Simpson(US:SSD)2022-05-05 16:00Financial Performance - Net sales for the three months ended March 31, 2022, were $493,570,000, representing a 42% increase from $347,642,000 in the same period of 2021[12] - Gross profit for the same period was $236,781,000, up 46% from $162,282,000 year-over-year[12] - Net income increased to $94,576,000 for Q1 2022, compared to $50,387,000 in Q1 2021, marking an 88% growth[12] - Operating income for Q1 2022 was $124.44 million, compared to $68.38 million in Q1 2021, reflecting a significant operational improvement[76] - For the three months ended March 31, 2022, net income available to common stockholders was $94.6 million, compared to $50.4 million for the same period in 2021, representing an increase of 87.5%[40] - Basic net income per common share for Q1 2022 was $2.19, up from $1.16 in Q1 2021, reflecting an increase of 88.8%[40] Assets and Liabilities - Total assets as of March 31, 2022, reached $2,280,350,000, a significant increase from $1,294,727,000 at the end of 2021[10] - The company reported total liabilities of $1,048,539,000 as of March 31, 2022, compared to $280,218,000 at the end of 2021[10] - Total current assets increased to $1.79 billion in Q1 2022 from $819.00 million in Q1 2021, reflecting a 118% growth[10] - The company has a total outstanding debt balance of $700 million as of March 31, 2022, with no outstanding balances reported in the previous year[69] Cash and Liquidity - Cash and cash equivalents rose to $984,372,000 by March 31, 2022, compared to $257,428,000 a year earlier, indicating a substantial liquidity improvement[10] - Cash flows from operating activities provided $44,679,000 in Q1 2022, compared to $17,833,000 in Q1 2021, showing improved operational efficiency[17] - Cash dividends declared per common share increased to $0.25 in Q1 2022 from $0.23 in Q1 2021[12] - A quarterly cash dividend of $0.26 per share was declared on May 4, 2022, estimated to total $11.2 million[80] Stock and Shareholder Returns - The company repurchased common stock worth $21,281,000 during the quarter, reflecting a commitment to returning value to shareholders[17] - The Company repurchased 194,745 shares of its common stock at an average price of $109.28 per share, totaling $21.3 million, with approximately $78.7 million remaining under the $100 million repurchase authorization[42] - Stock-based compensation expense for Q1 2022 was $4.9 million, down from $6.5 million in Q1 2021, indicating a decrease of 24.6%[43] Sales Breakdown - Wood construction products accounted for 88% of total net sales for the three months ended March 31, 2022, compared to 87% in the same period of 2021[36] - Concrete construction products represented 12% of total net sales for both the three months ended March 31, 2022, and 2021[36] - North America segment sales reached $438.73 million, a 46% increase from $300.56 million in Q1 2021[76] Inventory and Receivables - Trade accounts receivable increased to $327.1 million as of March 31, 2022, from $232.6 million at the end of 2021, representing a 40.5% increase[46] - Total inventories amounted to $443.4 million as of March 31, 2022, compared to $296.6 million in the previous year, reflecting a 49.4% increase[47] Acquisitions and Investments - The company acquired ETANCO for $800 million on April 1, 2022, to enhance its product offerings in the fastener market[81] - The Company entered into an Amended and Restated Credit Facility providing a 5-year revolving credit facility of $450 million and a term loan facility of $450 million, borrowing $250 million and $450 million respectively for the ETANCO acquisition[12] Other Financial Metrics - Research and development expenses for Q1 2022 were $15.87 million, a 9% increase from $14.59 million in Q1 2021[12] - The estimated future amortization of definite-lived intangible assets is projected to be $24.4 million over the coming years[58] - The Company reported a loss on cash flow hedging relationships of $9.4 million for the three months ended March 31, 2022[52]