Good day, ladies and gentlemen, and welcome to the Gibraltar Industries Fourth Quarter 2014 Earnings Conference Call. Today’s call is being recorded and webcast. My name is Kevin, and I’ll be your coordinator today. At this time, all participants will be in a listen-only mode. We will be conducting a question-and-answer session towards the end of the conference call. I would like to now turn the call over to your host for today, Mr. David Calusdian from the Investor Relations firm, Sharon Merrill. Please proceed.

Good morning everyone, and thank you for joining us. If you have not received a copy of the earnings press release that was issued this morning, you can find it in the Investor Info section of the Gibraltar website, gibraltar1.com. During the prepared remarks today, management will be referring to presentation slides that summarize the Company’s fourth quarter performance. These slides also are posted to the Company’s website. Please turn to Slide two in the presentation. The Company’s earnings release and slide presentation contain forward-looking statements about future financial results. 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 SEC filings, which can be also accessed through the Company’s website. Additionally, Gibraltar’s earnings release and remarks this morning contain non-GAAP financial measures. Reconciliations of GAAP to adjusted measures have been appended to the earnings release. On our call this morning is Gibraltar’s recently promoted Chief Executive Officer, Frank Heard and Chief Financial Officer, Ken Smith. At this point, please turn to slide three in the presentation and I’ll turn the call over to Frank.

Thanks, David. Good morning everyone, and thank you for joining us on our call today. Gibraltar closed 2014 with a solid fourth quarter. Net sales exceeded the high end of our guidance growing 7% year-over-year. Adjusted earnings per share came in near the top end of our range at $0.02 per share. The company’s revenue growth was driven by increased sales of our postal storage plus roofing related products and the residential product segment while the combined demand from industrial and transportation infrastructure markets remained weak. For the full year, net sales were up 4% at the high end of our previous guidance and full year profits matched the high end of our guidance at an adjusted $0.47 per share. With that said, I’m speaking for the entire leadership team our goals are to achieve stronger financial results, make more efficient use of capital and deliver higher shareholder returns. If we expect to make meaningful progress towards achieving these goals, we’ll need to be aggressive in three key areas. The first is operational excellence, the second is portfolio management and the third is to make effective use of acquisitions as a strategic accelerator for the business. I’ll discuss our strategic plan which includes these three key areas and provide some thoughts on 2015 after Ken reviews our financial results. Then we’ll open the calls to any questions that you may have. So with that, I’ll turn the call over to Ken.

Thanks, Frank and good morning. Now let’s turn to slide four titled, Consolidated Results. As Frank pointed out, fourth quarter revenues were up 7% year-over-year as the unit volume increased sales by 700 basis points while pricing contributed a positive 90 basis points while foreign currency effects reduced revenues 90 basis points. The fourths quarters adjusted operating income and EPS were lower than last year and did not benefit from this quarters volume increase. The largest unfavourable factors were the shortfall in our planned compared to the expansion for postal products, followed by a continuing weak environment for broad based price increases but which offset inflationary cost that we absorbed. And lastly, a lot profitable mix within our industrial and infrastructure segment. Next, but before describing the performance of each segment, I do want to comment on the fourth quarter non-cash impairment charge that was included in our GAAP results, the majority of that charge relates to our industrial and infrastructure product segment. As we have previously and regularly reported, revenues and margins in this segment have declined due to a variety of factors, including but not limited to slower economic conditions, excess capacity and increased competition and the ongoing uncertainty of government funding for U.S. transportation projects. While this impairment is a non-cash charge it does provide an indicator the near term financial outlook for these related businesses that I’ll describe when I explain our 2015 guidance. And most importantly, it provides a continuing reminder that future acquisitions must be rigorously reviewed and vetted by us. Frank will put some color on this point in his concluding remarks. Next, I’ll talk about each of our two segments starting with slide five, the Residential Products highlights. End market demand from residential housing markets were strong this quarter, the majority of…

Thank you, Ken. In light of the guidance that Ken just outlined we are looking at 2015 as a transition year fuelled by new leadership with new initiatives to drive sales, margins, earnings and returns. Some of these initiatives are underway and are factored into our guidance while others have not yet launched. These amount to significant but incremental improvements and we expect to see stronger results in 2015 because of them. At the same time this year won’t be the game changing best-in-class performance that we are committed to delivering longer term especially given the market outlook that Ken just described. At the start of our call I mentioned that our strategy includes three areas, operational excellence, portfolio management and the acquisition as strategic accelerator. Executing on this strategy means making thoughtful and efficient use of capital as it relates to our existing operations and future acquisitions making sure that whatever decisions we make are going to be sustainable going forward. It also means higher expectations as it relates to the senior leadership team, the corresponding strategic and tactical plans and our financial targets. Wrapped around that are higher standards of accountability for our leadership, and a greater sense of urgency in the way we push teams throughout the organization. With effective leadership even the best analytical and assessment work and the most thoughtful strategic planning will not alone allow us to achieve our goals. We’ve reviewed our existing businesses and supporting leadership teams in the context of not just who we are today, but more importantly with a view to what we want Gibraltar to achieve in the future. During the past six months, we’ve made key changes in our leadership at the business level across the company, while at the same time bringing complimentary skill sets into…

Thank you. [Operator Instructions] Our first question today is coming from Ken Zener from KeyBanc Capital Markets. Please proceed with your questions.

Good morning, gentlemen.

Good morning, Ken.

Good morning, Ken.

Given – since you’re breaking your business up into residential and industrial, could you talk about the trends in residential that you saw were obviously very strong within your clusters. Could you give us a little sense of how that sales trends might look or visibility you have for that business in 2015, just so we can understand how you kind of mid single-digit growth, it sounds like in res will actually fallout. Is it going to be really lumpy as we try to understand the operating leverage in that business?

Ken, I think we have pretty good visibility. We do have an increase in backlog for that business platform, product platform compared to the year ago. So, even though it doesn’t fill out the full year of 2015 revenues, we think the underlying initiatives by postal authorities coupled with our backlog plus the ongoing replacement rates that have been steady for the single mail boxes will fulfill the guidance that we got for that platform embedded in our guidance.

So you guys talking about, I mean, if it’s single-digit, it going to continue, is it going to be stronger in the first half versus the back half? And the reason I’m asking that is your 100 basis points expansion corporate, I’m wondering if you could kind of give us a feel for how that 100 basis point EBIT expansion overall is going to play out within the segments given that obviously the high growth you had in cluster was part of a drag that you had as you finish the year?

I’ll start with a two-part answer to your question. One is we really stepped up the volume increases during 2014 beginning really in the second quarter of 2014. So, our most distinguishing differential between 2015 and 2014 will be in the first three to four months of this year where we’ll have sustaining growth incrementally impacting essentially the first three or four months of 2015, they grew the strong degree that it did in 2014 over 2013 for example. The second part of my answer is on the basis points. I do believe that the majority of our inefficiencies that we’ve been striving to drive out of the production of that product line will largely get behind us as we get in the second quarter. So, while I think the 100 basis points is annualize number, I think we could capture a majority of that in this calendar.

I think Ken, its Frank. Another point in that segment would be we had some relocation and integrations within the residential segment, within our roofing ventilation business that I think we will see the benefits of that relocation and resulting cost reductions start to show up in the first quarter of 2015 into the second quarter.

Okay. And then, so when you’re talking 100 basis points, I apologize if I missed it in your prepared remarks. But was that more 100 basis points corporate, is that being – is that equal across the segments, it sounds like obviously the industrial facing a lot more headwinds, so if you’re doing flat growth in industrial, are you guys expecting flat EBIT in that segment as well?

By 100 basis points remark related to the residential product segment margin…

Okay.

On an annualized number – on an annual basis, once we’ve got these inefficiencies wrung out of the production, which I describing as being the front half of second quarter this year.

Okay. And if I could ask one last question if you don’t mind. The industrial obviously with the oil or energy at 20%, could you give us an update in February as relates to the fourth quarter results in terms of pricing at the service centers, inventory? Thank you.

Well, raw material costs for steel continue to be volatile, but declining as existing -- finished up on the fourth quarter. And that’s been continuing trend into the front end of this first quarter. So inventory, I’d say generally we’re maintaining – been maintained leanly because buyers were hoping with the trend, downward would continue and they can subsequent purchases at even lower pricing points. So, part of my answer to you is that inventories continue to be lean particularly for the purchasers of standard product of our bargain [ph] equipment.

I think Ken, just add to that. I think that applies to the general industrial side of our core AMICO business. I think how that falling price of oil affects that business is tie to the fabrication side where we have slightly higher margins because of the some of the value added process since we do -- we sell into large projects into the oil and gas market in continental United States and Canada. That backlog, because those are the long term projects have not changed materially, but I would suggest that depending on how long the price of oil continues to flow in the range it is today will start to affect some of that capital spending in two, three years. These tend to be two, three, five years cycles on some of the length side and length of these projects. So we see that – we expect to see that new order book start to decline over the next 12 months.

Thank you very much.

You’re welcome.

Thank you. [Operator Instructions] At this time, we've reached the end of our question-and-answer session. I will now turn the conference back over to Mr. Heard for any closing or additional remarks.

Thanks, operator and thank you everyone for joining us today. We hope to see many of you on March 26, at our Investor Day. If you like more information on the event, please call our Investor Relations firm, Sharon Merrill at 617-542-5300. Thank you again. This concludes our call.