10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________

FORM 10-Q

___________________________________________

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 000-20278

___________________________________________

ENCORE WIRE CORPORATION

(Exact name of registrant as specified in its charter)

___________________________________________

Delaware		75-2274963
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
1329 Millwood Road
McKinney	Texas	75069
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (972) 562-9473

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.01 per share	WIRE	The NASDAQ Global Select Market

_____________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).                                 Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).       Yes  ☐    No  ☒

Number of shares of Common Stock, par value $0.01, outstanding as of July 31, 2019: 20,905,648

ENCORE WIRE CORPORATION

FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 2019

Table of Contents

	Page No.
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - June 30, 2019 (Unaudited) and December 31, 2018	1
Statements of Income - Quarter and Six Months Ended June 30, 2019 and 2018 (Unaudited)	2
Statements of Stockholders' Equity - Quarter and Six Months Ended June 30, 2019 and 2018 (Unaudited)	3
Statements of Cash Flow - Six Months Ended June 30, 2019 and 2018 (Unaudited)	4
Notes to Financial Statements	5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	8
Item 3. Quantitative and Qualitative Disclosures About Market Risk	12
Item 4. Controls and Procedures	12
PART II—OTHER INFORMATION
Item 1. Legal Proceedings	13
Item 1A. Risk Factors	13
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	13
Item 6. Exhibits	13
Signatures	14

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Encore Wire Corporation

Balance Sheets

(In thousands, except share and per share data)

	June 30, 2019			December 31, 2018
	(Unaudited)			(See Note)
Assets
Current assets:
Cash and cash equivalents	$	184,800		$	178,405
Accounts receivable, net of allowance of $2,031 and $2,030	255,968			235,353
Inventories, net	96,039			102,367
Income tax receivable	3,262			1,389
Prepaid expenses and other	1,885			1,723
Total current assets	541,954			519,237
Property, plant and equipment - at cost:
Land and land improvements	51,317			51,169
Construction-in-progress	31,126			24,623
Buildings and improvements	152,322			151,758
Machinery and equipment	326,542			314,175
Furniture and fixtures	10,123			9,687
Total property, plant and equipment	571,430			551,412
Accumulated depreciation	(260,009		)	(252,754		)
Property, plant and equipment - net	311,421			298,658
Other assets	806			165
Total assets	$	854,181		$	818,060
Liabilities and Stockholders’ Equity
Current liabilities:
Trade accounts payable	$	46,053		$	36,706
Accrued liabilities	30,145			36,866
Income taxes payable	—			—
Total current liabilities	76,198			73,572
Deferred income taxes and other	25,340			24,032
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.01 par value:
Authorized shares – 2,000,000; none issued	—			—
Common stock, $.01 par value:
Authorized shares – 40,000,000;
Issued shares – 26,933,103 and 26,906,603	269			269
Additional paid-in capital	62,652			60,822
Treasury stock, at cost – 6,027,455 and 6,027,455 shares	(91,056		)	(91,056		)
Retained earnings	780,778			750,421
Total stockholders’ equity	752,643			720,456
Total liabilities and stockholders’ equity	$	854,181		$	818,060

Note:    The balance sheet at December 31, 2018, as presented, is derived from the audited financial statements at that date.

See accompanying notes.

1

Encore Wire Corporation

Statements of Income

(In thousands, except per share data)

	Quarter Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
	(Unaudited)				(Unaudited)
Net sales	$	336,866	$	336,793	$	651,573	$	628,224
Cost of goods sold	290,956		292,296		564,337		546,232
Gross profit	45,910		44,497		87,236		81,992
Selling, general, and administrative expenses	23,846		21,498		48,844		44,385
Operating income	22,064		22,999		38,392		37,607
Net interest and other income	1,082		393		2,160		736
Income before income taxes	23,146		23,392		40,552		38,343
Provision for income taxes	5,364		5,303		9,359		8,901
Net income	$	17,782	$	18,089	$	31,193	$	29,442
Earnings per common and common equivalent share – basic	$	0.85	$	0.87	$	1.49	$	1.41
Earnings per common and common equivalent share – diluted	$	0.85	$	0.86	$	1.49	$	1.41
Weighted average common and common equivalent shares outstanding – basic	20,898		20,847		20,891		20,838
Weighted average common and common equivalent shares outstanding – diluted	20,988		20,918		20,985		20,911
Cash dividends declared per share	$	0.02	$	0.02	$	0.04	$	0.04

See accompanying notes.

2

Encore Wire Corporation

Stockholders' Equity

(In thousands, except per share data)

2019	Common Stock			Additional Paid-In Capital		Treasury Stock				Retained Earnings			Total Stockholders' Equity
	Shares	Amount				Shares	Amount
Balance at December 31, 2018	26,907	$	269	$	60,822	6,027	$	(91,056	)	$	750,421		$	720,456
Net income	—	—		—		—	—			13,411			13,411
Exercise of stock options	15	—		431		—	—			—			431
Stock-based compensation	—	—		760		—	—			—			760
Dividend declared—$0.02 per share	—	—		—		—	—			(418		)	(418		)
Balance at March 31, 2019	26,922	$	269	$	62,013	6,027	$	(91,056	)	$	763,414		$	734,640
Net income	—	—		—		—	—			17,782			17,782
Exercise of stock options	6	—		137		—	—			—			137
Stock-based compensation	5	—		502		—	—			—			502
Dividend declared—$0.02 per share	—	—		—		—	—			(418		)	(418		)
Balance at June 30, 2019	26,933	$	269	$	62,652	6,027	$	(91,056	)	$	780,778		$	752,643

2018	Common Stock			Additional Paid-In Capital		Treasury Stock				Retained Earnings			Total Stockholders' Equity
	Shares	Amount				Shares	Amount
Balance at December 31, 2017	26,859	$	269	$	58,192	6,027	$	(91,056	)	$	673,940		$	641,345
Net income	—	—		—		—	—			11,353			11,353
Exercise of stock options	13	—		306		—	—			—			306
Stock-based compensation	—	—		649		—	—			—			649
Dividend declared—$0.02 per share	—	—		—		—	—			(417		)	(417		)
Balance at March 31, 2018	26,872	$	269	$	59,147	6,027	$	(91,056	)	$	684,876		$	653,236
Net income	—	—		—		—	—			18,089			18,089
Stock-based compensation	5	—		421		—	—			—			421
Dividend declared—$0.02 per share	—	—		—		—	—			(417		)	(417		)
Balance at June 30, 2018	26,877	$	269	$	59,568	6,027	$	(91,056	)	$	702,548		$	671,329

See accompanying notes.

3

Encore Wire Corporation

Statements of Cash Flow

(In thousands)

	Six Months Ended June 30,
	2019			2018
	(Unaudited)
Operating Activities:
Net income	$	31,193		$	29,442
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	8,785			8,213
Deferred income taxes	816			761
Stock-based compensation attributable to equity awards	1,262			1,070
Other	(111		)	(5		)
Changes in operating assets and liabilities:
Accounts receivable	(20,615		)	(29,529		)
Inventories	6,328			(4,501		)
Other assets	(200		)	216
Trade accounts payable and accrued liabilities	2,266			(9,643		)
Current income taxes receivable / payable	(1,873		)	(2,022		)
Net cash provided by (used in) operating activities	27,851			(5,998		)
Investing Activities:
Purchases of property, plant and equipment	(21,210		)	(14,816		)
Proceeds from sale of assets	22			—
Net cash used in investing activities	(21,188		)	(14,816		)
Financing Activities:
Borrowings from revolver	—			65,200
Repayments to revolver	—			(65,200		)
Proceeds from issuance of common stock, net	568			306
Dividends paid	(836		)	(834		)
Net cash used in financing activities	(268		)	(528		)
Net increase (decrease) in cash and cash equivalents	6,395			(21,342		)
Cash and cash equivalents at beginning of period	178,405			123,362
Cash and cash equivalents at end of period	$	184,800		$	102,020

See accompanying notes.

4

ENCORE WIRE CORPORATION

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

June 30, 2019

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The unaudited financial statements of Encore Wire Corporation (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete annual financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Results of operations for interim periods presented do not necessarily indicate the results that may be expected for the entire year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Revenue Recognition

The majority of our revenue is derived by fulfilling customer orders for the purchase of our products, which include electrical building wire and cable. We recognize revenue at the point in time that control of the ordered products is transferred to the customer, which is typically upon shipment to the customer from our manufacturing facilities and based on agreed upon shipping terms on the related purchase order. Amounts billed and due from our customers are classified as accounts receivables on the balance sheet and require payment on a short-term basis through standard payment terms.

Revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders. The amount of consideration we expect to receive and revenue we recognize includes estimates for trade payment discounts and customer rebates which are estimated using historical experience and other relevant factors and is recorded within the same period that the revenue is recognized. We review and update these estimates regularly and the impact of any adjustments are recognized in the period the adjustments are identified. The adjustments resulting from updated estimates of trade payment discounts and customer rebates were not material.

Recent Accounting Pronouncements

The Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) is the sole source of authoritative U.S. GAAP other than Securities and Exchange Commission ("SEC") issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standard Update (“ASU”) to communicate changes to the codification. The Company considers the applicability and impact of all ASUs. The following are those ASUs that are relevant to the Company.

The Company has a minimal number of leases, all of which are classified as operating. As a result of the adoption of ASU No. 2016-02, “Leases (Topic 842),” on January 1, 2019, the Company recorded $0.7 million of right of use assets which are included in other non-current assets, $0.2 million of current lease liabilities which are included in accounts payable and $0.5 million of long-term lease liabilities included in other non-current liabilities.  We will evaluate any future lease commitments in conformance with ASU No. 2016-02.

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NOTE 2 – INVENTORIES

Inventories are stated at the lower of cost, determined by the last-in, first-out (LIFO) method, or market.

Inventories consist of the following:

In Thousands	June 30, 2019			December 31, 2018
Raw materials	$	27,607		$	28,455
Work-in-process	25,611			30,529
Finished goods	88,657			88,708
Total Inventory at FIFO cost	141,875			147,692
Adjust to LIFO cost	(45,836		)	(45,325		)
Lower of cost or market adjustment	—			—
Inventory, net	$	96,039		$	102,367

LIFO pools are established at the end of each fiscal year. During the first three quarters of every year, LIFO calculations are based on the inventory levels and costs at that time. Accordingly, interim LIFO balances will fluctuate depending on those inventory levels and costs.

In the second quarter of 2019, LIFO adjustments were recorded, decreasing cost of sales by $3.3 million, versus LIFO adjustments increasing cost of sales by $1.7 million in the second quarter of 2018. In the first six months of 2019, LIFO adjustments were

recorded, increasing cost of sales by $0.5 million, versus LIFO adjustments increasing cost of sales by $3.7 million in the first six months of 2018.

NOTE 3 – ACCRUED LIABILITIES

Accrued liabilities consist of the following:

In Thousands	June 30, 2019		December 31, 2018
Sales rebates payable	$	14,849	$	18,565
Property taxes payable	1,995		3,962
Accrued salaries	6,214		8,790
Other accrued liabilities	7,087		5,549
Total accrued liabilities	$	30,145	$	36,866

NOTE 4 – INCOME TAXES

Income taxes were accrued at an effective rate of 23.2% in the second quarter of 2019 versus 22.7% in the second quarter of 2018, consistent with the Company’s estimated liabilities. For the six months ended June 30, the Company’s tax rate was approximately 23.1% in 2019 and 23.2% in 2018. In all periods, the differences between the provisions for income taxes and the income taxes computed using the federal income tax statutory rate are due primarily to the incremental taxes accrued for state and local taxes.

NOTE 5 – EARNINGS PER SHARE

Earnings per common and common equivalent share are computed using the weighted average number of shares of common stock and common stock equivalents outstanding during each period. If dilutive, the effect of stock options, treated as common stock equivalents, is calculated using the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per share:

6

	Quarter Ended June 30,				Six Months Ended June 30,
In Thousands	2019		2018		2019		2018
Numerator:
Net income	$	17,782	$	18,089	$	31,193	$	29,442
Denominator:
Denominator for basic earnings per share – weighted average shares	20,898		20,847		20,891		20,838
Effect of dilutive securities:
Employee stock awards	90		71		94		73
Denominator for diluted earnings per share – weighted average shares	20,988		20,918		20,985		20,911

The weighted average of employee stock options excluded from the determination of diluted earnings per common and common equivalent share for the second quarter was 117,500 in 2019 and 166,500 in 2018. The weighted average of employee stock options excluded from the determination of diluted earnings per common and common equivalent share for the six months ended June 30 was 117,500 in 2019 and 156,056 in 2018. Such options were anti-dilutive for their respective periods.

NOTE 6 – DEBT

The Company is party to a Credit Agreement (the “Credit Agreement”) with two banks, Bank of America, N.A., as administrative agent and letter of credit issuer, and Wells Fargo Bank, National Association, as syndication agent. The Credit Agreement, as amended, extends through October 1, 2021 and provides for maximum borrowings of $150.0 million. At our request, and subject to certain conditions, the commitments under the Credit Agreement may be increased by a maximum of up to $100.0 million as long as existing or new lenders agree to provide such additional commitments. Borrowings under the line of credit bear interest, at the Company’s option, at either (1) LIBOR plus a margin that varies from 0.875% to 1.75% depending upon the Leverage Ratio (as defined in the Credit Agreement), or (2) the base rate (which is the highest of the federal funds rate plus 0.5%, the prime rate, or LIBOR plus 1.0%) plus 0% to 0.25% (depending upon the Leverage Ratio). A commitment fee ranging from 0.15% to 0.30% (depending upon the Leverage Ratio) is payable on the unused line of credit. At June 30, 2019, there were no borrowings outstanding under the Credit Agreement, and letters of credit outstanding in the amount of $1.5 million left $148.5 million of credit available under the Credit Agreement. Obligations under the Credit Agreement are the only contractual borrowing obligations or commercial borrowing commitments of the Company.

Obligations under the Credit Agreement are unsecured and contain customary covenants and events of default. The Company was in compliance with the covenants as of June 30, 2019.

NOTE 7 – STOCKHOLDERS’ EQUITY

On November 10, 2006, the Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to an authorized number of shares of its common stock on the open market or through privately negotiated transactions at prices determined by the President of the Company during the term of the program. The Company’s Board of Directors has authorized several increases and annual extensions of this stock repurchase program, and, as of June 30, 2019, 1,132,946 shares remained authorized for repurchase through March 31, 2020. The Company did not repurchase any shares of its stock in the six months ended June 30, 2019 or 2018.

7

NOTE 8 - CONTINGENCIES

There are no material pending proceedings to which the Company is a party or to which any of its property is subject. However, the Company is from time to time involved in litigation, certain other claims and arbitration matters arising in the ordinary course of its business. The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of the probability of a loss and the determination as to whether a loss is reasonably estimable. Any such accruals are reviewed at least quarterly and adjusted to reflect the effects of negotiations, settlements, rulings, advice of legal counsel and technical experts and other information and events pertaining to a particular matter. To the extent there is a reasonable possibility (within the meaning of ASC 450 (Contingencies)) that probable losses could exceed amounts already accrued, if any, and the additional loss or range of loss is able to be estimated, management discloses the additional loss or range of loss.

For matters where the Company has evaluated that a loss is not probable, but is reasonably possible, the Company will disclose an estimate of the possible loss or range of loss or make a statement that such an estimate cannot be made. In some instances, for reasonably possible losses, the Company cannot estimate the possible loss or range of loss. The nature and progression of litigation can make it difficult to predict the impact a particular lawsuit will have on the Company. There are many reasons that the Company cannot make these assessments, including, among others, one or more of the following: the early stages of a proceeding; damages sought that are unspecified, unsupportable, unexplained or uncertain; discovery is incomplete; the complexity of the facts that are in dispute; the difficulty of assessing novel claims; the parties not having engaged in any meaningful settlement discussions; the possibility that other parties may share in any ultimate liability; and/or the often slow pace of litigation.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Encore believes it is a low-cost manufacturer of electrical building wire and cable. The Company is a significant supplier of building wire for interior electrical wiring in commercial and industrial buildings, homes, apartments, and manufactured housing.

The Company’s operating results in any given period are driven by several key factors, including the volume of product produced and shipped, the cost of copper and other raw materials, the competitive pricing environment in the wire industry and the resulting influence on gross margin and the efficiency with which the Company’s plants operate during the period, among others. Price competition for electrical wire and cable is intense, and the Company sells its products in accordance with prevailing market prices. Copper, a commodity product, is the principal raw material used by the Company in manufacturing its products. Copper accounted for approximately 73.0%, 69.7%, and 65.2% of the Company’s cost of goods sold during fiscal 2018, 2017 and 2016, respectively. The price of copper fluctuates depending on general economic conditions and in relation to supply and demand and other factors, which causes monthly variations in the cost of the Company’s purchased copper. Additionally, the SEC allows shares of certain physically backed copper exchange-traded funds (“ETFs”) to be listed and publicly traded. Such funds and other copper ETFs like them hold copper cathode as collateral against their shares. The acquisition of copper cathode by copper ETFs may materially decrease or interrupt the availability of copper for immediate delivery in the United States, which could materially increase the Company’s cost of copper. In addition to rising copper prices and potential supply shortages, we believe that ETFs and similar copper-backed derivative products could lead to increased price volatility for copper. The Company cannot predict copper prices or the effect of fluctuations in the cost of copper on the Company’s future operating results. Wire prices can, and frequently do, change on a daily basis. This competitive pricing market for wire does not always mirror changes in copper prices, making margins highly volatile. With the volatility of both raw material prices and wire prices in the Company’s end market, hedging raw materials can be risky. Historically, the Company has not engaged in hedging strategies for raw material purchases. The tables below highlight the range of closing prices of copper on a per pound basis on the Comex exchange for the periods shown.

8

COMEX COPPER CLOSING PRICE 2019

	April 2019		May 2019		June 2019		Quarter Ended June 30, 2019		Six Months Ended June 30, 2019
High	$	2.98	$	2.84	$	2.74	$	2.98	$	2.98
Low	2.88		2.65		2.63		2.63		2.57
Average	2.92		2.74		2.68		2.78		2.80

COMEX COPPER CLOSING PRICE 2018

	April 2018		May 2018		June 2018		Quarter Ended June 30, 2018		Six Months Ended June 30, 2018
High	$	3.15	$	3.12	$	3.29	$	3.29	$	3.29
Low	3.01		3.02		2.95		2.95		2.95
Average	3.09		3.06		3.12		3.09		3.11

The following discussion and analysis relate to factors that have affected the operating results of the Company for the quarters and six months ended June 30, 2019 and 2018. Reference should also be made to the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Results of Operations

Quarter Ended June 30, 2019 Compared to Quarter Ended June 30, 2018

Net sales were $336.9 million in the second quarter of 2019 compared to $336.8 million in the second quarter of 2018. The virtually identical net sales dollars are primarily the result of a 5.6% increase in copper wire unit volume shipped, offset by a 6.1% decrease in the average selling price of copper wire. Unit volume is measured in pounds of copper contained in the wire shipped during the period. The 5.6% increase in unit volume shipped was primarily due to strong construction industry demand despite rough spring weather in certain areas that slowed construction and impacted volumes in the second quarter of 2019. Fluctuations in sales prices are primarily a result of changing copper and other raw material prices and product price competition. The average cost per pound of raw copper purchased decreased 8.7% in the second quarter of 2019 compared to the second quarter of 2018 and was the principal driver of the decreased average sales price of copper wire.

Cost of goods sold was $291.0 million, or 86.4% of net sales, in the second quarter of 2019, compared to $292.3 million, or 86.8% of net sales, in the second quarter of 2018. Gross profit increased to $45.9 million, or 13.6% of net sales, in the second quarter of 2019 from $44.5 million, or 13.2% of net sales, in the second quarter of 2018.

The small increase in gross profit margin percentage was primarily the result of two factors that served to mostly offset each other. Unit volumes increased 5.6%, while the spread between the average price paid for a pound of raw copper and the average sales price for a pound of copper contained in finished wire decreased 0.4% in the second quarter of 2019 versus the second quarter of 2018. The spread decreased as a result of the average sales price per pound of copper sold decreasing 6.1% while the per pound cost of raw copper purchased decreased 8.7%. The percentage change on sales is on a higher nominal dollar amount than on purchases and, therefore, spreads change on a nominal dollar basis. The margin changes were due primarily to the competitive pricing environment in the industry. In aluminum wire, which represented 8.0% of our net sales in the second quarter of 2019, we continue to enforce our rights under the U.S. trade remedy laws. On May 30, 2019, the U.S. Commerce Department imposed a preliminary antidumping ruling on imports of aluminum wire from China at rates ranging from 58.36 to 63.32 percent.  The final results of the U.S. Government’s ongoing antidumping and countervailing duty investigations are not expected until the end of the year.

Total raw materials cost, including the LIFO adjustment, decreased to 74.6% of net sales in the second quarter of 2019, from 76.4% of net sales in the second quarter of 2018. Increased overhead costs offset some of the material cost reduction in total cost of sales dollars. Overheads contain some fixed and semi-fixed components which do not fluctuate as much as sales dollars fluctuate.

Inventories are stated at the lower of cost, using the last-in, first out (LIFO) method, or market. The Company maintains two inventory pools for LIFO purposes. As permitted by U.S. generally accepted accounting principles, the Company maintains its inventory costs and cost of goods sold on a first-in, first-out (FIFO) basis and makes a monthly adjustment to adjust total inventory and cost of goods sold from FIFO to LIFO. The Company applies the lower of cost or market (LCM) test by comparing the LIFO cost of its raw materials, work-in-process and finished goods inventories to estimated market values, which are based primarily upon the most recent quoted market price of copper and other material prices as of the end of each reporting period. The Company performs a lower of cost or market calculation quarterly. As of June 30, 2019, no LCM adjustment was required. However, decreases

9

in copper and other material prices could necessitate establishing an LCM reserve in future periods. Additionally, future reductions in the quantity of inventory on hand could cause copper or other raw materials that are carried in inventory at costs different from the cost of copper and other raw materials in the period in which the reduction occurs to be included in costs of goods sold for that period at the different price.

Due primarily to increases in copper costs and price and volume movements of other materials, a LIFO adjustment was recorded, decreasing cost of sales by $3.3 million during the second quarter of 2019. During the second quarter of 2018, a LIFO adjustment was recorded, increasing cost of sales by $1.7 million.

Selling expenses, consisting of commissions and freight, for the second quarter of 2019 were $17.3 million, or 5.1% of net sales, compared to $17.3 million, or 5.1% of net sales, in the second quarter of 2018. Commissions paid to independent manufacturers’ representatives are paid as a relatively stable percentage of sales dollars and, therefore, exhibited little change in percentage terms. Freight costs decreased to 2.6% of net sales in the second quarter of 2019 from 2.7% of net sales in the second quarter of 2018. General and administrative (“G&A”) expenses for the second quarter of 2019 were $6.5 million, or 1.9% of net sales, compared to $4.2 million, or 1.2% of net sales, in the second quarter of 2018. The G&A increase was driven primarily by increased stock compensation expense, driven primarily by our strong stock price performance driving the mark to market accounting on stock appreciation rights. The net stock compensation expense increased $2.0 million in the second quarter of 2019 versus the second quarter of 2018. The Company did not record any bad debt expense during the second quarters of 2019 or 2018.

Six Months Ended June 30, 2019 Compared to Six Months Ended June 30, 2018

Net sales for the first six months of 2019 were $651.6 million compared to net sales of $628.2 million for the first six months of 2018. This 3.7% increase in net sales is primarily the result of a 2.8% increase in copper wire sales, driven by a 9.3% increase in copper wire unit volume shipped, partially offset by a 5.9% decrease in the average selling price of copper wire. Unit volume is measured in pounds of copper contained in the wire shipped during the period. Fluctuations in sales prices are primarily a result of changing copper and other raw material prices and product price competition. The average cost per pound of raw copper purchased decreased 9.1% in the first six months of 2019 compared to the first six months of 2018 and was the principal driver of the decreased average sales price of copper wire.

Cost of goods sold increased to $564.3 million in the first six months of 2019, compared to $546.2 million in the first six months of 2018. Gross profit increased to $87.2 million, or 13.4% of net sales, in the first six months of 2019 versus $82.0 million, or 13.1% of net sales, in the first six months of 2018.

The gross profit margin percentage increased primarily as a result of the 9.3% unit volume increase and an increase in the spread between the average price paid for a pound of raw copper and the average sale price for a pound of copper in the first six months of 2019 versus the first six months of 2018 due primarily to competitive industry pricing. Fluctuations in sales prices are primarily a result of changing copper raw material prices and product price competition. The copper spread increased 0.9% in the first six months of 2019 versus the first six months of 2018. The spread increased as a result of the 5.9% decrease in the average sales price per copper pound sold while the per pound cost of raw copper decreased 9.1%. In nominal dollars, the sales price decreased less than the cost of copper.

Due primarily to decreases in copper costs and an increase in copper inventory quantities on hand, aided somewhat by price and

volume movements of other materials in the first six months of 2019, LIFO adjustments were recorded, increasing cost of sales by $0.5 million. During the same period in 2018, LIFO adjustments were recorded, increasing cost of sales by $3.7 million. Based on current copper prices, there is no LCM adjustment necessary. Future reductions in the price of copper could require the Company to record an LCM adjustment against the related inventory balance, which would result in a negative impact on net income.

Selling expenses for the first six months of 2019 increased to $33.7 million, or 5.2% of net sales, compared to $32.9 million, or

5.2% of net sales, in the same period of 2018. Commissions paid to independent manufacturers’ representatives are paid as a relatively stable percentage of sales dollars, and therefore, exhibited little change in percentage terms, increasing $0.8 million in concert with the increased sales dollars. Freight costs for the first six months of 2019 decreased to 2.7% of net sales, versus 2.8% of net sales for the first six months of 2018. General and administrative expenses were $15.1 million, or 2.3% of net sales, in the first half of 2019 compared to $11.5 million, or 1.8% of net sales, in the first half of 2018. The G&A increase was driven primarily by increased stock compensation expense, driven primarily by our strong stock price performance driving the mark to market accounting on stock appreciation rights. The net stock compensation expense increased $2.8 million in the first six months of 2019 versus the first six months of 2018. The Company did not record any bad debt expense during the first six months of 2019 and 2018.

10

Liquidity and Capital Resources

The Company maintains a substantial inventory of finished products to satisfy customers’ delivery requirements promptly. As is customary in the building wire industry, the Company provides payment terms to most of its customers that exceed terms that it receives from its suppliers. Copper suppliers generally give very short payment terms (less than 15 days) while the Company and the building wire industry give customers much longer terms. In general, the Company’s standard payment terms result in the collection of a significant majority of net sales within approximately 75 days of the date of invoice. As a result of this timing difference, building wire companies must have sufficient cash and access to capital resources to finance their working capital needs, thereby creating a barrier to entry for companies who do not have sufficient liquidity and capital resources. The two largest components of working capital, receivables and inventory, and to a lesser extent, capital expenditures, are the primary drivers of the Company’s liquidity needs. Generally, these needs will cause the Company’s cash balance to rise and fall inversely to the receivables and inventory balances. The Company’s receivables and inventories will rise and fall in concert with several factors, most notably the price of copper and other raw materials and the level of unit sales. Capital expenditures have historically been necessary to expand and update the production capacity of the Company’s manufacturing operations. The Company has historically satisfied its liquidity and capital expenditure needs with cash generated from operations and borrowings under its various debt arrangements. The Company historically uses its revolving credit facility to manage day to day operating cash needs as required by daily fluctuations in working capital and has the facility in place should such a need arise in the future.

For more information on the Company’s revolving credit facility, see Note 6 to the Company’s financial statements included in Item 1 to this report, which is incorporated herein by reference.

Cash provided by operating activities was $27.9 million in the first six months of 2019 compared to $6.0 million of cash used in the first six months of 2018. The following changes in components of cash flow from operations were notable. The Company had net income of $31.2 million in the first six months of 2019 compared to net income of $29.4 million in the first six months of 2018. Accounts receivable increased $20.6 million in the first six months of 2019 and $29.5 million in the first six months of 2018, resulting in a positive change in cash flow of $8.9 million in the first six months of 2019 versus the first six months of 2018. Accounts receivable generally fluctuate in proportion to dollar sales and, to a lesser extent, are affected by the timing of when sales occur during a given quarter. With an average of 60 to 75 days of sales outstanding, quarters in which sales are more back-end loaded will have higher accounts receivable balances outstanding at quarter-end. Inventory value decreased $6.3 million in the first six months of 2019 compared to increasing $4.5 million in the first six months 2018 producing a positive swing in cash flow of $10.8 million in 2019 versus 2018. Trade accounts payable and accrued liabilities provided cash of $2.3 million in the first six months of 2019 versus using $9.6 million in the first six months of 2018, resulting in a positive change in cash flow of $11.9 million. In the first six months of 2019, changes in current and deferred taxes used cash of $1.1 million versus a $1.3 million use of cash in the first six months of 2018. These changes in cash flow were the primary drivers of the $33.8 million increase in cash provided by operations in the first six months of 2019 compared to the first six months of 2018.

Cash used in investing activities increased to $21.2 million in the first six months of 2019 from $14.8 million in the first six months of 2018 due to higher capital expenditures on plant and equipment. Cash used in financing activities in the first six months of 2019 consisted of $0.8 million of cash dividends paid, offset by $0.6 million of proceeds from exercised stock options. These changes in cash flow used $0.3 million cash in financing activities for the first six months of 2019 versus $0.5 million used in the first six months of 2018. As of June 30, 2019, the balance on the Company’s revolving line of credit remained at zero. The Company’s cash balance was $184.8 million at June 30, 2019 versus $102.0 million at June 30, 2018, as a result of the changes in cash flow discussed above.

During the remainder of 2019, the Company expects its capital expenditures will consist primarily of expenditures related to the purchases of manufacturing equipment throughout its facilities to update equipment and address production bottlenecks. The total capital expenditures for all of 2019 associated with these projects are currently estimated to be between $40 million and $45 million. We have plans on the drawing board for significant capital expenditures, but these plans have been delayed by issues arising in connection with a highway expansion project which may bisect our property. The Company also expects its future working capital requirements to fluctuate as a result of changes in unit sales volumes and the price of copper and other raw materials. The Company believes that the current cash balance, cash flow from operations, and the financing available from its revolving credit facility will satisfy anticipated working capital and capital expenditure requirements during 2019.

11

Information Regarding Forward-Looking Statements

This quarterly report on Form 10-Q contains various “forward-looking statements” (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) and information that is based on management’s belief as well as assumptions made by and information currently available to management. The words “believes”, “estimates”, “anticipates”, “plans”, “seeks”, “expects”, “intends” and similar expressions identify some of the forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. Among the key factors that may have a direct bearing on the Company’s operating results are fluctuations in the economy and in the level of activity in the building and construction industry, demand for the Company’s products, the impact of price competition and fluctuations in the price of copper and other raw materials. For more information regarding “forward-looking statements,” see “Information Regarding Forward-Looking Statements” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, which is hereby incorporated by reference.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes from the information provided in Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Item 4. Controls and Procedures.

The Company maintains controls and procedures designed to ensure that information required to be disclosed by it in the reports it files with or submits to the Securities and Exchange Commission (the “SEC”) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and to ensure that information required to be disclosed by the Company in such reports is accumulated and communicated to the Company’s management, including the Chief Executive and Chief Financial Officers, as appropriate, to allow timely decisions regarding required disclosure. Based on an evaluation of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report conducted by the Company’s management, with the participation of the Chief Executive and Chief Financial Officers, the Chief Executive and Chief Financial Officers concluded that the Company’s disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in the reports it files with or submits to the SEC is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and to ensure that information required to be disclosed by the Company in such reports is accumulated and communicated to the Company’s management, including the Chief Executive and Chief Financial Officers, as appropriate, to allow timely decisions regarding required disclosure.

There have been no changes in the Company’s internal control over financial reporting or in other factors that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting during the period covered by this report.

12

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

For information on the Company’s legal proceedings, see Note 8 to the Company’s financial statements included in Item 1 to this report and incorporated herein by reference.

Item 1A. Risk Factors.

There have been no material changes to the Company’s risk factors as disclosed in Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Note 7 to the Company’s financial statements included in Item 1 to this report is hereby incorporated herein by reference.

Item 6. Exhibits.

Exhibit Number	Description
3.1	Certificate of Incorporation of Encore Wire Corporation and all amendments thereto (filed as Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2009, and incorporated herein by reference).
3.2	Third Amended and Restated Bylaws of Encore Wire Corporation, as amended through February 27, 2012 (filed as Exhibit 3.2 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, and incorporated herein by reference).
4.1	Form of certificate for Common Stock (filed as Exhibit 1 to the Company’s registration statement on Form 8-A, filed with the SEC on June 4, 1992, and incorporated herein by reference).
31.1	Certification by Daniel L. Jones, Chairman, President and Chief Executive Officer of the Company, dated August 1, 2019 and submitted pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification by Frank J. Bilban, Vice President – Finance, Treasurer, Secretary and Chief Financial Officer of the Company, dated August 1, 2019 and submitted pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification by Daniel L. Jones, Chairman, President and Chief Executive Officer of the Company, dated August 1, 2019 as required by 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification by Frank J. Bilban, Vice President – Finance, Treasurer, Secretary and Chief Financial Officer of the Company, dated August 1, 2019 as required by 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

13

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ENCORE WIRE CORPORATION
	(Registrant)
Dated: August 1, 2019	/s/ DANIEL L. JONES
	Daniel L. Jones Chairman, President and Chief Executive Officer
Dated: August 1, 2019	/s/ FRANK J. BILBAN
	Frank J. Bilban Vice President-Finance, Treasurer, Secretary and Chief Financial Officer

14

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Daniel L. Jones, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Encore Wire Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 1, 2019

/s/ DANIEL L. JONES

Daniel L. Jones
Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Frank J. Bilban, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Encore Wire Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 1, 2019

/s/ FRANK J. BILBAN

Frank J. Bilban
Vice President-Finance, Treasurer,
Secretary and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION FURNISHED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the Quarterly Report of Encore Wire Corporation (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Daniel L. Jones, Chairman, President and Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 1, 2019

/s/ DANIEL L. JONES

Daniel L. Jones
Chairman, President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION FURNISHED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the Quarterly Report of Encore Wire Corporation (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Frank J. Bilban, Vice-President—Finance, Treasurer, Secretary and Chief Financial Officer of the Company, certify pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 1, 2019

/s/ FRANK J. BILBAN

Frank J. Bilban
Vice President-Finance, Treasurer,
Secretary and Chief Financial Officer

XML

Cover - shares	6 Months Ended
	Jun. 30, 2019	Jul. 31, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Entity File Number	000-20278
Entity Registrant Name	ENCORE WIRE CORP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-2274963
Entity Address, Address Line One	1329 Millwood Road
Entity Address, City or Town	McKinney
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75069
City Area Code	972
Local Phone Number	562-9473
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	WIRE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		20,905,648
Entity Central Index Key	0000850460
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	[1]
Current assets:
Cash and cash equivalents	$ 184,800	$ 178,405
Accounts receivable, net of allowance of $2,031 and $2,030	255,968	235,353
Inventories, net	96,039	102,367
Income tax receivable	3,262	1,389
Prepaid expenses and other	1,885	1,723
Total current assets	541,954	519,237
Property, plant and equipment - at cost:
Land and land improvements	51,317	51,169
Construction-in-progress	31,126	24,623
Buildings and improvements	152,322	151,758
Machinery and equipment	326,542	314,175
Furniture and fixtures	10,123	9,687
Total property, plant and equipment	571,430	551,412
Accumulated depreciation	(260,009)	(252,754)
Property, plant and equipment - net	311,421	298,658
Other assets	806	165
Total assets	854,181	818,060
Current liabilities:
Trade accounts payable	46,053	36,706
Accrued liabilities	30,145	36,866
Income taxes payable	0	0
Total current liabilities	76,198	73,572
Deferred income taxes and other	25,340	24,032
Commitments and contingencies
Stockholders’ equity:
Authorized shares – 2,000,000; none issued	0	0
Issued shares – 26,933,103 and 26,906,603	269	269
Additional paid-in capital	62,652	60,822
Treasury stock, at cost – 6,027,455 and 6,027,455 shares	(91,056)	(91,056)
Retained earnings	780,778	750,421
Total stockholders’ equity	752,643	720,456
Total liabilities and stockholders’ equity	$ 854,181	$ 818,060

[1] The balance sheet at December 31, 2018, as presented, is derived from the audited financial statements at that date.

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for accounts receivable	$ 2,031	$ 2,030
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	26,933,103	26,906,603
Treasury stock, shares (in shares)	6,027,455	6,027,455

XML

Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Net sales	$ 336,866	$ 336,793	$ 651,573	$ 628,224
Cost of goods sold	290,956	292,296	564,337	546,232
Gross profit	45,910	44,497	87,236	81,992
Selling, general, and administrative expenses	23,846	21,498	48,844	44,385
Operating income	22,064	22,999	38,392	37,607
Net interest and other income	1,082	393	2,160	736
Income before income taxes	23,146	23,392	40,552	38,343
Provision for income taxes	5,364	5,303	9,359	8,901
Net income	$ 17,782	$ 18,089	$ 31,193	$ 29,442
Earnings per common and common equivalent share - basic (in usd per share)	$ 0.85	$ 0.87	$ 1.49	$ 1.41
Earnings per common and common equivalent share - diluted (in usd per share)	$ 0.85	$ 0.86	$ 1.49	$ 1.41
Weighted average common and common equivalent shares outstanding - basic (in shares)	20,898	20,847	20,891	20,838
Weighted average common and common equivalent shares outstanding - diluted (in shares)	20,988	20,918	20,985	20,911
Cash dividends declared per share (in usd per share)	$ 0.02	$ 0.02	$ 0.04	$ 0.04

XML

Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total		Common Stock	Additional Paid-In Capital	Treasury Stock	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2017			26,859		6,027
Beginning balance at Dec. 31, 2017	$ 641,345		$ 269	$ 58,192	$ (91,056)	$ 673,940
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11,353					11,353
Exercise of stock options (in shares)			13
Exercise of stock options	306			306
Stock-based compensation	649			649
Dividends declared	(417)					(417)
Beginning balance (in shares) at Mar. 31, 2018			26,872		6,027
Beginning balance at Mar. 31, 2018	653,236		$ 269	59,147	$ (91,056)	684,876
Beginning balance (in shares) at Dec. 31, 2017			26,859		6,027
Beginning balance at Dec. 31, 2017	641,345		$ 269	58,192	$ (91,056)	673,940
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	29,442
Beginning balance (in shares) at Jun. 30, 2018			26,877		6,027
Beginning balance at Jun. 30, 2018	671,329		$ 269	59,568	$ (91,056)	702,548
Beginning balance (in shares) at Mar. 31, 2018			26,872		6,027
Beginning balance at Mar. 31, 2018	653,236		$ 269	59,147	$ (91,056)	684,876
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	18,089					18,089
Stock-based compensation (in shares)			5
Stock-based compensation	421			421
Dividends declared	(417)					(417)
Beginning balance (in shares) at Jun. 30, 2018			26,877		6,027
Beginning balance at Jun. 30, 2018	671,329		$ 269	59,568	$ (91,056)	702,548
Beginning balance (in shares) at Dec. 31, 2018			26,907		6,027
Beginning balance at Dec. 31, 2018	720,456	[1]	$ 269	60,822	$ (91,056)	750,421
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	13,411					13,411
Exercise of stock options (in shares)			15
Exercise of stock options	431			431
Stock-based compensation	760			760
Dividends declared	(418)					(418)
Beginning balance (in shares) at Mar. 31, 2019			26,922		6,027
Beginning balance at Mar. 31, 2019	734,640		$ 269	62,013	$ (91,056)	763,414
Beginning balance (in shares) at Dec. 31, 2018			26,907		6,027
Beginning balance at Dec. 31, 2018	720,456	[1]	$ 269	60,822	$ (91,056)	750,421
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	31,193
Beginning balance (in shares) at Jun. 30, 2019			26,933		6,027
Beginning balance at Jun. 30, 2019	752,643		$ 269	62,652	$ (91,056)	780,778
Beginning balance (in shares) at Mar. 31, 2019			26,922		6,027
Beginning balance at Mar. 31, 2019	734,640		$ 269	62,013	$ (91,056)	763,414
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	17,782					17,782
Exercise of stock options (in shares)			6
Exercise of stock options	137			137
Stock-based compensation (in shares)			5
Stock-based compensation	502			502
Dividends declared	(418)					(418)
Beginning balance (in shares) at Jun. 30, 2019			26,933		6,027
Beginning balance at Jun. 30, 2019	$ 752,643		$ 269	$ 62,652	$ (91,056)	$ 780,778

[1] The balance sheet at December 31, 2018, as presented, is derived from the audited financial statements at that date.

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Statement of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per share (in usd per share)	$ 0.02	$ 0.02	$ 0.02	$ 0.02	$ 0.04	$ 0.04

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Statements of Cash Flow - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Operating Activities:
Net income	$ 31,193	$ 29,442
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	8,785	8,213
Deferred income taxes	816	761
Stock-based compensation attributable to equity awards	1,262	1,070
Other	(111)	(5)
Changes in operating assets and liabilities:
Accounts receivable	(20,615)	(29,529)
Inventories	6,328	(4,501)
Other assets	(200)	216
Trade accounts payable and accrued liabilities	2,266	(9,643)
Current income taxes receivable / payable	(1,873)	(2,022)
Net cash provided by (used in) operating activities	27,851	(5,998)
Investing Activities:
Purchases of property, plant and equipment	(21,210)	(14,816)
Proceeds from sale of assets	22
Net cash used in investing activities	(21,188)	(14,816)
Financing Activities:
Borrowings from revolver	0	65,200
Repayments to revolver	0	(65,200)
Proceeds from issuance of common stock, net	568	306
Dividends paid	(836)	(834)
Net cash used in financing activities	(268)	(528)
Net increase (decrease) in cash and cash equivalents	6,395	(21,342)
Cash and cash equivalents at beginning of period	178,405	123,362
Cash and cash equivalents at end of period	$ 184,800	$ 102,020

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Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Significant Accounting Policies

SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The unaudited financial statements of Encore Wire Corporation (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete annual financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Results of operations for interim periods presented do not necessarily indicate the results that may be expected for the entire year. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Revenue Recognition

The majority of our revenue is derived by fulfilling customer orders for the purchase of our products, which include electrical building wire and cable. We recognize revenue at the point in time that control of the ordered products is transferred to the customer, which is typically upon shipment to the customer from our manufacturing facilities and based on agreed upon shipping terms on the related purchase order. Amounts billed and due from our customers are classified as accounts receivables on the balance sheet and require payment on a short-term basis through standard payment terms.

Revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders. The amount of consideration we expect to receive and revenue we recognize includes estimates for trade payment discounts and customer rebates which are estimated using historical experience and other relevant factors and is recorded within the same period that the revenue is recognized. We review and update these estimates regularly and the impact of any adjustments are recognized in the period the adjustments are identified. The adjustments resulting from updated estimates of trade payment discounts and customer rebates were not material.

Recent Accounting Pronouncements

The Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) is the sole source of authoritative U.S. GAAP other than Securities and Exchange Commission ("SEC") issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standard Update (“ASU”) to communicate changes to the codification. The Company considers the applicability and impact of all ASUs. The following are those ASUs that are relevant to the Company.

The Company has a minimal number of leases, all of which are classified as operating. As a result of the adoption of ASU No. 2016-02, “Leases (Topic 842),” on January 1, 2019, the Company recorded $0.7 million of right of use assets which are included in other non-current assets, $0.2 million of current lease liabilities which are included in accounts payable and $0.5 million of long-term lease liabilities included in other non-current liabilities.  We will evaluate any future lease commitments in conformance with ASU No. 2016-02.

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Inventories

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Inventories are stated at the lower of cost, determined by the last-in, first-out (LIFO) method, or market.

Inventories consist of the following:

In Thousands	June 30, 2019			December 31, 2018
Raw materials	$	27,607		$	28,455
Work-in-process	25,611			30,529
Finished goods	88,657			88,708
Total Inventory at FIFO cost	141,875			147,692
Adjust to LIFO cost	(45,836		)	(45,325		)
Lower of cost or market adjustment	—			—
Inventory, net	$	96,039		$	102,367

LIFO pools are established at the end of each fiscal year. During the first three quarters of every year, LIFO calculations are based on the inventory levels and costs at that time. Accordingly, interim LIFO balances will fluctuate depending on those inventory levels and costs.

In the second quarter of 2019, LIFO adjustments were recorded, decreasing cost of sales by $3.3 million, versus LIFO adjustments increasing cost of sales by $1.7 million in the second quarter of 2018. In the first six months of 2019, LIFO adjustments were

recorded, increasing cost of sales by $0.5 million, versus LIFO adjustments increasing cost of sales by $3.7 million in the first six months of 2018.

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Accrued Liabilities

6 Months Ended

Jun. 30, 2019

Accrued Liabilities, Current [Abstract]

Accrued Liabilities

ACCRUED LIABILITIES

Accrued liabilities consist of the following:

In Thousands	June 30, 2019		December 31, 2018
Sales rebates payable	$	14,849	$	18,565
Property taxes payable	1,995		3,962
Accrued salaries	6,214		8,790
Other accrued liabilities	7,087		5,549
Total accrued liabilities	$	30,145	$	36,866

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Income Taxes

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Income taxes were accrued at an effective rate of 23.2% in the second quarter of 2019 versus 22.7% in the second quarter of 2018, consistent with the Company’s estimated liabilities. For the six months ended June 30, the Company’s tax rate was approximately 23.1% in 2019 and 23.2% in 2018. In all periods, the differences between the provisions for income taxes and the income taxes computed using the federal income tax statutory rate are due primarily to the incremental taxes accrued for state and local taxes.

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Earnings Per Share

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

Earnings per common and common equivalent share are computed using the weighted average number of shares of common stock and common stock equivalents outstanding during each period. If dilutive, the effect of stock options, treated as common stock equivalents, is calculated using the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per share:

	Quarter Ended June 30,				Six Months Ended June 30,
In Thousands	2019		2018		2019		2018
Numerator:
Net income	$	17,782	$	18,089	$	31,193	$	29,442
Denominator:
Denominator for basic earnings per share – weighted average shares	20,898		20,847		20,891		20,838
Effect of dilutive securities:
Employee stock awards	90		71		94		73
Denominator for diluted earnings per share – weighted average shares	20,988		20,918		20,985		20,911

The weighted average of employee stock options excluded from the determination of diluted earnings per common and common equivalent share for the second quarter was 117,500 in 2019 and 166,500 in 2018. The weighted average of employee stock options excluded from the determination of diluted earnings per common and common equivalent share for the six months ended June 30 was 117,500 in 2019 and 156,056 in 2018. Such options were anti-dilutive for their respective periods.

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Debt

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Debt

DEBT

The Company is party to a Credit Agreement (the “Credit Agreement”) with two banks, Bank of America, N.A., as administrative agent and letter of credit issuer, and Wells Fargo Bank, National Association, as syndication agent. The Credit Agreement, as amended, extends through October 1, 2021 and provides for maximum borrowings of $150.0 million. At our request, and subject to certain conditions, the commitments under the Credit Agreement may be increased by a maximum of up to $100.0 million as long as existing or new lenders agree to provide such additional commitments. Borrowings under the line of credit bear interest, at the Company’s option, at either (1) LIBOR plus a margin that varies from 0.875% to 1.75% depending upon the Leverage Ratio (as defined in the Credit Agreement), or (2) the base rate (which is the highest of the federal funds rate plus 0.5%, the prime rate, or LIBOR plus 1.0%) plus 0% to 0.25% (depending upon the Leverage Ratio). A commitment fee ranging from 0.15% to 0.30% (depending upon the Leverage Ratio) is payable on the unused line of credit. At June 30, 2019, there were no borrowings outstanding under the Credit Agreement, and letters of credit outstanding in the amount of $1.5 million left $148.5 million of credit available under the Credit Agreement. Obligations under the Credit Agreement are the only contractual borrowing obligations or commercial borrowing commitments of the Company.

Obligations under the Credit Agreement are unsecured and contain customary covenants and events of default. The Company was in compliance with the covenants as of June 30, 2019.

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Stockholders' Equity	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Stockholders' Equity	STOCKHOLDERS’ EQUITY On November 10, 2006, the Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to an authorized number of shares of its common stock on the open market or through privately negotiated transactions at prices determined by the President of the Company during the term of the program. The Company’s Board of Directors has authorized several increases and annual extensions of this stock repurchase program, and, as of June 30, 2019, 1,132,946 shares remained authorized for repurchase through March 31, 2020. The Company did not repurchase any shares of its stock in the six months ended June 30, 2019 or 2018.

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Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Contingencies

CONTINGENCIES

There are no material pending proceedings to which the Company is a party or to which any of its property is subject. However, the Company is from time to time involved in litigation, certain other claims and arbitration matters arising in the ordinary course of its business. The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of the probability of a loss and the determination as to whether a loss is reasonably estimable. Any such accruals are reviewed at least quarterly and adjusted to reflect the effects of negotiations, settlements, rulings, advice of legal counsel and technical experts and other information and events pertaining to a particular matter. To the extent there is a reasonable possibility (within the meaning of ASC 450 (Contingencies)) that probable losses could exceed amounts already accrued, if any, and the additional loss or range of loss is able to be estimated, management discloses the additional loss or range of loss.

For matters where the Company has evaluated that a loss is not probable, but is reasonably possible, the Company will disclose an estimate of the possible loss or range of loss or make a statement that such an estimate cannot be made. In some instances, for reasonably possible losses, the Company cannot estimate the possible loss or range of loss. The nature and progression of litigation can make it difficult to predict the impact a particular lawsuit will have on the Company. There are many reasons that the Company cannot make these assessments, including, among others, one or more of the following: the early stages of a proceeding; damages sought that are unspecified, unsupportable, unexplained or uncertain; discovery is incomplete; the complexity of the facts that are in dispute; the difficulty of assessing novel claims; the parties not having engaged in any meaningful settlement discussions; the possibility that other parties may share in any ultimate liability; and/or the often slow pace of litigation.

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Revenue Recognition

Revenue Recognition

The majority of our revenue is derived by fulfilling customer orders for the purchase of our products, which include electrical building wire and cable. We recognize revenue at the point in time that control of the ordered products is transferred to the customer, which is typically upon shipment to the customer from our manufacturing facilities and based on agreed upon shipping terms on the related purchase order. Amounts billed and due from our customers are classified as accounts receivables on the balance sheet and require payment on a short-term basis through standard payment terms.

Revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders. The amount of consideration we expect to receive and revenue we recognize includes estimates for trade payment discounts and customer rebates which are estimated using historical experience and other relevant factors and is recorded within the same period that the revenue is recognized. We review and update these estimates regularly and the impact of any adjustments are recognized in the period the adjustments are identified.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

The Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) is the sole source of authoritative U.S. GAAP other than Securities and Exchange Commission ("SEC") issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standard Update (“ASU”) to communicate changes to the codification. The Company considers the applicability and impact of all ASUs. The following are those ASUs that are relevant to the Company.

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Inventories (Tables)

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Summary of Inventory

Inventories consist of the following:

In Thousands	June 30, 2019			December 31, 2018
Raw materials	$	27,607		$	28,455
Work-in-process	25,611			30,529
Finished goods	88,657			88,708
Total Inventory at FIFO cost	141,875			147,692
Adjust to LIFO cost	(45,836		)	(45,325		)
Lower of cost or market adjustment	—			—
Inventory, net	$	96,039		$	102,367

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Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2019

Accrued Liabilities, Current [Abstract]

Summary of Accrued Liabilities

Accrued liabilities consist of the following:

In Thousands	June 30, 2019		December 31, 2018
Sales rebates payable	$	14,849	$	18,565
Property taxes payable	1,995		3,962
Accrued salaries	6,214		8,790
Other accrued liabilities	7,087		5,549
Total accrued liabilities	$	30,145	$	36,866

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Net Earnings (Loss) Per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Quarter Ended June 30,				Six Months Ended June 30,
In Thousands	2019		2018		2019		2018
Numerator:
Net income	$	17,782	$	18,089	$	31,193	$	29,442
Denominator:
Denominator for basic earnings per share – weighted average shares	20,898		20,847		20,891		20,838
Effect of dilutive securities:
Employee stock awards	90		71		94		73
Denominator for diluted earnings per share – weighted average shares	20,988		20,918		20,985		20,911

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Significant Accounting Policies (Details) - Accounting Standards Update 2016-02 $ in Millions	Jan. 01, 2019 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use asset	$ 0.7
Operating lease liability, current	0.2
Operating lease liability, noncurrent	$ 0.5

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Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 27,607	$ 28,455
Work-in-process	25,611	30,529
Finished goods	88,657	88,708
Total Inventory at FIFO cost	141,875	147,692
Adjust to LIFO cost	(45,836)	(45,325)
Lower of cost or market adjustment	0	0
Inventory, net	$ 96,039	$ 102,367	[1]

[1] The balance sheet at December 31, 2018, as presented, is derived from the audited financial statements at that date.

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Inventories - Narrative (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Inventory Disclosure [Abstract]
Increase (decrease) in cost of sales from LIFO adjustment	$ (3.3)	$ 1.7	$ 0.5	$ 3.7

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Accrued Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Accrued Liabilities, Current [Abstract]
Sales rebates payable	$ 14,849	$ 18,565
Property taxes payable	1,995	3,962
Accrued salaries	6,214	8,790
Other accrued liabilities	7,087	5,549
Total accrued liabilities	$ 30,145	$ 36,866	[1]

[1] The balance sheet at December 31, 2018, as presented, is derived from the audited financial statements at that date.

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Income Taxes (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	23.20%	22.70%	23.10%	23.20%

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Earnings Per Share - Computation of Basic and Diluted Net Earnings (Loss) Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Numerator:
Net income	$ 17,782	$ 13,411	$ 18,089	$ 11,353	$ 31,193	$ 29,442
Denominator:
Denominator for basic earnings per share – weighted average shares	20,898		20,847		20,891	20,838
Effect of dilutive securities:
Denominator for diluted earnings per share – weighted average shares	20,988		20,918		20,985	20,911
Employee stock awards
Effect of dilutive securities:
Employee stock options (in shares)	90		71		94	73

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Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share [Abstract]
Weighted average employee stock options excluded from the determination of diluted net income per common and common equivalent share (in shares)	117,500	166,500	117,500	156,056

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Debt (Detail)	6 Months Ended
	Jun. 30, 2019 USD ($) bank
Line of Credit Facility [Line Items]
Number of banks to which Company is party to a Credit Agreement | bank	2
Calculated maximum borrowings	$ 150,000,000.0
Available increase in borrowings under Credit Agreement	100,000,000.0
Outstanding borrowings	0
Letters of credit outstanding	1,500,000
Calculated maximum borrowing amount available in current year	$ 148,500,000
Credit Agreement | Minimum
Line of Credit Facility [Line Items]
Commitment fee percentage	0.15%
Credit Agreement | Maximum
Line of Credit Facility [Line Items]
Commitment fee percentage	0.30%
Credit Agreement | Credit Agreement Interest Rate Option One | Minimum | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate (as a percent)	0.875%
Credit Agreement | Credit Agreement Interest Rate Option One | Maximum | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate (as a percent)	1.75%
Credit Agreement | Credit Agreement Interest Rate Option Two | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate (as a percent)	1.00%
Credit Agreement | Credit Agreement Interest Rate Option Two | Minimum | Base Rate
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate (as a percent)	0.00%
Credit Agreement | Credit Agreement Interest Rate Option Two | Maximum | Federal Funds Rate
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate (as a percent)	0.50%
Credit Agreement | Credit Agreement Interest Rate Option Two | Maximum | Base Rate
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate (as a percent)	0.25%

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Stockholders' Equity (Detail) - shares	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Equity [Abstract]
Repurchase of common stock authorized remaining (in shares)	1,132,946
Repurchase of common stock (in shares)	0	0