Simpson Manufacturing Co., Inc. (NYSE:SSD) Q3 2023 Earnings Call Transcript

Brian Magstadt: Yes. So it is a good size market for us. We – a lot of these people are also buying connectors and other products from us. So there’s some opportunity to leverage our relationships we have with these customers to pick up the truss side of the business. We continue to invest like crazy into the software space, and we’ve made a lot of progress in, in that area. We’re adding people to provide service and support into that area. And then again, you combine that, Kurt, with, with our typical service levels and also making sure that we’ve got an open, an open environment, meaning if people use our software, they can decide where they want to buy their truss plates. We think customers prefer that going forward. And we are very mindful of how we’re bringing customers on.

We want to make sure that we do bring them on, that we provide that great experience, that great service, that great support so that they are successful at the end of the day. And we do believe that we’re going to continue that forward into 2024.

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

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

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

Brian Magstadt: Yes, I think it’s – a lots of small things adding up to good growth. So certainly the load in as we picked up a couple of customers has helped. We continue to work with our customers to get additional shelf space. We continue to work on off-shelf merchandising. That makes sense. The attachment rate is a big focus for us. We’re also investing in e-commerce, and we see good growth in e-commerce with our national retail partners. And as I mentioned, just sending people into the stores, helping them clean up the set, helping them merchandise, helping train the associates, you add all that up, and that’s helping us get good growth in that market segment.

Kurt Yinger: Got it. Okay. Well, appreciate all the color, Mike, and good luck here in Q4 guys.

Michael Olosky: Thanks, Kurt.

Brian Magstadt: Thanks, Kurt.

Operator: Our next question comes from the line of Julio Romero with Sidoti & Company. Please proceed with your question.

Julio Romero: Hi, good afternoon, Mike. Good afternoon, Brian.

Michael Olosky: Hello, Julio.

Julio Romero: Hi. So just a, just a couple of quick questions for you here. Just first of all, wanted to ask about some of the inflationary pressures you guys called out. Aside from steel, you talked about some higher warehouse and freight costs, I believe, in both North America and Europe. Do you see some of those costs moderating or, or have they, reached kind of a level where they’re here to stay, and elevated warehouse and freight costs are just kind of a fact of life?