Gibraltar Industries, Inc.
) reported adjusted earnings per share of 26 cents in the second
quarter of 2013, down 7.1% from 28 cents in the year-ago quarter.
It also missed the Zacks Consensus Estimate of 31 cents by 16.1%.
The decrease in earnings is attributed to lower-than-expected
revenues in the quarter.
On a GAAP basis, Gibraltar reported earnings of 25 cents per
share, declining by a penny year over year.
: In the reported quarter, net sales were $224.5 million, up 2.2%
year over year. The year-over-year increase in revenues was
primarily due to accretive acquisitions, offset by a reduction in
organic sales. However, revenues comprehensively missed the Zacks
Consensus Estimate of $243.0 million.
Gibraltar's repair and remodeling activities in infrastructure
as well as residential and low-rise commercial buildings markets
were below expectations, leading to a 5.0% decline in organic
: Adjusted gross profit margin in the quarter increased 70 basis
points to 20.2%. Adjusted selling, general and administrative
(SG&A) expenses for the quarter were $28.3 million, compared
with $25.4 million in the year-ago comparable quarter.
Gibraltar's adjusted operating margin of 7.6% decreased from
8.0% reported in the year-ago comparable quarter due to a hike in
Balance Sheet/Cash Flow
: Exiting the second quarter of 2013, Gibraltar's cash and cash
equivalents were approximately $44.6 million, compared with $30.3
million in the previous quarter. Total long-term debt balance
dropped marginally to $213.6 million against $214.0 million in
the preceding quarter.
For the six months ended Jun 30, 2013, Gibraltar generated
cash from operations of $5.3 million, against cash used in
operations of $2.0 million in the six months ended Jun 30, 2012.
Capital expenditure incurred in the first half of 2013 totaled
$4.7 million versus $4.6 million in the year-ago comparable
Gibraltar experienced lower-than-expected demand in the first
half of 2013. Although the company expects its acquired
businesses to contribute significantly to revenues in the coming
quarters, it is a tad bearish about organic growth in revenues.
It is also expected that Gibraltar's high revenue earner,
industrial markets, will face weakness in demand and pricing in
the coming quarters. As a result, in 2013, the company expects
margins and earnings to fall below 2012 levels, with a modest
increase in sales, led by acquisitions. Earnings per share in
2013 are expected to be in the range of 54 cents to 64 cents.
Other Stocks to Consider
Universal Stainless & Alloy Products Inc.
) released its second-quarter results on Jul 31, 2013. The
company reported earnings per share of 6 cents, missing the Zacks
Consensus Estimate of 16 cents by 62.5%.
AK Steel Holding Corporation
) released its second-quarter results on Jul 23, 2013. The
company reported a loss per share of 15 cents, narrower than the
Zacks Consensus Estimate of a loss of 55 cents by 57.1%.
) released its second-quarter results on Jul 18, 2013. The
company reported earnings per share of 27 cents, missing the
Zacks Consensus Estimate of 30 cents by 10.0%.
Gibraltar currently carries a Zacks Rank #4 (Sell).
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