Simpson Manufacturing Co., Inc. (NYSE:SSD) Q2 2023 Earnings Call Transcript

Brian Magstadt: Julio, it’s Brian. So part of our operating margin guidance for the year incorporates where we see material is a large component of cost of sales and as consistent, we don’t disclose how much material or steel is as a percent of cost of sales, but it is the largest component of that. And we feel it’s — it should be pretty consistent on a go-forward basis based on the steel markets where we’re purchasing where we are positioned with inventory and the volume assumptions that we have for the back half of the year on how much we’re going to consume of that.

Julio Romero: Got it. That’s helpful. And then just last one for me would be just on the CapEx guide. Just talk about the step-up in the guide. And is that related to the Tennessee facility or any other kind of capital projects?

Brian Magstadt: Mostly due to the Tennessee facility. So we still have a fair amount of spend for this year that we anticipate for the Ohio expansion. And then some spend for the fastener factory land acquisition and some associated costs for that.

Julio Romero: Really helpful. Thanks very much for taking the questions.

Michael Olosky: You’re welcome.

Brian Magstadt: Thank you.

Operator: Thank you. We have reached the end of our question-and-answer session. And with that, this concludes today’s teleconference. You may disconnect your lines at this time and thank you for your participation.