GRIFFON CORPORATION ANNOUNCES RESTATEMENT OF
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FISCAL 2005 FIRST AND SECOND QUARTER FINANCIAL STATEMENTS ---
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NO CHANGE TO NET INCOME OR EARNINGS PER SHARE
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FOR THE SIX MONTHS ENDED MARCH 31, 2005
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Jericho, New York, May 11, 2005 - Griffon Corporation (NYSE:GFF) today
announced that in connection with the preparation of the consolidated financial
statements for the second quarter of fiscal 2005, the company ascertained that
in the first quarter of the year there was an inventory valuation error in
determining the garage door segment's cost of goods sold. This inventory
valuation error was caused by unprecedented increases in the segment's raw
material costs and correction of this error was included in the press release
which previously reported operating results for the second quarter of 2005.
However, the company has since determined to reflect the adjustment to correct
cost of goods sold in the first quarter of 2005 by restating that period's
operating results. The restatement will not change previously disclosed
earnings, cash flows, or financial position for the six months ended March 31,
2005 and will result in an estimated $1,260,000 decrease to bring previously
reported first quarter net income to $9,192,000 and a corresponding increase to
bring second quarter net income to $4,144,000. First quarter diluted earnings
per share will decrease $.05 to an estimated $.29 per share and second quarter
diluted earnings per share will increase $.04 to an estimated $.13 per share.
The Company did not file its quarterly report on Form 10-Q, which was due
yesterday. It expects to file such report during the statutorily allowed five
day extension period.
Griffon Corporation -
o is a leading manufacturer and marketer of residential, commercial
and industrial garage doors sold to professional installing
dealers and major home center retail chains;
o installs and services specialty building products and systems,
primarily garage doors, openers, fireplaces and cabinets, for new
construction markets through a substantial network of operations
located throughout the country;
o is an international leader in the development and production of
embossed and laminated specialty plastic films used in the baby
diaper, feminine napkin, adult incontinent, surgical and patient
care markets; and
o develops and manufactures information and communication systems
for government and commercial markets worldwide.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: All statements other than statements of historical fact included in this
release, including without limitation statements regarding the company's
financial position, business strategy and the plans and objectives of the
company's management for future operations, are forward-looking statements. When
used in this release, words such as "anticipate", "believe", "estimate",
"expect", "intend", and similar expressions, as they relate to the company or
its management, identify forward-looking statements. Such forward-looking
statements are based on the beliefs of the company's management, as well as
assumptions made by and information currently available to the company's
management. Actual results could differ materially from those contemplated by
the forward-looking statements as a result of certain factors, including but not
limited to, business and economic conditions, competitive factors and pricing
pressures, capacity and supply constraints. Such statements reflect the views of
the company with respect to future events and are subject to these and other
risks, uncertainties and assumptions relating to the operations, results of
operations, growth strategy and liquidity of the company. Readers are cautioned
not to place undue reliance on these forward-looking statements. The company
does not undertake to release publicly any revisions to these forward-looking
statements to reflect future events or circumstances or to reflect the
occurrence of unanticipated events.