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PLEASANTON, Calif. , July 25, 2022 /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 second quarter of 2022. 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).
Beginning in 2022, the Company changed its presentation for both the North America and the Administrative and all other segment's statement of operations to display allocated expenses and management fees as a separate item below income from operations. During 2021, allocated expenses and management fees between the two segments were previously included in operating expenses and in income from operations and have been adjusted herein to conform to the 2022 presentation. Consolidated income from operations, income before tax and net income for all periods presented below are not affected by the change in presentation.
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 June 30, 2022 with the quarter ended June 30, 2021 and include the results of the acquisition of FIXCO Invest S.A.S ("ETANCO") on April 1, 2022 . All purchase accounting adjustments related to the ETANCO acquisition are preliminary and subject to change.
"We delivered strong financial and operational performance in the second quarter," commented Karen Colonias , Chief Executive Officer of Simpson Manufacturing Co., Inc. "Since we announced the acquisition of ETANCO in late December, planning for and initiating the integration has been a primary focus. Our integration efforts, supported by the strong culture of our combined teams, have been progressing according to plan. After several months of hard work, we were very pleased to have found no material adjustments to our previously identified synergy opportunities, although the realization of the full amount is subject to change based on the current environment in Europe . We still believe we are well positioned to capture meaningful benefits from those synergies in the coming years."
Mrs. Colonias concluded, "We made progress on our key growth initiatives during the second quarter within each of our five end use markets including Residential, Commercial, OEM, National Retail and Building Technology, which gives us confidence we can continue our above market growth relative to U.S. housing starts in fiscal 2022 and beyond. In conjunction with the integration of ETANCO, we identified facility expansions in the U.S. that will improve our overall service, production efficiencies and safety in the workplace, as well as reduce our reliance on certain outsourced finished goods and component products, and ensure we have ample capacity to meet our customers' needs. Investments in these expansions have already started this year and will continue into 2024. While the rapidly changing macroeconomic environment including rising interest rates, inflation and other factors continue to impact the industry at large, we believe Simpson is uniquely positioned to perform given our diversification strategy and strong brand reputation that we've cultivated over the past 66 years."
The Company has updated its 2022 financial outlook to include the acquisition of ETANCO, two quarters of actual results, and its latest expectations regarding demand trends, raw material costs and operating expenses. Based on business trends and conditions as of today, July 25, 2022 , the Company's outlook for the full fiscal year ending December 31, 2022 is as follows:
Investors, analysts and other interested parties are invited to join the Company's second quarter of 2022 financial results conference call on Monday, July 25, 2022, 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 https://viavid.webcasts.com/starthere.jsp?ei=1556555&tp_key=30be70b1e5 or a link on the Company's website at ir.simpsonmfg.com. 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 , August 8, 2022, by dialing (844) 512–2921 (U.S. and Canada ) or (412) 317–6671 (International) and entering the conference ID: 13730869. The webcast will remain posted on the Investor Relations section of Simpson's website at ir.simpsonmfg.com 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 ir.simpsonmfg.com.
About Simpson Manufacturing Co., Inc.
Simpson Manufacturing Co., Inc., headquartered in Pleasanton, California , through its subsidiaries, including Simpson Strong-Tie Company Inc., designs, engineers and is a leading manufacturer of wood construction products, including connectors, truss plates, fastening systems, fasteners and shear walls, and concrete construction products, including adhesives, specialty chemicals, mechanical anchors, powder actuated tools and reinforcing fiber materials. The Company primarily supplies its building product solutions to both the residential and commercial markets in North America and Europe . 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 at ir.simpsonmfg.com.
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 2IE 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," "outlook," "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 are all statements other than those of historical fact and 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, the integration of the acquisition of ETANCO, 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. 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 the COVID-19 pandemic on our operations and supply chain, the operations of our customers, suppliers and business partners, and the successful integration of ETANCO, as well as those discussed in the :Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of our most recent Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other reports we file with the SEC. To the extent that the COVID-19 pandemic adversely affects our business and financial results, it may also have the effect of heightening many of such risks 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, except as may be required by law. 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.
Footnotes (1) Reflects EUR to USD exchange rate as of April 1, 2022 .
Simpson Manufacturing Co., Inc. and Subsidiaries
UNAUDITED Consolidated Statements of Operations
(In thousands, except per share data)
Research and development and engineering expense
Acquisition and integration related costs
Gain on disposal of assets
Interest expense, net and other
Other & foreign exchange loss, net
Cash dividend declared per common share
Simpson Manufacturing Co., Inc. and Subsidiaries
UNAUDITED Consolidated Condensed Balance Sheets
Property, plant and equipment, net
Accrued liabilities and other current liabilities
Operating lease liabilities, net of current portion
Long-term debt, net of current portion
Deferred income tax and other long-term liabilities
Total liabilities and stockholders' equity
Simpson Manufacturing Co., Inc. and Subsidiaries
UNAUDITED Segment and Product Group Information
Net Sales by Reporting Segment
Percentage of total net sales
Percentage of total net sales
Net Sales by Product Group**
Percentage of total net sales
Percentage of total net sales
Gross Profit (Loss) by Reporting Segment
Unfavorable percentage changes are presented in parentheses, if any.
The Company manages its business by geographic segment but is presenting sales by product group as additional information.
Statistic is not material or not meaningful.
CONTACT: Addo Investor Relations [email protected] (310) 829-5400
SOURCE Simpson Manufacturing Co., Inc.
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