Simpson Manufacturing Company Posts Mixed Q4 Results

Simpson Manufacturing Company (SSD) reported late Thursday mixed Q4 results, with revenue topping forecasts but earnings missing by a penny.

Q4 sales of $200.2 million, up from $184.8 million last year and ahead of estimates for $196.8 million. EPS were $0.36, versus $0.30 last year and missed estimates for $0.37.

The company also said earlier in the week that it will convene a special meeting of shareholders on or around March 28, where shareholders will be asked to declassify the company’s board of directors over a three-year period and provide that directors be elected for one-year terms beginning at Simpson Manufacturing’s 2017 annual meeting of shareholders, and eliminate cumulative voting in the election of directors.

On Friday, investor Iron Compass Partners, LP, released a statement saying that this meeting “comes on the heels of a hard-fought effort by Iron Compass to help the company improve its corporate governance profile – an effort the board vehemently resisted.”

The investment firm continued, “It is curious to us that the company has decided to incur the additional cost of a special meeting to vote on de-staggering and removing cumulative voting after we sent a letter to the secretary of the company on Jan. 19 indicating our intent to elect for cumulative voting. After all, the company could have simply allowed stockholders to vote on de-staggering the Board and eliminating cumulative voting less than one month later at the upcoming annual meeting of stockholders scheduled to be held on April 24. We believe that the board is attempting to eliminate the right to cumulate votes at the 2017 annual meeting in an effort to insulate itself from change.”

By Bucky Rini