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Jun 30, 2024
Griffon Q3 2024 Earnings Report
Griffon's Q3 2024 performance saw a revenue decrease, solid operating performance in Home and Building Products, improved profitability in Consumer and Professional Products, and strong free cash flow generation.
Key Takeaways
Griffon Corporation reported a 5% decrease in revenue to $647.8 million for the third quarter of fiscal year 2024, with net income decreasing to $41.1 million, or $0.84 per share. Adjusted net income was $60.5 million, or $1.24 per share. The company generated strong free cash flow of $120 million, which was used to reduce debt, repurchase stock, and fund dividends.
Revenue decreased by 5% to $647.8 million compared to 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.
Adjusted EBITDA was $125.5 million, a 9% decrease from the prior year quarter.
Generated strong free cash flow of $120 million, which was used to reduce debt by $80 million, repurchase $19 million of stock, and fund regular quarterly dividend.
Forward Guidance
The company continues 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.
Positive Outlook
- Expect 2024 revenue of $2.65 billion.
- Expect 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.
- Expect amortization of $22 million.
- Expect depreciation of $41 million.
- Expect free cash flow to exceed net income.
Challenges Ahead
- Expect interest expense of $103 million.
- Expect a normalized tax rate of 28%.
- Revenue decreased by 5% to $647.8 million compared to 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.
Historical Earnings Impact
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