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Dec 31, 2022
Griffon Q1 2023 Earnings Report
Griffon reported a strong start to fiscal year 2023 with increased revenue and adjusted EBITDA.
Key Takeaways
Griffon Corporation reported a 10% increase in revenue to $649.4 million for the first quarter of fiscal 2023. Income from continuing operations increased to $48.7 million, or $0.88 per share. Adjusted EBITDA from continuing operations increased by 83% to $108.6 million. The company is on track to meet its financial targets for the year.
Revenue increased by 10% to $649.4 million.
Income from continuing operations was $48.7 million, or $0.88 per share.
Adjusted EBITDA from continuing operations increased by 83% to $108.6 million.
Free cash flow was $82.6 million.
Griffon
Griffon
Forward Guidance
Griffon provided its 2023 expectations with an increase to interest expense.
Positive Outlook
- Revenue of $2.95 billion
- Adjusted EBITDA of at least $500 million excluding unallocated costs of $56 million and approximately $16 million of retention and other costs related to the strategic review process
- Capital expenditures of $50 million
- Free cash flow to exceed net income
- Normalized tax rate of 29%
Challenges Ahead
- Interest expense expectation increased to $103 million (from $92 million)
- Uncertain macroeconomic environment
- Reduced consumer demand in Consumer and Professional Products segment
- Rebalancing of customer inventory levels in Consumer and Professional Products segment
- Strategic alternatives review process ongoing with no assurance of a transaction