Revenue during the quarter went down marginally by 0.87 percent to $495.76 million from $500.11 million in the previous year period. Gross margin for the quarter expanded 48 basis points over the previous year period to 23.31 percent. Total expenses were 95.35 percent of quarterly revenues, down from 95.49 percent for the same period last year. This has led to an improvement of 14 basis points in operating margin to 4.65 percent.

Operating income for the quarter was $23.06 million, compared with $22.57 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $51.26 million compared with $48.56 million in the prior year period. At the same time, adjusted EBITDA margin improved 63 basis points in the quarter to 10.34 percent from 9.71 percent in the last year period.

Ronald J. Kramer, chief executive officer, commented, “We are pleased with our performance for the quarter, driven by our focus on execution and improved efficiencies. Second quarter EBITDA increased over the prior year at each of our segments, resulting in consolidated EBITDA increasing 6%. Halfway through the fiscal year, we are confident in our 2017 outlook and optimistic about our future.”

The company has spent $48.42 million cash to meet investing activities during the first six months as against cash outgo of $48.84 million in the last year period. It has incurred net capital expenditure of $42.37 million on net basis during the first six months, down 6.01 percent or $2.71 million from year ago period.

Cash flow from financing activities was $16.28 million for the first six months, down 69.93 percent or $37.85 million, when compared with the last year period.

Cash and cash equivalents stood at $47.42 million as on Mar. 31, 2017, down 12.63 percent or $6.86 million from $54.28 million on Mar. 31, 2016.

Working capital decreases marginally
Griffon Corporation has witnessed a decline in the working capital over the last year. It stood at $500.54 million as at Mar. 31, 2017, down 1.48 percent or $7.53 million from $508.07 million on Mar. 31, 2016. Current ratio was at 2.82 as on Mar. 31, 2017, up from 2.80 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 39 days for the quarter from 80 days for the last year period. Days sales outstanding were almost stable at 42 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 37 days for the quarter compared with 76 days for the previous year period. At the same time, days payable outstanding went up to 40 days for the quarter from 39 for the same period last year.