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Sep 30, 2022
Griffon Q4 2022 Earnings Report
Griffon's Q4 2022 performance was marked by a significant loss due to a non-cash impairment charge, though adjusted results showed substantial growth driven by the Home and Building Products segment and the Hunter Fan acquisition.
Key Takeaways
Griffon Corporation reported a Q4 revenue increase of 24% to $709 million, but a net loss of $415.4 million due to a $454.8 million non-cash impairment charge. Adjusted income from continuing operations was $59.7 million, and adjusted EBITDA increased by 135% to $125 million. The Home and Building Products segment drove record revenue and EBITDA, while Consumer and Professional Products experienced reduced volume in North America and the UK.
Q4 revenue increased by 24% year-over-year to $709 million.
Loss from continuing operations was $415.4 million, impacted by a $454.8 million non-cash impairment charge.
Adjusted income from continuing operations rose to $59.7 million, or $1.09 per share.
Adjusted EBITDA from continuing operations increased by 135% to $125 million.
Griffon
Griffon
Forward Guidance
Griffon expects 2023 revenue of $2.95 billion and 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. We expect fiscal year 2023 free cash flow, which includes capital expenditures of $50 million, to exceed net income. Depreciation and amortization are expected to be $72 million, of which $22 million is amortization. We expect net interest expense of approximately $92 million for fiscal 2023 based on current interest rates. Our expected normalized continuing operations tax rate is approximately 29%.
Positive Outlook
- Revenue is expected to be $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.
- Fiscal year 2023 free cash flow, which includes capital expenditures of $50 million, to exceed net income.
- Depreciation and amortization are expected to be $72 million, of which $22 million is amortization.
- Expected normalized continuing operations tax rate is approximately 29%.