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Clopay Building Products is off to a fast start, boosted by exciting new product launches, strong business results and receiving recognition from Fortune
magazine as one of its “Most Admired Companies.”*
Clopay unveiled many products at the 2004 International Builders Show in January. Attended by 50,000 homebuilders, the convention often sets the trend for hot products in the building industry and Clopay was at the forefront with its new Coachmane Collection and Full View Door Series.
The Coachmane Collection, pictured here, offers the sophisticated expression of a carriage-house door with the science of durable steel and composite construction. The result is a classic look that
is virtually maintenance free. It’s also changing the way trend-setting builders are thinking about the garage.
On the other end of the design spectrum, The Full View Door Series combines contemporary aluminum and glass in a sleek modern design for innovative style. Not only can it transform a garage, it can also be used as an indoor partition or a versatile patio door.
It’s product innovation like this combined with overall business strength and
superior customer service, that keeps Clopay in its industry leadership position.
*Griffon was ranked number 5 in the Home Furnishings category.
The company continued its record setting performance in fiscal 2004 with the most profitable second quarter and first six months in its history. Each of the company’s operating units achieved increases in sales, operating income and margins.
Net sales for the quarter were $317,636,000 compared to $277,330,000 for the second quarter of fiscal 2003. Income before income taxes increased to $19,348,000 from $11,236,000. Net income was $8,662,000 in the current quarter, up from $4,617,000 in the second quarter of 2003. Basic earnings per share for the quarter was $.29 compared to $.14 last year and diluted earnings
per share was $.27 compared to $.14 in 2003.
Our specialty plastic films division achieved substantially higher sales and operating profit. The sales growth was due to an improved product mix, selling price adjustments to pass through raw material price increases to customers and the effect of a weaker U.S. dollar on translated foreign sales. Specialty plastic films’ operating profit benefited from the sales growth and increased operating efficiencies. The building products operations contributed to the quarter’s improved operating results with higher unit sales of garage doors in both the retail and dealer channels of distribution, sales gains in installation services and its elimination last year of an underperforming location and effective expense control.
The electronic information and communication systems segment, Telephonics, had higher sales and operating profit due to the effect of recently awarded contracts and growth in defense production programs. Consolidated earnings in the quarter reflected increased interest expense of $1,100,000 associated with the company’s convertible subordinated notes which were sold in the latter part of fiscal 2003.
Net sales for the six months ended March 31, 2004 were $656,138,000 compared to $579,484,000 for the first six months of fiscal 2003. Income before income taxes for the six months rose to $45,006,000, up from $32,317,000 last year. Net income increased to $21,777,000 from $15,537,000 for the first six months of 2003. Diluted earnings per share for the first half was $.69 compared to $.46 last year.
Cash flow from operations during the quarter was $18 million which was used to fund treasury stock purchases of $9 million and capital expenditures of $10 million, principally for the specialty plastic films segment’s capital expansion programs.
The outlook for the remainder of fiscal 2004 is bright. We expect continued strong performance from specialty plastic films, the building products operations are well-positioned to achieve further sales growth and profitability improvements and we anticipate that Telephonics’ performance under a recently awarded contract for ground surveillance radar will be a significant contributor to sales and earnings increases.
Harvey R. Blau
Chairman of the Board
Robert Balemian
President | 
