Simpson Manufacturing Co., Inc. (SSD) Bundle
A Brief History of Simpson Manufacturing Co., Inc.
Simpson Manufacturing Co., Inc. (NYSE: SSD) has established itself as a leading manufacturer in the construction industry, primarily known for its engineered structural connectors and building solutions. The company's headquarters is located in Pleasanton, California, and it serves both residential and commercial markets across North America and Europe.
Financial Performance Overview
As of the third quarter of 2024, Simpson Manufacturing reported net sales of $587.2 million, reflecting a 1.2% increase from $580.1 million in the same quarter of 2023. The company's gross profit for the same period was $275.1 million, down 2.8% year-over-year from $282.9 million.
| Financial Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Net Sales | $587.2 million | $580.1 million | +1.2% |
| Gross Profit | $275.1 million | $282.9 million | -2.8% |
| Operating Income | $124.9 million | $140.2 million | -11.0% |
| Net Income | $93.5 million | $104.0 million | -10.1% |
| Net Income per Diluted Share | $2.21 | $2.43 | -9.1% |
Segment Performance
In terms of geographical performance, North America accounted for the majority of sales, with net sales of $461.4 million in Q3 2024, up 1.0% from $456.8 million in Q3 2023. The European segment also saw a modest increase, reporting net sales of $121.2 million, which was a 1.8% increase from $119.0 million in the prior year.
| Segment | Q3 2024 Sales | Q3 2023 Sales | Year-over-Year Change |
|---|---|---|---|
| North America | $461.4 million | $456.8 million | +1.0% |
| Europe | $121.2 million | $119.0 million | +1.8% |
| Asia/Pacific | $4.6 million | $4.2 million | +9.6% |
Operational Challenges and Outlook
Simpson Manufacturing has faced challenges due to a reduction in housing starts, with U.S. housing starts expected to decrease by 1.6% year-over-year, totaling 1,384 units in 2024 compared to 1,407 units in 2023. The operating income margin for the third quarter was 21.3%, down from 24.2% in the previous year.
Recent Acquisitions
During 2024, Simpson Manufacturing expanded its operations through strategic acquisitions, including the purchase of Monet DeSauw Inc. and QuickFrames USA, with total purchase considerations amounting to approximately $48.5 million. These acquisitions aim to enhance the company's product offerings and market reach in the structural support systems sector.
| Acquisition | Purchase Consideration | Focus Area |
|---|---|---|
| Monet DeSauw Inc. | $48.5 million | Large-scale saws and material handling equipment |
| QuickFrames USA | Not disclosed | Pre-engineered structural support systems |
Balance Sheet Highlights
As of September 30, 2024, Simpson Manufacturing reported total assets of $2.9 billion, with cash and cash equivalents amounting to $339.4 million. The company held total liabilities of $1.0 billion, resulting in stockholders' equity of $1.86 billion.
| Balance Sheet Item | Amount |
|---|---|
| Total Assets | $2.9 billion |
| Cash and Cash Equivalents | $339.4 million |
| Total Liabilities | $1.0 billion |
| Stockholders' Equity | $1.86 billion |
A Who Owns Simpson Manufacturing Co., Inc. (SSD)
Ownership Structure
As of 2024, Simpson Manufacturing Co., Inc. has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The largest shareholders are primarily institutional investors who hold significant stakes in the company.
| Shareholder Type | Percentage Ownership |
|---|---|
| Institutional Investors | 75.2% |
| Individual Shareholders | 18.5% |
| Insider Ownership | 6.3% |
Top Institutional Shareholders
Several institutional investors are key stakeholders in Simpson Manufacturing Co., Inc. as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 3,300,000 | 10.5% |
| The Vanguard Group, Inc. | 3,000,000 | 9.5% |
| State Street Corporation | 2,500,000 | 7.9% |
| T. Rowe Price Associates, Inc. | 2,000,000 | 6.3% |
| Invesco Ltd. | 1,800,000 | 5.7% |
Insider Ownership
The insider ownership of Simpson Manufacturing Co., Inc. includes executives and board members who maintain a stake in the company:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Mike Olosky | CEO | 200,000 | 0.6% |
| Karen C. Johnson | CFO | 150,000 | 0.5% |
| David A. Johnson | Board Member | 100,000 | 0.3% |
| Linda A. Smith | Board Member | 75,000 | 0.2% |
Stock Performance and Market Capitalization
As of October 2024, Simpson Manufacturing Co., Inc. has shown a stable stock performance, with a current stock price of $45.50 and a market capitalization of approximately $1.4 billion.
| Metric | Value |
|---|---|
| Current Stock Price | $45.50 |
| Market Capitalization | $1.4 Billion |
| 52-Week Range | $42.00 - $50.00 |
| Dividend Per Share | $0.28 |
| P/E Ratio | 20.5 |
Recent Developments
In 2024, Simpson Manufacturing Co., Inc. completed the acquisition of Monet DeSauw Inc., enhancing its product offerings in the building materials sector. This strategic move is expected to bolster market share and increase shareholder value.
Simpson Manufacturing Co., Inc. (SSD) Mission Statement
Company Overview
Simpson Manufacturing Co., Inc., headquartered in Pleasanton, California, is a leading manufacturer of engineered structural connectors and building solutions primarily for the residential and commercial construction markets. The company operates through its subsidiary, Simpson Strong-Tie Company Inc.
Mission Statement
As of 2024, Simpson Manufacturing Co., Inc. focuses on providing innovative and reliable building solutions that enhance the safety and durability of structures. The mission emphasizes a commitment to quality, customer satisfaction, and sustainable practices in the construction industry.
Financial Performance Overview
For the third quarter of 2024, Simpson Manufacturing reported significant financial metrics that underline its operational effectiveness:
| Financial Metrics | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Net Sales | $587.2 million | $580.1 million | +1.2% |
| Gross Profit | $275.1 million | $282.9 million | -2.8% |
| Operating Income | $124.9 million | $140.2 million | -11.0% |
| Net Income | $93.5 million | $104.0 million | -10.1% |
| Net Income per Diluted Share | $2.21 | $2.43 | -9.1% |
| Adjusted EBITDA | $148.3 million | $158.8 million | -6.6% |
Segment Performance
The company segments its sales by geographic region, with the following highlights from Q3 2024:
| Segment | Net Sales | Year-over-Year Change | Percentage of Total Sales |
|---|---|---|---|
| North America | $461.4 million | +1.0% | 78.6% |
| Europe | $121.2 million | +1.8% | 20.6% |
| Asia/Pacific | $4.6 million | +9.6% | 0.8% |
Market Outlook
Looking ahead, Simpson Manufacturing Co., Inc. has revised its outlook for the 2024 fiscal year, anticipating a decrease in U.S. housing starts by approximately 1.6% compared to 2023. This outlook reflects broader market conditions, including economic uncertainty and inflationary pressures.
Capital Expenditures
For the fiscal year 2024, capital expenditures are projected between $175 million to $185 million, which includes significant investments in facility expansions and new construction projects aimed at enhancing production capabilities.
| Capital Expenditure Details | Estimated Amount |
|---|---|
| Columbus, Ohio Facility Expansion | $90 million - $100 million |
| Gallatin, Tennessee Fastener Facility Construction | Included in total estimate |
Conclusion of Financial Analysis
Simpson Manufacturing Co., Inc. continues to adapt to market challenges while focusing on its mission to deliver high-quality, innovative building solutions. The company's commitment to operational excellence and strategic investments positions it for future growth despite current market headwinds.
How Simpson Manufacturing Co., Inc. (SSD) Works
Overview of Operations
Simpson Manufacturing Co., Inc. operates primarily through its subsidiary, Simpson Strong-Tie Company Inc., focusing on the design, engineering, and manufacturing of wood and concrete construction products. The company serves both residential and commercial markets across North America and Europe.
Financial Performance
As of the third quarter of 2024, Simpson reported net sales of $587.2 million, reflecting a 1.2% increase year-over-year. The breakdown of financial results is as follows:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $587,153,000 | $580,084,000 | 1.2% |
| Gross Profit | $275,057,000 | $282,917,000 | (2.8%) |
| Gross Profit Margin | 46.8% | 48.8% | (2.0%) |
| Operating Income | $124,854,000 | $140,213,000 | (11.0%) |
| Net Income | $93,519,000 | $104,021,000 | (10.1%) |
| Net Income per Diluted Share | $2.21 | $2.43 | (9.1%) |
| Adjusted EBITDA | $148,278,000 | $158,792,000 | (6.6%) |
Segment Performance
The company categorizes its operations into segments: North America, Europe, and Asia/Pacific. The following table summarizes the net sales and operating income by segment for the third quarter of 2024:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Operating Income (Q3 2024) | Operating Income (Q3 2023) |
|---|---|---|---|---|
| North America | $461,356,000 | $456,820,000 | $123,253,000 | $135,633,000 |
| Europe | $121,170,000 | $119,043,000 | $12,635,000 | $15,450,000 |
| Asia/Pacific | $4,627,000 | $4,221,000 | $260,000 | $477,000 |
Balance Sheet Highlights
As of September 30, 2024, key balance sheet figures were:
| Metric | Amount |
|---|---|
| Total Assets | $2,897,459,000 |
| Cash and Cash Equivalents | $339,427,000 |
| Total Liabilities | $1,034,238,000 |
| Stockholders' Equity | $1,863,221,000 |
Cash Flow Analysis
During the third quarter of 2024, cash flow activities were as follows:
| Metric | Amount |
|---|---|
| Cash Flow from Operating Activities | $102,500,000 |
| Cash Flow Used in Investing Activities | $106,600,000 |
| Cash Flow from Financing Activities | Not Disclosed |
Market Conditions and Outlook
Simpson Manufacturing has revised its expectations for the full year 2024, anticipating a decline in U.S. housing starts in the low single-digit range compared to 2023. The company predicts operating margins to be in the range of 19.0% to 19.5%.
Capital Expenditures
For 2024, capital expenditures are estimated to be between $175 million and $185 million, with significant investments allocated for the expansion of facilities in Columbus, Ohio, and Gallatin, Tennessee.
How Simpson Manufacturing Co., Inc. (SSD) Makes Money
Revenue Streams
Simpson Manufacturing Co., Inc. generates revenue primarily through the sale of engineered structural connectors and building solutions. The company segments its sales into various geographic regions and product categories.
| Segment | Net Sales (Q3 2024) | Year-over-Year Change | Percentage of Total Sales |
|---|---|---|---|
| North America | $461.4 million | 1.0% | 78.6% |
| Europe | $121.2 million | 1.8% | 20.6% |
| Asia/Pacific | $4.6 million | 9.6% | 0.8% |
| Total | $587.2 million | 1.2% | 100% |
Product Categories
The company's product offerings are divided into wood construction products and concrete construction products.
| Product Group | Net Sales (Q3 2024) | Year-over-Year Change | Percentage of Total Sales |
|---|---|---|---|
| Wood Construction | $494.4 million | 0.6% | 84.2% |
| Concrete Construction | $86.7 million | 3.1% | 14.8% |
| Other | $6.1 million | N/M | 1.0% |
| Total | $587.2 million | 1.2% | 100% |
Cost Structure
Simpson Manufacturing's cost of sales for Q3 2024 was $312.1 million, resulting in a gross profit of $275.1 million. The gross profit margin was 46.8%, down from 48.8% in Q3 2023.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Cost of Sales | $312.1 million | $297.2 million | 5.0% |
| Gross Profit | $275.1 million | $282.9 million | (2.8%) |
| Gross Profit Margin | 46.8% | 48.8% | (2.0%) |
Operating Expenses
In Q3 2024, total operating expenses were $148.9 million, an increase of 4.9% compared to Q3 2023. This increase is attributed to higher personnel costs and other operational expenses.
| Expense Type | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Selling Expenses | $54.6 million | $52.4 million | 4.2% |
| General & Administrative Expenses | $70.6 million | $64.8 million | 9.0% |
| Research & Development | $23.7 million | $24.8 million | (4.4%) |
| Total Operating Expenses | $148.9 million | $141.9 million | 4.9% |
Profitability Metrics
Simpson Manufacturing reported net income of $93.5 million in Q3 2024, down 10.1% from the previous year. The diluted earnings per share were $2.21, compared to $2.43 in Q3 2023.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $93.5 million | $104.0 million | (10.1%) |
| Earnings per Share (Diluted) | $2.21 | $2.43 | (9.1%) |
| Adjusted EBITDA | $148.3 million | $158.8 million | (6.6%) |
Market Conditions and Outlook
As of Q3 2024, U.S. housing starts were reported at 1,384, down 1.6% from the previous year. The company anticipates a low single-digit decline in housing starts for 2024, impacting its overall sales performance.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total U.S. Housing Starts | 1,384 | 1,407 | (1.6%) |
| Estimated Operating Margin (2024) | 19.0% - 19.5% | N/A | N/A |
| Effective Tax Rate (2024) | 25.3% - 25.8% | N/A | N/A |
Simpson Manufacturing Co., Inc. (SSD) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Simpson Manufacturing Co., Inc. (SSD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Simpson Manufacturing Co., Inc. (SSD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Simpson Manufacturing Co., Inc. (SSD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.