Simpson
Manufacturing Co., Inc. Announces First Quarter Earnings
PLEASANTON, Calif., April 19 /PRNewswire/ -- Simpson Manufacturing Co., Inc. (NYSE: SSD)(the "Company") announced today that its 2000 first quarter net income increased 21.3% to $9,275,764 on net sales of $84,615,539 as compared to net income of $7,648,403 on net sales of $74,661,590 for the first quarter of 1999. Diluted net income per common share was $0.76 for the first quarter of 2000 as compared to $0.63 for the first quarter of 1999. Net sales increased 13.3% in the first quarter of 2000 as compared to the first quarter of 1999. Most of the sales growth occurred domestically,particularly in California. International sales also contributed to the increase, due in large part to the acquisition of Furfix Products Limited in the third quarter of 1999. Simpson Strong-Tie's first quarter sales increased 16.2% over the same quarter last year, while Simpson Dura-Vent's sales increased 1.9%. Contractor distributors were the fastest growing connector sales channel. The sales increase was broad based across most of Simpson Strong-Tie's major product lines. The Strong-Wall and Anchoring Systems products had the highest growth rates in sales. Sales of Simpson Dura-Vent's Direct-Vent and chimney product lines increased compared to the first quarter of 1999, while its other product lines declined slightly relative to the first quarter of 1999. Income from operations increased 19.2% from $12,429,046 in the first quarter of 1999 to $14,809,889 in the first quarter of 2000 as a result of higher sales and gross margins. Gross margins increased from 38.1% in the first quarter of 1999 to 40.0% in the first quarter of 2000 primarily due to better absorption of fixed overhead costs as a result of the increased production. Selling expenses increased 8.3% from $7,897,807 in the first quarter of 1999 to $8,553,122 in the first quarter of 2000. The increase was primarily due to higher personnel costs, particularly those associated with the increase in the number of sales and merchandising personnel. General and administrative expenses increased 28.7% from $8,121,761 in the first quarter of 1999 to $10,452,367 in the first quarter of 2000 primarily due to increased cash profit sharing resulting from higher operating income, and higher personnel and other administrative overhead costs, including those associated with the operation of Keybuilder.com LLC, the Company's joint venture with Keymark Enterprises, Inc. The effective tax rate was 40.0% in the first quarter of 2000, a slight decrease from 40.1% in the first quarter of 1999. The Company's results of operations for the three months ended March 31, 2000 and 1999, are as follows: Three Months Ended March 31, -------------------------------- (Unaudited) 2000 1999 ------------ ------------ Net sales $ 84,615,539 $ 74,661,590 Cost of sales 50,800,161 46,212,976 ------------ ------------ Gross profit 33,815,378 28,448,614 Selling expenses 8,553,122 7,897,807 General and administrative expenses 10,452,367 8,121,761 ------------ ------------ Income from operations 14,809,889 12,429,046 Interest income, net 643,875 348,357 ------------ ------------ Income before taxes 15,453,764 12,777,403 Provision for income taxes 6,178,000 5,129,000 ------------ ------------ Net income $ 9,275,764 $ 7,648,403 ============ ============ Net income per share: Basic $0.77 $0.66 Diluted $0.76 $0.63 Weighted average shares outstanding: Basic 12,020,446 11,580,828 Diluted 12,277,453 12,093,225 Other data: Depreciation and amortization $3,248,640 $2,540,621 =========== =========== The Company's financial position as of March 31, 2000 and 1999, andDecember 31, 1999, is as follows: March 31, ---------------------------- (Unaudited) December 31, 2000 1999 1999 ------------ ------------ ------------ Cash and short-term investments $ 45,551,211 $ 33,642,222 $ 54,509,610 Trade accounts receivable, net 52,893,480 44,724,610 42,420,223 Inventories 78,380,347 59,564,149 72,751,245 Other current assets 7,258,615 5,759,361 6,068,749 ------------ ------------ ------------ Total current assets 184,083,653 143,690,342 175,749,827 Property, plant and equipment, net 60,662,207 56,557,645 61,143,524 Other noncurrent assets 12,619,316 3,562,353 10,360,642 ------------ ------------ ------------ Total assets $257,365,176 $203,810,340 $247,253,993 ============ ============ ============ Trade accounts payable $ 10,192,763 $ 12,371,463 $ 12,780,621 Notes payable and current portion of long-term debt 487,549 327,477 349,541 Other current liabilities 22,309,034 19,321,275 20,563,320 ------------ ------------ ------------ Total current liabilities 32,989,346 32,020,215 33,693,482 Long-term debt 2,398,651 2,557,020 2,414,562 Other liabilities 423,932 434,607 556,783 Shareholders' equity 221,553,247 168,798,498 210,589,166 ------------ ------------ ------------ Total liabilities and shareholders' equity $257,365,176 $203,810,340 $247,253,993 ============ ============ ============ 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 through its 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 925-738-9032.