PLEASANTON, Calif., Feb. 2 /PRNewswire-FirstCall/ -- Simpson
Manufacturing Co., Inc. (the "Company") announced today that its
fourth quarter 2009 net sales decreased 11.4% to $132.6 million
compared to net sales of $149.8 million for the fourth quarter of
2008. The Company had a net loss of $2.8 million for the fourth
quarter of 2009 compared to net income of $1.8 million for the
fourth quarter of 2008. Diluted net loss per common share was $0.06
for the fourth quarter of 2009 compared to diluted net income per
common share of $0.04 for the fourth quarter of 2008. In 2009, net
sales decreased 22.7% to $585.1 million compared to net sales of
$756.5 million for 2008. Net income was $12.2 million for 2009
compared to net income of $53.9 million for 2008. Diluted net
income per common share was $0.25 for 2009 compared to $1.10 for
2008. In the fourth quarter of 2009, sales declined throughout the
United States. Sales increased overall in Canada and Europe. A
significant portion of the increase in Europe was in France, which
was up primarily due to the acquisition of Agence Internationale
Commerciale et Industrielle, S.A.S. ("Aginco") in April 2009.
Simpson Strong-Tie's fourth quarter sales decreased 7.5% from the
same quarter last year, while Simpson Dura-Vent's sales decreased
31.0%. Simpson Strong-Tie's sales to contractor distributors and
dealer distributors decreased significantly as home-building
activity, and general economic conditions, remained weak. Sales to
home centers also decreased. Sales decreased across all of Simpson
Strong-Tie's major product lines, particularly those used in new
home construction. Simpson Dura-Vent's sales decreased across most
of its product lines, with the exception of direct vent products.
Income from operations decreased from $4.5 million in the fourth
quarter of 2008 to a loss of $1.0 million in the fourth quarter of
2009. Gross margins decreased from 35.1% in the fourth quarter of
2008 to 30.7% in the fourth quarter of 2009. The decrease in gross
margins was primarily due to higher manufacturing costs, including
higher costs of material and labor. The price of steel, the
Company's primary raw material, increased in the second half of
2009. The Company expects steel prices to continue to increase into
2010 as demand returns to the market. The Company's inventories
decreased 35.0% from $251.9 million at December 31, 2008, to $163.8
million at December 31, 2009. Selling expense decreased 9.1% from
$17.4 million in the fourth quarter of 2008 to $15.9 million in the
fourth quarter of 2009, which resulted primarily from a $0.9
million decrease in commissions paid to selling agents, primarily
related to sales of Simpson Dura-Vent products, and a $0.7 million
decrease in expenses associated with sales and marketing personnel,
most of which was related to cost-cutting measures. General and
administrative expense decreased 10.6% from $22.7 million in the
fourth quarter of 2008 to $20.3 million in the fourth quarter of
2009. This decrease resulted from several factors, including a $2.3
million decrease in the provision for bad debt, a $0.7 million
decrease in administrative personnel expenses, related in part to
cost-cutting measures, partly offset by a $0.5 million increase in
depreciation charges. Interest income decreased primarily due to
lower interest rates. The provision for income taxes is a charge
despite the loss before taxes primarily due to the valuation
allowances taken on foreign losses. In 2009, sales declined
throughout the United States. The western and southeastern regions
had the largest decreases in sales. Sales decreased overall during
the year in Europe and Canada. Simpson Strong-Tie's sales for 2009
decreased 22.2% from 2008, while Simpson Dura-Vent's sales
decreased 26.6%. Simpson Strong-Tie's sales to contractor
distributors and dealer distributors decreased as a result of the
weakness in the U.S. housing market. Sales to home centers also
decreased. Sales decreased across all of Simpson Strong-Tie's major
product lines, particularly those used in new home construction.
Sales of Simpson Dura-Vent's Direct-Vent and gas vent, hearth and
pellet vent product lines decreased, while sales of special gas
vent and relining products increased, primarily as a result of the
acquisition of ProTech Systems, Inc. in June 2008. Income from
operations decreased 67.3% from $87.5 million in 2008 to $28.6
million in 2009. Gross margins decreased from 37.3% in 2008 to
33.1% in 2009. The decrease in gross margins was primarily due to
reduced absorption of fixed overhead, as a result of lower
production volumes, as well as higher manufacturing costs,
including higher costs of material and labor. Research and
development expense decreased 6.3% from $21.3 million in 2008 to
$20.0 million in 2009, primarily due to a $0.9 million decrease in
professional service fees and a $0.8 million decrease in personnel
expenses, partly offset by various other items. Selling expense
decreased 20.3% from $80.7 million in 2008 to $64.3 million in
2009. This decrease resulted primarily from a $9.3 million decrease
in expenses associated with sales and marketing personnel, most of
which was related to cost-cutting measures, a $4.3 million decrease
in promotional expenditures and a $1.9 million decrease in
commissions paid to selling agents. General and administrative
expense decreased 11.1% from $89.9 million in 2008 to $79.9 million
in 2009. This decrease resulted primarily from a $6.1 million
decrease in cash profit sharing, a $2.4 million decrease in
administrative personnel expenses, related in part to cost-cutting
measures, a $1.6 million decrease in legal and professional service
expenses and a $1.0 million decrease in the provision for bad debt,
partly offset by a $1.1 million increase in amortization of
intangible assets, primarily related to the businesses acquired
since June 2008. Interest income decreased from $2.6 million in
2008 to $0.1 million in 2009, primarily due to lower interest
rates. The effective tax rate was 57.1% in 2009, up from 39.8% in
2008. The effective tax rate is higher than the statutory rate
primarily due to the valuation allowances taken on foreign losses,
differences between the U.S. Statutory tax rate and the local tax
rate in countries where the Company operates and a reduced benefit
from the reduction or loss of enterprise zone tax credits at two of
the Company's facilities in California. At its meeting on February
2, 2010, the Company's Board of Directors declared a cash dividend
of $0.10 per share. The record date for the dividend will be April
8, 2010, and it will be paid on April 29, 2010. Investors, analysts
and other interested parties are invited to join the Company's
conference call on Wednesday, February 3, 2010, at 6:00 am Pacific
Time. To participate, callers may dial 800-894-5910. The call will
be webcast simultaneously and will be available for one month
through a link on the Company's website at
http://www.simpsonmfg.com/. This document contains forward-looking
statements, based on numerous assumptions and subject to risks and
uncertainties. Although the Company believes that the
forward-looking statements are reasonable, it does not and cannot
give any assurance that its beliefs and expectations will prove to
be correct. Many factors could significantly affect the Company's
operations and cause the Company's actual results to differ
substantially from the Company's expectations. Those factors
include, but are not limited to: (i) general economic and
construction business conditions; (ii) customer acceptance of the
Company's products; (iii) relationships with key customers; (iv)
materials and manufacturing costs; (v) the financial condition of
customers, competitors and suppliers; (vi) technological
developments; (vii) increased competition; (viii) changes in
capital and credit market conditions; (ix) governmental and
business conditions in countries where the Company's products are
manufactured and sold; (x) changes in trade regulations; (xi) the
effect of acquisition activity; (xii) changes in the Company's
plans, strategies, objectives, expectations or intentions; and
(xiii) other risks and uncertainties indicated from time to time in
the Company's filings with the U.S. Securities and Exchange
Commission. Actual results might differ materially from results
suggested by any forward-looking statements in this report. The
Company does not have an obligation to publicly update any
forward-looking statements, whether as a result of the receipt of
new information, the occurrence of future events or otherwise. The
Company's results of operations for the three and twelve months
ended December 31, 2009 and 2008 (unaudited), are as follows: Three
Months Twelve Months Ended December 31, Ended December 31, (Amounts
in thousands, except per ------------------ ------------------
share data) 2009 2008 2009 2008 ---- ---- ---- ---- Net sales
$132,624 $149,756 $585,070 $756,499 Cost of sales 91,902 97,251
391,496 474,190 ------ ------ ------- ------- Gross profit 40,722
52,505 193,574 282,309 ------ ------ ------- ------- Research and
development and engineering expenses 4,996 4,951 19,993 21,327
Selling expenses 15,854 17,439 64,294 80,703 General and
administrative expenses 20,288 22,684 79,880 89,897 Impairment of
goodwill - 2,964 - 2,964 Loss (gain) or sale of assets 561 (66) 797
(124) --- --- --- ---- Income (loss) from operations (977) 4,533
28,610 87,542 Income (loss) in equity method investment, before tax
20 (486) (194) (486) Interest income, net 11 383 75 2,596 -- --- --
----- Income (loss) before taxes (946) 4,430 28,491 89,652
Provision for income taxes 1,869 2,591 16,274 35,718 ----- -----
------ ------ Net income (loss) $(2,815) $1,839 $12,217 $53,934
======= ====== ======= ======= Net income (loss) per share: Basic
$(0.06) $0.04 $0.25 $1.11 Diluted (0.06) 0.04 0.25 1.10 Weighted
average shares outstanding: Basic 49,337 48,763 49,135 48,636
Diluted 49,337 49,064 49,256 48,970 Cash dividend declared per
common share $0.10 $0.10 $0.40 $0.40 Other data: Depreciation,
amortization and impairment of goodwill $7,295 $10,539 $29,387
$33,173 Pre-tax stock compensation expense 646 1,107 2,200 3,823
The Company's financial position as of December 31, 2009 and 2008
(unaudited), is as follows: December 31, ----------------------
(Amounts in thousands) 2009 2008 ---- ---- Cash and short-term
investments $250,381 $170,750 Trade accounts receivable, net 77,317
76,005 Inventories 163,754 251,878 Assets held for sale 7,887 8,387
Other current assets 30,736 20,577 ------ ------ Total current
assets 530,075 527,597 Property, plant and equipment, net 187,814
193,318 Goodwill 81,626 68,619 Other noncurrent assets 44,290
40,666 ------ ------ Total assets $843,805 $830,200 ========
======== Trade accounts payable $28,462 $21,675 Line of credit and
current portion of long-term debt - 26 Other current liabilities
43,006 50,193 ------ ------ Total current liabilities 71,468 71,894
Long-term liabilities 8,553 9,280 Stockholders' equity 763,784
749,026 ------- ------- Total liabilities and stockholders' equity
$843,805 $830,200 ======== ======== Simpson Manufacturing Co.,
Inc., headquartered in Pleasanton, California, through its
subsidiary, Simpson Strong-Tie Company Inc., designs, engineers and
is a leading manufacturer of wood-to-wood, wood-to-concrete and
wood-to-masonry connectors and fastening systems, stainless steel
fasteners and pre-fabricated shearwalls. Simpson Strong-Tie also
offers a full line of adhesives, mechanical anchors and powder
actuated tools for concrete, masonry and steel. The Company's other
subsidiary, Simpson Dura-Vent Company, Inc., designs, engineers and
manufactures venting systems for gas and wood burning appliances.
The Company's common stock trades on the New York Stock Exchange
under the symbol "SSD." For further information, contact Barclay
Simpson at (925) 560-9032. DATASOURCE: Simpson Manufacturing Co.,
Inc. CONTACT: Barclay Simpson of Simpson Manufacturing Co., Inc.,
+1-925-560-9032 Web Site: http://www.simpsonmfg.com/
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