GIBRALTAR INDUSTRIES, INC. 10-Q

Item 1. Financial Statements GIBRALTAR INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited) Three Months Ended March 31, 2024 2023 Net sales $ 292,506 $ 293,267 Cost of sales 208,118 216,338 Gross profit 84,388 76,929 Selling, general, and administrative expense 52,652 47,559 Income from operations 31,736 29,370 Interest (income) expense ( 750 ) 1,491 Other income ( 1,021 ) ( 397 ) Income before taxes 33,507 28,276 Provision for income taxes 8,561 7,177 Net income $ 24,946 $ 21,099 Net earnings per share: Basic $ 0.82 $ 0.68 Diluted $ 0.81 $ 0.68 Weighted average shares outstanding: Basic 30,572 30,897 Diluted 30,793 31,024 See accompanying notes to consolidated financial statements. 3 Table of Contents GIBRALTAR INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) (unaudited) Three Months Ended March 31, 2024 2023 Net income $ 24,946 $ 21,099 Other comprehensive loss: Foreign currency translation adjustment ( 964 ) ( 107 ) Total comprehensive income $ 23,982 $ 20,992 See accompanying notes to consolidated financial statements. 4 Table of Contents GIBRALTAR INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) March 31, 2024 December 31, 2023 (unaudited) Assets Current assets: Cash and cash equivalents $ 146,665 $ 99,426 Accounts receivable, net of allowance of $ 5,578 and $ 5,572 , respectively 230,971 224,550 Inventories, net 137,878 120,503 Prepaid expenses and other current assets 15,205 17,772 Total current assets 530,719 462,251 Property, plant, and equipment, net 108,028 107,603 Operating lease assets 42,592 44,918 Goodwill 511,797 513,383 Acquired intangibles 124,257 125,980 Other assets 2,464 2,316 $ 1,319,857 $ 1,256,451 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 127,533 $ 92,124 Accrued expenses 82,805 88,719 Billings in excess of cost 53,261 44,735 Total current liabilities 263,599 225,578 Deferred income taxes 57,106 57,103 Non-current operating lease liabilities 33,793 35,989 Other non-current liabilities 25,174 22,783 Stockholders’ equity: Preferred stock, $ 0.01 par value; authorized 10,000 shares; none outstanding — — Common stock, $ 0.01 par value; authorized 100,000 shares; 34,266 and 34,219 shares issued and outstanding in 2024 and 2023 343 342 Additional paid-in capital 335,259 332,621 Retained earnings 763,457 738,511 Accumulated other comprehensive loss ( 3,078 ) ( 2,114 ) Cost of 3,797 and 3,778 common shares held in treasury in 2024 and 2023 ( 155,796 ) ( 154,362 ) Total stockholders’ equity 940,185 914,998 $ 1,319,857 $ 1,256,451 See accompanying notes to consolidated financial statements. 5 Table of Contents GIBRALTAR INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended March 31, 2024 2023 Cash Flows from Operating Activities Net income $ 24,946 $ 21,099 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 6,663 6,834 Stock compensation expense 2,639 1,594 Exit activity recoveries, non-cash ( 72 ) ( 63 ) Provision for (benefit of) deferred income taxes — ( 51 ) Other, net 1,691 1,023 Changes in operating assets and liabilities net of effects from acquisitions: Accounts receivable ( 6,950 ) ( 18,004 ) Inventories ( 17,231 ) ( 1,586 ) Other current assets and other assets 453 2,536 Accounts payable 35,455 23,077 Accrued expenses and other non-current liabilities 5,587 1,586 Net cash provided by operating activities 53,181 38,045 Cash Flows from Investing Activities Purchases of property, plant, and equipment, net ( 4,366 ) ( 2,190 ) Acquisitions, net of cash acquired — 554 Net cash used in investing activities ( 4,366 ) ( 1,636 ) Cash Flows from Financing Activities Long-term debt payments — ( 50,000 ) Proceeds from long-term debt — 11,000 Purchase of common stock at market prices ( 1,434 ) ( 7,509 ) Net cash used in financing activities ( 1,434 ) ( 46,509 ) Effect of exchange rate changes on cash ( 142 ) ( 11 ) Net increase (decrease) in cash and cash equivalents 47,239 ( 10,111 ) Cash and cash equivalents at beginning of year 99,426 17,608 Cash and cash equivalents at end of period $ 146,665 $ 7,497 See accompanying notes to consolidated financial statements. 6 Table of Contents GIBRALTAR INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in thousands) (unaudited) Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Stockholders’ Equity Shares Amount Shares Amount Balance at December 31, 2023 34,219 $ 342 $ 332,621 $ 738,511 $ ( 2,114 ) 3,778 $ ( 154,362 ) $ 914,998 Net income — — — 24,946 — — — 24,946 Foreign currency translation adjustment — — — — ( 964 ) — — ( 964 ) Stock compensation expense — — 2,639 — — — — 2,639 Net settlement of restricted stock units 47 1 ( 1 ) — — 19 ( 1,434 ) ( 1,434 ) Balance at March 31, 2024 34,266 $ 343 $ 335,259 $ 763,457 $ ( 3,078 ) 3,797 $ ( 155,796 ) $ 940,185 Balance at December 31, 2022 34,060 $ 340 $ 322,873 $ 627,978 $ ( 3,432 ) 3,199 $ ( 125,660 ) $ 822,099 Net income — — — 21,099 — — — 21,099 Foreign currency translation adjustment — — — — ( 107 ) — — ( 107 ) Stock compensation expense — — 1,594 — — — — 1,594 Net settlement of restricted stock units 88 1 ( 1 ) — — 36 ( 1,929 ) ( 1,929 ) Common stock repurchased under stock repurchase program — — — — — 154 ( 7,369 ) ( 7,369 ) Balance at March 31, 2023 34,148 $ 341 $ 324,466 $ 649,077 $ ( 3,539 ) 3,389 $ ( 134,958 ) $ 835,387 See accompanying notes to consolidated financial statements. 7 Table of Contents GIBRALTAR INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (1) BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements of Gibraltar Industries, Inc. (the "Company") have been prepared by management in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for the fair presentation of results for the interim period have been included. The Company's operations are seasonal; for this and other reasons financial results for any interim period are not necessarily indicative of the results expected for any subsequent interim period or for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2023. The consolidated balance sheet at December 31, 2023 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. Recent Accounting Pronouncements The Company evaluated all recent Accounting Standard Updates, including those that are currently effective in or after 2024, and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations or cash flows of the Company. There have been no material changes from the recent accounting pronouncements previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023. (2) ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following (in thousands): March 31, 2024 December 31, 2023 Trade accounts receivable $ 194,343 $ 178,087 Costs in excess of billings 42,206 52,035 Total accounts receivable 236,549 230,122 Less allowance for doubtful accounts and contract assets ( 5,578 ) ( 5,572 ) Accounts receivable, net $ 230,971 $ 224,550 Refer to Note 3 "Revenue" concerning the Company's costs in excess of billings. The following table provides a roll-forward of the allowance for credit losses, for the three month period ended March 31, 2024, that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected (in thousands): Beginning balance as of January 1, 2024 $ 5,572 Bad debt expense, net of recoveries 20 Accounts written off against allowance and other adjustments ( 14 ) Ending balance as of March 31, 2024 $ 5,578 (3) REVENUE Sales includes revenue from contracts with customers for designing, engineering, manufacturing and installation of solar racking systems; electrical balance of systems; roof and foundation ventilation products; centralized mail systems and electronic package solutions; rain dispersion products; trims and flashings and other accessories; retractable awnings; gutter guards; designing, engineering, manufacturing and installation of greenhouses; structural bearings; expansion joints; pavement sealant; elastomeric concrete; and bridge cable protection systems. 8 Table of Contents Refer to Note 13 "Segment Information" for additional information related to revenue recognized by timing of transfer of control by reportable segment. As of March 31, 2024, the Company's remaining performance obligations are part of contracts that have an original expected duration of one year or less. Contract assets consist of costs in excess of billings presented within accounts receivable in the Company's consolidated balance sheets. Contract liabilities consist of billings in excess of cost, classified as current liabilities, and unearned revenue, presented within accrued expenses, in the Company's consolidated balance sheets. Unearned revenue as of March 31, 2024 and December 31, 2023 was $ 7.7 million and $ 3.9 million, respectively. Revenue recognized during the three months ended March 31, 2024 and 2023 that was in contract liabilities at the beginning of the respective periods was $ 27.7 million and $ 18.7 million, respectively. (4) INVENTORIES, NET Inventories consisted of the following (in thousands): March 31, 2024 December 31, 2023 Raw material $ 84,524 $ 77,489 Work-in-process 12,400 9,508 Finished goods 47,811 42,942 Gross inventory 144,735 129,939 Less reserves ( 6,857 ) ( 9,436 ) Total inventories, net $ 137,878 $ 120,503 (5) ACQUISITION On July 5, 2023, the Company acquired the assets of a privately held Utah-based company that manufactures and distributes roof flashing and accessory products, and sells direct to roofing wholesalers. The results of this company have been included in the Company's consolidated financial results since the date of acquisition within the Company's Residential segment. The purchase consideration for this acquisition was $ 10.4 million, which includes a working capital adjustment and certain other adjustments provided for in the asset purchase agreement. The purchase price for the acquisition was allocated to the assets acquired and liabilities assumed based upon their respective fair values estimated as of the date of acquisition. The Company has completed the process to confirm the existence, condition, and completeness of the assets acquired and liabilities assumed to establish fair value of such assets and liabilities and to determine the amount of goodwill to be recognized as of the date of acquisition. The excess consideration was recorded as goodwill and approximated $ 3.0 million, all of which is deductible for tax purposes. Goodwill represents future economic benefits arising from other assets acquired that could not be individually identified including workforce additions, growth opportunities, and increased presence in the domestic building products markets. The allocation of the purchase consideration to the estimated fair value of the assets acquired and liabilities assumed is as follows as of the date of the acquisition (in thousands): Working capital $ 827 Property, plant and equipment 195 Acquired intangible assets 6,310 Other assets 134 Other liabilities ( 72 ) Goodwill 3,023 Fair value of purchase consideration $ 10,417 9 Table of Contents The intangible assets acquired in this acquisition consisted of the following (in thousands): Fair Value Weighted-Average Amortization Period Trademarks $ 250 3 years Customer relationships 6,060 12 years Total $ 6,310 In determining the allocation of the purchase price to the assets acquired and liabilities assumed, the Company uses all available information to make fair value determinations using Level 3 unobservable inputs in which little or no market data exists, and therefore, engages independent valuation specialists to assist in the fair value determination of the acquired long-lived assets. The acquisition of the privately held Utah-based company was financed primarily through borrowings under the Company's revolving credit facility. (6) GOODWILL AND RELATED INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill for the three months ended March 31, 2024 are as follows (in thousands): Renewables Residential Agtech Infrastructure Total Balance at December 31, 2023 $ 184,230 $ 213,576 $ 83,899 $ 31,678 $ 513,383 Adjustments to prior year acquisitions — ( 1,110 ) — — ( 1,110 ) Foreign currency translation — — ( 476 ) — ( 476 ) Balance at March 31, 2024 $ 184,230 $ 212,466 $ 83,423 $ 31,678 $ 511,797 Goodwill is recognized net of accumulated impairment losses of $ 133.2 million as of March 31, 2024 and December 31, 2023, respectively. The Company is required to regularly assess whether a triggering event has occurred which would require interim impairment testing. The Company determined that no triggering event had occurred as of March 31, 2024 which would require an interim impairment test to be performed. Acquired Intangible Assets Acquired intangible assets consisted of the following (in thousands): March 31, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Indefinite-lived intangible assets: Trademarks $ 52,300 $ — $ 52,300 $ — Finite-lived intangible assets: Trademarks 2,550 1,611 5,773 4,714 Unpatented technology 31,812 22,587 34,133 24,295 Customer relationships 101,043 39,435 110,649 48,088 Non-compete agreements 722 537 2,376 2,154 136,127 64,170 152,931 79,251 Total acquired intangible assets $ 188,427 $ 64,170 $ 205,231 $ 79,251 10 Table of Contents The following table summarizes the acquired intangible asset amortization expense for the three months ended March 31, (in thousands): 2024 2023 Amortization expense $ 2,718 $ 2,766 Amortization expense related to acquired intangible assets for the remainder of fiscal 2024 and the next five years thereafter is estimated as follows (in thousands): 2024 2025 2026 2027 2028 2029 Amortization expense $ 7,926 $ 10,485 $ 9,897 $ 7,639 $ 7,281 $ 7,232 (7) LONG-TERM DEBT The Company had no outstanding debt as of March 31, 2024 and December 31, 2023, respectively. Unamortized debt issuance costs, included in other assets on the consolidated balance sheets, as of March 31, 2024 and December 31, 2023 were $ 1.7 million and $ 1.7 million, respectively. Revolving Credit Facility On December 8, 2022, the Company entered into a Credit Agreement (the "Credit Agreement") which 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 March 31, 2024, the Company was in compliance with all financial covenants. The Credit Agreement terminates on December 8, 2027. Borrowings under the Credit Agreement bear interest, at the Company’s option, at a rate equal to the applicable margin plus (a) a base rate, (b) a daily simple secured overnight financing rate ("SOFR") rate, (c) a term SOFR rate or (d) for certain foreign currencies, a foreign currency rate, in each case subject to a 0 % floor. Through March 31, 2023, the Credit Agreement had an initial applicable margin of 0.125 % for base rate loans and 1.125 % for SOFR and alternative currency loans. Thereafter, the applicable margin ranges from 0.125 % to 1.00 % for base rate loans and from 1.125 % to 2.00 % for SOFR and alternative currency loans based on the Company’s Total Net Leverage Ratio, as defined in the Credit Agreement. In addition, the Credit Agreement is subject to an annual commitment fee, payable quarterly, which was initially 0.20 % of the daily average undrawn balance of the revolving credit facility and, from and after April 1, 2023, ranges between 0.20 % and 0.25 % of the daily average undrawn balance of the revolving credit facility based on the Company’s Total Net Leverage Ratio. Borrowings under the Credit Agreement are secured by the trade receivables, inventory, personal property, equipment, and general intangibles of the Company’s significant domestic subsidiaries. Capital distributions are subject to certain Total Net Leverage Ratio requirements and capped by an annual aggregate limit under the Credit Agreement. Standby letters of credit of $ 3.7 million have been issued under the Credit Agreement to third parties on behalf of the Company as of March 31, 2024. These letters of credit reduce the amount otherwise available under the revolving credit facility. The Company had $ 396.3 million and $ 396.1 million of availability under the revolving credit facility as of March 31, 2024 and December 31, 2023, respectively. (8) EQUITY-BASED COMPENSATION On May 3, 2023, the stockholders of the Company approved the adoption of the Gibraltar Industries, Inc. Amended and Restated 2018 Equity Incentive Plan (the "Amended 2018 Plan") which includes a total of 1,631,707 shares available for issuance. The Amended 2018 Plan allows the Company to grant equity-based incentive compensation awards, in the form of non-qualified options, restricted shares, restricted stock units, performance shares, performance stock units, and stock rights to eligible participants. The Gibraltar Industries, Inc. Amended and Restated 2016 Stock Plan for Non-Employee Directors ("Non-Employee Directors Plan") which includes 200,000 shares available for issuance, allows the Company to grant awards of shares of the Company's common stock to current non-employee Directors of the Company, and permits the Directors to defer receipt of such shares pursuant to the terms of the Non-Employee Directors Plan. 11 Table of Contents Equity-Based Awards - Settled in Stock The following table provides the number of stock units granted during the three months ended March 31, along with the weighted-average grant-date fair value of each award: 2024 2023 Awards Number of Awards Weighted- Average Grant-Date Fair Value Number of Awards (2) Weighted- Average Grant-Date Fair Value Performance stock units (1) 58,582 $ 77.70 81,611 $ 53.44 Restricted stock units 29,671 $ 77.70 46,646 $ 53.44 (1) The Company’s performance stock units (“PSUs”) represent shares granted for which the final number of shares earned depends on financial performance. The number of shares to be issued may vary between 0 % and 200 % of the number of PSUs granted depending on the relative achievement to targeted thresholds. The Company's PSUs with a financial performance condition are based on the Company’s return on invested capital (“ROIC”) over a one-year performance period. (2) PSUs granted in the first quarter of 2023 includes 7,825 units that were forfeited in the third quarter of 2023 and 147,572 units that will be converted to shares and issued to recipients in the first quarter of 2026, representing 200.0 % of the target amount granted and not subsequently forfeited, based on the Company's actual ROIC compared to ROIC target for the performance period ended December 31, 2023. Equity-Based Awards - Settled in Cash The Company's equity-based awards that are settled in cash are the awards under the Management Stock Purchase Plan (the “MSPP”) which is authorized under the Company's equity incentive plans. The MSPP provides participants the ability to defer a portion of their compensation, convertible to unrestricted investments, restricted stock units, or a combination of both, or defer a portion of their directors’ fees, convertible to restricted stock units. Employees eligible to defer a portion of their compensation also receive a company-matching award in restricted stock units equal to a percentage of their deferred compensation. The deferrals and related company match are credited to an account that contains a share-based liability. The portion of the account deferred to unrestricted investments is measured at fair market value of the unrestricted investments, and the portion of the account deferred to restricted stock units and company-matching restricted stock units is measured at a 200 -day average of the Company’s stock price. The account will be converted to and settled in cash payable to participants upon retirement or a termination of their service to the Company. Total MSPP liabilities recorded on the consolidated balance sheet as of March 31, 2024 were $ 23.0 million, of which $ 2.6 million was included in current accrued expenses and $ 20.4 million was included in non-current liabilities. Total MSPP liabilities recorded on the consolidated balance sheet as of December 31, 2023 were $ 20.0 million, of which $ 2.0 million was included in current accrued expenses and $ 18.0 million was included in non-current liabilities. The value of the restricted stock units within the MSPP liabilities was $ 20.0 million and $ 17.3 million at March 31, 2024 and December 31, 2023, respectively. The following table provides the number of restricted stock units credited to active participant accounts and the payments made with respect to MSPP liabilities during the three months ended March 31,: 2024 2023 Restricted stock units credited 40,538 41,743 MSPP liabilities paid (in thousands) $ 2,023 $ 2,147 (9) PRODUCT WARRANTIES The Company generally warrants that its products will be free from material defects in workmanship and materials. Warranty reserve estimates are based on management’s judgment, considering such factors as historical experience, anticipated rates of claims, and other available information. Management reviews and adjusts these estimates, if necessary, based on the differences between actual experience and historical estimates. 12 Table of Contents The reserve for product warranties is presented within accrued expenses on the Company’s consolidated balance sheets. Activity in the product warranties is summarized as follows (in thousands): Three Months Ended March 31, 2024 2023 Beginning balance $ 9,139 $ 6,251 Provisions for product warranties, net of reductions 929 ( 88 ) Ending balance $ 10,068 $ 6,163 (10) EXIT ACTIVITY COSTS AND ASSET IMPAIRMENTS The Company has incurred exit activity costs and asset impairment charges as a result of its 80/20 simplification and portfolio management initiatives. These initiatives have resulted in the identification of low-volume, low margin, internally-produced products which have been or will be outsourced or discontinued, the simplification of processes, the sale and exiting of less profitable businesses or product lines, and a reduction in the Company's manufacturing footprint. As a result of process simplification initiatives, the Company has incurred exit activity costs related to moving and closing costs and severance, along with asset impairment recoveries related to the write-down of inventory and other charges associated with discontinued product lines. Additionally, the Company has incurred the aforementioned costs resulting from the sale and/or closure of facilities including costs recorded during the three months ended March 31, 2023. The following tables set forth the exit activity costs and asset impairment recoveries incurred by segment during the three months ended March 31, related to the restructuring activities described above (in thousands): Three Months Ended March 31, 2024 2023 Exit Activity Asset Impairment Total Exit Activity Asset Impairment Total Renewables $ 269 $ — $ 269 $ — $ ( 63 ) $ ( 63 ) Residential — ( 72 ) ( 72 ) 114 — 114 Agtech 138 — 138 561 — 561 Infrastructure — — — — — — Corporate — — — — — — Total $ 407 $ ( 72 ) $ 335 $ 675 $ ( 63 ) $ 612 The following table provides a summary of where the exit activity costs and asset impairment recoveries were recorded in the consolidated statements of income for the three months ended March 31, (in thousands): 2024 2023 Cost of sales $ ( 72 ) $ 513 Selling, general, and administrative expense 407 99 Total exit activity and asset impairment charges $ 335 $ 612 The following table reconciles the beginning and ending liability for exit activity costs relating to the Company’s restructuring efforts (in thousands): 2024 2023 Balance at January 1 $ 6,725 $ 2,417 Exit activity costs recognized 407 675 Cash payments ( 553 ) ( 1,321 ) Balance at March 31 $ 6,579 $ 1,771 13 Table of Contents (11) INCOME TAXES The following table summarizes the provision for income taxes for continuing operations (in thousands) for the three months ended March 31, and the applicable effective tax rates: 2024 2023 Provision for income taxes $ 8,561 $ 7,177 Effective tax rate 25.6 % 25.4 % The effective tax rate for the three months ended March 31, 2024 and 2023, respectively, was greater than the U.S. federal statutory rate of 21 % due to state taxes and nondeductible permanent differences partially offset by favorable discrete item s due to an excess tax benefit on stock-based compensation. (12) EARNINGS PER SHARE Weighted average shares outstanding for basic and diluted earnings were as follows for the three months ended March 31, (in thousands): 2024 2023 Numerator: Net income available to common stockholders $ 24,946 $ 21,099 Denominator for basic earnings per share: Weighted average shares outstanding 30,572 30,897 Denominator for diluted earnings per share: Weighted average shares outstanding 30,572 30,897 Common stock options and stock units 221 127 Weighted average shares and conversions 30,793 31,024 The following table provides the potential anti-dilutive common stock units not included in the diluted weighted average shares calculations for the three months ended March 31, (in thousands): 2024 2023 Common stock units 4 64 (13) SEGMENT INFORMATION The Company is organized into four reportable segments on the basis of the production processes, products and services provided by each segment, identified as follows: (i) Renewables, which primarily includes designing, engineering, manufacturing and installation of solar racking and electrical balance of systems; (ii) Residential, which primarily includes roof and foundation ventilation products, centralized mail systems and electronic package solutions, retractable awnings and gutter guards, rain dispersion products, trims and flashings and other accessories; (iii) Agtech, which provides growing solutions including the designing, engineering, manufacturing and installation of greenhouses; and (iv) Infrastructure, which primarily includes structural bearings, expansion joints and pavement sealant for bridges, airport runways and roadways, elastomeric concrete, and bridge cable protection systems. When determining the reportable segments, the Company aggregated operating segments based on their similar economic and operating characteristics. 14 Table of Contents The following table illustrates certain measurements used by management to assess performance of the segments described above for the three months ended March 31, (in thousands): 2024 2023 Net sales: Renewables $ 51,496 $ 59,205 Residential 185,111 179,495 Agtech 34,027 35,852 Infrastructure 21,872 18,715 Total net sales $ 292,506 $ 293,267 Income from operations: Renewables $ 1,644 $ 2,269 Residential 34,346 29,509 Agtech 2,608 2,330 Infrastructure 4,896 2,714 Unallocated corporate expenses ( 11,758 ) ( 7,452 ) Total income from operations $ 31,736 $ 29,370 The following table illustrates the total assets of the Company's reportable segments and unallocated corporate assets as of (in thousands): March 31, 2024 December 31, 2023 Total assets: Renewables $ 374,137 $ 377,694 Residential 535,077 515,739 Agtech 165,488 168,213 Infrastructure 82,176 77,518 Unallocated corporate assets 162,979 117,287 $ 1,319,857 $ 1,256,451 The following tables illustrate segment revenue disaggregated by timing of transfer of control to the customer for the (in thousands): Three Months Ended March 31, 2024 Renewables Residential Agtech Infrastructure Total Net sales: Point in Time $ 6,789 $ 183,332 $ 2,339 $ 6,310 $ 198,770 Over Time 44,707 1,779 31,688 15,562 93,736 Total net sales $ 51,496 $ 185,111 $ 34,027 $ 21,872 $ 292,506 Three Months Ended March 31, 2023 Renewables Residential Agtech Infrastructure Total Net sales: Point in Time $ 9,094 $ 177,942 $ 5,107 $ 6,061 $ 198,204 Over Time 50,111 1,553 30,745 12,654 95,063 Total net sales $ 59,205 $ 179,495 $ 35,852 $ 18,715 $ 293,267 15 Table of Contents