NYSE$GFF

Griffon Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Griffon's Q4 2021 performance reflected a mix of revenue growth and challenges, with overall revenue increasing slightly but net income decreasing compared to the prior year. Adjusted EBITDA from continuing operations saw a modest increase, while the company navigated supply chain disruptions and cost pressures.

Griffon Corporation reported a 3% increase in revenue to $570 million for the fourth quarter, while net income decreased to $15.9 million, or $0.30 per share. Adjusted EBITDA from continuing operations increased by 5% to $53 million. The company faced challenges including U.S. labor, transportation, and supply chain disruptions, but saw strong demand in its businesses.

  • Q4 revenue increased by 3% to $570 million compared to the prior year.
  • Net income for the quarter was $15.9 million, or $0.30 per share, down from $20.1 million, or $0.41 per share, in the prior year.
  • Adjusted EBITDA from continuing operations increased by 5% to $53 million.
  • The company is progressing with strategic initiatives to improve margins and capitalize on acquisition opportunities.

Headline financials

Total Revenue

$651M

Previous: $661M-1.5%
EPS (adj)

$0.40

Previous: $0.44-9.1%
Capital Expenditures

$3.06M

Previous: $14.2M-78.5%
Net Income

$15.9M

Previous: $20.1M-20.9%
Operating Income

$32.4M

Previous: $45.8M-29.3%
Gross Profit

$156M

Previous: $174M-10.7%
Cash & Equivalents

$249M

Previous: $218M+14.0%
Total Assets

$2.6B

Previous: $2.45B+6.4%
Stock-Based Comp

$5M

Previous: $4.77M+4.7%

Revenue & EPS history

Griffon · Revenue · Quarterly

$651M

Q4 2021-1.5%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Griffon · $570M total across 2 segments · Q4 2021

  • Home & Bldg Products
    $288M+12.1%
  • Consumer & Pro Products
    $282M-4.2%

Forward guidance

Griffon expects significant additional benefits to come as it executes on its strategic initiatives to improve margins. Additionally, the company is well positioned to take advantage of its balance sheet firepower to invest in its businesses and capitalize on acquisition opportunities, which it expects will be further bolstered after the completion of its Telephonics strategic alternative process.

Tailwinds

  • Strategic initiatives expected to improve margins.
  • Well-positioned to invest in businesses.
  • Capitalizing on acquisition opportunities.
  • Balance sheet firepower available.
  • Telephonics strategic alternative process completion.

Headwinds

  • Current economic conditions and uncertainties in the housing, credit and capital markets
  • The ability to achieve expected savings from cost control, restructuring, integration and disposal initiatives
  • Increasing competition and pricing pressures in the markets served by Griffon’s operating companies
  • Reduced military spending by the government on projects for which Griffon's Telephonics Corporation supplies products, including as a result of defense budget cuts or other government actions
  • Increases in the cost or lack of availability of raw materials such as resin, wood and steel, components or purchased finished goods, including the impact from tariffs

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 Q4 2021

Historical avgQ4 2021

+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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