Simpson Manufacturing Co., Inc. (NYSE:SSD) Q4 2023 Earnings Call Transcript

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Kurt Yinger: Got it. Okay. That’s helpful. And then just lastly, I guess, not to get too far ahead of ourselves, but spending related to Columbus and Gallatin $120 million this year, how much kind of carry over into 2025 do you think would be associated with those projects specifically?

Mike Olosky: Shouldn’t be too much. So we’re expecting to complete Columbus in 2024, have that opened up, it’s not the end of this year and early next year. Then on Gallatin, we are breaking ground now. I would expect about $50 million — $40 million, $50 million spent this year. Then a balance of that spent next year.

Brian Magstadt: Yeah. And that’s actually something to note. So when we talked about the $200 million in total CapEx, that is actually the total for Gallatin, some of which will be spent this year as noted and then carried over in the next year.

Kurt Yinger: Got it. Okay. And then, I guess, just lastly on ETANCO, any sort of metrics, whether it’s kind of backlog or visibility you guys have, just in terms of kind of the near-term outlook for growth for that business, and I guess, and how you’re thinking about 2024 as a whole?

Mike Olosky: So, Kurt, I was just over there a couple of weeks ago and similar to our business in the U.S., they’re not getting long range forecast from their customers. So it tends to be they work on projects, they get an order and they try to ship it out within the next day or two. So we don’t have a great view into the backlog. Overall French business, we continue to believe that that particular segment’s doing okay. As we said in our prepared remarks, the business was flattish with prior year in a negative market. So we’re pretty pleased with that. We’re pleased with the gross margins over there. We continue to think it’s a good business model. And again, the more and more energy regulations come into place that require people to increase the thermal efficiency of residential and commercial buildings, the more we think that business is going to grow for us and that particular segment of the ETANCO business was up about 10%, 15% over prior year, the facade business.

So again, not great visibility from a backlog perspective, because that’s just the way it operates. But again, we’re pretty happy with that business model going forward.

Kurt Yinger: Got it. Okay. That’s very helpful. Appreciate the color guys and good luck here in Q1.

Mike Olosky: Thank you, Kurt.

Operator: Thank you. And we have reached the end of the question-and-answer session. we also — this also concludes today’s conference and would you may disconnect your lines at this time. Thank you for your participation.

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