Griffon Corporation Reports Unaudited Consolidated Earnings Results for the First Quarter Ended December 31, 2017; Provides Earnings Guidance for the Fiscal Year 2018
January 31, 2018 at 08:06 am
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Griffon Corporation reported unaudited consolidated earnings results for the first quarter ended December 31, 2017. For the quarter, the company reported total consolidated net sales of $437,303,000 compared to $352,277,000 a year ago. Loss before taxes from continuing operations was $2,073,000 compared to income before taxes from continuing operations of $4,431,000 a year ago. Income from operations was $15,037,000 compared to income before taxes from continuing operations of $17,860,000 a year ago. Income from continuing operations was $22,831,000 compared to income before taxes from continuing operations of $7,044,000 a year ago. Net income was $30,989,000 or $0.72 per diluted share compared to $12,264,000 or $0.29 per diluted share a year ago. Net cash used in operating activities was $5,654,000 compared to net cash provided by operating activities of $282,000 a year ago. Acquisition of property, plant and equipment was $10,785,000 compared to $7,690,000 a year ago. Adjusted income from continuing operations was $2,409,000 or $0.06 per share compared to $2,623,000 or $0.06 per share a year ago. In the quarter ended December 31, 2017, the Company recognized a tax benefit of $24.9 million on a Loss before taxes from continuing operations of $2.1 million, compared to a tax benefit of $2.6 million on Income before taxes from continuing operations of $4.4 million in the comparable prior year quarter. Segment adjusted EBITDA was $43.7 million, an increase of 9% from the prior year quarter primarily driven by HBP revenue growth, partially offset by the impact of Telephonics' revenue decline. Segment adjusted EBITDA is defined as net income excluding interest income and expense, income taxes, depreciation and amortization and unallocated amounts (mainly corporate overhead), restructuring charges, loss on debt extinguishment and acquisition related expenses, as well as other items that may affect comparability, as applicable. As of December 31, 2017, net debt was $1.17 billion.
For fiscal year 2018, the company expects capital spending to be approximately $45 million. The company continues to expect 2018 segment adjusted EBITDA of $205 million.
Griffon Corporation is a diversified management and holding company. The Company owns and operates, and seeks to acquire, businesses in multiple industries and geographic markets. The Companyâs segments include Home and Building Products (HBP) and Consumer and Professional Products (CPP). The HBP segment conducts its operations through Clopay Corporation (Clopay). Clopay is the manufacturer and marketer of garage doors and rolling steel doors in North America. Residential and commercial sectional garage doors are sold through professional dealers and home center retail chains throughout North America under the brands Clopay, Ideal, and Holmes. The CPP segment is a global provider of branded consumer and professional tools; residential, industrial and commercial fans; home storage and organization products; and products that enhance indoor and outdoor lifestyles. CPP sells products globally through a portfolio of brands, including AMES, Hunter, True Temper, and ClosetMaid.
Griffon Corporation Reports Unaudited Consolidated Earnings Results for the First Quarter Ended December 31, 2017; Provides Earnings Guidance for the Fiscal Year 2018