NYSE$GFF

Griffon Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Griffon's Q3 2022 earnings were marked by a significant increase in revenue and adjusted EBITDA, driven by strong performance in the Home and Building Products segment and the contribution from the Hunter acquisition, although Consumer and Professional Products experienced reduced volume due to slowing consumer demand.

Griffon Corporation reported a 31% increase in revenue to $768.2 million for the third quarter, with a record adjusted income from continuing operations of $66.5 million, or $1.23 per share. The Home and Building Products segment drove the results, with favorable price trends, while the Consumer and Professional Products segment experienced reduced volume.

  • Revenue increased by 31% to $768.2 million, including a $105.8 million contribution from the Hunter acquisition.
  • Adjusted income from continuing operations reached a record $66.5 million, or $1.23 per share.
  • Adjusted EBITDA from continuing operations increased by 124% to $134.8 million.
  • The company closed the sale of Telephonics to TTM Technologies for $330 million in cash.

Headline financials

Total Revenue

$768M

Previous: $647M+18.8%
EPS (adj)

$1.23

Previous: $0.43+186.0%
Adjusted EBITDA

$135M

Previous: $64.8M+108.0%
Capital Expenditures

-$11.5M

Previous: -$9.9M-16.0%
Free Cash Flow

$129M

Previous: $6.8M+1793.0%
Net Income

$140M

Previous: $16.7M+739.7%
Operating Income

$103M

Previous: $44.5M+132.0%
Gross Profit

$261M

Previous: $170M+53.2%
Cash & Equivalents

$145M

Previous: $221M-34.4%
Total Assets

$3.5B

Previous: $2.55B+37.5%
Stock-Based Comp

$6.02M

Previous: $5.59M+7.7%

Revenue & EPS history

Griffon · Revenue · Quarterly

$768M

Q3 2022+18.8%vs Q3 2021
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Griffon · $780M total across 2 segments · Q2 2022

  • Consumer & Pro Products
    $411M
  • Home & Bldg Products
    $369M

Forward guidance

The trends experienced in each of our segments through the third quarter are expected to continue for the remainder of the year. We remain on target to achieve our full-year revenue guidance of $2.85 billion with at least $475 million of EBITDA before unallocated costs. Leverage at the end of the year is expected to be below 3.0x net debt to EBITDA.

Tailwinds

  • Full-year revenue guidance of $2.85 billion is on target.
  • Targeting at least $475 million of EBITDA before unallocated costs for the full year.
  • Expecting year-end leverage to be below 3.0x net debt to EBITDA.
  • Commercial product performance was particularly strong due to favorable volume and pricing.
  • Continue to realize benefits from the investments we made in CornellCookson and its integration with Clopay.

Headwinds

  • Consumer and Professional Products continues to experience reduced volume in the North American and United Kingdom markets due to slowing consumer demand
  • Consumer and Professional Products continues to experience reduced volume due to rebalancing of customer inventory levels
  • Home and Building Products reduced residential volume due to labor and supply chain disruptions.
  • Foreign exchange was 3% unfavorable in Consumer and Professional Products
  • Increased material, labor and transportation costs

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+1.3%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+3.3%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+22.7%

Q4 2011

Best reaction

-18.7%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-1.6%-10.5%-8.2%
Q1 2026+5.7%+10.5%-8.6%
Q4 2025+3.9%+7.4%+14.7%
Q2 2025+4.4%+8.3%+3.7%
Q1 2025+8.9%+5.8%-5.1%
Q4 2024+13.6%+8.7%+15.2%
Q3 2024-16.2%-13.9%-10.3%
Q2 2024+9.6%+2.3%-3.2%
Q1 2024+12.2%+12.9%+15.0%
Q4 2023-4.7%-1.6%+19.8%
Q3 2023-7.3%-1.9%-1.0%
Q2 2023+7.5%+5.5%+20.4%
Q1 2023+4.1%+9.2%-4.5%
Q4 2022+7.6%+7.3%+4.0%
Q3 2022+8.4%+2.5%+17.2%
Q2 2022+6.0%+30.0%+78.9%
Q1 2022+0.0%-4.2%+5.2%
Q4 2021-10.2%-9.3%-11.4%
Q3 2021-5.1%-6.3%-0.2%
Q2 2021+0.2%+3.5%-2.9%
Q1 2021+2.9%+7.5%+12.7%
Q4 2020-18.7%-16.4%-19.7%
Q3 2020+9.1%+5.0%+8.5%
Q2 2020+3.6%-6.7%+5.5%
Q1 2020-5.1%-14.2%-20.5%
Q4 2019+15.0%+3.6%-7.4%
Q3 2019+15.1%+14.0%+6.7%
Q2 2019-12.7%-13.8%-26.3%
Q1 2019+14.5%+20.4%+26.6%
Q4 2018-6.9%-2.6%-13.0%
Q3 2018+2.2%-1.1%+2.0%
Q2 2018+8.0%+14.0%+15.0%
Q1 2018-11.2%-14.1%-10.5%
Q4 2017+9.0%+10.9%-2.4%
Q3 2017-8.5%-8.0%-9.9%
Q2 2017-6.9%-4.7%-7.7%
Q1 2017+1.8%-0.2%+0.0%
Q4 2016+3.5%+10.2%+25.1%
Q3 2016+3.1%+1.1%+3.6%
Q2 2016+0.4%
Q1 2016-3.2%
Q4 2015-2.0%
Q3 2015+8.2%
Q2 2015-4.2%
Q1 2015+8.8%
Q4 2014+0.9%
Q3 2014-0.2%
Q2 2014+8.4%
Q1 2014-8.8%
Q4 2013+4.3%
Q3 2013-4.8%
Q2 2013+2.4%
Q1 2013-1.7%
Q4 2012-11.8%
Q4 2011+22.7%
Q3 2012+18.0%
Q2 2012-4.5%
Q1 2011+5.5%
Q1 2012+0.0%
Q4 2009+3.3%
Q2 2011+3.3%
Q3 2010-6.3%
Q3 2011-6.3%
Q4 2010-6.3%
Q2 2010-6.8%

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