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Dec 31, 2021
Simpson Q4 2021 Earnings Report
Simpson's Q4 2021 financial performance showcased substantial year-over-year growth, driven by strategic price increases and strong demand.
Key Takeaways
Simpson Manufacturing Co., Inc. reported a strong fourth quarter in 2021, with net sales increasing by 42.4% to $418.6 million and net income per diluted share rising by 136.8% to $1.61. The company's performance was driven by effective price management and increased sales volumes, particularly in North America. Additionally, Simpson announced an agreement to acquire Etanco Group, signaling a strategic move to expand its European presence.
Net sales for Q4 2021 increased by 42.4% year-over-year, reaching $418.6 million.
Net income per diluted share for Q4 2021 increased by 136.8% year-over-year, amounting to $1.61.
Consolidated gross profit increased by 60.3% compared to the same period last year, with gross margin rising to 47.4%.
An agreement was announced to acquire Etanco Group for $818 million, aimed at expanding Simpson's European market presence.
Simpson
Simpson
Simpson Revenue by Segment
Simpson Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Based on current business trends, the Company's outlook for the full fiscal year ending December 31, 2022, excluding the impact of the Etanco acquisition, includes an operating margin estimated to be in the range of 17.5% to 19.0% and capital expenditures estimated to be in the range of $65 million to $70 million.
Positive Outlook
- Operating margin is estimated to be in the range of 17.5% to 19.0%.
- The effective tax rate is estimated to be in the range of 25.5% to 26.5%.
- Capital expenditures are estimated to be in the range of $65 million to $70 million.
- Company ambitions and strategic growth initiatives by 2025 remain on track.
- Acquisition of Etanco Group expected to support growth in European business.
Challenges Ahead
- Magnitude and duration of the COVID-19 pandemic and its impact on general economic conditions remain uncertain.
- Ongoing uncertainties surrounding the impact of the COVID-19 pandemic on the Company’s business.
- Economic impact on operations.
- Raw material costs, consumers, suppliers and vendors may have a material adverse impact on the Company’s financial outlook.
- Tight labor market
Revenue & Expenses
Visualization of income flow from segment revenue to net income