Griffon Corporation Announces First Quarter Results

Griffon Corporation (NYSE: GFF) today reported results for the first quarter ended December 31, 2011.

First quarter 2012 revenue totaled $451 million, increasing 9% compared to the 2011 quarter, with growth in all operating segments. Compared to the prior year quarter, Home and Building Products (“HBP”) and Telephonics revenue both grew 6% while Clopay Plastics (“Plastics”) revenue increased 16%.

First quarter 2012 net income totaled $2.5 million, or $0.04 per share, compared to a loss of $1.7 million or $0.03 per share, in the prior year quarter. Current quarter adjusted net income was $3.8 million, or $0.07 per share, compared to $6.3 million, or $0.11 per share, in the prior year quarter.

Ron Kramer, Chief Executive Officer, commented, “Our financial performance improved in the first quarter and is a good start to the year. We expect to continue growing organically in each of our businesses as the economy recovers. Telephonics has remained a strong and steady leader in its markets. We have successfully restructured and augmented our Home and Building Products business. Finally, while our capacity expansion project in Plastics has temporarily impacted margins, we have achieved significant top-line growth and continue to expect a return to normalized operating margins in the second half of fiscal 2012.”

Mr. Kramer continued, “We are excited about our new leadership at Plastics and the new, streamlined, more flexible organizational structure recently implemented at Telephonics. These changes will facilitate our strategy to deliver growth and value to our customers and our shareholders.”

First quarter 2012 results included:
  • $1,795 ($1,167, net of tax, or $0.02 per share) of restructuring and related charges; and
  • $178 ($116, net of tax, or $0.00 per share) of acquisition costs.

First quarter 2011 results included:
  • $11,364 ($7,387, net of tax, or $0.12 per share) of cost of goods related to the sale of inventory recorded at fair value in connection with acquisition accounting for Ames True Temper (“ATT”);
  • Restructuring charges of $1,393 ($905, net of tax, or $0.02 per share); and
  • Discrete tax benefits of $320, or $0.01 per share.

Excluding these items from the respective quarters, adjusted income from continuing operations for the 2012 quarter would have been $3.8 million, or $0.07 per share, compared to $6.3 million, or $0.11 per share, in the 2011 quarter.

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