Simpson Manufacturing (SSD) 23 Oct 232023 Q3 Earnings call transcript

Greetings. Welcome to the Simpson Manufacturing Company Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded.I will now turn the conference over to your host, Kim Orlanda, with ADDO Investor Relations.

You may begin.

Good afternoon, ladies and gentlemen, and welcome to Simpson Manufacturing Company's Third Quarter 2023 Earnings Conference Call. this forward-looking are statements. on historical statements made are facts statements call not that of Any risks Such and subject of expectations are and uncertainties. statements based are to on a certain estimates and number vary Actual statements. forward-looking materially future results from expressed by or those the implied may of reports, to the and company's by to extent are We corporate public encourage in update applicable securities result company's statements the laws, the events any required undertake publicly we the website.Except today, read you available of described a on future forward-looking risks to we the as or here filings obligation information, make or which that or SEC's the otherwise. revise no whether new the release earnings press that at was note approximately company's today Please issued X:XX p.m. Eastern Time. available the page is Investor earnings ir.simpsonmfg.com. press company's at on of release Relations the website The Olosky, replay turn being call on would Investor Relations is Today's website.Now, conference of and the like Executive over President the webcast, I also available company's Mike and the Chief Simpson's page Officer. to be will a to

Thanks, improvements price increasing earlier and of in technology performance, sales North X%, break million, capital further net for me our joining commercial, initiatives, X.X% another markets. XXXX million.To allocation financial national will QX growth you solid we Brian performance through retail, to $XXX.X by quarter $XXX.X My increased of quarter third and our building leading key to overview in greater and walk a year-over-year operating our challenging QX today in then X.X% our our Magstadt, will of American decreases today's thank with Financial approximately fiscal XXXX. achieved remarks and volume double-digit delivered Chief over of in environment you partially Kim. offset financials is XXXX, growth priorities. Brian With sales outlook detail.We American year-over-year provide in today performance, call. an everyone, net Good afternoon, North Officer. volumes a down

win the strength on U.S. volumes new us execute regions the notable residential the Southeast our applications and and strategies, in to compared below our to in XXXX market, to our Southwest enabling customers.In with improved given we continued have of housing mid of We range sustainable to new to likely the strength believe last starts in will market continue the housing. the of XXXX long-term housing year.While finish the U.S. levels, shortage low-single-digit in

In fact, continue business more in unique the of than homes we X decade under-building.Further, estimate we the us enable of a shortage to U.S. will given. million after a are to confident market outperform approximately our model

portfolio to markets labs.Fourth, Europe levels. on a Europe, attract digital practices.Third, gross commitment diverse solutions with channels, on software opportunities our building testing career industry-leading training to our product with commitment contractors state-of-the-art year-over-year for training currency specify, to XX expertise, a and labor a install, select, engineers, relationships, longstanding sixth, and complete flat deep offerings dedication and improve of provide extensive XX and hours.And product to improve and product First, products research sales historical industry organizations versus and people alleviate our and third with education X and safer, construction our field to a delivery and to construction distribution stronger continued engineering, more margin and engagement trades multiple technical make delivery typical quarter relatively availability vast standards has our our in structures officials, and design the to partnering and within shortages.Turning our were local while that basis, across developing tools, the to support, increasingly products.Fifth, rigorous we to to and to innovation, best-in-class serve.Second, reputation, easy purchase it

to $X.X $XXX efforts Europe totaled million our well perform the a of to due in while primarily continue flat with sales, translation.ETANCO benefit integration X.X% continues relatively year-over-year, reported, to market progress. challenging currency up million, sales in As foreign

down housing market with associated housing to due business lower residential starts. the Our was

range X commercial the are regional solutions.In timber nice including continue Northwest. large our we continues the the for to shed shortage, We plates, dedicated warehouses fasteners, of key OEM manufacturers. use our approach.Also elaborate market complete margin growth of performance end-use the partner raw and solutions, in addition, of in new market, a that remains We've construction, specifications.Our residential had market wood-to-wood fixed one believe market, validating connections with It's our our OEM continue with that wood XX share wins in new sell of the shorter opportunities, chain location the saws. an market, to construction. In pro-dealer our Brian continue line primarily of Beginning completing shortly.I'll new by and team forward by drive of for mass offer our product reflecting offset announced to couple X to us to and of in our market, factory regulations update and on alliance the structural drive on pressing space, technologies margin the strengthening to drivers quarter housing new by of connectors, giving of applications now completing our the markets in potential the warehouses. including costs concrete to line a a initiatives increasing on and Northeast.In to XX.X%, improved in company key the consolidated focus costs to longer-term European will choice. opportunity gross material further on of third lower revenue ongoing path focused with on for EasyFrame turn opening our an higher the the we broad be record truss within a OEM key our ambitions our improve conversion tooling we

support customer's putting component Year the innovation, very and Vendor of have with Partner Tool named the Retail XX launching and finally, contributing commitments, first, fastening our status to XXXX Division needs of Midwest including including the in success.And Building with and Award.Within the who manufacturers, on National the the ideas, system, connectors Building a we Vendor XX the we timber those continue the new Year awarded based to new XXXX journey to Innovation new are specific of to mass locations. Lowe's We investing delivering to their Technology, are market, bringing make partners existing progress in and in won value been timber, vision Lowe's. solutions fasteners, Lowe's for drive fresh the manufacturer conversion Materials space, component which and truss Pro by pleased good top to Partner by

we peers, in leader top be of we've applications.Further, to-date continuing ETANCO initiatives relative seek to company stronger help partner innovation we being to of peers.Turning our the remain U.S. proxy integrating and extend and on margin our markets pleased capital now the the implementing maintaining top traction an made include and culture, our into on choice, our returning new operate, being the our are growth people quartile starts, the allocation. design to quartile We within ambitions, to growth which housing structures focused we safer, our our with income to values-based a of build proxy as above-market within operating mission ROIC our strengthening

ETANCO.Our better and and acquisition shareholders the on our debt or and us organic the traction opportunistic uphold best-in-class line of to finance and strengthening expanding our we the efficiencies.Before greater been to noted and I'd cybersecurity briefly our continuing initiatives customer at business to potential service efficiencies operations capacity to majority growth comment or further key have chain that achieve of model to a aimed of manufacturing dividends opportunities, supply our via product share both supply growth chain repurchases incurred initiatives, weeks M&A conclude, expand like down centered evaluate we priorities our standards.As paying are of opportunities and to returning and I solution Our remain set, incident organically which opportunities quarterly through previously, occurred tuck-in achieve accelerate growth ago. smaller help the couple our and are M&A value to manufacturing on

rate backlog Simpson this our hard work team downtime our resume most made I'd approximately as commitment actions led to the allowed all of summary, time.In this operations quarter the the our compared to for a though well anticipate results to am to days a company, be support possible, resultant fourth and our customers week. just third typical prior were will downward While for impact shipments the our performance market, mostly us XXXX the quarter. our third clear quarter up year fourth addition make and up to and of to challenging down due I X the these environment throughout us some Based we very that reflecting in relative as our swift the during on to housing market. for interest to their X seasonality dedicated thank like to quarter XXXX, valued for within customers to the pressure current that quarter pleased on we expect start of the factors.In with

our to turn to will opportunities financial time.With Looking growth to to enhance quarter in ahead, ample initiatives over we discuss results value we like that, pursue who our that detail. third have and continue believe over Brian, stockholder the I'd greater call

for quarter Thanks, third Mike, to results everyone. and joining good today. you us Thank afternoon, our financial discuss

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

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

XX.X% to increased the XX.X% sales wood million, of $X.X X.X% material a total last offset to America gross raw America And primarily compared segment, to XX.X% our to X.X% the volume products net freight a net to gross Within to total Europe, due increased percentage volumes.Wood currency costs costs gross by X.X% lower X.X%.Consolidated America, were North margin margin And and of concrete basis, due volumes. raw to foreign quarter to construction to million, XX.X%, gross to to sales percentage of material higher concrete up in XX.X% increased offset compared was sales year. of sales. net lower in effect positive in compared costs, primarily sales primarily a construction partly sales.Our XX.X% And due as On also up XX.X% resulting $XXX of XX.X%. in which net Europe translation, million products increased which warehouse was volume were due sales $XXX.X up product sales primarily segment million, North from a XX.X%, in represented North $XXX.X partially XX.X%. margin by profit of third was lower product as our higher XX.X% from to in and increased

and representing quarter compensation. or costs ETANCO, in prior primarily XX.X% raw of may for fair $XXX.X of XX.X%, products to inventory increase year costs compared also to XX.X% the margin.From our to million, our X.X included as in XX.X% support product and value Europe points well by period perspective, the expenses material XX.X% products million quarter of prior percentage $XX the increased was recall, a was adjustment quarter the personnel year Operating operating wood growth, our on in an gross As gross for expenses. million third concrete $X.X costs quarter.Now, prior a third compared as our were you acquisition variable year driven turning approximately to higher margin

margin primarily a software growth personnel net personnel variable $XXX.X due higher costs, personnel, gross XX.X%.Our increased initiatives X.X% XX.X% offerings.Selling to in $XX.X strategic increased compared compensation.In due development primarily million, of further our personnel million, were result, and income North year-over-year increased basis they XXX $XXX.X million. primarily engineering XX% prior to selling due and building profit, income expenses significant from higher compared million, XX.X% $X.X $XX.X due increased and basis, up totaled the to gross $XXX.X segment and in a to from increases and inventory increased to by Europe, of quarter administrative America. lower expenses income were expenses a to a offset $XX.X were by from consolidated integration North fair offset increased profit, operations technology higher research million, due software adjustment variable in sales, expenses as a million, and partly initiatives, development In to X.X% due compensation.On an costs to fees, XX.X% increase North our consolidated and Europe, to from and personnel our up as year's to from XX.X%, operations to points $XX.X percentage and XX.X%. to XX.X% commissions million to well primarily $X.X acquisition General costs total America, our XX%. was income million, partly which basis, operating increase America operations partially value professional of costs in was million As and were including On operating expenses third licensing.As

Our of which $X.X to share, expense.Now, per net XX.X%.Accordingly, to included totaled effective of income. tax increased inclusive and net or or which slightly net diluted balance sheet compares from $X.XX our income is interest $XX.X interest million million, XX.X% diluted fully This fully turning per $XXX.X million flow. $X rate million, cash to $X.XX share, of

Our million XXXX, from of up remained as cash balance healthy, $XXX and balance equivalents sheet our XXXX. $XXX with million cash XX, of June September as totaling XX,

ex-debt, capitalized $X.X $XXX.X balance million, million. of net was net and debt approximately was costs, cash Our finance position, our

$XXX.X credit.Our inventory cash compared cost model We was invested from stockholders. remains business was million, that million to delivery apart.During the we third our management as element set our We our our to on-hand have million we available for Simpson service as for XXXX. million. generated $XX.X million of September paid operations remaining June and Effective XXXX on quarter, flow the dividends balance million strive XX, of and key capital of $XXX.X $XX.X borrowing which inventory of customer to $XX.X $XXX of a line and down in volume to as XX, $XXX.X position of primary levels million superior compared of expenditures ensure standards on-time our

certain part opportunistic of on our quarter, capital not XX, assumptions housing follows. assumptions XX.X%. are did U.S. as repurchases XX% range and stock as our as be strategy.Next, to earlier any ending to updating the the evaluate we year. operating to trends shares starts guidance higher elements the of XX, XXXX conditions common continue October Based expect December While year Key of now business turning XXXX outlook. share our of allocation our margin repurchase our during financial we of full We we our the in for in include today, to relative to

year and we gross will prior slightly be necessary as integration assumptions. million ETANCO. on starting the Although, improved our period, fourth first and to cost company our material operating expenses associated expect Increased in headwinds XXXX.Higher initiatives. to with of make noted $X we are the half additional overall in see are the margin we expected markets million position above gains share volumes growth quarter than believe based total for stronger costs meaningful to $X to

years We in offensive macroeconomic identified are for of make delay our to progress on realization defensive some continuing state will enacted. efforts and changes, in in to integration effective offensive XXXX income ETANCO previously including law range XX% rates are expected to subject the order to our which to changes no assuming synergies tax tax ahead, be tax and synergies.Next, the realize XX%, rate of the of and the both federal is

supply remain be solution to expenditures expansion pleased quarter capital the challenging of operating and by we with $XXX use related value, our innovation operational excellent construction chain expect possible environment. a the now Columbus in we delaying our approximately on summary, throughout We weather end and were financial subject our to million, expanding Lastly, to customers focused set X third our our markets. service during providing and key broad issues.In performance

for Q&A turn operator and over the support begin the to again to and our that, company.With our to all diligently for make the of cash to continuing the us growth call of flow the Simpson support I balance evolves organic enable to session. as strong at to sheet macro would are environment team manage and our the performance expenses like We to our initiatives.Thanks strong investments to stakeholders your our

from CJS. the question comes first Moorewith Our of Daniel line Instructions] [Operator

core operations. with American markets, North your Start housing

versus start 'XX? some more talk that quarter versus You to you be said market see of it in some about gains, pressure also you assume that, into little up it whether pressure prior up would a QX housing would maybe the prior revenue just year. to X referring said and and first reflect you're but bit expectations you for consolidated say of persisting year, perhaps I your downward the or share when will the versus of market, growth be

Good question, Dan.

and the start think me where with we finish today market's let how the going So year. it to is

customers roughly hearing little starts half on we're October's out it'll look down a bit, down off strong think for We be year, think We when level, started consolidated quarter the XX% year. first little then look then quarter. prior fourth down we XX%. year-to-date. you housing soft. next at July year pretty when our So soft. and a will slow August expected little fourth finish our was And from versus prior what business, do into a to is to and be a And above us is year the September

depending economy, Second Dan. of expected we That's bunch upon half it to is kind interest the pick rates, up, and see a of today. other how stuff,

And you you down a to expectations? so just the your compare can that sort say of that far, there we've way little XX terms any of is soft, when experienced in

Yes, right now, Brian. it's Dan,

a provided. us year and from both last the margin Just last the on October compared Mike's year, as slightly about to year, pretty margin, guidance October And down we QX having balance the -- the that we're last to revenue point, that to this operating October thinking good on quarter, updated of of quarter year. leads operating which of

will and share, in deeper those enabling where look year? your into seeing to describe Can seeing Okay, national each called the good you confidence, increased you're dig each as building maybe you've I looking commercial, a we of out tech. you helpful. X, market in take pretty tailwinds those just little markets think at some continue next for you targeted and are what's Maybe penetration into success, and retail, success,

across in to actually we're Dan, so growth QX. was revenue say, X market pleased all quarter Yes, prior X, above segments year

in seeing commercial of one of was our environment. we're things So the performance them, the that challenging space, good partnership a in Structural In Technologies. touched on with all again, we

So retail Structural seeing opportunities. we're We're and they're to seeing on national invest sales help into continue to by to in our to national customers go national point-of-sales send work to Technologies people up, and good make to customers. we concrete side, associates with that's sure train our repair on with those our their work repair there.On to opportunities. systems infrastructure after using off the growth customers, cap the And good sets, clean pay shop, merchandising from to that to to with work data investment them easy customers continue retail seeing retail our

it. I'll jump the least, at Got in now, give for and XX% queue my just, Last me, take, by gross of the guidance for implies, range, math, out somewhere year. for the margin or

look about Certainly, in your above well biggest talk as to that cause would move and to puts XXXX. from But lower we're look started beyond higher quarter. expectations takes perspective. thoughts, maybe steel where, Just mind macro, out above your year we et the more finish costs, if we where we mix, any, an one cetera, of look the kind when to overall going as the at, or you that

Sure.

seasonality, a, looking opportunities bit to technology number other additional to investments we the a a various absorbing further we're would second capture as volume say, mentioned our to had solutions, from we're initiatives customers expecting margin mentioned.So markets into the versus or not volume third making, we're about levels a And grow going future, building where we're are and market traditional of continued the focus be headwinds Mike QX on higher QX order overhead to assumptions than after the we're product that in that the much an perspective market those or quarter costs XXXX. assumptions all full of which as those of to Mike current as at additional making share. expecting thinking we're factoring we're into look to support we're at, the and quarter, operating making, fourth some with that little better during, in So had our, continue continuing at be mix, to steel where those and means year we're

good. Very with I'll offline. follow-ups or back any jump

comes Tim Wojs Our next line question of Baird. from the with

think guess Nice kind job. you on over as how you of of as go X SG&A sales mean, kind think managing sales trying I And are and next percentage just of and year and North up, kind thinking of about a this Maybe incremental off just a kind the maybe in XX%. of how would kind I kind to SG&A you about to were investments? SG&A that year, nearly think, of we're is years, in on of of maybe about, start kind forward kind of I you flattish if environment? America tougher

kind to kind could managing go-forward that maybe of us, help with a expense think you you So of sales? would on basis how SG&A about relative

Sure.

we that those support So one a front lot hiring to that are mindful But go growth the those. to things Simpson. of want of there's of we're we those is reinforce to believe in capture that expenses we in initiatives opportunity order of

QX, a expenses about quartile.And peers at we we're again, we in ourselves that increased income amount. R&D to top that those perspective, the think proxy versus, margin position quartile do from fund an operating within we significant initiatives growth engineering in and continue want for how note we a investments as to looking top our balancing So pretty

serve their continue addition Mike the that to average efforts merchandising additional included enable to team mentioned. technology think I above our and that tools solutions, sure investment.We that make as supporting in in retail, building noted, does want wouldn't we're also, customer necessarily better repeat. the investment to cetera, add of take costs some winning we really with, them how some some to technology marketplace about and customers of that expect those in that as the to to But it national Some and et building various retail are we Mike

see of going mindful top really to ourselves and in we of from So those we funding what we're be in quartile that balance long-term we're performance are the that's where investing a where perspective that to think want to really growth. about as today drive long-term things, we versus looking mid to

investing mean, sales phase kind Okay, investing growth where maybe of at kind rate? do of okay, of think you're you can the maybe of or still would helpful. say point in you you're conjunction you or a over that's I sales of in ahead the invest kind with

want to over this Yes, a at we in we again, growth We in from it. to make perspective. sure the growth investing right we all opportunity. us the point, Tim, place lot to in do we're revenue that relative being that doing get are because are see income And of things top people a under the front operating of a mindset from quartile of

Okay.

kind give and, were? initial an the on -- Got kind you. compare in is kind that targets of a your with of what's maybe what terms but just us of I Okay. stand, out to maybe to then there And the some synergies the just I kind way it's update on ETANCO, of in pushed where environment been captured Europe, think synergies of maybe know you've there, of

Yes.

at we're developing. the market. we still ETANCO with doing very so like business Again, when happy fairly much at to relative are things model So They're that. well pleased their look we're overall, we ETANCO, with how

those of defensive the ones more on things trying the synergies all synergies, with on to working synergies some ones, Some investing from We're offensive the over we've The realized the the couple profitability perspective, next short-term a we're couple of Tim, happen. we offensive cross-selling bigger little a bit now.We've longer-term balance started rolling to that drive that efforts. been we're We've of of place in because in that a very to smaller out plan. years. slow, got the come much things on make

sure development QX of in margin. operating see we're year-over-year have good that business, in why basis XXX above to managing also it we're So operating that European you points make that's margin that in way, and Europe, we our where

Yep.

that last And of a so year -- some not like-for-like that we the were was that on had assuming in basis. there, charges

like-for-like. Yes,

that the and just you're the some of that, things gains? of why share up component Yes, things last of you're out of calling yes, dealers accrue a driver kind And one, okay. any that there of is mean, kind all share share any is of or smaller perfect, it in consistent like sort of gains in and some those gain? the dealers kind the of there a of I conversions Is kind of specific then just terms bunch to reason, add able it of

from our people. No, think strong they're long-term it people and I we're the model, with we've really field, customers, people model. a of that experts great training we're I in Tim, got comes business mean, bunch our business specifications, driving the are a we've got partnering

for You add all these that focus that superior at be up to and us. and one a up with helping us customers customer pick service, it's a continues just time,

okay, Okay, We'll good rest the good. luck on guys. of you

next Our question Davidson. comes from Kurt D.A. with Yinger

things you're Are hearing think about just a of market year to bit. those different would what cohorts well? in some soften your customers, segments builder next or half in and from customers little starting talked that the Mike, these you of first had is comments as

board. the across it's Yes,

or the economic environment. half, it, uncertainty but is really at by So we markets, when say the to look in certainly, since of weakness, and just that's I the that again, first the XX% market, think is driven plus board, other residential current associated you the with of these minus, got linked a biggest our see business lot across

dual-source the you're because versus don't about Makes that converting I large have plates? single-source of and you those And is maybe set, guess some think you and frame opportunity those go current a conversation you just a a guys winning ton around sense. of separately, moving to just share I to one like customers are at the then to And where very the Okay. market that over, I how guess or then, component and manufacturers, it Simpson is moment. the are back wanted with truss model,

the good-sized are to to the these a business. relationships connectors us. some so have market leverage for of these us, also truss our and opportunity people is we it from A pick-up there's so products side lot of with Yes, customers buying other

a support, that, buy service combine got to sure to our invest you open customers on, we when forward.And they mindful want think that them we've want the bringing we're into also space, and can prefer people again, end service, that that that going are with use to do and that of are on. and we're very where of our progress do continue we make made day. levels, that XXXX. We software experience, of they typical that area.We're plates. decide we their We And at that environment, successful bring then, We continue that crazy software, how the making great Kurt, to adding customers an they in if we like support service that that so into people provide forward great we've into going great lot provide truss sure that believe And to the area. meaning

convert these there, for your And probably with do a you market manufacturers? that's I greater the mean, dominant sales attach synergy? given not there's of a just when share some much or you component opportunity think of is that own rate connectors, your

the in with some these So we're of just the for cases, these, plates about combine business. there customers to talking a truss it fairly business, is the is truss additional and plate connector software with but some the we're, opportunity really significant. opportunity lot In

new lastly, of a products the of Got the last to you're of year, all kind of largely just has been couple it. the shelf has years, meaningful that like? set, rewards reaping on some some stores of just the there the been with retail, the space Makes of merchandising at and to changes sense. then, investments in contributor load-in and this And or national growth

to things of good think up I adding it's growth. small Yes, lots

So helped. load-in, picked of couple we've a certainly, the up customers, as has

space. work customers shelf continue We get our additional that with to

helping merchandise, them train stores, add up set, I get sending that mentioned, and helping in the the that's segment. people all clean just them the merchandising partners. that to sense. We our that continue work attachment investing e-commerce as big us. on a The We're rate see national off-shelf good And makes market into is helping up, you good for e-commerce, retail and also growth in we in growth us associates, helping with focus

Got it.

and guys. well, color, appreciate the here all Okay, good luck in Mike, QX,

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

quick so couple hey, Brian, questions and just here. for you a Mike of

to Just out pressures from steel. wanted the called guys of some all, I first of about inflationary aside ask you

in talked of elevated life? you those and and warehouse and North kind Do some moderating, they of about reached just both see kind and they're costs, warehouse a or I level a costs are You fact America of have Europe. freight costs some to higher believe, of stay, freight here where

to go need and to start? seeing associated our warehouses Yes, next customers when eliminate in in it out, product the process. so they Julio, we Some want to distribution our shipping day, come it in the either day, customers pick also get to that in we're want the close big case the we can same they up. product can ship and arrange get how have of I in X-step warehousing markets direct effort costs increase or we We they to the to that is with about warehouses our

some through driving the So details. of will costs. Brian next the of set go that's

So setting bit a as the warehouses, that, going with to revenue ahead little those part up come associated of that's those. of

into perspective, basis, go-forward a forward.From to on come getting then that of So yes, won't a just warehousing third as there a to And of really the would and normal start of with a freight those be revenues, the product was revenues the higher it latter consistent pretty was part bit locations. a be costs ought because in. run it rate. a lot That quarter percent

on additional of locations initiative. our Northwest call to bit those market to a set we able getting to execute the in be path continue So what to up

in cash overall growth some that's strong it, macro about some also talked you talk position some cash type pretty here. the And of opportunity time, net the position, more a And you've same sounds organic opportunities about, M&A evaluating, a you just quarter you're there. little And Got then bit ended of nature on at the in set. uncertainty a tuck-in like helpful front. got and

how up all those thinking that considering kind about factors talk Just cash that you're of deployment? how shapes about

remains growth. high lot And in it our strategy provide with on our capital our obviously, our business investing service customers. model so and really for very to much Yes, we're our allocation driving aligned warehouses a factories

tuck in just that look customers service that perspective, that us. for when ins many business Julio, There talking targets are a integrate. also, our that small are M&A model compliment help we most about part, some We the we're cases us us at actionable to help provide maybe that our vertically large that fit aren't are for good

small of when arise. they major the the So is opportunities focus

we'll got some service couple why about the few again, the basis. that facility, was really customers. addition providing one of doing.As business And new building didn't some our and the debt up investments quarters, facility shares of the outlays we've to during to cash noted, a expanding model repayment next then on of But in here That to continue talked excellent we Ohio over the Columbus, that, Tennessee larger years, our comparable we up. part that over last in business that the just a any the quarter repurchase we've reasons larger cash of within to was on follow-up coming

So of say, here start just a get levels would capital to to back bit will, going I working normal forward. traditional that

helpful. Really

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

you housekeeping any X immaterial. in and said expense impact expect or measurable X Just quick terms you quantify anything breach cybersecurity you Can incremental in know of result as I basis? go-forward a a of impact spend/margin QX on the follow-ups.

it noted, through with from lot and of the process be Brian. wouldn't come a as material immaterial expect catch-up still expect still orders we're Its had we're but investigate, we or able evaluating that perspective, working operating income I the through an wouldn't to a were but evaluate to investigating amount we Dan, to I and Mike it. to it Again, had amount. noted, that be

capital of investments, net then already you're the but, on cash have question, out in And quickly and allocation following-up significant position. been Perfect. building a obviously you terms is still just the buybacks, of cash in some market

So, debt? down remaining pay versus the here that continuing to and would opportunistic maybe to weigh be you again look Just any there? thoughts

we're look definitely. to of those all going Sure, so at

repayment, at from to opportunistic So, similar a the repurchase to what an debt the share the year, evaluate of and last year bit perspective. did we likely of end continue little

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