BUSINESS SEGMENTS | BUSINESS SEGMENTS Griffon reports its operations through two reportable segments, as follows: • Home and Building Products ("HBP") conducts its operations through Clopay. Founded in 1964, Clopay is the largest manufacturer and marketer of garage doors and rolling steel doors in North America. Residential and commercial sectional garage doors are sold through professional dealers and leading home center retail chains throughout North America under the brands Clopay, Ideal, and Holmes. Rolling steel door and grille products designed for commercial, industrial, institutional, and retail use are sold under the Cornell and Cookson brands. • Consumer and Professional Products (“CPP”) is a leading global provider of branded consumer and professional tools; residential, industrial and commercial fans; home storage and organization products; and products that enhance indoor and outdoor lifestyles. CPP sells products globally through a portfolio of leading brands including AMES, since 1774, Hunter, since 1886, True Temper, and ClosetMaid. Information on Griffon’s reportable segments is as follows: For the Three Months Ended March 31, For the Six Months Ended March 31, REVENUE 2024 2023 2024 2023 Home and Building Products $ 392,062 $ 396,659 $ 787,853 $ 793,232 Consumer and Professional Products 280,818 314,325 528,180 567,136 Total revenue $ 672,880 $ 710,984 $ 1,316,033 $ 1,360,368 Disaggregation of Revenue Revenue from contracts with customers is disaggregated by end markets, segments and geographic location, as it more accurately depicts the nature and amount of the Company’s revenue. The following table presents revenue disaggregated by end market and segment: Three Months Ended March 31, Six Months Ended March 31, 2024 2023 2024 2023 Residential repair and remodel $ 188,529 $ 185,149 $ 375,070 $ 375,879 Commercial 170,740 176,243 347,733 345,757 Residential new construction 32,793 35,267 65,050 71,596 Total Home and Building Products 392,062 396,659 787,853 793,232 Residential repair and remodel 97,044 103,403 173,108 185,109 Retail 73,511 97,903 142,789 166,400 Residential new construction 13,676 11,698 27,681 24,185 Industrial 16,372 19,083 31,149 36,176 International excluding North America 80,215 82,238 153,453 155,266 Total Consumer and Professional Products 280,818 314,325 528,180 567,136 Total Consolidated Revenue $ 672,880 $ 710,984 $ 1,316,033 $ 1,360,368 The following table presents revenue disaggregated by geography based on the location of the Company's customer: For the Three Months Ended March 31, 2024 2023 HBP CPP Total HBP CPP Total United States $ 375,326 $ 183,142 $ 558,468 $ 378,341 $ 212,385 $ 590,726 Europe 1 18,353 18,354 — 19,070 19,070 Canada 14,413 16,363 30,776 15,406 21,570 36,976 Australia — 57,030 57,030 — 56,585 56,585 All other countries 2,322 5,930 8,252 2,912 4,715 7,627 Consolidated revenue $ 392,062 $ 280,818 $ 672,880 $ 396,659 $ 314,325 $ 710,984 For the Six Months Ended March 31, 2024 2023 HBP CPP Total HBP CPP Total United States $ 754,954 $ 334,314 $ 1,089,268 $ 757,641 $ 366,052 $ 1,123,693 Europe 109 23,598 23,707 16 23,766 23,782 Canada 29,181 37,391 66,572 30,761 44,686 75,447 Australia — 121,901 121,901 — 122,802 122,802 All other countries 3,609 10,976 14,585 4,814 9,830 14,644 Consolidated revenue $ 787,853 $ 528,180 $ 1,316,033 $ 793,232 $ 567,136 $ 1,360,368 Griffon evaluates performance and allocates resources based on segment adjusted EBITDA and adjusted EBITDA, non-GAAP measures, which is defined as income (loss) before taxes, excluding interest income and expense, depreciation and amortization, strategic review charges, non-cash impairment charges, restructuring charges, gain/loss from debt extinguishment and acquisition related expenses, as well as other items that may affect comparability, as applicable. Segment adjusted EBITDA also excludes unallocated amounts, mainly corporate overhead. Griffon believes this information is useful to investors for the same reason. The following table provides a reconciliation of segment and adjusted EBITDA to income (loss) before taxes: For the Three Months Ended March 31, For the Six Months Ended March 31, 2024 2023 2024 2023 Segment adjusted EBITDA: Home and Building Products $ 128,924 $ 131,871 $ 253,643 $ 256,016 Consumer and Professional Products 20,121 19,635 25,660 17,826 Segment adjusted EBITDA 149,045 151,506 279,303 273,842 Unallocated amounts, excluding depreciation * (14,814) (14,630) (28,721) (28,406) Adjusted EBITDA 134,231 136,876 250,582 245,436 Net interest expense (25,512) (24,643) (50,387) (49,187) Depreciation and amortization (15,080) (17,254) (29,903) (34,367) Restructuring charges (2,401) (78,334) (14,801) (78,334) Gain on sale of building 11 — 558 10,852 Strategic review - retention and other (2,676) (6,190) (7,334) (14,422) Proxy expenses — (614) — (2,117) Intangible asset impairment — (100,000) — (100,000) Income (loss) before taxes $ 88,573 $ (90,159) $ 148,715 $ (22,139) * Unallocated amounts typically include general corporate expenses not attributable to a reportable segment. For the Three Months Ended March 31, For the Six Months Ended March 31, DEPRECIATION and AMORTIZATION 2024 2023 2024 2023 Segment: Home and Building Products $ 3,772 $ 3,811 $ 7,405 $ 7,657 Consumer and Professional Products 11,171 13,303 22,228 26,430 Total segment depreciation and amortization 14,943 17,114 29,633 34,087 Corporate 137 140 270 280 Total consolidated depreciation and amortization $ 15,080 $ 17,254 $ 29,903 $ 34,367 For the Three Months Ended March 31, For the Six Months Ended March 31, 2024 2023 2024 2023 CAPITAL EXPENDITURES Segment: Home and Building Products $ 12,525 $ 3,605 $ 23,033 $ 5,673 Consumer and Professional Products 6,368 3,474 10,117 6,132 Total segment 18,893 7,079 33,150 11,805 Corporate 66 32 139 32 Total consolidated capital expenditures $ 18,959 $ 7,111 $ 33,289 $ 11,837 ASSETS At March 31, 2024 At September 30, 2023 Segment assets: Home and Building Products $ 706,622 $ 703,661 Consumer and Professional Products (1) 1,579,941 1,579,588 Total segment assets 2,286,563 2,283,249 Corporate 132,083 130,339 Total assets 2,418,646 2,413,588 Discontinued operations 5,084 5,291 Consolidated total $ 2,423,730 $ 2,418,879 ___________________ (1) In connection with the expansion of CPP's global sourcing strategy, certain owned manufacturing locations which ceased operations have met the criteria to be classified as held for sale as of March 31, 2024. The net book value of these properties as of March 31, 2024 totaled $24,172. |