Simpson Manufacturing (SSD) 5 Feb 242023 Q4 Earnings call transcript

Greetings. Welcome to the Simpson Manufacturing Company Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] I will now turn the conference over to your host, Kim Orlando of ADDO Investor Relations.

You may begin.

Good afternoon, ladies and gentlemen, and welcome to Simpson Manufacturing Company's Fourth Quarter and Full Year 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 that 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

reports, to the and company's required Except revise the are of We corporate publicly public of encourage no today, otherwise. in obligation future by company's the to extent the statements website. read you securities available applicable we described the events laws, on risks that or the forward-looking filings we undertake whether which or update as SEC's new or any make here a result to information,

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

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

fourth priorities. Magstadt, Kim. will remarks Chief performance, everyone, Good greater detail. you Brian thank joining financials Financial Brian you call. on our fiscal our quarter update our Thanks, an and our With an is allocation today then Officer. and and today's My overview provide capital today me financial XXXX will for outlook of afternoon, our XXXX through markets in end talk

The was year billion earnings in second profitability net the team achieved customer and in diluted high entire and for in a of improved Simpson share. their operating $X.XX and a starts. like the above-market Together, XX.X% per we focus. with execution I'd XXXX with it margin lower begin income a by strong relentless half, but annual housing record challenging sales, growth $X.X thanking to market

markets gains our and continued all performance product Our across by end top was driven of share line lines.

our margin in additional Our areas guidance, contributed launches penetration. new our expected record product due of income growth has in of number opportunities in came below market October primarily XXXX. XXXX impact an pursue stronger the with This and a to to operating to incurred costs in products

North which were in up X.X% U.S. $X.X saw XXXX billion annual net a declined year a outperforming improvement American total our an to Importantly, the by last sales on market, broader from housing X%. X% volumes, approximately starts of

high partly and end in modest single-digit component Our in offset volume was commercial market. and and outperformance manufacturer a OEM, markets which minor by by retail national in was driven residential reduction our increases increases our

longer in revenue the of are to ensure We over we improve foundation continue our proud for that this the elements continued of to will outperformance business invest in and and lay year's XXXX outperformance, we all term.

levels, below U.S. of XXXX XXXX a homes shortage housing estimated outlook While attractive the finished this in believe modestly XXXX. improved we approximately million than coupled U.S. for following still is the given with of underbuilding, decade more an starts market, X

ambitions new X.X% over of choice million. double-digit $XXX.X leader net of partner X.X% XXXX. XX% innovation underscoring for achieved continued we've we performance, markets further benefit our in were component to approximately American further increase commercial the of to QX markets as QX the down customer volume manufacturer To we net a in the wins, be up year-over-year our our break to $XXX.X million, to various residential, contributing improvements sales quarter, American reflecting In North fourth growth totaled North serve. and sales in an from volumes year-over-year, and

national to retail year, only the in while single-digit In last compared low the slightly. OEM market, our down volumes was improved range

on a sales increase of over Turning XXXX. XX.X% net reflecting million, currency $XXX.X to annual XX.X% of Europe. We or an basis generated local

X included sales net full XXXX ETANCO our XX XXXX. revenue months to reminder, from months of a a in compared As

on data prior market, based a XXXX with European levels in very ETANCO the challenging were year for sales period. line annualized Despite

activity, While headwinds the value-added gross driven remainder construction economic to European versus with has margin pricing of our continued levels, improve European cost business our due historical to was lower management. primarily down and by effective tougher

housing solution Europe, and with broader our that approach, increasingly drive use high regulations trends, will environmental including stringent shortage. Our the benefit wood secular selling new us coupled service the combined applications Simpson construction growing with confidence in levels give from ongoing of

us in year and year, costs On lower XX.X% gross a to by XX.X% from warehouses. our The factory, higher will on in key partly full raw performance have better offset our margin reflecting our drivers provide customer shortly. margin improved even and costs gross business tooling productivity improvements, QX margins Brian in consolidated elaborate basis, last of further enabled our higher to material invest fixed our further and support.

our markets on an well wins markets. new a of and I'll X update our business products our the These to developing we high portfolio of increasingly now levels, solutions software innovation serve. the are Beginning with service complete turn to diverse market. result within commitment customer wins as for as our end-use and residential

a We lumber in yard converting connectors. process Northwest the the XX-plus are chain location dissension in of

to our addition, direct to discussed partners. distribution to away from incremental market X-step sales path by In distribution shift our led previously has going

we share range offering us additional to multifamily broader In to will product and line anticipate sell delivery a expanded further drive availability services. appeal recently our given of industry-leading to our provide our projects, which distribution enables direct to we our Going also gains, and space, the product partners complete product standards.

to continues and earn and generate field commercial In projects on support distributors specifications our to demand field. dedication the the in engineers, educating solutions our market, contractors about relationships, commercial strong and

project building in and the examples product on large the Coast, public on project specifications Northeast include Simpson recent a retrofit South. Some the safety an institutional West a in

frame OEM modular Northwest. projects, space, project homes, in sheds, construction in our more to continue windows the we broad containers. continue participate connectors to renovation new timber easy Also a was which saws example including to opportunities customers fasteners, mass of In and we offer grain unique new one a producing in solutions, range and identify the plates, to OEM market, new of trust storage library and the

new demo provided performance enhanced contributed Within roadshow XXXX. the opportunities identified strong our X also as and national education our space, staff, center which improvements and and year-over-year of In to we QX, tested for new our opportunity building we [ home merchandising efforts our markets PROs in secured outdoor regional to products ], the participated and sales presence. center as relationships, at enhance retail in products events customer well home customers which

as the to from continue And multiple onboarding manufacturers finally, formerly Building trust increase market in share component medium-sized our customers. we component manufacturer Technology, known market, by

In produce leverage our addition, automating easy frame more enabling solutions, we customers lumber to had saws, precut which the process strong by detailed efficiently our structures technology printing with interest in instructions. our

trusted of years, The recognition share strong result market. position high in and our nearly combination of XX a model, as business built which drives the our wins brand reputation over these gains and differentiated

and quartile U.S. starts proxy and be within the to quartile an of above-market returning markets commitment has ETANCO top are within housing operating which and our being top being in fostered growth strengthening our continuous choice, continuing culture, we peers. integrating partner to ambitions, company our to our improvement the we core ROIC margin of the proxy operate, peers Additionally, leader of relative to income including the our our innovation pursue, values-based

capital on a to turn discussion I'll Next, priorities. our allocation

of acquisitions remains expenditures, operations asset strategy generated returns. quarterly repurchases focused million purchases, opportunities and $XX.X cash in duly from financed growth in $XX.X Our on we stockholder In $XXX.X million, million strong and capital which both XXXX, dividends. million cash share million $XX of of $XX.X and

down incurred the We million to paid also ETANCO. debt in $XX.X we acquisition finance of

facilities our us in and achieve manufacturing operations Our providing making and expand capacity to focus we relentless are greater to services even customer chain while enabling world-class supply our efficiencies. investments our

on and growth previously, that above we We compounded recent M&A us key accelerate initiatives noted pursue of help efficiently. annual will and progress evaluate rate the term. operate investments to will sales long more our over our growth mid a and As help market us future believe opportunities strategic concurrently volumes accelerate

housing us our North this for a growth top historical for performance ambitions U.S. quartile achieving average include market also XXX approximately accelerated above starts profitability. Our America basis points exceeding in while

I in an XXXX ongoing am outperformance pleased challenging our In market. summary, with very

We than the challenging a for month-to-month market on first the and be of variability second for will demand the to believe the more level year market half see half continue of year. this the

with XXXX strong new position from Balance, Our are growth, to latest for on expansion end ensure market we market different deeper with single-digit markets outlook. continue our low has view helps end improved to the a have the outperform into in applications. to we the prior up us

returns. to structures that improve resiliency We forward strong that design and Underscoring around balance XXXX solutions our mission the help sheet and strategy fuel helps build growth stockholder to our position long-standing furthering structures our in to history stronger communities of safer, execution and world. liquidity of is and look people the provide our

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

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

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

quarter Now beginning our fourth results. with

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

lines, to increased million, volumes sales higher net decreases due all $XXX.X across product offset XXXX. during segment, America which of were North first quarter partially the the Within X.X% price by to implemented major sales primarily

segment increased up to wood a due a costs. million X.X%. profit a and of due to product partially net gross were currency sales higher translation. XX% X.X% net gross XX.X% Consolidated million, increased labor warehouse and tooling, foreign was increased shipping XX.X% X.X% costs offset In by million, positive effect North in lower compared volume in XX.X%. percentage product resulting $XXX.X was to XX%, compared $XXX.X of factory of Europe, to margin as America, to $X.X America margin up primarily to gross volume to which primarily in sales, our and North the On raw In basis, in material concrete

primarily lower from to increased costs Our gross XX.X%, margin a Europe material of percentage due net raw to sales. in as XX.X% also

As a of representing for fair prior value X.X our costs percentage ETANCO, margin. the in of points raw year you may also the acquisition adjustment gross included material million Europe $X.X recall, period inventory

XX.X% was our XX.X%. XX.X% products for on compared quarter concrete margin compared to perspective, product a wood to products was From and XX.X% gross fourth

expenses as our an increase to approximately personnel or costs operating expenses. as million, well greater growth, quarter professional turning due higher increased to fourth primarily $XXX.X fees million XX.X%, our $XX.X and Total compensation. costs Now variable operating drive of were to

fuel which solutions, Simpson enable increased digital development these our to deliver takeoff of of and and products. investments designs to services to products, and engineer customers costs select Many new and continued specifiers are

compared XX.X% XX.X%. were a percentage expenses to of sales, As net total operating

further our further those million, including supporting and growth $XX.X increased and increased increases To due engineering fourth development our XX.X% to sales America. expenses research end software and and sales in initiatives to support investments, XX.X% our initiatives. detail on Selling expenses and costs North $XX.X SG&A higher to quarter strategic increased markets to to development the personnel team commissions to million, higher primarily

On and to a up due software professional in North primarily and were Europe, XX.X% they personnel fees to selling increased administrative XX.X%, were and basis, costs, segment licensing. expenses General in America $XX.X million, X.X%. expenses up

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

income operating X.X percentage decrease a Our XX.X%, XX.X%. points consolidated from of margin was

reflecting $XXX.X million compared our to full income our increased to a from of modest margin XX.X%. only However, consolidated decline to income XXXX, year XX.X% the from for million, in X.X% $XXX.X operating operations

testament while difficult noted, strong with expectations, announced business throughout our in recently we to cycles. model to operating enables environment pleased very performance was a our Mike us as As our financial further we below perform market this that were

million, million operations higher costs. well compared was was income from inventory $X.X variable operations fair prior partly personnel due $X.X profit, as to In value acquisition and Europe, lower North gross income offset costs, million adjustment the increased integration to year-over-year profit. gross X.X% to million, which by professional $XX.X higher partly In America, to from fees year's primarily $X.X due and as decreased to compensation, related

$XX.X XX.X%, tax period. share. $XX.X the million with rate million fully or was consistent per year Our per net $X.XX to $X.XX fully or diluted income effective Accordingly, compared diluted totaled prior share

Now our flow. sheet cash turning balance to and

working million and million to totaling at remained capital, September healthy down cash at in XX, balance balance a equivalents and from debt sheet $XXX.X on December balance XXXX, repurchases cash and revolver XXXX, Our $XXX.X repayment XX, from at our due up million December $XXX.X XXXX. stock XX, changes our with

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

We have $XXX million our on line primary for borrowing remaining available credit. of

XXXX, $XX.X to was increased $XXX.X of as million, position compared which XX, XX, XXXX. pounds up to September on in our Our volumes due was balance support increased million XXXX, to hand expected order December inventory as in of sales

management standards and key element Effective the that inventory remains business superior delivery service ensure on-hand model of competitive on-time levels we drive our strive advantage. of as a our to customer

During the million capital compared quarter, paid in $XXX.X we operations $XX.X stockholders. for generated from our to million fourth of flow invested to expenditures dividends We million $XX.X $XX.X cash million. and

XXXX. of repurchased the million at stock of XX, authorization, common about $XXX repurchase quarter to $XX our January XXX,XXX On effective Directors shares which approximately authorized of We year-end. up stock during X for expired under million $XXX common our our year-end the October million for through Board

strategy. repurchases as of opportunistic evaluate capital allocation our to continue We part share

XX, per of our April Board on XX, the be record will January which payable quarterly a of declared X. cash on share, dividend stockholders $X.XX Additionally, April on

Now turning XXXX, February and outlook. guidance are on to follows. as Based for as ending of XXXX conditions initiating year X, our financial we trends December the XX, business full today,

on Key market; a million level of growth expect total in position other a of and in based XX% expected necessary continued to in as synergies XX.X%. $X lower overall above factory margin meaningful gains of addition housing net $X in in the our warehouses increases We we moderate assumptions modest slightly to integration labor to with growth the as in markets million our as gross believe expenses sales; and operating new the company include: costs ETANCO to at be and expected Europe. and percentage tooling share operating range associated are margin make initiatives; well a the to

million which be interest million, and rates. Next, and from XXXX, to $XX the rate all $XXX.X term December XX, borrowings cross-currency respectively, as mitigating benefit swaps, expected of outstanding approximately expense volatility interest credit on the of of revolving and have interest including facility the in is loans, substantially from $X.X changes million

Tennessee. continue the be approximately $XXX based million, income Ohio Our are federal finally, tax to the the for includes be the capital to XX%, laws. state range both in including tax fastener expenditures effective Gallatin, to tax rate the and estimated which in rates estimated is on And to $XXX of construction expansion of XX% facility million new Columbus, current of facility and

financial in broad revenues innovation our above In summary, we grew end-use XXXX and value rates. We and growth set where key performance were remain very our expanding we pleased on with market operational throughout our our focused providing X solution service, customers by markets. excellent

strong organic initiatives. balance investments make enable us support and cash to to growth sheet Our our flow

now With operator our the call of Thanks will again session. for Q&A at of Simpson performance our I that, stakeholders team strong your for begin to to the all the company. and the to turn support over the to

first comes Securities. Our Instructions] with [Operator Daniel line the Moore CJS question from of

the -- color. with all appreciate start To I

for market outlook a starting HX than out perspective. from housing little tougher you an the mentioned to relates it overall 'XX, maybe As HX

is the you to growth generate your see little Or tougher positive in growth that? goal being your as do business half maybe year a HX cadence bit of in overall see positive first continue do the achievable? the to being flat market, in Given than you above to

It's Yes. Dan. question, good a

bit, little little again, down our from hearing we're what is half, a second to maybe flattish bit. a up customers first So half

single-digit definitely So hear stories all growth. up, our different And customers. do add from different low it maybe then we

the tend hearing a a smaller Our be end on customers what the lower market end larger That's to that. and be to builders little of that, perspective. from higher tend we're on of bit our

annual points, last market on over higher from housing the an that expecting And we're basis from average, years, in we we've to company We outperforming would of about market noted to by be release the grow number above a perspective. than the that expect perspective, been and the XXX that.

retail increase commercial, needle penetration, on see growth the And helpful. Where examples. of Very you you've good kind building and the penetration markets others. for do targeted opportunity gave further among biggest then to And this moving the tech, I national year? you Perfect. looking coming know at

Dan, it because had customers. similar I had year, growth good -- And all bit on our me we year. really let a comment XX,XXX-plus carries We've know model business and think really, last year our Yes. We've across over all across XX,XXX-plus into of solid good little market SKUs, to this last major lines. product segments you got well.

the to applications it's So small- lots move of medium-sized lots and needle.

playbooks there the XXXX, are happy market into by as happy mean really have have or aren't playbooks product huge I very by going way things we And look with segment, we shift we're very the opportunities to we segment. another. with one

continue and so of really see to our markets across -- And all we lines. our strong product and growth

of more one a And review. little bit Perfect.

comp And at Obviously, in the was XXXX saw, guide? that are in revenue given for difference embedded in Just then I in you what kind you was looking considerably, the up pointed year-over-year? the assume what it SG&A growth incentive expectations your quarter, out. your variable the that the of SG&A strength

make Dan, statement SG&A general it a let on relates me our as to financial.

again, profile. nor and software to is customers products model the really these to drive nor salespeople mentioned, products specialized to very that specialized working applications. find easy we all run need we find It's end the model to easy new know develop to a people. not that and on develop engineers can we that the the innovative fit easy engineers that to it our our markets that we're not And find business our need business products people run it's those So find I factories, we need with very, very to

We to up high we the tend them, people sure do team. them. Dan, can everything we best want train them to we specialized. and super make retain And the find to And we our to want bar then We hire we them. for is

on side, we're much very -- quartile versus profitability converse mean, to but group. that, proxy peer cost I committed above-market the also So and the also ROIC income of in with our top operating -- we're growth

look at when in help doing we same we've would, years targets above the So better knew in forecasting financial better our we support even about one, to this us years. X overinvest customers, our said, started market. areas grown years, provide that some market margins. growth. to the enable for still X last of business couple the while to gross us would We Brian time, accelerate at last and the basis been now or so, we've planning hitting XXX future seeds And as the And that points

the But the X provide that we've above last grown and our business invest over market. the great able been XXX to support for basis years, we've points in customers, about

a pre-COVID And we years. us And also can improvement the accelerate even think housing that the there's rebounding market that the versus in realized advantage we shortage at that XXX model us we of keep place have more. think to look Dan, so up, helps operating again, really that the business of points margin market that, when we'll basis we've business picks people as help that take

And some expenses. Dan, of operating the little to on SG&A specifics or into of get bit a the broader

little looking kind be multiyear perspective, equity negative associated with the of lower we a out ultimately multiyear then from we've the expense a equity more year forward bit there. expectations an to performance grants periods. reflected turned of were to XXXX So And and it compensation got than at and be XXXX ago,

equity those in Fast forward at, take we award, in that the in a again, as that. to we look seen relative we've Simpson's year, much market to an And more performance years have expense forward period. a robust

was quarter, equity quarter the different. 'XX $X So comp fourth to fourth over million just compared in of

SG&A, it trajectory the that digging a line Not set growth expect around bit to specifics year. little be you to we in in with volume pretty would on this

pay we're growth, pretty attention close that and things we growth, would we line much revenue noted, expect the to. a forecasts as lot that's be And volume investments, business drive making that we our relative projections. our but look of to growth something with One our in really today, are decisions those to to of SG&A to dollar Mike be our how

see down, impact we if And want long do us don't we things medium that to term. things slowing over to the that

do But an eye we want shortage perspective. SG&A that As sure we fundamental make Mike housing. off not to in noted, our from the we're see taking ball also

updating that and noted, gross we So longer-term to that in ambition that XXXX Mike little market win that's a bit opportunity see ultimately an grow little internal bit And started as going be operating things because took our to average to in. above our more forecasts Again, we volume, to our we we are more those above spent time lot invest of the in us helps one currently. areas when a a to we think of as our plans. grow margin, and

in Were question I there any missed? other items your that

you No, We'll Appreciate any it. offline. further That's very it again. helpful. covered take

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

guess Maybe expectations to kind And just of kind cost margins, start in just guidance? the price new I I guess, and the how costs? some off of that guess, distribution included capacity seeing I on compression the higher, frame and any you of that modest by there driven you're would labor the is gross you've

this Brian. Tim, is

relative additional that you costs. margin just 'XX back warehousing costs, items gross So additional for to small modest would labor those pull mentioned, be factoring for tooling a in 'XX costs,

manufacturing the fair we is online. our year take One new that bring in we operations depreciation overall a things of of the amount of as equipment online, comes will that part expense

going fourth to major in labor we relatively little the raw the of look online of and materials elements some a flat and But are it's come cost as quarter, be of that costs. factoring tooling percent they our I'd then when an as of more the say warehousing a other drivers bit the impact. sales, revenue And are at

Okay.

Or just was to some -- investments? mean, of spend generally you you on thought And Okay. 'XX? it pull investments, would time it QX the higher anything is characterize the an of was just SG&A kind that as That's some helpful. And it of I of acceleration some the into specific? in an then of

a we in XXXX. technology got made to big those at component for we've Well, look in manufacturer general, the of us, mean one in of win able gains. types it's looking we've in as investments market the be pave investments for contributors investments win not planning we're is spent business. And we for that I to us particular, some space lot -- help in was the what the of that technology XX share helped But and future QX. top us at that helping way a wins we're

When we look to a growth. number hit keep at us products above that to and need in noted We to for trajectory market product continuing development, ambition of achieve of we order that that we've XXXX. launched, keep record to were our that need in

We and also product buy and on want in some we the as get customer our because competitive to shelves conversions as sometimes there back got to soon product product our we've had possible.

number So that. contribute areas there's a of to that would

means as to able teams we associated key sure that positioning and to activities as getting soon sooner, And win wins go markets. quicker end want those these And to products the make we some sooner, We we're end done software to in development that. can. customer these if and those do our want want market we getting or to of after launched to with be get done

Okay.

And sense. I just makes to on revenue it. a All then make growth. one last want the of right. sure I just lot That understand Okay.

basis for mid-single should revenue XXX the tell is are outgrown you in grow the single-digit by North points, and growth digits? would North by us? now least at you expectation you've Is market saying consolidated end in that kind low of that American what that of America if you kind So the

Yes.

least want market. the digits, assumption, be points at single above basis continue and we Market low to Yes. to XXX

next question Davidson. with D.A. our the comes from line of Yinger Kurt And

investments I it business as that little going drive, American do But increased going -- And a gross distribution opportunities mean guys that's look forward? mean, new your those think gross opened is I North drag I guess, be line? thinking are you hubs of of bit sounds something the some guess, longer of some will how you margin opportunities you the I to levels how about in in-house? margin the that? from there a across like Or term, spending about warehouse and to that on warehouses for footprint, that And take you capital are you XXXX. more

Good question, Kurt.

example, So Kurt. tangible a real

specs, two-step can and moving you of of the partners them, that we're distributors, product our or As to now we end doing we're moving can board tell the the things our away is can in that explain through. West have process. to whole can them we them go the kind to line, last know, channel interaction from builders needle across to distribution part everything we we're And as with with pull we drive we tell everything doing start

particular, there think a make nice gains. end help And actually And our of in by we customers. some was and do these having went of mid-single-digit carry now to able and I customer, We product number didn't access to started a can end couple them telling of line. they them everything to stores, their it we one distribution customers, was been we've really in help

we not to we our right want there. of we're warehouses pretty why fantastic within exactly fastener did the Kurt, to and customers that now, we we exactly day business, the only close need of but And to customers. Ideally, our we also and want X service support provide be to all end And that's picked level. the and Not business. close to be connector up the able go that, that up shipping direct to pick service anchor to

provide we those some that customer a enables of to think service. As that we We've sites distribution, can we away provide provide also the couple us we two-step to support same-day got That things. via support. more and windows shift good needed from other do a couple to

that then with we goes And margin, the away. pick that that do our obviously, part helps to share. we think had up continue we So us two steppers, that

to be Some we line we some because and that. able of of we service to to the invest -- say the on that support we need get that or top provide

Got it.

Okay.

hopefully, with more it's of opportunity an gains some associated then reinvest sort uplift service, maybe So of and share to customer any margin a that.

So a that right competitive huge it's gross time. strategy. the driver over It's positioning Is way more not a think margin about of it? to

Yes, drive help help more and customers growth. us our and serve better support us

it. Got

being sense. And single-family residential of versus on new maybe per of between construction, that growth and dampened single-family the about or kind Okay. by you average? the think us or perhaps side, units you a whether you it's think And dynamic? then backlog single-family markets content under of multifamily. on terms How tale remind you do construction, of two carry Makes of kind think multifamily just can the XXXX? Can about through multifamily unit in how in you offset weakness

Yes.

average at on curve, content there's there's the content house, to be engineering. hurricane we if they U.S. since in average the more maybe areas, garages less in more family similar have the our they So look to Midwest. on on multifamily, per is content to in you average. single multifamily Coast the tend Obviously, think But tend multistory, the on across West and

Coast, -- Midwest. more I see hardware what extremes we typically on multifamily general Southeast at on those mean, in out at single-family in kind the West there's So of balancing versus

different is that multifamily sales. of the sales From how single-family XX% it's about, perspective, markets of content-wise. depending relatively summary total upon The talk consistent a of roughly

Sorry, starts. total

Total starts, yes.

family.

XX% total of starts. Roughly

we multifamily think would construction, segment, wood that have that of where If apples-to-apples is predominantly you we look X/X about comparison. at the

construction they wouldn't other maybe our perspective. or be concrete on as construction X/X be applications nearly would as or could a as those wood high in from -- The steel

of last expect again and single-family driver way another. kind between think years, of be So don't or we've out, this couple long huge mix that balance that The story and short, a year. we seen we'll we the see to one multifamily,

Got it.

Okay. kind That's get not just $XXX helpful. I million those how associated too And related with Columbus and of into lastly, Gallatin, specifically? then spending guess, do to would but of to year, XXXX this carryover far think be you ourselves, projects ahead much

shouldn't much. It too be

of breaking ground Gallatin, to now. $XX spend that's year. something on is should complete year? this the up spend would opened and in then So early Yes are XXXX, end million, $XX expecting Then that of -- Columbus we -- balance year, I about this then expect million note. to that have next not next year, we're we actually

year million So some then which CapEx, will when total spent into $XXX Gallatin, this in actually the that about noted be is over as total of we next carried year. and for talked the

it. Got

I of whole? then, how visibility about you And or in growth for Any outlook Okay. sort guess, of metrics, that as kind thinking on a have guess, And for ETANCO. the guys terms near-term business? kind whether I XXXX just just backlog lastly it's of you're of

the over So ago. a just to similar couple they're not Kurt, from was long-range our of business U.S., customers. weeks I in forecast their And there getting

an and work it they get next try they within to to projects, X. or day they the So tends order it on be ship out

don't the we a backlog. view have So into great

Overall, French business, doing we that is continue to particular believe segment okay.

As flattish we the was a market. remarks, said in business year in prior with our prepared negative

over So there. we're with pretty gross We're pleased pleased the margins that. with

model. And buildings more we that us. commercial regulations more business for think efficiency the and think to business is come grow people a residential it's of the increase energy that good place again, more continue the to going We thermal into to require and

And prior that facade particular segment was year, up business. the of XX% over about XX%, ETANCO business

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

reached we session. of question-and-answer the the end And have

you concludes at this and -- which also conference We may participation. lines you your your also for this time. disconnect today's Thank