DUBLIN, Calif., April 17 /PRNewswire-FirstCall/ -- Simpson Manufacturing
Co., Inc. (NYSE: SSD) (the "Company") announced today that its 2003 first
quarter net sales increased 13.8% to $116,456,180 as compared to net sales of
$102,371,235 for the first quarter of 2002. Net income increased 13.3% to
$11,024,902 for the first quarter of 2003 as compared to net income of
$9,729,940 for the first quarter of 2002. Diluted net income per common share
was $0.44 for the first quarter of 2003 as compared to $0.39 for the first
quarter of 2002.
In the first quarter of 2003, sales growth occurred throughout
North America and Europe. The growth in the United States was strongest in the
western region. Simpson Strong-Tie's first quarter sales increased 15.9% over
the same quarter last year, while Simpson Dura-Vent's sales increased 2.0%.
Contractor distributors and lumber dealers were the fastest growing Simpson
Strong-Tie connector sales channels. The sales increase was broad based across
most of Simpson Strong-Tie's major product lines. Simpson Strong-Tie's
engineered wood products and seismic and high wind related products had the
highest percentage growth rates in sales. Sales of Simpson Dura-Vent's
Direct-Vent and gas vent products increased compared to the first quarter of
2002 while sales of its pellet vent and chimney product lines decreased.
Income from operations increased 14.3% from $16,169,812 in the first
quarter of 2002 to $18,485,146 in the first quarter of 2003 and gross margins
increased from 38.3% in the first quarter of 2002 to 39.2% in the first
quarter of 2003. The increase in gross margins was primarily due to improved
absorption of fixed overhead costs offset somewhat by increased material
costs. Selling expenses increased 9.5% from $10,529,360 in the first quarter
of 2002 to $11,526,709 in the first quarter of 2003, primarily due to
increased costs associated with the addition of sales personnel and
advertising and promotional activities. General and administrative expenses
increased 24.8% from $12,494,383 in the first quarter of 2002 to $15,598,725
in the first quarter of 2003. This increase was primarily due to a favorable
comparison to the first quarter of 2002 when the Company recovered
substantially all of the overdue receivables from a significant customer. In
addition, the increase was partially related to increased cash profit sharing,
as a result of higher operating income, increased professional fees and the
recognition of stock option expenses in accordance with recently adopted
accounting standards. The tax rate was 40.8% in the first quarter of 2003,
unchanged from the first quarter of 2002.
Investors, analysts and other interested parties are invited to join the
Company's conference call on Tuesday, April 22, 2003, at 6:00 am, Pacific
Time. To participate, callers may dial 800-451-7724. The call will be webcast
simultaneously as well as being available for approximately one month through
a link on the Company's website at http://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,
2003 and 2002, are as follows:
Three Months
Ended March 31,
(Unaudited)
2003 2002
Net sales $116,456,180 $102,371,235
Cost of sales 70,845,600 63,177,680
Gross profit 45,610,580 39,193,555
Selling expenses 11,526,709 10,529,360
General and administrative expenses 15,598,725 12,494,383
Income from operations 18,485,146 16,169,812
Interest income, net 129,950 258,327
Income before taxes 18,615,096 16,428,139
Provision for income taxes 7,590,194 6,698,199
Net income $11,024,902 $9,729,940
Net income per share:
Basic $0.45 $0.40
Diluted $0.44 $0.39
Weighted average shares outstanding:
Basic 24,581,348 24,369,426
Diluted 24,902,398 24,720,348
Other data:
Depreciation and amortization $3,966,453 $3,765,212
The Company's financial position as of March 31, 2003 and 2002, and
December 31, 2002, is as follows:
March 31, December 31,
(Unaudited) (Unaudited)
2003 2002 2002
Cash and short-term
investments $112,082,437 $84,963,306 $121,001,667
Trade accounts receivable, net 71,803,708 62,864,794 55,313,885
Inventories 99,634,575 84,496,719 93,079,620
Other current assets 12,348,524 10,160,504 10,619,065
Total current assets 295,869,244 242,485,323 280,014,237
Property, plant and equipment,
net 101,529,045
84,016,901 97,396,608
Other noncurrent assets 25,218,746 18,525,025 18,990,220
Total assets $422,617,035 $345,027,249 $396,401,065
Trade accounts payable $18,974,017 $15,546,115 $14,217,487
Notes payable and current
portion of long-term debt 2,631,986
2,738,434 1,257,782
Other current liabilities 27,967,327 23,524,676 26,262,216
Total current liabilities 49,573,330 41,809,225 41,737,485
Long-term debt 5,278,586 5,142,698 5,479,834
Stockholders' equity 367,765,119 298,075,326 349,183,746
Total liabilities and
stockholders' equity $422,617,035 $345,027,249 $396,401,065
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 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 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."
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