Simpson Manufacturing (SSD) Approves $125M Buyback Plan

August 24, 2016 5:01 PM EDT

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Simpson Manufacturing Co., Inc. (NYSE: SSD) today announced an update to its capital allocation strategy, which has resulted from our ongoing review of our capital allocation strategy and feedback we have received from a significant number of our shareholders. Per the previous capital allocation strategy announcement on September 23, 2015, we seek profitable growth opportunities in the building products range to create long-term value while consistently returning capital to our shareholders. Based on shareholder feedback, the initial results of an extensive review of our capital allocation strategy and the high degree of confidence we have in our business, the Company has established a current target capital return to shareholders of 50% of cash flows from operations through both dividends and repurchases of the Company's shares of common stock. In support of this target, the Company's Board of Directors replaced its previous share repurchase authorization, which was initially $50 million and was scheduled to expire on December 31, 2016, with a $125 million share repurchase authorization that expires on December 31, 2017. The Board of Directors further authorized the Company to execute one or more accelerated share repurchase programs ("ASR Programs") at any time or times before December 31, 2017 (provided that, final settlement of the ASR Programs may occur thereafter). The Company currently expects to execute a $50 million ASR Program by the end of 2016 and has begun work on that initiative.

From January 1, 2015 to July 2016, the Company, using internally-generated cash flow, invested in excess of $52 million in capital expenditures and $4 million in acquisitions. During the same time period, we returned approximately $104 million of capital to shareholders through the payment of quarterly dividends and the repurchasing of the Company's shares of common stock, including approximately $3.5 million in share repurchases in 2016.

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