Simpson Manufacturing Co., Inc. (NYSE:SSD) Q4 2017 Earnings Conference Call - Final Transcript

Feb 05, 2018 • 05:00 pm ET

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Simpson Manufacturing Co., Inc. (NYSE:SSD) Q4 2017 Earnings Conference Call - Final Transcript

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Q & A
Executive
Karen Colonias

we have put in place along with what we are seeing from top-line growth will put us in that mid 29% range from SG&A as a percent of sales.

Analyst
Daniel Moore

Got it. Very helpful. And last question Brian, I heard two different numbers for severance, I heard $1.9 million I think and then another of like $4.8 million, just help me understand what the total severance and any other kind of discrete one-time items in the quarter?

Executive
Brian Magstadt

So, the quarter $4.8 million was the severance and operating expenses. There was a little bit more in cost for sales, maybe about $0.5 million, but that was the fourth quarter severance. And I think that's really the only item of note on a one-time basis.

Analyst
Daniel Moore

Got it. Very helpful. Thank you.

Executive
Brian Magstadt

Thanks, Dan.

Operator
Operator

Our next question comes from Tim Lange of Robert W. Baird. Please proceed with your question.

Analyst
Tim Lange

Hey, everybody. Good evening or good afternoon.

Executive
Brian Magstadt

Hi, Tim.

Executive
Karen Colonias

Hi, Tim.

Analyst
Tim Lange

Maybe just going looking at the D&A expense that you expect for the year, I think it's up maybe $5 million, $6 million on a year-over-year basis, what's the -- from a segmentation perspective, how much of that falls in cost of goods sold and how much of that will be in SG&A?

Executive
Brian Magstadt

Tim, it's Brian, hi. So, we are estimating there is probably $4 million related to software whether it's a combination of SAP which will be put into use and will begin advertising that and then the truss software that we have been developing that will be showing some increase there. I think the rest of it is mixed around throughout the rest of the organization, majority of though which is in factory in cost of sales, but those with the SAP and the truss were bit of a step function in those depreciation numbers.

Analyst
Tim Lange

Okay. And then the loss from the acquisitions in the quarter, I think was $3 million and I think it had been -- I think that's double or triple what it was for most of the year, so what happened in the fourth quarter, I mean, is there severance in there or some losses to kind of keep in mind?

Executive
Brian Magstadt

No, I think it's more around the European acquisition for significant amount of December, the operation shutdown around the holidays and the like, but of course fixed costs are still there. So, I think that's largely attributable to that number.

Analyst
Tim Lange

Okay. So, it's mostly seasonal, okay. And then the 29.5% of sales as a percentage for OpEx as a percentage of sales, that's for the full year right, not ending the full year that's for the -- that's not in the Q4 '18, that's for that the full year '18?

Executive
Karen Colonias

That's correct, full year 2018.

Analyst
Tim Lange

Okay, great. May I know that.

Executive
Brian Magstadt

I know that -- well go ahead.

Analyst
Tim Lange

Sorry, no, go ahead.

Executive
Brian Magstadt

I was going to say you said 29.5 or saying mid-29, so just I know that maybe splitting area.

Analyst
Tim Lange

Yes, I know, fair enough,