July 22, 2011
Griffon Corporation Announces New Leadership for Home & Building Products Business
NEW YORK, May 20, 2011 (BUSINESS WIRE)
Griffon Corporation (NYSE: GFF) announced today that it will consolidate the leadership of its Home & Building Products segment with both Ames True Temper ("ATT") and Clopay Building Products ("CBP") reporting to Eugene (Gene) C. Colleran as the new President of Home & Building Products and CEO of ATT. Duane R. Greenly, CEO of ATT, is retiring after nine years with ATT, the last three as CEO. Griffon believes that this unified management structure will provide significant operating and financial benefits.
Ron Kramer, Griffon's CEO, said "During Duane Greenly's tenure, ATT has grown to be a true market leader in the lawn and garden tool industry. We thank Duane for his years of service and strong business leadership."
Mr. Colleran has had responsibility for CBP for the last eleven years. Prior to joining Clopay, Mr. Colleran spent nine years with Newell Company (NYSE: NWL), most recently as President of BernzOmatic, the world's largest manufacturer of gas powered hand torches. Prior to Newell, he spent nine years in various sales and marketing management roles with Chicago based United States Gypsum (NYSE: USG).
Mr. Kramer concluded, "We expect Gene Colleran will continue to grow and develop our Home & Building Products business. With pro forma March 31, 2011 TTM revenue of over $845 million and adjusted TTM EBITDA in excess of $80 million, we have significant opportunities to expand the business and improve our profitability as the housing markets ultimately recover."
"Safe Harbor" Statements under the Private Securities Litigation Reform Act of 1995: All statements related to, among other things, income, earnings, cash flows, revenue, changes in operations, operating improvements, industries in which Griffon Corporation (the "Company" or "Griffon") operates and the United States and global economies that are not historical are hereby identified as "forward-looking statements" and may be indicated by words or phrases such as "anticipates," "supports," "plans," "projects," "expects," "believes," "should," "would," "could," "hope," "forecast," "management is of the opinion," "may," "will," "estimates," "intends," "explores," "opportunities," the negative of these expressions, use of the future tense and similar words or phrases. Such forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statements. These risks and uncertainties include, among others: current economic conditions and uncertainties in the housing, credit and capital markets; the Company's ability to achieve expected savings from cost control, integration and disposal initiatives; the ability to identify and successfully consummate and integrate value-adding acquisition opportunities, including the acquisition of Ames True Temper; increasing competition and pricing pressures in the markets served by Griffon's operating companies; the ability of Griffon's operating companies to expand into new geographic and product markets and to anticipate and meet customer demands for new products and product enhancements and innovations; the government reduces military spending on projects supplied by Telephonics Corporation; increases in cost of raw materials such as resin and steel; changes in customer demand; political events that could impact the worldwide economy; a downgrade in the Company's credit ratings; international economic conditions including interest rate and currency exchange fluctuations; the relative mix of products and services which impacts margins and operating efficiencies; short-term capacity constraints or prolonged excess capacity; unforeseen developments in contingencies such as litigation; unfavorable results of government agency contract audits of Telephonics Corporation; protection and validity of patent and other intellectual property rights; the cyclical nature of the business of certain Griffon operating companies; and possible terrorist threats and actions, and their impact on the global economy. 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 as previously disclosed in the Company's Securities and Exchange Commission filings. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements speak only as of the date made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About Griffon Corporation
Griffon Corporation is a diversified management and holding company that conducts business through wholly-owned subsidiaries. Griffon oversees the operations of its subsidiaries, allocates resources among them and manages their capital structures. Griffon provides direction and assistance to its subsidiaries in connection with acquisition and growth opportunities as well as in connection with divestitures. Griffon also seeks out, evaluates and, when appropriate, will acquire additional businesses that offer potentially attractive returns on capital to further diversify itself.
Griffon currently conducts its operations through Telephonics, Clopay Building Products ("CBP"), Clopay Plastic Products Company ("Plastics") and Ames True Temper ("ATT"). CBP and ATT comprise the Home & Building Products operating segment.
• Telephonics designs, develops and manufactures high-technology, integrated information, communication and sensor system solutions for use in military and commercial markets worldwide.
• Home & Building Products is a leading manufacturer and marketer of residential, commercial and industrial garage doors to professional installing dealers and major home center retail chains, as well as a global provider of non-powered landscaping products that make work easier for homeowners and professionals.
• Plastics is an international leader in the development and production of embossed, laminated and printed specialty plastic films used in a variety of hygienic, health-care and industrial applications.
For more information on Griffon and its operating subsidiaries, please see the Company's website at www.griffoncorp.com.
Griffon evaluates performance and allocates resources based on each segments' operating results before interest income or expense, income taxes, depreciation and amortization, gain (losses) from debt extinguishment, unallocated amounts, restructuring and impairment charges and costs related to the fair market value of inventory for acquisitions ("Segment Adjusted EBITDA"). Griffon believes this information is useful to investors for the same reason. The following table provides a reconciliation of Segment Adjusted EBITDA to Griffon's Income from Operations. This has been done on a pro forma basis to include Ames True Temper's results prior to its purchase on September 30, 2010.
|Pro forma segment adjusted EBITDA|| |
|Home & Building Products ||80,779|
|Clopay Plastic Products ||46,977|
|Total Segment adjusted EBITDA ||178,181|
|Segment Depreciation and amortization ||(57,309)|
|Fair value write-up of acquired inventory sold ||(15,152)|
|Restructuring and impairment ||(6,388)|
|ATT predecessor deal costs and management fees, net||(8,108)|
|Other, net ||(6,277)|
|Pro forma income from operations ||49,952 |
GRIFFON CORPORATION AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES BY REPORTABLE SEGMENT (Unaudited)
SOURCE: Griffon Corporation Griffon Corporation
Douglas J. Wetmore
Chief Financial Officer
712 Fifth Avenue, 18th
Floor New York, NY
ICR Inc. James
Palczynski Principal and Director
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