Gibraltar Reports Record Sales and Earnings in 1999
25 January 2000
Gibraltar Reports Record Sales and Earnings in 1999
Earnings in Year Climbed 26 Percent, Annual Sales Grew by 11 Percent;
1999 is Eighth Straight Year of Record Sales and Earnings
BUFFALO, N.Y., Jan. 25 -- Gibraltar today
reported record sales and earnings for the quarter and year ended
December 31, 1999. The Company also said that 1999 was its eighth straight
year of record sales and earnings.
In 1999, sales were $622 million, an 11 percent increase from $558 million
in 1998. Sales in the fourth quarter of 1999 were $155 million, up 8 percent
from $144 million in the fourth quarter of 1998.
Net income was $25 million in 1999, an increase of 26 percent from
$19.8 million in 1998. Earnings per diluted share were $1.95 in 1999,
compared to $1.57 in 1998. Net income in the fourth quarter of 1999 was
$5.5 million, or $.43 per diluted share, compared to $4.8 million, or $.38, in
the fourth quarter of 1998.
In the six years since its Initial Public Offering (1994-1999), Gibraltar
has increased its sales at a compound annual growth rate of 24 percent, and
its net income has advanced at a 23 percent rate. The Company is committed to
generating annual sales of $1 billion or more, and net income of at least
$45 million, by 2003 or sooner, by growing its top and bottom lines by at
least 20 percent a year. Six years into its ten-year plan, Gibraltar is well
ahead of its ambitious growth schedule, and the Company believes it can
further accelerate its progress.
"This was another outstanding year for Gibraltar. We generated record
sales and earnings, and we have increased our top and bottom lines for eight
years in a row. We made four immediately accretive acquisitions in the last
six months (nine in the last two years), and we strengthened our leadership
position in each of our key business areas. We extended our geographic and
customer reach, increased and stabilized our margins, and we intensified the
focus in every part of our company on improving our return on investment. As
a result of these initiatives, Gibraltar today is stronger than at any point
in its history," said Brian J. Lipke, Chairman and Chief Executive Officer.
"The steps we took to strengthen Gibraltar in 1999 position us to move the
company to an even higher level of performance. We have nearly completed an
extensive strategic review of our company. We looked at every facet of our
operations, and evaluated every opportunity to maximize value for our
shareholders. This exhaustive process concluded that our longstanding growth
strategy is sound, and that we are on the right track. As a result of this
review, we have identified even more opportunities to continue the growth of
our company and improve our performance, and we look forward to building on
our record of achievement and success," said Mr. Lipke.
"As we look ahead to the new year, demand trends in all of our major
businesses remain strong, which should contribute to our continued growth. We
are aggressively looking for ways to fully capture the many synergies
throughout our company. And our pipeline of potential acquisitions is full,
giving us a number of strategic growth opportunities," said Mr. Lipke.
"In the coming year, our increased product and geographic diversification,
our focus on higher value-added products and services, our push to increase
our sale of higher-margin manufactured end products (which now account for
approximately 45 percent of our total sales, compared to 14 percent in 1993),
and the growth in those parts of our company that do not have a raw material
cost component in their selling price (like our heat-treating, distribution,
and trucking operations) will help mitigate the industry-wide trend toward
higher costs in some raw material categories.
"In addition, continued top-line growth throughout our company -- together
with an intense company-wide focus on cost control and maximizing asset
utilization -- has put us in an excellent position to continue building on our
record of success," 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; risks
associated with the integration of acquisitions; and changes in interest or
tax rates.
Gibraltar is a growth-oriented company, with expanding operations in the
building and construction products, metal processing, and commercial
heat-treating markets. The Company serves approximately 9,000 customers in a
variety of industries. It has approximately 3,100 employees and operates
50 facilities in 19 states and Mexico.
GIBRALTAR STEEL CORPORATION
Financial Highlights
(in thousands, except per share data)
Three Months Ended
December 31, 1999 December 31, 1998
(unaudited)
Net Sales $154,964 $144,051
Net Income $5,538 $4,822
Net Income Per Share-Basic $ .44 $.39
Weighted Average Shares
Outstanding-Basic 12,571 12,483
Net Income Per Share-Diluted $ .43 $.38
Weighted Average Shares
Outstanding-Diluted 12,851 12,685
Twelve Months Ended
December 31, 1999 December 31, 1998
(audited)
Net Sales $621,918 $557,944
Net Income $25,008 $19,840
Net Income Per Share-Basic $1.99 $1.59
Weighted Average Shares
Outstanding-Basic 12,540 12,456
Net Income Per Share-Diluted $1.95 $1.57
Weighted Average Shares
Outstanding-Diluted 12,806 12,651
Gibraltar's news releases along with comprehensive information about the
Company, are available on the Internet at http://www.gibraltar1.com.
GIBRALTAR STEEL CORPORATION
CONSOLIDATED BALANCE SHEET
(in thousands, except share and per share data)
December 31,
ASSETS 1999 1998
Current assets:
Cash and cash equivalents $4,687 $1,877
Accounts receivable 78,418 71,070
Inventories 94,994 99,351
Other current assets 4,492 3,536
Total current assets 182,591 175,834
Property, plant and
equipment, net 216,030 176,221
Other assets 123,459 86,380
$522,080 $438,435
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $48,857 $38,601
Accrued expenses 19,492 11,646
Current maturities of
long-term debt 1,319 1,351
Total current liabilities 69,668 51,598
Long-term debt 235,302 199,395
Deferred income taxes 29,328 25,289
Other non-current liabilities 2,323 1,845
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:
12,577,464 shares in 1999
and 12,484,418 shares in 1998 126 125
Additional paid-in capital 68,323 66,613
Retained earnings 117,010 93,570
Total shareholders' equity 185,459 160,308
$522,080 $438,435
GIBRALTAR STEEL CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
Net sales $154,964 $144,051 $621,918 $557,944
Cost of sales 122,655 117,300 493,945 456,449
Gross profit 32,309 26,751 127,973 101,495
Selling, general and
administrative expense 19,302 15,014 72,504 57,040
Income from
operations 13,007 11,737 55,469 44,455
Interest expense 3,699 3,701 13,439 11,389
Income before taxes 9,308 8,036 42,030 33,066
Provision for
income taxes 3,770 3,214 17,022 13,226
Net income $5,538 $4,822 $25,008 $19,840
Net income per
share - Basic $.44 $.39 $1.99 $1.59
Weighted average
shares outstanding
- Basic 12,571 12,483 12,540 12,456
Net income per
share - Diluted $.43 $.38 $1.95 $1.57
Weighted average
shares outstanding
- Diluted 12,851 12,685 12,806 12,651
GIBRALTAR STEEL CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
Year Ended December 31,
1999 1998 1997
CASH FLOWS FROM
OPERATING ACTIVITIES
Net income $25,008 $19,840 $16,416
Adjustments to reconcile
net income to net cash
provided by operating activities:
Depreciation and amortization 17,452 13,333 8,478
Provision for deferred
income taxes 2,383 1,693 2,227
Undistributed equity
investment income (466) (284) (444)
Other noncash adjustments 697 304 239
Increase (decrease) in cash
resulting from changes
in (net of effects
from acquisitions):
Accounts receivable (118) (5,363) (176)
Inventories 6,873 (6,309) 1,607
Other current assets (272) (1,430) (726)
Accounts payable
and accrued expenses 10,242 (7,572) (2,597)
Other assets (1,130) (899) (289)
Net cash provided by
operating activities 60,669 13,313 24,735
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions, net of
cash acquired (65,380) (99,415) (26,475)
Investments in property,
plant and equipment (21,999) (22,062) (21,784)
Net proceeds from sale of
property and equipment 2,838 187 1,050
Net cash used in
investing activities (84,541) (121,290) (47,209)
CASH FLOWS FROM FINANCING ACTIVITIES
Long-term debt reduction (67,160) (61,508) (79,962)
Proceeds from long-term debt 94,081 168,825 98,417
Payment of dividends (1,253) -- --
Net proceeds from issuance
of common stock 1,014 100 911
Net cash provided by
financing activities 26,682 107,417 19,366
Net increase (decrease) in cash
and cash equivalents 2,810 (560) (3,108)
Cash and cash equivalents
at beginning of year 1,877 2,437 5,545
Cash and cash equivalents
at end of year $4,687 $1,877 $2,437