Griffon Corporation (“Griffon” or the “Company”) (NYSE:GFF)
today reported results for the fiscal 2024 second quarter ended
March 31, 2024.
Revenue for the second quarter totaled $672.9 million, a 5%
decrease compared to $711.0 million in the prior year quarter.
Net income totaled $64.1 million, or $1.28 per share, compared
to a net loss of $62.3 million, or $1.17 per share, in the prior
year quarter. Excluding all items that affect comparability from
both periods, adjusted net income was $67.5 million, or $1.35 per
share, in the current year quarter compared to $66.9 million, or
$1.21 per share, in the prior year quarter. For a reconciliation of
net income (loss) to adjusted net income, and earnings (loss) per
share to adjusted earnings per share, see the attached table.
Adjusted EBITDA for the second quarter was $134.2 million, a 2%
decrease from the prior year quarter of $136.9 million. Adjusted
EBITDA, excluding unallocated amounts (primarily corporate
overhead) of $14.8 million in the current quarter and $14.6 million
in the prior year quarter, totaled $149.0 million, decreasing 2%
from the prior year of $151.5 million. For a reconciliation and
definition of adjusted EBITDA, a non-GAAP measure, to income (loss)
before taxes, see the attached table.
“Griffon’s excellent second quarter performance exceeded our
expectations due to the strength of residential volume in our Home
and Building Products ("HBP") segment," said Ronald J. Kramer,
Chairman and Chief Executive Officer.
“Our Consumer and Professional Products ("CPP") segment's
performance continues to reflect improved profitability with the
completion of the previously announced U.S. facility closures,”
continued Mr. Kramer. “We remain confident in our long term target
of 15% segment EBITDA margin for CPP.”
“Given our robust year-to-date performance, and our expectations
for the second half, we are raising full-year segment EBITDA
guidance to $555 million from $525 million,” Mr. Kramer said.
“Regarding capital allocation, during the fiscal second quarter, we
repurchased more than 1.8 million shares at an average price of
$65.09 per share. These actions demonstrate the confidence
Griffon’s Board and management have in our strategic plan and
outlook, and our continued commitment to delivering value to our
shareholders.”
Segment Operating
Results
Home and Building Products ("HBP")
HBP's second quarter revenue of $392.1 million decreased 1% from
the prior year quarter due to unfavorable product mix of 2%,
partially offset by a 1% increase in volume. Increased residential
volume in the quarter was partially offset by decreased commercial
volume.
Adjusted EBITDA of $128.9 million decreased 2% from $131.9
million in the prior year quarter. The variance to the prior year
resulted from the decreased revenue noted above, and increased
labor and distribution costs, partially offset by reduced material
costs.
Consumer and Professional Products ("CPP")
CPP's second quarter revenue of $280.8 million decreased 11%
compared to the prior year quarter primarily due to decreased
volume driven by reduced consumer demand in North America and the
U.K., partially offset by increased volume in Australia.
Adjusted EBITDA of $20.1 million increased 2% from $19.6 million
in the prior year quarter. The variance to the prior year was
primarily due to improved North American production costs and
decreased discretionary spending, partially offset by the
unfavorable impact of the reduced volume noted above.
CPP Global Sourcing Strategy Expansion
In response to market conditions, Griffon announced in May 2023
that CPP is expanding its global sourcing strategy to include long
handle tools, material handling, and wood storage and organization
product lines for the U.S. market.
By transitioning these product lines to an asset-light
structure, CPP’s operations will be better positioned to serve
customers with a more flexible and cost-effective sourcing model
that leverages supplier relationships around the world. These
actions will be essential to CPP achieving 15% EBITDA margins,
while enhancing free cash flow through improved working capital and
significantly lower capital expenditures.
The global sourcing strategy expansion is expected to be
complete by the end of calendar 2024 and remains on budget.
Manufacturing operations have ceased at all affected sites: Camp
Hill and Harrisburg, PA; Fairfield, IA; Grantsville, MD and four
wood mills.
Taxes
The Company reported pretax income from operations for the
quarter ended March 31, 2024 compared to a pretax loss from
operations for the quarter ended March 31, 2023, and recognized
effective tax rates of 27.6% and 30.9%, respectively. Excluding all
items that affect comparability, the effective tax rates for the
quarters ended March 31, 2024 and 2023 were 27.9% and 29.5%,
respectively.
Balance Sheet and Capital
Expenditures
At March 31, 2024, the Company had cash and equivalents of
$123.0 million and total debt outstanding of $1.59 billion,
resulting in net debt of $1.46 billion. Leverage, as calculated in
accordance with our credit agreement, was 2.8x net debt to EBITDA
compared to 2.5x at March 31, 2023, and 2.6x at September 30, 2023.
The six months ending March 31, 2024 free cash flow of $153.8
million reflects the strong operating results in the first half. At
March 31, 2024, borrowing availability under the revolving credit
facility was $317.5 million subject to certain loan covenants.
Capital expenditures, net, were $18.5 million for the quarter ended
March 31, 2024.
Share Repurchases
Share repurchases during the quarter ended March 31, 2024
totaled 1.8 million shares of common stock, for a total of $117.4
million, or an average of $65.09 per share. Since April 2023 and
through March 31, 2024, share repurchases totaled 7.6 million
shares of common stock or 13.3% of the outstanding shares, for a
total of $337.8 million or an average of $44.56 per share, As of
March 31, 2024, $120.2 million remained under the Board authorized
share repurchase programs.
2024 Outlook
We now expect 2024 revenue of $2.65 billion (prior at $2.6
billion). Adjusted EBITDA is now expected to be $555 million (prior
at $525 million), excluding unallocated costs of $59 million (prior
$54 million) reflecting increased Employee Stock Ownership Plan
expense, charges related to the strategic review and AMES’s global
sourcing expansion. Our increased revenue and adjusted EBITDA
expectations reflect HBP's strong first half results.
Other guidance for 2024 remains unchanged, including
amortization of $22 million, depreciation $41 million, interest
expense of $103 million, a normalized tax rate of 28% and free cash
flow to exceed net income.
Conference Call
Information
The Company will hold a conference call today, May 8, 2024, at
8:30 AM ET.
The call can be accessed by dialing 1-844-825-9789 (U.S.
participants) or 1-412-317-5180 (International participants).
Callers should ask to be connected to the Griffon Corporation
teleconference or provide conference ID number 10187925.
Participants are encouraged to dial-in at least 10 minutes before
the scheduled start time.
A replay of the call will be available starting on Wednesday,
May 8, 2024 at 11:30 AM ET by dialing 1-844-512-2921 (U.S.) or
1-412-317-6671 (International), and entering the conference ID
number: 10187925. The replay will be available through Wednesday,
May 22, 2024 at 11:59 PM ET.
Forward-looking
Statements
“Safe Harbor” Statements under the Private Securities Litigation
Reform Act of 1995: All statements related to, among other things,
income (loss), earnings, cash flows, revenue, changes in
operations, operating improvements, the impact of the Hunter Fan
transaction, the industries in which Griffon Corporation (the
“Company” or “Griffon”) operates and the United States and global
economies that are not historical are hereby identified as
“forward-looking statements” and may be indicated by words or
phrases such as “anticipates,” “supports,” “plans,” “projects,”
“expects,” “believes,” "achieves", “should,” “would,” “could,”
“hope,” “forecast,” “management is of the opinion,” “may,” “will,”
“estimates,” “intends,” “explores,” “opportunities,” the negative
of these expressions, use of the future tense and similar words or
phrases. Such forward-looking statements are subject to inherent
risks and uncertainties that could cause actual results to differ
materially from those expressed in any forward-looking statements.
These risks and uncertainties include, among others: current
economic conditions and uncertainties in the housing, credit and
capital markets; Griffon’s ability to achieve expected savings and
improved operational results from cost control, restructuring,
integration and disposal initiatives (including, in particular, the
expanded CPP outsourcing strategy announced in May 2023); the
ability to identify and successfully consummate, and integrate,
value-adding acquisition opportunities; increasing competition and
pricing pressures in the markets served by Griffon’s operating
companies; the ability of Griffon’s operating companies to expand
into new geographic and product markets, and to anticipate and meet
customer demands for new products and product enhancements and
innovations; increases in the cost or lack of availability of raw
materials such as steel, resin and wood, components or purchased
finished goods, including any potential impact on costs or
availability resulting from tariffs; changes in customer demand or
loss of a material customer at one of Griffon’s operating
companies; the potential impact of seasonal variations and
uncertain weather patterns on certain of Griffon’s businesses;
political events or military conflicts that could impact the
worldwide economy; a downgrade in Griffon’s credit ratings; changes
in international economic conditions including inflation, interest
rate and currency exchange fluctuations; the reliance by certain of
Griffon’s businesses on particular third party suppliers and
manufacturers to meet customer demands; the relative mix of
products and services offered by Griffon’s businesses, which
impacts margins and operating efficiencies; short-term capacity
constraints or prolonged excess capacity; unforeseen developments
in contingencies, such as litigation, regulatory and environmental
matters; Griffon’s ability to adequately protect and maintain the
validity of patent and other intellectual property rights; the
cyclical nature of the businesses of certain of Griffon’s operating
companies; possible terrorist threats and actions and their impact
on the global economy; effects of possible IT system failures, data
breaches or cyber-attacks; the impact of COVID-19, or some other
future pandemic, on the U.S. and the global economy, including
business disruptions, reductions in employment and an increase in
business and operating facility failures, specifically among our
customers and suppliers; Griffon’s ability to service and refinance
its debt; and the impact of recent and future legislative and
regulatory changes, including, without limitation, changes in tax
laws. Such statements reflect the views of the Company with respect
to future events and are subject to these and other risks, as
previously disclosed in the Company’s Securities and Exchange
Commission filings. Readers are cautioned not to place undue
reliance on these forward-looking statements. These forward-looking
statements speak only as of the date made. Griffon undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
About Griffon
Corporation
Griffon Corporation is a diversified management and holding
company that conducts business through wholly-owned subsidiaries.
Griffon oversees the operations of its subsidiaries, allocates
resources among them and manages their capital structures. Griffon
provides direction and assistance to its subsidiaries in connection
with acquisition and growth opportunities as well as divestitures.
In order to further diversify, Griffon also seeks out, evaluates
and, when appropriate, will acquire additional businesses that
offer potentially attractive returns on capital.
Griffon conducts its operations through two reportable
segments:
- Home and Building Products ("HBP") conducts its operations
through Clopay. Founded in 1964, Clopay is the largest manufacturer
and marketer of garage doors and rolling steel doors in North
America. Residential and commercial sectional garage doors are sold
through professional dealers and leading home center retail chains
throughout North America under the brands Clopay, Ideal, and
Holmes. Rolling steel door and grille products designed for
commercial, industrial, institutional, and retail use are sold
under the Cornell and Cookson brands.
- Consumer and Professional Products (“CPP”) is a leading global
provider of branded consumer and professional tools; residential,
industrial and commercial fans; home storage and organization
products; and products that enhance indoor and outdoor lifestyles.
CPP sells products globally through a portfolio of leading brands
including AMES, since 1774, Hunter, since 1886, True Temper, and
ClosetMaid.
For more information on Griffon and its operating subsidiaries,
please see the Company’s website at www.griffon.com.
Griffon evaluates performance and allocates resources based on
segment adjusted EBITDA and adjusted EBITDA, non-GAAP measures,
which is defined as income (loss) before taxes from operations,
excluding interest income and expense, depreciation and
amortization, strategic review charges, non-cash impairment
charges, restructuring charges, gain/loss from debt extinguishment
and acquisition related expenses, as well as other items that may
affect comparability, as applicable. Segment adjusted EBITDA also
excludes unallocated amounts, mainly corporate overhead. Griffon
believes this information is useful to investors.
The following table provides operating highlights and a
reconciliation of segment adjusted EBITDA and adjusted EBITDA to
income (loss) before taxes:
(in thousands)
For the Three Months Ended
March 31,
For the Six Months Ended March
31,
REVENUE
2024
2023
2024
2023
Home and Building Products
$
392,062
$
396,659
$
787,853
$
793,232
Consumer and Professional Products
280,818
314,325
528,180
567,136
Total revenue
$
672,880
$
710,984
$
1,316,033
$
1,360,368
For the Three Months Ended
March 31,
For the Six Months Ended March
31,
2024
2023
2024
2023
ADJUSTED EBITDA
Home and Building Products
$
128,924
$
131,871
$
253,643
$
256,016
Consumer and Professional Products
20,121
19,635
25,660
17,826
Segment adjusted EBITDA
149,045
151,506
279,303
273,842
Unallocated amounts, excluding
depreciation*
(14,814
)
(14,630
)
(28,721
)
(28,406
)
Adjusted EBITDA
134,231
136,876
250,582
245,436
Net interest expense
(25,512
)
(24,643
)
(50,387
)
(49,187
)
Depreciation and amortization
(15,080
)
(17,254
)
(29,903
)
(34,367
)
Restructuring charges
(2,401
)
(78,334
)
(14,801
)
(78,334
)
Gain on sale of building
11
—
558
10,852
Strategic review - retention and other
(2,676
)
(6,190
)
(7,334
)
(14,422
)
Proxy expenses
—
(614
)
—
(2,117
)
Intangible asset impairment
—
(100,000
)
—
(100,000
)
Income (loss) before taxes
$
88,573
$
(90,159
)
$
148,715
$
(22,139
)
* Primarily Corporate Overhead
For the Three Months Ended
March 31,
For the Six Months Ended March
31,
DEPRECIATION and AMORTIZATION
2024
2023
2024
2023
Segment:
Home and Building Products
$
3,772
$
3,811
$
7,405
$
7,657
Consumer and Professional Products
11,171
13,303
22,228
26,430
Total segment depreciation and
amortization
14,943
17,114
29,633
34,087
Corporate
137
140
270
280
Total consolidated depreciation and
amortization
$
15,080
$
17,254
$
29,903
$
34,367
Griffon believes free cash flow ("FCF", a non-GAAP measure) is a
useful measure for investors because it portrays the Company's
ability to generate cash from operations for purposes such as
repaying debt, funding acquisitions and paying dividends.
The following table provides a reconciliation of net cash
provided by (used in) operating activities to FCF:
For the Six Months Ended March
31,
(in thousands)
2024
2023
Net cash provided by operating
activities
$
185,860
$
161,636
Acquisition of property, plant and
equipment
(33,289
)
(11,837
)
Proceeds from the sale of property, plant
and equipment
1,272
11,834
FCF
$
153,843
$
161,633
The following tables provide a reconciliation of gross profit
and selling, general and administrative expenses for items that
affect comparability for the three and six months ended March 31,
2024 and 2023:
(in thousands)
For the Three Months Ended
March 31,
For the Six Months Ended March
31,
2024
2023
2024
2023
Gross profit, as reported
$
270,665
$
194,492
$
507,306
$
428,317
% of revenue
40.2
%
27.4
%
38.5
%
31.5
%
Adjusting items:
Restructuring charges(1)
1,334
74,645
12,980
74,645
Gross profit, as adjusted
$
271,999
$
269,137
$
520,286
$
502,962
% of revenue
40.4
%
37.9
%
39.5
%
37.0
%
(1) For the quarter and six months ended
March 31, 2024 and 2023, restructuring charges relates to the CPP
global sourcing expansion.
(in thousands)
For the Three Months Ended
March 31,
For the Six Months Ended March
31,
2024
2023
2024
2023
Selling, general and administrative
expenses, including intangible asset impairment, as reported
$
157,217
$
260,301
$
310,020
$
413,021
% of revenue
23.4
%
36.6
%
23.6
%
30.4
%
Adjusting items:
Restructuring charges(1)
(1,067
)
(3,689
)
(1,821
)
(3,689
)
Intangible asset impairment
—
(100,000
)
—
(100,000
)
Proxy expenses
—
(614
)
—
(2,117
)
Strategic review - retention and other
(2,676
)
(6,190
)
(7,334
)
(14,422
)
Selling, general and administrative
expenses, as adjusted
$
153,474
$
149,808
$
300,865
$
292,793
% of revenue
22.8
%
21.1
%
22.9
%
21.5
%
(1) For the quarter and six months ended
March 31, 2024 and 2023, restructuring charges relates to the CPP
global sourcing expansion.
GRIFFON CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except per
share data)
(Unaudited)
Three Months Ended March
31,
Six Months Ended March
31,
2024
2023
2024
2023
Revenue
$
672,880
$
710,984
$
1,316,033
$
1,360,368
Cost of goods and services
402,215
516,492
808,727
932,051
Gross profit
270,665
194,492
507,306
428,317
Selling, general and administrative
expenses
157,217
160,301
310,020
313,021
Intangible asset impairment
—
100,000
—
100,000
Total operating expenses
157,217
260,301
310,020
413,021
Income (loss) from operations
113,448
(65,809
)
197,286
15,296
Other income (expense)
Interest expense
(26,149
)
(24,879
)
(51,448
)
(49,527
)
Interest income
637
236
1,061
340
Gain on sale of building
11
—
558
10,852
Other, net
626
293
1,258
900
Total other expense, net
(24,875
)
(24,350
)
(48,571
)
(37,435
)
Income (loss) before taxes
88,573
(90,159
)
148,715
(22,139
)
Provision (benefit) for income taxes
24,430
(27,904
)
42,395
(8,586
)
Net income (loss)
$
64,143
$
(62,255
)
$
106,320
$
(13,553
)
Basic earnings (loss) per common share
$
1.34
$
(1.17
)
$
2.20
$
(0.26
)
Basic weighted-average shares
outstanding
47,946
53,038
48,365
52,809
Diluted earnings (loss) per common
share
$
1.28
$
(1.17
)
$
2.10
$
(0.26
)
Diluted weighted-average shares
outstanding
49,931
53,038
50,714
52,809
Dividends paid per common share
$
0.15
$
0.10
$
0.30
$
0.20
Net income (loss)
$
64,143
$
(62,255
)
$
106,320
$
(13,553
)
Other comprehensive income (loss), net of
taxes:
Foreign currency translation
adjustments
(7,199
)
334
3,039
12,271
Pension and other post retirement
plans
531
746
1,063
1,608
Change in cash flow hedges
1,772
1,533
1,477
953
Total other comprehensive income (loss),
net of taxes
(4,896
)
2,613
5,579
14,832
Comprehensive income (loss), net
$
59,247
$
(59,642
)
$
111,899
$
1,279
GRIFFON CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
(Unaudited)
March 31, 2024
September 30,
2023
CURRENT ASSETS
Cash and equivalents
$
123,030
$
102,889
Accounts receivable, net of allowances of
$11,567 and $11,264
349,818
312,432
Inventories
443,970
507,130
Prepaid and other current assets
65,196
57,139
Assets held for sale
24,172
—
Assets of discontinued operations
980
1,001
Total Current Assets
1,007,166
980,591
PROPERTY, PLANT AND EQUIPMENT,
net
267,337
279,218
OPERATING LEASE RIGHT-OF-USE
ASSETS
168,252
169,942
GOODWILL
327,864
327,864
INTANGIBLE ASSETS, net
625,202
635,243
OTHER ASSETS
23,805
21,731
ASSETS OF DISCONTINUED
OPERATIONS
4,104
4,290
Total Assets
$
2,423,730
$
2,418,879
CURRENT LIABILITIES
Notes payable and current portion of
long-term debt
$
8,152
$
9,625
Accounts payable
143,152
116,646
Accrued liabilities
174,247
193,098
Current portion of operating lease
liabilities
33,433
32,632
Liabilities of discontinued operations
2,753
7,148
Total Current Liabilities
361,737
359,149
LONG-TERM DEBT, net
1,577,208
1,459,904
LONG-TERM OPERATING LEASE
LIABILITIES
145,295
147,224
OTHER LIABILITIES
132,063
132,708
LIABILITIES OF DISCONTINUED
OPERATIONS
5,241
4,650
Total Liabilities
2,221,544
2,103,635
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Total Shareholders’ Equity
202,186
315,244
Total Liabilities and Shareholders’
Equity
$
2,423,730
$
2,418,879
GRIFFON CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Six Months Ended March
31,
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
106,320
$
(13,553
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
29,903
34,367
Stock-based compensation
12,674
13,335
Intangible asset impairments
—
100,000
Asset impairment charges -
restructuring
8,482
59,118
Provision for losses on accounts
receivable
904
343
Amortization of debt discounts and
issuance costs
2,113
2,045
Deferred income tax provision
(benefit)
—
(25,744
)
Gain on sale of assets and investments
(1,075
)
(10,852
)
Change in assets and liabilities:
Increase in accounts receivable
(33,503
)
(19,431
)
Decrease in inventories
56,250
64,582
(Increase) decrease in prepaid and other
assets
(5,766
)
3,451
Increase (decrease) in accounts payable,
accrued liabilities, income taxes payable and operating lease
liabilities
7,979
(51,409
)
Other changes, net
1,579
5,384
Net cash provided by operating
activities
185,860
161,636
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property, plant and
equipment
(33,289
)
(11,837
)
Payments related to sale of business
—
(2,568
)
Proceeds from the sale of property, plant
and equipment
1,272
11,834
Net cash used in investing activities
(32,017
)
(2,571
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid
(21,676
)
(12,824
)
Purchase of shares for treasury
(222,421
)
(12,989
)
Proceeds from long-term debt
179,500
45,419
Payments of long-term debt
(67,184
)
(119,110
)
Other, net
(262
)
(127
)
Net cash used in financing activities
(132,043
)
(99,631
)
GRIFFON CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS - continued
(in thousands)
(Unaudited)
Six Months Ended March
31,
2024
2023
CASH FLOWS FROM DISCONTINUED
OPERATIONS:
Net cash used in operating activities
(3,273
)
(2,598
)
Net cash used in discontinued
operations
(3,273
)
(2,598
)
Effect of exchange rate changes on cash
and equivalents
1,614
(1,428
)
NET INCREASE IN CASH AND EQUIVALENTS
20,141
55,408
CASH AND EQUIVALENTS AT BEGINNING OF
PERIOD
102,889
120,184
CASH AND EQUIVALENTS AT END OF PERIOD
$
123,030
$
175,592
Griffon evaluates performance based on adjusted net income
(loss) and the related adjusted earnings (loss) per share, which
excludes restructuring charges, gain/loss from debt extinguishment,
acquisition related expenses, discrete and certain other tax items,
as well other items that may affect comparability, as applicable,
non-GAAP measures. Griffon believes this information is useful to
investors. The following tables provides a reconciliation of net
income (loss) to adjusted net income and earnings (loss) per common
share to adjusted earnings per common share:
(in thousands, except per share
data)
For the Three Months Ended
March 31,
For the Six Months Ended March
31,
2024
2023
2024
2023
Net income (loss)
$
64,143
$
(62,255
)
$
106,320
$
(13,553
)
Adjusting items:
Restructuring charges(1)
2,401
78,334
14,801
78,334
Intangible asset impairment
—
100,000
—
100,000
Gain on sale of building
(11
)
—
(558
)
(10,852
)
Strategic review - retention and other
2,676
6,190
7,334
14,422
Proxy expenses
—
614
—
2,117
Tax impact of above items(2)
(1,309
)
(47,224
)
(5,513
)
(47,055
)
Discrete and certain other tax provisions
(benefits), net(3)
(390
)
(8,723
)
393
(9,056
)
Adjusted net income
$
67,510
$
66,936
$
122,777
$
114,357
Earnings (loss) per common share
$
1.28
$
(1.17
)
$
2.10
$
(0.26
)
Adjusting items, net of tax:
Anti-dilutive share impact(4)
—
0.05
—
0.02
Restructuring charges(1)
0.04
1.06
0.22
1.06
Intangible asset impairment
—
1.34
—
1.34
Gain on sale of building
—
—
(0.01
)
(0.15
)
Strategic review - retention and other
0.04
0.08
0.11
0.20
Proxy expenses
—
0.01
—
0.03
Discrete and certain other tax provisions
(benefits), net(3)
(0.01
)
(0.16
)
0.01
(0.16
)
Adjusted earnings per common share
$
1.35
$
1.21
$
2.42
$
2.07
Weighted-average shares outstanding (in
thousands)
47,946
53,038
48,365
52,809
Diluted weighted-average shares
outstanding (in thousands)
49,931
55,364
50,714
55,334
Note: Due to rounding, the sum of earnings per common share and
adjusting items, net of tax, may not equal adjusted earnings per
common share.
(1) For the quarters ended March 31, 2024 and 2023,
restructuring charges relate to the CPP global sourcing expansion,
of which $1.3 million and $74.6 million, respectively, is included
in Cost of goods and services and $1.1 million and $3.7 million,
respectively, is included in SG&A. For the six months ended
March 31, 2024 and 2023, restructuring charges relate to the CPP
global sourcing expansion, of which $13.0 million and $74.6
million, respectively, are included in Cost of goods and services
and $1.8 million and $3.7 million, respectively, are included in
SG&A.
(2) The tax impact for the above reconciling adjustments from
GAAP to non-GAAP net income and EPS is determined by comparing the
Company's tax provision, including the reconciling adjustments, to
the tax provision excluding such adjustments.
(3) Discrete and certain other tax provisions (benefits)
primarily relate to the impact of a rate differential between
statutory and annual effective tax rate on items impacting the
quarter.
(4) In the three and six months ended March 31, 2023, Earnings
(loss) per common share is calculated using basic shares on the
face of the income statement. The anti-dilutive share impact
represents the impact of converting from basic shares to diluted
shares used in calculating Earnings (loss) per common share.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240507214507/en/
Company Contact Brian G. Harris SVP
& Chief Financial Officer Griffon Corporation (212) 957-5000
IR@griffon.com
Investor Relations Contact Michael
Callahan Managing Director ICR Inc. (203) 682-8311
Griffon (NYSE:GFF)
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