Griffon Corporation (GFF) has reported 28.51 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $7.72 million, or $0.18 a share in the quarter, compared with $10.80 million, or $0.24 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $11.51 million, or $0.27 a share compared with $10.50 million or $0.23 a share, a year ago. Revenue during the quarter went down marginally by 0.29 percent to $500.70 million from $502.16 million in the previous year period. Gross margin for the quarter expanded 85 basis points over the previous year period to 24.73 percent. Total expenses were 93.70 percent of quarterly revenues, down from 94.38 percent for the same period last year. This has led to an improvement of 69 basis points in operating margin to 6.30 percent.
Operating income for the quarter was $31.55 million, compared with $28.20 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $60.10 million compared with $55.41 million in the prior year period. At the same time, adjusted EBITDA margin improved 97 basis points in the quarter to 12 percent from 11.03 percent in the last year period.
Ronald J. Kramer, Chief Executive Officer, commented “We finished fiscal 2016 strongly with adjusted earnings per share growth of 15%. Our relentless focus on operating efficiency continues to improve our profitability. For 2017 and beyond we are positioned to benefit from our strategic growth investments including the Clopay Door facility expansion and the roll out of Sof-flex® plastic products. We continue to believe that future growth in U.S. infrastructure and defense spending will be very beneficial to our business. Additionally, a stronger U.S. economy will drive increased consumer spending and a more robust housing market. We are optimistic about our future."
Operating cash flow improves significantly
Griffon Corporation has generated cash of $105.94 million from operating activities during the year, up 39.14 percent or $29.80 million, when compared with the last year. The company has spent $93.60 million cash to meet investing activities during the year as against cash outgo of $66.62 million in the last year. It has incurred net capital expenditure of $90.04 million on net basis during the year, up 39.11 percent or $25.31 million from year ago.
Cash flow from financing activities was $8.89 million for the year as against cash outgo of $44.85 million in the last year period.
Cash and cash equivalents stood at $72.55 million as on Sep. 30, 2016, up 39.52 percent or $20.55 million from $52 million on Sep. 30, 2015.
Working capital increases
Griffon Corporation has recorded an increase in the working capital over the last year. It stood at $462.70 million as at Sep. 30, 2016, up 6.80 percent or $29.46 million from $433.23 million on Sep. 30, 2015. Current ratio was at 2.45 as on Sep. 30, 2016, up from 2.34 on Sep. 30, 2015.
Debt moves up
Griffon Corporation has witnessed an increase in total debt over the last one year. It stood at $936.56 million as on Sep. 30, 2016, up 11.02 percent or $92.99 million from $843.57 million on Sep. 30, 2015. Total debt was 52.55 percent of total assets as on Sep. 30, 2016, compared with 48.72 percent on Sep. 30, 2015. Debt to equity ratio was at 2.28 as on Sep. 30, 2016, up from 1.96 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 2.29 for the quarter from 2.30 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
