PLEASANTON, Calif.,
April 28, 2011 /PRNewswire/ --
Simpson Manufacturing Co., Inc. (NYSE: SSD) (the "Company") today
announced its first quarter 2011 results. The Company's results of
operations reflect the reclassification of its venting operation to
discontinued operations for the first quarter of 2010. The
following discussion refers only to continuing operations unless
otherwise indicated.
For the first quarter of 2011, net sales increased 7.0% to
$132.5 million compared to net sales
of $123.8 million for the first
quarter of 2010. The Company had income, net of tax, of
$7.1 million for the first quarter of
2011 compared to income, net of tax, of $9.8
million for the first quarter of 2010. Diluted income, net
of tax, per common share was $0.14
for the first quarter of 2011 compared to diluted income, net of
tax, of $0.20 per common share for
the first quarter of 2010.
In the first quarter of 2011, sales increased throughout most of
North America and increased
significantly in Europe. Sales
increased in the United States
with increases in California, the
midwestern, southeastern and northeastern regions as compared to
the first quarter of 2010, partly offset by decreases in the
western region excluding California. Sales in Canada decreased compared to the first quarter
of 2010. Sales in Asia and
Australia, although relatively
small, decreased as compared to the first quarter of 2010. Sales to
contractor distributors, dealer distributors, lumber dealers and
home centers increased, although economic conditions remain
challenging. The sales increase was broad-based across most of the
Company's major product lines as compared to the first quarter of
2010. Sales of anchor products and shearwalls also increased over
the same period.
Gross margins decreased slightly from 43.6% in the first quarter
of 2010 to 43.0% in the first quarter of 2011, primarily due to
higher factory overhead costs. Steel prices increased from their
levels in mid-2010, as steel mills have been raising prices as
demand returns to global steel markets. The Company expects steel
prices to remain at current levels or to increase throughout 2011.
The Company's inventories increased 9.6% from $152.3 million at December
31, 2010, to $167.0 million at
March 31, 2011.
Research and development and engineering expense increased 26.4%
from $4.7 million in the first
quarter of 2010 to $6.0 million in
the first quarter of 2011, including increases in personnel costs
of $0.8 million, professional
services of $0.3 million and cash
profit sharing of $0.2 million.
Selling expense increased 14.8% from $14.9 million in the first quarter of 2010 to
$17.1 million in the first quarter of
2011, including increases in personnel costs of $1.3 million, cash profit sharing and commissions
of $0.5 million, and promotional
costs of $0.2 million. General and
administrative expense increased 27.7% from $16.9 million in the first quarter of 2010 to
$21.6 million in the first quarter of
2011, including increases in cash profit sharing of $1.1 million, stock option expense of
$0.8 million, personnel costs of
$0.8 million, professional fees of
$0.7 million, provision for bad debt
of $0.5 million and various other
items. The effective tax rate was 42.6% in the first quarter of
2011, as compared to 42.0% in the first quarter of 2010.
At its meeting on April 26, 2011,
the Company's Board of Directors declared a cash dividend of
$0.125 per share. The record date for
the dividend will be July 7, 2011,
and it will be paid on July 28,
2011.
Investors, analysts and other interested parties are invited to
join the Company's conference call on Friday, April 29, 2011, at 6:00 am Pacific Time. To participate, callers may
dial 800-862-9098. The call will be webcast simultaneously as well
as being available for one month through a link on the Company's
website at 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 months ended
March 31, 2011 and 2010 (unaudited),
are as follows:
|
|
Three
Months
|
|
|
|
Ended March
31,
|
|
(Amounts in thousands, except
per share data)
|
2011
|
2010
|
|
|
Net sales
|
$132,536
|
$123,820
|
|
|
Cost of sales
|
75,588
|
69,793
|
|
|
|
Gross profit
|
56,948
|
54,027
|
|
|
|
|
|
|
|
Research and development and
engineering expenses
|
5,994
|
4,742
|
|
|
Selling expenses
|
17,075
|
14,872
|
|
|
General and administrative
expenses
|
21,621
|
16,933
|
|
|
Loss (gain) on sale of
assets
|
(25)
|
388
|
|
|
|
|
|
|
|
|
Income from
operations
|
12,283
|
17,092
|
|
|
|
|
|
|
|
Loss in equity method
investment, before tax
|
(14)
|
(144)
|
|
|
Interest income, net
|
72
|
12
|
|
|
|
Income from continuing
operations before taxes
|
12,341
|
16,960
|
|
|
|
|
|
|
|
Provision for income taxes from
continuing operations
|
5,263
|
7,130
|
|
|
|
Income from continuing
operations, net of tax
|
7,078
|
9,830
|
|
|
|
|
|
|
Discontinued
operations:
|
|
|
|
|
Loss from discontinued
operations, net of tax
|
–
|
(631)
|
|
|
|
|
|
|
Net income
|
$7,078
|
$9,199
|
|
|
|
|
|
|
|
Earnings (loss) per common
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
Continuing operations
|
$0.14
|
$0.20
|
|
|
|
|
Discontinued
operations
|
–
|
(0.01)
|
|
|
|
|
Net income
|
0.14
|
0.19
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
Continuing operations
|
$0.14
|
$0.20
|
|
|
|
|
Discontinued
operations
|
–
|
(0.01)
|
|
|
|
|
Net income
|
0.14
|
0.19
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
Basic
|
50,107
|
49,388
|
|
|
|
Diluted
|
50,165
|
49,520
|
|
|
|
|
|
|
|
Other data:
|
|
|
|
|
|
Continuing operations
|
|
|
|
|
|
|
Depreciation and
amortization
|
$4,972
|
$5,421
|
|
|
|
|
Pre-tax stock compensation
expense
|
1,521
|
470
|
|
|
|
|
|
|
|
Cash dividend declared per
common share
|
$0.125
|
$0.10
|
|
|
|
|
|
|
|
The Company's financial position (unaudited) as of March 31, 2011 and 2010, and December 31, 2010, is as follows:
|
|
March
31,
|
December
31,
|
|
(Amounts in
thousands)
|
2011
|
2010
|
2010
|
|
|
Cash and short-term
investments
|
$301,231
|
$202,843
|
$335,049
|
|
|
Trade accounts receivable,
net
|
91,076
|
93,030
|
68,256
|
|
|
Inventories
|
166,966
|
180,684
|
152,297
|
|
|
Assets held for sale
|
9,148
|
7,887
|
10,787
|
|
|
Other current assets
|
22,287
|
26,711
|
24,867
|
|
|
|
Total current assets
|
590,708
|
511,155
|
591,256
|
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
184,606
|
200,975
|
177,072
|
|
|
Goodwill
|
71,338
|
79,608
|
70,069
|
|
|
Other noncurrent
assets
|
36,518
|
44,215
|
36,312
|
|
|
|
Total assets
|
$883,170
|
$835,953
|
$874,709
|
|
|
|
|
|
|
|
|
Trade accounts
payable
|
$29,822
|
$25,606
|
$35,164
|
|
|
Other current
liabilities
|
48,450
|
39,288
|
44,452
|
|
|
|
Total current
liabilities
|
78,272
|
64,894
|
79,616
|
|
|
|
|
|
|
|
|
Other long-term
liabilities
|
7,833
|
8,924
|
7,300
|
|
|
Stockholders' equity
|
797,065
|
762,135
|
787,793
|
|
|
|
Total liabilities and
stockholders' equity
|
$883,170
|
$835,953
|
$874,709
|
|
|
|
|
|
|
|
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
common stock trades on the New York Stock Exchange under the symbol
"SSD."
For further information, contact Barclay
Simpson at (925) 560-9032.
SOURCE Simpson Manufacturing Co., Inc.