Simpson Manufacturing Co., Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, reflecting modest revenue growth but a decline in profitability compared to the previous fiscal period. The company, classified as a large accelerated filer, recorded net sales of $587.2 million for Q3 2024, a 1.2% increase from $580.1 million in Q3 2023. For the nine-month period, net sales reached $1.715 billion, up slightly from $1.712 billion in the same period last year.
Despite the revenue growth, income from operations decreased to $124.9 million in Q3 2024 from $140.2 million in Q3 2023, and for the nine months, it fell to $353.1 million from $403.6 million. Net income for Q3 2024 was $93.5 million, down from $104.0 million in Q3 2023, while net income for the nine months was $266.8 million, compared to $299.2 million in the prior year. This decline in profitability was attributed to increased costs in personnel, professional fees, and advertising, alongside lower gross profits.
The company’s gross profit for Q3 2024 was $275.1 million, a decrease of 2.8% from $282.9 million in Q3 2023, leading to a consolidated gross margin of 46.8%, down from 48.8%. The gross margin for wood construction products decreased to 46.3%, while concrete construction products saw an increase to 49.8%.
Simpson Manufacturing continued its strategic growth through acquisitions, completing several transactions in 2024, including the acquisition of Calculated Structured Designs, Inc., Monet DeSauw Inc., and QuickFrames USA, LLC. These acquisitions were not material to the consolidated financial statements but are expected to enhance the company’s product offerings and market reach.
Total assets as of September 30, 2024, increased to $2.897 billion from $2.815 billion a year earlier, while total liabilities decreased to $1.034 billion from $1.146 billion. Retained earnings rose to $1.606 billion, up from $1.383 billion in the prior year. The company declared a quarterly cash dividend of $0.28 per share, reflecting a slight increase from $0.27 in the same quarter last year.
In terms of operational performance, North America accounted for the majority of sales, with net sales of $461.4 million in Q3 2024, up from $456.8 million in Q3 2023. The company’s focus on expanding its product lines and enhancing customer relationships is expected to support future growth, despite current economic headwinds and increased operational costs.
About Simpson Manufacturing Co., Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.