Simpson Q4 2022 Earnings Report
Key Takeaways
Simpson Manufacturing Co. Inc. reported Q4 2022 financial results, featuring a 13.6% increase in net sales to $475.6 million compared to the previous year. The growth was primarily driven by product price increases and the acquisition of ETANCO. Net income decreased to $57.6 million, or $1.35 per diluted share, compared to $69.8 million, or $1.61 per diluted share, in the same quarter of the previous year.
Consolidated net sales increased by 13.6% to $475.6 million, up from $418.6 million year-over-year.
North America net sales decreased by 1.4% to $368.1 million, impacted by lower sales volumes.
Europe net sales increased significantly by 150.3% to $103.7 million, largely due to the ETANCO acquisition.
Net income decreased to $57.6 million, or $1.35 per diluted share, compared to $69.8 million, or $1.61 per diluted share, in the prior year.
Simpson
Simpson
Simpson Revenue by Segment
Simpson Revenue by Geographic Location
Forward Guidance
Simpson Manufacturing provided its outlook for the full fiscal year ending December 31, 2023, estimating an operating margin between 18% and 20%. Interest expense is expected to be approximately $9.7 million, and the effective tax rate is estimated to be in the range of 25% to 26%. Capital expenditures are projected to be between $90.0 million and $95.0 million.
Positive Outlook
- Operating margin is estimated to be in the range of 18% to 20%.
- Interest expense is expected to be approximately $9.7 million.
- The effective tax rate is estimated to be in the range of 25% to 26%.
- Capital expenditures are estimated to be in the range of $90.0 million to $95.0 million.
- Company remains well positioned to capture meaningful benefits from the synergies
Challenges Ahead
- Plans were developed to realize the Company’s previously identified synergies in the years ahead which resulted in additional costs in 2022 that are expected to continue in 2023.
- Macroeconomic circumstances will delay some of the synergy opportunities.
- Softer market forecasts for U.S. housing starts.
- North America net sales were negatively impacted by $1.3 million in foreign currency translation.
- Consolidated operating margin decreased to 16.6% from 23.2%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income