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 March 31, 2024, with the quarter ended March 31, 2023. 2024 First Quarter Financial Highlights Adjusted EBITDA is a non-GAAP financial measure. For a reconciliation of Adjusted EBITDA to U.S. GAAP ("GAAP") net income see the schedule titled "Reconciliation of Net Income to Adjusted EBITDA." 1 3 Exhibit 99.1 Press Release dated ...

Simpson Manufacturing Co., Inc. (SSD) is slated to report first-quarter 2024 results on Apr 22, after the closing bell.In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 16.3% and decreased 5.2% year over year. Net sales of $501.7 million increased 5.5% year over year.The company’s earnings topped analysts’ expectations in five of the trailing six quarters.The Trend in Estimate RevisionThe Zacks Consensus Estimate for Simpson Manufacturing’s first-quarter earnings is ...

PLEASANTON, Calif., April 8, 2024 /PRNewswire/ -- Simpson Manufacturing Co., Inc. (the "Company") (NYSE: SSD), an industry leader in engineered structural connectors and building solutions, announced today that it will report its financial results for the first quarter ended March 31, 2024 on Monday, April 22, 2024 at 4:15 p.m. Eastern Time. Michael Olosky, Simpson's President and Chief Executive Officer, and Brian Magstadt, Chief Financial Officer and Treasurer, will host a conference call that same day at ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Simpson Manufacturing designs and manufactures structural solutions for wood, concrete, and steel, expanding globally through product innovation and strategic acquisitions - The company is a leading manufacturer of structural solutions for wood, concrete, and steel connections, with a strong brand presence under the **Simpson Strong-Tie®** name[18](index=18&type=chunk) - The April 2022 acquisition of **ETANCO** significantly expanded the company's product portfolio and market presence across Europe[19](index=19&type=chunk) - Key growth strategies include diversifying product and software portfolios, leveraging industry relationships, and providing extensive engineering and field support[21](index=21&type=chunk) - The company's primary raw material is **steel**, with prices subject to market fluctuations, and it does not typically hedge against these changes[39](index=39&type=chunk)[40](index=40&type=chunk) Employee Headcount by Region (as of Dec 31, 2023) | Region | Employee Count | | :--- | :--- | | North America | 3,274 | | Europe | 1,555 | | Asia Pacific | 668 | | **Total** | **5,497** | - As of December 31, 2023, approximately **9%** of employees are represented by labor unions and covered by collective bargaining agreements[56](index=56&type=chunk) [Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from economic volatility, cyclical markets, raw material prices, cybersecurity, and international operations - The business is significantly dependent on the housing and residential construction markets, influenced by factors like interest rates and consumer confidence[64](index=64&type=chunk)[65](index=65&type=chunk) - A significant portion of net sales comes from a few large customers, where loss of any could materially reduce net sales and income[66](index=66&type=chunk) - **Steel** is the principal raw material, and its price volatility means the company may not be able to pass on all cost increases to customers[72](index=72&type=chunk)[73](index=73&type=chunk) - The company faces significant cybersecurity risks, including data breaches and system disruptions, and must comply with evolving data privacy laws[77](index=77&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - International operations, accounting for **26.4%** of consolidated sales in 2023, expose the company to currency fluctuations, complex laws, and political instability[94](index=94&type=chunk)[108](index=108&type=chunk) - The business is exposed to product liability claims and potential recalls due to the structural nature of its products, risking financial and reputational damage[110](index=110&type=chunk)[111](index=111&type=chunk)[113](index=113&type=chunk) [Unresolved Staff Comments](index=26&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[140](index=140&type=chunk) [Cybersecurity](index=26&type=section&id=Item%201C.%20Cybersecurity) The company employs a multi-layered "defense-in-depth" cybersecurity strategy, with Board oversight, and experienced no material financial impact from a 2023 incident - The company's cybersecurity risk management employs a "defense-in-depth" strategy to identify and manage threats[141](index=141&type=chunk) - On October 11, 2023, a cybersecurity incident caused approximately **three days** of business disruption but resulted in no material financial impact[145](index=145&type=chunk)[146](index=146&type=chunk) - The Audit and Finance Committee of the Board oversees the information security program and cybersecurity risks, receiving regular updates from management[148](index=148&type=chunk) [Properties](index=27&type=section&id=Item%202.%20Properties) The company's headquarters are in Pleasanton, California, operating 80 owned and leased facilities globally totaling approximately 6.4 million square feet Owned and Leased Facilities by Region (as of Feb 27, 2024) | Region | Number of Properties | Owned (sq. ft. in thousands) | Leased (sq. ft. in thousands) | Total (sq. ft. in thousands) | | :--- | :--- | :--- | :--- | :--- | | North America | 32 | 2,235 | 1,271 | 3,506 | | Europe | 38 | 1,886 | 668 | 2,554 | | Asia/Pacific | 9 | 175 | 41 | 216 | | Administrative and all other | 1 | 89 | — | 89 | | **Total** | **80** | **4,385** | **1,980** | **6,365** | [Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings, none of which are expected to have a material adverse effect on its financial condition or operations - The company is not currently a party to any legal proceedings expected to have a material adverse effect on its financial condition or results of operations[155](index=155&type=chunk) [Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[156](index=156&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%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock is listed on the NYSE under "SSD," with **$45.2 million** in dividends and **$50.0 million** in share repurchases in 2023, and a new **$100.0 million** repurchase program authorized for 2024 - The company's common stock is listed on the New York Stock Exchange (NYSE) under the trading symbol "**SSD**"[158](index=158&type=chunk) - In 2023, the company paid a total of **$45.2 million** in cash dividends, and a quarterly dividend of **$0.27 per share** was declared on January 19, 2024[159](index=159&type=chunk) Share Repurchases in Q4 2023 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Oct 1 - Oct 31, 2023 | 128,093 | $133.12 | | Nov 1 - Nov 30, 2023 | 232,746 | $141.62 | | Dec 1 - Dec 31, 2023 | 73 | $166.97 | - The Board of Directors authorized a new share repurchase program of up to **$100.0 million**, effective from January 1, 2024, through December 31, 2024[165](index=165&type=chunk) [Reserved](index=31&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, net sales increased **4.6%** to **$2.21 billion**, gross margin improved to **47.1%**, and net income rose to **$354.0 million**, with 2024 projections for operating margin between **20.0%** and **21.5%** [Overview](index=32&type=section&id=Overview) The company's strategy focuses on achieving above-market revenue growth through organic opportunities and strategic acquisitions, strengthening its culture, and leading in innovation - The company's core ambitions include achieving above-market growth relative to U.S. housing starts and maintaining a top-quartile operating income margin among its peers[174](index=174&type=chunk) - Key achievements in 2023 include the integration of **ETANCO**, expansion of product lines, a path-to-market shift, and the rollout of over **50** new products[174](index=174&type=chunk)[175](index=175&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) For 2023, net sales increased **4.6%** to **$2.21 billion**, gross margin expanded to **47.1%** due to lower material costs, and net income reached **$354.0 million** Consolidated Results of Operations (2023 vs. 2022) | (in thousands) | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $2,213,803 | $2,116,087 | 4.6% | | Gross profit | $1,043,755 | $941,293 | 10.9% | | *Gross Margin* | *47.1%* | *44.5%* | *+260 bps* | | Income from operations | $475,149 | $459,067 | 3.5% | | *Operating Margin* | *21.4%* | *21.8%* | *-40 bps* | | Net income | $353,987 | $333,995 | 6.0% | | Diluted EPS | $8.26 | $7.76 | 6.4% | - The increase in gross margin to **47.1%** was primarily due to lower material costs, with the prior year including a **$13.6 million** inventory fair-value adjustment from the **ETANCO** acquisition[188](index=188&type=chunk) - Operating expenses increased significantly year-over-year: R&D by **34.8%**, Selling by **20.4%**, and General & Administrative by **17.3%**, mainly due to higher personnel costs and strategic investments[189](index=189&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk) [Business Outlook](index=34&type=section&id=Business%20Outlook) For fiscal year 2024, the company projects an operating margin between **20.0%** and **21.5%**, an effective tax rate of **25.0%** to **26.0%**, and capital expenditures of approximately **$200.0 million** - 2024 Operating margin is estimated to be in the range of **20.0%** to **21.5%**[183](index=183&type=chunk) - 2024 Effective tax rate is estimated to be between **25.0%** and **26.0%**[183](index=183&type=chunk) - 2024 Capital expenditures are estimated to be approximately **$200.0 million**, including **$120.0 million** for facility expansions in Ohio and Tennessee[183](index=183&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended 2023 with **$429.8 million** in cash, generated **$427.0 million** from operations, and returned **$95.2 million** to stockholders through repurchases and dividends Cash Flow Summary (in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash from Operating activities | $427,022 | $399,821 | | Net cash used in Investing activities | ($103,251) | ($870,244) | | Net cash (used in) from Financing activities | ($199,034) | $465,526 | - As of December 31, 2023, the company had **$75.0 million** in borrowings under its revolving credit facility and **$410.6 million** under its term loan, with **$375.0 million** available under the revolver[220](index=220&type=chunk) - In 2023, the company returned **$95.2 million** to stockholders through **$50.0 million** in share repurchases and **$45.2 million** in dividends[226](index=226&type=chunk)[228](index=228&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages foreign exchange and interest rate risks using derivatives but does not hedge commodity price risk for steel, its primary raw material - The company manages foreign exchange risk through foreign currency forward contracts, particularly for the **Euro** and **Chinese Yuan**[236](index=236&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk) - Interest rate risk on variable-rate debt is managed by using interest rate swap agreements to convert variable rates to fixed rates[240](index=240&type=chunk)[241](index=241&type=chunk) - The company is exposed to commodity price risk from **steel**, its main raw material, but does not use derivative or hedging instruments to manage this risk[242](index=242&type=chunk) [Consolidated Financial Statements and Supplementary Data](index=44&type=section&id=Item%208.%20Consolidated%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2023, 2022, and 2021, including the independent auditor's unqualified opinion and detailed notes [Consolidated Balance Sheets](index=47&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2023, total assets increased to **$2.70 billion**, driven by higher cash and property, while total liabilities decreased to **$1.02 billion** due to reduced long-term debt Key Balance Sheet Items (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $429,822 | $300,742 | | Total current assets | $1,312,441 | $1,179,250 | | Total assets | $2,704,724 | $2,503,971 | | Long-term debt, net | $458,791 | $554,539 | | Total liabilities | $1,024,978 | $1,090,592 | | Total stockholders' equity | $1,679,746 | $1,413,379 | [Consolidated Statements of Operations](index=48&type=section&id=Consolidated%20Statements%20of%20Operations) For 2023, net sales reached **$2.21 billion**, gross profit was **$1.04 billion** (47.1% gross margin), and net income was **$354.0 million**, or **$8.26** per diluted share Key Income Statement Data (in thousands, except per share data) | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net sales | $2,213,803 | $2,116,087 | $1,573,217 | | Gross profit | $1,043,755 | $941,293 | $755,030 | | Income from operations | $475,149 | $459,067 | $367,793 | | Net income | $353,987 | $333,995 | $266,447 | | Diluted EPS | $8.26 | $7.76 | $6.12 | [Consolidated Statements of Cash Flows](index=50&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In 2023, the company generated **$427.0 million** from operations, used **$103.3 million** in investing, and **$199.0 million** in financing, resulting in a **$129.1 million** increase in cash Summary of Cash Flows (in thousands) | Activity | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $427,022 | $399,821 | $151,295 | | Net cash used in investing activities | ($103,251) | ($870,244) | ($58,805) | | Net cash (used in) provided by financing activities | ($199,034) | $465,526 | ($71,616) | | Net increase (decrease) in cash | $129,080 | ($413) | $26,516 | [Notes to Consolidated Financial Statements](index=51&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes include the **$805.4 million** **ETANCO** acquisition, North America's leading sales contribution, and **85%** of 2023 sales from wood construction products - On April 1, 2022, the company acquired **ETANCO** for a total purchase consideration of **$805.4 million**, net of cash acquired, financed with cash on hand and borrowings[329](index=329&type=chunk) Net Sales by Product Group (in thousands) | Product Group | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Wood Construction | $1,881,700 | $1,831,580 | $1,361,113 | | Concrete Construction | $320,500 | $282,205 | $210,780 | | Other | $11,603 | $2,302 | $1,324 | | **Total** | **$2,213,803** | **$2,116,087** | **$1,573,217** | Segment Performance - 2023 (in thousands) | Segment | Net Sales | Income from Operations | | :--- | :--- | :--- | | North America | $1,716,422 | $473,229 | | Europe | $480,756 | $45,998 | | Asia/Pacific | $16,625 | $535 | - As of December 31, 2023, the company had **$485.7 million** outstanding under its Amended and Restated Credit Facility, consisting of a term loan and revolver borrowings[401](index=401&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=86&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[435](index=435&type=chunk) [Controls and Procedures](index=86&type=section&id=Item%209A.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with no material changes identified - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[436](index=436&type=chunk) - Management assessed internal control over financial reporting as effective as of December 31, 2023, based on the **COSO** framework[438](index=438&type=chunk) [Other Information](index=86&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[441](index=441&type=chunk) [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=86&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20That%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[442](index=442&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Compensation, and Principal Accounting Fees](index=87&type=section&id=Items%2010-14) Information for Items 10 through 14, covering governance, compensation, and accounting fees, is incorporated by reference from the company's 2024 Proxy Statement - Information for Items **10**, **11**, **12**, **13**, and **14** will be contained in the company's **2024 Proxy Statement** and is incorporated herein by reference[444](index=444&type=chunk)[445](index=445&type=chunk)[446](index=446&type=chunk)[447](index=447&type=chunk)[448](index=448&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=87&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all consolidated financial statements, schedules, and exhibits filed as part of the Annual Report on Form 10-K, including corporate governance documents and certifications - This section contains a list of all financial statements, schedules, and exhibits filed with the **Form 10-K**[450](index=450&type=chunk)[452](index=452&type=chunk) [Form 10-K Summary](index=91&type=section&id=Item%2016.%20Form%2010-K%20Summary) No summary is provided for this item - None[457](index=457&type=chunk)

Key PointsSimpson Manufacturing stock doubled in 2023 and is on track to double again over the next year or two.Industry-leading growth, investment in expansion and capital returns are driving the story. Analysts support the market and are leading it higher. 5 stocks we like better than Simpson ManufacturingSimpson Manufacturing’s NYSE: SSD share price more than doubled in 2023 and is on track to double again over the coming years. The company is supported by a double tailwind with favorable housing market ...

Financial Data and Key Metrics Changes - In Q4 2023, net sales totaled $501.7 million, reflecting a 5.5% increase over Q4 2022 [5][24] - Annual net sales reached $2.2 billion, with a 21.5% operating income margin and earnings per diluted share of $8.26 [11][35] - Consolidated gross margin improved to 47.1% from 44.5% in the previous year, driven by lower raw material costs and productivity improvements [45][59] Business Line Data and Key Metrics Changes - In North America, net sales increased 5.3% to $387.8 million, with wood product volume up 10.2% and concrete product volume up 7.5% [24][42] - In Europe, annual net sales were $480.8 million, a 20.1% increase over 2022, with a gross margin of 34.2% [6][55] - The OEM market saw low single-digit volume improvements, while national retail was slightly down [13][42] Market Data and Key Metrics Changes - U.S. housing starts finished below 2022 levels, but a shortage of approximately 2 million homes is expected to support market attractiveness [5][22] - The European market faced challenges, yet ETANCO sales remained stable compared to 2022 levels [6][30] Company Strategy and Development Direction - The company aims to invest in growth opportunities, including new product launches and market penetration, with a focus on innovation and customer service [4][20] - Strategic investments are expected to accelerate compounded annual growth rates above market levels, targeting a top quartile profitability [51][52] - The company is shifting away from two-step distribution to enhance direct relationships with distribution partners [46][120] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging first half of 2024, with expectations for low single-digit growth overall [22][90] - The company remains confident in its ability to outperform the market, having historically achieved growth above market rates [92][91] - There is a commitment to maintaining a strong balance sheet and liquidity to support growth strategies [23][31] Other Important Information - The company generated strong cash from operations of $429.9 million in 2023, financing significant capital expenditures and share repurchases [51][84] - Capital expenditures for 2024 are estimated at approximately $200 million, including expansions in Ohio and Tennessee [65][138] Q&A Session Summary Question: Outlook for 2024 and growth expectations - Management expects flat to positive growth in the first half of 2024, with a stronger second half anticipated [37][90] Question: SG&A expenses and growth expectations - SG&A growth is expected to align with revenue growth, with a focus on maintaining investments for long-term growth [71][77] Question: Gross margin expectations and cost drivers - A modest pullback in gross margin is anticipated for 2024 due to new capacity and increased labor and distribution costs [113][106] Question: Opportunities for further market penetration - Management sees solid growth opportunities across all market segments, with a focus on enhancing customer relationships and service [92][120] Question: ETANCO business outlook - The ETANCO segment is expected to grow due to increasing energy regulations, with a reported growth of 10-15% over the prior year [127][128]

PLEASANTON, Calif., Feb. 5, 2024 /PRNewswire/ --  Fourth quarter net sales of $501.7 million increased 5.5% year-over-year 2023 net sales of $2.2 billion increased 4.6% year-over-year 2023 net income per diluted share of $8.26 increased 6.5% year-over-year Declared a $0.27 per share dividend Repurchased $50.0 million in common stock in 2023 Simpson Manufacturing Co., Inc. (the "Company") (NYSE: SSD), an industry leader in engineered structural connectors and building solutions, today announced its financi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-13429 Simpson Manufacturing Co., Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of ...

Financial Data and Key Metrics Changes - The company reported consolidated net sales of $580.1 million for Q3 2023, an increase of 4.8% compared to Q3 2022 [23][36] - Gross margin improved to 48.8% from 44.2% year-over-year, reflecting lower raw material costs [26][63] - Net income totaled $104.2 million, or $2.43 per fully diluted share, compared to $88.2 million, or $2.06 per fully diluted share in the prior year [36][37] Business Line Data and Key Metrics Changes - North American net sales increased 4.4% to $456.8 million, driven by higher sales volumes [23][33] - In Europe, net sales rose 6.4% to $119 million, primarily due to foreign currency translation effects [14][25] - The gross margin for wood products in Q3 was 49.1%, up from 44.1% in the prior year, while concrete products saw a gross margin of 47.9%, up from 43.8% [15][63] Market Data and Key Metrics Changes - North American volumes increased approximately 7%, while European sales were relatively flat year-over-year on a local currency basis [23][25] - The residential housing market experienced a decline due to lower housing starts, with expectations of a shortage of approximately 2 million homes in the U.S. [24][6] - The commercial market saw record revenue from concrete strengthening solutions due to an alliance with Structural Technologies [7][73] Company Strategy and Development Direction - The company aims to continue outperforming the market through a diverse product portfolio, innovation, and strong relationships with industry professionals [5][29] - Capital allocation priorities focus on organic growth, tuck-in M&A, and returning value to shareholders through dividends and share repurchases [10][19] - The company is committed to enhancing its operational efficiency and customer service standards while integrating ETANCO [68][117] Management's Comments on Operating Environment and Future Outlook - Management anticipates some downward pressure in Q4 2023 results due to the current interest rate environment affecting the housing market [131] - The company expects the first half of 2024 to be soft, with a potential recovery in the second half depending on economic conditions [71][85] - Management remains optimistic about long-term growth opportunities despite short-term challenges [12][29] Other Important Information - The company generated cash flow from operations of $204.6 million, compared to $124.9 million in the prior year [37] - The company is evaluating potential M&A opportunities, primarily smaller ones to enhance product lines and manufacturing efficiencies [11][117] - A cybersecurity incident occurred, but operations were largely restored within a week, minimizing impact on customer service [31][125] Q&A Session Summary Question: Insights on North American housing operations and market growth expectations - Management noted that housing starts are expected to finish the year down 12%, with some softness observed in October [43][71] Question: Performance in targeted markets like commercial and national retail - Revenue growth was reported across all five market segments, with significant investments in national retail yielding positive results [46][47] Question: Guidance on gross margin expectations for 2024 - Management discussed various factors affecting gross margin, including steel costs and seasonal impacts [48][49] Question: SG&A expenses management in a tougher environment - The company is focused on balancing growth investments with managing SG&A expenses to maintain top quartile performance [54][56] Question: Current opportunities in component manufacturing - Management highlighted ongoing efforts to enhance service and support in the component manufacturing market [86][87] Question: Capital allocation strategy amidst uncertainty - The company plans to balance debt repayment with potential share repurchases and investments in growth opportunities [126][127]

Sales Performance - The Company reported a 1.0% increase in wood construction product sales for Q2 2023 compared to Q2 2022, while concrete construction product sales increased by 8.2% during the same period[118]. - Europe sales decreased by 4.1% for Q2 2023 compared to Q2 2022, with wood construction product sales down 4.0% and concrete construction product sales down 4.2%[119]. - Net sales increased 0.7% to $597.6 million from $593.2 million, driven by higher sales volumes in North America, offsetting lower sales in Europe[123]. - Net sales for the first six months of 2023 increased 4.2% to $1,132.0 million, supported by ETANCO's additional quarter of sales[137]. - Net sales for the six months ended June 30, 2023, totaled $1,132.0 million, a 4.2% increase from $1,086.8 million in 2022, with significant growth in Europe[145]. Financial Metrics - The Company anticipates operating margin for fiscal 2023 to be in the range of 20.5% to 21.5%[122]. - Gross profit rose 10.8% to $287.5 million, with a consolidated gross margin of 48.1% compared to 43.7% last year[124]. - Gross profit increased by 8.9% to $540.3 million from $496.1 million, with gross margins rising to 47.7% from 45.6%[138]. - Consolidated net income was $195.2 million compared to $188.1 million, with diluted earnings per share rising to $4.55 from $4.34[144]. - The effective income tax rate decreased to 25.9% from 26.8%[128]. Expenses - Research and development expenses increased 27.1% to $21.5 million, primarily due to higher personnel costs and variable compensation[125]. - Selling expenses grew 11.9% to $50.4 million, mainly due to increased variable compensation and personnel costs[125]. - General and administrative expenses increased 17.7% to $68.8 million, driven by higher personnel costs and computer/software expenses[126]. - Research and development and engineering expenses rose by 28.9% to $42.3 million from $32.8 million, driven by higher personnel costs and variable compensation[139]. - Selling expenses increased to $99.1 million from $81.9 million, primarily due to higher personnel costs and variable compensation[140]. - General and administrative expenses grew to $132.5 million from $112.2 million, mainly due to increased personnel costs and depreciation[141]. Capital Expenditures - Capital expenditures for the fiscal year are estimated to be between $105.0 million and $115.0 million[122]. - Capital expenditures for the six months ended June 30, 2023, were $37.9 million, with total approved capital spending for 2023 expected to be between $105.0 million and $115.0 million[158]. Strategic Initiatives - The Company has identified opportunities to expand U.S. operations, which are expected to improve service and production efficiency[113]. - The integration of ETANCO is expected to incur additional costs in 2023, but the Company remains optimistic about capturing synergies in the long term[122]. - The Company expects to incur additional costs in 2023 for the integration of ETANCO, which is anticipated to provide long-term benefits despite short-term challenges[122]. - The Company aims to continue above-market growth relative to U.S. housing starts in fiscal 2023 and beyond[112]. - The Company has realigned its sales teams to focus on five end-use markets, leading to new customer and project wins[113]. Market Conditions - The decline in demand for housing starts is attributed to rising interest rates, inflation, and supply-chain factors, although multifamily housing construction has been less affected[115]. Dividend - The company declared a quarterly cash dividend of $0.27 per share, payable on October 26, 2023[160]. Steel Price Risk - The cost of steel increased in 2021 compared to historical levels due to a worldwide raw material shortage stemming from the COVID-19 pandemic[168]. - Steel price is subject to fluctuations across broad spectrums of the steel market, impacting variable costs[168]. - The company does not use any derivative or hedging instruments to manage steel price risk[168]. - Historically, the company has mitigated increased costs through price increases, but future success in this area is uncertain[168]. - Potential inability to mitigate increased steel costs could lead to a decline in operating margins[168].