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EX - 99.1 2 q22021 ex991 pressrelease.htm EX - 99.1 Exhibit 99.1 Press Release dated July 26 , 2021 SIMPSON MANUFACTURING CO . , INC . ANNOUNCES 2021 SECOND QUARTER FINANCIAL RESULTS Pleasanton , CA - July 26 , 2021 Quarterly net sales of $ 410.3 million , an increase of 25.8 % year - over - year Gross margin of 47.9 % increased from 45.9 % in the prior year period Quarterly income from operations of $ 101.7 million , an increase of 40.9 % year - over - year ; operating margin of 24.8 % increased from 22.1 % in the prior year period | Quarterly diluted earnings per share of $ 1.66 , an increase of 36.1 % year - over - year Declared $ 0.25 per share quarterly cash dividend Updating full year 2021 financial guidance 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 second 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 June 30 , 2021 with the quarter ended June 30 , 2020 . 2021 Second Quarter Financial Highlights • Consolidated net sales of $ 410.3 million increased 25.8 % from $ 326.1 million . ° North America net sales of $ 350.6 million increased 22.2 % from $ 286.8 million due primarily to product price increases that took effect in April and June of 2021 , in an effort to offset rising material costs , along with marginally higher sales volumes . In addition , the majority of the Company's distribution channels continued to benefit from increased U.S. 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 $ 2.6 million in foreign currency translation . Europe net sales of $ 56.4 million increased 51.0 % from $ 37.4 million , primarily due to higher sales volumes and were positively affected by approximately $ 5.3 million in foreign currency translation related to Europe's currencies strengthening against the United States dollar . Consolidated gross profit of $ 196.4 million increased 31.1 % from $ 149.8 million . Gross margin increased to 47.9 % from 45.9 % . North America gross margin increased to 49.9 % from 47.4 % , primarily due to the aforementioned product price increases . Europe gross margin increased to 36.0 % from 35.1 % , primarily due to lower labor , factory , warehouse and shipping costs , partly offset by higher material costs , each as a percentage of net sales . о Consolidated income from operations of $ 101.7 million increased 40.9 % from $ 72.2 million . The increase was primarily due to the increase in consolidated gross profit , partly offset by higher operating expenses , as the Company transitions to a more normalized operating environment following 2020. Consolidated operating margin increased to 24.8 % from 22.1 % . ° ° North America income from operations of $ 95.1 million increased from $ 72.2 million , primarily due to the increase in gross profit , partly offset by higher operating expenses due to higher personnel costs and professional fees . Europe income from operations of $ 5.9 million increased from $ 2.7 million , primarily due to the increase in sales volumes and gross profit , partly offset by higher operating expenses due to higher personnel costs . The Company's effective income tax rate increased to 26.9 % from 25.8 % . 3