-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OZG/Mpxiu9y5suIflBgs83mx2BnsAxvBAXQglxi/KWPv0j+m2BgJueYFQwz2J/uO x/mfO60VB2xFkhbzADpAJg== 0000950134-04-005755.txt : 20040422 0000950134-04-005755.hdr.sgml : 20040422 20040422172358 ACCESSION NUMBER: 0000950134-04-005755 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040422 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040422 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENCORE WIRE CORP /DE/ CENTRAL INDEX KEY: 0000850460 STANDARD INDUSTRIAL CLASSIFICATION: ROLLING DRAWING & EXTRUDING OF NONFERROUS METALS [3350] IRS NUMBER: 752274963 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20278 FILM NUMBER: 04748914 BUSINESS ADDRESS: STREET 1: 1410 MILLWOOD RD STREET 2: P O BOX 1149 CITY: MCKINNEY STATE: TX ZIP: 75069 BUSINESS PHONE: 2145629473 MAIL ADDRESS: STREET 1: 1410 MILLWOOD RD STREET 2: P O BOX 1149 CITY: MCKINNEY STATE: TX ZIP: 75069 8-K 1 d14662e8vk.htm FORM 8-K e8vk
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
April 22, 2004

ENCORE WIRE CORPORATION

(Exact name of Registrant as specified in its charter)
         
Delaware   0-20278   75-2274963
  		 
  		 
 
(State or other jurisdiction of   Commission   (I.R.S. Employer
incorporation or organization)   File Number   Identification No.)
         
1410 Millwood Road        
McKinney, Texas       75069
  		     
 
(Address of principal executive offices)       (Zip Code)

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

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

 

TABLE OF CONTENTS

Item 7. Financial Statements and Exhibits.
Item 9. Regulation FD Disclosure.
Item 12. Results of Operations and Financial Condition.
SIGNATURE
INDEX TO EXHIBITS
Earnings Release

Table of Contents

Item 7. Financial Statements and Exhibits.

         
(c)
  Exhibits.    
 
        
  99.1   April 22, 2004 Earnings Release by Encore Wire Corporation regarding first quarter 2004 results.

Item 9. Regulation FD Disclosure.

     On April 22, 2004, Encore Wire Corporation, a Delaware corporation (the “Company”), issued an earnings release describing selected financial results of the Company for the first quarter of 2004. A copy of the Company’s earnings release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

     Limitation on Incorporation by Reference:

     In accordance with general instruction B.2 of Form 8-K, the information in this report, including exhibits, is furnished pursuant to Item 9 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section.

Item 12. Results of Operations and Financial Condition.

     On April 22, 2004, the Company issued an earnings release describing selected financial results of the Company for the first quarter of 2004. A copy of the Company’s earnings release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

     Limitation on Incorporation by Reference:

     In accordance with general instruction B.6 of Form 8-K, the information in this report, including exhibits, is furnished pursuant to Item 12 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section.

 

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SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
         
  ENCORE WIRE CORPORATION
 		  
Date: April 22, 2004  By:   /s/ FRANK J. BILBAN    
    Frank J. Bilban, Vice President – Finance,    
    Chief Financial Officer, Treasurer and Secretary   
 
     
     
     
     
 

 

Table of Contents

INDEX TO EXHIBITS

     
Item
   Exhibit
99.1
  April 22, 2004 Earnings Release by Encore Wire Corporation regarding first quarter 2004 results.

 

EX-99.1 3 d14662exv99w1.txt EARNINGS RELEASE Exhibit 99.1 (ENCORE WIRE CORPORATION LOGO) ENCORE WIRE CORPORATION PRESS RELEASE APRIL 22, 2004 1410 MILLWOOD ROAD MCKINNEY, TEXAS 75069 CONTACT: FRANK J. BILBAN 972-562-9473 VICE PRESIDENT & CFO FOR IMMEDIATE RELEASE ENCORE WIRE SETS NEW SALES AND EARNINGS RECORDS MCKINNEY, TX - Encore Wire Corporation (NASDAQ/NMS: WIRE) today reported record financial results for the quarter ended March 31, 2004. Net sales for the first quarter of 2004 increased 137% to $158.9 million compared to $67.2 million during the first quarter of 2003. The $158.9 million in net sales represents a new quarterly record for Encore, eclipsing the previous high of $123.1 million set in the fourth quarter of 2003. Shipment volume, measured in copper pounds sold, increased by 49% over the first quarter of 2003. Higher prices for building wire sold in the first quarter of 2004 accounted for the remainder of the increase in net sales dollars versus the first quarter of 2003. Sales prices for wire rose due to increases in the price of raw copper and favorable market conditions that allowed for increased margins on wire sold. Net income for the first quarter increased to $13.3 million versus a loss of $.5 million in the first quarter of 2003. Fully diluted net income per common share was $.85 in the first quarter of 2004 compared to $.03 of net loss per share in the first quarter of 2003. The net income of $13.3 million and $.85 of earnings per share also set new quarterly records. Net income and fully diluted net income per share in the first quarter of 2004 also improved significantly on a sequential basis, versus the $7.0 million or $.45 per share reported in the fourth quarter of 2003. After reporting its first quarterly loss in eight years of $.03 in the first quarter of 2003, the Company has reported successive profitable quarters of $.17, $.34, $.45 and $.85 per fully diluted share. Commenting on the quarter ended March 31, 2004, Vincent A. Rego, Company Chairman and CEO remarked, "The results Encore Wire has posted in increased sales and earnings over the last four quarters are very gratifying. We have produced $1.81 of net income per share in the last four quarters. Our sales volume in terms of units and dollars are very strong. Margins are returning to levels last seen in the 1996 to 1998 time frame. Today, however, we are a much larger company in terms of unit volume than we were then. Our industry has historically enjoyed strong margins when raw copper prices increase. Our highest gross margins in 1998 however, occurred when copper averaged $.85 for the quarter, illustrating that the most important factor driving margins is pricing discipline in the wire market. Over the last few quarters we have seen increased pricing discipline in the marketplace from our competitors. Our plants continue to meet strong unit demand at efficient operating cost levels. As always, we search for improvements throughout our operations that will enhance profitability. Due to our strong cash flow, our debt rose only $34.9 million in the quarter, although working capital increased $45.6 million, with the increased dollar investment required in Inventory and Accounts Receivable commensurate with the higher prices of copper and wire. We will continue to ensure our balance sheet remains strong. With our success over the past four quarters, we have received favorable exposure in the financial press both nationally and here in Texas. This success was made possible through the loyalty and devotion of our entire workforce. We thank them, as well as 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. 1 Encore Wire Corporation P.O. Box 1149 1410 Millwood Road McKinney, Texas 75069 (972) 562-9473 Condensed Consolidated Balance Sheet (In Thousands) (Unaudited)
MARCH 31, DECEMBER 31, 2004 2003 --------------- --------------- ASSETS Current Assets Cash $ 369 $ 391 Receivables, net 118,125 81,430 Inventories 80,616 59,344 Prepaid Expenses and Other 8,028 5,112 --------------- --------------- Total Current Assets 207,138 146,277 Property, Plant and Equipment, net 83,664 78,924 Other Assets 111 98 --------------- --------------- Total Assets $ 290,913 $ 225,299 =============== =============== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts Payable $ 36,293 $ 24,430 Accrued Liabilities and Other 18,942 15,590 --------------- --------------- Total Current Liabilities 55,235 40,020 Long Term Liabilities Note Payable 88,343 53,425 Non-Current Deferred Income Taxes 10,078 10,078 --------------- --------------- Total Long Term Liabilities 98,421 63,503 Total Liabilities 153,656 103,523 Stockholders' Equity Common Stock 172 170 Additional Paid in Capital 36,308 34,193 Treasury Stock (15,275) (15,275) Retained Earnings 116,052 102,688 --------------- --------------- Total Stockholders' Equity 137,257 121,776 --------------- --------------- Total Liabilities and Stockholders' Equity $ 290,913 $ 225,299 =============== ===============
2 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 MARCH 31, ---------------------------------------------------------- 2004 2003 ------------------------- -------------------------- Net Sales $ 158,942 100.0% $ 67,152 100.0% Cost of Sales 126,021 79.3% 61,495 91.6% ---------- ---------- ---------- ---------- Gross Profit 32,921 20.7% 5,657 8.4% Selling, General and Administrative Expenses 11,218 7.1% 5,953 8.9% ---------- ---------- ---------- ---------- Operating Income 21,703 13.7% (296) -0.4% Net Interest & Other Expense 633 0.4% 511 0.8% ---------- ---------- ---------- ---------- Income before Income Taxes 21,070 13.3% (807) -1.2% Income Taxes 7,805 4.9% (290) -0.4% ---------- ---------- ---------- ---------- Net Income $ 13,265 8.3% $ (517) -0.8% ========== ========== ========== ========== Basic Earnings Per Share $ 0.87 $ (0.03) ========== ========== Diluted Earnings Per Share $ 0.85 $ (0.03) ========== ========== Weighted Average Number of Common and Common Equivalent Shares Outstanding: -Basic 15,208 15,119 ========== ========== -Diluted 15,678 15,119 ========== ==========
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