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Simpson Manufacturing (SSD)

Participants
Kim Orlando Director, ADDO Investor Relations
Karen Colonias President and CEO
Brian Magstadt CFO
Daniel Moore CJS Securities
Tim Lange Robert W. Baird
Kurt Yinger D.A. Davidson
Julio Romero Sidoti & Company.
Call transcript
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Operator

Greetings, and welcome to the Simpson Manufacturing Company First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host today, Ms. Investor ADDO with Orlando Relations. Kim Please begin.

Kim Orlando

as ladies Simpson to afternoon, call, company statements and events. call. welcome Company's first the such forward-looking discuss gentlemen Manufacturing may plans quarter this and Good On and future XXXX conference earnings

of any results factors, actual events, are differ materially from Forward-looking which prediction subject vary may statements, future like and may to these statements.

issued reports, corporate website. The replay SEC factors the cautionary a today is the press is at the company's approximately press Please filings on and company's and in X:XX or that webcast will PM also statements call company's Eastern the available on Today's being company's discussed Some earnings which are and Time. be website, company's available available of www.simpsonmfg.com. release website. at these note the was release on the are public earnings

to over and Now the Chief I Officer. Karen President Executive turn would Colonias, Simpson's like conference to

Karen Colonias

our the million, net to and to a $XXX.X in with mainly had good afternoon increasing year-over-year sales volume. sales year We Thanks, growth Kim everyone. XX% start first due strong to quarter

first recall may negatively XXXX of weather. you As impacted by was severe quarter

who been into plan in months has on have unveiled difference. longer six We plan, know diligent with more welcome change role ago, all a employees our been their as and strategic clarity have which openly to organization, execute XXXX term financial we just objective. provide will plan we make continued our to The our our a within communicating

to company. will improving our objectives sheet our working goal and take organic and They balance great steps in view focus on already improve profitability, will Simpson exceptional key rationalizing oriented discipline. from cost these I company we our detail. companywide culture, our as structure management necessary elaborate growth, capital XXXX include Given overall to what a on now believe we an

XXXX announced XX.X% from believe $XXX U.S. to rate for sales net consolidated our growth effort on rising through material of we end, increase of all an reported raw organic million. can our an We we net price continue in X% our approximately products, sales XXXX offset to achieve Subsequent cost. an compound to connector annual wood quarter

after XX into our assumptions our notice price we period our properly provide a revenue profit effect for the before us day to Home of product increase reminder, anticipate in prohibits into inventory ahead is which in growth a maintain the our gross order by a will effect us mechanical clause with it customers go a levels. We $XX top announcing strong goes the As line significant million the pre-buying price manage our line increase, that into anchor Depot. factored Also will help for annualized increase mid-June, margin. opportunity with

the at in next both solid a for which repair market to into to indicator and rate. XX% Western across XX, expected also X,XXX we be our over stores growing a foundation few continue three out a rate digit Further of are years fasteners. housing been March continue positive, provides grow markets U.S. Nordic leading growth which rollout overall anticipate to at in connectors mid-single of Europe completed the rolled annual an the our will Home remain expect business accomplished U.S. XXXX. starts conditions has In locations for presence Depot it We European and with As economic XXX similar our remodel the into approximately and all by

medium increased truss in gains component up to of assumptions both Lastly, truss include proprietary we our modestly grow sized and remain concrete approximately top share include by addressable conversion current quarter-over-quarter, market space on our XXXX. our which track, XX% XX% software In plates our were share market line products. by Truss utilize products software. growth our of sales manufacturers to $X.X concrete our who purchase and the billion a supported

would investment, itself to we strategic prioritizing connectors by growth either I the stringent would to supported or acquisition like add That pursuing it, meets set not target present in organic reiterate open we space. acquisitions the are attractive fasteners, value if that pursuing we software of While to it to capital in tuck should in repair be concrete are said company. criteria an the

XXXX do documents type When to deepen strong partnership by completed we management construction collaboration around LotSpec our offs in an quarter to builders with applications engineers designed of for complex Visions, CG software. effort the productivity and home designs of and During a purchase acquisition to is solution. platform. LotSpec compatible will facilitate Visions in design efficiency with option optimize key architects scalable builders, this software top with software applications to instant asset our builders and of CG to coupled and industry LotSpec solutions with offering full complete abilities standard continue essentially suite the take

to our strategic leading announced partnership being plan we with cloud-based production construction automatically partnership software detailed LotSpec take-off in addition, between system. and value systems information Solution, construction trusted software. offers the Visions' CG its with estimates, our designs and strategy building to the Hyphen and strengthening well platform, We Hyphen while solutions to create industry's company. existing efficiently flow preposition software software management a partner that through asset strategic and exchange believe align In purchase the specifications continue purchasing to integrated the more our Hyphen

on second to objective focused we rationalizing competitive structure without keenly our improved our As drive cost profitability remain our sacrificing states, edge.

of building what construction achieve net industry expense sales to By proprietary sales a the we the target safety trusted to Our solutions, XXXX range ensure a operating capabilities in brand apart improve with testing end of relationships, improve and XXXX our is XX Today, our of reliability of percentage code net our our we and Simpson involvement sets total to XXXX, of mid-XX% restating deep of the a of years as we our can in expenses network by range. percent XX.X% to plan, continually are as standing XX% plus long to from XX% officials reputation believe operating practices. to XXXX. total

discussed, As aggressively operating additional will including to will SAP levels, expense less which dollars discuss XXXX planned XXXX shortly. than we I manage total costs, our previously be

since working have then to incremental uncover the with been enhance We management [ph] efficiencies. opportunities operating to our

expense well prepare with have the transition us projects, We our potential members are XXXX reduction our leadership on additional senior in way office involved each and to dedicated beyond. of with for operating and

producing completed should to from an have move updates truss look to plates America order operations to to an of now our truss While reduced they in-depth will coming our costs to as as levels operations. consultant forward this quantify benefiting in freight of of a continue efficiency plates at incremental target and XX% expertise continue income was reduced truss million North end those have $X have facility by in the operating Europe, share. perform substantially In of costs from process prior to costs we the projects best plant that to we too margin plate it times footprint truss and be manufacturing manufacturing annually our we we approximately into In is move reduce our our from material early in customers. approximately move is result wood We When branches. these still XXXX. in utilization. sales former completed the are the our to and sold, connector will quarters, to on by The analysis savings, the impact transparent maximize we expect plant

between team to management European our consolidating operations are managers. two European of head now the we responsibility addition, dividing In only one encompass versus

While are margin this did not XXXX. of reiterating impact regards our gross In plant in target provide XX% we quarters the by we our first will in quarter coming costs. concrete, details severance to consolidation results

Our drive on on us space categories six the in enhanced this product narrowed distinct concentration high profitability. focus concrete to margin enables to product

software associated we evolving expense component will continue builders software and toward allocate Turning to to truss dollars development manufacturers. the support effort, our both of to needs with

core critical software efficiently solutions business. of over customers the preservation their to and XX% is conduct our requiring growth connector business, to Software of with our wood

We have manufacturers we've to medium-sized valued software smaller our while to on plates support and component our corresponding converting been already converted. manufacturers component truss primarily focused solutions, purchase continuing

dozen in process. over conversions a have We

million and project progress began, million million. planned million of now will million SAP currently wave, XXXX $XX including to implementation incurred first expect SAP are these a XXXX. of improving XXXX, one wave capitalized we Therefore, to $X cost we needed approximately be we That locations the due in $X continued from have continue costs. that focused and ways, as $X we through versus capitalized In amortization incremental million $XX offset incremental to capitalized we in the that expensed to onsite efficiencies estimate was total Since the said, some costs transition. additional ensure to on of estimate could million $XX such Our approximately has in QX. including be of $X.X expensed to smooth amounts SAP project approximately cost from support of and live we went future a

The times times XXXX tightening discipline we reduction overall working balance efforts, continue to double Through receivables. XXXX. and two inventory believe, our can capital by to through rate pertaining involves sheet inventory management third our four XXXX our these management and key objective from of turn we plan and payables our to improving in

to approximately completed, compared levels as which has three Phase In been Our March been rightsize total we elimination an through roughly XX,XXX X, were transferred working came SKUs to of flat not of have SAP of year. system. our of to last inventory, our SKU our inventory reduction. in the XX which included effort phases

working process, SKUs. these replacement identification phase period to out products. currently are a slow our two through We've over been to the transition working over as the customers and we involves removal convert of which phase SKUs of moving We

next estimate for we three, room approximately have finished goods should inventory three raw and currently our materials phase to XX% the For we amounting over of reductions, years. further

in Importantly, which our us ability I'd is been positive often working improvements incremental within external efforts, assist inventory a product like have note SKU more very support to these quarters. experience. details hours. to management, look to identifying our customers, s delivery will our coming the in has reductions impact been our lean to to forward which we our not sharing to Further XX We to that consultant

to $XX.XX XXX,XXX to to the confidence $XX repurchased our million remain continued quarter, approximately during generated per of the at an We the period. flow operations first which of of repurchases of XXXX of committed an from pay average was price in we've share our to during used compared million plan, first share shares in using out a stock part quarter against execute million. quarterly the prior our XX% and valued cash $XX.X operations in $X.X We evidence year cash common dividends. for cash cash estimated returning As the million minimum in to $X.X of stockholders flow dividends our form in of from

years that to Over in can we the plan cash we invested have XXXX substantially targets, past stockholders. of range our XX.X% our on XX% returned operations believe three XX% on Through capital delivering improve a from return to from XX% of approximately XXXX. we XXXX flow to our by

provide to as goal returning continuing this will improving total and additional a operational towards shareholders. the inventory continue key repurchase marked perform activity. the operating ensure we strategic aggressive We reduce quarter our tracking by believe our are continuing start our continued expense sustainable to long and dollars, growth to In to to strong turn capital our summary, against excellence. share term objectives our to first rates plan We year

our and financial these coming our turn call forward updating I'd goals, you on on over execute ability XXXX look aggressive, now confident current to While like our in quarter the our will to Brian discuss results. who are progress conditions the targets stated market given we to in to are quarters. first

Brian Magstadt

and you, our everyone. today. Thank I to good you am results discuss first afternoon pleased financial with quarter Karen,

first compared sales $XXX.X for XXXX. Our were quarter quarter first in million XX% up million, the consolidated to the of $XXX.X net of XXXX

line in increased In as X% to the due segment in sales first net unit increased represented the sales of of unit Poland divestiture the almost the translations. in Sales $XX.X prices in growth increased by the quarter as products XX% in by volume net Europe and in America total in sales of both products quarter contributed our the partially Fastener year-over-year well business sales U.S. And million, XX% sales was was the XX% of current quarter, year-over-year quarter. the to parts quarter heavy foreign of of XXXX. XXXX. and of $X which currency construction Within fourth impacted of net net offset North with Europe concrete increased first prior Romania in primarily Gbo volume impacts due from XXXX, construction first year the total which sales $XXX.X western net quarter XXXX, to first of positive primarily Wood over million and the to sales rainfall million, represented

XX.X% profit recently wood in year margin U.S. Currently basis Compared our profit Our first effect compared primarily material of margin products From impact year margin from profit quarter was to a increased full XX.X% XX.X% not prior experienced ago gross product per quarter increased first pressure million anticipate announced of perspective, margin to by material margin to consolidated do gross year. quarter, in raw factory of profit connector prior a the were gross costs. increase by resulting wood from XXXX in steel million first quarter. In go we the increased will which profit to$XX.X% prior XX.X% Europe profit products, in On our guidance in the $XXX.X XX.X% XX.X% in and as gross prices first cost, X% XX.X%. the concrete quarter due approximately gross was quarter the to XXXX compared margin a to year XXXX, which on costs. the due of higher of quarter due to products of price decreased into quarter year our compared our result the basis XX.X% reduced America profit gross $XXX.X the was second XX% the to offset in for to partially consolidated on XXX to our segment a XX% to North first this margin half in our points, primarily declined gross year period.

operating to cost our quarter first Now turning and expenses.

X.X structure, engineering decreased cash As and research $XX.X our support of North $X.X increased to the These development in compared and upgrade the consolidated level, million our per sharing by increases approximately XX.X expense quarter the and SAP quarter. decreased America professional costs $XX.X consulting of research was part initiative in Also grow and declined development hardware stock-based development the by to as ongoing million and and prior X% stock-based of increased due included by year-over-year to efforts core and selling for to to IT $X.X segment the amortization. year-over-year compensation systems compared decreased million result X% and expenses is selling and our profit quarter America for primarily decline The due and improve were cost General sharing a year million. fees, $X.X expenses profit depreciation expenses. engineering primarily the million and and On to cash and in in a Europe. decreased the in connector G&A project, increased by $X North million, quarter our software million year million administrative year-over-year On year segment ongoing related prior expenses to to a by compensation offset Consolidated expenses in help Europe administrate expenses first to decreased for compensation truss costs with business. quarter basis associated general to partially decreased X% expense. expenses. and stock-based the segment in

total our expense operating net percentage reducing sales. to committed are We a as dollars of

the first of quarter quarter. XXX points expenses sales a XX.X%, prior net year XXXX, basis the operating of For as was total down from percentage

pleased of quarter related compared ERP in which to ERP first prior the costs the of with of the related quarter. year million result this million $X.X cost $X.X in are implementation XXXX We includes to

$XX. first million consolidated operations $XX.X Our quarter first the in increased compared XX% quarter the year-over-year from income for to million, XXXX. X to of

in declared Texas operations $XX operations for million $X.X a due from State of loss a year of disposal assets in North Included XXXX first included approximately loss million, Europe the prior were to from and of property income of SAP which Our gain $X.X operations from primarily in of related increased compared of of and $XXX,XXX XXXX. year-over-year in was a quarter in the the $XXX,XXX in In million million from period. America quarter XX% to was $X.X income the domain. costs first the loss a sale to Eminent on operations Europe's quarter

quarter As a XXX of XX.X% of result basis increased our operating margin a from the income on first approximately consolidated points basis by XXXX.

in the quarter to rate XX.X% of XXXX. Our XX.X% from decreased effective first tax

in XXXX resulted reminder a bargain rate. impact acquisition prior Fastening first tax positive our quarters As of connection year X.X% of the with recorded the Systems effective to a gain purchase the in quarter Gbo in

our net fully per million share fully income for quarter consolidated per aforementioned or first It's an quarter year consolidated to quarter. important to that million diluted $XX.X compared $X.XX in the net the was share. for included million $X.XX of bargain impact per of the $XX.X gain Our note in share $X.X purchase first of diluted net prior a or of income $X.XX XXXX the income

dividend July shareholders of quarterly X, share, for capital as our XXXX debt the and to related of amounting will flow, project. be balance X% and a Capital April leases a approximately the costs to July increase compared per on free, were remain our expenditures the of dividend XXXX a of On of March XX, The of approximately and with of over cash software, million $X.XX record million. first equivalents only XX, in million Directors December XXXX. represents totaled at to cash a for quarter, $XXX.X cash XXXX to including of as Board cash million XX, primarily related which We decrease to $XX.X balance portion investments were Turning XXXX. $X.X ERP small and dividend. payable of $X.X the $XX.X sheet XX, equipment quarter declared capitalized machinery, million,

quarter Further In price XXXX $XX share shares the repurchased $XX quarter delivery authorized at program, of of shares end XXXX, for our which average total million. repurchase an worth million million current of which expires received repurchase we share remaining accelerated an The repurchased XXX,XXX a addition, $XX.X as the first per program the for during additional accounted under we've the XXX,XXX the final million. $XX.XX in the for $XX amount $XXX.X December of of during of at million shares initiated is quarter XXXX. during

repurchases believe our priority at share will stock a good versus our as mentioned, a expect where we is level completion remain plan. be we Karen of XXXX value current As upon to

we Before to our turn it I'd over like outlook. questions discuss to

to become we due margin mid-June we effective guidance. pressure issued enable will material in achieve Although will our to experienced the previously cost, quarter mid-April believe the us we which price currently increases rising during announced in

As outlook such XXXX for we are reiterating of full the as follows. year our

margin to rate summary, Thank to like $XX expenditures and which profit are be our attention strategic million as We capital pleased dedicated tax pure that in expense be up XXXX $XX million XX% million to time with be to to $XX expect plan our your updating million depreciation, be for we open $XX our to the Operator? XX% initiatives and shareholders the and range depreciation now to million call of $X you to in for will forward quarter look range be the including is to questions. range results today. the XX%, we maintenance. amortization our We'd $XX of $XX million against to objective. execute first continue to million to and and consolidated In XX%, of $XX to gross effective million in in the to of of range the

Operator

will comes Please [Operator Thank Daniel you. question. Instructions] session. proceed Our Moore question-and-answer Securities. CJS conduct first with a question we from with your this At time

Daniel Moore

guess Want Good we've first line one had impressive from that and afternoon, color. increases, than you've that in Karen XX.X% the price you Brian. guidance to the inflation given of seen. getting Thank more price to and holding through the and I customers? gross put is you're feedback what's some time on initial increases the for biggest the touch the margin certainly

Karen Colonias

in pretty it's going the increases information and we Dan. on of see pricing. steel. material what indicative for XX.X% price what out tariffs is from Hi, The and think and substantial made getting anybody I Certainly we the still had from is pretty of builders from what's the market market predominant pretty in much see that our and customers the steel are

in So certainly the it's prices. for very steel with long time a understood, about it's on publicized been what's going market

give they're of that Our them day price increases. process that and customers a accepting notification in XX appreciate the we

Daniel Moore

helpful. Very

quarter, impact had sensitivity of shifting can raw Brian, price revenue material give the both Just in terms us of through the growth? you pass gears FX the on and the increases

Brian Magstadt

pass-through increase later year. in noted price material will Raw not that Karen significant. be this

me - a bear with second, million Foreign $X.X exchange about impact. positive had a just a

Daniel Moore

great. lastly and like, back LotSpec, give it how be multiples you want fits EBITDA revenue looks prepared you the would Thank what jump to in can Perfect. And more queue. in purchase any share, I'll on remarks color CG details you. Visions price, any beyond and

Brian Magstadt

on Sure. it's have a it's wasn't It per it asset, basis application not was an we purchase effect software a of It's really and was go on on price that but a Brian. it basis say. annual little immaterial It bought. forward will significant. Dan, an bit depreciation the business an

Karen Colonias

And application and really both an just a for LotSpec, little bit it's Revit. AutoCAD more about

XD we what's of platforms drawing software convert those being called do drawings take-off model, platform. AutoCAD push us is a software and Pipeline through CG that's XD can into So what to part then it Revit which a which is allows XD Visions

So, us builders. for take helping easier off the really make it's much that

Daniel Moore

Got you. it. Thank

Karen Colonias

Sure.

Operator

from question Tim with next comes questions. Robert your with Lange Baird. Please W. Our proceed

Tim Lange

afternoon good Hey, everybody.

Karen Colonias

Tim. Hi,

Tim Lange

So on flow. free cash maybe

in quarter, since the think for first was flow the I XXXX. cash time positive So I think free first

was maybe think with in year how we capital kind as tie of about flow is for free the reductions so to there should I wondering of inventory? working just And you guardrails some cash if the some

Brian Magstadt

this Tim, Sure Brian. is

prepared seasonality on in $XX flows from significant was cash on cash acquisitions lower much in QX, sure But I'm perspective, part cash. net and remarks, a QX but the net we So operations largely I'm the - than million, Karen as noted of year From were received much prior not you're were last flow a use in a right, flow seeing CapEx the it quarter-over-quarter. operating free years. that versus changes a cash in

of So was ones this one a you'll bit primary was less I in the - the think inventory see quarter. change a

pretty to working it's were that, other items it. think provided. that use other from I much There a some and changed movements capital

Tim Lange

it different Okay. way. Maybe I'll ask a

So if I look - do you expect working versus capital to be 'XX? down year-over-year in 'XX

Brian Magstadt

we're via Well, extent and to the that returning buyback yes. to dividend, cash shareholders

looking heard part two You've the a then see how AR talking we're of working from that of get us to have look were but far about and those efforts as to I be AP some less. expect we at to we improvement at the capital, We'll if inventory elements, would cash elements. with and

Tim Lange

kind the realization stick? Europe? maybe XX.X% in increase And That's Okay. price anything increase kind increases back two through you And percentages. in on back give would to how in of, then when a pretty But have good - is don't second, on typically of put to questions, that you one. America, terms good to if the in just what expect then you terms pricing that price in of you North of through put price have

Karen Colonias

also some the have Yes increases pricing the Karen. increases European it's we in of happening significant year. some price They put that part was in in hi, the in market. Europe did So the steel early Tim,

staggering think conversations part once our taken what's increase of mid-June to the have customers to our year. first certainly customers From that get on? that in very at price needs what anticipate that again of that price was and we increase that the you be stick. look through we justify timeframe majority to work hard the So the as as again So based of with that and I of standpoint will

Tim Lange

Okay.

Brian Magstadt

Hey, item flow the on working Tim, can cash the give on ops. I - if from you one

cash. a that was of use as a reminder, million Just about purchase last of bargain $X year, gain

to net the year's contributed of that also So differential cash or use in primarily the QX. net last

additional So I provide clarity little just to wanted a there.

Tim Lange

great. Okay,

to good out, that. guys. Good see luck, Now you call appreciate that's I

Karen Colonias

Thanks.

Brian Magstadt

Tim. Thanks

Operator

Thank you.

Davidson. Kurt Our with questions. next Please your D.A. question from with Yinger comes proceed

Kurt Yinger

you sort and talked that or a from was goal target, Yeah, quarterly When what XXXX year the of full the Brian. hi a fourth about run-rate quarter Karen operating that's by mid-XX% you're expecting expenses

Karen Colonias

full the That's goal. year XXXX

Kurt Yinger

then and the quarter year, to with be we the rate high the Okay. next should here XX% the the three XX% for in at guide as look full we over of lower tax to And out quarters? first expect end that the

Brian Magstadt

tax the rate. On

Kurt Yinger

Yes.

Brian Magstadt

Yes.

I think that's right.

Kurt Yinger

talk are manufacturers, Myer you and some between it mid could truss the [ph], size bit about little differences then And large small manufacturers? like gaining like mid-sized a traction, those sounds with

Karen Colonias

needing Sure, so from less little are need software complicated they a we're of set standpoint manufacturers sized the what support. small the and a that has to feature the on from typically they a locations fewer

trusses, not panel. wall truss using floor not again manufacturer systems just and designing size small So

go as - size becomes the On more up large the medium complicated. we it

many, of then size manufacturers size panels, a a require truss truss trust they floor more manufacturer require So locations. locations certainly and design management floor The reason we and are medium more as many larger wall getting system. use the have to and some they They as typically get systems the as component and we well has roof software specifically good traction was directed a some new had put work Conference we conversion. by those force our is additional October last Component the manufacturers component medium - which size sales we we and medium have manufacturers to at released those software sets feature got of received our on well Manufacturing the component with release size Building out which

Kurt Yinger

discretionary any this. talk about can there your Great, and are CapEx But if sort I And you I the thanks apologize assumptions that? within year Karen. spends missed lastly, of for significant

Brian Magstadt

do is this Kurt, - So Brian. we

annual for maintenance We about sort projected a amount of we have the $XX to third million $XX that what million got year. CapEx, of called and

based timing is finish into at next carry assumes amount that because rollover so So by spending year often would we're we projects year. the looking year. that the to of all the that it project this early is part that finished But are projects projected and may end over on of the

due up by it much bit end little that from completed varying to is to again the So, may year. a end in of the use how put and

Kurt Yinger

it Great, thanks, I'll turn over. Brian,

Brian Magstadt

Thank you.

Operator

next Thank Sidoti proceed our your question with Please you comes question. Romero from Julio & of Company.

Julio Romero

Hey and Brian. good afternoon Karen

Karen Colonias

afternoon. Good

Brian Magstadt

Julio. Hello

Julio Romero

color so up sales you Hey, gave appreciate the on year-over-year. truss just that

don't new based customers? granular, that that like some resonating other extent on that any go you features be offering I you is any out cloud really with software driving called if that's can based or the more can the might to that, that You - features know of

Karen Colonias

we've that as mentioned cloud base. two on it number our number modular the a software in in is think is I and Yeah, past design one

Additional are things the feature manufacturers to it's always software to added needed more make component and efficient. sets

survey that get So potential software. to input customers and as our that those efficient, we're we input looking they be do the the more need that we things what are customers into for, and have

put as really manage we our not have the elements software can inventory So made mentioned efficiently produce And them before management more it's those medium I those and help that but - that design manufacturers efficient. size just component their our it's produce truss only trusses.

that makes them. to be our software them truss appealing worth it Simpson. worthwhile Again more design that so So it's something converting it's management is the to efficient software has that to is

Julio Romero

the you with others to going to collaborations And management helpful. and about those color with we should explore partnership an point that types just can the there continue in Solutions, the expect forward market? Simpson That's on software, of additional Hyphen give

Karen Colonias

Sure.

for is in the cloud-based Hyphen software space. a ERP builders So, Solutions leading

into joints would so builder can imagine which takeoff, on do So they XD model, vision. or frontend when a And like or data a the a that whether if the you pipeline which joints an to get to AutoCAD when has ERP information to them can system, XD, XD XD sort can in of with help you be warranty able would our is push into want that and happen things. you large that scheduling,

most the predominate of software to current the and connection so that much that builders. of our life Hyphen their makes allow data, frontend a the solution for available. easier with are So, project Solutions free both builder's is solutions ERP the And Hyphen with this is backend again flow used from

the a nice again just data it's exchanging the it's been faster - we it's a to process So, that make users. partnership that have a and end for

Julio Romero

Thanks I'll queue. my it. jump questions. back into Got taking for

Operator

We a Securities. with proceed your from with Daniel CJS follow-up Moore question Please have question.

Daniel Moore

get current that Home are again. can look you mechanical rolled and Depot - where number missed out the stores what's anchors revenue the just of Thank now like? we rate I run

Karen Colonias

you not We're a run that currently X,XXX the stores, several anticipate reason Home and convert is year. hundred is we the that Of to displacing right give the we rate And we'll in is I in but XXX, a run we're someone think stores XXX It's hard currently little locations. rate, the Depot. this on are number. in Dan the there

to find is it will those a you But space takes on it are and little giving that be do bit a quarterly update set longer So we progressing. we what stores. how

Daniel Moore

of set lastly, inflation And Helpful. raw if growth prices organic we that move of goal? or of net would material to continue update a you goal is think higher should your X%

Brian Magstadt

little to more I to more a provide possibly think color about that have think next one a we are quarter. going little bit Dan, bit

Daniel Moore

Understood.

again. Okay. Thank you

Karen Colonias

you. Thank

Brian Magstadt

Hey, Dan.

Operator

today's would conclude this At I time, you. to teleconference. like Thank

You may you your disconnect at lines your And thank for time. this participation.