Europe, sales good sales net North afternoon net solid well unit quarter, acquisitions, a third everyone. our million, growth had America. increased average prices due We consolidated recent driving in and to as to XX.X% with partially volumes year-over-year of and Kim $XXX.X in as sales Thanks
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are areas to locations our that should which regard impacted our the in a annually the years, over these housing disasters. In negatively continue is fires, hurricanes of the We and none rate to for indicator next U.S. improve affected by we recent at digit were starts thankful mid-single believe positive few business.
who employees, losses and these events. with tragic victims suffered our personal thoughts prayers remain and all with the have of Our
support to as ready they these be communities, will We rebuild.
call. for like our primary turn toward Now focus to today's I'd
achieve passing of our our business long been to that high walk today's industry company has of including a and presentation will of Investor quarter Today, Brian focus We Simpson it greater remarks, posted margins that note, slide Manufacturing leadership we change, of I execution Company. profit not strong the been a my has lot create XXXX is will our financials all make in press in has value prepared Please transition unique our CFO, our to on you substantial today's Simpson detail. site accompanying Simpson. operating unwavering XXXX which our a near third has believe thing call through that will and is services refer and founder, section ability gross provide will web the plan, and past Barclay however, decade, customers. today. focus undergone a release. supplemental our Following to simpsonmfg.com. changed Throughout to at Magstadt, our objectives, income Relations One on the We level the as for we of that our added as both differentiators, our objectives standpoint core leading from term our company a our due on discussion outlined on that value shareholders of earnings these believe
our our engineers active relationships customer get outlined or strong XX and involvement in building to officials key and delivery capabilities as On we construction the explanation last as them. our with less an to growth at Product through reputation, extensive state-of-the-art behind As lab, site. pull typically year initiatives, codes trusted test support aside and our and practices. for the education builders of product and our to testing the Simpson unique, strategy product brand call, we specified that job hours on and before, code our with plus with well is recognition availability contractors, blueprints stated XX strong engineers, from a improve deep detailed due
increasing growing fasteners far from experienced little space market to and and and our initiatives U.S. historically our not had compared decline housing support detrimental in the a our XX to only of U.S. helps believe current years. to performing lines have offer bottom our concrete, wood profitability to to share housing cyclicality the As we crucial solution us Europe, not we At housing areas, our developed mitigate products, the which bolster into XXXX, XX and revenue of connector XXXX. have software in Increasing business, are below until concrete complete our Europe, to more wood lengthy over still XXXX, cycle, the in Europe. peak, The but a in of decreased mitigate are been market a the only sales product of starts recent reminder, share share operations product continuing peak-to-peak more XX core truss half also downturn customers ranging initiatives In in had at to growth our years most U.S. such as our exposure would core the these offering. the these in We include cycles, to exposure to to other starts, our market. XX%.
acknowledge we we our said, provide of will the to in results. financial diversified financial and as believe That would this, the X, term paralleled XX% product in We positioning nearly today. have more have remain would we the starts. housing committed lines, recognize has into leverage transparency the objectives, on it and on strategic by growth. do other need consolidated operating initiatives our for depicted However, suboptimal slide In drastic decline increasingly begin which that contributed growth declined to long light our so our closely additional with sustainable plan to that chart of U.S. and our to pursuit profitable we Simpson business,
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working to XXXX company-wide discipline. And substantially invested profitability. and capital on structure, XXXX return improving third, sheet rationalizing to XX% our plan, enhance capital the will from XX.X% balance objectives range a improve in a cost XXXX. these by Through execution XX% on Second, believe we management of to
optimize with Simpson. emphasized a of with action, have more approach dual we particularly strong meet targets supported past, more acquisitions track as business. to forth towards capital in organic XXXX we organic their go in the focused our strategy, a we on more be as to plan we addition, the In strategic and for while not in putting it relates we initiatives. forward aggressively to part to shareholders to capital return financial our the aggressive growth, will reward confidence creation are them take are and If transparent by we fold today, to investments strategic Beginning growth bias growth, in would value
business. deemphasize production particular fastener forward, As is such, the occur, going to space, exception acquisitions gain beneficial we will additional relates capacity concrete our may arise opportunity will An as the be it which we wood believe area it if in where core space. especially support were right our activities to to to the
of X% growth achieve XXXX. an [ph] consolidated expect from net Given reported sales million our the for $XXX XXXX annual organic of we our net compound strategy, through to approximately rate sales
fasteners steady annual growth includes we market growth expectation increase with to starts assumption In of the concrete sales, for reprioritizing growth in efforts to our by markets. product continue net topline Nordic our America, Our million growth of lines drive focus margin Further, Europe, the and target driven assumption help that digit higher Western top on expectations opportunity annual well in and this, the profitability. previously include improve as on by an and rate, mechanical housing North Depot. product improved basis, in as line connectors of concrete space, $XX at product conditions compounded in the economic our the announced on our rate we steady the Home in focusing U.S. line anticipate our the organic complete Further, offerings are order share. European anchor to should mid-single achieve in
lines, waste of market addressable to core will to grow repair areas framed leverage our of marine strategic down focused bridge approximately direct margin and resources. repair. align competencies, six to plants, well higher all share repair are comprise our This shift our from steel result, cease best We product key approximate marine As a treatment exception addressable XX% water products. include concrete and bridge by our plan $X.X we OEM, with lines cold-formed market our opportunity and to market retrofit, commercial development construction, and These to XXXX. light XX% billion. decision made addressable a billion the with $X.X $X.X billion our current this approximately to of The
Our midpoint. of net our involves XX.X% basis range XXXX improvement structure, XXX percent of to total at sales, expenses XX% our a of XXXX, a rationalizing by approximately to the of from second the to reported end objective at XX% of end reflecting cost an improve as operating points the
result, to of in XXXX. a the and already industry XX% take a to from additional business, As look consolidated If expect consultant to this further XX% savings. leading manage line near absolute XX.X% potential we a obtain improve cost to our we opportunities expenses hire a operating fresh for our leading dollars. Moreover, to we to additional aggressively are will by operating expecting range we committed XXXX improving total XXXX term in the for the terms income margin management than growth, targets. In aside at identify we be levels, XXXX operating improved to of to are less in savings, leverage, opportunities from top order find our
approximately Excluding implementation will reduced million XXXX our be XXXX. by operating expenses planned projected from costs, SAP $X
sales to growth at XXXX and administrative reducing operating actions We a both maintaining net neutral, operating it by where will total $X In our expenses We expenses. applicable. believe to Europe, our of for expense total bring these in in million combination percent zero-based reduce dollars and where to as headcount our XXXX. budgeting through adding makes plan through net mid-XX% the a support down of we sense will a level headcount implement other reductions employees this and
XX, of $XX sale Gbo or October Gbo expected no by a gain loss. of which to reported an and this closed minimal for Romania As The complete total Poland, of divested range million. X% from margin in Romania to to such, Poland sale the Separately, XX% The plan of XXXX a X% reaching we and $X.X on gain we a in of resulted significant XX, operating to on week. a divestiture are Gbo in XXXX in targeting also close September million, Gbo for amount of our income X.X% XXXX. with is improvement
of million of $XX.X September the nine ended Poland sales. and XX, net Gbo contributed total months $XX.X Gbo the million For XXXX, Romania acquired
where region longer concrete in from XX.X% to in $X line reported well we and our as focus Nordic million the fit at fastener to retain in locations our Norway reductions help business, by total in this XXXX. best To Gbo dollars that Sweden, Europe, operations as market XXXX, our end, and in other we over [ph] have we XX% our In no expenses range anticipated and XXXX our products operating in business, reduction capitalized. truss Poland we approximately and our these mainly as gross these will Western to profit to our do operations professional year, not towards to in to on with and through produced margin While chosen XXXX in expanding the headcount be XX% project, by share. services. fasteners to a of continued expect repair initiative of of XX% $XX XXXX but grow associated allocating divest SAP our reductions implementation of strategy. action market now our ongoing per spending to improve Europe, some in We $XX are will software improve positioned believe approximately investment concrete be which million us Offsetting million of through we addition the $X Romania, to million our of to will and
at software solution in needs. truss wood importance. be meaningful all a continue, investments offering we our may of bundled as specifically, its share their in a of Our our we will value portion lose software wood Without a market core customers will for products and connector given strategic who risk, believe business
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sized while support component and medium believe over truss and $XXX,XXX these XX% will identified accounts have XX that is have loss, plates. who represent our grow our fasteners of the component the were of critical we sales, already capabilities continuing our business. complement manufacturers begin we focusing ability are to truss customers, connectors, medium our risk small We solutions manufacture component software primarily at manufacturers connector to and converted. believe Due today, solutions,, have core annual not wood and on sophistication to software We solution $XXX,XXX smaller in provide efforts, the their offering we and preserve we to of software if these purchases converting a to XXXX, high of to in to market, roughly increased customers
into truss facility, of truss Our annual By partially connector to moved $X activity XXXX, to and the our of expect end truss decision wood consolidate will primary reduce million offset we expense only we with our will sales footprint, our the manufacturing for manufacturing have efficiency cost R&D annually. truss not quarter our first completed, but capacity. all manufacturing manufacturing also approximately to existing be by expect plates million freight reduce customers. $X cost for to move improve our by action When and plates This will lower plants. it our help to manufacturing time
SAP progressing budget. on-track has implementation been project Our and on
XXXX as million phases. improve XXXX which will phase $X XXXX, analytics, series through in considerably including began will When from as Configuration we to as this inventory the and be pre-implementation will of of project and will project the will a been associated entered in which In SAP $X this business management, will XXXX discussed, the activity in multiyear as estimate the which continue year be for $X roughly costs, expensed to-date capitalized sites of year, as previously overall involved in amortization SAP be initial have of As will This including extensive we million, enhanced is purchasing, second XXXX, estimate well productivity. has four capitalized. as live, up configuration training, XXXX, much costs, which and we continue million incurred. well going expenses, respectively. capitalized and expensed approximately XXXX, costs, $XX million amortization require
goals support organic superior needed Simpson gross manage margin targets we of the operating and structure, to While and based our industry cost light that growth. that maintain operating leading evaluations are believe drive reductions to maintains accelerate margins, our tightly aggressive, in profile, yet of We on these gross believe we achievable, further more in bottoms-up our can represent margins costs expenses. a
an our granular and the our expertise drive us the XXXX to plan, from to This independent management information in than months. forward benefit will additional enhance identify against from coming done a have to benchmark to current analysis our their perform consultant past. broad providing us engagement level to in-depth their we improvements operations peers intend shareholders on and beyond We allow our in to effort in in an opportunities, expertise, more to benefitting look our However, operations, an operating to of to hire effort further help our an efficiency. additional external we
earn we overall management third inventory, established our team our and our improve Through balance focus discipline capital median product edge hours part, of initiatives receiving will well as regards and sheet significant products availability working including as in customers other to or help near we payables we inventory, have in on capital, to on reducing our competitive impacting working objective, an inventory us to rely gross term better to in our levels, to as receivables. to Turning a and improve internal less, above standards, without allow our margins. believe manage XX amount
we step will SKUs inventory, eliminating. reduce to identified our approximately a As our we be XX% XX% of have first to
We out SKUs of phased meet will be with to one-third over these remaining eliminate transition immediately, two-thirds time to need. the a customer
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As from a by to two we inventory turn of expect times result, times rate four XXXX. to current our improve the
this of our While rate significant turn operations. that will review regarding from inventory external to we we have is update the consultant, appropriate engaged our believe at rate, shareholders improvement current findings the the time, we
increases, as to to in locations, in previous production move volume to plans of endeavor other been Riverside, are this is incremental We out able were year tracking initiative. some without today's California, our At schedule, from for high XX% our to complete levels, at to connector has completed. utilization shifts the Lastly, our utilization, an XX% we support three manufacturing U.S. which up we effectively as began we discussed our full when operating need two our we sales goal are can, volume of connector our at of equipment. plant ensure order additional XX% one of this for on in future effort ahead facilities, manufacturing cost connector
on we by XXXX XX% approximately in achieve to a expect to plan, be the XX% through discussed return XXXX. target execution As position of to the on invested a capital
XX, slide on we demonstrated in manage to As will components an highlighted critical the this achieve ROIC. improvement our
wrap want Before capital comment up, on strategy. to allocation I our I
which We drive our to flexibility strategy, while long investing value, have simultaneously capital returning shareholder to us our stockholders. continue position, financial term to a affords strong in
the operations have we committed XX% of As share flow previously, repurchases. from cash and in communicated remain returning we of to stockholders dividends to our form
During in of dividend $X.X million as received and XX shares quarter, million quarterly repurchase approximately we share out the XX,XXX accelerated cash paid part our program.
As $XXX.X of we XX, September our under for XXXX. million XX, remaining had December repurchases $XXX XXXX, million authorization extended by
sheet balance XXXX inventory improvements leaseback in potential As efforts the fund we of we real we any from beyond estate future. additional repurchasing properties we sale term, will aggressive operating stock on will use to near are future. the our in drive reduction Longer our be in confident, efficiency performance improved reviewing in enabled our more our opportunities for operational business, the intend by plan execution share plan our be owned those proceeds to other towards To and or the share strong repurchases. flow, repurchases cash shares
strategic financial behind well our targets. potential In any as in further we summary, pleased as this, provide are reduction, as share the forward, be with a consider to holiday, additional repatriation or share plan event of receive for benefit operational transparency corporate around repurchase. funds will the to going our able tax drivers we Beyond may rate we
to a the it As and growth initiatives the way, on will and provide plans. our we of XXXX execution benchmarks plan, updates you is informed keep along
in we by we not these if targets to aggressive discussed, take action are on future. track meet As the will XXXX, more
to the who support the in and like and shareholders. our providing their ability Here best-in-class are I'd third while coming remain detail. to forward to continued customers, our thank like Brian, in now our we for over look you quarter discuss at an of to updating industry, innovator to our generating We'd will shareholders to Simpson, Simpson, our call more on financial our results value progress turn over in the service for quarters. confident
