8-K

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):
February 7, 2006

ENCORE WIRE CORPORATION

(Exact name of Registrant as specified in its charter)

Delaware	0-20278	75-2274963
(State or other jurisdiction of incorporation or organization)	Commission File Number	(I.R.S. Employer 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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2—Financial Information

Item 2.02. Results of Operations and Financial Condition.

     On February 7, 2006, Encore Wire Corporation, a Delaware corporation (the “Company”), issued an earnings release describing selected financial results of the Company for the fourth quarter of 2005. 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 2.02 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.

Section 7—Regulation FD

Item 7.01. Regulation FD Disclosure.

     On February 7, 2006, the Company issued an earnings release describing selected financial results of the Company for the fourth quarter of 2005. 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 7.01 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.

Section 9—Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits.

99.1 February 7, 2006 Earnings Release by Encore Wire Corporation regarding fourth quarter 2005 results.

SIGNATURE

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

	ENCORE WIRE CORPORATION
Date: February 7, 2006	By:	/s/ FRANK J. BILBAN
		Frank J. Bilban, Vice President — Finance,
		Chief Financial Officer, Treasurer and Secretary

INDEX TO EXHIBITS

Item	Exhibit
99.1	February 7, 2006 Earnings Release by Encore Wire Corporation regarding fourth quarter 2005 results.

EX-99.1

EXHIBIT 99.1

[Encore Wire Corporation Logo Omitted]

Encore Wire Corporation	PRESS RELEASE		February 7, 2006
1410 Millwood Road
McKinney, Texas 75069		Contact:	Frank J. Bilban
972-562-9473			Vice President & CFO

For Immediate Release

ENCORE WIRE SETS NEW EARNINGS RECORDS

MCKINNEY, TX — Encore Wire Corporation (NASDAQ/NMS: WIRE) announced today that fourth quarter and year ended December 31, 2005 earnings and sales dollars set company records.

Net sales for the fourth quarter of 2005 increased 65.5% to a record $244.2 million compared to $147.5 million during the fourth quarter of 2004. The increase in net sales dollars is due primarily to higher wire prices in 2005 versus 2004. Net income for the fourth quarter of 2005 increased 450% to a record $35.4 million versus $6.4 million in the fourth quarter of 2004. Fully diluted net income per common share was a record $1.50 in the fourth quarter of 2005 versus $0.27 in the fourth quarter of 2004.

On a sequential quarter comparison, sales for the fourth quarter of 2005 increased 17.7% to $244.2 million from $207.5 million during the third quarter of 2005. Net Income for the fourth quarter of 2005 increased 216% to $35.4 million versus $11.2 million in the third quarter of 2005. Fully diluted net income per common share was $1.50 in the fourth quarter of 2005 versus $0.48 in the third quarter of 2005.

Net sales for the year ended December 31, 2005 increased 25.7% to a record $758.1 million compared to the previous record of $603.2 million set during 2004. Net income for the year ended December 31, 2005 increased 50.1% to a record $50.1 million, eclipsing the previous high of $33.4 million in 2004. Fully diluted net income per common share also set a new high of $2.13 in the year ended December 31, 2005 versus the previous all time high of $1.42 in 2004.

Commenting on the results, Daniel L. Jones, President and Chief Executive Officer of Encore Wire Corporation, said, “We are proud to announce new records for quarterly and annual earnings and sales. We are enthused by the strong increase in sales and margins during the second half of 2005 versus the first half of 2005. Margins were low throughout most of the first half of 2005. They began to trend upward late in the second quarter of 2005 and continued to expand significantly through the third and fourth quarters. Pricing discipline in our industry continued to solidify in the fourth quarter, enhancing our margins. The price of copper, our major raw material, continues to be strong, which has historically enhanced our margins. Although other inputs such as PVC resin and energy rose in cost as the Gulf Coast hurricanes impacted supplies of these components, we were successful in passing on these cost increases through the price of our wire, while experiencing minimal interruption in our supply. The construction of our new armored cable plant continues on schedule. This extension of our product line is expected to begin producing sales in the third quarter of 2006. Due to our strong cash flow in the fourth quarter, we were able to pay down our debt $13.1 million to $71.2 million despite the fact we increased our working capital by $19.1 million and spent $7.1 million on capital expenditures. We will continue to manage the Company to grow sales and earnings while maintaining our historically strong and conservative balance sheet. We also want to thank our employees and associates for their tremendous efforts and our stockholders for their support.”

Encore Wire Corporation manufactures a broad range of copper 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)

	December 31,			December 31,
	2005			2004
ASSETS
Current Assets
Cash	$	2,622		$	2,640
Receivables, net		164,930			108,752
Inventories		67,932			39,111
Prepaid Expenses and Other		19,749			11,661
Total Current Assets		255,233			162,164
Property, Plant and Equipment, net		93,137			88,679
Other Assets		106			672
Total Assets	$	348,476		$	251,515
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts Payable	$	17,277		$	15,090
Accrued Liabilities and Other		38,844			14,392
Total Current Liabilities		56,121			29,482
Long Term Liabilities
Note Payable		70,438			49,836
Other Long Term Liabilities		762			—
Non-Current Deferred Income Taxes		10,620			12,653
Total Long Term Liabilities		81,820			62,489
Total Liabilities		137,941			91,971
Stockholders’ Equity
Common Stock		259			259
Additional Paid in Capital		38,932			38,020
Treasury Stock		(15,275	)		(15,275	)
Retained Earnings		186,619			136,540
Total Stockholders’ Equity		210,535			159,544
Total Liabilities and Stockholders’ Equity	$	348,476		$	251,515

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 December 31,								Year Ended December 31,
	2005				2004				2005				2004
Net Sales	$	244,172	100.0	%	$	147,506	100.0	%	$	758,089	100.0	%	$	603,225	100.0	%
Cost of Sales		176,039	72.1	%		126,827	86.0	%		632,842	83.5	%		506,819	84.0	%
Gross Profit		68,133	27.9	%		20,679	14.0	%		125,247	16.5	%		96,406	16.0	%
Selling, General and Administrative Expenses		13,081	5.4	%		10,959	7.4	%		46,335	6.1	%		42,218	7.0	%
Operating Income		55,052	22.5	%		9,720	6.6	%		78,912	10.4	%		54,188	9.0	%
Net Interest & Other Expense		1,260	0.5	%		328	0.2	%		3,935	0.5	%		2,384	0.4	%
Income before Income Taxes		53,792	22.0	%		9,392	6.4	%		74,977	9.9	%		51,804	8.6	%
Income Taxes		18,382	7.5	%		2,956	2.0	%		24,898	3.3	%		18,444	3.1	%
Net Income	$	35,410	14.5	%	$	6,436	4.4	%	$	50,079	6.6	%	$	33,360	5.5	%
Basic Earnings Per Share	$	1.53			$	0.28			$	2.17			$	1.45
Diluted Earnings Per Share	$	1.50			$	0.27			$	2.13			$	1.42
Weighted Average Number of Common and Common Equivalent Shares Outstanding:
-Basic		23,143				23,104				23,117				23,018
-Diluted		23,624				23,472				23,537				23,528