Gibraltar Industries, Inc.

Greetings ladies and gentlemen and welcome to Gibraltar Industries quarter three of 2022 earnings conference call. At this time all participants are in listen only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the call, please press star then zero on your telephone keypad. As a reminder, this conference is being recorded. It is my pleasure to introduce the host, Carolyn Capaccia of LHA. Please go ahead.

Thank you, Operator. Good morning, everyone, and thank you for joining us today. With me on the call is Bill Bosway, Gibraltar Industries Chairman, 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 investors section of the company's website, Gibraltar.com. As previously noted, Gibraltar classified the processing equipment business in the ag tech segment as held for sale with first quarter 2022 results and has removed the related revenues and expenses from the processing business from adjusted results. Gibraltar's earnings press release and remarks contain non-GAAP financial measures. Tables of reconciliation of GAAP to adjusted financial measures can be found in the earnings press release that was issued today. Also, as noted on slide two 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 FCC filings, which can be accessed through the company's website. Now I'll turn the call over to Bill Bosway. Bill?

Thanks, Carolyn. Hey, good morning, everybody, and thank you for joining today's call. We'll start with an overview of our third quarter results. Tim will take you through our financial performance, and I'll come back and update you on our outlook for the rest of the year. and then we'll open the call for your questions. So let's get started by turning to slide three, titled Third Quarter 2022 Results. You know, 2022 continues to unfold in line with our expectations, and we delivered a strong quarter with adjusted revenue up 6%, adjusted operating income up 16%, adjusted EBITDA up 14%, and adjusted EPS up 19% to $1.12 per share. All four of our segments delivered double-digit operating margin performance, and the residential and infrastructure businesses both generated solid revenue growth as well. In our residential business, we acquired Quality Aluminum Products, which broadens our geographic channel and product footprint for the business, and Quality Aluminum Products added two cents to our adjusted EPS in the quarter. Our backlog decreased 7% during the quarter to $356 million. Driven by lower backlog in our renewables and ag tech businesses, As we experienced during the second quarter, it remains challenging for our renewables customers to finalize contracts and schedule projects as the solar panel supply chain learns how to work through the new UFLPA importation requirements. The UFLPA went into effect in June, and the industry expects to see more efficiency, reliability, and scale with the importation process in the first half of 2023. In our ag tech business, although project design and code activities is robust, backlog was down at the end of the quarter. when compared to last year's strong order inflow. But we anticipate new bookings to increase as we finish 2022. Focus on our five key performance initiatives have not changed, and given our year-to-date results and current demand profile, we are raising the lower end and narrowing the range of our gap and adjusted EPS outlook, and we're also reaffirming our outlook for consolidated revenue. Let's turn to slide four, and we'll talk a little bit about commodity prices, supply chain, and general inflation. Hot roll coil steel and aluminum spot prices have corrected further as global and regional demand and supply becomes more aligned. And we've also seen slight improvement in structural and plate steel spot prices. In general, steel and aluminum spot prices remain above pre-pandemic levels, and other cost inputs, labor, transportation, et cetera, remain inflated and are expected to continue in the near term. Our supply chain is performing better, and we continue to focus on reliability and consistency as we accelerate customer service levels and improve working capital performance. We also continue to work diligently to balance price actions and input costs in a timely manner, accelerate our 80-20 initiatives for productivity and cost reduction, and manage and optimize contract terms with our customers. Let's move to slide five for an update on a panel supply for the solar industry. So the two trade issues impacting solar panel supply, the UFLPA enforcement continues to have the greatest near-term impact on customers' ability to move forward with projects. Just as a reminder, the UFLPA was implemented in late June and is enforced by the U.S. Customs Board of Protection. While customers continue to work with CBP to understand documentation requirements, panel import flow and availability has remained a challenge for customers. Our industry contacts concern progress is being made, albeit slower than expected, and expect panel flow to improve in the first half of 2023. On the second issue, the Department of Commerce delayed its preliminary ruling on the ADCVD investigation from late August to later this month, November 22nd, and with its final ruling now expected in April of 2023. We still expect the DOC's preliminary ruling will provide solid direction to the industry on what to expect in the final ruling. Keep in mind, the administration has instructed the DOC to implement a two-year waiver on tariffs And we expect the DOC will execute in order to do so in conjunction with or around the time of the DOC's preliminary ruling on the ADCBD case. I'd say despite the near-term impact of these trade issues, given the role solar energy production continues to play in U.S. energy policy, the ongoing investment in the industry, the size and growth of the industry, and the substantial increase in incentives from the Inflation Reduction Act over the next 10 years, We really remain very excited about our future in this industry and expect the US solar industry to accelerate even faster. We are also in a very good position to accelerate our business as well. So with that, I'll turn it over to Tim for a review of our results.