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One of the greatest delights in being with one company for several decades is being able to see individuals develop the skills and productivity needed to build an outstanding company.

Both of us have had that pleasure.

The past two years have tested our peoples' abilities during the toughest economic times since the Great Depression. And our company has remained extremely strong financially despite seeing our major market, U.S. housing starts, go down 70%.

Rather than wait around for U.S. housing starts to rebound – who knows when – our long term goal has been to become much more of an international company. The year 2009 was a fascinating one in terms of setting the basis for future profits with acquisitions and new facilities, some of which had a substantial negative effect on profits last year.

The manufacturer of metric mechanical anchors, Liebig, is a prime example. While the products are a key to establishing a market for Anchor System's products in Europe and in Asia, expensive major changes in Liebig's facilities and operations will continue to affect profits this year, but the products will be an important part of our international future.

Our other two recent European acquisitions, Aginco and Ahorn, should start to be profitable this year. And Ahorn's former facility in the Czech Republic is now a Simpson Strong-Tie® distribution warehouse which should help our German operation to get more of a position in Eastern Europe.

In America, Swan Secure's deck and other products now are sold under the Simpson Strong-Tie brand name, and should once again contribute to sales and profits this year. Quik Drive® products also should contribute positively this year.

Sales of our Canadian operation also are showing an increase this year.

Establishing a brand name in China is going to take time and money, but the opening of our plant in China last year was a major step forward, as was the experience gained by our sales offices in Beijing, Shanghai and Hong Kong. But it will take time for these operations to become profitable.

We remain a long range company with ambitious future plans, which continues to enable us to attract and keep the best people, an absolute key to future success.

Our quarterly dividend is ten cents per share.