Simpson(US:SSD)2021-05-05 16:00Financial 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]