Griffon Corporation Reports Fiscal Q3 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Griffon Corporation Reports Fiscal Q3 2024 Financial Results
Griffon Corporation ("Griffon" or the "Company") (NYSE:GFF) today reported its financial results for the fiscal 2024 third quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue | $647.8M | $683.4M | -5% | $688.94M |
| Net Income | $41.1M | $49.2M | -16.5% | N/A |
| EPS | $0.84 | $0.90 | -6.7% | $1.31 |
| Adjusted Net Income | $60.5M | $70.3M | -14% | N/A |
| Adjusted EPS | $1.24 | $1.29 | -3.9% | N/A |
| Adjusted EBITDA | $125.5M | $138.6M | -9% | N/A |
Interpretation : Griffon Corporation's financial performance has seen a decline with a 5% year-over-year (YoY) decrease in total revenue and a 6.7% YoY decrease in earnings per share (EPS). The reported revenue of $647.8 million missed the Wall Street consensus estimate of $688.94 million. Despite these declines, the adjusted earnings per share (EPS) of $1.24 were slightly below the $1.31 consensus.
Segment Financial Performance
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | YoY Change |
|---|---|---|---|
| Home and Building Products (HBP) | $394.2M | $402.6M | -2% |
| Consumer and Professional Products (CPP) | $253.6M | $281.3M | -10% |
| Segment | Q3 2024 Adjusted EBITDA | Q3 2023 Adjusted EBITDA | YoY Change |
|---|---|---|---|
| Home and Building Products (HBP) | $118.5M | $134.3M | -12% |
| Consumer and Professional Products (CPP) | $22.3M | $18.3M | +22% |
Interpretation : The Home and Building Products segment experienced a 2% revenue decline primarily due to an unfavorable product mix. In contrast, the Consumer and Professional Products segment saw a significant revenue drop of 10%, although its adjusted EBITDA increased by 22% due to improved North American production costs and reduced discretionary spending.
Comments from Company's Officers
Ronald J. Kramer, Chairman and Chief Executive Officer, emphasized Griffon's solid operating performance, improved profitability at CPP, and strong free cash flow generation during the quarter. These results align with the company's full-year expectations.
Dividends and Share Repurchase Program
During the third quarter, Griffon generated $120 million in free cash flow, allowing the company to reduce debt by $80 million, repurchase $19 million of stock, and fund its $7 million regular quarterly dividend. As of June 30, 2024, $101.1 million remained under the Board authorized share repurchase programs.
Forward Guidance
Griffon affirmed its full-year 2024 guidance, expecting revenue of $2.65 billion and Adjusted EBITDA of $555 million, excluding unallocated costs and charges related to strategic review and global sourcing expansion.
Stock Price Movement
The stock price remained unchanged following the earnings release, with an after-event percentage change of 0.0%.
In summary, while Griffon Corporation faced challenges with declining revenues and net income, strategic efforts in improving profitability and free cash flow underscore a robust capital allocation framework to deliver shareholder value. The company remains optimistic in meeting its full-year 2024 guidance.
