Gibraltar Industries Inc. (ROCK) filed Quarterly Report for the period ended 2009-09-30.
Gibraltar Industries Inc. is a leading manufacturer processor and distributor of metals and other engineered materials for the building products vehicular and other industrial markets. Gibraltar Industries Inc. has a market cap of $343.3 million; its shares were traded at around $11.39 with and P/S ratio of 0.3. Gibraltar Industries Inc. had an annual average earning growth of 4.3% over the past 10 years.
Highlight of Business Operations:
Net sales decreased by $116.7 million, or 34.1% to $225.2 million for the three months ended September 30, 2009 compared to $341.8 million for the three months ended September 30, 2008. The economic downturn and its effect on the key end markets we serve led to the significant drop in sales. Foreign currency fluctuations also contributed to a $3.0 million decrease in net sales during the three months ended September 30, 2009 compared to the same period in the previous year.
Net sales in our Building Products segment decreased by $87.0 million, or 31.4%, to $190.5 million for the three months ended September 30, 2009 from net sales of $277.5 million for the three months ended September 30, 2008. Excluding the $3.0 million impact of exchange rate fluctuations, the decrease in net sales was $84.0 million, or 30.3% from the same period in the prior year, primarily as a result of a decrease in sales volume due to a significant slowdown in the residential building, commercial construction, architectural, and industrial markets.
Selling, general and administrative expenses decreased by $9.2 million, or 22.5%, to $31.6 million for the three months ended September 30, 2009 from $40.8 million for the three months ended September 30, 2008. The $9.2 million decrease is the primarily the result of a $5.0 million decrease in payroll-related expenses resulting from our staff reductions and the impact of our other related cost cutting initiatives. Despite our efforts to reduce costs, selling, general and administrative expenses as a percentage of net sales increased to 14.0% for the three months ended September 30, 2009 from 11.9% for the three months ended September 30, 2008 as a result of the 34.1% reduction in net sales.
Corporate expenses decreased $4.3 million, or 46.2%, to $5.0 million for the three months ended September 30, 2009 from $9.3 million for the three months ended September 30, 2008. The decrease in corporate expenses is primarily attributable to lower compensation costs resulting from staffing reductions, lower incentive compensation expense, and a $1.1 million asset impairment charge for software no longer in use recorded during the three months ended September 30, 2008.
Interest expense increased $0.9 million to $7.9 million for the three months ended September 30, 2009 from $7.0 million for the three months ended September 30, 2008. The increase in interest expense is a result of a $1.2 million charge to write-off a portion of deferred financing fees arising from the Company’s amendment and restatement of the Senior Credit Agreement on July 24, 2009 and $0.8 million of losses generated from fair value fluctuations from our interest rate swap both recognized during the three months ended September 30, 2009. Excluding the $2.0 million of charges, interest expense decreased $1.1 million due to lower average borrowings during the three months ended September 30, 2009 compared to the comparable period in the prior year. We have reduced debt outstanding by $163.4 million, or 38.1%, to $265.4 million as of September 30, 2009 from $428.8 million as of September 30, 2008 through debt repayments.
Net sales in our Building Products segment decreased by $240.2 million, or 30.5%, to $547.7 million for the nine months ended September 30, 2009, from net sales of $787.9 million for the nine months ended September 30, 2008. Excluding the $17.0 million impact of exchange rate fluctuations, the decrease in net sales was $223.3 million, or 28.3%, from the same period in the prior year, primarily as a result of a decrease in sales volume due to a significant slowdown in the residential building, commercial construction, architectural, and industrial markets.
ROCK is in the portfolios of NWQ Managers of NWQ Investment Management Co.
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