Griffon Q4 Profit Surges, Hikes Quarterly Dividend

(RTTNews) - Diversified company Griffon Corp. (GFF) on Wednesday reported a surge in profit for the fourth quarter from last year, reflecting higher revenues across all its segments that helped offset an increase in one-time expenses. In addition, the company increased its quarterly dividend by 33 percent.

Griffon is engaged in home and building, telephonics, and plastics businesses.

The New York-based company's net income for the fourth quarter was $7.95 million or $0.16 per share, up from $0.43 million or $0.01 per share for the year-ago quarter.

The latest quarter's results included restructuring costs of $0.05 per share, acquisition costs of $0.01 per share, impact of debt extinguishment on full-year effective tax rate of $0.03 per share and discrete tax benefits of $0.06 per share.

The prior-year quarter's results included restructuring costs of $0.01 per share and discrete tax benefits of $0.03 per share.

Excluding items, adjusted income from continuing operations for the quarter was $6.43 million or $0.13 per share, compared to $5.75 million or $0.10 per share in the prior year quarter.

Revenue for the quarter grew 17 percent to $525.63 million from $449.01 million in the prior-year quarter.

Home & Building Products revenues for the quarter rose 29 percent from last year to $255.46 million, while Telephonics revenue rose 10 percent to $116.35 million and Clopay Plastics revenue increased 6 percent to $153.82 million.

For fiscal 2014, Griffon's net loss was $0.18 million or breakeven per share, compared to net income of $3.77 million or $0.07 per share in the previous year. Adjusted income from continuing operations was $25.88 million or $0.51 per share, compared to $16.12 million or $0.29 per share in the prior year.

Revenue for the year grew 6 percent to $1.99 billion from $1.87 billion last year.

Ronald Kramer, Chief Executive Officer of Griffon said, "We are entering 2015 on solid footing as a result of the actions taken over the past few years. Improving our operating margin remains a key focus of our strategic plan. We expect to drive improved profitability in 2015."

In January 2013, AMES Companies said it plans to close certain manufacturing facilities and consolidate affected operations primarily into its Camp Hill and Carlisle, PA locations.

The intended actions, to be completed by the end of calendar 2014, is expected to improve the unit's manufacturing and distribution efficiencies, allow for in-sourcing of certain production currently performed by third party suppliers, and improve material flow and absorption of fixed costs.

Upon completion, the company estimates these actions to result in annual cash savings exceeding $10 million, based on current operating levels.

In a separate statement, Griffon's board of directors declared a regular quarterly cash dividend of $0.04 per share, representing a 33 percent increase over the prior quarter. The dividend is payable on December 23, 2014 to shareholders of record as of the close of business on December 3, 2014.

GFF closed Wednesday's trading at $12.65, up $0.15 or 1.2 percent on a volume of 105,717 shares.