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EX - 99.1 2 q12021ex991pressrelease_ne.htm EX - 99.1 Exhibit 99.1 Press Release dated April 26 , 2021 SIMPSON MANUFACTURING CO . , INC . ANNOUNCES 2021 FIRST QUARTER FINANCIAL RESULTS Pleasanton , CA - April 26 , 2021 | Net sales of $ 347.6 million increased 22.6 % year - over - year Gross margin of 46.7 % increased from 45.7 % in the prior year period Income from operations of $ 68.4 million increased 38.6 % year - over - year , operating margin of 19.7 % increased from 17.4 % in the prior year period Diluted earnings per share of $ 1.16 increased 39.8 % year - over - year Updating full year 2021 financial guidance on improved revenue expectations Simpson Manufacturing Co. , Inc. ( the " Company " ) ( NYSE : SSD ) , an industry leader in engineered structural connectors and building solutions , today announced its financial results for the first quarter of 2021. Refer to the " Segment and Product Group Information ” table below for additional segment information ( including information about the Company's Asia / Pacific segment and Administrative and All Other segment ) . All comparisons below ( which are generally indicated by words such as “ increased , ” “ decreased , ” “ remained , ” or “ compared to " ) , unless otherwise noted , are comparing the quarter ended March 31 , 2021 with the quarter ended March 31 , 2020 . 2021 First Quarter Financial Highlights • • Consolidated net sales of $ 347.6 million increased 22.6 % from $ 283.7 million . 0 ° North America net sales of $ 300.6 million increased 20.7 % from $ 249.1 million due to higher sales volumes to the home center distribution channel , primarily due to the return of Lowe's in the second quarter of 2020 and increased repair and remodel activity , as well as from other distribution channels , which experienced an increase in new housing starts and repair and remodel activity . Canada's net sales also increased primarily due to higher sales volumes and were positively impacted by approximately $ 0.8 million in foreign currency translation . Europe net sales of $ 44.3 million increased 35.3 % from $ 32.7 million , primarily due to higher sales volumes and were positively affected by approximately $ 3.6 million in foreign currency translation related to Europe's currencies strengthening against the United States dollar . Consolidated gross profit of $ 162.3 million increased 25.2 % from $ 129.7 million . Gross margin increased to 46.7 % from 45.7 % . North America gross margin increased to 48.5 % from 47.7 % , primarily due to lower labor , factory , warehouse and freight costs , each as a percentage of net sales , partly offset by higher material costs as a percentage of net sales . Europe gross margin increased to 34.4 % from 32.7 % , primarily due to lower factory , warehouse and shipping costs , partly offset by higher material costs , each as a percentage of net sales . Consolidated income from operations of $ 68.4 million increased 38.6 % from $ 49.4 million . The increase was primarily due to the increase in consolidated gross profit , partly offset by higher operating expenses , including stock - based compensation expense resulting from favorable operating performance in the first quarter . Consolidated operating margin increased to 19.7 % from 17.4 % . ° North America income from operations of $ 69.4 million increased from $ 53.6 million , primarily due to the increase in gross profit , partly offset by higher operating expenses , including stock - based compensation and depreciation expense . Europe income from operations of $ 2.3 million increased from a $ 1.7 million loss from operations , primarily due to increased gross profit . The Company's effective income tax rate increased to 24.3 % from 21.3 % , primarily due to lower windfall tax credits on the vesting of restricted stock units during the first quarter of 2021 compared to 2020 . Net income was $ 50.4 million , or $ 1.16 per diluted share of the Company's common stock , compared to net income of $ 36.8 million , or $ 0.83 per diluted share . 5