PLEASANTON, Calif., April 26,
2012 /PRNewswire/ -- Simpson Manufacturing Co., Inc. (the
"Company") (NYSE: SSD) today announced its first quarter 2012
results.
For the first quarter of 2012, net sales increased 19.8% to
$158.7 million compared to net sales
of $132.5 million for the first
quarter of 2011. The Company had income, net of tax, of
$7.2 million for the first quarter of
2012 compared to income, net of tax, of $7.1
million for the first quarter of 2011. Diluted income, net
of tax, per common share was $0.15
for the first quarter of 2012 compared to diluted income, net of
tax, of $0.14 per common share for
the first quarter of 2011.
In the first quarter of 2012, sales increased throughout
North America due in part to a
mild winter and, in Europe, as a
result of the recent European acquisition. Sales increases were
above average in all regions of the
United States, except California, as compared to the first quarter
of 2011. Sales to all distribution channels increased, with
above-average increases in sales to contractor distributors and
lumber dealers as compared to first quarter 2011. The sales
increase was broad-based across most of the Company's major product
lines as compared to the first quarter of 2011.
Gross margins increased slightly from 43.0% in the first quarter
of 2011 to 43.7% in the first quarter of 2012, primarily because of
lower warehouse and shipping costs as a percentage of sales.
Material and labor costs increased as a percentage of sales but
were offset by a lower proportion of fixed overhead costs to total
costs, resulting primarily from the increased sales volume. Steel
prices increased in the first quarter due to increased steel market
demand. The Company expects steel prices to remain generally
at current levels at least through the first half of 2012.
Operating expenses increased due to integration and incremental
expenses associated with recently acquired businesses. Research and
development and engineering expense increased 53.5% from
$6.0 million in the first quarter of
2011 to $9.2 million in the first
quarter of 2012, due primarily to an increase in professional fees
of $2.4 million and personnel costs
of $0.3 million. Selling expense
increased 19.7% from $17.1 million in
the first quarter of 2011 to $20.4
million in the first quarter of 2012, primarily due to
increases in personnel costs of $1.5
million, promotional costs of $0.6
million, stock based compensation of $0.5 million and cash profit sharing of
$0.4 million. General and
administrative expense increased 21.4% from $21.6 million in the first quarter of 2011 to
$26.2 million in the first quarter of
2012, including increases in personnel costs of $1.2 million, depreciation of $0.8 million, intangible amortization expense of
$0.8 million, stock based
compensation of $0.5 million,
professional and legal fees of $0.5
million and an impairment of $0.5
million associated with completing the sale of the Company's
San Leandro facility.
The effective tax rate increased from 42.6% in the first quarter
of 2011 to 46.9% in the first quarter of 2012. The increase
in the effective tax rate was primarily due to $2.2 million in non-deductible acquisition
costs.
In March 2012, the Company
purchased substantially all of the assets of CarbonWrap Solutions,
L.L.C., for $5.5 million.
CarbonWrap Solutions distributes fiber-reinforced polymer products
primarily for infrastructure and transportation projects. The
Company expects that this acquisition will help expand its product
offerings in the infrastructure, commercial and industrial
construction markets.
At its meeting on April 25, 2012,
the Company's Board of Directors declared a cash dividend of
$0.125 per share. The record date for
the dividend will be July 5, 2012,
and it will be paid on July 26,
2012.
Investors, analysts and other interested parties are invited to
join the Company's conference call on Friday, April 27, 2012, at 6:00 am Pacific Time. To participate, callers may
dial 800-895-0198. 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, 2012 and 2011 (unaudited),
were as follows:
|
|
Three
Months
|
|
|
Ended
March 31,
|
(Amounts in thousands, except per share
data)
|
2012
|
2011
|
|
Net
sales
|
$158,734
|
$132,536
|
|
Cost of
sales
|
89,329
|
75,588
|
|
Gross
profit
|
69,405
|
56,948
|
|
|
|
|
|
Research
and development and engineering expenses
|
9,198
|
5,994
|
|
Selling
expenses
|
20,432
|
17,075
|
|
General
and administrative expenses
|
26,244
|
21,621
|
|
Loss
(gain) on sale of assets
|
23
|
(25)
|
|
|
|
|
|
Income
from operations
|
13,508
|
12,283
|
|
|
|
|
|
Loss on
equity method investment, before tax
|
–
|
(14)
|
|
Interest
income, net
|
65
|
72
|
|
Income
before taxes
|
13,573
|
12,341
|
|
|
|
|
|
Provision
for income taxes
|
6,372
|
5,263
|
|
|
|
|
Net
income
|
$7,201
|
$7,078
|
|
|
|
|
|
Earnings
per common share:
|
|
|
|
Basic
|
$0.15
|
$0.14
|
|
Diluted
|
0.15
|
0.14
|
|
|
|
|
|
Weighted
average shares outstanding:
|
|
|
|
Basic
|
48,273
|
50,107
|
|
Diluted
|
48,337
|
50,165
|
|
|
|
|
|
Other
data:
|
|
|
|
Depreciation and amortization
|
$6,721
|
$4,972
|
|
Pre-tax
impairment of assets
|
461
|
–
|
|
Pre-tax
stock compensation expense
|
3,184
|
1,521
|
|
|
|
|
|
Cash
dividend declared per common share
|
$0.125
|
$0.125
|
|
|
|
|
The Company's financial position (unaudited) as of March 31, 2012 and 2011 and December 31, 2011, was as follows:
|
March
31,
|
December 31,
|
(Amounts in thousands)
|
2012
|
2011
|
2011
|
Cash and
short-term investments
|
$160,092
|
$301,231
|
$213,817
|
Trade
accounts receivable, net
|
107,257
|
91,076
|
76,420
|
Inventories
|
184,068
|
166,966
|
180,129
|
Assets
held for sale
|
–
|
9,148
|
6,793
|
Other
current assets
|
26,234
|
22,287
|
24,905
|
Total
current assets
|
477,651
|
590,708
|
502,064
|
|
|
|
|
Property,
plant and equipment, net
|
209,460
|
184,606
|
195,716
|
Goodwill
|
130,556
|
71,338
|
99,849
|
Other
noncurrent assets
|
49,344
|
36,518
|
38,458
|
Total
assets
|
$867,011
|
$883,170
|
$836,087
|
|
|
|
|
Trade
accounts payable
|
$35,109
|
$29,822
|
$22,033
|
Notes
payable and current portion of long-term debt
|
3,556
|
–
|
–
|
Other
current liabilities
|
50,705
|
48,450
|
49,554
|
Total
current liabilities
|
89,370
|
78,272
|
71,587
|
|
|
|
|
Long-term
debt
|
240
|
–
|
–
|
Other
long-term liabilities
|
6,300
|
7,833
|
6,137
|
Stockholders' equity
|
771,101
|
797,065
|
758,363
|
Total
liabilities and stockholders' equity
|
$867,011
|
$883,170
|
$836,087
|
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, chemicals, 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 Tom
Fitzmyers at (925) 560-9030.
SOURCE Simpson Manufacturing Co., Inc.