (3,108) 1,422
Cash and cash equivalents at beginning
of year 5,545 4,123
Cash and cash equivalents at end of year $2,437 $5,545
SOURCE Gilbraltar Steel Corporation