Simpson Manufacturing (SSD) 24 Apr 232023 Q1 Earnings call transcript

Greeting. Welcome to the Simpson Manufacturing Company First Quarter 2023 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] Please note, this conference is being recorded.

conference your the Orlando. in turn now over host to Kim I'll

may You begin.

and to and First afternoon, gentlemen, Good ladies welcome Earnings Call. Quarter Conference Simpson XXXX Company's Manufacturing

the which forward-looking a of call Any company's future on the forward-looking on statements in events results We uncertainties. from risks a revise certain statements. and result company's the securities available materially Such as public that number may Except obligation we historical expectations future based fact those and may or website. otherwise. implied that subject are statements undertake statements described reports, vary filings to are extent are this the by publicly here you are expressed to or Actual not we of by read today, or are whether made applicable estimates of and statements. forward-looking of laws, and any SEC the the statements to encourage make or information, required to risks on new corporate no update the

company's the press ir.simpsonmfg.com. call that available page the will replay press on is Investor the the webcast available is the at page Time. The earnings PM Relations at of note release earnings release today was website. on Relations and a Investor approximately company's Please website XX:XX of issued Eastern being Today's also be company's

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

overview through today capital Brian thank our an of financials Financial detail. key outlook then With allocation today Magstadt, in me fiscal XXXX everyone, QX provide Chief financial and greater Thanks, walk call. will initiatives, results, Kim. remarks is My Good you you and priorities. for our and today's our joining growth afternoon, Officer. Brian will

precipitation volumes. North primarily in a to our million to residential quarter end year-over-year. materially first decline. in lower X.X% contributing first an during Coast sales year-over-year, declined of the $XXX.X due quarter West market of on net million, the totaled Net Significant In drove increase America, sales sales the $XXX.X the softer X.X%

reminder, meet higher a homes of to codes As and in the stricter that States use builders higher content and Southern Simpsons building in regions seismic United requirements. address the volume wind of Western a

In declined our sales commercial markets, also end year-over-year.

However, from increased customers to our sales revenues OEM year-over-year. although small

These pressured we markets we While diverse housing model be market our portfolio to software business believe to net solutions increasingly XXXX, of partner due choice commitment differentiators. strong our will by the we developing in continue an American a industry-leading position sales for our to include North products maintain as complete and the expect of competitive and softer to serve. and

testing our building officials labor alleviate with innovation, with offering A dedication channels support, reputation, and hours; and our product engineers, and technical career field contractors shortages design support, and state-of-the-art in our and delivery typical talent, develop delivery and labs; online easier availability and tools and improve to provide vast construction do the research it in product extensive industry. distribution opportunities products and unparalleled standards to select product help us; engagement with make structures, our helping practices engineering to to specify on construction digital that XX safer/stronger tools multiple across longstanding relationships along within business to to with and ordering XX literature to

progress on five on moment. are in continued focused used our I will which there U.S. end many touch growth remain our we of tied a in Housing starts. addition, to In not markets,

contribution a to an net Europe, modest from reflecting sales first was Turning increase. Europe year-over-year million totaled $XXX.X sales quarter million, included $XX ETANCO,

partially sales currency translation. in challenges macroeconomic and Europe resulting were sales volumes by lower ongoing net Our foreign offset from

progress, our of and we ETANCO anniversary comment XXXX optimization, with expense the acquisition on manufacturing As synergy of and to-date. of was quarter one-year accretive footprint defensive procurement, remain efficiencies. accomplishments X marked track in our and April operating first to I'd rationalization, and to earnings key on the learnings acquisition, The our like synergies

In we synergy have share our to ambition market delay set of in opportunities help be of housing continued requirements of and while model made and the supported construction to climate new confident business several term, macroeconomic persistent in market will by synergy the our Longer to we we operating our ongoing office strides believe our In opportunities, transition offering in our construction Europe. all segments, expand our outperform wood weakness European along regards to the countries, in of cross-selling to regulatory remain encourage some with our and broader offensive the customers solutions. will opportunities.

Our consolidated the primarily for first gross quarter reflecting strong XX.X% control. cost margin was

management operating margin that and business our on as Our well control. executing our Brian the of planned as higher shortly. of areas first of will XX.X% on quarter margin expense ongoing ongoing pressured the we as to elaborate integration drivers was performance environment, expected cost expenses. We committed a further can remain key ETANCO

turn a which challenging made initiatives. growth in our traction I'd quarter We to on our like solid environment. discussion to the a through encompasses now markets, end first use

availability growth as inventory be customer choice, in resulted with of initiative rapid beginning product our market. our support wins, structural launches standards line First, new the commercial to as In and steel delivery initiative. to new our our well various with partner

with market the continue across in we the Second work strong in to customer growth focus developing markets OEM one and growth OEM leader seen the initiative market, of to on operate. This our choice key mass innovation our timber, all be have for we aligns our areas.

growing our into the and starts, retail above housing of expanding our positive space, business broadly to relative as traction U.S. And the our centers market national continue show first within outdoor quarter. home focus by part to our line many third we offering during accent on on

further brand We recognition and driving industry-leading customers have by our are very pleased sales. center prominently our promoting displayed to product offerings home

capital to Turning now allocation.

returning organic to key regard repurchases Our organic priority the share and our via focused model, we our dividends growth growth opportunities, our strengthen incurred growth, the acquisition we including stockholders of to opportunistic finance ETANCO. initiatives the and paying focused down investments business are on to is In to ETANCO. debt remain integration and to value of on

opportunities equipment our and manufacturing evaluate also We industry-leading our facility, maintain to are service. drive as Ohio to to position best-in-class distribution our expansion announced our and support continuing and such productivity well as as previously customer maintain investments

business our remains While we integration our M&A ETANCO that potential growth our continue the and manufacturing would key finalizing of opportunities efficiencies. strengthen evaluate to model and initiatives accelerate priority

are will profitability continue to to we our our relative proxy we remain while goal expect ability U.S. operating company of confident top the at, in above in Looking environment the including quartile peer housing grow our with in achieve our market ambitions, group. to starts the XXXX choppy, to

the to our Our our of markets X,XXX with progress by will responsible capital model business be Simpson along commitment remain employees. growth our supported stewards dedication used five and our plus end in strong anticipated strong of the and

created to business engineers, our business mission values building the his how was code and by our contractors today. improve we to longstanding operate and is component Barclay our Simpson of maintain relationship our key Founder, model with Simpson's practices. remain A officials construction of cornerstones

to educational hosting national Our for and industry programs large. building the our content at customers actions provide include training

and awareness, our developments, products role and drive believe in leadership industry attract customers knowledge We inform these and to help brand new maintain customers. efforts help Simpson innovations, about further new

We are build and we structures. our as Barclay's to stronger help a people empowering part and play educating mission proud large safer industry of to further design

over the Brian, turn that to financial I'd quarter first our call greater like detail. to in With will discuss who results

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

I in first prepared today will begin, quarter comparisons stated year-over-year of to XXXX first the quarter otherwise unless refer I'd of all versus financial that measures XXXX. Before be comparisons mention like discussed the remarks to and my all

results. to Now turning quarter our first

to highlighted our Mike consolidated $XXX.X X.X% net million. increased sales As

America net from lower North $XX to decreased $XXX.X primarily which sales in increased X.X% XXX.X% $X.X segment, to approximately primarily lower the translation. net foreign to and In volumes net million, effect due in sales ETANCO, currency negative $XXX.X volumes. by partly million offset million, million sales the Europe, sales contributed of Within

of were XX.X%, a at XX.X% profit concrete X.X% up XX% in primarily and gross represented increased due our first which ETANCO total XX% sales, products Consolidated from products to of gross year. XX%. million, from $XXX.X sales down resulted from construction to XX% total last construction of XX% contribution Wood margin the margin, quarter gross compared million $XX.X to a

XX.X%, On North tooling, increased compared to gross margin America partially raw freight from to XX.X%, percentage factory and of offset by net primarily material basis, a costs as sales. higher warehouse costs lower a and segment our in

percentage a by lower costs tooling, costs to of gross XX.X% in Our percentage sales. offset warehouse and and sales a in labor, factory increased from to of freight as margin increased due net net material as Europe part XX.X%,

products to ETANCO was on product From XX.X% perspective, prior addition in a wood due prior XX.X% the was of margin quarter. our the XX%, year quarter first concrete XX.X% the for compared quarter compared and to to year partly products, in gross

and by Now costs operating million as from operating increased our an and $XXX.X an first from as driven our increased XX%, or well expenses. ETANCO, supporting of activities. workforce turning Total sales costs to quarter engineering million, were increase primarily costs personnel $XX.X expenses approximately of expansion by

amortization expense. The to operating million attributable $X.X expenses of ETANCO include

to an approximately As XX.X%. XXX expenses a increase points, XX.X%, percentage of operating net basis sales, compared total were of

well quarter to and were pursuit and engineering million revenue costs North to strategic personnel of development and research million, future travel our with aligned additional primarily higher costs initiatives, our $XX.X in as first Our to professional in R&D opportunities XX.X% increased due fees expenses America. engineering ETANCO. attributed in growth $X and higher as generating

well On XX.X% million increased Selling America travel were were in North expenses professional they segment to related to due due $XX.X up to personnel, in XXX.X%, a as million, ETANCO, costs North expenses ETANCO. up increased in America. from primarily as mostly and basis, fees $X.X Europe selling and XX.X%

$XX.X acquired in to General intangible assets. ETANCO, and primarily which XX.X% million amortization million the increased $X.X of aforementioned administrative from the to due million, includes expenses $XX.X

from decrease $XXX.X million. result, income As a of consolidated our $XXX.X operations million, from totaled a X.X%

discussed a income compared and America, to profit of due income North operations operating operating from profit higher million, Europe, operating decreased $X.X includes previously income from ETANCO's gross integration combination million, $X.X and $XX.X and loss XX.X% gross of $XXX.X expenses. of expenses. costs was net to million In million, lower a the which of which operations is $X.X of to million, In

income points our basis On a margin consolidated decrease was approximately of a operating XX.X%, from XX.X%. XXX basis,

XX.X% compares expense. diluted fully per Our to inclusive of rate $XX.X per interest to net million of share. income diluted net share, $X.X effective increased Accordingly, $X.XX or totaled $X.XX This fully or tax $XX million from which million XX.X%. is

balance to sheet turning flow. Now our and cash

down $XX.X as million, March from sheet remained At XX, XXXX. XX, cash our December and balance balance equivalents million $XXX.X healthy. cash Our XXXX totaled of

XX, up position which was inventory compared million, at balance at Our XXXX to XXXX. March December $XXX.X our was $XX.X XX, million,

focus to the We customer will in on-time environment. of management our to light retain economic uncertain levels on we ensure strong delivery inventory continue of service standards effective and ongoing

$X.X generated approximately have At $XXX capitalized balance of During finance $XXX.X $XX.X end, cash costs, of the from million remaining is primary approximately million, which first flow of our available on compared was credit. to for we net operations debt quarter, we our million. million, line borrowing quarter and

invested acquisitions our During $XX.X expenditures stockholders. capital million to dividends the quarter, approximately paid we $XX and for first million in and

guidance anticipated December in like for We XX% given financial our ending to XX%. April Based in slowing than on top-line extent what conditions at lesser continued Key I'd starts expect we operating XXXX to to the although seeing today, Next, of based softness as view business XX assumptions our in of April. discuss on be trends range as year-end in of U.S. margin beginning trends the outlook. include follows. now our and income QX XXXX are we with consistent and sales housing our the the XX, full-year to updating a our are

intangible to which continue Cost our operating initiatives in XXXX, share total believe and integration with year-end. view well reflect and including company markets to to million the we to operating QX associated steel Increased growth costs, average as weighted in lower slightly to million rest costs. of at make meaningful are amortization, position goods lower than to well not the housing $X our our expenses, company, expected $X peak is as of ETANCO margin sold, annual needed as compared as in profile gains U.S. the

the expense volatility swaps approximately cross interest facility currency rate Next, revolving of we $XXX all continue million outstanding and to rates. annual from total million $XXX.X expect from interest outstanding substantially mitigating on $X.X including loan term and the to the changes million, benefit credit interest be in

tax federal tax rates to XX%, are is both and in range and income Our XXXX XX% changes rate of assuming including effective no to be state expected tax the enacted. law

to $XX that Lastly, expenditures million to future to with for be we of to the spent uncertainty. quarterly expect XXXX. looks million the expansion million, ongoing $XX utilized in Columbus, bright $XX despite capital be discussed to range previously summary $XX we of be balance million project Ohio including Simpson approximately believe the to were pleased performance macroeconomic continue financial our with the In in and for facility

ahead, our we on environment. to at against level dynamic our diligent updating maintaining superior executing Looking and the the in our coming provide in same complex continuing quarters. on We value growth time today's long-term remain forward look you to progress strategy, expense service focused a to customers and of while management

call Q&A the the to turn to over begin like I'd session. to that the operator With

Instructions] with Baird. Tim line proceed your first you. [Operator from comes Wojs with Thank of question Please question. Our the

is job. sounds like guys. a updated on you you're EBIT afternoon. material Nice points by raw bit XXX better the market perspective the start a of, than was guidance versus on peak margin better ago? prior guidance, raised three pain actually little Hey, guide. And to clearly Maybe Good months what than guess QX it from the the And perspective? basis kind just and from the margins about a I the maybe it thought past, end you

the the year. this really of, kind I guide XX% from of, perspective? So margin for to here is a quarter doing actually, XX% my XX% question worse EBIT guess What kind of, just with gets margins

the back fourth weakness half we would quarter-over-quarter, additional probably the through trajectory of the looking are a expect more to in quarter. XXXX of we year, balance Because potentially the where in similar year, compared some the where

continued where further our inputs ago as we cost months slightly strategic into looking better initiatives the sales, get to would hiring a few compared to we -- our outlook, headcount to of see that range. So volume us were at plans

Okay.

Yes, sorry.

Lastly, QX quarter with year. little than fourth that was being potentially weaker a last of

Okay.

a quarter there is thing? of year. highest anything think mean, QX it this the peak of historically I kind or for So, seasonality QX? specific really the kind don’t is I had you've is margin with

just little SG&A margin gross yes, -- is into year look general, in from certainly input percent perspective. seeing we higher, we've at this costs got costs last we I a Well, as year an peak revenue was quarter-over-quarter, a QX the think operating better margin although lower as our of integration But that. and impacting

I are just the would point, how of, about then you on SG&A the And think you on independently guess a spending, in just mean, maybe of, very SG&A sales? of, treat I guess, decline kind you, kind despite, do year-over-year macro. what I picture So, mean SG&A from, seeing I Okay. in the spend big kind

way perspective, of, the maybe frame best to So though, this growth that a a little even from pressured. spend year top kind is, year the line is SG&A Is normal it?

it's Mike. Yes, Tim,

invest that to are to areas opportunities. continue revenue generating linked in We

have will people, us help multifamily who we the business. go example, added after for So

sales some helps the of peer We have all some to that ambitions it's us three proxy in after engineering group income ROIC. market our to our efforts operating initiatives, combined versus and the and go and and growth we added financial continue related for and quartile top really above growth profitability believe

expect incurred up be of would them some XXXX. integration to we revenue, year, compared although the we last offsetting to relative spend the that will given in and Yes, to costs be that

year. ended that where guide noted we much is have we less up last the So than

Okay. one. And maybe the last then just

demand kind from conceptualize And of, three this how maybe before? revenue like perspective versus decline it could ended of April? April well sounds quarter maybe might are year of pretty kind growth the was kind started maybe is and strongly or around what relative months to talk about you, us you what give you do how what trending Just And it in wrap it in pretty just a ago? some maybe because seeing context

Yes.

Tim prepared than the mixed be sure last in our going So, thought Brian customers going this to negative, from for year. year that remarks, what a better think that starts continue are bit is little hear housing to they to mentioned a we be we story.

starts you housing saw probably significantly from from California So perspective. a down as market

as housing the up as We nearly out. down are data or are Western not set much came starts the

OEM area. we ambitions that other our then think at business, Southern look prior feeling of this is we some market parts pretty and in the versus prior we you for If market. of think good still good year particular Coast our the have about business Multifamily, versus and East relatively we still growth good versus again and relatively year versus U.S. and good the

to on Do a it? want number put that, kind you of,

Tim faster that is Yes, on not are that. releasing to how we ability think the market in segment, be keep North our we as than we view you our but show markets track up of able will American numbers know our you'll within grow the to

luck I'll of Okay, in guys. hop good Well year, on rest back the the good. queue.

Thanks, Tim.

Tim. Thanks,

line next from your D.A. the question. Our comes question Davidson. with Kurt proceed Please Yinger of with

Great. afternoon, everyone. Thanks good and

afternoon, Kurt. Good

Hey, or remarks to Two in the of, morning prepared I steel lower costs, on operating the so anticipated that I right? Brian part you, good margin your afternoon. think questions is increase a guess was first guidance first, sort mentioned of steel, that

go more you've us be given the move margin that -- get can we second, need would the prices about And think you up seen, concerned there? about maybe start to that then you put out before to have how much just steel help up outlook

Sure.

of percent sales. tooling and is labor, perspective, commented past, largest of the there a slight cost to other steel cost relative of factory as we a the as in a component So have steel the the material and as from or benefit sales

beginning where outlook year. there the to better the of we since So were compared slightly

from then in typically be before pricing changes. we And have the sustainable move we downward past, we as expect that would we a any at upward are significant to a perspective pricing make looking noted or would

right us service over continue and through, of to so steel We in a on So steel we now to couple we just make our prices maintain market. the the continuing need And monitor last that make the to know point our did buy get are monitor any relation level. you business adjustments. quarters we at to high judgment can to if very

even to you fair mean, it is feel the line up if the saw go And significantly, on it. necessarily kind earliest? that gross even wouldn't QX steel at maybe tomorrow think of, pretty that that, or until I Got prices margin we XXXX,

for certainly take what the cost to think while does high production, impact a be of inventory there And sales cost. purchases also impacting material does weighted it It you reflective. for to in relation of multiple consumption our based those I quarters to current purchases alluding fully that are average on, would to be the take and the that and

it. Got

in Okay, their could questions of, of, distribution California, in starts volume talk kind and being quarter West the earlier trended wet centers? directionally in very it bit. just terms of about you, home you And kind where, little then, very weak. alluded of, the I the on one was But kind to and versus, talked hoping in business traditional of build QX a a you then the

area? or guess I did meaningful that in in some a pressures what where the offset I you expect to So, see else portfolio sizable pretty

Yes.

on to couple at of seen So, think channels in looking hone end-use tells -- just those by that so smaller a take market really are a large those now a we you of by tend five picture, you instead channels independent Kurt segments. our we the but We trying business have -- be that we of down, housing XX%. production and better are if mid-sized maybe a five to bit builders segments, down customers, at market starts serve our residential look than we little serve know, service more channel,

So Multifamily below States mixed -- good. good, there. and United Eastern year prior Southeastern revenue mixed be and volume signal again will story

some our do there. year, Our perform residential headwinds commercial below to down business volume do will and is we think again prior the that expect business. but revenue market creating there We than better be XX%,

quarter, retail from and where be good If the a bit want a year, national you business, there in look to is Timing is our data. flattish. here little and the impacts at prior seeing below quarter but we other first prior couple market point are of of we sale

residential, the that for and are or we So the market that's much in then fairly area building that we'll our story same recover fifth technologies also our pretty correlated so highly above be there. and optimistic segment year with

it. Got

Okay, Mike, and luck here thanks guys. good for QX in that,

you. Thank

Thank you, Kurt.

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

kind growth Is Thank you just to it good Is QX remainder you, really the the so taking positive a we thanks think gears of to and mentioned point? gains continued Mike, well sustainable shift yet there? about the be it Brian share flat this how ETANCO offensive synergies to in May pushed at thanks going what's pretty And for and of, that, the and choppy results environment, as year? cross-selling? Thank questions. is get outlook moderate you. growth

Okay.

comments Dan a are business we've story. as on. to are team in want start quick to said, legal be the all continuing more cross selling more and So, more model, that synergies we from and just excited and about But super we overall of the focus on we being the European working while are the everything an ETANCO they perspective. Again, excited couple a entities, and doing combining we about -- very

you our all we of at -- is countries Europe. at most the If quarter or actually XXXX, first did business we business year in of grew ETANCO and prior for year they -- overall if April so in quarter profitable of in biggest know, France our that's first us deal well the versus and And fairly this before quarter, mid-single-digits year. prior performing one you business Europe, over the our look look grow you first close as

discussed. believe we continue cautious invest, synergies us out on to offensive defensive how overall pushed excited a bit. little bit we going we slow again The are making about So little to for reasons little but extended may we are our business in a push case, story. be markets synergies albeit the for we track bit a for, get The are we

flat. back that’s there more it Okay, helpful. to price shifting quarter? North a quarter implemented any like we the Was declines little roughly in from And coming impact this sounds America, was Or pricing expect bit should up? the

Hey Dan, Brian. it's

North in On wouldn't forward year, So impact, primarily announced. significant expect due not previously it when a last go timing we've year than America, to to this compared to materially I price implemented. different pricing is a what be being basis,

just And seasonality last seasonal I years, should QX kind Okay. in to few meaningfully versus sequentially. different point to, would to one about revenue If that seasonality, we year? uptick? just a if more can may. you over this typical of, there double-digits typically talking be back factors Is expect look that QX any I up cause the Or

seasonal. be Should

little less of over of is interesting couple an things been impact. bit last One a the the the of years has seasonality

Let's the you. of to hadn't in moment. necessarily in the with, to wood items volumes not what and labor we take would continuing QX the Simpson, weather lack that go been for out could appliances, of yes, because Due -- to related that items to light-frame they on necessarily windows supply traditional given when normally those that have and were doors the that for They going When a skilled were lack labor seasonality, have construction. start, build. new seen a chain of be example, QX challenged to into The were were for skilled or, again, just that builders but perspective. work

of business, couple last of segment least been over less that the impact seasonality of our quarters. at on the So had an

this of winter difference Now West or -- But Coast, winter see QX an and so anomaly we far more QX. between the a of year now it's the say very wet more so total should with on is than less, less may the with in of we're the less be company, addition Europe looking of -- past ETANCO. seasonal at when it part I’m going the

Got is That helpful. it.

nice Okay, congrats I'll start jump any back and Thanks year. the a with follow-ups. to to

Thank you.

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

afternoon, sequentially, start I mid-single-digits know sequentially on maybe sales there? up good to Hey, sales when just look everybody. But at Thanks. mentioned it pick year-over-year. bit pickup seems you really pace like ETANCO, basis, were prior it and the a Maybe two on Can ETANCO did I to to that speak if out sales anything the compared you up to call a quarters. sequential

to But QX to we're going detail to Europe just Mike holidays to results in have days don't due Well, QX, -- the the business we nice from ETANCO in the more in selling in December have QX of today. as noted, general. have

in oh, So add that there. the -- more we've had

look said you thinking operating you Okay, at kind margin that's know I I when more And Europe posted. fair. about you're as of consolidated, a Maybe the of, entity.

ETANCO. of bit QX little that pricing add benefit should for I in what Julio, Alright,

Yes. was Remember from ETANCO -- the the commercial on majority of level. big business an a Julio quote that individual

us so line ETANCO in of margins of little as some a bit result And Europe, tracking we're gross and pricing a helped increased quarter-over-quarter. in that's closely. we have increase prices And product pretty cost the

margin Thank pretty XX.X% very the Just just you operating I a you just That's just for operating at margin speak guess about thinking you helpful. of the healthy. that. you consolidated And a ETANCO? all Europe? Europe, function to if basis, posted Is within posted could on is that

quarters. But in it, repair connector prior business showed to trends margin concrete yes. good business in the relative lot A Europe QX some business, of on the

reflective ETANCO of the a European business. that offensive synergies part to in non-ETANCO So benefit do Mike's with defensive a moment part and little point the ago of bit to Europe of the see overall. We

of margin was operating the Julio, Yes, XXXX around business X%. our European in

at good cost acquisition some margin very last And a minus similar numbers for acquisition there year. operating quarter our first there, so was quarter costs look in two, but when you roughly what to relatively were

makes haven't us So I we get of can and the really confident case more a sign We synergies a the going a in think kick more we there. business bit things forward. run bit again in, had in little efficiently that's which little critical mass

That's it. you that? last Pacific, small maybe then the very overall touch on some and you a maybe Pacific for initiatives just And pie, of Can quick give a you it's maybe could going on have me. of if on there? on know part Asia I Got on refresher Asia the one helpful. us a commentary but

got additional down primarily repair but got there, We've got So business, make about a line And down slowly. have from additional market. countries. a XX-years a New (ph) concrete top connector we quarter into additional a we've perspective. intangible is around from portion down Australia what small a and one via And working in lot slowly we the acquisition there benefited perspective going ago. revenue Zealand. that that business of patent sell on initiatives growing [fasteners] sales acquisition did in Australia We there that of added We've anchoring

Now includes that also assets in sourcing offices in China from production Asia being said Asia facilities well. as Pac

amount a mechanical in China the manufacture So they of facility. products, significant our company's anchoring anchor products

Australia, total facilities we Zealand, from from at when sourcing down operations production a look a perspective, also Pac have and So New we perspective, sales Asia some there.

Thank it on. Understood. I'll pass you.

welcome. You're

Thank your also you This reached lines today's have And question-and-answer for at and conference, time. concludes you may your session. the of participation. this we disconnect end the