PR Newswire
PLEASANTON, Calif., Oct. 30, 2017
PLEASANTON, Calif., Oct. 30, 2017 /PRNewswire/ --
Simpson Manufacturing Co., Inc. (the "Company") (NYSE: SSD), an industry leader in engineered structural connectors and building solutions, today announced its financial results for the third quarter of 2017. Unless otherwise stated, the Company's results below, when referencing "recently acquired businesses" or "acquired net sales" refer to Multi Services Dêcoupe S.A. (acquired August 2016), Gbo Fastening Systems AB (acquired January 2017) and CG Visions, Inc. (acquired January 2017), or net sales of such acquired businesses, respectively. Refer to the "Segment Reporting and Product Group Information" table below for additional segment information (including information about the Company's Asia/Pacific segment and Administrative and All Other segment).
2020 Plan
The Company has identified a detailed plan to position itself for long-term sustainable growth and improved operating leverage. Key components include:
Management Commentary
"We are pleased to announce our 2020 Plan which we believe will create substantial value for all shareholders of Simpson," commented Karen Colonias, President and Chief Executive Officer of Simpson Manufacturing Co., Inc. "We remain committed to positioning Simpson for long-term, sustainable and increasingly profitable growth. To achieve this, we are focused on the following objectives: organic growth, rationalizing our cost structure to improve company-wide profitability and improving our working capital management and overall balance sheet discipline. Through execution on the 2020 Plan, we believe these objectives will substantially enhance our return on invested capital and will provide additional capital to return to shareholders."
Mrs. Colonias continued, "To improve our operating leverage, we plan to rationalize our cost structure by actively managing our 2018 operating expenses to be below 2017 levels. We will implement this through a combination of zero-based budgeting and maintaining our headcount at a net neutral. Further, we plan to reduce operating expenses in Europe by $2 million as well as to reduce operating expenses in our concrete product line by $3 million. We anticipate these near-term actions, combined with further progress on our key objectives, will result in an improvement in our consolidated operating expenses as a percent of net sales from 31.8% in 2016 to a range of 26.0% to 27.0% by 2020. Partially offsetting these expense reduction initiatives will be our ongoing investments in truss software to strengthen our market share in our core wood connector products, as well as our SAP system to drive further operating efficiencies and better inventory management."
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Mrs. Colonias concluded, "We are confident that these efforts should be able to position Simpson for sustainable long-term growth and profitability and as a result, we plan to aggressively repurchase shares of our stock in the near-term. Beyond the targets outlined in the 2020 Plan, we are engaging two consultants to further perform independent, in-depth analyses of our operations in an effort to identify incremental opportunities to enhance our operations. Over the coming quarters, we plan to provide additional metrics and targets to help our investors better measure our success and progress on these objectives."
Third Quarter 2017 Financial Highlights
All comparisons below (which are generally indicated by words such as "increased," "decreased," "remained," or "compared to"), unless otherwise noted, are comparing the third quarter of 2017 with the third quarter of 2016.
Year-to-Date (9-month) 2017 Financial Highlights
All comparisons below (which are generally indicated by words such as "increased," "decreased," "remained," or "compared to"), unless otherwise noted, are comparing the nine months ended September 30, 2017 with the nine months ended September 30, 2016.
Corporate Developments
Business Outlook
The Company currently believes the market price for steel will remain stable for the remainder of 2017.
Subject to changing economic conditions, future events and circumstances, the Company is reiterating its outlook for gross profit margin to be in the range of 45% to 46% for the full fiscal year ending December 31, 2017.
Conference Call Details
Investors, analysts and other interested parties are invited to join the Company's third quarter 2017 financial results conference call on Monday, October 30, 2017, at 5:00 pm Eastern Time (2:00 pm Pacific Time). To participate, callers may dial (877) 407-0792 (U.S. and Canada) or (201) 689-8263 (International) approximately 10 minutes prior to the start time. The call will be webcast simultaneously and can be accessed through a link on the Company's website at www.simpsonmfg.com. The webcast will remain posted on the Company's website for 90 days.
A copy of this earnings release and supplemental slides will be available prior to the call, accessible through the Investor Relations section of the Company's website at www.simpsonmfg.com.
About Simpson Manufacturing Co., Inc.
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 construction products, including connectors, truss plates, fastening systems, fasteners and shearwalls, and concrete construction products, including adhesives, specialty chemicals, mechanical anchors, powder actuated tools and reinforcing fiber materials. The Company's common stock trades on the New York Stock Exchange under the symbol "SSD."
(1) | When referred to above, the Company's return on invested capital ("ROIC") for a fiscal year is calculated based on (i) the net income of that year as presented in the Company's consolidated statements of operations prepared pursuant to generally accepted accounting principles in the U.S. ("GAAP"), as divided by (ii) the average of the sum of the total stockholders' equity and the total long-term liabilities at the beginning of and at the end of such year, as presented in the Company's consolidated balance sheets prepared pursuant to GAAP for that applicable year. As such, the Company's ROIC, a ratio or statistical measure, is calculated using exclusively financial measures presented in accordance with GAAP. |
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, based on numerous assumptions and subject to risks and uncertainties (some of which are beyond our control), such as statements above regarding the Company's 2020 Plan, the Company's efforts and costs to implement the 2020 Plan, and the effects of the 2020 Plan; the Company's products, market share, software and SAP implementation (including its costs), profitability and profit margin outlook, working capital, balance sheet, inventory, net sales, net sales growth rate, operating expenses, cost reduction measures, capital return, dividends and share repurchases; as well as the steel prices. Forward-looking statements are necessarily speculative in nature, and it can be expected that some or all of the assumptions of the forward-looking statements we furnish will not materialize or will vary significantly from actual results. Although the Company believes that these forward-looking statements are reasonable, it does not and cannot give any assurance that its beliefs and expectations will prove to be correct, and our actual results might differ materially from results suggested by any forward-looking statement in this document. 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 business cycles and construction business conditions; (ii) customer acceptance of the Company's products; (iii) product liability claims, contractual liability, engineering and design liability and similar liabilities or claims, (iv) relationships with key customers; (v) materials and manufacturing costs; (vi) the financial condition of customers, competitors and suppliers; (vii) technological developments including software development; (viii) increased competition; (ix) changes in industry practices or regulations; (x) litigation risks and actions by activist shareholders, (xi) changes in capital and credit market conditions; (xii) governmental and business conditions in countries where the Company's products are manufactured and sold; (xiii) changes in trade regulations; (xiv) the effect of acquisition activity; (xv) changes in the Company's plans, strategies, objectives, expectations or intentions; (xvi) natural disasters and other factors that are beyond the Company's reasonable control; and (xvii) other risks and uncertainties indicated from time to time in the Company's filings with the U.S. Securities and Exchange Commission including in the Company's most recent Annual Report on Form 10-K under the heading "Item 1A - Risk Factors." Actual results might differ materially from results suggested by any forward-looking statements in this document. Except as required by law, the Company undertakes no obligation to publicly release any update or revision to these forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise. The information in this document speaks as of the date hereof and is subject to change. Any distribution of this document after the date hereof is not intended and should not be construed as updating or confirming such information. In light of the foregoing, investors are urged not to rely on our forward-looking statements in making an investment decision about our securities. We further do not accept any responsibility for any projections or reports published by analysts, investors or other third parties. The financial information set forth herein is presented on a preliminary unreviewed and unaudited basis; reviewed and unaudited data will be included in the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2017, when filed.
Simpson Manufacturing Co., Inc. and Subsidiaries | |||||||||||||||
UNAUDITED Consolidated Statements of Operations | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||
| |||||||||||||||
| Three Months Ended | | Nine Months Ended | ||||||||||||
(Amounts in thousands, except per share data) | 2017 | | 2016 | | 2017 | | 2016 | ||||||||
Net sales | $ | 262,476 | | | $ | 230,974 | | | $ | 745,345 | | | $ | 660,470 | |
Cost of sales | 142,591 | | | 117,499 | | | 401,779 | | | 342,985 | | ||||
Gross profit | 119,885 | | | 113,475 | | | 343,566 | | | 317,485 | | ||||
Research and development and engineering expense | 8,679 | | | 10,932 | | | 35,051 | | | 33,807 | | ||||
Selling expense | 28,156 | | | 24,304 | | | 86,150 | | | 74,313 | | ||||
General and administrative expense | 36,501 | | | 32,543 | | | 108,049 | | | 96,786 | | ||||
Gain on disposal of assets | (147) | | | (81) | | | (147) | | | (763) | | ||||
Income from operations | 46,696 | | | 45,777 | | | 114,463 | | | 113,342 | | ||||
Loss in equity method investment, before tax | (13) | | | — | | | (53) | | | — | | ||||
Interest expense, net | (296) | | | (82) | | | (685) | | | (400) | | ||||
Gain on bargain purchase of a business (adjustment) | (2,052) | | | — | | | 6,336 | | | — | | ||||
Gain on disposal of a business | 443 | | | — | | | 443 | | | — Werbung Mehr Nachrichten zur Simpson Manufacturing Company Aktie kostenlos abonnieren
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