Simpson Manufacturing Co., Inc. (NYSE:SSD) Q1 2023 Earnings Conference Call April 24, 2023 5:00 PM ET

Company Participants

Kim Orlando - ADDO Investor Relations

Mike Olosky - President and Chief Executive Officer

Brian Magstadt - Chief Financial Officer and Treasurer

Conference Call Participants

Tim Wojs - Baird

Kurt Yinger - D.A. Davidson

Daniel Moore - CJS Securities

Julio Romero - Sidoti & Company

Operator

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.

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

Kim Orlando

Good afternoon, ladies and gentlemen, and welcome to Simpson Manufacturing Company's First Quarter 2023 Earnings Conference Call.

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

Please note that the company's earnings press release was issued today at approximately 04:15 PM Eastern Time. The earnings press release is available on the Investor Relations page of the company's website at ir.simpsonmfg.com. Today's call is being webcast and a replay will also be available on the Investor Relations page of the company's website.

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

Mike Olosky

Thanks, Kim. Good afternoon, everyone, and thank you for joining today's call. With me today is Brian Magstadt, our Chief Financial Officer. My remarks today will provide an overview of our financial results, key growth initiatives, and capital allocation priorities. Brian will then walk you through our Q1 financials and fiscal 2023 outlook in greater detail.

Net sales in the first quarter totaled $534.4 million, an increase of 8.3% year-over-year. In North America, our net sales of $406.3 million declined 7.4% year-over-year, primarily due to lower volumes. Significant precipitation on the West Coast during the first quarter drove materially softer sales in a residential end market contributing to the decline. As a reminder, builders use a higher volume of Simpsons content in homes in the Western and Southern regions of the United States to meet stricter building codes that address higher wind and seismic requirements.