Financial Performance - Net sales for the three months ended March 31, 2021, were $347,642,000, representing a 22.6% increase from $283,668,000 in the same period of 2020[12] - Gross profit for the same period was $162,282,000, up from $129,666,000, indicating a gross margin improvement[12] - Net income increased to $50,387,000 for Q1 2021, compared to $36,826,000 in Q1 2020, reflecting a 36.8% year-over-year growth[12] - Total net sales for the company reached $347.6 million in Q1 2021, compared to $283.7 million in Q1 2020, marking an increase of 22.6%[70] - Income from operations increased to $68.4 million, up 38.6% from $49.4 million in the prior year[12] - Net income for the three months ended March 31, 2021, was $50.4 million, a 36.8% increase from $36.8 million in 2020[12] - Basic net income per common share for the three months ended March 31, 2021, was $1.16, up from $0.84 in the same period of 2020, reflecting a 38% increase[41] Assets and Liabilities - Total current assets rose to $819,001,000 as of March 31, 2021, compared to $751,983,000 at the end of 2020, marking an increase of 8.9%[10] - Total assets increased to $1.29 billion as of March 31, 2021, compared to $1.20 billion at the end of 2020[10] - Total liabilities decreased to $280,218,000 as of March 31, 2021, down from $356,654,000 at the end of 2020, a reduction of 21.4%[10] - The company had no outstanding long-term debt as of March 31, 2021, compared to $150.0 million as of December 31, 2020[10] Cash Flow and Dividends - The company declared cash dividends of $0.23 per common share for both Q1 2021 and Q1 2020[12] - The Company declared a quarterly cash dividend of $0.25 per share, estimated to total $10.9 million, payable on July 22, 2021[73] - Cash flows from operating activities provided $17.833 million in Q1 2021, compared to $12.725 million in Q1 2020, reflecting a 40% increase[17] - The company experienced a net decrease in cash and cash equivalents of $17.211 million in Q1 2021, compared to an increase of $71.531 million in Q1 2020[17] Stock and Compensation - Stock-based compensation expense for the three months ended March 31, 2021, was $6.5 million, an increase of $6.2 million compared to $0.3 million in the same period of 2020[43] - The Company granted 133,424 restricted stock units (RSUs) to employees during the three months ended March 31, 2021, with an estimated weighted average fair value of $100.26 per share[44] - Noncash compensation related to stock plans amounted to $6.542 million in Q1 2021, significantly higher than $0.277 million in Q1 2020[17] Sales by Product - Wood construction products accounted for 87% of total net sales in the three months ended March 31, 2021, compared to 86% in the same period of 2020[35] - Concrete construction products represented 13% of total net sales for the three months ended March 31, 2021, down from 14% in the same period of 2020[36] - Wood construction products sales increased to $301,578,000 in Q1 2021 from $242,520,000 in Q1 2020, marking a growth of 24.3%[72] - Concrete construction products sales rose to $45,523,000 in Q1 2021, up from $41,012,000 in Q1 2020, reflecting a 11.9% increase[72] Accounts Receivable and Inventory - Trade accounts receivable increased to $232,646 thousand as of March 31, 2021, up from $174,853 thousand in 2020, reflecting a growth of 33%[46] - Total inventories rose to $296,640 thousand at March 31, 2021, compared to $255,720 thousand in 2020, marking an increase of 16%[47] - The allowance for doubtful accounts decreased from $2.11 million on December 31, 2020, to $1.78 million on March 31, 2021, after write-offs of $215,000[31] Lease Obligations - Operating lease liabilities totaled $44,751 thousand as of March 31, 2021, compared to $33,687 thousand in 2020, indicating a 33% increase[58] - The weighted-average remaining lease term for operating leases was 7.13 years as of March 31, 2021, compared to 6.38 years in 2020[61] - The company reported an operating lease cost of $2.9 million for Q1 2021, up from $2.5 million in Q1 2020, which is an increase of 14.7%[59] Goodwill and Intangible Assets - Goodwill totaled $133,477 thousand at March 31, 2021, slightly down from $135,844 thousand at December 31, 2020, a decrease of 2%[52] - Amortization expense for definite-lived intangible assets was $1.7 million for the three months ended March 31, 2021, compared to $1.5 million in 2020, reflecting a 13% increase[53] - The estimated future amortization of definite-lived intangible assets totals $24.4 million, with $4.6 million expected in the remaining nine months of 2021[55]

Simpson Manufacturing Co., Inc (NYSE:SSD) Q1 2021 Earnings Conference Call April 26, 2021 5:00 PM ET Company Participants Kim Orlando - ADDO, IR Karen Colonias - Simpson’s President and CEO Brian Magstadt - CFO & Treasurer Conference Call Participants Daniel Moore - CJS Securities Tim Wojs - Robert Baird Kurt Yinger - D.A. Davidson Julio Romero - Sidoti & Company Operator Greetings and welcome to Simpson Manufacturing Company’s First Quarter 2021 Earnings Conference Call. At this time, all participants are ...

PART I [Business Overview](index=5&type=section&id=Item%201.%20Business) Simpson Manufacturing Co., Inc. designs, engineers, and manufactures wood and concrete construction products for residential, commercial, and DIY markets, with operations dependent on the construction industry and steel as a primary raw material - The company is a leading manufacturer of wood and concrete construction products, marketing them to residential, light industrial, commercial, remodeling, and DIY markets[18](index=18&type=chunk) - A key distribution strategy includes expanding product offerings through home centers. The company successfully brought back Lowe's as a customer in Q2 2020, completing a rollout to over **1,700 stores** by year-end[25](index=25&type=chunk)[33](index=33&type=chunk) - The company's primary raw material is steel. It faces uncertainty regarding steel prices due to factors like import tariffs and international trade disputes[38](index=38&type=chunk)[39](index=39&type=chunk) - The business is seasonal and cyclical, with sales historically lower in the first and fourth quarters, and is highly dependent on the North American residential construction market[43](index=43&type=chunk) Employee Count by Region as of Dec 31, 2020 | Region | Employee Count | | :--- | :--- | | North America | 2,591 | | Europe | 670 | | Asia Pacific | 301 | | **Total** | **3,562** | [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces various material risks including the impact of the COVID-19 pandemic, dependency on the cyclical housing market, reliance on large customers, raw material price volatility, product liability, cybersecurity threats, and international operational challenges [Risks Related to the COVID-19 Pandemic](index=11&type=section&id=Risks%20Related%20to%20the%20COVID-19%20Pandemic) The COVID-19 pandemic poses significant risks to the company's operations, supply chain, and customer demand, potentially leading to economic downturns, operational disruptions, and increased compliance costs with uncertain full impact - The COVID-19 pandemic could negatively impact operations, supply chains, and customer demand, potentially compressing margins and being adversely affected by a resulting economic downturn[58](index=58&type=chunk) - Compliance with new health and safety regulations, such as those from the COVID-19 pandemic, may require altering manufacturing processes and could increase capital expenditures and other expenses[61](index=61&type=chunk) [Risks Related To Our Business And Our Industry](index=12&type=section&id=Risks%20Related%20To%20Our%20Business%20And%20Our%20Industry) The company's business faces industry-specific risks including dependence on cyclical housing markets, potential loss of large customers, challenges in new product development, intense competition, raw material price volatility, and reliance on third-party transportation - A significant portion of product sales depends on housing starts, making the business vulnerable to economic cycles, interest rates, and consumer confidence[63](index=63&type=chunk) - The company has a few large customers, and the loss of any one could materially reduce net sales and income. Customer consolidation increases this risk[65](index=65&type=chunk)[67](index=67&type=chunk) - Steel is the principal raw material, and its price fluctuates due to factors beyond the company's control, including import tariffs. The inability to pass cost increases to customers could adversely affect profitability[76](index=76&type=chunk)[77](index=77&type=chunk) [Product, Services and Sales Risks](index=14&type=section&id=Product,%20Services%20and%20Sales%20Risks) The company faces product and service risks including potential product liability claims, design or manufacturing defects, and recalls, which could harm its reputation and financial results, alongside significant liabilities from errors in engineering services or design software - The company is exposed to product liability claims, and while insured above a certain amount, it bears the costs of defense and damages up to the retention amount. A major claim could exceed insurance coverage[80](index=80&type=chunk)[81](index=81&type=chunk) - Defects in products, if not discovered before installation, could lead to unsafe structures, property damage, or personal injury, potentially resulting in significant liability for the company[82](index=82&type=chunk)[83](index=83&type=chunk) - Errors in the company's planning/design software or engineering services could lead to litigation and liability for correcting deficiencies or compensating for damages[86](index=86&type=chunk) [Risks Related to Our Intellectual Property and Information Technology](index=16&type=section&id=Risks%20Related%20to%20Our%20Intellectual%20Property%20and%20Information%20Technology) The company faces significant technology and intellectual property risks, including the commercial success of new software, IP protection, cybersecurity threats, and operational disruptions from complex IT system upgrades and failures - The company is investing heavily in software and applications, but may not be able to create commercially successful products or keep up with rapid technological changes[87](index=87&type=chunk)[88](index=88&type=chunk) - The company is subject to cybersecurity risks, and a security breach could lead to misappropriation of confidential information, negative publicity, and significant costs. Compliance with data privacy regulations like GDPR and CCPA is also a challenge[92](index=92&type=chunk)[93](index=93&type=chunk) - The company is increasingly dependent on complex software systems like SAP and Workday. System updates or conversions are costly, complex, and time-consuming, and any failures or delays could disrupt business operations[95](index=95&type=chunk) [Risks Related to International Operations](index=23&type=section&id=Risks%20Related%20to%20International%20Operations) With **17.5%** of 2020 sales from outside the U.S., the company is exposed to international risks including currency fluctuations, political instability, complex legal and tax environments, compliance with regulations, and potential disruptions at its China manufacturing facility - In 2020, international sales were **$222.4 million**, or **17.5%** of consolidated sales. The business is subject to risks like currency exchange rate fluctuations, changing laws, and political conditions[117](index=117&type=chunk) - The company's manufacturing facility in Jiangsu, China, creates supply chain risks. An event like the COVID-19 pandemic could interfere with commercial activity and require seeking alternative, potentially more costly, supply sources[125](index=125&type=chunk) - Significant tariffs or other restrictions on imports, particularly from China, could increase costs, require price hikes that may lose customers, or force a costly shift in production[126](index=126&type=chunk) [Unresolved Staff Comments](index=26&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[135](index=135&type=chunk) [Properties](index=26&type=section&id=Item%202.%20Properties) The company operates **53** properties globally, totaling approximately **4.2 million** square feet, with **3.0 million** owned and **1.2 million** leased, including its headquarters and principal manufacturing facilities in the U.S., Europe, and China Owned and Leased Facilities by Region (as of Feb 25, 2021) | Region | Number of Properties | Owned (sq. ft. in thousands) | Leased (sq. ft. in thousands) | Total (sq. ft. in thousands) | | :--- | :--- | :--- | :--- | :--- | | North America | 25 | 2,235 | 821 | 3,056 | | Europe | 17 | 533 | 342 | 875 | | Asia/Pacific | 10 | 175 | 41 | 216 | | Administrative and all other | 1 | 89 | — | 89 | | **Total** | **53** | **3,032** | **1,204** | **4,236** | - The company owns its headquarters in Pleasanton, CA, and principal U.S. manufacturing facilities in California, Texas, Illinois, Ohio, and Tennessee. It also owns major facilities in France, Denmark, Germany, Poland, Switzerland, Sweden, Portugal, and China[136](index=136&type=chunk) [Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings arising in the normal course of business, with further details provided in Note 14 of the Consolidated Financial Statements - The company is involved in various legal proceedings arising in the normal course of business. Further details are provided in Note 14 of the Consolidated Financial Statements[139](index=139&type=chunk) [Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safely%20Disclosure) This item is not applicable to the company - Not applicable[140](index=140&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=28&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NYSE under "SSD"; in 2020, it paid **$40.3 million** in dividends and repurchased **$13.5 million** in shares, with a new **$100.0 million** repurchase program authorized for 2021 - The company's common stock is listed on the New York Stock Exchange (NYSE) under the symbol "SSD"[142](index=142&type=chunk) - In 2020, the company paid a total of **$40.3 million** in cash dividends. A quarterly dividend of **$0.23 per share** was declared in January 2021[143](index=143&type=chunk) Share Repurchases in Q4 2020 | Period | Total Shares Purchased | Average Price Paid per Share | Total Value (approx. in millions) | | :--- | :--- | :--- | :--- | | Oct 1 - Oct 31, 2020 | 55,624 | $88.97 | $4.9 | | Nov 1 - Nov 30, 2020 | 32,630 | $89.86 | $2.9 | | Dec 1 - Dec 31, 2020 | 63,344 | $89.74 | $5.7 | | **Total** | **151,598** | | **$13.5** | - On December 16, 2020, the Board authorized a new share repurchase program of up to **$100.0 million**, effective from January 1, 2021, through December 31, 2021[146](index=146&type=chunk) [Selected Financial Data](index=30&type=section&id=Item%206.%20Selected%20Financial%20Data) This section presents a five-year summary of key financial data, highlighting **$1.27 billion** in net sales, **$252.4 million** in income from operations, **$187.0 million** in net income, and **$4.27** diluted EPS for fiscal year 2020 Selected Financial Data (2016-2020) | (in thousands, except per-share data) | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Statement of Operations Data:** | | | | | | | Net sales | $1,267,945 | $1,136,539 | $1,078,809 | $977,025 | $860,661 | | Income from operations | $252,363 | $181,254 | $172,625 | $138,273 | $141,670 | | Net income | $187,000 | $133,982 | $126,633 | $92,617 | $89,734 | | Diluted EPS | $4.27 | $2.98 | $2.72 | $1.94 | $1.86 | | Cash dividends declared per share | $0.92 | $0.91 | $0.87 | $0.81 | $0.70 | | **Balance Sheet Data (End of Year):** | | | | | | | Total assets | $1,232,569 | $1,095,366 | $1,021,663 | $1,037,523 | $979,974 | | Total stockholders' equity | $980,943 | $891,957 | $855,514 | $884,778 | $865,842 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses the company's strong 2020 financial performance, with net sales increasing **11.6%** to **$1.27 billion** and net income rising to **$187.0 million**, driven by market factors and improved gross margin, alongside its strong liquidity and 2021 outlook - The company withdrew its 2020 guidance and financial targets for its '2020 Plan' in April 2020 due to uncertainties from the COVID-19 pandemic[154](index=154&type=chunk) - Despite initial concerns, 2020 sales increased compared to 2019, driven by the return of Lowe's, increased housing starts, and a strong home repair and remodel market[160](index=160&type=chunk) - The company is continuing its multi-year implementation of an SAP ERP system, with North American operations completed and a company-wide rollout targeted for 2022, contingent on the lifting of travel restrictions[170](index=170&type=chunk) 2021 Business Outlook | Metric | 2021 Estimate | | :--- | :--- | | Operating margin | 16.5% to 18.5% | | Depreciation and amortization | $44 million to $48 million | | Effective tax rate | 25.0% to 26.0% | | Capital expenditures | $50 million to $55 million | [Results of Operations](index=34&type=section&id=Results%20of%20Operations) For 2020, net sales increased **11.6%** to **$1.27 billion**, gross profit grew **17.1%** to **$576.4 million** with margin expanding to **45.5%**, and income from operations surged **39.2%** to **$252.4 million**, leading to **$187.0 million** in net income Comparison of Operations (2020 vs. 2019) | (in thousands) | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $1,267,945 | $1,136,539 | 11.6% | | Gross profit | $576,384 | $492,130 | 17.1% | | Income from operations | $252,363 | $181,254 | 39.2% | | Net income | $187,000 | $133,982 | 39.6% | | Diluted EPS | $4.27 | $2.98 | 43.3% | - Gross profit margin increased to **45.5%** in 2020 from **43.3%** in 2019, mainly due to lower material costs[180](index=180&type=chunk) - Wood construction products constituted **85%** of total net sales in 2020, up from **84%** in 2019, while concrete products made up the remaining **15%**[179](index=179&type=chunk) Net Sales by Segment (2020 vs. 2019) | (in thousands) | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | North America | $1,101,891 | $972,849 | 13.3% | | Europe | $156,713 | $155,144 | 1.0% | | Asia/Pacific | $9,341 | $8,546 | 9.3% | | **Total** | **$1,267,945** | **$1,136,539** | **11.6%** | [Liquidity and Sources of Capital](index=39&type=section&id=Liquidity%20and%20Sources%20of%20Capital) The company maintains strong liquidity with **$274.6 million** in cash and an undrawn **$300 million** credit facility, supported by **$207.6 million** in cash from operations, while allocating capital to **$37.9 million** in capital expenditures, **$76.2 million** in share repurchases, and **$40.4 million** in dividends - Primary liquidity sources are cash on hand, cash flow from operations, and a **$300.0 million** credit facility expiring in July 2022. As of Dec 31, 2020, there were no amounts outstanding under this facility[207](index=207&type=chunk) Cash Flow Summary | (in thousands) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $207,572 | $205,662 | $160,080 | | Net cash used in investing activities | $(39,853) | $(28,021) | $(10,249) | | Net cash used in financing activities | $(126,777) | $(108,154) | $(155,393) | - In 2020, the company used **$76.2 million** for common stock repurchases and **$40.4 million** for cash dividends[211](index=211&type=chunk) Contractual Obligations as of Dec 31, 2020 | Contractual Obligation (in thousands) | Total | Less than 1 year | 1 — 3 years | 3 — 5 years | More than 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | Primary line-of credit annual facility fees | $900 | $600 | $300 | $— | $— | | Operating lease obligations | $46,342 | $10,696 | $15,613 | $10,348 | $9,685 | | Purchase obligations | $38,119 | $37,536 | $583 | $— | $— | | **Total** | **$85,361** | **$48,832** | **$16,496** | **$10,348** | **$9,685** | [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks, primarily foreign currency exchange rate risk from international operations, which it hedges with forward contracts, and interest rate risk, which is not material due to no variable interest-rate debt outstanding as of year-end 2020 - The company is exposed to foreign currency exchange rate risk from its international operations. In 2020, it entered into forward contracts to hedge risks associated with the Chinese Yuan[223](index=223&type=chunk)[224](index=224&type=chunk) - The company has no variable interest-rate debt outstanding, and estimates that a **100 basis point** change in U.S. interest rates would not have a material impact[225](index=225&type=chunk) [Consolidated Financial Statements and Supplementary Data](index=47&type=section&id=Item%208.%20Consolidated%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal year 2020, including balance sheets, statements of operations, equity, and cash flows, along with the independent auditor's unqualified opinions on both financial statements and internal controls, noting inventory valuation as a critical audit matter [Reports of Independent Registered Public Accounting Firm](index=48&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Grant Thornton LLP issued an unqualified opinion on Simpson Manufacturing's consolidated financial statements for the three years ended December 31, 2020, and on the effectiveness of internal control over financial reporting, identifying inventory valuation as a critical audit matter - The auditor, Grant Thornton LLP, issued an unqualified opinion on the consolidated financial statements[230](index=230&type=chunk) - The auditor also issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2020[231](index=231&type=chunk)[243](index=243&type=chunk) - Inventory valuation was identified as a critical audit matter due to the significant management judgment and estimation uncertainty involved in forecasting future demand and assessing market conditions for slow-moving and obsolete inventory[235](index=235&type=chunk)[236](index=236&type=chunk) [Consolidated Financial Statements](index=52&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements present the company's financial position and results for 2020, showing total assets of **$1.23 billion**, total liabilities of **$251.6 million**, total stockholders' equity of **$980.9 million**, and net income of **$187.0 million** on net sales of **$1.27 billion** Consolidated Balance Sheet Highlights (as of Dec 31) | (in thousands) | 2020 | 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $274,639 | $230,210 | | Total current assets | $753,139 | $640,907 | | Total assets | $1,232,569 | $1,095,366 | | **Liabilities & Equity** | | | | Total current liabilities | $194,061 | $158,907 | | Total liabilities | $251,626 | $203,409 | | Total stockholders' equity | $980,943 | $891,957 | Consolidated Statement of Operations Highlights (Year Ended Dec 31) | (in thousands) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Net sales | $1,267,945 | $1,136,539 | $1,078,809 | | Gross profit | $576,384 | $492,130 | $480,287 | | Income from operations | $252,363 | $181,254 | $172,625 | | Net income | $187,000 | $133,982 | $126,633 | [Notes to Consolidated Financial Statements](index=56&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies including revenue recognition and inventory valuation, provide segment information showing North America as the largest with **$1.1 billion** in 2020 net sales, discuss contingencies like the Gentry Homes lawsuit, and detail **$76.2 million** in 2020 stock repurchases - The company recognizes revenue when control transfers to the customer, which is generally F.O.B. shipping point[283](index=283&type=chunk) - In 2020, the company repurchased **1,053,314 shares** for **$76.2 million**. A new **$100.0 million** repurchase authorization was approved for 2021[311](index=311&type=chunk) - The company is a defendant in a lawsuit, Gentry Homes, Ltd. v. Simpson Strong-Tie, related to alleged corrosion of its products. The company admits no liability and cannot reasonably ascertain the likelihood or amount of a potential loss[361](index=361&type=chunk)[362](index=362&type=chunk) Net Sales by Product Group | (in thousands) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Wood Construction | $1,082,877 | $948,768 | $913,202 | | Concrete Construction | $184,631 | $187,462 | $165,317 | | Other | $437 | $309 | $290 | | **Total** | **$1,267,945** | **$1,136,539** | **$1,078,809** | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosures](index=81&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosures) The company reports no changes in or disagreements with its accountants regarding accounting principles, practices, or financial statement disclosures - None[389](index=389&type=chunk) [Controls and Procedures](index=81&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2020, while continuing to monitor changes from the ongoing SAP ERP system implementation - As of December 31, 2020, the CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level[390](index=390&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2020, based on the COSO framework[391](index=391&type=chunk) - The company is in the process of a multi-year implementation of an SAP ERP platform, which is resulting in changes to its internal control over financial reporting. Management believes necessary steps have been taken to maintain appropriate controls during this transition[393](index=393&type=chunk)[394](index=394&type=chunk) [Other Information](index=82&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[397](index=397&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=83&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's definitive Proxy Statement for its 2021 Annual Meeting of Stockholders - Information is incorporated by reference from the company's proxy statement for the 2021 Annual Meeting of Stockholders[400](index=400&type=chunk) [Executive Compensation](index=83&type=section&id=Item%2011.%20Executive%20Compensation) Information concerning executive compensation is incorporated by reference from the company's definitive Proxy Statement for its 2021 Annual Meeting of Stockholders - Information is incorporated by reference from the company's proxy statement for the 2021 Annual Meeting of Stockholders[401](index=401&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=83&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information concerning security ownership of certain beneficial owners and management is incorporated by reference from the company's definitive Proxy Statement for its 2021 Annual Meeting of Stockholders - Information is incorporated by reference from the company's proxy statement for the 2021 Annual Meeting of Stockholders[402](index=402&type=chunk) [Certain Relationship and Related Transactions, and Director Independence](index=83&type=section&id=Item%2013.%20Certain%20Relationship%20and%20Related%20Transactions,%20and%20Director%20Independence) Information concerning certain relationships, related transactions, and director independence is incorporated by reference from the company's definitive Proxy Statement for its 2021 Annual Meeting of Stockholders - Information is incorporated by reference from the company's proxy statement for the 2021 Annual Meeting of Stockholders[403](index=403&type=chunk) [Principal Accounting Fees and Services](index=83&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information concerning principal accounting fees and services is incorporated by reference from the company's definitive Proxy Statement for its 2021 Annual Meeting of Stockholders - Information is incorporated by reference from the company's proxy statement for the 2021 Annual Meeting of Stockholders[404](index=404&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=83&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This section lists documents filed as part of the Form 10-K, including consolidated financial statements, Schedule II, and various exhibits such as governance documents, credit agreements, and required certifications - The consolidated financial statements and Schedule II (Valuation and Qualifying Accounts) are filed as part of the report[406](index=406&type=chunk)[407](index=407&type=chunk) - Exhibits filed include governance documents, credit agreements, employee compensation plans, a list of subsidiaries, consent of the auditor, and CEO/CFO certifications[409](index=409&type=chunk)[411](index=411&type=chunk) [Form 10-K Summary](index=87&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no summary for this item - None[412](index=412&type=chunk)

Simpson Manufacturing Co, Inc. (NYSE:SSD) Q4 2020 Earnings Conference Call February 8, 2021 5:00 PM ET Company Participants Kimberly Orlando - ADDO Investor Relations Karen Colonias - President, CEO & Director Brian Magstadt - CFO & Treasurer Conference Call Participants Daniel Moore - CJS Securities Timothy Wojs - Robert W. Baird & Co. Julio Romero - Sidoti & Company Kurt Yinger - D.A. Davidson & Co. Operator Greetings, and welcome to the Simpson Manufacturing Company's Fourth Quarter and Full Year 2020 Ea ...

Financial Data and Key Metrics Changes - The company reported a 17.5% year-over-year increase in sales to $364.3 million, with a sequential increase of 11.7% compared to Q2 2020 [7][31] - Gross profit margin improved to 47.6% from 44.4% in the prior year quarter, driven by lower material and labor costs [7][33] - Income from operations increased by 49.8% year-over-year to $91.3 million, with earnings of $1.54 per diluted share compared to $0.97 in the prior year [9][39] Business Line Data and Key Metrics Changes - North America segment sales increased by 19.4% to $316.9 million, primarily due to the return of a home center customer and increased repair and remodel activity [31] - In Europe, sales increased by 6% to $44.8 million, benefiting from higher sales volumes and approximately $2.1 million from positive foreign currency translations [32] Market Data and Key Metrics Changes - U.S. housing starts grew by 11.4% year-over-year and 29.9% compared to Q2 2020, with notable increases in the West and South regions [16] - The company experienced a significant increase in sales volume in the repair and remodel space, with home center channel sales improving by 125% over the prior year [12][13] Company Strategy and Development Direction - The company aims to grow market share in Europe and has acquired a small connector manufacturer in the UK to enhance its product line [18] - Investments in software capabilities are seen as crucial for remaining competitive in the wood construction space, with over 40% of core wood connector sales linked to customers with software needs [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the business model despite macroeconomic challenges, citing strong brand recognition and a disciplined capital allocation strategy [28][50] - The company anticipates solid demand trends to continue through the end of the year, although seasonality may impact Q4 performance [29][46] Other Important Information - The company has maintained a healthy balance sheet with cash and cash equivalents totaling $311.5 million as of September 30, 2020 [40] - A new Chief Operating Officer will join the company at the end of November, expected to drive innovation and growth opportunities [26][27] Q&A Session Summary Question: Revenue impact of inventory sell at Lowe's - The sell-in for Lowe's in Q3 was significant, with home center customers up 125% compared to last year, but specific revenue impacts are still being assessed [52][54] Question: Contribution of small acquisitions to revenue - The small software application acquisition did not contribute meaningful revenue in Q3, while the European acquisition is expected to generate $3 million to $3.5 million annually but had no impact in Q3 [59] Question: Expectations for gross and operating margins in 2021 - Management expects gross and operating margins to pull back as they exit 2020 due to increased customer engagement costs and growth investments [60][62] Question: Revenue trends in October - Revenue growth for Q4 is expected to be around 3% year-over-year, with October tracking in line with this expectation [64][72] Question: European business performance - The European segment is recovering well, with improved operating margins despite lower gross margins year-over-year, and management is optimistic about continued strength [96] Question: Impact of lumber prices on customers - While lumber prices have fluctuated, the company has not faced direct supply issues, and recent trends indicate a decrease in lumber prices, which may help housing affordability [99][100]

Company Overview - Simpson Manufacturing Co's market capitalization was $423 billion as of September 18, 2020[11] - The company's 2019 revenue was $114 billion[11] - Since 2017, 83% of cash flow from operations has been returned to stockholders[8] Market and Products - The addressable market for Wood Connectors & Truss is $15 billion, with Simpson's share being $786 million (52%)[20, 24] - The addressable market for Fasteners is $13 billion, with Simpson's share being $161 million (22%)[20, 24] - The addressable market for Concrete is $730 million, with Simpson's share being $187 million (14%)[20, 24] - Over 40% of core wood connector sales are to customers with software needs[33, 35] Financial Performance and Strategy - In Q2 2020, net sales were $3261 million, a 70% year-over-year increase[56] - Q2 2020 gross margin was 459%, a 190 basis points year-over-year improvement[56] - The company repurchased $304 million in shares from 2017 to YTD 2020[12, 64]

Simpson Manufacturing Co., Inc. (NYSE:SSD) Q2 2020 Results Conference Call July 27, 2020 5:00 PM ET Company Participants Kim Orlando - Addo IR Karen Colonias - President and CEO Brian Magstadt - CFO and Treasurer Conference Call Participants Daniel Moore - CJS Securities Tim Wojs - Baird Steve Chercover - D.A. Davidson Julio Romero - Sidoti & Company Operator Greetings and welcome to Simpson Manufacturing Co. Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only m ...

Simpson Manufacturing Co., Inc. (NYSE:SSD) Q1 2020 Earnings Conference Call April 27, 2020 5:00 PM ET Company Participants Kim Orlando - IR Karen Colonias - President & CEO Brian Magstadt - CFO Conference Call Participants Daniel Moore - CJS Securities Julio Romero - Sidoti & Company Tim Wojs - Baird Steven Chercover - D.A. Davidson Operator Greetings and welcome to Simpson Manufacturing's First Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. I w ...

Simpson Manufacturing Co., Inc. (NYSE:SSD) Q4 2019 Earnings Conference Call February 3, 2020 5:00 PM ET Company Participants Kim Orlando - IR Karen Colonias - President & CEO Brian Magstadt - CFO Conference Call Participants Daniel Moore - CJS Securities Josh Chen - Baird Julio Romero - Sidoti Steve Chercover - D.A. Davidson Operator Greetings, and welcome to Simpson Manufacturing Company Inc. Fourth Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question- ...

SIMPSON Manufacturing COMPANY Karen Colonias CEO Brian Magstadt CFO Baird 2019 Global Industrial Conference STRENGTH BUILT IN November 6, 2019 Safe Harbor This presentation 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," "esti ...