Griffon Corporation (NYSE:GFF) Q2 2022 Earnings Conference Call April 28, 2022 8:30 AM ET

Company Participants

Ron Kramer – Chairman and Chief Executive Officer

Brian Harris – Chief Financial Officer

Conference Call Participants

Bob Labick – CJS Securities

Julio Romero – Sidoti and Company

Justin Bergner – Gabelli Funds

Operator

Greetings and welcome to Griffon Corporation Second Quarter 2022, Earnings Conference Call. As a reminder our participants are on listen-only mode. A question and answer session will follow the formal presentation. [Operator Instructions] I would like to turn the conference over to your host, Brian Harris, Chief Financial Officer Griffon Corporation. Please go ahead.

Brian Harris

Thank you, Bickrum Good morning everyone. With me on the call is Ron Kramer, our Chairman and Chief Executive Officer. Our call is being recorded and will be available for playback, the details of which are in our press release issued earlier today. As in the past, our comments will include forward-looking statements about the company's performance based on our views of Griffon's businesses and the environments in which they operate. Such statements are subject to inherent risks and uncertainties that can change as the world changes. We see the cautionary statements in today's press release and in our various Securities and Exchange Commission filings. Finally, some of today's remarks will adjust for those items that affect comparability between reporting periods. These items are explained in our non-GAAP reconciliations included in our press release. Now I'll turn the call over to Ron.

Ron Kramer

Thank you and good morning everyone. We had record sales, adjusted EBITDA, and adjusted EPS in the second quarter. Our performance was driven by pricing and product mix, led by our home and Building Products segment and the contribution from the January 24th, 2022 acquisition of Hunter Fan.

We've made significant progress with price realization during this quarter. These pricing actions, along with fixed cost leverage, have resulted in increases in sales and profitability. Revenue has increased by 36%, adjusted EBITDA more than doubled, and adjusted EPS is almost tripled on a year-over-year basis.

Our businesses and the global economy continue to navigate a challenging environment with regard to labor, supply chain, transportation issues and inflation. Our employees have worked tirelessly to manage through these obstacles and have generated outstanding results. We thank all of them for their efforts.

From a strategic perspective, we closed the acquisition of Hunter Fan this quarter. There was strong demand in our new Term Loan B facility. And as a result, we were able to finance the acquisition on favorable terms. We're in the early stages of integrating Hunter into the rest of the CPP segment and we're pleased with the Hunter team's performance. The business is been performing as expected, and we continue to be enthusiastic about the strategic fit of Hunter.