{"id":809033,"date":"2025-02-05T07:36:02","date_gmt":"2025-02-05T12:36:02","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/griffon-corporation-announces-first-quarter-results-4\/"},"modified":"2025-02-05T07:36:02","modified_gmt":"2025-02-05T12:36:02","slug":"griffon-corporation-announces-first-quarter-results-4","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/griffon-corporation-announces-first-quarter-results-4\/","title":{"rendered":"Griffon Corporation Announces First Quarter Results"},"content":{"rendered":"

<\/p>\n

Griffon Corporation Announces First Quarter Results<\/span><\/b><\/p>\n

NEW YORK–(BUSINESS WIRE<\/a>)–
\nGriffon Corporation (\u201cGriffon\u201d or the \u201cCompany\u201d) (NYSE:GFF) today reported results for the fiscal 2025 first quarter ended December 31, 2024.<\/p>\n

\nRevenue for the first quarter totaled $632.4 million, a 2% decrease compared to $643.2 million in the prior year quarter.<\/p>\n

\nNet income totaled $70.9 million, or $1.49 per share, compared to $42.2 million, or $0.82 per share, in the prior year quarter. Excluding all items that affect comparability from both periods, adjusted net income was $65.9 million, or $1.39 per share, in the current year quarter compared to $55.3 million, or $1.07 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.<\/p>\n

\nAdjusted EBITDA for the first quarter was $131.2 million, a 13% increase from the prior year quarter of $116.4 million. Adjusted EBITDA, excluding unallocated amounts (primarily corporate overhead) of $14.0 million in the current quarter and $13.9 million in the prior year quarter, totaled $145.2 million, increasing 11% from the prior year of $130.3 million. For a reconciliation of adjusted EBITDA, a non-GAAP measure, to income before taxes, and the definition of adjusted EBITDA, see the attached table.<\/p>\n

\n\u201cFiscal 2025 is off to a strong start, with our first quarter results highlighted by free cash flow of $143 million, continued solid operating performance at Home and Building Products (“HBP”), and improved profitability from our global sourcing expansion initiative at Consumer and Professional Products (\u201cCPP\u201d),\u201d said Ronald J. Kramer, Chairman and Chief Executive Officer. \u201cWe are pleased with our performance and are on track to meet our financial targets for the year.\u201d<\/p>\n

Segment Operating Results<\/span><\/b><\/p>\n

Home and Building Products (“HBP”)<\/b><\/p>\n

\nHBP’s first quarter revenue of $395.4 million remained consistent with the prior year quarter reflecting increased residential volume, offset by reduced commercial volume.<\/p>\n

\nAdjusted EBITDA of $127.0 million increased 2% from $124.7 million in the prior year quarter. The variance to the prior year resulted from reduced material costs, partially offset by increased labor and distribution costs.<\/p>\n

Consumer and Professional Products (“CPP”)<\/b><\/p>\n

\nCPP’s first quarter revenue of $237.0 million decreased 4% compared to the prior year quarter, primarily driven by decreased volume of 8% due to reduced consumer demand in North America and the United Kingdom, partially offset by organic growth in Australia. The Pope acquisition contributed 4%.<\/p>\n

\nAdjusted EBITDA of $18.2 million increased by $12.7 million from $5.5 million in the prior year quarter, primarily due to the benefits from the global sourcing expansion initiative and increased revenue in Australia as noted above.<\/p>\n

Taxes<\/span><\/b><\/p>\n

\nThe Company reported pretax income from operations for the quarters ended December 31, 2024 and December 31, 2023, and recognized effective tax rates of 27.3% and 29.9%, respectively. Excluding all items that affect comparability, the effective tax rates for the quarters ended December 31, 2024 and 2023 were 27.7% and 27.9%, respectively.<\/p>\n

Balance Sheet and Capital Expenditures<\/span><\/b><\/p>\n

\nAs of December 31, 2024, the Company had cash and equivalents of $152.0 million and total debt outstanding of $1.48 billion, resulting in net debt of $1.32 billion. Leverage, as calculated in accordance with our credit agreement (see the attached table), was 2.4x net debt to EBITDA compared to 2.5x at December 31, 2023 and 2.6x at September 30, 2024. Free cash flow of $142.7 million for the three month period ended December 31, 2024 reflects the Company’s strong operating results through the first quarter of 2025. At December 31, 2024, borrowing availability under the revolving credit facility was $427.5 million, subject to certain loan covenants. During the quarter the Company sold real estate as a result of the CPP sourcing expansion initiative, realizing $17.2 million in proceeds. This offset capital expenditures of $17.5 million, resulting in net capital expenditures of $0.2 million for the quarter ended December 31, 2024. For a reconciliation of free cash flow, a non-GAAP measure, to net cash provided by operating activities, and the definition of free cash flow, see the attached table.<\/p>\n

Share Repurchases<\/span><\/b><\/p>\n

\nShare repurchases during the quarter ended December 31, 2024 totaled 0.6 million for a total of $42.3 million, or an average of $69.40 per share. Since April 2023 and through December 31, 2024, the Company purchased 9.5 million shares of common stock or 16.7% of the outstanding shares, for a total of $467.6 million or an average of $49.09 per share. As of December 31, 2024, $390.3 million remained under the Board authorized share repurchase program.<\/p>\n

Conference Call Information<\/span><\/b><\/p>\n

\nThe Company will hold a conference call today, February 5, 2025, at 8:30 AM ET.<\/p>\n

\nThe 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 13751075. Participants are encouraged to dial-in at least 10 minutes before the scheduled start time.<\/p>\n

\nA replay of the call will be available starting on Wednesday, February 5, 2025 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: 13751075. The replay will be available through Wednesday, February 19, 2025 at 11:59 PM ET.<\/p>\n

Forward-looking Statements<\/span><\/b><\/p>\n

\n\u201cSafe Harbor\u201d 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, industries in which Griffon Corporation (the \u201cCompany\u201d or \u201cGriffon\u201d) operates and the United States and global economies that are not historical are hereby identified as \u201cforward-looking statements,\u201d and may be indicated by words or phrases such as \u201canticipates,\u201d \u201csupports,\u201d \u201cplans,\u201d \u201cprojects,\u201d \u201cexpects,\u201d \u201cbelieves,\u201d “achieves”, \u201cshould,\u201d \u201cwould,\u201d \u201ccould,\u201d \u201chope,\u201d \u201cforecast,\u201d \u201cmanagement is of the opinion,\u201d \u201cmay,\u201d \u201cwill,\u201d \u201cestimates,\u201d \u201cintends,\u201d \u201cexplores,\u201d \u201copportunities,\u201d 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\u2019s ability to achieve expected savings and improved operational results from cost control, restructuring, integration and disposal initiatives (including the expanded CPP global 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\u2019s operating companies; the ability of Griffon\u2019s 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\u2019s operating companies; the potential impact of seasonal variations and uncertain weather patterns on certain of Griffon\u2019s businesses; political events or military conflicts that could impact the worldwide economy; a downgrade in Griffon\u2019s credit ratings; changes in international economic conditions including inflation, interest rate and currency exchange fluctuations; the reliance by certain of Griffon\u2019s businesses on particular third party suppliers and manufacturers to meet customer demands; the relative mix of products and services offered by Griffon\u2019s 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\u2019s 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\u2019s 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 pandemics, such as COVID-19, 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\u2019s 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\u2019s 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.<\/p>\n

About Griffon Corporation<\/span><\/b><\/p>\n

\nGriffon 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. As long-term investors, we intend to continue to grow and strengthen our existing businesses, and to diversify further through investments in our businesses and acquisitions.<\/p>\n

\nGriffon conducts its operations through two reportable segments:<\/p>\n