Griffon Corporation · Q4 2022 earnings

Briefing

Griffon's Q4 2022 performance was marked by a significant loss due to a non-cash impairment charge, though adjusted results showed substantial growth driven by the Home and Building Products segment and the Hunter Fan acquisition.

Griffon Corporation reported a Q4 revenue increase of 24% to $709 million, but a net loss of $415.4 million due to a $454.8 million non-cash impairment charge. Adjusted income from continuing operations was $59.7 million, and adjusted EBITDA increased by 135% to $125 million. The Home and Building Products segment drove record revenue and EBITDA, while Consumer and Professional Products experienced reduced volume in North America and the UK.

• Q4 revenue increased by 24% year-over-year to $709 million.
• Loss from continuing operations was $415.4 million, impacted by a $454.8 million non-cash impairment charge.
• Adjusted income from continuing operations rose to $59.7 million, or $1.09 per share.
• Adjusted EBITDA from continuing operations increased by 135% to $125 million.

Headline financials

Revenue & EPS history

Griffon expects 2023 revenue of $2.95 billion and adjusted EBITDA of at least $500 million excluding unallocated costs of $56 million and approximately $16 million of retention and other costs related to the strategic review process. We expect fiscal year 2023 free cash flow, which includes capital expenditures of $50 million, to exceed net income. Depreciation and amortization are expected to be $72 million, of which $22 million is amortization. We expect net interest expense of approximately $92 million for fiscal 2023 based on current interest rates. Our expected normalized continuing operations tax rate is approximately 29%.