What changed in this filing

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Item 1. Business

2023-02-22 compared with 2022-02-23 · 194 added, 247 removed, 82 unchanged (84% of the section changed)

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(the "Company") is a leading manufacturer and provider of products and services for the renewable energy, residential, agtech and infrastructure markets.

Our mission is to make life better for people and the planet, fueled by advancing the disciplines of engineering, science, and technology.

We are innovating to reshape critical markets in sustainable power, comfortable living, and productive growing throughout North America.

Furthermore, we strive to create compounding and sustainable value for our stockholders and stakeholders with strong and relevant leadership positions in higher growth, profitable end markets focused on addressing some of the world's most challenging opportunities.

The Company's mission is to make life better for people and the planet, fueled by advancing the disciplines of engineering, science, and technology.

The Company is innovating to reshape critical markets in sustainable power, comfortable and efficient living, and productive growing throughout North America.

Furthermore, the Company strives to create compounding and sustainable value for its stockholders and stakeholders with strong and relevant leadership positions in higher growth, profitable end markets focused on addressing some of the world's most challenging opportunities.

The foundation of the Company's strategy is built on three core pillars:

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Business System reflects the necessary systems, processes, and management tools required to deliver consistent and continuous performance improvement, every day.

Our business system is a critical enabler to grow, scale, and deliver our plans.

Our focus is on deploying effective tools to drive growth, improve operating performance, and develop the organization utilizing 80/20 and lean quote-to-cash initiatives along with digital systems for speed, agility and responsiveness.

Our Business System challenges existing paradigms, drives day-to-day performance, forces prioritization of resources, tests our business models, and brings focus to new product and services development and innovation.

Portfolio Management is focused on optimizing the Company’s business portfolio in higher growth markets with leadership positions while ensuring our financial capital and human resources are effectively and efficiently deployed to deliver sustainable, profitable growth while increasing our relevance with customers and shaping our markets.

In early 2021, the Company divested its non-core Industrial business and during 2020, the Company completed acquisitions primarily in the Renewables and Agtech markets to help achieve these objectives.

Recent acquisitions include:

• Thermo Energy Systems ("Thermo) - January 2020 - Agtech

• Delta Separations (“Delta”) - February 2020 – Agtech

• Architectural Mailboxes - October 2020 – Residential

• Sunfig Corporation - December 2020 – Renewables

• TerraSmart LLC ("TerraSmart") - December 2020 -Renewables

Organization Development drives the Company’s continuous focus on ensuring we have the right design and structure to scale the organization in order to execute the Company’s plans and meet commitments.

The Company aspires to make our place of work the "Best Place to Work", where we focus on creating an environment for our people to have the best opportunity for success, continue to develop, grow, and learn.

The Company's business system is a critical enabler to grow, scale, and deliver its plans.

The Company's focus is on deploying effective tools to drive growth, improve operating performance, and develop the organization utilizing 80/20 and lean quote-to-cash initiatives along with digital systems for speed, agility and responsiveness.

The Business System pillar challenges existing operating paradigms, drives day-to-day performance, forces prioritization of resources, tests the Company's business models, and drives new product and services innovation.

Portfolio Management is focused on optimizing the Company’s business portfolio in higher growth markets with leadership positions while ensuring its financial capital and human resources are effectively and efficiently deployed to deliver sustainable, profitable growth while increasing its relevance with customers and shaping its markets.

In 2022, the Company most recently acquired Quality Aluminum Products ("QAP") in the Residential segment and made the decision to divest its non-core Processing business within the Agtech segment to help achieve these objectives.

Table of Co n tents

Organization Development drives the Company’s continuous focus on ensuring it has the right design and structure to scale the organization in order to execute the Company’s plans and meet commitments.

The Company aspires to make its place of work the "Best Place to Work", where focus is on creating an environment for our people to have the best opportunity for success, continue to develop, grow and learn.

At core of this pillar is the Company’s development process focused on helping employees reach their potential, improve performance, develop career roadmaps, identify ongoing education requirements, and respective succession plans.

We believe doing so helps us attract and retain the best people so we can execute our business plans.

The COVID-19 pandemic began to impact our operations late in the first quarter of 2020 as government authorities imposed mandatory closures, work from home orders and social distancing protocols, which resulted in temporary curtailment of some operations, increased costs to operate certain facilities, and has continued to impact our operations as new strains of the COVID-19 virus have been identified.

Our top priority continues to be focused on our organization - keeping our team and their families as safe as possible, maintaining our supply chain and providing a high level of responsiveness to customer needs.

We continue to proactively execute our pandemic “playbook” and make adjustments to our operating protocols as we navigate forward.

Throughout 2021, COVID-19, as well as broader market dynamics, have impacted our company, including accelerating material, labor and logistics cost inflation, and availability.

In certain instances, these issues have resulted in project delays, margin pressures and order fulfillment time extension.

We are partnering with our customers in an effort to better align pricing, project timing and delivery schedules in this dynamic environment.

We are also working with our suppliers to understand the existing and potential future impacts to our supply chain and are taking actions in an effort to mitigate such impacts, however, we expect these supply chain, labor and logistics costs and availability pressures will continue in 2022.

The Company believes doing so helps it attract and retain the best people to execute its business plans.

Corporate Social Responsibility

Gibraltar is dedicated to making a positive impact through a commitment to Corporate Social Responsibility (CSR).

Our efforts continue to focus on:

Corporate Social Responsibility is a key consideration in everything, from the products the Company makes and the suppliers the Company engages with, to the Company's employee policies, business strategies, and future plans.

The Company is committed to making a difference in the lives of the people the Company's business touches, and to creating meaningful impact every day through the Company's work and relationships.

A sense of responsibility to people and the planet is woven into the core values that define the Company's purpose and drive the Company's culture.

These values include:

• Make it better - The Company challenges itself and its way of thinking every day to exceed the needs of the Company's customers.

• Make it right - The Company cares about doing the right thing for each other, customers, and communities by holding the Company to the highest standards of ethics and safety.

• Make it together - The Company works collaboratively with customers and each other - teamwork sets the Company apart.

The Company works to create a culture that is inclusive of different perspectives and experiences.

• Make an impact - The Company is here to make a difference.

The Company drives change and delivers meaningful value to customers, investors, and community.

The Company's efforts are focused on delivering positive impact in three key areas:

• Our People:

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• Our Communities:

Sharing our success with the communities where we live and work is vital to our mission.

Sharing our success with the communities where we live and work is vital to our purpose.

By supporting local nonprofits and institutions as investors and volunteers, we help build resilience and strengthen the bonds that will help our communities thrive.

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We promote sustainability across our value chain, developing products and services for our customers that reduce environmental impact and improve quality of life.

CSR is integral to our three pillars of business systems, portfolio management and organization development.

We have accelerated our initiatives to create a safer work environment, expand the experience base and the diversity of our organization, and to identify opportunities to reduce environmental impact.

We are committed to making a difference in the lives of the people who are touched by our business and to creating meaningful impact every day through our work and relationships.

Since 2014, we have transformed our business by deploying nearly half a billion dollars in capital for acquisitions in the renewables and agtech markets These investments position Gibraltar to take leadership roles in tackling some

of the world’s largest challenges such as generating energy from renewable sources and growing fruits and vegetables sustainably.

The Company's businesses reflect the Company's purpose, values and desire to make a positive impact on the world.

Since 2014, the Company has been transforming itself to focus on solving some of humanity's most challenging opportunities - from harnessing energy and growing food more sustainably to living and working with greater ease, efficiency, and comfort.

Transforming the Company positions it to play a significant role in sustainable development issues, building partnerships with key players that help advance critical technologies, strengthening the Agtech, Renewables, Residential and Infrastructure businesses, and enabling the Company to better respond to humanity's evolving needs.

The Company serves customers primarily in North America including renewable energy (solar) developers, home improvement retailers, wholesalers, distributors, institutional and commercial growers of food and plants, and contractors.

At December 31, 2021, we operated 34 facilities, comprised of 25 manufacturing facilities, one distribution center, and eight offices, which are located in 16 states, Canada, China, and Japan.

Our operational infrastructure provides the necessary scale to support regional and national customers in each of our markets.

At December 31, 2022, the Company operated 33 facilities, which were comprised of 25 manufacturing facilities, one distribution center, and seven offices, and were located within 15 states, Canada, China, and Japan.

The Company's operational infrastructure provides the necessary scale to support regional and national customers in each of its markets.

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The Company operates and reports its results in the following four reporting segments:

• Renewables;

• Residential

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Products & Services Applications End Users

Design, engineering, manufacturing and installation of solar racking and electrical balance of systems Commercial & distributed generation scale commercial solar installations on any type of terrain Solar developers;

Design, engineering, manufacturing and installation of solar racking and electrical balance of systems Commercial & distributed generation scale solar installations on any type of terrain Solar developers;

power companies;

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Residential Segment

Product Applications End Market

Products Applications End Market

Roof and foundation ventilation products Ventilation and whole-house air flow

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Products & Services Applications End Users

Provide growing and processing solutions including the designing, engineering, manufacturing, full scope construction, & maintenance & support of greenhouses & indoor growing operations, and botanical extraction systems Retail, fruits & vegetables, flowers, cannabis, commercial, institutional & conservatories, car wash structures, botanical oil extraction Large scale indoor produce growers;

cannabis growers, retail garden centers;

Provide growing and processing solutions including the designing, engineering, manufacturing, full scope construction, & maintenance & support of greenhouses & indoor growing operations Retail, fruits & vegetables, flowers, cannabis, commercial, institutional & conservatories, car wash structures Large scale indoor produce growers;

retail garden centers;

conservatories and botanical gardens;

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agricultural research;

car washes, botanical oil processors

cannabis growers

Infrastructure Segment

Product Applications End Market

Products Applications End Market

Engineered solutions for bridges, highways & airfields, including structural bearings, expansion joints, pavement seals, elastomeric concrete, bridge cable protection systems

Preserve functionality under varying weight, wind, temperature and seismic conditions Bridge and elevated highway construction, airport pavements

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The Company’s operating businesses have established strong positions in attractive end markets by building core capabilities in innovation, new products and services, manufacturing and field operations, business systems, quality performance, along with a healthy balance sheet and the strength of our people.

We will continue our focus of time, talent, and energy on strengthening our position in each market we serve.

The Company will continue its focus of time, talent, and energy on strengthening its position in each market it serves.

Attractive End Markets .

Our businesses are focused on solving global challenges as it relates to accelerating renewable energy generation, increasing the supply of locally-grown and more sustainably-produced food and plants and efficient way maintaining healthy home environments, supporting mail and package delivery, and improving our country’s transportation infrastructure and ways of transporting people.

The Company's businesses are focused on solving global challenges accelerating renewable energy generation, increasing the supply of locally-grown and more sustainably-produced food and plants, maintaining healthy and efficient home environments, supporting mail and package delivery, and improving the country’s transportation infrastructure and ways of transporting people.

Value-Added Products and Services .

We provide optimal solutions to our customers:

racking, foundation, and electrical systems for photovoltaic (PV) solar systems, commercial growing greenhouses and processing extraction technology for biologically grown food, cannabis, and other plants;

The Company provides optimal solutions to its customers:

racking, foundation, and electrical systems for photovoltaic (PV) solar systems, commercial growing greenhouses for biologically grown food, cannabis, and other plants;

roof-related ventilation and weather protection to support healthy home environments;

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and structural bearings, expansion joints and rubber products for bridges and other transportation structures.

Our products and services are highly engineered, supported with intellectual property, and driven by effective business systems and IT infrastructure.

The Company's products and services are highly engineered, supported with intellectual property, and driven by effective business systems and IT infrastructure.

Commitment to Customer & Quality .

We strive to be connected directly with our end customers, where we receive unfiltered feedback on performance, insight on customer problems and opportunities, and cooperation on ideas for new products, services, and business model optimization.

The percentage of our total revenue generated from products and services that were sold directly to the end user was approximately 56% and we expect this to grow in future years.

Our commitment to quality is a core operating tenet for the Company, and our quality management systems are designed to ensure we deliver to customer and stakeholder expectations while meeting statutory and regulatory requirements related to our products and services.

The Company strives to be connected directly with its end customers, where it receives unfiltered feedback on performance, insight on customer problems and opportunities, and cooperation on ideas for new products, services, and business model optimization.

The percentage of the Company's total revenue generated from products and services that were sold directly to the end user was approximately 45% and the Company expects this to grow in future years.

The Company's commitment to quality is a core operating tenet, and its quality management systems are designed to ensure the Company delivers to customer and stakeholder expectations while meeting statutory and regulatory requirements related to its products and services.

Strong Liquidity Profile .

We strive to manage our cash resources to ensure sufficient liquidity to fund growth initiatives, support the seasonality of our businesses and manage effectively through economic cycles.

As of December 31, 2021, our liquidity was $382 million, including $13 million of cash and $369 million of availability under our revolving credit facility.

We believe our low leverage and ample borrowing capacity, along with enhanced flexibility in our Senior Credit Agreement, provides us with the financial capacity to fund our ongoing business requirements, strategic initiatives, and acquisition opportunities.

Recent Acquisitions and Dispositions

During 2020, the Company transacted the following acquisitions:

Business Acquired Date of Acquisition in 2020 Purchase price

( in millions) 1

TerraSmart LLC December 31 $ 223.9 Provider of screw-based, ground-mount solar racking technology, particularly used for solar projects installed on challenging terrain

Sunfig Corporation December 11 $ 3.8 Provider of software solutions that optimize solar energy investments through upstream design, performance and financial modeling

Architectural Mailboxes October 15 $ 26.9 Provider, designer, and developer of decorative residential mailboxes and related products

Delta Separations February 13 $ 47.1 Provider of ethanol-based extraction systems manufacturer and training and laboratory design and operations consultative partner

Thermo Energy Systems January 15 $ 7.3 Provider of commercial greenhouse solutions in North America supporting the biologically grown organic food market

Except for TerraSmart, which was financed through a combination of cash on hand and borrowings under the Company's revolving credit facility, all of the above 2020 acquisitions were funded from cash on hand.

In the first quarter of 2021, the Company disposed of its Industrial business as a result of its portfolio management strategy to focus on participation in higher value and faster growing markets.

The Industrial business, previously reported in the Company's former Industrial and Infrastructure Products segment, has been presented as a discontinued operation in the Company's consolidated financial statements.

The Company strives to manage its cash resources to ensure sufficient liquidity to fund growth initiatives, support the seasonality of its businesses and manage effectively through economic cycles.

As of December 31, 2022, the Company's liquidity was $322.1 million, including $17.6 million of cash and $304.5 million of availability under its revolving credit facility.

The Company believes its low leverage and ample borrowing capacity, along with enhanced flexibility in its Credit Agreement, provides the Company with the financial capacity to fund its ongoing business requirements, strategic initiatives, and acquisition opportunities.

Recent Developments

On December 8, 2022, the Company entered into a Credit Agreement (the "Credit Agreement"), and concurrently with entering into the Credit Agreement, the Company paid off all amounts owed under the Sixth Amended and Restated Credit Agreement dated as of January 24, 2019, which was terminated with no prepayment penalties.

The Credit Agreement provides for a revolving credit facility and letters of credit in an aggregate amount equal to $400 million.

The Company can request additional financing to increase the revolving credit facility to $700 million or enter into a term loan of up to $300 million subject to conditions set forth in the Credit Agreement.

The Credit Agreement contains two financial covenants.

As of December 31, 2022, the Company was in compliance with both financial covenants.

The Credit Agreement terminates on December 8, 2027.

On August 22, 2022, the Company purchased all the issued and outstanding membership interests of Quality Aluminum Products ("QAP"), a manufacturer of soffit, fascia, trim coil, rain carrying products and aluminum siding for an aggregate purchase price of $52.1 million.

The acquisition of QAP was financed primarily through borrowings under the Company's revolving credit facility.

The results of operations of QAP have been included in the Residential segment of the Company's consolidated financial statements from the date of acquisition.

In May 2022, the Company's Board of Directors authorized a share repurchase program of up to $200 million of the Company's issued and outstanding common stock.

The program has a duration of three years, ending May 2, 2025.

Repurchases may be made, from time to time, in amounts and at prices the Company deems appropriate, subject to market conditions, applicable legal requirements, debt covenants and other considerations.

Any such repurchases may be executed using open market purchases, privately negotiated agreements or other transactions.

The repurchase program may be suspended or discontinued at any time at the Company's discretion.

As of December 31, 2022, the Company has repurchased 1,997,366 shares for an aggregate price of $85.9 million under this repurchase program.

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During the first quarter of 2022, the Company committed to a plan to sell its Processing business, a business within the Company's Agtech reportable segment, as part of its portfolio management strategy in order to focus its resources on the higher growth and more profitable growing business within the Agtech segment.

The Processing business was classified as held for sale as of March 31, 2022 and remains under such classification as of December 31, 2022.

Customers and Products

Our customers are located primarily throughout North America.

One customer, a home improvement retailer which purchases from the Residential segment represented 13% of our consolidated net sales for the year ended December 31, 2021, and 14% for each of the years ended December 31, 2020 and 2019.

No other customer in any segment or segments accounted for more than 10% of our consolidated net sales.

Our products are primarily distributed to our customers using common carriers.

We generally ship directly from our manufacturing plants to ensure on-time delivery while maintaining efficiency.

Our customers and product offerings by segment are described below.

The Renewables segment is primarily a designer and manufacturer of fully-engineered solutions for solar mounting systems.

This segment offers a fully integrated approach to the design, engineering, manufacturing and installation of solar racking systems, including electrical balance of systems, servicing customers, such as community solar owners and developers.

We have three manufacturing facilities and one distribution center and operate in the United States and Japan.

An integral part of solar racking projects is the fabrication of specifically designed metal structures for highly-engineered applications including:

racking and foundation for ground-mounted solar arrays on any type of terrain;

single-axis solar tracker solutions;

and carports that integrate solar PV panels.

The solar racking projects involve securing glass to metal with steel being the key raw material used.

Most of our production is completed using computer numerical control machines, roll forming machines, laser cutters and other fabrication tools.

The Company's customers are located primarily throughout North America.

One customer, a home improvement retailer which purchases from the Residential segment represented 14%, 13%, and 14% of the Company's consolidated net sales for the years ended December 31, 2022, 2021 and 2020, respectively.

No other customer in any segment or segments accounted for more than 10% of the Company's consolidated net sales.

The Company's products are primarily distributed to its customers using common carriers.

The Company generally ships directly from its manufacturing plants to ensure on-time delivery while maintaining efficiency.

Customers and product offerings by segment are described below.

The Renewables segment designs, manufacturers and installs solar energy mounting systems including foundation, racking, and electrical balance of systems for developers, EPCs and owners / operators of solar fields.

An integral part of solar projects is the design, engineering, and fabrication of unique structures and electrical balance of systems, as well as the field installation of both whether applied to a ground-mounted or carport system.

The Company provides both fixed tilt and tracker racking systems along with either a screw or pile driven foundation systems.

Most of the Company's production is completed using computer numerical control machines, roll forming machines, laser cutters and other fabrication tools.

The structural metal components are designed, engineered, fabricated and installed in accordance with applicable building codes.

We strive to improve our offerings of products by introducing new products, enhancing existing products, adjusting product specifications to respond to commercial building codes and regulatory changes, and providing solutions to contractors and end users.

New products introduced in recent years include screw-based racking solutions, software solutions to optimize solar energy investments, single-axis tracker systems, and solar racking systems for

carports and canopies.

Our screw-based racking solutions offer rapid installation on any terrain.

Our new software solution enables our team to optimize solar project design, utilizing solar irradiance data and topography analysis to quickly and automatically generate multiple potential layouts for complex projects The single-axis tracker systems within our solar mounting solutions group provide flexibility to adapt to a variety of site conditions that impact tracker site designs when using other solutions in the market and can vastly reduce the costs associated with civil work on projects.

The patented design eliminates complexities incorporated in the traditional systems, simplifying the operations and maintenance of the system, along with streamlining the installation process.

New products introduced in recent years include screw-based racking and foundation solutions, operating software to optimize solar energy investments, and single-axis tracker systems.

The Company's screw-based racking foundation offers rapid and secure installation on any terrain.

The Company's operating software enables its team to optimize solar project design utilizing solar irradiance data and topography analysis to quickly and automatically generate multiple potential layouts for complex projects.

The single-axis tracker systems are able to support and adapt to a variety of site conditions while also reducing the typical civil work preparation and installation costs associated with projects.

The patented design eliminates complexities incorporated in traditional systems, simplifying the operations and maintenance of the system, along with streamlining the installation process.

Other products offered include solar racking systems for both carports and pile-driven ground mount systems.

Solar racking systems for carports serve as protection for cars from the effects of the sun and intense heat while providing a renewable energy source.

Similarly, solar racking systems installed on idle land, such as solid waste landfills, or on challenging, rocky terrain, converts such land into a useful property by providing clean renewable power generating capabilities.

Our Residential segment services the residential repair and remodeling and to a lesser extent the new housing construction markets in North America with products including roof and foundation ventilation products, single point and centralized mail systems and electronic package solutions, outdoor living products (retractable sun-shades), rain dispersion products and other construction accessories.

Our residential product offerings are sold through a number of sales channels including major retail home centers, building material wholesalers, building product distributors, buying groups, roofing distributors, residential contractors, property management companies and postal services distributors and providers.

This segment operates 12 manufacturing facilities throughout the United States, giving it a base of operations to provide manufacturing capability of high quality products, customer service, delivery and technical support to a broad network of regional and national customers across North America.

Our roof and foundation ventilation products and accessories include solar powered units.

Our mail and electronic package solutions include single mailboxes, cluster style mail and parcel boxes for single and multi-family housing and electronic package locker systems.

Our remaining residential product offerings consist of roof edging and flashing, soffits and trim, drywall corner bead, metal roofing and accessories, rain dispersion products, including gutters and accessories, and exterior retractable awnings.

The Residential segment serves both the residential repair and remodeling and new housing construction markets in North America with products including roof and foundation ventilation products, single point and centralized mail systems and electronic package solutions, outdoor living space products (sun-shading), rain dispersion systems, and other construction accessories.

The Company's residential product offerings are sold through major retail home centers, building material wholesalers, building product distributors, buying groups, roofing distributors, residential contractors, property management companies, postal services distributors and providers, and online direct to end consumers.

The Company's mail and electronic package solutions include single mailboxes, cluster style mail and parcel boxes for single and multi-family housing, and electronic package locker systems.

The Company's remaining residential product offerings consist of roof edging and flashing, soffits and trim, drywall corner bead, metal roofing and accessories, rain dispersion products, including gutters and accessories, and exterior retractable awnings.

Each of these product offerings can be sold separately or as part of a system solution.

Within our Residential businesses, we are constantly striving to improve our product/solution offerings by introducing new products, enhancing existing products, adapting to building code and regulatory changes, and providing new and innovative solutions to homeowners and contractors.

New products introduced in recent years include electronic parcel lockers, roof top safety kits, chimney caps, heat trace coils, exterior, remote-controlled deck awnings for sun protection, and high-efficiency and solar-powered ventilation products.

Our electronic parcel lockers and parcel room systems provide residents in multi-family communities a secure storage receptacle to handle both package deliveries and receipt of other delivered goods, along with aiding retail businesses and their customers to transact via buy on line, pick up in store transactions.

Our ventilation and roof flashing products provide protection and extend the life of structures while providing a safer, healthier environment for residents.

Our cluster box mail delivery products provide delivery cost savings to the postal service while offering secure storage for delivered mail and packages.

Our building products are manufactured primarily from galvanized and painted steel, anodized and painted aluminum, and various resins.

Within our manufacturing facilities, we leverage significant production capabilities which allow us to both assemble and process a wide range of metals and plastics for our residential products.

Most of our production is completed using automatic roll forming machines, stamping presses, welding, paint lines, and injection molding equipment.

We maintain our equipment according to a thorough preventive maintenance program allowing us to meet the demanding quality and delivery requirements of our customers.

In some cases, the Company sources products from third-party vendors to optimize cost and quality in order to provide the very best and affordable solution for our customers.

The Agtech segment consists of turnkey controlled environment agriculture solutions for growing fruits and vegetables, supplier of custom greenhouses for research, education, and retail, and provider of soil-to-oil cannabis ecosystems with technologies for the cultivation, extraction, and refinement of cannabinoids.

We have six manufacturing facilities and operate in the United States and China.

An integral part of greenhouse projects is the fabrication of specifically designed metal structures for highly-engineered applications including:

commercial-scale greenhouses and other glass structures.

The greenhouse projects involve securing glass and plastic to metal with steel and aluminum being the key raw materials used.

Most of our production is completed using computer numerical control machines, roll forming machines, laser cutters and other fabrication tools.

The structural metal components are designed, engineered, fabricated and installed in accordance with applicable building codes.

New products introduced in recent years include botanical oil extraction systems and metal framed structures for car washes.

Our botanical oil extraction systems provide equipment for extracting plant oils for hemp, cannabis, and nutraceutical processors.

Our car washes serve a market preference for light- transparent structures.

Our partial dependence of this segment on the legalization of cannabis could impact demand for our products and services.

Table of Co n tents

The Company strives to improve its product-solution offerings while adapting to local and regional building code and new products recently introduced include electronic parcel lockers, roof top safety kits, chimney caps, heat trace coils, remote-controlled deck awnings for sun protection, and high-efficiency ventilation products.

The Company's ventilation and roof flashing products provide protection and extend the life of residential structures while providing a safer, healthier environment for residents.

The Company's building products are manufactured primarily from galvanized and painted steel, anodized and painted aluminum, and various resins.

The Company's electronic parcel lockers and parcel room systems provide multi-family communities and businesses a secure storage solution to handle both package deliveries and receipt of other goods, along with helping retail businesses and their customers to transact via buy on line, pick up in store transactions.

The Company's cluster box mail delivery products provide delivery cost savings to the postal service while offering secure storage for delivered mail and packages.

The Company leverages its production capabilities and supply chain across the U.S.

while maintaining the capability to support the many local and regional customer requirements.

The production facilities and processes are designed to provide a broad, but locally focused product range of residential products, and includes automated roll forming and injection molding, welding, stamping, and finished painting.

The Company maintains its equipment through daily maintenance and a preventive maintenance program.

In some cases, the Company sources products from third-party vendors to optimize cost and quality in order to provide the very best and affordable solution for customers.

The Agtech segment designs, manufactures, and installs high-technology turnkey greenhouse facilities designed for large-scale indoor growing production of fruits and vegetables, plants and flowers, and agricultural research and development facilities with over 100 universities in the United States.

Large scale greenhouse facilities are unique to a particular type of plant, vegetable, flower, or fruit, and require unique structures, growing systems, and the integration of the structure and the systems.

Infrastructure

Our Infrastructure segment primarily serves end markets such as highway and bridge construction and airports through commercial and transportation contractors.

Our infrastructure product offerings include expansion joints, structural bearings, rubber pre-formed seals and other sealants, elastomeric concrete, and bridge cable protection systems.

Our products are manufactured primarily from plate and structural steel along with various resin and rubber based materials.

We operate two manufacturing facilities in the United States giving us a base of operations to provide customer support, delivery, service, and quality to a number of regional and national customers, and providing us with manufacturing and distribution efficiencies in North America.

We strive to improve our offerings of infrastructure products by introducing new products, enhancing existing products, adjusting product specifications to respond to regulatory changes, and providing additional solutions to contractors.

New products have been introduced in recent years by extending our transportation infrastructure products into new markets.

For example, our long-lasting pavement sealants for roadways are now being installed on airport runways internationally, our structural bearings for elevated highways and bridges have been installed on an offshore oil production platform, and our corrosion-protection products for cable-suspension bridges are now marketed and sold internationally.

The Infrastructure segment serves highway and bridge construction and airports through commercial and transportation contractors.

The Company's products include expansion joints, structural bearings, rubber pre-formed seals and other sealants, elastomeric concrete, and bridge cable protection systems.

Infrastructure's products are manufactured primarily from plate and structural steel along with various resin and rubber based materials.

New products introduced in recent years extend the infrastructure products into new markets.

For example, its engineered pavement sealants for roadways are now being installed on airport runways, its structural bearings for elevated highways and bridges have been installed on offshore oil production platforms, and its corrosion-protection products for cable-suspension bridges are now marketed and sold internationally.

Engineering and Technical Services

Our business segments employ engineers and other technical personnel to perform a variety of key tasks which include the identification and implementation of improvements to our manufacturing process, redesign of our products for better performance, the development of new products and identification and execution of cost reduction activities.

In addition, our engineering staff employs a range of drafting software to design highly specialized and technically precise products.

In our Renewables, Agtech, and Infrastructure segments, drawings are approved and stamped by state licensed professional engineers as required by individual projects.

Technical service personnel also work in conjunction with our sales force in the new product development process to determine the types of products and services that suit the particular needs of our customers.

The Company's business segments employ engineers and other technical personnel to perform a variety of key tasks which include the identification and implementation of improvements to its manufacturing process, redesign of its products for better performance, the development of new products and identification and execution of cost reduction activities.

In addition, the Company's engineering staff employs a range of software to design highly specialized and technically precise products.

In the Renewables, Agtech, and Infrastructure segments, drawings are approved and stamped by state licensed professional engineers as required by individual projects.

Technical service personnel also work in conjunction with the Company's sales force in the new product development process to determine the types of products and services that suit the particular needs of customers.

Suppliers and Raw Materials

Our business is required to maintain sufficient quantities of raw material inventory in order to accommodate our customers’ short lead times.

Accordingly, we plan our purchases to maintain raw materials at sufficient levels to satisfy the anticipated needs of our customers.

We have implemented enterprise resource planning systems along with a corporate wide SIOP (Sales, Inventory, Operations Planning process) to better manage our inventory, forecast customer orders, enable efficient supply chain management, and allow for more timely counter-measures to changing customer demand and market conditions.

However, broader market dynamics in 2021 and continuing into 2022 related to COVID-19 have created supply chain challenges which have impacted ability to obtain sufficient quantities in a timely fashion, along with making it more difficult to forecast customer orders and plan purchases.

The primary raw materials we purchase are flat-rolled, structural and plate steel, aluminum coil and extrusions, and resins.

We purchase flat-rolled and plate steel and aluminum at regular intervals on an as-needed basis, primarily from the major North American mills, as well as, a limited amount from domestic service centers and foreign steel importers.

Substantially all of our resins are purchased from domestic vendors, primarily through distributors, with a

small amount purchased directly from manufacturers.

While supply has historically been adequate from these sources to fulfill our needs, the broader market dynamics in 2021 have recently impacted our ability to consistently source materials as needed.

This sourcing constraint has impacted delivery times.

Furthermore, supply chain disruptions impacting our customers have caused field project execution delays and affected the manner in which we purchase raw materials.

To guard against further shortages, we have held higher than historical levels of inventory thus increasing our investment in working capital.

Management continually evaluates improvements in our purchasing practices across our geographically dispersed facilities in order to streamline purchasing across similar commodities.

We purchase natural gas and electricity from suppliers in proximity to our operations.

The Company's business is required to maintain sufficient quantities of raw material inventory in order to accommodate customers delivery requirements.

Accordingly, the Company plans its purchases to maintain raw materials at sufficient levels to satisfy the anticipated needs of customers.

The Company has implemented enterprise resource planning systems along with a corporate wide SIOP (Sales, Inventory, Operations Planning process) to better manage inventory, forecast customer orders, enable efficient supply chain management, and allow for timely counter-measures to changing market conditions.

The primary raw materials the Company purchases are flat-rolled, structural and plate steel, aluminum coil and extrusions, and resins.

The Company purchases flat-rolled and plate steel and aluminum at regular intervals on an as-needed basis, primarily from the major North American mills, as well as, a limited amount from domestic service

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centers and foreign steel importers.

Substantially all of its resins are purchased from domestic vendors, primarily through distributors, with a small amount purchased directly from manufacturers.

Management continually evaluates improvements in the Company's purchasing practices across its geographically dispersed facilities in order to streamline purchasing across similar commodities.

The Company purchases natural gas and electricity from suppliers in proximity to its operations.

Intellectual Property

We actively protect our proprietary rights by the use of trademark, copyright, and patent registrations.

While we do not believe that any individual item of our intellectual property is material, we believe our trademarks, copyrights, and patents provide us with a competitive advantage when marketing our products to customers.

We also believe our brands are well recognized in the markets we serve and we believe they stand for high-quality manufactured goods at a competitive price.

These trademarks, copyrights, and patent registrations help us maintain product leadership positions for the goods we offer.

The Company actively protects its proprietary rights by the use of trademark, copyright, and patent registrations.

While the Company does not believe that any individual item of its intellectual property is material, the Company believes its trademarks, copyrights, and patents provide the Company with a competitive advantage when marketing its products to customers.

The Company also believes its brands are well recognized in the markets it serves and the Company believes the brands stand for high-quality manufactured goods at a competitive price.

These trademarks, copyrights, and patent registrations help the Company maintain product leadership positions for the goods it offers.

Sales and Marketing

In 2021, approximately 56% of our revenues were generated from products and services that were sold directly to the end user, with the remainder of revenues generated through retailers, wholesalers and distributors, slightly up from 54% in 2020.

Our sales process regularly includes a competitive bid process, and our reputation for product and service quality and meeting delivery requirements make us a preferred provider for many customers.

Our marketing focus in 2021 was on building an enhanced cohesive brand strategy—ensuring that we have a defined purpose and values, and ensuring that our brand messages reflect the needs of the market and the capabilities of our businesses.

The businesses in our Renewables segment were integrated and rebranded under the brand name Terrasmart and our businesses in our Agtech segment were consolidated under the brand name Prospiant.

In their markets, both brands reflect our unique value to customers.

In 2021, we expanded and upgraded our Customer Relationship Management (CRM) system, improving our visibility into sales account status and enabling cross-sell and up-sell opportunities.

In 2022, approximately 45% of the Company's revenues were generated from products and services that were sold directly to the end user, with the remainder of revenues generated through retailers, wholesalers and distributors, down from 56% in 2021.

The Company's sales process regularly includes a competitive bid process, and its reputation for product and service quality and meeting delivery requirements make the Company a preferred provider for many customers.

The Company shifted its marketing focus in 2021 to build an enhanced cohesive brand strategy—ensuring the Company has a defined purpose and values and ensuring the Company's brand messages reflect the needs of the market and the capabilities of its businesses.

The businesses in the Company's Renewables segment were integrated and rebranded under the brand name Terrasmart at the beginning of 2022 and the Company's businesses in its Agtech segment were consolidated under the brand name Prospiant during 2021.

In their markets, both brands reflect the Company's unique value to customers.

In 2021, the Company began to expand and upgrade its Customer Relationship Management (CRM) system, which work continued into 2022, thus improving its visibility into sales account status and enabling cross-sell and up-sell opportunities.

The CRM also provides important aggregate market data.

Backlog represents the value of the total confirmed orders at a point in time for which performance obligations have not yet been satisfied.

This metric is useful as it reflects the committed amount we expect to recognize as revenue in the near-term.

While the majority of our products have short lead time order cycles, we had aggregated approximately $344 million of backlog from continuing operations at December 31, 2021 compared to $297 million at December 31, 2020.

The backlog primarily relates to certain business units in our Renewables, Agtech, and Infrastructure segments.

We believe that the performance obligations related to the majority of our backlog will be satisfied, and related revenue recognized during 2022.

The Company operates in highly competitive markets.

We compete against several competitors in all four of our segments with different competitors in each major product category.

We compete with competitors based on the range of products offered, quality, price, and delivery, as well as serving as a full-service provider for project management in certain segments.

Although some of our competitors are large companies, the majority are small to medium-sized and do not offer the large range of products that we offer.

We believe our broad range of high quality products give us a competitive advantage over many of our competitors.

While our ability to meet exacting customer delivery requirements was impacted during 2021 by COVID-19 related supply chain constraints, these same issues impacted our competitors, some to a greater extent than others.

We were able to stay close to our customers, and in some cases, were able to increase market participation.

believe that execution of our business strategy further differentiates us and allows us to capitalize on those areas that give us a competitive advantage over many of our competitors.

The Company’s business has historically been subjected to seasonal influences, with our first quarter being seasonally the slowest relative to sales.

Levels of residential and commercial construction can be cyclical and depend on interest rates, availability of financing, inflation, employment, spending habits, consumer confidence and cost and availability of skilled labor.

Further, general economic forces, such as tax credit expirations and imposed tariffs, along with changes in the Company’s products and customer mix have shifted traditional seasonal fluctuations in revenue over the past few years.

Only actual orders with signed contracts are included in the Company's backlog.

This metric is useful as it reflects the committed amount the Company expects to recognize as revenue in the near-term.

While the majority of the Company's products have short lead time order cycles, the Company has aggregated approximately $299 million of backlog from continuing operations at December 31, 2022 compared to $344 million at December 31, 2021.

The backlog primarily relates to certain business units in the Company's Renewables, Agtech, and Infrastructure segments.

The Company believes that the performance obligations related to the majority of its backlog will be satisfied and related revenue recognized during 2023.

The Company operates in highly competitive markets with several competitors participating in each of its end markets.

The Company goes to market with a focused and broad range of high quality products, executes with speed and industry-leading service, value-based pricing and project management and field operations in its Agtech and Renewables businesses.

The Company’s end markets have historically experienced seasonal demand fluctuation, with lower demand typically in the first and fourth quarters.

Levels of residential and commercial construction can be cyclical and can depend on interest rates, availability of financing, inflation, employment, spending habits, consumer confidence and cost and availability of skilled labor.

Furthermore, general economic forces, such as tax credit expirations and imposed tariffs, the impact of the COVID-19 pandemic, and changes in the Company’s products and customer mix

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can and have shifted traditional seasonal fluctuations in revenue over the past few years.

As the pandemic is subsiding and tax credits for the Company's renewable energy customers begin to stabilize, the Company has seen a shift back towards traditional seasonality with the fourth quarter of 2022 being slower than experienced in 2021 and 2020.

Governmental Regulation

Our production processes involve the use of environmentally regulated materials.

We believe that we operate our business in material compliance with all federal, state and local environmental laws and regulations, and do not anticipate any material adverse effect on our financial condition or results of operations to maintain compliance with such laws and regulations.

However, we could incur operating costs or capital expenditures in complying with new or more stringent environmental requirements in the future or with current requirements if they are applied to our manufacturing facilities or distribution centers in a way we do not anticipate.

In addition, new or more stringent regulation of our energy suppliers could cause them to increase the price of energy.

Our operations are also governed by many other laws and regulations covering our labor relationships, the import and export of goods, the zoning of our facilities, taxes, our general business practices, and other matters.

We believe that we are in material compliance with these laws and regulations and do not believe that future compliance with such laws and regulations will have a material adverse effect on our financial condition or results of operations.

The Company's production processes involve the use of environmentally regulated materials.

The Company believes that the Company operates its business in material compliance with all federal, state and local environmental laws and regulations, and does not anticipate any material adverse effect on its financial condition or results of operations to maintain compliance with such laws and regulations.

However, the Company could incur operating costs or capital expenditures in complying with new or more stringent environmental requirements in the future or with current requirements if they are applied to its manufacturing facilities or distribution centers in a way the Company does not anticipate.

In addition, new or more stringent regulation of the Company's energy suppliers could cause them to increase the price of energy.

The Company's operations are also governed by many other laws and regulations covering its labor relationships, the import and export of goods, the zoning of its facilities, taxes, its general business practices, and other matters.

The Company believes that it is in material compliance with these laws and regulations and does not believe that future compliance with such laws and regulations will have a material adverse effect on its financial condition or results of operations.

Human Capital - Organization Development

Gibraltar is built on three strategic pillars – a strong business system, the optimization of our portfolio of businesses, and continuous organizational development.

Advancing each pillar is critical to ensuring we deliver our commitments to our people, our shareholders, our stakeholders, and our communities.

The foundation for organizational development is built on two fundamental beliefs:

• Our ability to perform and deliver shareholder value is dependent on our people, and

• We strive to create an environment where our people can have the best chance for success and we refer to this internally as creating the "Best Place to Work."

Our "Best Place to Work" initiative is built on the following beliefs, and involves our entire organization:

Health and Safety

Education and Development

Diversity and Inclusion

Compensation and Employee Benefits

Communication and Employee Engagement

We employed 2,011 full-time employees and 10 part-time employees as of December 31, 2021.

Of our 2,021 total employees, 832 were classified as salary and 1,189 classified as hourly.

We also employed approximately 590 full-time equivalent temporary agency employees.

Approximately 7% of our U.S.

The foundation for the Company's focus on organizational development is built on two fundamental beliefs:

• The Company's ability to perform and deliver shareholder value is dependent on our people, and

• The Company strives to create an environment where our people can have the best chance to thrive, which the Company refers to internally as creating the "Best Place to Work."

The Company's "Best Place to Work" initiative engages the entire organization, with areas of focus that include Health and Safety, Education and Development, Diversity and Inclusion, Compensation and Employee Benefits, and Communication and Employee Engagement.

The Company employed 2,117 full-time employees and 20 part-time employees as of December 31, 2022.

Of the Company's 2,137 total employees, 876 were classified as salary and 1,261 classified as hourly.

The Company also employed approximately 329 full-time equivalent temporary agency employees.

Approximately 6% of the Company's U.S.

workforce was represented by unions through two collective bargaining agreements ("CBAs") as of December 31, 2022.

Both of our CBAs will expire and are expected to be renegotiated in 2024.

Both of the Company's CBAs will expire and are expected to be renegotiated in 2024.

The Company considers its employee relations to be good.

Health and Safety

We expect each member of Gibraltar to follow our safety standards and practices, support our key safety initiatives, be accountable to each other, and always be part of the solution.

We believe all accidents and near-misses are preventable.

Additionally, we measure and review our safety results continuously in each location.

We have a disciplined safety framework.

Our CEO reviews safety performance, including recordable incidents, near misses, and first aid cases monthly with all business and human resource leaders.

Safety performance and best practices are also reviewed quarterly with the entire organization during our organization-wide Town Hall live virtual

In addition, as part of our annual budget and capital planning process, our businesses identify additional safety investments required for training, education, equipment, and processes.

Throughout 2021, our Company and employees continued to experience the effects of the COVID-19 pandemic.

Operating our businesses during this time required focus, discipline, and diligence from our entire organization to maintain our COVID-19 health and safety protocols—while at work, home, and in the communities where we live and work.

We continued to follow the recommendations of the Centers for Disease Control and Prevention (CDC), World Health Organization (WHO), and U.S.

Department of Health and Human Services (DHS).

Additionally, we tracked and implemented all federal, state and local mandates and made modifications in compliance with changes throughout the year.

We continued operating protocols in our offices and production facilities including providing necessary PPE, social distancing requirements, zone and shift management, temperature checks, and enhanced cleaning and sanitization practices at our facilities.

For our remote-working teams, we continued business continuity protocols with focus on reliable, consistent, and continuous connectivity along with additional cyber-security protection and our centralized help desk.

These and other COVID-19 related protocols helped us provide a safe and productive environment for our teams and ensured that we were able to support our customers’ needs throughout the pandemic.

Education and Development

We support our employees in realizing their full potential with meaningful career development opportunities.

Our focus is to build the best organization and an environment where our employees learn, are challenged, and have the tools to grow.

We are also focused on building effective systems, tools and processes to enable the organization to continue to advance.

With these initiatives, along with our formal education and development program, we will build competencies, drive more diversity of thought, challenge internal paradigms, and drive improved and consistent performance.

The development of our organization starts with consistent education and training.

At the core of this effort is making sure our people have a foundation based in Ethics and Compliance, which is summarized as follows:

• Our commitment to high ethical standards is the best way to serve our people, customers, suppliers, and investors;

• We are all responsible to follow and uphold strong ethical principles;

• Ethical behavior is more than a policy and compliance with the law is mandatory—it is our responsibility to do business in the right and responsible way.

Our commitment to living our values includes providing education, training and development opportunities for everyone:

• Comprehensive education curriculum.

Topics include Ethics – “Doing the Right Thing”;

Compliance – “Doing It the Right and Responsible Way”;

and Cyber Security.

Completion of our training is required annually for our employees and members of the Board of Directors and is a condition of employment.

Our CEO reviews the quarterly progress for our employees.

• Gibraltar University.

Designed to develop our leadership across Gibraltar.

The program is a two-year initiative utilizing classroom education, ongoing continuous learning, and team project implementation prior to graduation.

The curriculum covers Finance, Human Resources, Marketing, Operations, Innovation, Legal, Strategy Development and Deployment, and Mergers & Acquisitions, and is taught by Gibraltar’s leadership team.

• Organization Planning and Talent Review process.

The annual process integrates discussions and metrics on organization design/structure, career development, diversity and inclusion, performance and potential assessment, and succession planning, along with key organizational priorities and results.

It also drives our annual hiring, recruiting, and retention initiatives, and continues to be instrumental as we add talent across our organization.

Talent acquisition is an important aspect of our business strategy and is guided by our desire to find the best team members to drive our business and build our “Best Place to Work” vision.

It starts with understanding our organizational needs and developing diverse candidate “slates” for the positions we plan to hire.

The Company expects each team member of the Company to follow the Company's safety standards and practices, support the Company's key safety initiatives, be accountable to themselves and each other, and be part of safety solutions.

The Company believes all accidents and near-misses are preventable as the Company strives to create a zero incidents work environment.

The Company has continued to invest in the Company's safety organization, and implemented a disciplined safety management and reporting process, measuring and reviewing the Company's safety results continuously in each location.

The Company's CEO reviews safety performance monthly, including recordable incidents, near misses, and first aid cases.

Safety performance and best practices are also reviewed quarterly with the entire organization during company-wide Town Hall meetings and with the Company's Board of Directors during quarterly board meetings.

Each of the Company's businesses have a safety team that assesses all recordable incidents and near misses to identify mitigating actions to prevent accidents in the future.

The Company's businesses also identify additional safety investments required for training, education, equipment, and processes as part of the Company's annual budget and capital planning procedure.

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The Company is continuously evolving its crisis management plans as the Company gains experience, reviews industry best practices, and continues to develop more effective tools, processes, and policies.

In an emergency, the Company's priorities are to protect the welfare of our people and to maintain business continuity.

Diversity and Inclusion

We support and encourage a culture where diversity of thought flourishes, and all employees feel appreciated, included, and know they have an equal opportunity to develop, grow, and succeed based on their performance.

We believe demonstrating respect for our people and valuing them for who they are, their perspectives, and their contributions is critical to creating the best environment for our team to have success.

This is foundational for our “Best Place to Work” initiative.

Below are key demographics of our workforce.

The Company supports and encourages a culture where diversity of thought flourishes and all employees feel appreciated, included, and know they have an equal opportunity to develop, grow, and succeed based on their performance.

The Company believes demonstrating respect for our people and valuing their perspectives and their contributions is critical to cultivating the Company's best and most successful work environment, a belief that is foundational for the Company's “Best Place to Work” initiative.

Key demographics for the Company's employees are shown below.

While the figures below are in total, the Company evaluates its organization against the diversity of the communities that the Company operates in, with a goal of being representative at the community level.

2022 Workforce Composition (Gender and Age)

Employee Age Groups Female Male Total by Age Group % by Age Group

Employee Age Groups Female Male Not Specified Total by Age Group % by Age Group

< 30 years of age 79 265 1 345 16.1%

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Number of 2022 Employees by Employment Type (by Gender)

Employee Type Female Male Total by Type % by Type

Employee Type Female Male Not Specified Total by Type % by Type

Salary 282 594 — 876 41.0%

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Ethnic Background % of Employees

Black or African American 15.3%

Hispanic or Latino 13.8%

Black or African American 12.6%

Not Specified 3.3%

Two or More Races 2.4%

Hawaiian/Pacific Islander 0.7%

American Indian/Alaska Native 0.6%

We are building a team with people who bring diversity of thought, experience, and perspective to our organization.

We recognize our organization and the communities we operate in will continue to evolve and grow.

We continue to develop our strategy to advance our diversity and inclusion (D&I) framework across our organization, including plans to ensure D&I is an integral part of our workplace and organization development, integrated into our interactions with shareholders, customers, and suppliers, and the development of process and metrics, education and communication tools to support our D&I initiatives.

Compensation and Employee Benefits

Our compensation and benefits package is a key factor in recruiting and retaining the best talent in our industry.

Our employee health and welfare benefits program is designed to promote the overall health of our workforce.

While specific benefits vary worldwide and are based on regional practices, benefits offered to our United States based employees, which at December 31, 2021 comprised approximately 95% of our employees, include paid time off, healthcare (medical, dental and vision), short and long term disability benefits, life and accidental insurance, a

401(k) retirement plan with a Company match, access to our employee assistance program, wellness incentives, parental leave, and a target-based incentive plan that provides for annual bonus opportunity when certain company financial metrics are met.

We review compensation at least annually for all employees and adjust it to ensure we reward exceptional performance and remain competitive in the market.

Communication and Employee Engagement

Gibraltar recognizes the importance of engaging employees through consistent and continuous communication such that the team clearly understands the Company's vision, strategy, and key priorities.

Every quarter, our CEO conducts a live "Town Hall" meeting for the entire organization with a standard agenda reviewing ethics and compliance, safety performance, business performance, community service initiatives, employee recognition, and concludes with a live Questions & Answers session.

In 2020, we also conducted an employee engagement survey to solicit input about our brand, company reputation, and culture which contributed to Gibraltar's brand assessment initiative in 2021 as well as further strengthened our internal communication process.

In 2021 we solicited input from our employees as part of our Priority Assessment survey used to inform Gibraltar of key topics material to our CSR commitment and important to our stakeholders Ultimately, our goal to create a "Best Place to Work" environment requires continuous and effective engagement and communication with our employees, and it also creates a strong foundation for attracting and retaining our team.

The Company believes in building a team that includes people who bring diversity of thought, experience, and perspective to its organization.

The Company recognizes that its organization and the communities in which the Company operates will continue to evolve and grow, which will require that the Company remain focused on the following initiatives:

• Continue the Company's mandatory and annual education and development program for the Company, including the Board of Directors, and evolve the curriculum as needed

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• Continue to map the Company's organization with the communities it operates in to ensure the make-up of the Company's team is representative of the community itself

• Implement and upgrade business systems across the Company to give the Company the capability to gather and analyze data, derive conclusions, and develop action plans for implementation

• Communicate the Company's progress through monthly business reviews with the Company's leadership teams, quarterly communications with its teams, and quarterly reviews with the Company's Board of Directors

• Build the most effective talent acquisition framework to attract the best candidates with the following objectives:

– Build diversity into the Company's recruiting process with its partner recruitment firms and labor agencies, universities, and trade schools, and ensure these partners deliver diverse slates of candidates for the Company's hiring needs, and

– Strengthen the Company's outreach to academic institutions, industry associations, local businesses, and affinity groups to broaden opportunities for diverse talent

• Be proactive with the Company's customers and supply chain partners to find ways to work together in promoting positive social development

Leadership Development

The Company reimagined the scope and objectives of its leadership development program in 2021.

The multi-year effort that emerged will establish a foundation for excellence in leadership.

The basis of the Company's program now includes multiple learning paths to meet the development needs of employees at all levels, including ethics compliance, leadership development, continuous improvement, diversity and inclusion, and function-specific learning and certification programs.

The Gibraltar Leadership Program core curriculum, launched to 194 leaders in 2022, is a two-day program with modules on servant leadership, skilled collaboration, accountability at work, taking control of conflict, emotional intelligence, and communicating as a manager.

In 2023, the Company will continue to offer this program to both new and existing leaders, and will expand the program to include additional modules on influence, change management and coaching for development.

The Company also maintains its commitment to ethical leadership with quarterly ethics training for all employees, and furthermore, also encourages and supports employees who pursue training and development to build their functional knowledge and expertise through continuing education and certification programs related to the employees' functional area.

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Item 1. Business