Sep 30, 2021

Simpson Q3 2021 Earnings Report

Reported an increase in net sales and income from operations compared to the prior year period.

Key Takeaways

Simpson Manufacturing Co. announced strong Q3 2021 financial results, with net sales reaching $396.7 million, an 8.9% increase year-over-year. Income from operations rose to $100.6 million, contributing to diluted earnings per share of $1.70. The company experienced lighter sales volumes in North America due to customer inventory adjustments amidst challenging labor and supply chain conditions.

Net sales increased by 8.9% year-over-year, reaching $396.7 million.

Gross margin improved to 49.9% from 47.6% in the prior year period.

Income from operations increased by 10.2% year-over-year, totaling $100.6 million.

Earnings per diluted share increased by 10.4% year-over-year, reaching $1.70.

Total Revenue
$397M
Previous year: $364M
+8.9%
EPS
$1.7
Previous year: $1.54
+10.4%
Gross Profit Margin
49.9%
Previous year: 47.6%
+4.8%
Operating Income Margin
25.4%
Previous year: 25.1%
+1.2%
Gross Profit
$198M
Previous year: $173M
+14.3%
Cash and Equivalents
$294M
Previous year: $311M
-5.5%
Free Cash Flow
$28.5M
Previous year: $80.1M
-64.4%
Total Assets
$1.42B
Previous year: $1.28B
+11.3%

Simpson

Simpson

Simpson Revenue by Geographic Location

Forward Guidance

The Company is updating certain elements of its outlook, primarily reflecting actual results of the third quarter as well as the Company's latest views on demand trends, raw material input costs and operating expenses. The Company's outlook for the full fiscal year ending December 31, 2021 is as follows:

Positive Outlook

  • Operating margin is estimated to be in the range of 20.0% to 22.0%.
  • The effective tax rate is estimated to be in the range of 25.0% to 26.0%, including both federal and state income tax rates.
  • Capital expenditures are estimated to be in the range of $55 million to $60 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income