To our stockholders, customers and employees:

Growth Founded on Service

2021 marked Simpson’s 65th year of operations. We are extremely pleased with our financial and operational performance over the past year, despite a challenging macroeconomic landscape for Simpson and our customers. Challenges included ongoing global supply chain constraints, limited steel availability and a tight labor market. Nevertheless, we continued to deliver on the key elements of our business model by providing customers with our trusted product solutions, typically within 48 hours or less. We are proud to continue to operate our business based on the same principles and values set by our founder, Barclay Simpson, 65 years ago. Accordingly, we remain dedicated to customer service and our no-equal employees — both are core to our business and have greatly supported Simpson’s growth throughout our history.

Financial and Operational Execution

We had a very strong 2021, with net sales of approximately $1.57 billion, up 24.1% from $1.27 billion in 2020. We experienced solid business momentum, with sales growth supported by the implementation of multiple product price increases to offset rising material costs. These factors, coupled with continued operating efficiencies, resulted in strong earnings of $6.12 per diluted share, an increase of 43.3% year-over-year.

In March of 2021 we unveiled new, five-year Company Ambitions for Simpson:

1. Strengthen our values-based culture;

2. Be the partner of choice;

3. Be an innovative leader in the markets in which we operate;

4. Continue above-market growth relative to US housing starts;

5. Expand our operating income margin to remain within the top quartile of proxy peers; and

6. Expand return on invested capital within the top quartile of proxy peers.

In addition, we announced five key growth markets, which we believe will support the achievement of our new Company Ambitions. Our growth areas focus on expansion into the OEM, repair and remodel/do-it-yourself (R&R/DIY), mass timber, concrete, and structural steel markets. We also aspire to be the leader in engineered load-rated construction fastening solutions and believe there is a broad product opportunity within the OEM, R&R/DIY and mass timber markets. Furthermore, we are working to be a stronger leader in building technology solutions to help our customers run their businesses more efficiently. At present, we have existing products, testing results, distribution, and manufacturing capabilities for all of our growth initiatives.

In December, we were very pleased to announce Simpson’s binding offer to acquire the ETANCO Group, a leading designer, manufacturer and distributor of fixing and fastening solutions for the building construction market throughout Europe. ETANCO’s engineered technical solutions and customer-centric approach align with Simpson’s values and business model, as well as our key growth initiatives focused on expanding into commercial markets and building a leadership position in fastener solutions. We expect the acquisition to close on April 1, 2022.

Increasing Stockholder Value

Our strong cash flows from operations generated $151.3 million in 2021 to support the payment of $42.4 million in quarterly cash dividends and the repurchase of $24.1 million of our common stock, reflecting our Board and management’s ongoing confidence in our business and strategy. Cash flows from operations decreased $56.3 million, or 27.1% year-over-year, due primarily to the change in the working capital component of inventory, reflecting our commitment to stocking material and products to support our customers, net of the other components of cash flows from operations. Over the past three years, we’ve paid $122.2 million in dividends and repurchased $161.1 million of our common stock, resulting in approximately 62% of our free cash flow returned to our stockholders, exceeding our capital return goal of 50%. Through our solid operational execution and this return of cash to stockholders, we achieved a return on invested capital(1) of 24.6% for the 2021 fiscal year

Servicing a Sustainable Future

Our strong performance in 2021 was made possible by the unwavering commitment of all our employees. The health, safety and well-being of our employees is a top priority, and we strive to ensure our business culture and practices promote diversity and inclusion and foster a rewarding work environment. We also remain committed to operating in a safe and environmentally responsible manner to protect our employees and help our customers build a better world. As part of our commitment to better communicate our sustainability, environmental and social responsibility efforts, we are very pleased to announce the recent publication of enhanced environmental, social and governance metrics for Simpson, showcasing additional transparency and progress against our goal of continuous improvement.

As we embark on a new year, we remain focused on executing against our five-year Company Ambitions and key growth initiatives. We’d like to acknowledge the dedication of our employees, who are working hard every day to achieve these goals.

On behalf of everyone at Simpson Manufacturing Co., Inc., we thank all our loyal customers, employees, suppliers and stockholders for your ongoing support.


Karen Colonias
President and
Chief Executive Officer

James Andrasick
Chairman of the Board of Directors


(1)When referred to above, the company’s return on invested capital (“ROIC”) for a fiscal year is calculated based on (i) the net income of that year, as presented in the company’s consolidated statements of operations prepared pursuant to generally accepted accounting principles in the US (“GAAP”), as divided by (ii) the average of the sum of total stockholders’ equity and total long-term interest-bearing liabilities (which for the company are long-term capital lease obligations) at the beginning of and at the end of such year, as presented in the company’s consolidated balance sheets prepared pursuant to GAAP for that applicable year. That is to say, the company’s ROIC, a ratio or statistical measure, is calculated using exclusively financial measures presented in accordance with GAAP.