DUBLIN, Calif., April 23 /PRNewswire-FirstCall/ -- Simpson Manufacturing Co., Inc. (the "Company") announced today that its 2002 first quarter net sales increased 8.0% to $102,371,235 as compared to net sales of $94,823,953 for the first quarter of 2001. Net income increased 8.3% to $9,729,940 for the first quarter of 2002 as compared to net income of $8,980,154 for the first quarter of 2001. Diluted net income per common share was $0.79 for the first quarter of 2002 as compared to $0.73 for the first quarter of 2001.
In the first quarter of 2002, sales growth occurred throughout the United States, particularly in California and the Southeastern region of the United States. However, sales decreased somewhat in the other western states. Simpson Strong-Tie's first quarter sales increased 9.2% over the same quarter last year, while Simpson Dura-Vent's sales increased 1.7%. Contractor distributors and lumber dealers were the fastest growing Simpson Strong-Tie connector sales channels while sales to home centers declined slightly for the quarter as a result of inventories being more closely managed by a large customer. The sales increase was broad based across most of Simpson Strong-Tie's major product lines. Simpson Strong-Tie's Strong-Wall and other seismic and high wind related products and the Anchor Systems product lines had the highest percentage growth rates in sales. Sales of Simpson Dura-Vent's Direct-Vent products increased compared to the first quarter of 2001 while sales of its gas vent and pellet vent product lines decreased.
Income from operations increased 11.8% from $14,463,359 in the first quarter of 2001 to $16,169,812 in the first quarter of 2002 and gross margins decreased from 39.2% in the first quarter of 2001 to 38.3% in the first quarter of 2002. The decrease in gross margin was primarily due to higher fixed overhead costs as a percentage of sales and lower margins at the Company's Danish subsidiary. Selling expenses decreased 2.3% from $10,779,049 in the first quarter of 2001 to $10,529,360 in the first quarter of 2002, primarily due to decreased spending on advertising and promotions, partially offset by higher personnel costs related to the increase in the number of merchandising personnel. In addition, sales commissions increased as a result of higher sales. General and administrative expenses increased 5.0% from $11,893,980 in the first quarter of 2001 to $12,494,383 in the first quarter of 2002. There was a reduction in the bad debt reserve related to a significant customer and a reduction in goodwill amortization charges associated with the change in accounting related to the adoption of FASB No. 142. The tax rate was 40.8% in the first quarter of 2002, a decrease from 41.8% in the first quarter of 2001.
Investors, analysts and other interested parties are invited to join the Company's conference call on April 24, 2002, at 6:00 am, Pacific Time. To participate, callers may dial 800-360-9865. The call will be webcast simultaneously as well as being available for approximately 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 be substantially different 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) materials and manufacturing costs; (iv) the financial condition of customers, competitors and suppliers; (v) technological developments; (vi) increased competition; (vii) changes in capital market conditions; (viii) governmental and business conditions in countries where the Company's products are manufactured and sold; (ix) changes in trade regulations; (x) the effect of acquisition activity; (xi) changes in the Company's plans, strategies, objectives, expectations or intentions; and (xii) other risks and uncertainties indicated from time to time in the Company's filings with the 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, 2002 and 2001, are as follows:
Three Months Ended March 31, (Unaudited) 2002 2001 Net sales $102,371,235 $94,823,953 Cost of sales 63,177,680 57,687,565 Gross profit 39,193,555 37,136,388 Selling expenses 10,529,360 10,779,049 General and administrative expenses 12,494,383 11,893,980 Income from operations 16,169,812 14,463,359 Interest income, net 258,327 460,277 Income before taxes 16,428,139 14,923,636 Provision for income taxes 6,698,199 6,240,886 Minority Interest -- (297,404) Net income $9,729,940 $8,980,154 Net income per share: Basic $0.80 $0.75 Diluted $0.79 $0.73 Weighted average shares outstanding: Basic 12,184,713 12,037,073 Diluted 12,360,174 12,277,485 Other data: Depreciation and amortization $3,765,212 $4,061,496
The Company's financial position as of March 31, 2002 and 2001, and December 31, 2001, is as follows:
March 31, December 31, 2002 2001 2001 Cash and short-term investments $84,963,306 $41,784,481 $95,871,950 Trade accounts receivable, net 62,864,794 58,975,024 42,614,410 Inventories 84,496,719 93,635,319 82,476,299 Other current assets 10,160,504 9,768,410 9,006,102 Total current assets 242,485,323 204,163,234 229,968,761 Property, plant and equipment, net 84,016,901 69,648,429 81,410,301 Other noncurrent assets 18,525,025 23,756,754 18,232,988 Total assets $345,027,249 $297,568,417 $329,612,050 Trade accounts payable $15,546,115 $13,207,540 $15,738,659 Notes payable and current portion of long-term debt 2,738,434 2,866,842 986,448 Other current liabilities 23,524,676 22,072,399 18,982,843 Total current liabilities 41,809,225 38,146,781 35,707,950 Long-term debt 5,142,698 4,565,881 5,686,995 Other liabilities -- 206,372 100,000 Minority interest -- 456,874 -- Stockholders' equity 298,075,326 254,192,509 288,117,105 Total liabilities and stockholders' equity $345,027,249 $297,568,417 $329,612,050
Simpson Manufacturing Co., Inc., headquartered in Dublin, 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 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.
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