EX-99.1 3 d10013exv99w1.txt EARNINGS RELEASE EXHIBIT 99.1 [Encore Wire Corporation Logo Omitted] Encore Wire Corporation Contact: Frank J. Bilban 1410 Millwood Road Vice President & CFO McKinney, Texas 75069 972-562-9473 PRESS RELEASE FOR IMMEDIATE RELEASE OCTOBER 23, 2003 ENCORE WIRE REPORTS INCREASED PROFITS ON RECORD SALES MCKINNEY, TX - Encore Wire Corporation (NASDAQ/NMS: WIRE) today reported financial results for the quarter ended September 30, 2003. Net sales for the third quarter of 2003 increased 42% to $113,877,000 compared to $80,150,000 during the third quarter of 2002. The $113.9 million in sales represents a new quarterly record for Encore, far surpassing the previous high of $80.6 million set in the second quarter of 2003. Shipment volume, measured in copper pounds sold, also set a new quarterly company record. Net income for the quarter increased to $5,222,000 versus $920,000 in the third quarter of 2002, an increase of 467%. Fully diluted net income per common share was $.34 in the third quarter of 2003 compared to $.06 of net income in the third quarter of 2002. Net income and fully diluted net income per share in the third quarter of 2003 also improved dramatically versus the $2,653,000 or $.17 per share reported in the second quarter of 2003. Net sales for the first nine months of 2003 increased 21% to $261,614,000 compared to $216,487,000 in the first nine months of 2002. Net income was $7,358,000 in the first nine months of 2003 versus $5,541,000 in the same period of 2002, an increase of 33%. Fully diluted net income per share was $.48 in the first nine months of 2003 versus $.36 in the first nine months of 2002. Commenting on the quarter ended September 30, 2003, Vincent A. Rego, Company Chairman and CEO remarked, "The trend Encore Wire has produced in increased sales and earnings over the last two quarters is remarkable. We earned $.51 per share in the last two quarters versus the previous three quarters in which we earned a cumulative net of $.06 per share. Our sales of $113.9 million this quarter were extremely strong, exceeding our previous record of $80.6 million by 41%. Our industry has suffered through a challenging period over the last few years. It now appears that the strong companies that survived the difficult times are seeing increased volumes resulting from the reduced presence of other competitors in the market. Our plants ran very efficiently during the quarter, also contributing to the enhanced gross margins. Our excellent staff impressed us with their ability to handle the increased volume levels. Copper prices continue to strengthen, which have historically been a driving stimulus of increased margins in our industry. The capacity and productivity enhancements we made in 2001 and 2002 have served us very well in 2003. We will continue to ensure our balance sheet remains strong. We thank our shareholders for their continued support. " Encore Wire Corporation manufactures a broad range of electrical wire for interior wiring in homes, apartments, manufactured housing and commercial and industrial buildings. The matters discussed in this news release, other than the historical financial information, including statements about the copper pricing environment, profitability and shareholder value, may include forward-looking statements that involve risks and uncertainties, including fluctuations in the price of copper and other raw materials, the impact of competitive pricing and other risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission. Actual results may vary materially from those anticipated. Encore Wire Corporation P.O. Box 1149 1410 Millwood Road McKinney, Texas 75069 (972) 562-9473 Condensed Consolidated Balance Sheet (In Thousands) (Unaudited)
SEPTEMBER 30, DECEMBER 31, 2003 2002 ------------- ------------ ASSETS Current Assets Cash $ 290 $ 160 Receivables, net 81,054 46,600 Inventories 55,337 50,165 Prepaid Expenses and Other 3,923 672 ------------- ------------ Total Current Assets 140,604 97,597 Property, Plant and Equipment, net 79,910 85,366 Other Assets 85 166 ------------- ------------ Total Assets $ 220,599 $ 183,129 ============= ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts Payable $ 39,022 $ 10,735 Accrued Liabilities and Other 14,813 11,183 ------------- ------------ Total Current Liabilities 53,835 21,918 Long Term Liabilities Note Payable 43,295 47,500 Non-Current Deferred Income Taxes 9,251 7,193 ------------- ------------ Total Long Term Liabilities 52,546 54,693 Total Liabilities 106,381 76,611 Stockholders' Equity Common Stock 170 169 Additional Paid in Capital 34,157 34,138 Treasury Stock (15,275) (15,275) Retained Earnings 95,166 87,486 ------------- ------------ Total Stockholders' Equity 114,218 106,518 ------------- ------------ Total Liabilities and Stockholders' Equity $ 220,599 $ 183,129 ============= ============
Encore Wire Corporation P.O. Box 1149 1410 Millwood Road McKinney, Texas 75069 (972) 562-9473 Condensed Consolidated Statement of Income (In Thousands) (Unaudited)
QUARTER ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, ---------------------------------------- --------------------------------------------- 2003 2002 2003 2002 ------------------ ------------------ ------------------ ----------------------- Net Sales $ 113,877 100.0% $ 80,150 100.0% $ 261,614 100.0% $ 216,487 100.0% Cost of Sales 96,255 84.5% 72,166 90.0% 226,534 86.6% 188,672 87.2% ---------- ----- ---------- ----- ---------- ----- ---------- ---------- Gross Profit 17,622 15.5% 7,984 10.0% 35,080 13.4% 27,815 12.8% Selling, General and Administrative Expenses 8,935 7.8% 6,180 7.7% 21,871 8.4% 17,917 8.3% ---------- ----- ---------- ----- ---------- ----- ---------- ---------- Operating Income 8,687 7.6% 1,804 2.3% 13,209 5.0% 9,898 4.6% Net Interest & Other Expense 527 0.5% 367 0.5% 1,712 0.7% 1,240 0.6% ---------- ----- ---------- ----- ---------- ----- ---------- ---------- Income before Income Taxes 8,160 7.2% 1,437 1.8% 11,497 4.4% 8,658 4.0% Income Taxes 2,938 2.6% 517 0.6% 4,139 1.6% 3,117 1.4% ---------- ----- ---------- ----- ---------- ----- ---------- ---------- Net Income $ 5,222 4.6% $ 920 1.1% $ 7,358 2.8% $ 5,541 2.6% ========== ===== ========== ===== ========== ===== ========== ========== Basic Earnings Per Share $ 0.35 $ 0.06 $ 0.49 $ 0.36 ========== ========== ========== ========== Diluted Earnings Per Share $ 0.34 $ 0.06 $ 0.48 $ 0.36 ========== ========== ========== ========== Weighted Average Number of Common and Common Equivalent Shares Outstanding: -Basic 15,120 15,168 15,120 15,231 ========== ========== ========== ========== -Diluted 15,305 15,282 15,205 15,381 ========== ========== ========== ==========