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 ...

Simpson Manufacturing Co., Inc. (NYSE:SSD) Q3 2019 Earnings Conference Call October 28, 2019 5:00 PM ET Company Participants Kim Orlando - Investor Relations Karen Colonias - President and Chief Executive Officer Brian Magstadt - Chief Financial Officer Conference Call Participants Daniel Moore - CJS Securities Tim Wojs - Baird Steve Chercover - D.A. Davidson Julio Romero - Sidoti Operator Greetings. Welcome to Simpson Manufacturing Company Third Quarter 2019 Earnings Conference Call. [Operator Instructions ...

Simpson Manufacturing Co., Inc. (NYSE:SSD) Q2 2019 Results Conference Call July 29, 2019 5:00 PM ET Company Participants Kim Orlando - ADDO Investor Relations Karen Colonias - President and Chief Executive Officer Brian Magstadt - Chief Financial Officer Conference Call Participants Daniel Moore - CJS Securities Tim Wojs - Baird Steve Chercover - DA Davidson Julio Romero - Sidoti & Company Operator Greetings, welcome to the Simpson Manufacturing Company Second Quarter 2019 Earnings Conference Call. At this ...

Simpson Manufacturing Co., Inc. (NYSE:SSD) Q1 2019 Earnings Conference Call April 29, 2019 5:00 PM ET Company Participants Kim Orlando - Investor Relations Karen Colonias - President & Chief Executive Officer Brian Magstadt - Chief Financial Officer Conference Call Participants Daniel Moore - CJS Securities Tim Wojs - Baird Steven Chercover - D. A. Davidson Julio Romero - Sidoti & Company Operator Greetings, welcome to the Simpson Manufacturing Company Incorporate First Quarter 2019 Earnings Conference Call ...