UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: May 1, 2005
(Date of earliest event reported)
Griffon Corporation
_____________________________________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 1-6620 11-1893410
_____________________________________________________________________________
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
100 Jericho Quadrangle, Jericho, New York 11753
______________________________________________________________________________
(Address of principal executive offices) (Zip Code)
(516) 938-5544
______________________________________________________________________________
(Registrant's telephone number including area code)
N/A
______________________________________________________________________________
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (See General Instruction A.2. below): ----
_ Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
_ Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
_ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-(b))
_ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-(c))
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On May 3, 2005, the Board of Directors of Griffon Corporation (the
"Registrant") amended Section 2.3(c ) of the Registrant's 2001 Stock Option Plan
to provide the Compensation Committee of the Board of Directors with full
discretion to determine the vesting of any stock option granted under the terms
of the 2001 Stock Option Plan. The Board of Directors determined that such
flexibility is advisable due to the recent changes in the accounting treatment
of stock options. A copy of the 2001 Stock Option Plan, as amended, is attached
as Exhibit 10.1 hereto.
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On May 3, 2005, the Registrant issued a press release announcing the
Registrant's financial results for the fiscal quarter ended March 31, 2005. A
copy of the Registrant's press release is attached hereto as Exhibit 99.1.
ITEM 5.02 DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS;
APPOINTMENT OF PRINCIPAL OFFICERS.
(b) In connection with his retirement as an officer of the Registrant, Robert
Balemian has resigned as a member of the Board of Directors effective May 1,
2005. In addition, Abraham Buchman has resigned as a member of the Board of
Directors of the Registrant effective May 2, 2005.
(d) On May 3, 2005, upon the recommendation of the Nominating and Governance
Committee of the Board of Directors, the Board of Directors appointed Blaine V.
Fogg as a member of the Board of Directors to fill one of the vacancies reported
under Item 5.02(b), above. Mr. Fogg was also appointed to the Ethics Committee
of the Board of Directors upon the recommendation of the Nominating and
Governance Committee.
There is no arrangement or understanding between Mr. Fogg and any other person
pursuant to which Mr. Fogg was appointed as a director of the Registrant.
There were no transactions or series of transactions since the beginning of
Registrant's last fiscal year, or any currently proposed transaction or series
of transactions to which the registrant was a party in which the amount exceeds
$60,000 and in which Mr. Fogg has a direct or indirect material interest.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(c) 10.1 Griffon Corporation 2001 Stock Option Plan, as amended
99.1 Press Release dated May 3, 2005
The information filed as exhibit 99.1 to this Form 8-K is being furnished
in accordance with Item 2.02 and shall not be deemed to be "filed" for the
purposes of Section 18 of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to
the liabilities of such section, nor shall such information be deemed
incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set forth by specific
reference in such a filing.
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GRIFFON CORPORATION
By: /s/Eric Edelstein
----------------------------------------
Eric Edelstein, Executive Vice President
Date: May 3, 2005
EXHIBIT INDEX
10.1 Griffon Corporation 2001 Stock Option Plan, as amended
99.1 Press Release dated May 3, 2005
Griffon Corporation
2001 Stock Option Plan, as amended
SECTION 1. GENERAL PROVISIONS
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1.1 Name and General Purpose
------------------------
The name of this plan is the Griffon Corporation 2001 Stock Option Plan
(hereinafter called the "Plan"). The Plan is intended to enable Griffon
Corporation (the "Company") and its subsidiaries and affiliates to foster and
promote the interests of the Company by attracting and retaining officers and
employees of the Company who contribute to the Company's success by their
ability, ingenuity and industry, to enable such officers and employees to
participate in the long-term success and growth of the Company by giving them a
proprietary interest in the Company and to provide incentive compensation
opportunities competitive with those of competing corporations.
1.2 Definitions
-----------
a. "Affiliate" means any person or entity controlled by or under
---------
common control with the Company, by virtue of the ownership of
voting securities, by contract or otherwise.
b. "Board" means the Board of Directors of the Company.
-----
c. "Change in Control" means a change of control of the Company,
-----------------
or in any person directly or indirectly controlling the
Company, which shall mean:
(a) a change in control as such term is presently defined in
Regulation 240.12b-(f) under the Securities Exchange Act of
1934, as amended (the "Exchange Act"); or
(b) if any "person" (as such term is used in Section 13(d) and
14(d) of the Exchange Act) other than the Company or any
"person" who on the date of this Plan is a director or officer
of the Company, becomes the "beneficial owner" (as defined in
Rule 13(d)-3 under the Exchange Act) directly or indirectly,
of securities of the Company representing ten percent (10%) or
more of the voting power of the Company's then outstanding
securities; or
(c) if during the term of the Plan, individuals who at the
effective date of the Plan constitute the board of directors,
cease for any reason to constitute at least a majority of the
board of directors.
d. "Code" means the Internal Revenue Code of 1986, as amended.
----
e. "Committee" means the Committee referred to in Section 1.3 of
---------
the Plan.
f. "Common Stock" means shares of the Common Stock, par value
------------
$.25 per share, of the Company.
g. "Company" means Griffon Corporation, a corporation organized
-------
under the laws of the State of Delaware (or any successor
corporation).
h. "Fair Market Value" means the market price of the Common Stock
-----------------
on the New York Stock Exchange consolidated reporting system
on the date of the grant or on any other date on which the
Common Stock is to be valued hereunder. If no sale shall have
been reported on the New York Stock Exchange consolidated
reporting system on such date, Fair Market Value shall be
determined by the Committee in accordance with the Treasury
Regulations applicable to incentive stock options under
Section 422 of the Code.
i "Incentive Stock Option" means an Incentive Stock Option as
----------------------
described in Section 2.1 of the Plan.
j. "Non-Employee Director" shall have the meaning set forth in
---------------------
Rule 16b-3 promulgated by the Securities and Exchange
Commission ("Commission"); provided, that such person is also
an "outside director" as set forth in Section 162(m) of the
Code and the regulations promulgated thereunder.
k. "Non-Qualified Stock Option" means a Non-Qualified Stock
--------------------------
Option as described in Section 2.1 of the Plan.
l. "Option" means any option to purchase Common Stock under
------
Section 2 of the Plan.
m. "Option Agreement" means the option agreement described in
----------------
Section 2.5 of the Plan.
n. "Participant" means any officer or employee of the Company, a
-----------
Subsidiary or an Affiliate on the date of grant who is
selected by the Committee to participate in the Plan.
o. "Subsidiary" means any corporation in which the Company
----------
possesses, directly or indirectly, 50% or more of the combined
voting power of all classes of stock of such corporation.
p. "Total Disability" means accidental bodily injury or sickness
----------------
which wholly and continuously disabled an optionee. The
Committee, whose decisions shall be final, shall make a
determination of Total Disability.
1.3 Administration of the Plan
--------------------------
The Plan shall be administered by the Board or by the Committee appointed
by the Board consisting of two or more members of the Board all of whom shall be
Non-Employee Directors. The Committee shall serve at the pleasure of the Board
and shall have such powers as the Board may, from time to time, confer upon it.
Subject to this Section 1.3, the Committee shall have sole and complete
authority to adopt, alter, amend or revoke such administrative rules, guidelines
and practices governing the operation of the Plan as it shall, from time to
time, deem advisable, and to interpret the terms and provisions of the Plan.
The Committee shall keep minutes of its meetings and of action taken by it
without a meeting. A majority of the Committee shall constitute a quorum, and
the acts of a majority of the members present at any meeting at which a quorum
is present, or acts approved in writing by all of the members of the Committee
without a meeting, shall constitute the acts of the Committee.
1.4 Eligibility
-----------
Stock Options may be granted only to officers or employees of the Company
or a Subsidiary or Affiliate. All employees are eligible to receive Options
under the Plan. Subject to Section 2.3, any person who has been granted any
Option may, if he is otherwise eligible, be granted an additional Option or
Options.
1.5 Shares
------
The aggregate number of shares reserved for issuance pursuant to the Plan
shall be 1,375,000 shares of Common Stock, or the number and kind of shares of
stock or other securities which shall be substituted for such shares or to which
such shares shall be adjusted as provided in Section 1.6. No individual may be
granted options to purchase more than an aggregate of 500,000 shares of Common
Stock pursuant to the Plan.
Such number of shares may be set aside out of the authorized but unissued
shares of Common Stock or out of issued shares of Common Stock acquired for and
held in the Treasury of the Company, not reserved for any other purpose. Shares
subject to, but not sold or issued under, any Option terminating or expiring for
any reason prior to its exercise in full will again be available for Options
thereafter granted during the balance of the term of the Plan.
1.6 Adjustments Due to Stock Splits, Mergers, Consolidation, Etc.
--------------------------------------------------------------
If, at any time, the Company shall take any action, whether by stock
dividend, stock split, combination of shares or otherwise, which results in a
proportionate increase or decrease in the number of shares of Common Stock
theretofore issued and outstanding, the number of shares which are reserved for
issuance under the Plan and the number of shares which, at such time, are
subject to Options shall, to the extent deemed appropriate by the Committee, be
increased or decreased in the same proportion, provided, however, that the
Company shall not be obligated to issue fractional shares.
Likewise, in the event of any change in the outstanding shares of Common
Stock by reason of any recapitalization, merger, consolidation, reorganization,
combination or exchange of shares or other corporate change, the Committee shall
make such substitution or adjustments, if any, as it deems to be appropriate, as
to the number or kind of shares of Common Stock or other securities which are
reserved for issuance under the Plan and the number of shares or other
securities which, at such time are subject to Options.
In the event of a Change in Control, at the option of the Board or
Committee, (a) all Options outstanding on the date of such Change in Control
shall become immediately and fully exercisable, and (b) an optionee will be
permitted to surrender for cancellation within sixty (60) days after such Change
in Control any Option or portion of an Option which was granted more than six
(6) months prior to the date of such surrender, to the extent not yet exercised,
and to receive a cash payment in an amount equal to the excess, if any, of the
Fair Market Value (on the date of surrender) of the shares of Common Stock
subject to the Option or portion thereof surrendered, over the aggregate
purchase price for such shares under the Option.
1.7 Non-Alienation of Benefits
--------------------------
Except as herein specifically provided, no right or unpaid benefit under
the Plan shall be subject to alienation, assignment, pledge or charge and any
attempt to alienate, assign, pledge or charge the same shall be void. If any
Participant or other person entitled to benefits hereunder should attempt to
alienate, assign, pledge or charge any benefit hereunder, then such benefit
shall, in the discretion of the Committee, cease.
1.8 Withholding or Deduction for Taxes
----------------------------------
If, at any time, the Company or any Subsidiary or Affiliate is required,
under applicable laws and regulations, to withhold, or to make any deduction for
any taxes, or take any other action in connection with any Option exercise, the
Participant shall be required to pay to the Company or such Subsidiary or
Affiliate the amount of any taxes required to be withheld, or, in lieu thereof,
at the option of the Company, the Company or such Subsidiary or Affiliate may
accept a sufficient number of shares of Common Stock to cover the amount
required to be withheld.
1.9 Administrative Expenses
-----------------------
The entire expense of administering the Plan shall be borne by the Company.
1.10 General Conditions
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a. The Board or the Committee may, from time to time, amend, suspend
or terminate any or all of the provisions of the Plan, provided
that, without the Participant's approval, no change may be made
which would prevent an Incentive Stock Option granted under the
Plan from qualifying as an Incentive Stock Option under Section
422 of the Code or result in a "modification" of the Incentive
Stock Option under Section 424(h) of the Code or otherwise alter
or impair any right theretofore granted to any Participant; and
further provided that, without the consent and approval of the
holders of a majority of the outstanding shares of Common Stock
of the Company present at a meeting at which a quorum exists,
neither the Board nor the Committee may make any amendment which
(i) changes the class of persons eligible for options; (ii)
increases (except as provided under Section 1.6 above) the total
number of shares or other securities reserved for issuance under
the Plan; (iii) decreases the minimum option prices stated in
Section 2.2 hereof (other than to change the manner of
determining Fair Market Value to conform to any then applicable
provision of the Code or any regulation thereunder); (iv) extends
the expiration date of the Plan, or the limit on the maximum term
of Options; or (v) withdraws the administration of the Plan from
the Committee consisting of two or more members, each of whom is
a Non-Employee Director.
b. With the consent of the Participant affected thereby, the
Committee may amend or modify any outstanding Option in any
manner not inconsistent with the terms of the Plan, including,
without limitation, and irrespective of the provisions of
Sections 2.3(c) and 2.4(b) below, to accelerate the date or dates
as of which an installment of an Option becomes exercisable,
provided that the Committee shall not have the right to reprice
any outstanding options, either by lowering the exercise price or
by cancelling and regranting.
c. Nothing contained in the Plan shall prohibit the Company or any
Subsidiary or Affiliate from establishing other additional
incentive compensation arrangements for employees of the Company
or such Subsidiary or Affiliate.
d. Nothing in the Plan shall be deemed to limit, in any way, the
right of the Company or any Subsidiary or Affiliate to terminate
a Participant's employment with the Company or such Subsidiary or
Affiliate at any time.
e. Any decision or action taken by the Board or the Committee
arising out of or in connection with the construction,
administration, interpretation and effect of the Plan shall be
conclusive and binding upon all Participants and any person
claiming under or through any Participant.
f. No member of the Board or of the Committee shall be liable for
any act or action, whether of commission or omission, (i) by such
member except in circumstances involving actual bad faith, nor
(ii) by any other member or by any officer, agent or employee.
1.11 Compliance with Applicable Law
------------------------------
Notwithstanding any other provision of the Plan, the Company shall not be
obligated to issue any shares of Common Stock, or grant any Option with respect
thereto, unless it is advised by counsel of its selection that it may do so
without violation of the applicable Federal and State laws pertaining to the
issuance of securities and the Company may require any stock certificate so
issued to bear a legend, may give its transfer agent instructions limiting the
transfer thereof, and may take such other steps, as in its judgment are
reasonably required to prevent any such violation.
1.12 Effective Date
--------------
The Plan will be adopted on February 7, 2001 if approved by stockholders
and shall terminate on February 6, 2011.
Section 2. OPTION GRANTS
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2.1 Authority of Committee
----------------------
Subject to the provisions of the Plan, the Committee shall have the sole
and complete authority to determine (i) the Participants to whom Options shall
be granted; (ii) the number of shares to be covered by each Option; and (iii)
the conditions and limitations, if any, in addition to those set forth in
Section 2 applicable to the exercise of an Option, including without limitation,
the nature and duration of the restrictions, if any, to be imposed upon the sale
or other disposition of shares acquired upon exercise of an Option.
Stock options granted under the Plan may be of two types: an incentive
stock option ("Incentive Stock Option"); and a non-qualified stock option
("Non-Qualified Stock Option").
It is intended that the Incentive Stock Options granted hereunder shall
constitute incentive stock options within the meaning of Section 422 of the Code
and shall be subject to the tax treatment described in Section 422 of the Code.
Anything in the Plan to the contrary notwithstanding, no provision of the
Plan relating to Incentive Stock Options shall be interpreted, amended or
altered, nor shall any discretion or authority granted under the Plan be so
exercised, so as to disqualify either the Plan or, without the consent of the
optionee, any Incentive Stock Option under Section 422 of the Code.
The Committee shall have the authority to grant Incentive Stock Options, or
to grant Non-Qualified Stock Options, or to grant both types of Options. To the
extent that any Option does not qualify as an Incentive Stock Option, in whole
or in part, it shall constitute a separate Non-Qualified Stock Option to the
extent of such disqualification.
2.2 Option Exercise Price
---------------------
The price of stock purchased upon the exercise of Options granted pursuant
to the Plan shall be the Fair Market Value thereof at the time that the Option
is granted.
If an employee owns or is deemed to own (by reason of the attribution rules
applicable under Section 424(d) of the Code) more than 10% of the combined
voting power of all classes of the stock of the Company or any parent
corporation of the Company or any Subsidiary or Affiliate and an Option granted
to such employee is intended to qualify as an Incentive Stock Option within the
meaning of Section 422 of the Code, the exercise price shall be no less than
110% of the Fair Market Value of the Common Stock on the date the Option is
granted. The purchase price is to be paid in full in cash, certified or bank
cashier's check or, at the option of the Company, Common Stock valued at its
Fair Market Value on the date of exercise, or a combination thereof, when the
Option is exercised and stock certificates will be delivered only against such
payment.
2.3 Incentive Stock Option Grants
-----------------------------
Each Incentive Stock Option will be subject to the following provisions:
a. Term of Option
--------------
An Incentive Stock Option will be for a term of not more than ten
years from the date of grant, except in the case of an employee
described in the second paragraph of Section 2.2 above in which
case an Incentive Stock Option will be for a term of not more
than five years from the date of the grant.
b. Annual Limit
------------
To the extent the aggregate Fair Market Value of the Common Stock
(determined as of the date of grant) with respect to which any
options granted hereunder are intended to be designated as
Incentive Stock Options under the Plan (or any other incentive
stock option plan of the Company or any Subsidiary or Affiliate)
which may be exercisable for the first time by the optionee in
any calendar year exceeds $100,000, such options shall not be
considered incentive stock options.
c. Exercise
--------
The Committee shall have the discretion to determine the terms
and conditions of the vesting of any Stock Option award granted
under the Plan.
An Incentive Stock Option shall be exercisable during the
optionee's lifetime only by the optionee and shall not be
exercisable by the optionee unless, at all times since the date
of grant and at the time of exercise, such optionee is an
employee of the Company, any parent corporation of the Company or
any Subsidiary or Affiliate, except that, upon termination of all
employment (other than by death, Total Disability, or by Total
Disability followed by death in the circumstances provided below)
with the Company, any parent corporation of the Company and any
Subsidiary or Affiliate, the optionee may exercise an Incentive
Stock Option at any time within three months thereafter but only
to the extent such Option is exercisable on the date of such
termination.
Upon termination of all employment by Total Disability, the
optionee may exercise such options at any time within one year
thereafter, but only to the extent such Option is exercisable on
the date of such termination.
In the event of the death of an optionee (i) while an employee of
the Company, any parent corporation of the Company or any
Subsidiary or Affiliate, or (ii) within three months after
termination of all employment with the Company, any parent
corporation of the Company and any Subsidiary or Affiliate (other
than for Total Disability) or (iii) within one year after
termination on account of Total Disability of all employment with
the Company, any parent corporation of the Company and any
Subsidiary or Affiliate, such optionee's estate or any person who
acquires the right to exercise such option by bequest or
inheritance or by reason of the death of the optionee may
exercise such optionee's Option at any time within the period of
one year from the date of death. In the case of clauses (i) and
(iii) above, such Option shall be exercisable in full for all the
remaining shares covered thereby, but in the case of clause (ii)
such Option shall be exercisable only to the extent it was
exercisable on the date of such termination.
Notwithstanding the foregoing provisions regarding the exercise
of an Option in the event of death, Total Disability or other
termination of employment, in no event shall an Option be
exercisable in whole or in part after the termination date
provided in the Option.
d. Transferability
---------------
An Incentive Stock Option granted under the Plan shall not be
transferable otherwise than by will or by the laws of descent and
distribution.
2.4 Non-Qualified Stock Option Grants
---------------------------------
Each Non-Qualified Stock Option will be subject to the following
provisions:
a. Term of Option
--------------
A Non-Qualified Stock Option will be for a term of not more than
ten years from the date of grant.
b. Exercise
--------
The exercise of a Non-Qualified Stock Option shall be subject to
the same terms and conditions as provided under Section 2.3(c)
above except that (i) upon termination of all employment of an
optionee with the Company or any Subsidiary or Affiliate, such
optionee may exercise such options at any time within two years
thereafter, and (ii) upon termination of all employment by Total
Disability, the optionee may exercise such options at any time
within five years thereafter, and (iii) in the event of the death
of an optionee within five years after termination on account of
Total Disability of all employment with the Company, or any
Subsidiary or Affiliate, such optionee's estate or any person who
acquires the right to exercise such option by bequest or
inheritance or by reason of the death of the optionee may
exercise such optionee's option at any time within a period of
five years from the date of death.
c. Transferability
---------------
A Non-Qualified Stock Option granted under the Plan shall be
transferable in the discretion of the committee, including
transfers to (1) members of the optionee's family, (2) a trust,
(3) a family limited partnership, or (4) an estate planning
vehicle primarily for the optionee's family.
2.5 Agreements
----------
In consideration of any Options granted to a Participant under the Plan,
each such Participant shall enter into an Option Agreement with the Company
providing, consistent with the Plan, such terms as the Committee may deem
advisable.
GRIFFON CORPORATION ANNOUNCES
-----------------------------
OPERATING RESULTS FOR THE SECOND QUARTER OF FISCAL 2005
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Jericho, New York, May 3, 2005 - Griffon Corporation (NYSE:GFF) today
reported operating results for the second quarter of fiscal 2005, ended March
31, 2005. Net sales for the quarter were $322,473,000 compared to $317,636,000
for the second quarter of fiscal 2004. Income before income taxes was $4,101,000
compared to $19,348,000 last year. Net income was $2,884,000 in the current
quarter, down from $8,662,000 in the second quarter of 2004. Diluted earnings
per share for the quarter was $.09 compared to $.27 in last year's second
quarter.
Operating results in the second quarter of fiscal 2005 were impacted by the
continued raw material price escalation in the specialty plastic films and
garage doors segments. The garage doors segment experienced significant raw
material (steel) cost increases in the second quarter. In specialty plastic
films, raw material (resin) costs also increased over first quarter levels in
North America and advanced more sharply in Europe. Although the company has
continued to raise selling prices in both of these segments, their raw material
cost increases have not been fully recovered. In garage doors, higher net sales
were driven primarily by selling price increases and by favorable product mix.
Specialty plastic films continued to experience reduced unit volume related to
product design changes by its major customer. These reductions were partly
offset by the effects of higher selling prices to pass through raw material cost
increases. Sales volume and profitability in installation services continued to
be negatively affected by narrower margins due to higher costs of products with
significant steel content (garage doors and
fireplaces), a weaker construction environment in certain of its markets and by
increased competition. Net sales of the electronic information and communication
systems segment, Telephonics, increased principally due to growth in
international radar programs. Telephonics profitability was reduced slightly
compared to last year primarily due to operating costs associated with companies
acquired during the quarter.
Net sales for the six months ended March 31, 2005 were $662,647,000
compared to $656,138,000 for the first six months of fiscal 2004. Income before
income taxes for the six months was $23,656,000 compared to $45,006,000 last
year. Net income was $13,336,000 compared to $21,777,000 for the first half of
2004. Diluted earnings per share for the six-months was $.43 compared to $.69
last year.
Cash flow from operations during the quarter was $25,000,000 which was used
to fund acquisitions of $9,000,000, capital expenditures of $6,000,000, and
long-term debt reductions of $6,000,000.
A conference call discussing second quarter results is scheduled for 4:00
p.m. EDT on May 3, 2005 and can be accessed by dialing (877) 423-3902. Callers
should ask to be connected to Griffon Corporation's second quarter earnings
teleconference. A replay of the call will be available one hour following the
call and can be accessed by dialing (800) 642-1687, conference code: 5740620.
The replay will be available until 5:00 p.m. EDT on May 17, 2005. In conjunction
with this conference call, the Company has also posted on its website at
www.griffoncorp.com certain financial information regarding its second quarter
results which will be archived and available at the website for one year.
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.
GRIFFON CORPORATION
OPERATING HIGHLIGHTS
(Unaudited, in thousands except for per share amounts)
For the Three Months Ended For the Six Months Ended
March 31, March 31,
2005 2004 2005 2004
---- ---- ---- ----
Net sales:
Garage Doors $ 110,174 $ 96,093 $ 245,881 $ 217,953
Installation Services 66,508 72,332 138,797 149,037
Specialty Plastic Films 94,533 106,613 185,865 210,614
Electronic Information and Communication Systems 56,353 47,259 102,755 88,899
Intersegment eliminations (5,095) (4,661) (10,651) (10,365)
--------- --------- -------- ---------
$ 322,473 $ 317,636 $662,647 $ 656,138
Operating income:
Garage Doors $ (1,251) $ 3,964 $ 11,398 $ 17,224
Installation Services 1,287 1,692 2,576 4,698
Specialty Plastic Films 6,220 15,142 14,818 28,082
Electronic Information and Communication Systems 3,397 3,669 5,921 5,699
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Segment operating income 9,653 24,467 34,713 55,703
Unallocated amounts (4,067) (3,360) (8,047) (7,088)
Interest expense, net (1,485) (1,759) (3,010) (3,609)
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Income before income taxes 4,101 19,348 23,656 45,006
Provision for income taxes (1) (92) (7,159) (7,327) (16,652)
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Income before minority interest 4,009 12,189 16,329 28,354
Minority interest (1,125) (3,527) (2,993) (6,577)
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Net income $ 2,884 $ 8,662 $ 13,336 $ 21,777
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Earnings per share of common stock:
Basic $ .10 $ .29 $ .45 $ .73
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Diluted $ .09 $ .27 $ .43 $ .69
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(1) Includes a reduced provision in the second quarter of fiscal 2005 as a
result of a lower projected annual effective tax rate and the resolution of
other income tax matters