99.1 Press release dated February 2,
MANUFACTURING CO., INC.
FOURTH QUARTER RESULTS
CA – Simpson Manufacturing Co., Inc. (the “Company”) announced today that its
fourth quarter 2009 net sales decreased 11.4% to $132.6 million compared to net
sales of $149.8 million for the fourth quarter of 2008. The Company had a net
loss of $2.8 million for the fourth quarter of 2009 compared to net income of
$1.8 million for the fourth quarter of 2008. Diluted net loss per common share
was $0.06 for the fourth quarter of 2009 compared to diluted net income per
common share of $0.04 for the fourth quarter of 2008. In 2009, net sales
decreased 22.7% to $585.1 million compared to net sales of $756.5 million for
2008. Net income was $12.2 million for 2009 compared to net income of $53.9
million for 2008. Diluted net income per common share was $0.25 for 2009
compared to $1.10 for 2008.
fourth quarter of 2009, sales declined throughout the United States. Sales
increased overall in Canada and Europe. A significant portion of the increase in
Europe was in France, which was up primarily due to the acquisition of Agence
Internationale Commerciale et Industrielle, S.A.S. (“Aginco”) in April 2009.
Simpson Strong-Tie’s fourth quarter sales decreased 7.5% from the same quarter
last year, while Simpson Dura-Vent’s sales decreased 31.0%. Simpson Strong-Tie’s
sales to contractor distributors and dealer distributors decreased significantly
as home-building activity, and general economic conditions, remained weak. Sales
to home centers also decreased. Sales decreased across all of Simpson
Strong-Tie’s major product lines, particularly those used in new home
construction. Simpson Dura-Vent’s sales decreased across most of its product
lines, with the exception of direct vent products.
from operations decreased from $4.5 million in the fourth quarter of 2008 to a
loss of $1.0 million in the fourth quarter of 2009. Gross margins decreased from
35.1% in the fourth quarter of 2008 to 30.7% in the fourth quarter of 2009. The
decrease in gross margins was primarily due to higher manufacturing costs,
including higher costs of material and labor. The price of steel, the Company's
primary raw material, increased in the second half of 2009. The Company expects
steel prices to continue to increase into 2010 as demand returns to the market.
The Company's inventories decreased 35.0% from
$251.9 million at December 31, 2008, to $163.8 million at December 31,
expense decreased 9.1% from $17.4 million in the fourth quarter of 2008 to $15.9
million in the fourth quarter of 2009, which resulted primarily from a $0.9
million decrease in commissions paid to selling agents, primarily related to
sales of Simpson Dura-Vent products, and a $0.7 million decrease in expenses
associated with sales and marketing personnel, most of which was related to
cost-cutting measures. General and administrative expense decreased 10.6% from
$22.7 million in the fourth quarter of 2008 to $20.3 million in the fourth
quarter of 2009. This decrease resulted from several factors, including a $2.3
million decrease in the provision for bad debt, a $0.7 million decrease in
administrative personnel expenses, related in part to cost-cutting measures,
partly offset by a $0.5 million increase in depreciation charges. Interest
income decreased primarily due to lower interest rates. The provision for income
taxes is a charge despite the loss before taxes primarily due to the valuation
allowances taken on foreign losses.
The following information was filed by Simpson Manufacturing Co Inc (SSD) on Wednesday, February 3, 2010 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.