Good day, ladies and gentlemen and welcome to the Gibraltar Industries’ First Quarter 2015 Earnings Conference Call. Today’s call is being recorded and webcasted. My name is Melissa and I will be your coordinator today. At this time, all participants are in a listen-only mode. We will be conducting a question-and-answer session towards the end of the conference call. I would now like to 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 first quarter performance. These slides are also posted to the company’s website. Please turn to Slide 2 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 also be 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 are Gibraltar’s Chief Executive Officer, Frank Heard and Chief Financial Officer, Ken Smith. At this point, please turn to Slide 3 in the presentation and I will turn the call over to Frank.

Thanks, David. Good morning, everyone and thank you for joining us on our call today. We started the year out on a strong footing. Net sales increased 5% year-over-year, which reflected continued strong demand for our postal storage products as well as strength for our roofing-related products while demand from our industrial and transportation infrastructure markets remained weak. On the bottom line, adjusted earnings per diluted share grew to $0.06, a significant improvement over the loss of $0.05 per share in Q1 last year. In addition to volume leverage, our operational improvement initiatives are gaining traction and have had a positive effect on our Q1 profitability. We are encouraged by these results, but we know this is just the very beginning of what we intend to accomplish in future years. Many of you anticipated – participated in our first ever Investor Day a little over a month ago and at that event, we detailed our strategy to achieve best-in-class sustainable value creation over the long-term. After Ken reviews our first quarter financial results in more detail, I will discuss how we plan to leverage the four elements of our strategy to take our results from where we are today to deliver the type of shareholder returns we know we can achieve. So, with that, I will turn the call over to Ken.

Thanks, Frank and good morning. I will start by talking about Slide 4 entitled Consolidated Results and the increases on both the top line and bottom line. First quarter revenues benefited from the higher unit volume and pricing to a lesser degree, while the effects of a stronger U.S. dollar reduced revenues 200 basis points. On the bottom line, adjusted operating income and adjusted EPS both improved. The higher contribution of higher volume helped profitability as well as margin improvement actions taken during 2014, including a facility closure and sales channel adjustments plus improved price management. Concerning adjusted diluted EPS, this quarter also had an additional benefit from non-operating other income, where we reported $3 million of net gains on derivative contracts from hedges of foreign currencies and select raw material purchases related to transactions within our Residential Products segment. Of the $0.11 increase in adjusted EPS compared to last year, $0.06 were discrete to the first quarter 2015, representing a non-operating income with the net gains from derivative contracts. And I described these net gains were $0.06 as discrete to the first quarter based on a scenario that the prices on the underlying hedged currencies and metals do not change after March 31, 2015, in which case there would be no further gain or loss in subsequent quarters. Nonetheless, with or without the derivative benefit, we had a good improvement in earnings this quarter compared to last year driven by controllable internal operational initiatives. Next, I will talk about each of our two reporting segments starting with Slide 5, the Residential Products. End-market demand from residential housing markets continue to be favorable complemented by the continuing secular growth in the sales of postal and parcel storage products, which were up substantially following two successive years of plus 20% organic…

Thank you, Ken. As I mentioned at the outset of our call at our recent Investor Day, we outlined our strategy to deliver best-in-class and sustainable value creation for our shareholders for the long-term. This value generating strategy has four key elements, including operational improvement, portfolio management, product innovation and acquisitions as a strategic accelerator. Through this strategy, we are leading a transformational change in our portfolio and our financial results. And our goals are to double our revenue, quadruple our earnings, grow our market capitalization to $1 billion and achieve best-in-class shareholder return. In achieving this vision, we expect to become more relevant in the capital markets once again. I would like to spend some time today to review the strategy and provide more detail than we have offered it on our past calls. Let’s start with operational excellence. At the heart of our operational excellence initiative is simplifying the business, which leads to enhancing our margin profile. As Ken cited in his remarks, we have taken recent measures to align our cost structure to market demand, consolidating facilities and improving operational efficiencies. Of course, the earnings improvement in our Q1 results is just the beginning. We are well along in implementing our operational priorities and focused on those aspects that can generate the highest benefits in the future. The foundation of our operational improvement efforts will be based on improving 80-20 simplification process. In a quadrant analysis of most businesses, one finds that 25% of the customers make up 89% of the revenue and 150% of the profitability. We are refocusing our customer efforts on those who bring in the vast majority of our revenue and profit. At the same time, we are treating our other customers differently, but fairly in order to raise their sales and margin…

Thank you. We will now be conducting question-and-answer session. [Operator Instructions] Our first question comes from the line of Ken Zener Our first question comes from the line of Ken Zener with KeyBanc Capital Markets. Please proceed with your question.

Good morning, gentlemen.

Good morning, Ken.

Frank, so industrial is the delta to the downside this quarter versus last quarter when you gave guidance with industrial down 5% or about $20 million in sales – no, that’s from energy, what did you do in the quarter, what shifted that enabled you to maintain guidance given that kind of headwind is the first part of my question. And then second, given the shift or uncertainty in terms of those end markets, what action can you take if there is another incremental deceleration?

To your first question Ken, we did – the downturn in the end markets relative to the oil and gas wasn’t a surprise to us, though in the fourth quarter we began to – that management team began to reflect on strategies, operational strategies, I guess they could – their mandate like everybody was to protect their operating income and despite the downturn in revenue, you would try to resize and position your businesses operationally to protect the bottom line. And they had done a lot of that thinking late in the fourth quarter. And as they saw the trends continue they were able to kind of execute on those initiatives to properly resize their facilities and size of their staffing to accommodate the downturn. And to be quite honest, they did a very nice job, so we are quite pleased with it. If we – we don’t expect to see another step-down in end market activity and that we think we are running across the bottom of the trough. And they have done some nice work from a price management perspective. Their historical purchases that they had made at higher prices in raw materials have flowed through the system. And their pricing strategies, I think are going to allow them to not only protect that month number, but certainly give them a little bit more room to maneuver it if they get another unplanned event in terms of end market activity.

Alright. I guess this might be too narrow of a question, but with energy – obviously, oil is starting to recover, it seems like the rig counts are starting to improve, I mean is that something considering the deceleration impacted your business, if oil continues to strengthen or the rig counts actually start coming back on because of the pricing, would that be an event that could potentially shift you up by the third quarter or what type of visibility do you have into that or how would that translate into your...?

Well, it’s hard to target out that far Ken, but it’s – the trends continued to be meaningful degrees. Yes, they could have a favorable bearing on this segment’s performance.

Okay. Then switching over – I am sorry.

I am done. I ended.

Switching over to residential, if it’s okay. You highlighted the roofing volume was up 10%, which – given what we are hearing from specialty roofing sales, specifically on the shingle side, it seems like that was actually pretty good, was there a preload in, can you talk about inventory, was there something special that gave you that good growth in 1Q?

The – that improvement is contrary to some of the other benchmarks, the one like you mentioned came from sales programs that this segment implemented in 2014 and it increased customer base and penetration of its sales into that. It’s now carrying over more fully in the first quarter that really weren’t fully in place in the first quarter of 2014. So it’s actually a market share gain that’s coming through on this first quarter.

And then given the growth that you expect in residential to be offsetting the industrial broadly and specifically in postal, where you are up 50% this quarter, in 4Q you were up 40%, you talked about that rate of acceleration even to decelerate in the back half, could you give us a sense of how that slope might look if you think about first half growth in res versus the second half within your guidance just so we can properly understand that very high growth rate you are seeing and how that will normalize? Thank you very much.

I think it’s in the first half would be probably plus 20% of this year compared to the comparable period last year and the back half of the year is probably closer to 9%, 10% growth compared to second half of ‘14.

Good. Thank you very much gentlemen.

Thank you.

Thank you. [Operator Instructions] Ladies and gentlemen, we have come to the end of our question-and-answer session. I would like to now turn the floor back over to Mr. Heard for any closing or additional remarks.

Thank you, Operator. And thank you, everyone, for joining us today. Between now and our next call, we will be presenting Gibraltar at KeyBanc’s Industrial Conference on May 28 in Boston as well as the CJS Securities New Ideas Summer Conference on July 14 in White Plains, New York and we hope to see you all there. Thank you again.