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Simpson
🇺🇸 NYSE:SSD
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OverviewEarningsDividends
•
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.

Total Revenue
$419M
Previous year: $294M
+42.4%
EPS
$1.61
Previous year: $0.68
+136.8%
Gross Profit Margin
47.4%
Previous year: 42.1%
+12.6%
Operating Income Margin
23.2%
Previous year: 13.4%
+73.1%
Gross Profit
$198M
Previous year: $124M
+60.3%
Cash and Equivalents
$301M
Previous year: $275M
+9.7%
Free Cash Flow
$16.7M
Previous year: $60.9M
-72.5%
Total Assets
$1.48B
Previous year: $1.23B
+20.4%

Simpson

Simpson

Simpson Revenue by Geographic Location

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

Company Overview

Full financial data and analysis

View Simpson