Griffon Corporation (NYSE:GFF) Q4 2019 Earnings Conference Call - Final Transcript
Nov 14, 2019 • 04:30 pm ET
Brian G. Harris
for borrowing under the revolving credit facility subject to certain loan covenants. Corporate and unallocated expenses, excluding depreciation, were $12 million in the quarter and $46 million in the year.
Now I would like to turn our annual guidance. We expect total revenue for the fiscal year 2022 to increase 2% to 3% compared to fiscal 2019. Fiscal 2020 adjusted EBITDA is expected to be $250 million or better, excluding both unallocated cost of $45 million and one-time charges related to the strategic initiative. We expect to continue to generate free cash flow in excess of net income, inclusive of capital investments and spending related to the strategic initiative.
Capital expenditures for the fiscal year 2020 are expected to be $60 million, again includes the strategic initiative investment. Depreciation and amortization is expected to be $64 million of which $10 million is amortization. We expect net interest expense of approximately $65 million for fiscal 2020. Our expected normalized tax rate will be approximately 33% in 2020, as is always the case geographic earnings mix and any legislative action, including new tax guidance on tax reform matters, may impact rate.
I'd like to note that our results in fiscal 2019 exceeded both our guidance and our internal expectation. Our guidance for fiscal 2020 similar to last year reflect some restraint, which we feel is margin given the global macroeconomic uncertainty affecting our home market.
Now I'll turn the call back over to Ron.
Ronald J. Kramer
Thanks, Brian. Our fiscal 2019, was the first full year of operation after reposition Griffon's portfolio of businesses. Our objective was to significantly enhance shareholder value by improving margins and generating stronger free cash flow. In 2019, we generated $69 million in free cash flow and continuing net income of $46 million, while reducing net leverage from 5.5 times to 4.8 times. Our EBITDA margin excluding unallocated costs improved by over 30 basis points to 11.1% while organic revenue increased by 5%.
We had an excellent year. We have significant top and bottom-line growth opportunities ahead of us, such as the exciting initiatives we've kicked off at CornellCookson, and the AMES plan that we've outlined, the building momentum at Telephonics with backlog up year-over-year, and a growing pipeline of new business opportunities.
These opportunities are driven by the hard work and dedication of our 7,200 plus employees, and I'd like to thank them for all of their efforts and our shareholders for their continued support. We are proud of what we've accomplished this year, and we're excited about our prospects to continue to deliver exceptional returns to our shareholders in the years ahead.
Operator, we'll take any questions.