Gibraltar Industries, Inc. (NASDAQ:ROCK) Q4 2019 Earnings Conference Call - Final Transcript

Feb 28, 2020 • 09:00 am ET


Gibraltar Industries, Inc. (NASDAQ:ROCK) Q4 2019 Earnings Conference Call - Final Transcript


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Greetings and welcome to Gibraltar Industries Fourth Quarter 2019 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Carolyn Capaccio, Senior Vice President of LHA. Thank you. You may begin.

Carolyn Capaccio

Thank you, operator. Good morning, everyone, and thank you for joining us today. With me on the call is Bill Bosway, Gibraltar Industries' President and Chief Executive Officer; and Tim Murphy, Gibraltar's Chief Financial Officer. The earnings press release that was issued this morning as well as a slide presentation that management will use during the call are both available in the Investor Information section of the Company's website

As noted on Slide 2 of the presentation, the earnings press release and slide presentation contain forward-looking statements with respect to future financial results. These statements are not guarantees of future performance and the Company's actual results may differ materially from the anticipated events, performance or results expressed or implied by these forward-looking statements. Gibraltar advises you to read the risk factors detailed in its SEC filings, which can also be accessed through the Company's website. Additionally, Gibraltar's earnings press release and remarks contains non-GAAP financial measures. Reconciliations of GAAP to adjusted financial measures have been appended to the earnings release and slides.

Now, I will turn the call over to Bill Bosway. Bill?

William T. Bosway

Thanks, Carol, and good morning, everybody, and thank you for joining the call this morning. Let me begin with sharing highlights of the quarter and then we'll have Tim review our overall financial results as well as results from each of our business segments. And then, after Tim's review, I'd like to take a few minutes and just preview some initial thoughts regarding our go-forward strategy, which I'll do an in-depth review of our strategy at our Investor Day on March 18 in New York City and I hope all of you will be able to join us. Then, I'll finish up with our 2020 guidance and then we'll open the call for your questions.

So let's start with Slide 3. Our fourth quarter results reflected our momentum from the third quarter. We continued to execute our growth and margin plan, and delivered solid operating and financial results. We finished the fourth quarter consistent with our expectations with revenue growing just over 7% to $258 million, of which 5.3% of that was generated organically. The remaining 1.8% was generated from our Renewable Energy & Conservation segment's acquisition of Apeks Supercritical, which is our first strategic investment into extraction processing, and we completed that in the third quarter.

As well, we delivered solid earnings and cash performance, with our GAAP EPS up 10%, adjusted EPS up 32% and cash from operations of $57 million. Our results reflect more consistent operating performance, better productivity across our operations and supply chain. We've had some obvious solid volume leverage and continued focus on our working capital management performance. We also benefited from market, business and product mix during the quarter. Our backlog continued to strengthen in