XML 29 R19.htm IDEA: XBRL DOCUMENT v3.23.2
BUSINESS SEGMENTS
 9 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
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 North American manufacturer and a 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 from continuing operations is as follows:
 For the Three Months Ended June 30,For the Nine Months Ended June 30,
REVENUE2023202220232022
Home and Building Products$401,142 $405,545 $1,194,374 $1,082,726 
Consumer and Professional Products282,288 362,634 849,424 1,056,819 
Total revenue$683,430 $768,179 $2,043,798 $2,139,545 

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:
For the Three Months Ended June 30,For the Nine Months Ended June 30,
2023202220232022
Residential repair and remodel$186,554 $194,526 $562,433 $511,988 
Commercial 179,054 167,173 524,811 455,338 
Residential new construction35,534 43,846 107,130 115,400 
Total Home and Building Products401,142 405,545 1,194,374 1,082,726 
Residential repair and remodel107,276 139,126 292,385 292,516 
Retail63,560 99,284 229,960 382,202 
Residential new construction12,600 11,387 36,785 33,733 
Industrial22,204 24,748 58,380 57,122 
International excluding North America76,648 88,089 231,914 291,246 
Total Consumer and Professional Products282,288 362,634 849,424 1,056,819 
Total Consolidated Revenue$683,430 $768,179 $2,043,798 $2,139,545 
The following table presents revenue disaggregated by geography based on the location of the Company's customer:
For the Three Months Ended June 30,
20232022
HBPCPPTotalHBPCPPTotal
United States$382,295 $195,132 $577,427 $384,265 $248,068 $632,333 
Europe— 19,792 19,792 7 31,113 31,120 
Canada16,576 12,955 29,531 15,683 19,592 35,275 
Australia— 49,548 49,548 — 55,142 55,142 
All other countries2,271 4,861 7,132 5,590 8,719 14,309 
Consolidated revenue$401,142 $282,288 $683,430 $405,545 $362,634 $768,179 
For the Nine Months Ended June 30,
20232022
HBPCPPTotalHBPCPPTotal
United States$1,139,936 $561,184 $1,701,120 $1,031,650 $677,714 $1,709,364 
Europe16 43,558 43,574 51 96,226 96,277 
Canada47,337 57,641 104,978 41,574 73,249 114,823 
Australia— 172,350 172,350 — 191,679 191,679 
All other countries7,085 14,691 21,776 9,451 17,951 27,402 
Consolidated revenue$1,194,374 $849,424 $2,043,798 $1,082,726 $1,056,819 $2,139,545 

Griffon evaluates performance and allocates resources based on segment adjusted EBITDA and adjusted EBITDA, non-GAAP measures, which is defined as income before taxes from continuing operations, 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 before taxes from continuing operations:
 For the Three Months Ended June 30,For the Nine Months Ended June 30,
 2023202220232022
Segment adjusted EBITDA:    
Home and Building Products$134,330 $119,847 $390,346 $280,618 
Consumer and Professional Products18,265 28,373 36,091 92,431 
Segment adjusted EBITDA152,595 148,220 426,437 373,049 
Unallocated amounts, excluding depreciation *(13,982)(13,405)(42,388)(39,724)
Adjusted EBITDA138,613 134,815 384,049 333,325 
Net interest expense(25,207)(23,961)(74,394)(60,985)
Depreciation and amortization(15,669)(17,688)(50,036)(47,021)
Debt extinguishment, net— (5,287)— (5,287)
Gain on sale of building— — 10,852 — 
Strategic review - retention and other(5,812)(3,220)(20,234)(3,220)
Proxy expenses(568)— (2,685)(6,952)
Acquisition costs— — — (9,303)
Restructuring charges(3,862)(5,909)(82,196)(12,391)
Intangible asset impairment— — (100,000)— 
Special dividend ESOP charges(9,042)— (9,042)— 
Fair value step-up of acquired inventory sold— (2,700)— (5,401)
Income before taxes from continuing operations$78,453 $76,050 $56,314 $182,765 
* Unallocated amounts typically include general corporate expenses not attributable to a reportable segment.
For the Three Months Ended June 30,For the Nine Months Ended June 30,
DEPRECIATION and AMORTIZATION2023202220232022
Segment:    
Home and Building Products$3,868 $4,116 $11,525 $12,778 
Consumer and Professional Products11,661 13,434 38,091 33,831 
Total segment depreciation and amortization15,529 17,550 49,616 46,609 
Corporate140 138 420 412 
Total consolidated depreciation and amortization$15,669 $17,688 $50,036 $47,021 
CAPITAL EXPENDITURES    
Segment:    
Home and Building Products$4,620 $2,891 $10,293 $8,643 
Consumer and Professional Products3,726 8,558 9,858 24,742 
Total segment8,346 11,449 20,151 33,385 
Corporate— 37 32 131 
Total consolidated capital expenditures$8,346 $11,486 $20,183 $33,516 
ASSETS At June 30, 2023At September 30, 2022
Segment assets:  
Home and Building Products$702,328 $737,860 
Consumer and Professional Products1,674,453 1,914,529 
Total segment assets2,376,781 2,652,389 
Corporate189,309 158,310 
Total continuing assets2,566,090 2,810,699 
Discontinued operations5,125 5,775 
Consolidated total$2,571,215 $2,816,474