| BUSINESS SEGMENTS |
BUSINESS SEGMENTS
Griffon’s reportable segments are as follows: | | • | HBP 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. |
| | • | Telephonics develops, designs and manufactures high-technology integrated information, communication and sensor system solutions to military and commercial markets worldwide. |
| | • | 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. |
Information on Griffon’s reportable segments is as follows: | | | | | | | | | | | | | | | | | | For the Three Months Ended March 31, | | For the Six Months Ended March 31, | REVENUE | 2015 | | 2014 | | 2015 | | 2014 | Home & Building Products: | |
| | |
| | |
| | |
| AMES | $ | 159,092 |
| | $ | 160,705 |
| | $ | 292,202 |
| | $ | 257,313 |
| CBP | 104,513 |
| | 90,838 |
| | 243,113 |
| | 212,680 |
| Home & Building Products | 263,605 |
| | 251,543 |
| | 535,315 |
| | 469,993 |
| Telephonics | 98,687 |
| | 104,185 |
| | 189,345 |
| | 200,210 |
| Plastics | 137,728 |
| | 151,959 |
| | 277,520 |
| | 290,942 |
| Total consolidated net sales | $ | 500,020 |
| | $ | 507,687 |
| | $ | 1,002,180 |
| | $ | 961,145 |
|
The following table reconciles segment operating profit to income before taxes: | | | | | | | | | | | | | | | | | | For the Three Months Ended March 31, | | For the Six Months Ended March 31, | INCOME (LOSS) BEFORE TAXES | 2015 | | 2014 | | 2015 | | 2014 | Segment operating profit: | |
| | |
| | |
| | |
| Home & Building Products | $ | 8,651 |
| | $ | 8,818 |
| | $ | 25,020 |
| | $ | 18,211 |
| Telephonics | 9,114 |
| | 10,677 |
| | 16,631 |
| | 21,329 |
| Plastics | 9,867 |
| | 9,352 |
| | 17,887 |
| | 15,177 |
| Total segment operating profit | 27,632 |
| | 28,847 |
| | 59,538 |
| | 54,717 |
| Net interest expense | (11,857 | ) | | (12,361 | ) | | (23,494 | ) | | (25,462 | ) | Unallocated amounts | (7,580 | ) | | (8,391 | ) | | (15,844 | ) | | (16,374 | ) | Loss from debt extinguishment, net | — |
| | (38,890 | ) | | — |
| | (38,890 | ) | Income before taxes | $ | 8,195 |
| | $ | (30,795 | ) | | $ | 20,200 |
| | $ | (26,009 | ) |
Griffon evaluates performance and allocates resources based on each segment's operating results before interest income and expense, income taxes, depreciation and amortization, unallocated amounts (mainly corporate overhead), restructuring charges, acquisition-related expenses, as applicable (“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 Income (loss) before taxes: | | | | | | | | | | | | | | | | | | For the Three Months Ended March 31, | | For the Six Months Ended March 31, | | 2015 | | 2014 | | 2015 | | 2014 | Segment adjusted EBITDA: | |
| | |
| | |
| | |
| Home & Building Products | $ | 17,330 |
| | $ | 17,124 |
| | $ | 41,800 |
| | $ | 36,191 |
| Telephonics | 11,616 |
| | 12,535 |
| | 21,648 |
| | 24,931 |
| Plastics | 15,764 |
| | 16,216 |
| | 30,315 |
| | 28,959 |
| Total Segment adjusted EBITDA | 44,710 |
| | 45,875 |
| | 93,763 |
| | 90,081 |
| Net interest expense | (11,857 | ) | | (12,361 | ) | | (23,494 | ) | | (25,462 | ) | Segment depreciation and amortization | (17,078 | ) | | (16,336 | ) | | (34,225 | ) | | (33,032 | ) | Unallocated amounts | (7,580 | ) | | (8,391 | ) | | (15,844 | ) | | (16,374 | ) | Loss from debt extinguishment, net | — |
| | (38,890 | ) | | — |
| | (38,890 | ) | Restructuring charges | — |
| | (692 | ) | | — |
| | (1,534 | ) | Acquisition costs | — |
| | — |
| | — |
| | (798 | ) | Income (loss) before taxes | $ | 8,195 |
| | $ | (30,795 | ) | | $ | 20,200 |
| | $ | (26,009 | ) |
Unallocated amounts typically include general corporate expenses not attributable to a reportable segment. | | | | | | | | | | | | | | | | |
| For the Three Months Ended March 31, |
| For the Six Months Ended March 31, | DEPRECIATION and AMORTIZATION | 2015 |
| 2014 |
| 2015 |
| 2014 | Segment: | |
| |
| |
| | Home & Building Products | $ | 8,679 |
| | $ | 7,614 |
| | $ | 16,780 |
| | $ | 15,648 |
| Telephonics | 2,502 |
| | 1,858 |
| | 5,017 |
| | 3,602 |
| Plastics | 5,897 |
| | 6,864 |
| | 12,428 |
| | 13,782 |
| Total segment depreciation and amortization | 17,078 |
| | 16,336 |
| | 34,225 |
| | 33,032 |
| Corporate | 115 |
| | 103 |
| | 228 |
| | 200 |
| Total consolidated depreciation and amortization | $ | 17,193 |
| | $ | 16,439 |
| | $ | 34,453 |
| | $ | 33,232 |
|
|
|
|
|
|
|
|
|
|
|
|
| CAPITAL EXPENDITURES | |
|
| |
|
| |
|
| |
| Segment: | |
|
| |
|
| |
|
| |
| Home & Building Products | $ | 11,114 |
| | $ | 6,722 |
| | $ | 21,375 |
| | $ | 15,190 |
| Telephonics | 1,339 |
| | 5,520 |
| | 2,308 |
| | 8,887 |
| Plastics | 7,486 |
| | 4,390 |
| | 15,165 |
| | 10,150 |
| Total segment | 19,939 |
| | 16,632 |
| | 38,848 |
| | 34,227 |
| Corporate | 853 |
| | 297 |
| | 865 |
| | 618 |
| Total consolidated capital expenditures | $ | 20,792 |
| | $ | 16,929 |
| | $ | 39,713 |
| | $ | 34,845 |
|
| | | | | | | | | ASSETS | At March 31, 2015 |
| At September 30, 2014 | Segment assets: | |
| | Home & Building Products | $ | 1,091,443 |
| | $ | 1,030,005 |
| Telephonics | 291,535 |
| | 319,327 |
| Plastics | 354,150 |
| | 389,464 |
| Total segment assets | 1,737,128 |
| | 1,738,796 |
| Corporate | 6,241 |
| | 64,015 |
| Total continuing assets | 1,743,369 |
| | 1,802,811 |
| Assets of discontinued operations | 3,884 |
| | 3,750 |
| Consolidated total | $ | 1,747,253 |
| | $ | 1,806,561 |
|
|