Gibraltar Reports Record Sales and Earnings in First Quarter
21 April 2000
Gibraltar Reports Record Sales and Earnings in First Quarter
First Quarter Net Income Up 21%
Sales Expected to Increase to $700 Million in 2000
BUFFALO, N.Y., April 19 Gibraltar (Nasdaq: ROCK) today
reported record sales and earnings for the quarter ended March 31, 2000. For
the year, Gibraltar said it expects to generate sales of approximately
$700 million, and it expects that 2000 will be its ninth consecutive year of
record sales and earnings.
Sales in the first quarter of 2000 were approximately $168 million, up
17 percent from $144 million in the first quarter of 1999. Net income in the
first quarter of 2000 increased by 21 percent to $6.0 million, or $.47 per
diluted share, compared to $5.0 million, or $.39 per diluted share, in the
first quarter of 1999.
"This was another excellent quarter for Gibraltar, and a great start on
what we expect will be another record year. The nine acquisitions completed
during the past two years, and continued growth from our existing operations,
all contributed to our record-setting first quarter results," said Brian
J. Lipke, Chairman and Chief Executive Officer.
"We continue to see strong demand in every part of our business, including
the automotive and construction products markets. We are taking steps to
fully utilize the manufacturing capacity in every part of our company, which
will allow us to substantially grow our business without significant capital
expenditures. And our pipeline of potential acquisitions remains full, which
gives us a number of strategic growth opportunities," said Mr. Lipke.
"We have clearly made our company stronger by broadening our product and
service offering, expanding and diversifying our customer base, extending our
reach into fast-growing geographic and steel-consuming markets, solidifying
our leadership in existing businesses and establishing a dominant position in
areas related to our core strengths, and enhancing our margins while reducing
their volatility," said Mr. Lipke.
"The consistency of our performance once again demonstrates how we have
made our company stronger by focusing on higher value-added products and
services, despite an environment where raw material prices have been
increasing. As our completed strategic review process determined, we are
clearly on the right track, our long-standing growth strategy is sound, and
there are a number of opportunities to continue our growth and improve our
performance," said Mr. Lipke.
"In the first quarter, one of the steps we took to improve our performance
was the divestiture of our Chattanooga, Tennessee, operation. While that
divestiture has impacted our sales, more importantly, our profitability and
return on sales, assets, equity, and invested capital will be positively
impacted," said Mr. Lipke.
"Another important step was our retaining of Xpedior (Nasdaq: XPDR) to
accelerate the development and implementation of our eBusiness strategy. We
view eBusiness as a way to leverage our existing business and accelerate the
creation of value for our shareholders," 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 3,200 employees and operates
49 facilities in 19 states and Mexico.
GIBRALTAR STEEL CORPORATION
Financial Highlights
(in thousands, except per share data)
Three Months Ended
March 31, March 31,
2000 1999
(unaudited)
Net Sales $167,634 $143,804
Net Income $6,015 $4,977
Net Income Per Share-Basic $ .48 $.40
Weighted Average Shares Outstanding-Basic 12,579 12,496
Net Income Per Share-Diluted $ .47 $.39
Weighted Average Shares Outstanding-Diluted 12,717 12,712
GIBRALTAR STEEL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
March 31, December 31,
2000 1999
(unaudited) (audited)
Assets
Current assets:
Cash and cash equivalents $3,022 $4,687
Accounts receivable 93,392 78,418
Inventories 98,179 94,994
Other current assets 4,723 4,492
Total current assets 199,316 182,591
Property, plant and equipment, net 210,061 216,030
Goodwill 114,489 115,350
Other assets 8,657 8,109
$ 532,523 $ 522,080
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $53,726 $48,857
Accrued expenses 19,957 19,492
Current maturities of long-term debt 175 1,319
Total current liabilities 73,858 69,668
Long-term debt 235,547 235,302
Deferred income taxes 29,476 29,328
Other non-current liabilities 2,418 2,323
Shareholders' equity
Preferred shares -- --
Common shares 126 126
Additional paid-in capital 68,387 68,323
Retained earnings 122,711 117,010
Total shareholders' equity 191,224 185,459
$ 532,523 $ 522,080
GIBRALTAR STEEL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share data)
Three Months Ended
March 31,
2000 1999
(unaudited)
Net sales $167,634 $143,804
Cost of sales 133,086 115,386
Gross profit 34,548 28,418
Selling, general and
administrative expense 20,230 16,735
Income from operations 14,318 11,683
Interest expense 4,208 3,319
Income before taxes 10,110 8,364
Provision for income taxes 4,095 3,387
Net income $6,015 $4,977
Net income per share - Basic $.48 $.40
Weighted average shares outstanding - Basic 12,579 12,496
Net income per share - Diluted $.47 $.39
Weighted average shares outstanding - Basic 12,717 12,712
GIBRALTAR STEEL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
Three Months Ended
March 31,
2000 1999
(unaudited)
Cash flows from operating activities
Net income $6,015 $4,977
Adjustments to reconcile net income to
net cash (used in) provided by
operating activities:
Depreciation and amortization 5,116 4,021
Provision for deferred income taxes 81 731
Undistributed equity investment income (318) (210)
Other noncash adjustments 29 29
Increase (decrease) in cash resulting from
changes in (net of acquisitions):
Accounts receivable (14,974) (9,738)
Inventories (3,185) 8,380
Other current assets (165) (595)
Accounts payable and accrued expenses 5,431 7,226
Other assets (329) (250)
Net cash (used in) provided by
operating activities (2,299) 14,571
Cash flows from investing activities
Purchases of property, plant and equipment (5,302) (4,878)
Net proceeds from sale of
property and equipment 7,114 147
Net cash provided by (used in)
investing activities 1,812 (4,731)
Cash flows from financing activities
Long-term debt reduction (14,771) (19,808)
Proceeds from long-term debt 13,872 13,953
Payment of dividends (314) (626)
Net proceeds from issuance
of common stock 35 34
Net cash used in
financing activities (1,178) (6,139)
Net (decrease)increase
in cash and
cash equivalents (1,665) 3,701
Cash and cash equivalents at beginning of year 4,687 1,877
Cash and cash equivalents at end of period $3,022 $5,578
Gibraltar's news releases, along with comprehensive information about the
Company, are available on the Internet, at http://www.gibraltar1.com.