http://www.simpsonmfg.com/docs/EARN419.pdfManagement Commentary:
“We made significant operational and financial progress in 2019 resulting in solid organic growth, enhanced operating efficiencies and improved profitability,” commented Karen Colonias, President and Chief Executive Officer of Simpson Manufacturing Co., Inc. “Our 2019 net sales improved 5.4% over 2018 to $1.14 billion, driven by higher sales volume, despite the adverse weather 6 conditions experienced in the first half of the year and lapping the benefit of higher sales prices following the price increases we implemented in mid–2018. However, our fourth quarter gross margin of 41.9% remained under pressure. As such, our 2019 full–year gross margin of 43.3% was slightly lower than anticipated. Aside from the factors impacting gross margin in 2019 including increased material, labor, factory and overhead costs, and to a lesser extent, sales mix, we continue to hold one of the highest margin
profiles in the industry by continuing to effectively manage elements within our control including: maintaining a best–in–class customer experience, high–quality trusted products, and deep industry relationships.” Ms. Colonias continued, “We successfully maintained our focus on rationalizing our cost structure in 2019, resulting in a 100 basis point year–over–year improvement in our total operating expenses as a percentage of net sales to 27.9%. As a result, we generated strong earnings of $2.98 per diluted share, up 9.6% over 2018. As a testament to our ongoing confidence in our business, we were pleased to have returned $101.1 million to our stockholders through share repurchases and dividends. Looking ahead to fiscal 2020, we remain focused on progressing towards our financial targets to position Simpson for long-term sustainable and profitable growth.”
