Griffon Corporation (NYSE:GFF) Q1 2022 Earnings Conference Call February 1, 2022 8:30 AM ET Company Participants Brian Harris - CFO Ron Kramer - Chairman and CEO Bob Mehmel - President and COO Conference Call Participants Bob Labick - CJS Securities Josh Chan - Baird Julio Romero - Sidoti & Company Justin Bergner - Gabelli Funds Noah Merkousko - Stephens Operator Hello and welcome to the Griffon Corporation First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode ...

Financial Data and Key Metrics Changes - Griffon Corporation achieved record revenue of $2.5 billion in 2021, with record segment adjusted EBITDA of $317 million and adjusted earnings of $1.86 per share [7][19] - For Q4 2021, revenue increased by 3% to $570 million, and segment adjusted EBITDA increased by 6% to $67 million, with a margin increase of 30 basis points to 11.7% [22][23] - GAAP net income for Q4 was $16 million or $0.30 per share, compared to $20 million or $0.41 per share in the prior year [25][26] Business Line Data and Key Metrics Changes - Consumer and Professional Products (AMES) revenue increased by 8% year-over-year, with adjusted EBITDA up 11% [12] - Home & Building Products (Clopay) saw record revenue and EBITDA, increasing by 12% and 18% respectively, driven by strong demand in both residential and commercial products [14][15] - Telephonics revenue decreased by 15% year-over-year, with EBITDA also down by 15%, impacted by reduced volume and delayed awards [17] Market Data and Key Metrics Changes - The company reported unprecedented levels of backlog, indicating strong demand moving into 2022 [7][10] - Labor, transportation, and supply chain disruptions have created challenges, particularly in the second half of 2021, affecting the ability to meet market demand [10][12] Company Strategy and Development Direction - The company is exploring strategic alternatives for Telephonics, including a potential sale, to focus resources on areas with stronger growth potential [11] - Griffon is actively pursuing acquisitions that are value-enhancing and immediately accretive, with a robust pipeline of potential targets [11][40] - The company aims to capitalize on the strength of the housing market and homeowner activity through strategic investments and portfolio repositioning [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand strength despite ongoing supply chain disruptions and inflationary pressures [38][39] - The company anticipates significant margin compression in the first half of fiscal 2022, with expectations of recovery in the latter half [32][51] - Management highlighted the importance of diversifying the supplier base to adapt to changing market dynamics [33][60] Other Important Information - The company reduced its leverage to 2.8 times net debt to EBITDA, below its target of 3.5 times, providing flexibility for acquisitions [18][19] - A dividend increase to $0.09 per share was announced, marking the 41st consecutive quarterly dividend [19] Q&A Session Summary Question: Guidance and Margin Expectations - Management expects the first half of the year to be more challenging due to inflationary input costs and supply chain disruptions, with price parity anticipated by the end of the second quarter [45][46] Question: Balance Sheet and M&A Focus - The company has significant buying power exceeding $1 billion and is actively looking for complementary acquisitions, particularly in the AMES and Clopay businesses [47][48] Question: Transportation Costs and Supply Chain Relief - Management expects relief from transportation and supply chain disruptions in the second half of fiscal 2022, with ongoing challenges anticipated in the first half [56] Question: Customer Diversification and Inventory Needs - Customers are diversifying their supplier base due to inventory shortages, which presents both opportunities and challenges for the company [53][60] Question: Long-term EBITDA Margins for HBP - Management believes the Clopay business has strong growth potential, with expectations for increased volume and improved margins in the long term [66]

Financial Data and Key Metrics Changes - Revenue increased by 2% year-over-year to $647 million, or 4% when excluding the SEG divestiture [5][18] - Adjusted EBITDA decreased by 7% to $65 million, while adjusted EBITDA margins increased by 100 basis points to 10% [18] - GAAP net income was $17 million, or $0.31 per share, compared to $22 million, or $0.50 per share in the prior year [21] - Adjusted net income was $23 million, or $0.43 per share, compared to $26 million, or $0.59 per share in the prior year [21] - Cash and equivalents stood at $221 million, with net debt of $835 million and leverage of 2.9 times, marking a 1.5 turn improvement from the prior year [15][23] Business Line Data and Key Metrics Changes - In the Consumer Professional Products (CPP) segment, robust demand was noted, although shipping delays impacted US revenue and EBITDA [11] - The Home and Building Products (HBP) segment saw strong demand for residential and commercial door products, with sales increasing due to higher volume and favorable pricing [12] - Defense Electronics revenue decreased due to reduced volume from timing of deliveries, but EBITDA increased due to reduced operating expenses [13] Market Data and Key Metrics Changes - Backlog increased to $375 million from $341 million year-over-year, with a trailing 12-month book-to-bill ratio of 1.1 times [14] - The housing market and consumer spending remained strong, supporting demand across product categories [6][25] Company Strategy and Development Direction - The AMES strategic initiative aims to consolidate operations, increase automation, and support e-commerce growth, expected to improve margins by the end of 2023 [8] - The company anticipates annual cash savings of $30 million to $35 million and inventory reductions of the same magnitude from the AMES initiative [9] - The company is focused on improving margins and capitalizing on acquisition opportunities while maintaining a strong balance sheet [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand trends across all segments despite challenges from cost inflation and supply chain disruptions [26][25] - The company is closely monitoring the COVID-19 Delta variant and adjusting operations as necessary to ensure employee safety [10] - Management reiterated full-year guidance, expecting over $2.5 billion in revenue and $320 million in adjusted EBITDA [25] Other Important Information - The company declared a quarterly dividend of $0.08 per share, marking the 40th consecutive quarterly dividend [16] - The company has generated $212 million in free cash flow over the past three years and reduced leverage significantly [28] Q&A Session Summary Question: Raw material and transportation headwinds - Management acknowledged the impact of rising raw material costs and transportation delays, indicating a lag in passing through price increases [34][35] Question: M&A environment and capital allocation - Management noted that while capital is abundant, competition has driven up asset prices, and they are focused on improving existing operations rather than rushing into acquisitions [37][39] Question: Demand trends in DIY products - Management reported strong backlog levels, indicating continued demand despite signs of slowing in DIY products [43] Question: New product launches in HBP segment - New product launches in the HBP segment have been well received, contributing positively to sales [44] Question: Shipping delays and backlog - Management confirmed that shipping delays have pushed some revenue to later dates but demand remains strong across segments [51][52] Question: Pricing strength in HBP segment - Pricing strength in the HBP segment was attributed to passing through rising input costs and a favorable product mix [56] Question: Commercial growth in HBP - Management indicated strong growth in the commercial side of the HBP business, with expectations for further growth if an infrastructure bill is passed [62][63]

Griffon Griffon Q3 FY 2021 Investor Presentation July 2021 Cautionary Note Regarding Forward-Looking Statements This presentation contains "forward-looking statements" – statements that address future, not past events. In this context, forwardlooking statements often address our expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," or "will." Forward looking statements by their nature address m ...

Griffon Corporation (NYSE:GFF) Q2 2021 Earnings Conference Call April 29, 2021 4:30 PM ET Company Participants Brian Harris - Chief Financial Officer Ron Kramer - Chairman and CEO Conference Call Participants Bob Labick - CJS Securities Julio Romero - Sidoti & Company Josh Chan - Baird Justin Bergner - Gabelli & Company Keith Hughes - Truist Securities Trey Grooms - Stephens Operator Greetings. And welcome to Griffon Corporation’s Second Quarter 2021 Earnings Conference Call. At this time, all participants ...

Financial Data and Key Metrics Changes - The company reported a revenue increase of 11% to $609 million, adjusted EBITDA up 35% to $75 million, and adjusted EPS up 56% compared to the prior-year quarter [6][17] - Normalized gross profit for the quarter was $177 million, increasing 16% over the prior year, with gross margin expanding by 120 basis points to 29% [17] - First quarter GAAP net income was $29.5 million or $0.55 per share compared to $10.6 million or $0.24 per share in the prior-year period [17][18] Business Segment Data and Key Metrics Changes - Revenue for Consumer and Professional Products (CPP), Home and Building Products (HBP), and Defense Electronics (DE) increased by 21%, 4%, and 3% respectively [20] - Adjusted EBITDA for CPP, HBP, and DE also increased, with increases of 49%, 19%, and 25% respectively [20] - The AMES strategic initiative is expected to result in annual cash savings of $30 million to $35 million and equivalent inventory reductions when fully implemented [12][20] Market Data and Key Metrics Changes - Strong demand was noted across all consumer product categories, supported by a robust housing market and healthy repair and remodel activity [6][12] - Telephonics reported strong order demand with a book-to-bill ratio of almost 1.3 times, and backlog increased to $389 million [14] Company Strategy and Development Direction - The company is focused on portfolio repositioning, strategic initiatives, and operational improvements to enhance free cash flow generation and margin expansion [7][27] - The AMES strategic initiative aims to consolidate operations, increase automation, and support e-commerce growth, with completion expected by the end of 2023 [8][12] - The company executed two strategic portfolio actions: divesting the non-core Systems Engineering Group and acquiring Quatro Design in Australia to diversify operations [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong start to fiscal '21 and highlighted the importance of health and safety measures during the COVID-19 pandemic [11][27] - The company believes that the diversity of its businesses and focus on essential products create a platform for growth and sustainable competitive advantages [27] - Management anticipates continued strong demand driven by household formations and infrastructure spending as the economy recovers [66] Other Important Information - The company authorized an $0.08 per share dividend, marking the 38th consecutive quarterly dividend with an annualized compound growth rate of 17% since 2012 [15] - The company reported net leverage of 3.1 times EBITDA, down from 4.8 times at the end of the first quarter in fiscal 2020 [8][23] Q&A Session Summary Question: Margin expansion in CPP and HBP - Management noted that margin improvement has been a steady process over the years, driven by continuous improvement initiatives and integration of significant acquisitions [32] Question: Drivers behind strong bookings in Telephonics - A healthy pipeline and strong bookings were reported, with expectations of exiting the year at an annualized 10% margin [33] Question: Future margin potential in HBP - Management indicated robust demand and ongoing investments to support growth, with expectations of continued margin improvement [36] Question: Quatro Design acquisition and Australian market - The acquisition diversifies customer base and is expected to align with existing margin profiles [40] Question: Sell-through rates and retail inventory - Strong sell-through rates were reported, with inventory levels in the retail channel being relatively low [43] Question: Impact of steel price inflation - Management acknowledged a lag in passing through higher steel prices but expressed confidence in managing input costs [46][47] Question: Other inflationary pressures - Labor and freight costs were identified as ongoing challenges, with input costs across the board increasing [68]

Griffon Corporation (NYSE:GFF) Q4 2020 Results Earnings Conference Call November 12, 2020 4:30 PM ET Company Participants Ronald Kramer - Chairman and Chief Executive Officer Brian Harris - Senior Vice President and Chief Financial Officer Conference Call Participants Bob Labick - CJS Securities Julio Romero - Sidoti & Co. Josh Chan - Baird Justin Bergner - G Research Keith Hughes - Truist Trey Grooms - Stephens Operator Greetings and welcome to the Griffon Corporation's Fourth Quarter 2020 Earnings Confere ...

Griffon Corporation (NYSE:GFF) Q3 2020 Earnings Conference Call July 30, 2020 4:30 PM ET Company Participants Ron Kramer - Chairman and Chief Executive Officer Brian Harris - Chief Financial Officer Conference Call Participants Bob Labick - CJS Securities Julio Romero - Sidoti & Company Tim Wojs - Baird Operator Welcome to the Griffon Corporation Third Quarter 2020 Earnings Conference Call. [Operator Instructions] And the conference is being recorded. [Operator Instructions] I would now like to turn the con ...

Copyright © 2020 Griffon Corporation. All rights reserved. INVESTOR PRESENTATION July 2020 Forward-looking statements Cautionary Note Regarding Forward-Looking Statements This presentation contains "forward-looking statements" – statements that address future, not past events. In this context, forwardlooking statements often address our expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," or " ...

Griffon Corporation (NYSE:GFF) Q4 2019 Earnings Conference Call November 13, 2019 4:30 PM ET Company Participants Brian Harris – Chief Financial Officer Ron Kramer – Chairman and Chief Executive Officer Conference Call Participants Bob Labick – CJS Securities Julio Romero – Sidoti & Co. Justin Bergner – G. Research Tim Wojs – Robert W. Baird & Co. Operator Greetings and welcome to the Griffon Corporation’s Fourth Quarter Fiscal Year 2019 Earnings Call. At this time, all participants are in a listen-only mod ...