Griffon Corporation (“Griffon” or the “Company”) (NYSE:GFF)
today reported results for the fiscal 2024 third quarter ended June
30, 2024.
Revenue for the third quarter totaled $647.8 million, a 5%
decrease compared to $683.4 million in the prior year quarter.
Net income totaled $41.1 million, or $0.84 per share, compared
to $49.2 million, or $0.90 per share, in the prior year quarter.
Excluding all items that affect comparability from both periods,
adjusted net income was $60.5 million, or $1.24 per share, in the
current year quarter compared to $70.3 million, or $1.29 per share,
in the prior year quarter. For a reconciliation of net income to
adjusted net income, and earnings per share to adjusted earnings
per share, see the attached table.
Adjusted EBITDA for the third quarter was $125.5 million, a 9%
decrease from the prior year quarter of $138.6 million. Adjusted
EBITDA, excluding unallocated amounts (primarily corporate
overhead) of $15.3 million in the current quarter and $14.0 million
in the prior year quarter, totaled $140.8 million, decreasing 8%
from the prior year of $152.6 million. For a reconciliation and
definition of adjusted EBITDA, a non-GAAP measure, to income before
taxes, see the attached table.
“Griffon's third quarter results were highlighted by solid
operating performance from Home and Building Products (“HBP”),
improved profitability at Consumer and Professional Products
(“CPP”) and strong free cash flow conversion,” said Ronald J.
Kramer, Chairman and Chief Executive Officer.
“HBP continues to generate strong EBITDA margin while CPP's
profitability is benefiting from its global sourcing expansion
strategy. With third quarter financial performance meeting our
expectations, we are on track to achieve our previously provided,
full-year guidance.”
“During the third quarter, we generated strong free cash flow of
$120 million allowing us to reduce debt by $80 million, repurchase
$19 million of stock and fund our $7 million regular quarterly
dividend. These actions underscore our commitment to a capital
allocation strategy that delivers value to our shareholders.”
Segment Operating
Results
Home and Building Products ("HBP")
HBP's third quarter revenue of $394.2 million decreased 2% from
the prior year quarter due to unfavorable product mix with
increased residential volume being offset by decreased commercial
volume.
Adjusted EBITDA of $118.5 million decreased 12% from $134.3
million in the prior year quarter resulting from the decreased
revenue noted above and increased material, labor and distribution
costs.
Consumer and Professional Products ("CPP")
CPP's third quarter revenue of $253.6 million decreased 10%
compared to the prior year quarter, primarily due to decreased
volume driven by reduced consumer demand in North America,
partially offset by increased volume in Australia.
Adjusted EBITDA of $22.3 million increased 22% from $18.3
million in the prior year quarter, 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.
Taxes
The Company reported pretax income from operations for the
quarters ended June 30, 2024 and June 30, 2023, and recognized
effective tax rates of 32.7% and 37.3%, respectively. Excluding all
items that affect comparability, the effective tax rates for the
quarters ended June 30, 2024 and 2023 were 27.9% and 28.1%,
respectively.
Balance Sheet and Capital
Expenditures
As of June 30, 2024, the Company had cash and equivalents of
$133.5 million and total debt outstanding of $1.51 billion,
resulting in net debt of $1.37 billion. Leverage, as calculated in
accordance with our credit agreement (see the attached table), was
2.7x net debt to EBITDA compared to 2.6x at both June 30, and
September 30, 2023. The nine months ended June 30, 2024 free cash
flow of $273.7 million reflects the strong operating results
through the third quarter of 2024. At June 30, 2024, borrowing
availability under the revolving credit facility was $397.1 million
subject to certain loan covenants. Capital expenditures, net of
asset sales, were $2.3 million for the quarter ended June 30, 2024.
For a reconciliation and definition of free cash flow, a non-GAAP
measure, to net cash provided by operating activities, see the
attached table.
Share Repurchases
Share repurchases during the quarter ended June 30, 2024 totaled
0.3 million shares of common stock, for a total of $19.1 million,
or an average of $67.31 per share. Since April 2023 and through
June 30, 2024, share repurchases totaled 7.9 million shares of
common stock or 13.7% of the outstanding shares, for a total of
$356.9 million or an average of $45.38 per share. As of June 30,
2024, $101.1 million remained under the Board authorized share
repurchase programs.
2024 Outlook
We continue to expect 2024 revenue of $2.65 billion and Adjusted
EBITDA of $555 million, excluding unallocated costs of $59 million
and charges related to the former strategic review and AMES’s
global sourcing expansion.
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, August 7, 2024,
at 8:30 AM ET.
The call can be accessed by dialing 1-877-407-0792 (U.S.
participants) or 1-201-689-8263 (International participants).
Callers should ask to be connected to the Griffon Corporation
teleconference or provide conference ID number 13747578.
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,
August 7, 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: 13747578. The replay will be available through Wednesday,
August 21, 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 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 are defined as income 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 before taxes:
(in thousands)
For the Three Months Ended
June 30,
For the Nine Months Ended June
30,
REVENUE
2024
2023
2024
2023
Home and Building Products
$
394,214
$
401,142
$
1,182,067
$
1,194,374
Consumer and Professional Products
253,600
282,288
781,780
849,424
Total revenue
$
647,814
$
683,430
$
1,963,847
$
2,043,798
For the Three Months Ended
June 30,
For the Nine Months Ended June
30,
2024
2023
2024
2023
ADJUSTED EBITDA
Home and Building Products
$
118,516
$
134,330
$
372,159
$
390,346
Consumer and Professional Products
22,263
18,265
47,923
36,091
Segment adjusted EBITDA
140,779
152,595
420,082
426,437
Unallocated amounts, excluding
depreciation*
(15,285
)
(13,982
)
(44,006
)
(42,388
)
Adjusted EBITDA
125,494
138,613
376,076
384,049
Net interest expense
(26,255
)
(25,207
)
(76,642
)
(74,394
)
Depreciation and amortization
(15,247
)
(15,669
)
(45,150
)
(50,036
)
Loss from debt extinguishment
(1,700
)
—
(1,700
)
—
Restructuring charges
(18,688
)
(3,862
)
(33,489
)
(82,196
)
Gain (loss) on sale of buildings
(725
)
—
(167
)
10,852
Strategic review - retention and other
(1,870
)
(5,812
)
(9,204
)
(20,234
)
Proxy expenses
—
(568
)
—
(2,685
)
Intangible asset impairment
—
—
—
(100,000
)
Special dividend ESOP charges
—
(9,042
)
—
(9,042
)
Income before taxes
$
61,009
$
78,453
$
209,724
$
56,314
* Primarily Corporate Overhead
For the Three Months Ended
June 30,
For the Nine Months Ended June
30,
DEPRECIATION and AMORTIZATION
2024
2023
2024
2023
Segment:
Home and Building Products
$
3,883
$
3,868
$
11,288
$
11,525
Consumer and Professional Products
11,225
11,661
33,453
38,091
Total segment depreciation and
amortization
15,108
15,529
44,741
49,616
Corporate
139
140
409
420
Total consolidated depreciation and
amortization
$
15,247
$
15,669
$
45,150
$
50,036
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. FCF is
defined as net cash provided by operating activities less capital
expenditures, net of proceeds.
The following table provides a reconciliation of net cash
provided by (used in) operating activities to FCF:
For the Nine Months Ended June
30,
(in thousands)
2024
2023
Net cash provided by operating
activities
$
307,938
$
309,003
Acquisition of property, plant and
equipment
(47,849
)
(20,183
)
Proceeds from the sale of property, plant
and equipment
13,572
11,840
FCF
$
273,661
$
300,660
Net debt to EBITDA (Leverage ratio), a non-GAAP measure, is a
key financial measure that is used by management to assess the
borrowing capacity of the Company. The Company has defined its net
debt to EBITDA leverage ratio as net debt (total principal debt
outstanding net of cash and equivalents) divided by the sum of
trailing twelve-month (“TTM”) adjusted EBITDA (as defined above)
and TTM stock-based compensation expense. The following table
provides a calculation of our net debt to EBITDA leverage ratio as
calculated per our credit agreement:
(in thousands)
June 30, 2024
September 30,
2023
June 30, 2023
Cash and equivalents
$
133,452
$
102,889
$
151,790
Notes payables and current portion of
long-term debt
8,138
9,625
10,043
Long-term debt, net of current
maturities
1,499,211
1,459,904
1,536,415
Debt discount/premium and issuance
costs
16,663
20,283
18,861
Total gross debt
1,524,012
1,489,812
1,565,319
Debt, net of cash and
equivalents
$
1,390,560
$
1,386,923
$
1,413,529
TTM Adjusted EBITDA (1)
$
497,359
$
505,332
$
508,882
Special dividend ESOP Charges
(6,452
)
(15,494
)
(19,580
)
TTM Stock and ESOP-based compensation
32,251
41,112
45,744
TTM Adjusted EBITDA
$
523,158
$
530,950
$
535,046
Leverage ratio
2.7x
2.6x
2.6x
1. Griffon defines Adjusted EBITDA as
operating results before interest income and expense, income taxes,
depreciation and amortization, restructuring charges, debt
extinguishment, net and acquisition related expenses, as well as
other items that may affect comparability, as applicable.
The following tables provide a reconciliation of gross profit
and selling, general and administrative expenses for items that
affect comparability for the three and nine months ended June 30,
2024, and 2023:
(in thousands)
For the Three Months Ended
June 30,
For the Nine Months Ended June
30,
2024
2023
2024
2023
Gross profit, as reported
$
249,149
$
274,624
$
756,455
$
702,941
% of revenue
38.5
%
40.2
%
38.5
%
34.4
%
Adjusting items:
Restructuring charges(1)
15,744
1,777
28,724
76,422
Gross profit, as adjusted
$
264,893
$
276,401
$
785,179
$
779,363
% of revenue
40.9
%
40.4
%
40.0
%
38.1
%
(1) For the quarter and nine months ended June 30, 2024 and
2023, restructuring charges relate to the CPP global sourcing
expansion.
(in thousands)
For the Three Months Ended
June 30,
For the Nine Months Ended June
30,
2024
2023
2024
2023
Selling, general and administrative
expenses, including intangible asset impairment, as reported
$
159,810
$
172,439
$
469,830
$
585,460
% of revenue
24.7
%
25.2
%
23.9
%
28.6
%
Adjusting items:
Restructuring charges(1)
(2,944
)
(2,085
)
(4,765
)
(5,774
)
Intangible asset impairment
—
—
—
(100,000
)
Proxy expenses
—
(568
)
—
(2,685
)
Strategic review - retention and other
(1,870
)
(5,812
)
(9,204
)
(20,234
)
Special dividend ESOP charges
—
(9,042
)
—
(9,042
)
Selling, general and administrative
expenses, as adjusted
$
154,996
$
154,932
$
455,861
$
447,725
% of revenue
23.9
%
22.7
%
23.2
%
21.9
%
(1) For the quarter and nine months ended June 30, 2024 and
2023, restructuring charges relate 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 June
30,
Nine Months Ended June
30,
2024
2023
2024
2023
Revenue
$
647,814
$
683,430
$
1,963,847
$
2,043,798
Cost of goods and services
398,665
408,806
1,207,392
1,340,857
Gross profit
249,149
274,624
756,455
702,941
Selling, general and administrative
expenses
159,810
172,439
469,830
485,460
Intangible asset impairment
—
—
—
100,000
Total operating expenses
159,810
172,439
469,830
585,460
Income from operations
89,339
102,185
286,625
117,481
Other income (expense)
Interest expense
(27,024
)
(25,641
)
(78,472
)
(75,168
)
Interest income
769
434
1,830
774
Gain (loss) on sale of buildings
(725
)
—
(167
)
10,852
Loss from debt extinguishment
(1,700
)
—
(1,700
)
—
Other, net
350
1,475
1,608
2,375
Total other expense, net
(28,330
)
(23,732
)
(76,901
)
(61,167
)
Income before taxes
61,009
78,453
209,724
56,314
Provision for income taxes
19,923
29,248
62,318
20,662
Net income
$
41,086
$
49,205
$
147,406
$
35,652
Basic earnings per common share
$
0.87
$
0.94
$
3.08
$
0.68
Basic weighted-average shares
outstanding
47,034
52,304
47,921
52,640
Diluted earnings per common share
$
0.84
$
0.90
$
2.94
$
0.65
Diluted weighted-average shares
outstanding
48,851
54,602
50,085
55,087
Dividends paid per common share
$
0.15
$
2.125
$
0.45
$
2.325
Net income
$
41,086
$
49,205
$
147,406
$
35,652
Other comprehensive income (loss), net of
taxes:
Foreign currency translation
adjustments
(827
)
2,309
2,212
14,580
Pension and other post retirement
plans
532
747
1,595
2,355
Change in cash flow hedges
(927
)
(2,741
)
550
(1,788
)
Total other comprehensive income (loss),
net of taxes
(1,222
)
315
4,357
15,147
Comprehensive income, net
$
39,864
$
49,520
$
151,763
$
50,799
GRIFFON CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
(Unaudited)
June 30, 2024
September 30,
2023
CURRENT ASSETS
Cash and equivalents
$
133,452
$
102,889
Accounts receivable, net of allowances of
$11,009 and $11,264
320,385
312,432
Inventories
430,708
507,130
Prepaid and other current assets
65,797
57,139
Assets held for sale
14,747
—
Assets of discontinued operations
1,310
1,001
Total Current Assets
966,399
980,591
PROPERTY, PLANT AND EQUIPMENT,
net
274,980
279,218
OPERATING LEASE RIGHT-OF-USE
ASSETS
159,865
169,942
GOODWILL
327,864
327,864
INTANGIBLE ASSETS, net
619,867
635,243
OTHER ASSETS
25,115
21,731
ASSETS OF DISCONTINUED
OPERATIONS
4,774
4,290
Total Assets
$
2,378,864
$
2,418,879
CURRENT LIABILITIES
Notes payable and current portion of
long-term debt
$
8,138
$
9,625
Accounts payable
156,564
116,646
Accrued liabilities
185,218
193,098
Current portion of operating lease
liabilities
32,572
32,632
Liabilities of discontinued operations
4,216
7,148
Total Current Liabilities
386,708
359,149
LONG-TERM DEBT, net
1,499,211
1,459,904
LONG-TERM OPERATING LEASE
LIABILITIES
138,665
147,224
OTHER LIABILITIES
124,969
132,708
LIABILITIES OF DISCONTINUED
OPERATIONS
5,801
4,650
Total Liabilities
2,155,354
2,103,635
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Total Shareholders’ Equity
223,510
315,244
Total Liabilities and Shareholders’
Equity
$
2,378,864
$
2,418,879
GRIFFON CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Nine Months Ended June
30,
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
147,406
$
35,652
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
45,150
50,036
Stock-based compensation
19,726
28,587
Intangible asset impairments
—
100,000
Asset impairment charges -
restructuring
22,979
59,118
Provision for losses on accounts
receivable
874
689
Amortization of debt discounts and
issuance costs
3,169
3,068
Loss from debt extinguishment
1,700
—
Deferred income tax benefit
—
(25,744
)
Gain on sale of assets and investments
(1,448
)
(10,852
)
Change in assets and liabilities:
(Increase) decrease in accounts
receivable
(6,051
)
6,236
Decrease in inventories
55,939
84,190
(Increase) decrease in prepaid and other
assets
(3,351
)
1,887
Increase (decrease) in accounts payable,
accrued liabilities, income taxes payable and operating lease
liabilities
19,454
(36,945
)
Other changes, net
2,391
13,081
Net cash provided by operating
activities
307,938
309,003
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property, plant and
equipment
(47,849
)
(20,183
)
Payments related to sale of business
—
(2,568
)
Proceeds from the sale of property, plant
and equipment
13,572
11,840
Net cash used in investing activities
(34,277
)
(10,911
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid
(28,770
)
(127,372
)
Purchase of shares for treasury
(241,501
)
(98,350
)
Proceeds from long-term debt
179,500
102,558
Payments of long-term debt
(146,727
)
(139,244
)
Financing costs
(907
)
—
Other, net
(307
)
(152
)
Net cash used in financing activities
(238,712
)
(262,560
)
GRIFFON CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS - continued
(in thousands)
(Unaudited)
Nine Months Ended June
30,
2024
2023
CASH FLOWS FROM DISCONTINUED
OPERATIONS:
Net cash used in operating activities
(3,707
)
(2,799
)
Net cash used in discontinued
operations
(3,707
)
(2,799
)
Effect of exchange rate changes on cash
and equivalents
(679
)
(1,127
)
NET INCREASE IN CASH AND EQUIVALENTS
30,563
31,606
CASH AND EQUIVALENTS AT BEGINNING OF
PERIOD
102,889
120,184
CASH AND EQUIVALENTS AT END OF PERIOD
$
133,452
$
151,790
Griffon evaluates performance based on adjusted net income and
the related adjusted earnings 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 to adjusted net income and earnings per common share to
adjusted earnings per common share:
(in thousands, except per share
data)
For the Three Months Ended
June 30,
For the Nine Months Ended June
30,
2024
2023
2024
2023
Net income
$
41,086
$
49,205
$
147,406
$
35,652
Adjusting items:
Restructuring charges(1)
18,688
3,862
33,489
82,196
Intangible asset impairment
—
—
—
100,000
Loss from debt extinguishment
1,700
—
1,700
—
(Gain) loss on sale of buildings
725
—
167
(10,852
)
Special dividend ESOP charges
—
9,042
—
9,042
Strategic review - retention and other
1,870
5,812
9,204
20,234
Proxy expenses
—
568
—
2,685
Tax impact of above items(2)
(5,790
)
(4,704
)
(11,303
)
(51,759
)
Discrete and certain other tax provisions
(benefits), net(3)
2,247
6,519
2,640
(2,537
)
Adjusted net income
$
60,526
$
70,304
$
183,303
$
184,661
Earnings per common share
$
0.84
$
0.90
$
2.94
$
0.65
Adjusting items, net of tax:
Restructuring charges(1)
0.29
0.05
0.50
1.11
Intangible asset impairment
—
—
—
1.35
Loss from debt extinguishment
0.03
—
0.03
—
(Gain) loss on sale of buildings
0.01
—
—
(0.15
)
Special dividend ESOP charges
—
0.13
—
0.13
Strategic review - retention and other
0.03
0.08
0.14
0.28
Proxy expenses
—
0.01
—
0.04
Discrete and certain other tax provisions
(benefits), net(3)
0.05
0.12
0.05
(0.05
)
Adjusted earnings per common share
$
1.24
$
1.29
$
3.66
$
3.35
Diluted weighted-average shares
outstanding (in thousands)
48,851
54,602
50,085
55,087
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 three months ended June 30, 2024 and 2023,
restructuring charges relate to the CPP global sourcing expansion,
of which $15.7 million and $1.8 million, respectively, is included
in Cost of goods and services and $2.9 million and $2.1 million,
respectively, is included in SG&A in the Company's Condensed
Consolidated Statements of Operations. For the nine months ended
June 30, 2024 and 2023, restructuring charges relate to the CPP
global sourcing expansion, of which $28.7 million and $76.4
million, respectively, are included in Cost of goods and services
and $4.8 million and $5.8 million, respectively, are included in
SG&A in the Company's Condensed Consolidated Statements of
Operations.
(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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240806090370/en/
Company Brian G. Harris SVP &
Chief Financial Officer Griffon Corporation (212) 957-5000
IR@griffon.com Investor Relations Tom
Cook Managing Director ICR Inc. (203) 682-8250
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