Key Developments For Gibraltar Industries, Inc.
Gibraltar Industries, Inc. (ROCK.O) (Nasdaq)
Gibraltar Industries, Inc. Amends Senior Debt Agreement
Gibraltar Industries, Inc. announced that it has completed an amendment to its senior credit agreement with its syndicate of lenders. The Company had announced on its May 7, 2009, first-quarter earnings conference call that it was likely to renegotiate its senior credit agreement. Under the terms of the amendment, the lenders agreed to provide Gibraltar with an asset-based revolving credit facility of $200 million in commitments and a term loan of $58.7 million. At June 30, 2009, the Company had outstanding borrowings of $40.0 million on its revolver. The ABL revolver and the term loan mature in August and December 2012, respectively. Gibraltar also has $204 million of senior subordinated 8% notes that were issued in December 2005 at a discount to yield 8.25%. The notes, due December 1, 2015, were not affected by the amendment. The amendment also eliminated certain previous financial covenants, and instead requires the Company to achieve specified EBITDA amounts on the last day of each quarter through December 31, 2009, and thereafter, maintain a fixed charge ratio of 1.25. Interest rates on the term note and revolver will continue to be based on the London Interbank Offering Rate (LIBOR) with a LIBOR floor of 1.5%, plus an additional margin of 3.75% on the term note and, on the revolver, 3.25% plus a 0.5% commitment fee. The impact on pre-tax earnings is expected to approximate $1.0 million per quarter, or $0.02 per share, based on amounts outstanding as of June 30, 2009.
Gibraltar Industries, Inc. To Suspend Quarterly Dividends; Issues Q1 2009 Earnings Guidance Below Analysts' Estimates; Comments On Q2 2009 Earnings Guidance
Gibraltar Industries, Inc. announced that its Board of Directors has decided to suspend quarterly dividends with the expectation of reinstating payments when economic conditions and the Company's profitability improve. The Company also announced that it sees first quarter 2009 as being very challenging, with only marginally better earnings than the fourth quarter of 2008. The Company reported a $0.33 loss per diluted share for the fourth quarter of 2008. The Company is anticipating a return to profitability in the second quarter of 2009, aided by an expected increase in seasonal demand, although sales are likely to be unfavorable when compared to the second quarter of 2008. According to Reuters Estimates, analysts were expecting the Company to report EPS of $(0.04) for the first quarter of 2009 and EPS of $0.38 for the second quarter of 2009.
Gibraltar Industries, Inc. Announces the Closure Of Manufacturing Facility; Expects Not To Meet FY 2008 EPS Guidance
Gibraltar Industries, Inc. announced the closing of its Enterprise, MS, facility and the consolidation of its manufacturing operations into two other existing facilities, with no anticipated impact on sales. This consolidation is part of Gibraltar’s ongoing effort to streamline operations, reduce costs, and improve long-term operating efficiencies. Since the beginning of 2007, Gibraltar has streamlined its operations with 24 facility consolidations and the reduction of staffing levels by nearly 20%. The Company also said that while its October financial results were on target, business conditions deteriorated unexpectedly and precipitously in November and remain highly volatile and uncertain. Consequently, Gibraltar does not expect to meet its fiscal 2008 EPS guidance issued on November 5. However, the Company believes it is still on track to deliver a 20%-30% increase in fiscal 2008 earnings per share from continuing operations compared to 2007, excluding any fourth-quarter 2008 special charges. According to Reuters Estimates, analysts were expecting the Company to report EPS of $1.56 for fiscal 2008.
Gibraltar Industries, Inc. Declares Quarterly Dividend Payment
Gibraltar Industries, Inc. announced that its Board of Directors declared a cash dividend of $0.05 per share. The dividend will be payable on January 9, 2009, to shareholders of record on January 2, 2009.
Gibraltar Industries, Inc. Revises FY 2008 Guidance
Gibraltar Industries, Inc. announced that for fiscal 2008 it expects earnings per share from continuing operations to be in the range of $1.61 to $1.68 per diluted share if the sale of SCM had not occurred, compared to previous guidance of $1.50 to $1.65. However it has closed the SCM transaction on November 5, 2008; therefore, the results of SCM will be reclassified to discontinued operations for all periods presented. As a result, it expects fiscal 2008 earnings per share from continuing operations in the range of $1.47 to $1.54 per diluted share.
