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Jun 30, 2022
Griffon Q3 2022 Earnings Report
Griffon's Q3 2022 earnings were marked by a significant increase in revenue and adjusted EBITDA, driven by strong performance in the Home and Building Products segment and the contribution from the Hunter acquisition, although Consumer and Professional Products experienced reduced volume due to slowing consumer demand.
Key Takeaways
Griffon Corporation reported a 31% increase in revenue to $768.2 million for the third quarter, with a record adjusted income from continuing operations of $66.5 million, or $1.23 per share. The Home and Building Products segment drove the results, with favorable price trends, while the Consumer and Professional Products segment experienced reduced volume.
Revenue increased by 31% to $768.2 million, including a $105.8 million contribution from the Hunter acquisition.
Adjusted income from continuing operations reached a record $66.5 million, or $1.23 per share.
Adjusted EBITDA from continuing operations increased by 124% to $134.8 million.
The company closed the sale of Telephonics to TTM Technologies for $330 million in cash.
Griffon
Griffon
Forward Guidance
The trends experienced in each of our segments through the third quarter are expected to continue for the remainder of the year. We remain on target to achieve our full-year revenue guidance of $2.85 billion with at least $475 million of EBITDA before unallocated costs. Leverage at the end of the year is expected to be below 3.0x net debt to EBITDA.
Positive Outlook
- Full-year revenue guidance of $2.85 billion is on target.
- Targeting at least $475 million of EBITDA before unallocated costs for the full year.
- Expecting year-end leverage to be below 3.0x net debt to EBITDA.
- Commercial product performance was particularly strong due to favorable volume and pricing.
- Continue to realize benefits from the investments we made in CornellCookson and its integration with Clopay.
Challenges Ahead
- Consumer and Professional Products continues to experience reduced volume in the North American and United Kingdom markets due to slowing consumer demand
- Consumer and Professional Products continues to experience reduced volume due to rebalancing of customer inventory levels
- Home and Building Products reduced residential volume due to labor and supply chain disruptions.
- Foreign exchange was 3% unfavorable in Consumer and Professional Products
- Increased material, labor and transportation costs