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Sep 30, 2021
Griffon Q4 2021 Earnings Report
Griffon's Q4 2021 performance reflected a mix of revenue growth and challenges, with overall revenue increasing slightly but net income decreasing compared to the prior year. Adjusted EBITDA from continuing operations saw a modest increase, while the company navigated supply chain disruptions and cost pressures.
Key Takeaways
Griffon Corporation reported a 3% increase in revenue to $570 million for the fourth quarter, while net income decreased to $15.9 million, or $0.30 per share. Adjusted EBITDA from continuing operations increased by 5% to $53 million. The company faced challenges including U.S. labor, transportation, and supply chain disruptions, but saw strong demand in its businesses.
Q4 revenue increased by 3% to $570 million compared to the prior year.
Net income for the quarter was $15.9 million, or $0.30 per share, down from $20.1 million, or $0.41 per share, in the prior year.
Adjusted EBITDA from continuing operations increased by 5% to $53 million.
The company is progressing with strategic initiatives to improve margins and capitalize on acquisition opportunities.
Griffon
Griffon
Griffon Revenue by Segment
Revenue by Segment
Home and Building Products Revenue
CapyFin.comConsumer and Professional Products Revenue
CapyFin.com Forward Guidance
Griffon expects significant additional benefits to come as it executes on its strategic initiatives to improve margins. Additionally, the company is well positioned to take advantage of its balance sheet firepower to invest in its businesses and capitalize on acquisition opportunities, which it expects will be further bolstered after the completion of its Telephonics strategic alternative process.
Positive Outlook
- Strategic initiatives expected to improve margins.
- Well-positioned to invest in businesses.
- Capitalizing on acquisition opportunities.
- Balance sheet firepower available.
- Telephonics strategic alternative process completion.
Challenges Ahead
- Current economic conditions and uncertainties in the housing, credit and capital markets
- The ability to achieve expected savings from cost control, restructuring, integration and disposal initiatives
- Increasing competition and pricing pressures in the markets served by Griffon’s operating companies
- Reduced military spending by the government on projects for which Griffon's Telephonics Corporation supplies products, including as a result of defense budget cuts or other government actions
- Increases in the cost or lack of availability of raw materials such as resin, wood and steel, components or purchased finished goods, including the impact from tariffs
Revenue & Expenses
Visualization of income flow from segment revenue to net income