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): July 25, 2013

ENCORE WIRE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	000-20278	75-2274963
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS 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

(Former name or former address, 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):

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

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

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

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

Item 2.02 Results of Operations and Financial Condition.

On July 25, 2013, Encore Wire Corporation, a Delaware corporation (the “Company”), issued an earnings release describing selected financial results of the Company for the second quarter of 2013 and the six months ended June 30, 2013 (the “Earnings Release”). A copy of the 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.

Item 7.01 Regulation FD Disclosure.

On July 25, 2013, the Company issued the Earnings Release. A copy of the 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.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 July 25, 2013 Earnings Release by Encore Wire Corporation regarding results for the second quarter of 2013 and the six months ended June 30, 2013.

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 hereunto duly authorized.

	ENCORE WIRE CORPORATION
Date: July 25, 2013	By:	/s/ FRANK J. BILBAN
		Frank J. Bilban, Vice President – Finance,
		Chief Financial Officer, Treasurer and
		Secretary

INDEX TO EXHIBITS

Item	Exhibit
99.1	July 25, 2013 Earnings Release by Encore Wire Corporation regarding results for the second quarter of 2013 and the six months ended June 30, 2013.

EX-99.1

Exhibit 99.1

Encore Wire Corporation	PRESS RELEASE		July 25, 2013
1329 Millwood Road
McKinney, Texas 75069		Contact:	Frank J. Bilban
972-562-9473			Vice President & CFO

For Immediate Release

ENCORE WIRE REPORTS SECOND QUARTER RESULTS

MCKINNEY, TX - Encore Wire Corporation (NASDAQ Global Select: WIRE) today announced results for the second quarter and six months ended June 30, 2013.

Net sales for the second quarter ended June 30, 2013 were $289.5 million compared to $264.7 million during the second quarter of 2012. Copper unit volume, measured in pounds of copper contained in the wire sold, increased 8.1% in the second quarter of 2013 versus the second quarter of 2012, accounting for most of the increase in net sales dollars. Aluminum building wire sales also contributed to the increased sales, constituting 6.6% of net sales dollars for the second quarter of 2013 versus 3.5% in the second quarter of 2012. The average selling price of wire per copper pound sold dropped 2.1% in the second quarter of 2013 versus the second quarter of 2012, slightly offsetting the increase in sales dollars. Net income for the second quarter of 2013 was $15.5 million versus $2.4 million in the second quarter of 2012. Fully diluted net earnings per common share were $0.75 in the second quarter of 2013 versus $0.11 in the second quarter of 2012. The second quarter of 2013 included increased aluminum production activity which enabled enhanced overhead allocations that favorably impacted quarterly results by approximately $0.06 to $0.10 in net earnings per share.

Net sales for the six months ended June 30, 2013 were $554.8 million compared to $545.2 million during the same period in 2012. Copper unit volume in the six months ended June 30, 2013 increased 2.6% versus the same period in 2012, offset by a 3.9% drop in average sales prices. Aluminum building wire sales accounted for the increased sales, constituting 6.1% of net sales dollars for the six months ended June 30, 2013 versus 3.2% in the six months ended June 30, 2012. Net income for the six months ended June 30, 2013 was $21.9 million versus $9.1 million in the same period in 2012. Fully diluted net earnings per common share were $1.06 for the six months ended June 30, 2013 versus $0.40 in the same period in 2012.

On a sequential quarter comparison, net sales for the second quarter of 2013 were $289.5 million versus $265.4 million during the first quarter of 2013. Copper wire unit volume increased 13.9% on a sequential quarter comparison, offset somewhat by a 5.2% decrease in average sales prices. Aluminum building wire sales also contributed to the increased sales, constituting 6.6% of net sales dollars for the second quarter of 2013 versus 5.7% in the first quarter of 2013. Net income for the second quarter of 2013 was $15.5 million versus $6.4 million in the first quarter of 2013. Fully diluted net income per common share was $0.75 in the second quarter of 2013 versus $0.31 in the first quarter of 2013.

Commenting on the results, Daniel L. Jones, President and Chief Executive Officer of Encore Wire Corporation, said, “The second quarter of this year was encouraging to us from both a volume and margin perspective. Unit volumes were up in all building wire products. We believe our expansion of product offerings over the last several years to our existing customer base has been critical to maintaining and perhaps boosting our market share, as our capital expenditures help to drive increased sales. As we have repeatedly noted, one of the key metrics to our earnings is the “spread” between the price of copper wire sold and the cost of raw copper purchased in any given period. That spread increased 18.1% in the second quarter of 2013 versus the second quarter of 2012, while our copper unit volume shipped in the second quarter of 2013 increased 8.1% versus the second quarter of 2012. The copper spread expanded as the average price of copper purchased fell 8.3% in the second quarter of 2013 versus the second quarter of 2012, but the average selling price of wire sold fell only 2.1%, as a result of improved pricing

discipline in the industry. That same positive trend was evident on a sequential quarterly comparison, as copper unit sales increased 13.9% with a 5.7% increase in spreads. Our aluminum plant is now on line and capable of producing our full line of products. The aluminum building wire products grew to 6.6% of sales in the quarter, driven by a unit sales increase of 33.7% on a sequential quarter basis. We continue to strive to lead and support industry price increases in an effort to maintain and increase margins. We believe our superior order fill rates continue to enhance our competitive position, as our electrical distributor customers are holding lean inventories in the field. As orders come in from electrical contractors, the distributors can count on our order fill rates to ensure quick deliveries from coast to coast. We have been able to accomplish this despite holding what are historically lean inventories for us.

Our balance sheet is very strong. We have no long term debt, and our revolving line of credit is paid down to zero. In addition, we had $1.2 million in cash as of June 30, 2013, after we purchased 201 acres of land for $25.7 million as previously announced in a press release. We also declared another quarterly cash dividend during the quarter. We understand that this is a cyclical industry and therefore we designed and manage our cost structure and balance sheet accordingly. Our low cost structure and strong balance sheet have enabled us to withstand difficult periods in the past, and we believe we will emerge stronger than most when market conditions improve. We thank our employees and associates for their outstanding effort and our shareholders for their continued support during these challenging times.”

Encore Wire Corporation manufactures a broad range of electrical building wire for interior wiring in commercial and industrial buildings, homes, apartments, and manufactured housing. 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.

Additional Disclosures:

The term “EBITDA” is used by the Company in presentations, quarterly conference calls and other instances as appropriate. EBITDA is defined as net income before interest, income taxes, depreciation and amortization. The Company presents EBITDA because it is a required component of financial ratios reported by the Company to the Company’s banks, and is also frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of Generally Accepted Accounting Principles (GAAP) results to compare to the performance of other companies who also publicize this information. Financial analysts frequently ask for EBITDA when it has not been presented. EBITDA is not a measurement of financial performance under GAAP and should not be considered an alternative to net income as an indicator of the Company’s operating performance or any other measure of performance derived in accordance with GAAP. The Company has reconciled EBITDA with net income for fiscal years 1996 to 2012 on previous current reports on Form 8-K filed with the Securities and Exchange Commission. EBITDA for each period pertinent to this press release is calculated and reconciled to net income as follows:

	3 Months Ended June 30,				6 Months Ended June 30,
$’s in 000’s	2013		2012		2013		2012
Net Income	$	15,502	$	2,370	$	21,897	$	9,063
Income Tax Expense		8,454		1,702		11,230		4,413
Interest Expense		60		78		123		156
Depreciation and Amortization		3,700		3,627		7,052		7,236
EBITDA	$	27,716	$	7,777	$	40,302	$	20,868

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Encore Wire Corporation

Condensed Consolidated Balance Sheets

(In Thousands)

(Unaudited)

	June 30,			December 31,
	2013			2012
ASSETS
Current Assets
Cash	$	1,234		$	33,883
Receivables, net		236,172			197,980
Inventories		64,503			63,656
Prepaid Expenses and Other		6,002			11,331
Total Current Assets		307,911			306,850
Property, Plant and Equipment, net		189,621			164,924
Other Assets		543			693
Total Assets	$	498,075		$	472,467
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts Payable	$	25,298		$	20,112
Accrued Liabilities and Other		23,066			25,245
Total Current Liabilities		48,364			45,357
Long Term Liabilities
Non-Current Deferred Income Taxes		18,081			16,946
Total Long Term Liabilities		18,081			16,946
Total Liabilities		66,445			62,303
Stockholders’ Equity
Common Stock		266			266
Additional Paid in Capital		48,694			48,298
Treasury Stock		(88,134	)		(88,134	)
Retained Earnings		470,804			449,734
Total Stockholders’ Equity		431,630			410,164
Total Liabilities and Stockholders’ Equity	$	498,075		$	472,467

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Encore Wire Corporation

Condensed Consolidated Statements of Income

(In Thousands, Except Per Share Data)

(Unaudited)

	Quarter Ended June 30,										Six Months Ended June 30,
	2013					2012					2013					2012
Net Sales	$	289,460		100.0	%	$	264,730		100.0	%	$	554,811		100.0	%	$	545,196		100.0	%
Cost of Sales		249,309		86.1	%		245,339		92.7	%		490,359		88.4	%		501,344		92.0	%
Gross Profit		40,151		13.9	%		19,391		7.3	%		64,452		11.6	%		43,852		8.0	%
Selling, General and Administrative Expenses		16,213		5.6	%		15,327		5.8	%		31,360		5.7	%		30,404		5.6	%
Operating Income		23,938		8.3	%		4,064		1.5	%		33,092		6.0	%		13,448		2.5	%
Net Interest & Other Expense		(18	)	0.0	%		(8	)	0.0	%		(35	)	0.0	%		(28	)	0.0	%
Income before Income Taxes		23,956		8.3	%		4,072		1.5	%		33,127		6.0	%		13,476		2.5	%
Income Taxes		8,454		2.9	%		1,702		0.6	%		11,230		2.0	%		4,413		0.8	%
Net Income	$	15,502		5.4	%	$	2,370		0.9	%	$	21,897		3.9	%	$	9,063		1.7	%
Basic Earnings Per Share	$	0.75				$	0.11				$	1.06				$	0.40
Diluted Earnings Per Share	$	0.75				$	0.11				$	1.06				$	0.40
Weighted Average Number of Common and Common Equivalent Shares Outstanding:
-Basic		20,669					21,997					20,667					22,712
-Diluted		20,738					22,037					20,736					22,757
Dividend Declared per Share	$	0.02				$	0.02				$	0.04				$	0.04

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