PR Newswire
PLEASANTON, Calif., Feb. 8, 2021
PLEASANTON, Calif., Feb. 8, 2021 /PRNewswire/ --
Simpson Manufacturing Co., Inc. (the "Company") (NYSE: SSD), an industry leader in engineered structural connectors and building solutions, today announced its financial results for the fourth quarter and full-year of 2020. Refer to the "Segment and Product Group Information" table below for additional segment information (including information about the Company's Asia/Pacific segment and Administrative and All Other segment).
All comparisons below (which are generally indicated by words such as "increased," "decreased," "remained," or "compared to"), unless otherwise noted, are comparing the quarter ended December 31, 2020 with the quarter ended December 31, 2019 or the fiscal year ended December 31, 2020 with the fiscal year ended December 31, 2019.
2020 Fourth Quarter Financial Highlights
2020 Full-Year Financial Highlights
Management Commentary
"I'm extremely pleased with our strong financial and operational performance in 2020, which we delivered in a highly challenging operating environment amidst the COVID-19 pandemic," commented Karen Colonias, President and Chief Executive Officer of Simpson Manufacturing Co., Inc. "Our net sales improved 11.6% over 2019 to $1.27 billion, the highest in our Company's history, driven by strong sales volume. As a result, we generated record earnings of $4.27 per diluted share, up 43.3% over 2019. These results would not have been possible without the hard work and dedication of our employees. Their diligence, including strict adherence to protocols to help minimize the spread of COVID-19, has enabled us to continue operating our business with minimal disruptions from the pandemic."
Mrs. Colonias continued, "Our record 2020 results were further supported by our commitment to position Simpson for long-term sustainable and increasingly profitable growth. In October of 2017, we unveiled a three year 2020 Plan with aggressive targets to maximize our operating efficiencies and drive long term stockholder value. While we elected to withdraw these financial targets in April 2020 due to the significant level of uncertainty surrounding the impact of COVID-19, we continued to execute based on the same underlying principles, focusing on operating efficiencies and cost savings to guide us through the COVID-19 pandemic. At the same time, we also experienced certain tailwinds in our business as a result of COVID-19 related macro-economic conditions; namely, favorable steel prices, temporary reductions in travel and related operating expenses and an increase in repair and remodel activity. Due to the culmination of these factors we were able to meet or exceed nearly all of our ambitious 2020 Plan objectives. We are very proud of this achievement."
Mrs. Colonias concluded, "Our success in executing the 2020 Plan has created a strong foundation for Simpson. We have achieved solid organic growth, rationalized our cost structure to improve company-wide profitability and improved our working capital management and balance sheet position, in turn, creating value for all key Simpson stakeholders."
Corporate Developments
Business Outlook
Based on business trends and conditions as of today, February 8, 2021, the Company's outlook for the full fiscal year ending December 31, 2021 is as follows:
While the magnitude and duration of the COVID-19 pandemic and its impact on general economic conditions remains uncertain, the Company is continuing to monitor the impact of the outbreak on its operations and financial condition, which was not significantly adversely impacted in fiscal 2020. Please note that ongoing uncertainties surrounding the impact of COVID-19 on the Company's business, which may include the economic impact on its operations, raw material costs, consumers, suppliers, vendors, and other factors outside of its control, may have a material adverse impact on the Company's financial outlook.
Conference Call Details
Investors, analysts and other interested parties are invited to join the Company's fourth quarter 2020 financial results conference call on Monday, February 8, 2021, at 5:00 pm Eastern Time (2:00 pm Pacific Time). To participate, callers may dial (877) 407-0792 (U.S. and Canada) or (201) 689-8263 (International) approximately 10 minutes prior to the start time. The call will be webcast simultaneously and can be accessed through http://public.viavid.com/player/index.php?id=143082 or a link on the Company's website at www.simpsonmfg.com/financials/events.html. For those unable to participate during the live broadcast, a replay of the call will also be available beginning that same day at 8:00 p.m. Eastern Time until 11:59 p.m. Eastern Time on Monday, February 22, 2021, by dialing (844) 512–2921 (U.S. and Canada) or (412) 317–6671 (International) and entering the conference ID: 13715193. The webcast will remain posted on the Investor Relations section of the Company's website for 90 days.
A copy of this earnings release will be available prior to the call, accessible through the Investor Relations section of the Company's website at www.simpsonmfg.com.
About Simpson Manufacturing Co., Inc.
Simpson Manufacturing Co., Inc., headquartered in Pleasanton, California, through its subsidiary, Simpson Strong-Tie Company Inc., designs, engineers and is a leading manufacturer of wood construction products, including connectors, truss plates, fastening systems, fasteners and shearwalls, and concrete construction products, including adhesives, specialty chemicals, mechanical anchors, powder actuated tools and reinforcing fiber materials. The Company's common stock trades on the New York Stock Exchange under the symbol "SSD."
Copies of Simpson Manufacturing's Annual Report to Stockholders and its proxy statements and other SEC filings, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, are made available free of charge on the company's Web site on the same day they are filed with the SEC. To view these filings, visit the Investor Relations section of the Company's Web site.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 2 IE of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "target," "continue," "predict," "project," "change," "result," "future," "will," "could," "can," "may," "likely," "potentially," or similar expressions that concern our strategy, plans, expectations or intentions. Forward-looking statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, business outlook, priorities, expectations and intentions, expectations for sales growth, comparable sales, earnings and performance, stockholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for services, share repurchases, our strategic initiatives, including the impact of these initiatives on our strategic and operational plans and financial results, and any statement of an assumption underlying any of the foregoing and other statements that are not historical facts. Although we believe that the expectations, opinions, projections and comments reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and we can give no assurance that such statements will prove to be correct. Actual results may differ materially from those expressed or implied in such statements.
Forward-looking statements are subject to inherent uncertainties, risk and other factors that are difficult to predict and could cause our actual results to vary in material respects from what we have expressed or implied by these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those expressed in our forward-looking statements include the impact of COVID-19 on our operations and supply chain, and the operations of our customers, suppliers and business partners and those discussed under Part I – Item 1A. Risk Factors and Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations in our most recent Annual Report on Form 10-K, Part II – Other Information – Item 1.A. Risk Factors in our Form 10-Qs for the quarters ended March 31, 2020, June 30, 2020, and September 30, 2020, and subsequent filings with the SEC. To the extent that COVID-19 adversely affects our business and financial results, it may also have the effect of heightening many of such risk and other factors.
We caution that you should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise. Readers are urged to carefully review and consider the various disclosures made in our reports filed with the SEC that advise of the risks and factors that may affect our business, results of operations and financial condition.
Simpson Manufacturing Co., Inc. and Subsidiaries | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net sales | $ | 293,897 | $ | 262,510 | $ | 1,267,945 | $ | 1,136,539 | |||||||
Cost of sales | 170,222 | 152,457 | 691,561 | 644,409 | |||||||||||
Gross profit | 123,675 | 110,053 | 576,384 | 492,130 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development and engineering expense | 12,947 | 11,771 | 50,807 | 47,058 | |||||||||||
Selling expense | 27,760 | 28,097 | 112,517 | 112,568 | |||||||||||
General and administrative expense | 43,633 | 39,333 | 161,029 | 157,274 | |||||||||||
Total operating expenses | 84,340 | 79,201 | 324,353 | 316,900 | |||||||||||
Gain on disposal of assets | (123) | (5,759) | (332) | (6,024) | |||||||||||
Income from operations | 39,458 | 36,611 | 252,363 | 181,254 | |||||||||||
Interest income (expense), net and other | 403 | (503) | (2,799) | (2,897) | |||||||||||
Income before taxes | 39,861 | 36,108 | 249,564 | 178,357 | |||||||||||
Provision for income taxes | 10,223 | 8,051 | 62,564 | 44,375 | |||||||||||
Net income | $ | 29,638 | $ | 28,057 | $ | 187,000 | $ | 133,982 | |||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.68 | $ | 0.63 | $ | 4.28 | $ | 3.00 | |||||||
Diluted | $ | 0.68 | $ | 0.63 | $ | 4.27 | $ | 2.98 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 43,501 | 44,466 | 43,709 | 44,735 | |||||||||||
Diluted | 43,647 | 44,684 | 43,841 | 44,921 | |||||||||||
Other data: | |||||||||||||||
Depreciation and amortization | $ | 8,679 | $ | 9,358 | $ | 38,767 | $ | 38,402 | |||||||
Pre-tax equity-based compensation expense | 4,047 | 1,735 | 13,506 | 10,434 | |||||||||||
Simpson Manufacturing Co., Inc. and Subsidiaries | |||||||||
December 31, | |||||||||
2020 | 2019 | ||||||||
Cash and short-term investments | $ | 274,639 | $ | 230,210 | |||||
Trade accounts receivable, net | 165,128 | 139,364 | |||||||
Inventories | 283,742 | 251,907 | |||||||
Other current assets | 29,630 | 19,426 | |||||||
Total current assets | 753,139 | 640,907 | |||||||
Property, plant and equipment, net | 255,184 | 249,012 | |||||||
Operating lease right-of-use assets | 45,792 | 35,436 | |||||||
Goodwill | 135,844 | 131,879 | |||||||
Other noncurrent assets | 42,610 | 38,132 | |||||||
Total assets | $ | 1,232,569 | $ | 1,095,366 | |||||
Trade accounts payable | $ | 48,271 | $ | 33,351 | |||||
Other current liabilities | 145,790 | 125,556 | |||||||
Total current liabilities | 194,061 | 158,907 | |||||||
Operating lease liabilities, net of current portion | 37,199 | 27,930 | |||||||
Deferred income tax and other long-term liabilities | 20,366 | 16,572 | |||||||
Stockholders' equity | 980,943 | 891,957 | |||||||
Total liabilities and stockholders' equity | $ | 1,232,569 | $ | 1,095,366 |
Simpson Manufacturing Co., Inc. and Subsidiaries | |||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
December 31, | % | December 31, | % | ||||||||||||||||||
2020 | 2019 | change * | 2020 | 2019 | change * | ||||||||||||||||
Net Sales by Reporting Segment | |||||||||||||||||||||
North America | $ | 249,131 | $ | 226,840 | 9.8% | $ | 1,101,891 | $ | 972,849 | 13.3% | |||||||||||
Percentage of total net sales | 84.8 | % | 86.4 | % | 86.9 | % | 85.6 | % | |||||||||||||
Europe | 41,836 | 33,497 | 24.9% | 156,713 | 155,144 | 1.0% | |||||||||||||||
Percentage of total net sales | 14.2 | % | 12.8 | % | 12.4 | % | 13.7 | % | |||||||||||||
Asia/Pacific | 2,930 | 2,173 | 34.8% | 9,341 | 8,546 | 9.3% | |||||||||||||||
Percentage of total net sales | 1.0 | % | 0.8 | % | 0.7 | % | 0.8 | % | |||||||||||||
Total | $ | 293,897 | $ | 262,510 | 12.0% | $ | 1,267,945 | $ | 1,136,539 | 11.6% | |||||||||||
Net Sales by Product Group** | |||||||||||||||||||||
Wood Construction | $ | 248,365 | $ | 216,870 | 15% | $ | 1,082,577 | $ | 948,768 | 14% | |||||||||||
Percentage of total net sales | 85 | % | 83 | % | 85 | % | 84 | % | |||||||||||||
Concrete Construction | 45,332 | 45,578 | (1)% | 184,631 | 187,462 | (2)% | |||||||||||||||
Percentage of total net sales | 15 | % | 17 | % | 15 | % | 16 | % | |||||||||||||
Other | 199 | 62 | N/M | 437 | 309 | N/M | |||||||||||||||
Total | $ | 293,897 | $ | 262,510 | 12% | $ | 1,267,945 | $ | 1,136,539 | 12% | |||||||||||
Gross Profit by Reporting Segment | |||||||||||||||||||||
North America | $ | 107,517 | $ | 99,487 | 8.1% | $ | 517,380 | $ | 435,738 | 18.7% | |||||||||||
North America gross profit margin | 43.2 | % | 43.9 | % | 47.0 | % | 44.8 | % | |||||||||||||
Europe | 14,754 | 10,006 | 47.5% | 55,541 | 53,906 | 3.0% | |||||||||||||||
Europe gross profit margin | 35.3 | % | 29.9 | % | 35.4 | % | 35.3 | % | |||||||||||||
Asia/Pacific | 1,450 | 768 | N/M | 3,477 | 2,692 | N/M | |||||||||||||||
Administrative and all other | (46) | (208) | N/M | (14) | (206) | N/M | |||||||||||||||
Total | $ | 123,675 | $ | 110,053 | 12.4% | $ | 576,384 | $ | 492,130 | 17.1% | |||||||||||
Income (Loss) from Operations | |||||||||||||||||||||
North America | $ | 36,117 | $ | 36,783 | (1.8)% | $ | 249,252 | $ | 176,329 | 41.4% | |||||||||||
North America operating profit margin | 14.5 | % | 16.2 | % | 22.6 | % | 18.1 | % | |||||||||||||
Europe | 1,296 | (2,827) | 145.8% | 8,396 | 6,817 | 23.2% | |||||||||||||||
Europe operating profit (loss) margin | 3.1 | % | (8.4) | % | 5.4 | % | 4.4 | % | |||||||||||||
Asia/Pacific | 468 | 105 | N/M | 308 | (731) | N/M | |||||||||||||||
Administrative and all other | 1,577 | 2,550 | N/M | (5,593) | (1,161) | N/M | |||||||||||||||
Total | $ | 39,458 | $ | 36,611 | 7.8% | $ | 252,363 | $ | 181,254 | 39.2% |
* | Unfavorable percentage changes are presented in parentheses. | |
** | The Company manages its business by geographic segment but is presenting sales by product group as additional information. | |
N/M | Statistic is not material or not meaningful. |
CONTACT:
Addo Investor Relations
[email protected]
(310) 829-5400
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SOURCE Simpson Manufacturing Co., Inc.
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