Griffon Corporation (NYSE: GFF) today reported results for the third quarter ended June 30, 2012.
Third quarter revenue totaled $480 million, increasing 5% compared to the 2011 quarter. Home and Building Products (“HBP”) and Clopay Plastics (“Plastics”) drove the consolidated increase with revenue growth of 11% and 3%, respectively; Telephonics revenue decreased 2%.
Third quarter net income totaled $9.0 million, or $0.16 per share, compared to $4.9 million, or $0.08 per share, in the prior year quarter. Current quarter adjusted net income was $7.4 million, or $0.13 per share, compared to $3.2 million, or $0.05 per share, in the prior year quarter. Third quarter 2012 results included discrete tax benefits, net, of $1.6 million, or $0.03 per share. Third quarter 2011 results included discrete tax items and the impact of changes in the expected annual effective rate, net, of $3.1 million, or $0.05 per share, and restructuring charges of $2.1 million ($1.4 million, net of tax, or $0.02 per share).
Ron Kramer, Chief Executive Officer, commented “We are pleased with the third quarter results. Our businesses are performing well in what continues to be a difficult macroeconomic environment. Plastics continued to show improvement from the initiatives undertaken to address manufacturing inefficiencies arising from our capacity expansions in Europe and Brazil. Telephonics generated modest core revenue growth and continues to perform well in an otherwise challenging defense budgetary environment. Home and Building Products revenue grew from both the Southern Patio acquisition and continued organic growth in our doors business.”Mr. Kramer continued, “Our businesses are well-positioned for continued growth and improved profitability. We remain committed to driving shareholder value through a range of opportunities including organic improvement, a disciplined approach to capital investment and, in the longer term, our ongoing evaluation of additional strategic transactions.” For the current quarter, Segment adjusted EBITDA totaled $51.8 million, increasing 27% compared to $40.7 million in the prior year quarter. Segment adjusted EBITDA is defined as net income, excluding corporate overhead, interest, taxes, depreciation and amortization, acquisition-related costs, restructuring charges, costs related to the fair value of inventory for acquisitions and the benefit (loss) of debt extinguishment, as applicable.
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