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Sep 30, 2023
Griffon Q4 2023 Earnings Report
Griffon reported a decrease in revenue but an increase in income from continuing operations compared to the prior year quarter. Adjusted income from continuing operations and adjusted EBITDA also decreased slightly. The Home and Building Products segment saw revenue decline due to decreased residential volume, while the Consumer and Professional Products segment was affected by reduced customer demand and elevated inventory levels.
Key Takeaways
Griffon Corporation's Q4 2023 results showed a decrease in revenue to $641 million from $709 million in the prior year quarter. Income from continuing operations was $42.0 million, compared to a loss of $415.4 million in the prior year quarter. Adjusted EBITDA decreased slightly to $121.3 million from $124.8 million. The company is focusing on strategic initiatives, including expanding its global sourcing strategy and optimizing its capital allocation.
Revenue decreased by 10% compared to the prior year quarter, totaling $641 million.
Income from continuing operations was $42.0 million, a significant improvement from the prior year's loss of $415.4 million.
Adjusted EBITDA decreased by 3% to $121.3 million.
The company is progressing with its global sourcing strategy expansion within the Consumer and Professional Products segment.
Griffon
Griffon
Forward Guidance
Griffon expects fiscal year 2024 revenue of $2.6 billion and adjusted EBITDA of $525 million, excluding certain unallocated costs and charges. HBP segment revenue is expected to decrease by 3% to 5%, while CPP revenue is also expected to decrease by 3% to 5%.
Positive Outlook
- HBP EBITDA margin for 2024 is expected to continue to be in excess of 30%.
- Free cash flow is expected to exceed net income.
- CPP EBITDA margin is expected to see modest improvement as AMES U.S. operations transition to an asset-light operating model.
- Focus on opportunistically repurchasing shares.
- Focus on reducing debt.
Challenges Ahead
- Griffon anticipates 2024 HBP segment revenue will decrease by 3% to 5% year-over-year due to softer residential repair and remodeling demand.
- CPP 2024 revenue is expected to decrease by 3% to 5% year-over-year due to continued soft consumer demand and elevated customer inventory levels.
- Fiscal year 2024 interest expense is expected to be $103 million.
- Charges related to AMES’s global sourcing expansion of $25 million.
- Strategic review retention costs of $10 million.