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Simpson Manufacturing (SSD)

Participants
Madeleine Myers Investor Relations
Karen Colonias President & Chief Executive Officer
Brian Magstadt Chief Financial Officer
Tim Wojs Robert W. Baird & Company
Daniel Moore CJS Securities
Steve Chercover D.A. Davidson
Julio Romero Sidoti & Company
Call transcript
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Operator

Greetings and welcome to the Simpson Manufacturing Company's Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief 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, Madeleine Myers, Investor Relations. ahead. go Please

Madeleine Myers

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

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

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

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

Karen Colonias

in maximizing record earnings increased we year our XXXX common XX% repurchased year afternoon, strong cost rate $XXX.X for remain on of These with per solid organic Plan, our operating represent by $X.XX Thanks, initiatives, Simpson, of solid unit income approximately the good outlook of to sales our due results of of the a XXXX, average aggressive the produced we business. operating under XX% period. XXXX, resulted XXXX achieving announced Madeleine, I'm an We net which towards execution driving our operating pleased confidence value. include: $XXX.X long-term $X.X the income net prior-year combined our million, and diluted both percentage focused an result third at return we This, of from capital to our these full to XX% $XXX.X of X%; of the Net XX% annual shareholder financial operational with quarter billion, and in operating sales of increase year-over-year. of XX%; confirm, our our expenses in continued goal compounded volumes to increase key sales everyone. These of Today consolidated targets year range range efficiencies XX% reflecting to XXXX, approximately achieving on strength and in of XX%. to progress and increased to stock, million targets. XX% XX% as sales our net income doubling invested in Simpson. prices. and of share, and growth rates total was to the of XX% achieved full $XXX improving inventory focus our compared margin to XXXX million a Throughout on increases in a cutting an a million to for turn reducing we

while XXXX announcement, that gross which concrete XXXX. remain a the included: specific began our improvement of of of a expenses We as range year-over-year. point strategy provided XXX basis significant adjusted impressive slightly operating be our achieve margin mid-XX% reflects Plan this net we of our Concrete also pleased below These basis in mid-XX% X.X% percent with our this margin opportunities reviewing implementing margin in part the are focus bottom-line additional with benchmarks to improve sales operating to improvement year-over-year; income and XX%, XXX profit of more expense European range; As was products in of mid-year impairment. we fiscal the our as an we we XX% following: XX.X%, goodwill severance between SAP, income we margin of profitable gross new these achieved and target, goals, operating net on the below Europe to a and profit very of approximately a direction to item, Concrete levers relationship excluding business; slightly Europe's X% in our and XX% percent target XXXX approximately for currently a XXXX A operating markets. and one-time sales XXXX. points an a of to excluding In

sales against a worked acknowledge team to to consumer including and as and wind to last goals are commitment discuss impacted a strong comparable approximately interest work That housing before client were volumes our employees into of said, million, a testament and a low where low selling rising hard given demands conditions, target some our now our versus results in XX% all volatility timing in may project-based building their to all a these U.S. provide unemployment and amount Simpson. to meaningful a the labor financial those is experienced housing we business, our and for Our in earthquake year-over-year and for content increases are U.S. $XXX.X fourth extremely attributed level basis result the on XXXX of market increased starts believe economic the quarter shortages, leading I'd were to to U.S. indicator there achieve year-over-year update hesitation We market availability. thank in employees of in healthy December. factors including rates, due quarter many an I'd stricter We strong fourth rates. confidence, regards at by the U.S. in to start into in housing period providing to have our the softer factors potential quarter extreme been initiatives. have unpredictable of year the of in starts, the of there dedication. fourth like and the hard net sales requirements the execute we highlights economic western few underlying primarily and homes the the starts, housing our like of minutes X% from support design quarter uncertainty softer average which the acknowledge southern Sales culture company for Fourth concerns. from take operational is from on to to here down prices. Europe. and regions

a relatively buying postponed Demand patterns to January in further remain we due been strong; December uncertainty. was stable. ahead, expect the have may short-term that demand Looking indication to

long-term, the the rate remain an cautiously annual few mid-single-digit years. U.S. next over starts at that we increase the housing optimistic will Over

fourth resulted Our were This quarter a Brian XX.X% more our and and combination of gross quarter detail a gross shortly. our discuss this profit profit of profit dollars gross as of XX%. of costs, XX.X% projection material, well impacted full year to reduction margin ultimately between fourth will in to XX.X% pressured factory, inventory impacts increased as related by initiatives. labor in one-time versus margin

in relationships profit through our it industry. our capabilities, this industry that profit year came reiterate below proprietary gross of to margin While our one gross in attributed is expectation, our service. of the we've deep to trusted customer testing highest full is remains built brand and long-standing which Much the margin superior reputation, important

I'd stores. XXXX, an Depot to our introduction focus Now update Home our In regards the space to cost which anchor at our stores due on profitability, to of a the of market operating our into pace mechanical Throughout to come. provide to rollout like to share, customers years much our improved technology share provide drive growing constraints our growing key at best-in-class and continues rationalizing Depot on occurred original structure and infrastructure slower Home our to service for the than our the to initiatives, progress. market expectations product improving

an the has products mechanical Currently, identified Home Home the XXX in Our second that Home expect total locations. Depot XX bringing of anchor were end the in XXXX, by set quarter. we will stores additional set Depot stores Depot to be number XXX

as Gbo full relates We track Nordic complete. annualized and plan, France areas. by of Europe, continue and Fastener in with of revenue XXXX, connectors opportunity products in the once we the presence X,XXX into In to to the to of rollout into a wood the $XX line representing accomplished expectations anticipate complete rollout is on all our stores be the the Nordic will progressing line million increasing region in end it continue

and Throughout this at a and removal program, involves to SKUs offering, over we operational SKUs. program. SKU completed the identification approximately involves start end we the purchasing X,XXX all line. Now, will further have XXXX I'm SKUs. non-moving updates. learnings of system. to developed was slow-moving our involves from eliminating XXXX We was XXXX, began course implemented moving reduction successfully to effort focusing we customers from phase, X to right our converted external at In improve our inventory ERP management XXXX, of other of end reduction of in the an as system, well which of and newly over and size XX,XXX our of on continued final products pleased the X three-phase completed with which our phase to the partnership of Phase focused on report our our this consultant At a SAP the of enable us we believe that our Phase main practices. as have

XX% Our goal of XXXX. by the additional approximately of by product our offering an end is reduction

that inventory we out are our subject While we are in we continue terms, pricing fluctuating material raw areas on which business focus uncertainties control. and to improving of marketplace, our the to cannot tariff

duties built was and our raw quarter a goods $XX As prices steel Currently, China. be of of in cautious and increasing finished first XXXX, effort of steel of our steel to million, result steel or availability. in our stable will the inventory. we've we and as from December third we our increases approximately the material an mitigate on of XX, of the X% remain balance $XXX XXXX position about with year-over-year continue along believe inventory XXXX, price impact increase In to will quarter million an tariffs prices

uncover with incur additional improve their Based programs in success consultant to a During we'll implemented and received. and working XXXX, basis. XXXX primarily benefits consultant outcome findings, our the management we capital focus efficiencies efficiencies. with our the from we XXXX, we fees on based go-forward partnership look have a on operating overall initiatives. We're expenses to this and findings to enhance based activity pleased worked some to on forward lean these additional the will In our rewriting on of that areas

SAP our I'm U.S. Our on execution. rolling branches we implementation XXXX track towards remaining goals will SAP very to our focused XXXX. early summary, complete. expect of our with on companywide In in operational until results and which implementation technology continues in take pleased We out XXXX remained completion

healthy are we will remain optimistic ahead, cautiously starts at housing Looking a levels.

the of solid detail. which pleased on continuing monitoring with the the we our warmer we demand enhanced experiencing compared areas we our to return operating period We discuss focusing remain call conditions January and like can we fourth business and to and against unusually our year-ago that a in XXXX I'd was of We repurchase experienced capital over with dry and to are more committed severe long-term goal to to winter. share executing ensure the financial weather and are growth, currently plan through Brian dividend. in sustainable the control more the shareholders quarter who'll leverage turn profitability valued now our to to are

Brian Magstadt

afternoon, results discuss I'm and everyone. pleased today. you Karen, good you, to quarter with fourth Thank financial our

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

$X.X local represented also XX% of approximately to by sales Europe level. in United net sales sales the related North $XX.X Concrete compared Wood in the quarter the that America to by to did Europe, year-over-year currencies of million in affected same of XXXX currency experienced prices. quarter we products X% as strong segment, quarter to to due sales our net net XXXX. fourth not XXXX for XXXX. net States products asphalt paving $XXX.X total net products impacted quarter increased Europe were of XX% represented at the in primarily million. dollar. weakening average translations, demand fourth were million, the sales reduced total fourth against decreased concrete foreign volumes net of net in sales construction increases Within flat XXXX the the year-over-year unit in of repeat construction primarily sales the in of business negatively In fourth X% sales

consolidated consolidated $X.X or margin $XX.X decreased X% gross in approximately from profit $XXX.X of fourth Our the to fourth a profit XX.X%. million million gross quarter of in quarter XXXX million resulting

in gross year-ago margin and production, profit period. material Karen conditions. in prior steel on to higher In gross our year-over-year basis compared and As costs in segment XX.X% to per our America quarter. Europe, the including profit was the was tightening a priced year factory costs, due resulting was from labor highlighted the XX.X% costs fourth increased North labor to margin lower primarily higher compared XX.X% XX% higher quarter market On decline overhead

decrease Europe in was gross margin was the Europe a pressured concrete to and a higher From quarter prior in XX.X% Our by perspective, which quarter the product than over fourth compared sales, products wood. on products XX.X% concrete gross margins prior margins our profit have in XX.X% in compared for wood year year quarter. were to year XX.X%

our to quarter expenses. and fourth turning Now operating costs

and general selling As decreased structure, quarter development expense. by net the year-over-year to by flat increased our year to a X% in the in were General engineering partly quarter. XX% to and year-over-year. to our associated increased higher Consolidated On costs, segment efforts Europe a due primarily increased advertising $X.X part decreased decreases as quarter professional increased declined well the million, declined in committed the IT-related fourth with year XX%. improve the expense America and and to expenses $X fees year-over-year selling total of quarter, to sales. remain to compared and cost dollars expenses were in million, and $XX.X ongoing America as G&A We North a the depreciation On consolidated in of percentage as partially offset to reducing which $XX.X for expenses in for decreases million Europe, and in were compared prior the year-over-year research by primarily severance commissions by to personnel These costs In level, personnel expense than personnel management fourth segment SAP severance primarily basis administrative and less segment our the quarter by and operating slightly consultants, they million and expenses consulting costs. expenses. expenses project XX% offset costs. million, and administrative increases due sales to due prior North $XX.X

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

operations in income quarter fourth year-over-year the the $XX.X from to consolidated $XX.X in million of In million Our charge. decreased XXXX. income X% operations XX% quarter In loss million from million to $XX.X of compared to to $X.X was million. the loss a fourth goodwill America, due compared $X.X from for to period, North Europe, decreased operations $X.X million a impairment prior-year year-over-year primarily

loss Europe's would have the been $X.X approximately from Excluding goodwill operations impairment, million.

income declined points from a our basis basis by quarter result, fourth approximately As operating on a XXXX. XXX margin of of the X% consolidated

XXXX, Our U.S. Jobs in the from effective tax to primarily rate decreased of XXXX. to Act XX.X% due enactment XX.X% Cuts and the fourth Tax of quarter of the

segment, or sale tax income included quarter benefit. per also in our $X.X share income Europe income fully quarter. million $X.XX estate. $XX.X net quarter in million impact $XX.X share had which on of diluted goodwill million gain was impairment fourth Consolidated the income the Consolidated consolidated net of was a impacted net Our to the aforementioned per $X.X after-tax by charge million real the net no prior or for the $X.XX diluted the of compared for year fully fourth

turning cash $X.X decrease XXst, cash XXXX, Now, and cash flow. million XXst, XXXX. our to million, equivalents and December balance totaled sheet At December a compared $XXX.X of to

debt-free amounting inventory with levels to same Our small $XX year. only raw to we to capital priced million. last last up XXXX material December We portion of were by million higher XXst, year of inventoried as remain period compared compared as approximately a leases the $X.X

included an operations capital approximately nearly $XX strong we from As million million during result cash to were million costs $XX.X or $XXX $XXX,XXX SAP quarter expenditures quarter $X.X of our and generated in fourth related capitalized a of XXXX. on focus of the of sales compared the which in working increase XXXX, XX% million flow project the Capital management, to year-over-year. approximately for

our dividends For fourth of capital expectations. dividends approximately We flow form to were million approximately the XX% $XX.X stockholders our our committed cash year with on repurchases quarter. including and share million returning remain during in expenditures XXXX in the annual basis. the million, an $XX.X minimum valued paid a $XX XXXX, in operations from full of to We in line of cash

three a XXth, to XXXX, flow per past January the Xth, over of to stockholders. On our share. our of cash will Directors returned payable The be cash dividend quarterly company dividend XXth, XXXX, we Over operations years, the on $X.XX of record declared from have April Board XXXX. of XX% of shareholders April as

our a average December During a the of at $XX.XX of shares for at $XX.XX stock XXXX, X.XX $XXX.X quarter an for XXX,XXX total per our per for million. price average price share common we an million the share year of fourth ended XXXX, repurchased of shares we million. repurchased $XX In XX, common and total of received total of stock of

XXX,XXX -- program also of shares stock December We initiated $XX received million of share a delivery a accelerated final share in common repurchase as XXXX.

we of share shares through in As of in end $XXX a which million of million December remain XXXX, the Directors the have authorized Board effect December our end $XXX.X In repurchase XXXX. XXXX, expired authorization, which XX, authorization $XXX new at XXXX. repurchased repurchase of under approximately our will share million

Given we to improved XXXX our of stock. and our the our to expectation Plan confidence drive purchase of in additional operational our continue performance; shares plan business will

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

pure approximately we For effective to expectation year business you hard range our is we like remain against of CapEx. the the for $XX to in including tax for and your expense including dedication. be range, and to of range shareholders XX%, execute to XX% consolidated proposition forward depreciation; we the updating operational and expenditures income the XX% which progress profit million, be expect thank time We $XX call to the XX.X% attention XXXX, the in for in our $XX of our million XXXX we and our in full employees look open of both Operator? strategic, questions. $XX of depreciation amortization be and to the $XX to in today. confident in as taxes; million, In to maintenance-type to are million million federal capital the and made range Thank $XX rate state to housing continued to continue to up given financial of of XX.X% million guidance our to I'd meaningful and initiatives. margin now follows: work on and summary, our gross their value long-term We'd initiating as starts; be like

Operator

Thank question-and-answer with you. we first Baird this be the line time of a & Company. Robert with proceed At conducting your question. will comes Our Please question [Operator session. W. Instructions] Tim from Wojs

Tim Wojs

Good everybody. afternoon,

Karen Colonias

Hi, Tim.

Brian Magstadt

Tim. Hi,

Tim Wojs

to cadence quarter kind levels? the volume first guess to the what stable kind with January stable my more kind kind Should in you just I numbers we with means? of just on through be bit how little like understand could and explicitly, XXXX question, look -- growth maybe please? of of the a you out expect QX trying just kind played of I'm elaborate those volume rate levels, stable what of, think

Karen Colonias

third at cyclical, Tim, numbers. our be digits. think, are We we look are mid-single continue be and reiterate, and actually again, lower fourth second -- I to Yes. when the for you low quarter common to still be going our first to business, thinking to numbers to and quarter very that very again, largest volume in, would starts

We've as seen had January. price that mentioned. low growth have we've it back also the in on but we from volume we seen just come volume only was increase, standpoint in a organic So a January, not December pretty

on housing are. anticipating, we're to like, early little the and when again, a will what weather to conditions a always first single-digit that's we're what on one tough But mid growth year the starts. look that quarter So depending tell since in

Tim Wojs

kind actually And the start half that through you would because first to expect towards me weighted be quarter. out it's maybe a Okay. more of expect to play of at I'm in you QX would that all? think the trying down to kind here second just little how

Karen Colonias

growth periods Yes. cycle historically weather of I conditions quarter growth. and again, seen always based second just and from our third largest our mean, we've on what

Tim Wojs

quarterly a think through of you're -- fourth of as to to all in your of And expecting should half the of inventory? of we you of modest just when quarter, the at the gross need kind any mind the Okay. I'm think keep margin some sort about three weaker little so in I down the first we a go sort and then kind were your there quarters on if is right we maybe improvement would cadence how just to of there basis? Or I size year, a the year? through of in little know just and gross half production trying mean, gross levels obviously the kind in year the margins first about stronger margins think be first

Brian Magstadt

to Tim. periods. expect for we Brian. more absorb as I the customers busier support It's would during a greater have Hi, overhead that we activity season, selling those building

So, typically third second and little quarter course, traditionally of bit better. a are

fourth, was than a On would on it's first a little and and margin, market that factory-absorption perspective. one as quarter We've be of perspective. tight volume to that being at there we're just labor the impact bit in fourth noted first look than particularly XXXX, from from that a the or we third better margin fourth expect elements seeing things there. gross we our equal second the a But all gross and again quarter again

Tim Wojs

Okay.

the all? XXXX for it's targeting Plan. Do explicitly of sales you you Okay. XXXX reiterated or And of as kind are percent anything for SG&A at whether then I the growth for target have you a of know kind that SG&A

Brian Magstadt

It's Brian again.

of net we So expect all to approximately for of of elements revenues to would those that's SG&A XXXX. XX.X% XX.X% the be

Tim Wojs

Okay.

Okay.

towards And XX% Okay. XX%? to So then… gliding of just kind that

Brian Magstadt

Correct.

Tim Wojs

And -- you in of margin guidance, range? that the seen we've have from you just any kind question, gross do do have last incorporated that any then moderation the steel benefit just into in

Brian Magstadt

and to raw quarter, materials mentioned need availability, our in raw to thinking is the as mean, I third we -- we’ll due that. we material we're -- Not the way that sell-through necessarily. increased about

is little while then through, raw back I'd that on-hand given So that we've throughout of that range now at XXXX the on market be taking looking work that guidance comment margin account year. right in will addition but current growth say, it will buying in it's yet take inventories. gross us that specifically the more course your to Karen the to a the noted is question we're early of into estimating current a to there, that our in material, course on-hand how and had

Tim Wojs

Okay.

Okay. Great. I'll hop back in queue. Good luck on XXXX.

Karen Colonias

Thanks, Tim.

Brian Magstadt

Thanks, Tim.

Operator

question Daniel comes line proceed from CJS next question. Securities. Our the your of with Moore Please with

Daniel Moore

afternoon, question. Thanks taking Good Good for Karen. morning, Brian. the

Karen Colonias

Hi, Dan.

Brian Magstadt

Hi, Dan.

Daniel Moore

if terms try moving number give kind give in labor? look of number just a you I drill a warehouse a more a on materials on absorption the – more any in is order the one, specifics and QX, decline impact little rank to bit to better margin maybe cost, wanted down not to two, America, bit basis Can gross of lower three, point those number roughly so bit basis sense little XXX overhead to at little year-over-year. of parts? If and factory there of get raw specifically just point, North we get granularity bit production little way we

Brian Magstadt

the as highest. is I the Sure, Dan. revenue and a that, was of say percent factory This Brian. would tooling

as what was next, by cost. the our it about think impact. be say so one material, absorption spend has and – that volumes we and warehouse So, again being as up dollars a and percent so labor spend of with I'd would shipping was then direct and that spend, the of followed revenue, biggest increased and

Daniel Moore

but you it's year as towards of range related lower Got it. And think you QX? maybe your back softness that of and for piggybacking some guidance, full into end is on seasonality a we the ramp to last do given reasonable get about weather of described? helpful. Very maybe that think this the the that more as guidance question, Or get we the year

Brian Magstadt

first out and we haven't as specifically out year that the be But range Right. good the estimate first on a the amount typically quarter out put at looking it's we're gross then QX, I again – would good earlier, that quarter that, put that I – – as be not there, aren't as we’ve to for the we've year moderating QX QX wouldn't as or individual the and say QX. mentioned as broken margin going is annual quarters. guidance. But the

Daniel Moore

customers job Got terms of of And levels, that from them experienced But your Do where related. be softness that in in of you in terms Any kind in those December, color have obviously then documented the saw lastly, are it. you of you see materially? heard revenue – what housing pulling back inventory well any passion sense they inventory on around explanations? would great? anything

Karen Colonias

the XX can XX us customers This to customers tough get for our to to Dan. from we Yeah, tell inventory timeframe. hour Karen. in is exactly It's know our on an standpoint, products you as

chose we're very precise real inventory, certainly them get would a because what that we they of that. they engaged in January in on and seeing. to again, bit be pullback their able part tough if So, support little inventory, maybe know a it's But not on we're that's to

of industry a like saw also. seems it just think all uncertainty certainly the in impacted we especially and and of December that I economic a timeframe that lot part November we the the building were

Daniel Moore

Got follow-ups. jump back I if I'll Thank queue it. you. Thanks. have in any

Karen Colonias

Thanks.

Brian Magstadt

Thanks Dan.

Operator

comes from Steve next line with Please Chercover your Our D.A. proceed question the [Operator Davidson. of question. Instructions] with

Steve Chercover

the activity you really us fell or Thank on where call. I locations geography as in little off housing you a and December give distracted could the me, any QX was But in forgive you said?

Karen Colonias

Yes, an question. Steve, that's interesting

-- the not still don't out we because are of numbers now the have housing are shutdown, the the housing As so you perks numbers. government December

thing indication. one doesn't good that's a that give So, us

that a winter timeframe. I of thing in somewhere the significant the pretty weather, from November-December what seeing this just definitely other would certainly started And a the we're states, having Western year. The we're in in say standpoint

Again, So, don't quarter-first hard have be once real those slowdown. delineate for But we'll seeming have to information specific numbers anything fourth normal appears bit regions. us specific better starts we're really what out. a that to kind of on anything come quarter it it's and a little in

Steve Chercover

don't it be really Florida? the from to you housing you see did need in know where traditionally But statistics it mean the Did California? see in So, you I sell? fair to government you

Karen Colonias

normalized hits. mean function what that really we would and would in mentioned be I timeframe that I again a fourth see of weather our when that's we Yes. as slowdown quarter saw

Brian Magstadt

internal Yes, I would the figures some South Steve, housing in should we and on we West Brian, I it's think would think based the here. softness that -- starts have see that

come starts interesting and So less than how again correlate, that I once issue. would Census the South but those see say be out we really are should Bureau

Steve Chercover

organic Okay. embedded give growth concerns January? that's not late you XXXX things year? materialize that X% recognize FY And Plan, Or expect back your you the and see in pause do XXXX XXXX to that that you might I this would did in in said the snap

Karen Colonias

in starting we're doing at connector metric. number; we not there's nicely that's as an XXXX other the that to our the line the Depot that anchor Yes, Nordics. Europe the tied out Again on Europe annual working really and work talked mechanical introduce we're XXXX the in line that's about on again, housing to in and our as very looking standpoint, we're Plan, roll look tracking that fastener Home to start in us, growth particular then line Western of rate We're elements from X% we in that through that growth XXXX. compound continuing end that

So that some X% just housing elements CAGR definitely associated with number. start we have not are that of

Steve Chercover

initiatives propel think there's finally, and Las years invited the big be any have I'm if or I'm up then attend, that wondering year it's than Vegas Okay. but housing new you the not I believe will this And show prominent year since I trust every to offering I more just a in coming don't passed.

Karen Colonias

the in Component really we program that's That's Manufacturing was at that to up in software Las an emphasis on show showcase just that happens products, a carbon with very At the or that be or that and in our a Yeah, Las so not that that one's few tend interested Show, we October. products have manufacturers, we in getting are results fiber in showed -- I Builders the to International that's but some Vegas Components, those think the that's we our connectors, software of line Show showcase significant fastener offering, component the converting October Builders our October. in new was it again whether show That trust in any where offer Building number to Show. successful trust are coming our had months. and weeks, trust next in Definitely the show our with that Vegas. again our two good

Steve Chercover

might into years? several actually get weak a trying be this mean, it on to my deeper how gut stock Are says more I good – little love you in bit to of kind of to initiative I us guess great any as Okay, your question and do after dialed you and it? tomorrow, return, is into repo, more inserting thought the nuance I see to the a me. your Has given disciplined forgive been give shareholders message cash. a there final significant excess you autopilot? part become

Brian Magstadt

Steve, its Brian.

would that plans, of used course, share I we've during we've that window repurchases, of repurchases. periods. do trading initiated accelerated mechanisms used on We've XXbX-X those need to a share be to used couple So say open

achieve at return So that along the we'll goal provide looking XX% be we get year. to year, more throughout to we'll trying and updates as yes further shareholder the

typically in the discussed at years April the we'll with throughout --- annual an at -- looks that increased dividend the levels. repurchase we've meeting we -- they've on few As board to discuss has relates their the and annual typically well, share the -- over allocation the along year, capital discussed dividend last basis the board it quarterly but

and we that that see As the we'll of us -- take -- see course XXXX there's throughout the how year. where million for those authorization we'll $XXX noted

Steve Chercover

But just I allocation guess intrinsic to is clarify, an decision? into incorporated the the the enterprise board value does enterprise have of the that -- yes, or the capital value sense

Brian Magstadt

Correct.

Karen Colonias

Yes.

Steve Chercover

Okay. Thank both. you,

Brian Magstadt

Thank you, Steve.

Operator

question Please comes Julio proceed Our line of next question. with with from Romero the & Sidoti your Company.

Julio Romero

questions. the Thanks Hey, taking good afternoon. for

Karen Colonias

Yes.

Brian Magstadt

Julio. Hello,

Julio Romero

heard on talk bit European those more think sales the if might there can you on a quarter, sales volumes? so what you segment in were elevated that prior I elaborate all? lower little at you caused the can So have year mention, and I

Brian Magstadt

Sure.

fiber for Concrete over European potentially of products, jobs. business, large carbon part has our business there So products our

jobs XXXX. some QX So QX in large asphalt the of same and have paving that the XXXX and level products, like at in got of runways didn't we

European to large business bit impact, a there So related are conducted. not the business, that European entire is is this that recognized that being are sales job-based businesses Concrete but of larger projects, those when projects

So of comparability. timing on sometimes the there's issue a bit a

Julio Romero

again repair spoken above just should we you driver for best sales? in of about term? Okay. for talk can long a before, how think code, And percentage you resiliency then And as maybe a about building a guys be can remodel this I maybe just, but guesstimate about how the and we've think,

Karen Colonias

Sure.

design you've about the along at it's to that really example West to a one hit talked in we've national think a there Michael or standard. requirements. and Beach. coastal the Again, to the safety. minimum Hurricane think, there's And typically on will something to designing put looking I was when codes. nice recently or earthquake structure potentially codes more the high-wind They areas, Mexico required content when due it's anywhere as Coast the versus of The life are resiliency that called code I

standard Palace think hurricane. this seen the standing called basically many about Sand was higher able have Category X house it withstand that one to people than code to was a XX% building was built practices, I a

When life what I to So in come just it able are schools, are change, to a jobs would no build you versus to about think no change devastated. what entire that's communities direction, are the there resiliency being there about safety, a life, think lot back houses, because no it code interest There see create? of would positive to. you what cost, is to

this interesting that people as in maybe I've they a to is hurricane. and about this changes, take And Category starting proof-of-concept quite have actually those that's design is So of are occurring. standards code this many conversation you It enact. interesting many, concept X talk an changing about then think that to years typically they when survived mentioned, house that

XX but So adopt would My someone changes. we stay is certainly, code change. years to code where out that near-term on interesting, a to before of those will it willing be be X is top not you’re guess would that,

Julio Romero

fair just would what I as a on that And repair of think percentage sales? Helpful. remodel, range of mean, of and a be be what I would kind

Karen Colonias

Yes.

as of construction the a certainly can we’ve go how used and remodel the we have We're the better and mentioned repair the number. well are but some products in handle be Obviously, real give We trying repair same a around handle distributors, that. Outdoor get of reason can a past, in products to again same specific products, much getting on few few on so the working as better -- a our definitely Accents, as we remodel they tough new repair for type through channel. And of is a on working us can track to and a we're like that's project we really goes remodel. types ideas business to track and of distribution

remodel. that in and able to the we've line in, repair brought fastener expand opportunity think been that's As I

of go organizers, definitely don't consensus all we products those have garage are for things. a I So that the you, specific that cargoloads into house more additions, and sort number but putting

Julio Romero

questions Okay, you XXXX. and taking fair Appreciate, enough. good in luck the

Karen Colonias

Thank you.

Operator

Daniel follow-up your question. from proceed Moore next is CJS a with Our with question Securities. Please

Daniel Moore

as on year? housing of the described your if for with January's in a of that more does what low-to-mid And comments being kind about level kind of stable previously. in are asked you so form just the apologize flat different But far just you that expectation as was dovetail relates Thank I starts for growth Is again. How in this strong. seeing that quarter? it – the single-digit Karen demand

Karen Colonias

But one in Xth on January Hard pace. Will that, organic to a know decent fairly difficult saw filling we're pick here. it definitely to continue? it's And or always was growth again, hard tell at something it's of we Yes. January And again, a quarter to February warehouses. month. that also on based some

mentioned standpoint, number. on not but definitely organic us growth from that’s for that January price the real increase definitely just see we the based in is is to increase. As tough There January distributors a

Daniel Moore

it Appreciate you. Perfect. Thank again.

Karen Colonias

thanks Dan. Okay,

Operator

concludes This of Ladies end and session. gentlemen, the question-and-answer we conference. reached have today's the

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