Information contained in this presentation, other than historical information, should be considered forward-looking, and may be subject to a number

Transcription

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2 Information contained in this presentation, other than historical information, should be considered forward-looking, and may be subject to a number of risk factors, including: general economic conditions; the impact of the availability and the effects of changing raw material prices on the Company s results of operations; natural gas and electricity prices and usage; the ability to pass through cost increases to customers; changing demand for the Company s products and services; risks associated with the integration of acquisitions; and changes in interest or tax rates.

3 Gibraltar: Growth, Diversity, and Opportunity Proven growth strategy Diversified product mix with leading positions Broad geographic presence Blue chip customer base History of successful acquisitions Opportunities for organic growth Strong financial profile

4 Proven Growth Strategy

5 Our Accomplishments 1993 (IPO) Today (1) Facilities 9 93 States 4 29 states, Canada, Mexico & China Employees 500 4,400 Customers ,000 Segment Sales Building Products 0 $855 million (2) Processed Metal Products $168 million $455 million Thermal Processing 0 $108 million Manufactured End Product Sales 14% 64% (3) Gross Margin 17.5% 18.5% Operating Margin 7.7% 8.3% % of Sales Automotive 58% 22% (1) Year Ended December 31, 2005 (2) AMICO s LTM December 31, 2005 sales have been added to Building Products LTM December 31, 2005 sales (3) Projected 2006 %

6 Our Accomplishments Sales $ in millions Net Income $ in millions $1,600 $60 $1,400 $1,400.0 $50 $51.6 * $1,200 $1,000 $800 CAGR: 17.6% $1,178.2 $40 $30 CAGR: 17.7% $600 $20 $400 $200 $10 $0 $ pro forma sales * Net income before special charges

7 Our Financial Goals 20% average annual sales growth 20% average annual net income growth 20%+ gross margin 10%+ operating margin 6%+ net income margin Reduce SG&A to 10% or less of sales 10%+ ROIC Free cash flow of $50 million per year 5+ inventory turns/year Capex equal to depreciation

8 Diversified Product Mix

9 Gibraltar Products Are Present All Around Us Metal Roofing Structural Connectors Grilles and Registers Metal Lath Expanded Metal Soffit and Siding Ventilation Products Rain Carrying Systems Trims and Flashing Heat Treat Sinks Heat Treat Tools Process Auto Parts Mail Boxes

10 Diversified Product Offering Building Building Products Products Processed Processed Metal Metal Products Products Thermal Thermal Processing Processing 2005 sales: $615 million (52% of total sales) 2005 sales: $455 million (39% of total sales) 2005 sales: $108 million (9% of total sales) Products / / services Bar grating, metal lath, expanded metal Ventilation products Structural connectors Mailboxes Metal building accessories Cold rolled strip steel Non-ferrous metal powder Coated steel products Steel strapping Aluminum processing Assembly, brazing, and heat treating of torque converters Processor of powdered metal parts Industries served Retail home market Residential, commercial, and industrial construction Building materials Lumber Power and hand tools Aerospace Electronics Auto & Auto Supply Consumer products Automotive General manufacturing Customers The Home Depot Lowes Companies Menard Cashway Lumber ABC Supply Prime Source Chrysler General Motors BorgWarner Ford Motor Corp. Arrowhead Industries Focus on high margin, value-added products Ford Motor General Motors Getrag General Electric

11 Building Products Overview $615 million of 2005 sales Over 5,000 products; many with demand nationwide 65 facilities in 25 states and Canada Sales Sales ($ ($ in in millions) millions) CAGR = 20.4% $292.5 $249.8 $372.0 $477.3 $ Products and positions Metal bar grating, expanded metal, metal lath: #1 Ventilation Products: #1 Mailboxes: #1 Structural Connectors: #2 Operating Operating Income Income ($ ($ in in millions) millions) CAGR = 51.1% $15.6 $18.5 $38.9 $59.1 $ year growth objectives Expand through increased capacity utilization Enhance product offerings and penetration Streamline manufacturing and distribution process Seek acquisition opportunities Key Key customers customers Note: FY 2001 to FY 2005 reflect Milcor as a discontinued operation Market position data are management estimates 11

12 Processed Metal Products Overview Sales ($ in millions) Sales ($ in millions) $455 million of 2005 sales National supplier to blue chip customers 12 facilities in the U.S., Mexico, and China $ CAGR = 15.9% $272.8 $268.5 $395.3 $454.8 Products and Positions Cold-rolled strip steel: 40% market share Leading manufacturer in non-ferrous metal powder A leader in coated steel products Steel strapping: 1 of 4 domestic producers Operating Income ($ in millions) Operating Income ($ in millions) $ CAGR = 1.2% $32.3 $25.2 $43.6 $ year growth objectives Grow key customer accounts; market share initiatives Continued investment in leading technology Streamline manufacturing and distribution process Key customers Key customers Note: Market position data are management estimates 13

13 Thermal Processing Overview $108 million of 2005 sales Second-largest commercial heat treater in North America 16 facilities in 10 states and Canada Recent contract wins with GM and Ford Products and Positions Aluminum processing leader Leader in assembly, brazing, and heat treating of torque converters Leading processor of powdered metal parts Sales ($ in millions) Sales ($ in millions) $71.2 $80.2 $89.3 $103.7 $ $ CAGR = 11.0% Operating Income ($ in millions) Operating Income ($ in millions) CAGR = 11.1% $9.9 $9.4 $13.7 $ year Objectives Additional IS 21 partnerships (third-party in/outsourcing) Expand distribution and geographic footprint Acquisition opportunities Key customers Key customers Note: Market position data are management estimates 15

14 Diversified Product Mix Other 28% Steel & Other Metals 14% Auto Direct 23% Auto Indirect 35% Bar Grating 8% Roofing, Siding & Trim 13% Roof Ventilation 8% Metal Lath/Vinyl 8% Other Building & Construction Products 15% Auto Direct 9% Mailboxes 5% Auto Indirect 13% Sheet & Other Metals 9% Other 12% Primarily auto Diversified product offerings Largely commodity products Numerous end-markets *Pro forma with AMICO results

15 Broad Geographic Presence

16 AMICO Expands Gibraltar s Reach CHINA AMICO Plant AMICO Distribution center Gibraltar facility AMICO will complement Gibraltar with its national network, enabling the combined company to continue to provide consistent products and high service levels to an increasingly national customer base 32

17 History of Successful Acquisitions

18 A Culture of Growth 1972: Acquired Gibraltar Steel, a single-facility with $9 million in sales 1993: Initial Public Offering of 2.5 million shares at $11 per share 1996: Acquired Carolina Commercial Heat Treating and entered the heattreating business as a market leader 1997: Acquired Southeastern Metals, a major Southeastern U.S. metal building products manufacturer 2005: Acquired AMICO, American Wilcon, the Gutter Helmet product line, and SCM-China. Completed subordinated debt offering : Acquired Seneca Steel; Beals, McCarthy & Rogers; and Follansbee Metals 1995: Acquired Hubbell Steel and began supplying products to the metal building industry 1996: Completed secondary offering of approximately 2 million shares to raise $34 million : Made 18 acquisitions, formed a JV, grew all 3 business segments, and completed 2 additional stock offerings (2002 and 2003)

19 AMICO Product Line Overview Product line Bar grating Summary product description Heavy-duty open grid assembly used in a variety of applications Including walkways, platforms, safety barriers, drainage covers and ventilation grates Select applications Walkways Platforms Safety barriers Select end markets Pulp / paper Energy Industrial MRO Metal lath Light gauge galvanized steel that has been slit and stretched to form a rigid, non-raveling sheet filled with small openings Used as a structural base for stucco, tile or stone Exterior stucco Stone / tile work Condos / homes Strip mall Office bldg. Expanded metal Steel plates that have been pierced and expanded to form diamondshaped openings of uniform size and thickness Common applications include walkways, shelves, barriers, patio furniture and other situations where both visibility and security are necessary Barriers / fencing Walkways / catwalks Grating Mining Steel mills Security Petro-chemical Perforated metal Sheet metal stamped with a variety of holes, patterns and configurations Used in a multitude of applications in industrial, office and home settings Multitude of uses in industrial, office, home settings Agriculture Manufacturing Electronics Architecture Safety/ plank grating Strong sheet metal planks with various perforated openings stamped into the walking surface to provide excellent slip resistance Walkways Floorings Stairs Steel mills Transport. Processing Fiberglass grating Stock panels and custom fabricated products that are high-strength, lightweight, corrosion-resistant and maintenance-free Marine & offshore Stairs Waste water treatment Mining Vinyl products Durable vinyl products extruded into various shapes and used as accessories for edges, corners, and other areas requiring reinforcement Used for stucco and drywall applications Stucco / drywall lathing installation Condos / homes Strip mall Office bldg.

20 AMICO s Products Are Used Everywhere AMICO s products are utilized by virtually all businesses and consumers and constantly upgraded or replaced

21 Overview of Other 2005 Growth Initiatives SCM China Gutter Helmet American Wilcon Plastics Date Sept Sept Oct Products Copper oxides, powder, and flake Gutter protection systems Custom plastic-injection molded products Rationale Further diversifies customer base Presence in center of Chinese industrial market Broadens product line Diversifies customer base Synergies with existing businesses #1 position within its market Currently supplies two Gibraltar companies, and many other customers Strengthens manufacturing competence Better efficiency / output Lower costs

22 Disciplined Acquisition Strategy Numerous acquisition opportunities in every segment Target Financial Characteristics ROIC > Cost of Capital Immediately accretive to earnings 26 immediately accretive acquisitions since IPO Under-utilized assets with room to grow Target Operating Synergies Expand products, processes, and services Extend geographic penetration and reach Diversify customer base and business mix Offer long-term growth potential Proven management teams willing to stay Companies with compatible cultures

23 Opportunities for Organic Growth

24 Organic Growth Drivers Improve national account relationships to promote crossselling opportunities Leverage critical mass to improve market share and drive down costs Improve capacity utilization to increase competitive cost position Leverage growing distribution platform to lower costs and increase reach and market share

25 Strong Financial Profile

26 Stable and Consistent Margins 9.7% 9.8% 8.8% 10.8% 9.1% 10.4% 11.7% 11.8% 10.0% 11.1% 10.9% 12.1% 10.8% EBITDA margin Note: FY 2000 to FY 2005 reflect Milcor as a discontinued operation

27 Gibraltar: Growth, Diversity, and Opportunity Proven growth strategy Diversified product mix with leading positions Broad geographic presence Blue chip customer base History of successful acquisitions Opportunities for organic growth Strong financial profile

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