Griffon(US:GFF)2025-02-05 22:04Financial Performance - Total revenue for the three months ended December 31, 2024, was $632,371,000, a decrease of 1.2% compared to $643,153,000 in the same period of 2023[16] - Gross profit increased to $264,276,000, representing a gross margin of 41.8%, up from $236,641,000 in the prior year[16] - Net income for the quarter was $70,851,000, a significant increase of 67.6% compared to $42,177,000 in the same quarter of 2023[16] - Basic earnings per share rose to $1.56, compared to $0.86 in the previous year, reflecting a 81.4% increase[16] - Revenue for the quarter ended December 31, 2024 was $632,371, a decrease of $10,782 or 2% compared to the prior year quarter[145] - Net income for the quarter was $70,851, or $1.49 per share, compared to $42,177, or $0.82 per share in the prior year quarter[145] Assets and Liabilities - Total current assets decreased to $895,126,000 from $929,476,000, a decline of 3.7%[10] - Total liabilities decreased to $2,097,376,000 from $2,146,066,000, a reduction of 2.3%[10] - Total shareholders' equity increased to $227,776,000, up from $224,888,000, reflecting a growth of 1.3%[10] - As of December 31, 2024, Griffon's total assets were $1.915 billion, while total liabilities amounted to $1.568 billion[202] Cash Flow and Investments - Net cash provided by operating activities was $142,922 for the three months ended December 31, 2024, slightly down from $146,058 in 2023[19] - Cash flows used in investing activities were $236 for the three months ended December 31, 2024, significantly lower than $13,543 in the prior year, primarily due to capital expenditures of $17,456 offset by proceeds from the sale of real estate totaling $17,220[172] - Cash used in financing activities totaled $108,121, down from $123,947 in the prior year, with significant expenditures including $49,083 for share repurchases and $9,037 in dividends[173] - The company had cash and cash equivalents of $151,952 as of December 31, 2024, an increase from $114,438 on September 30, 2024[180] Dividends and Shareholder Returns - The company reported a dividend of $0.18 per share, an increase from $0.15 per share in the same quarter last year[16] - Griffon paid a quarterly cash dividend of $0.18 per share during the three months ended December 31, 2024, up from $0.15 per share in fiscal year 2024[64] - The Board of Directors declared a quarterly cash dividend of $0.18 per share, payable on March 18, 2025[67] - During the three months ended December 31, 2024, Griffon repurchased 610,172 shares of common stock for a total of $42,344, averaging $69.40 per share[178] Segment Performance - Home and Building Products segment revenue was $395,401, slightly down from $395,791 in the prior year, while Consumer and Professional Products segment revenue decreased from $247,362 to $236,970[81] - Segment adjusted EBITDA for Home and Building Products was $127,042, an increase from $124,719, while Consumer and Professional Products saw a significant rise from $5,539 to $18,192[89] - Adjusted EBITDA for the Home and Building Products (HBP) segment was $127,042, representing a 2% increase compared to the prior year quarter[153] - Adjusted EBITDA for the CPP segment increased to $18,192, up from $5,539 in the prior year quarter, primarily due to benefits from the global sourcing expansion initiative[155] Debt and Financing - As of December 31, 2024, Griffon Corporation's long-term debt totaled $1,475,032, a decrease from $1,524,052 as of September 30, 2024, reflecting a reduction of approximately 3.2%[55] - The outstanding balance of the Senior Notes due 2028 was $974,775, with an interest rate of 5.75%[57] - The Term Loan B outstanding balance was $455,000, with a variable interest rate of 6.58% as of December 31, 2024[58] - Griffon's Senior Notes total $974.775 million, with annual interest payments of approximately $56.050 million, maturing in 2028[195] Operational Efficiency - The company recognized revenue when performance obligations are satisfied, with a focus on timely transfer of goods to customers, enhancing operational efficiency[36] - The company completed its global sourcing strategy expansion ahead of schedule, resulting in a facility footprint reduction of approximately 1.2 million square feet, or 15%[104] Market Strategy and Risks - The company aims to maintain leading positions in its markets through innovative, branded products and superior quality[135] - Griffon plans to diversify further through investments and acquisitions to strengthen its existing businesses[137] - Griffon is subject to various risks, including economic conditions, customer demand fluctuations, and potential impacts from tariffs on raw materials[207]