GFF - Griffon Non-GAAP EPS of $1.21 beats by $0.55 revenue of $710.98M misses by $12.25M

2023-05-03 08:04:06 ET

• Griffon press release ( NYSE: GFF ): Q2 Non-GAAP EPS of $1.21 beats by $0.55 .
• Revenue of $710.98M (-8.8% Y/Y) misses by $12.25M .

• 2023 Outlook

  We now expect 2023 revenue of $2.7 billion (prior $2.95 billion) reflecting decreased CPP revenue, primarily driven by reduced consumer demand and ongoing elevated levels of customer inventory, partially offset by increased HBP revenue driven by commercial volume increases and improved residential volume expectations.

  Adjusted EBITDA in 2023 is now expected to be at least $525 million (prior $500 million), excluding unallocated costs of $56 million, and charges related to the strategic review process of $22 million (prior $16 million) and AMES’s global sourcing expansion. Increased Adjusted EBITDA expectations reflect strong HBP results partially offset by the reduced CPP volume noted above, and its related impact on manufacturing and overhead absorption.

  Other guidance remains unchanged for 2023, including free cash flow to exceed net income, capital expenditures of $50 million, depreciation of $50 million and amortization of $22 million, interest expense of $103 million, and a normalized tax rate of 29%.

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