Griffon Corporation (GFF) has reported 13.68 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $12.26 million, or $0.29 a share in the quarter, compared with $10.79 million, or $0.24 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $8 million, or $0.19 a share compared with $8.20 million or $0.18 a share, a year ago. Revenue during the quarter dropped 5.47 percent to $467.10 million from $494.15 million in the previous year period. Gross margin for the quarter expanded 137 basis points over the previous year period to 24.86 percent. Total expenses were 94.35 percent of quarterly revenues, down from 94.98 percent for the same period last year. This has led to an improvement of 63 basis points in operating margin to 5.65 percent.
Operating income for the quarter was $26.38 million, compared with $24.81 million in the previous year period.
Ronald J. Kramer, Chief Executive Officer, commented, “We are off to a solid start to the year. We executed well this quarter with margin improvements driven by operational efficiencies. Our EBITDA increased by 5% over last year despite an anticipated revenue decline. We remain confident in our outlook for both 2017 and the future with expectations for an improving housing market as well as higher infrastructure and defense spending.”
Operating cash flow turns positive
Griffon Corporation has generated cash of $7.55 million from operating activities during the quarter as against cash outgo of $17.40 million in the last year period. The company has spent $28.41 million cash to meet investing activities during the quarter as against cash outgo of $26.54 million in the last year period. It has incurred net capital expenditure of $22.36 million on net basis during the quarter, down 8.86 percent or $2.17 million from year ago period.
Cash flow from financing activities was $2.22 million for the quarter, down 94.79 percent or $40.39 million, when compared with the last year period.
Cash and cash equivalents stood at $52.27 million as on Dec. 31, 2016, up 4.60 percent or $2.30 million from $49.97 million on Dec. 31, 2015.
Working capital decreases marginally
Griffon Corporation has witnessed a decline in the working capital over the last year. It stood at $469.11 million as at Dec. 31, 2016, down 4.43 percent or $21.73 million from $490.84 million on Dec. 31, 2015. Current ratio was at 2.65 as on Dec. 31, 2016, down from 2.75 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 39 days for the quarter from 75 days for the last year period. Days sales outstanding went up to 44 days for the quarter compared with 40 days for the same period last year.
Days inventory outstanding has decreased to 42 days for the quarter compared with 80 days for the previous year period. At the same time, days payable outstanding went up to 47 days for the quarter from 45 for the same period last year.
Debt moves up
Griffon Corporation has witnessed an increase in total debt over the last one year. It stood at $965.02 million as on Dec. 31, 2016, up 5.74 percent or $52.38 million from $912.64 million on Dec. 31, 2015. Total debt was 55.30 percent of total assets as on Dec. 31, 2016, compared with 52.35 percent on Dec. 31, 2015. Debt to equity ratio was at 2.48 as on Dec. 31, 2016, up from 2.13 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.97 for the quarter from 2.06 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: editor@irisindia.net
