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 JuneSeptember 30, 2022
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)
__________________________________________________________
Delaware75-2274963
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
1329 Millwood Road
McKinneyTexas75069
(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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $.01 per shareWIREThe 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 FilerAccelerated filer
Non-accelerated filerSmaller 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 JulyOctober 26, 2022: 19,125,56618,342,580




ENCORE WIRE CORPORATION
FORM 10-Q
FOR THE QUARTER ENDED JUNESEPTEMBER 30, 2022

Table of Contents
Page No.




PART I—FINANCIAL INFORMATION
Item 1. Financial Statements.
Encore Wire Corporation
Balance Sheets
(In thousands, except share and per share data)
June 30, 2022December 31, 2021September 30, 2022December 31, 2021
(Unaudited)(Audited)(Unaudited)(Audited)
AssetsAssetsAssets
Current assets:Current assets:Current assets:
Cash and cash equivalentsCash and cash equivalents$469,540 $438,990 Cash and cash equivalents$573,582 $438,990 
Accounts receivable, net of allowance of $3,800 and $3,800Accounts receivable, net of allowance of $3,800 and $3,800606,132 491,126 Accounts receivable, net of allowance of $3,800 and $3,800561,669 491,126 
Inventories, netInventories, net121,418 100,816 Inventories, net136,187 100,816 
Income tax receivableIncome tax receivable— 951 Income tax receivable3,206 951 
Prepaid expenses and otherPrepaid expenses and other9,978 3,167 Prepaid expenses and other20,058 3,167 
Total current assetsTotal current assets1,207,068 1,035,050 Total current assets1,294,702 1,035,050 
Property, plant and equipment, netProperty, plant and equipment, net561,205 494,916 Property, plant and equipment, net587,826 494,916 
Other assetsOther assets509 570 Other assets522 570 
Total assetsTotal assets$1,768,782 $1,530,536 Total assets$1,883,050 $1,530,536 
Liabilities and Stockholders’ EquityLiabilities and Stockholders’ EquityLiabilities and Stockholders’ Equity
Current liabilities:Current liabilities:Current liabilities:
Trade accounts payableTrade accounts payable$70,708 $75,353 Trade accounts payable$68,576 $75,353 
Accrued liabilitiesAccrued liabilities72,782 78,747 Accrued liabilities83,040 78,747 
Income taxes payableIncome taxes payable1,689 — Income taxes payable— — 
Total current liabilitiesTotal current liabilities145,179 154,100 Total current liabilities151,616 154,100 
Deferred income taxes and otherDeferred income taxes and other39,707 37,347 Deferred income taxes and other46,717 37,347 
Commitments and contingenciesCommitments and contingencies00Commitments and contingencies
Stockholders’ equity:Stockholders’ equity:Stockholders’ equity:
Preferred stock, $.01 par value:Preferred stock, $.01 par value:Preferred stock, $.01 par value:
Authorized shares – 2,000,000; none issuedAuthorized shares – 2,000,000; none issued— — Authorized shares – 2,000,000; none issued— — 
Common stock, $.01 par value:Common stock, $.01 par value:Common stock, $.01 par value:
Authorized shares – 40,000,000;Authorized shares – 40,000,000;Authorized shares – 40,000,000;
Issued shares – 27,132,850 and 27,083,100271 271 
Issued shares – 27,139,611 and 27,083,100Issued shares – 27,139,611 and 27,083,100271 271 
Additional paid-in capitalAdditional paid-in capital78,123 72,753 Additional paid-in capital80,930 72,753 
Treasury stock, at cost – 8,052,284 and 6,944,262 shares(286,870)(155,014)
Treasury stock, at cost – 8,838,031 and 6,944,262 sharesTreasury stock, at cost – 8,838,031 and 6,944,262 shares(380,262)(155,014)
Retained earningsRetained earnings1,792,372 1,421,079 Retained earnings1,983,778 1,421,079 
Total stockholders’ equityTotal stockholders’ equity1,583,896 1,339,089 Total stockholders’ equity1,684,717 1,339,089 
Total liabilities and stockholders’ equityTotal liabilities and stockholders’ equity$1,768,782 $1,530,536 Total liabilities and stockholders’ equity$1,883,050 $1,530,536 

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, Quarter Ended September 30,Nine Months Ended September 30,
20222021202220212022202120222021
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Net salesNet sales$838,235 $744,408 $1,561,307 $1,188,548 Net sales$762,363 $716,320 $2,323,670 $1,904,869 
Cost of goods soldCost of goods sold517,463 467,066 996,788 826,702 Cost of goods sold462,916 445,554 1,459,704 1,272,256 
Gross profitGross profit320,772 277,342 564,519 361,846 Gross profit299,447 270,766 863,966 632,613 
Selling, general, and administrative expensesSelling, general, and administrative expenses50,405 41,140 86,616 72,292 Selling, general, and administrative expenses55,291 43,816 141,908 116,109 
Operating incomeOperating income270,367 236,202 477,903 289,554 Operating income244,156 226,950 722,058 516,504 
Net interest and other incomeNet interest and other income647 38 762 64 Net interest and other income3,087 52 3,850 116 
Income before income taxesIncome before income taxes271,014 236,240 478,665 289,618 Income before income taxes247,243 227,002 725,908 516,620 
Provision for income taxesProvision for income taxes60,476 53,187 106,595 65,376 Provision for income taxes55,470 51,464 162,065 116,840 
Net incomeNet income$210,538 $183,053 $372,070 $224,242 Net income$191,773 $175,538 $563,843 $399,780 
Earnings per common and common equivalent share – basicEarnings per common and common equivalent share – basic$10.84 $8.89 $18.88 $10.90 Earnings per common and common equivalent share – basic$10.11 $8.60 $28.98 $19.48 
Earnings per common and common equivalent share – dilutedEarnings per common and common equivalent share – diluted$10.71 $8.82 $18.62 $10.81 Earnings per common and common equivalent share – diluted$9.97 $8.51 $28.57 $19.31 
Weighted average common and common equivalent shares outstanding – basicWeighted average common and common equivalent shares outstanding – basic19,419 20,581 19,709 20,574 Weighted average common and common equivalent shares outstanding – basic18,968 20,421 19,459 20,523 
Weighted average common and common equivalent shares outstanding – dilutedWeighted average common and common equivalent shares outstanding – diluted19,666 20,763 19,982 20,741 Weighted average common and common equivalent shares outstanding – diluted19,243 20,629 19,733 20,703 
Cash dividends declared per shareCash dividends declared per share$0.02 $0.02 $0.04 $0.04 Cash dividends declared per share$0.02 $0.02 $0.06 $0.06 

See accompanying notes.

2


Encore Wire Corporation
Statements of Stockholders' Equity
(In thousands, except per share data)
20222022Common StockAdditional
Paid-In
Capital
Treasury StockRetained
Earnings
Total Stockholders' Equity2022Common StockAdditional
Paid-In
Capital
Treasury StockRetained
Earnings
Total Stockholders' Equity
(Unaudited)(Unaudited)SharesAmountSharesAmount(Unaudited)SharesAmountSharesAmount
Balance at December 31, 2021Balance at December 31, 202127,083 $271 $72,753 (6,944)$(155,014)$1,421,079 $1,339,089 Balance at December 31, 202127,083 $271 $72,753 (6,944)$(155,014)$1,421,079 $1,339,089 
Net incomeNet income— — — — — 161,531 161,531 Net income— — — — — 161,531 161,531 
Exercise of stock optionsExercise of stock options— 155 — — — 155 Exercise of stock options— 155 — — — 155 
Stock-based compensationStock-based compensation42 — 1,939 — — — 1,939 Stock-based compensation42 — 1,939 — — — 1,939 
Dividend declared—$0.02 per shareDividend declared—$0.02 per share— — — — — (394)(394)Dividend declared—$0.02 per share— — — — — (394)(394)
Purchase of treasury stockPurchase of treasury stock— — — (501)(58,383)— (58,383)Purchase of treasury stock— — — (501)(58,383)— (58,383)
Balance at March 31, 2022Balance at March 31, 202227,128 $271 $74,847 (7,445)$(213,397)$1,582,216 $1,443,937 Balance at March 31, 202227,128 $271 $74,847 (7,445)$(213,397)$1,582,216 $1,443,937 
Net incomeNet income— — — — — 210,538 210,538 Net income— — — — — 210,538 210,538 
Stock-based compensationStock-based compensation— 3,276 — — — 3,276 
Dividend declared—$0.02 per shareDividend declared—$0.02 per share— — — — — (382)(382)
Purchase of treasury stockPurchase of treasury stock— — — (607)(73,473)— (73,473)
Balance at June 30, 2022Balance at June 30, 202227,133 $271 $78,123 (8,052)$(286,870)$1,792,372 $1,583,896 
Net incomeNet income— — — — — 191,773 191,773 
Exercise of stock optionsExercise of stock options— — — — — — — Exercise of stock options— 52 — — — 52 
Stock-based compensationStock-based compensation— 3,276 — — — 3,276 Stock-based compensation— 2,755 — — — 2,755 
Dividend declared—$0.02 per shareDividend declared—$0.02 per share— — — — — (382)(382)Dividend declared—$0.02 per share— — — — — (367)(367)
Purchase of treasury stockPurchase of treasury stock— — — (607)(73,473)— (73,473)Purchase of treasury stock— — — (786)(93,392)— (93,392)
Balance at June 30, 202227,133 $271 $78,123 (8,052)$(286,870)$1,792,372 $1,583,896 
Balance at September 30, 2022Balance at September 30, 202227,140 $271 $80,930 (8,838)$(380,262)$1,983,778 $1,684,717 


20212021Common StockAdditional
Paid-In
Capital
Treasury StockRetained
Earnings
Total Stockholders' Equity2021Common StockAdditional
Paid-In
Capital
Treasury StockRetained
Earnings
Total Stockholders' Equity
(Unaudited)(Unaudited)SharesAmountSharesAmount(Unaudited)SharesAmountSharesAmount
Balance at December 31, 2020Balance at December 31, 202027,025 $270 $67,885 (6,468)$(111,718)$881,292 $837,729 Balance at December 31, 202027,025 $270 $67,885 (6,468)$(111,718)$881,292 $837,729 
Net incomeNet income— — — — — 41,189 41,189 Net income— — — — — 41,189 41,189 
Exercise of stock optionsExercise of stock options— 155 — — — 155 Exercise of stock options— 155 — — — 155 
Stock-based compensationStock-based compensation13 — 737 — — — 737 Stock-based compensation13 — 737 — — — 737 
Dividend declared—$0.02 per shareDividend declared—$0.02 per share— — — — — (413)(413)Dividend declared—$0.02 per share— — — — — (413)(413)
Balance at March 31, 2021Balance at March 31, 202127,041 $270 $68,777 (6,468)$(111,718)$922,068 $879,397 Balance at March 31, 202127,041 $270 $68,777 (6,468)$(111,718)$922,068 $879,397 
Net incomeNet income— — — — — 183,053 183,053 Net income— — — — — 183,053 183,053 
Exercise of stock optionsExercise of stock options258 — — — 259 Exercise of stock options258 — — — 259 
Stock-based compensationStock-based compensation— 1,331 — — — 1,331 Stock-based compensation— 1,331 — — — 1,331 
Dividend declared—$0.02 per shareDividend declared—$0.02 per share— — — — — (415)(415)Dividend declared—$0.02 per share— — — — — (415)(415)
Balance at June 30, 2021Balance at June 30, 202127,056 $271 $70,366 (6,468)$(111,718)$1,104,706 $1,063,625 Balance at June 30, 202127,056 $271 $70,366 (6,468)$(111,718)$1,104,706 $1,063,625 
Net incomeNet income— — — — — 175,538 175,538 
Stock-based compensationStock-based compensation— 851 — — — 851 
Dividend declared—$0.02 per shareDividend declared—$0.02 per share— — — — — (407)(407)
Purchase of treasury stockPurchase of treasury stock— — — (394)(32,732)— (32,732)
Balance at September 30, 2021Balance at September 30, 202127,060 $271 $71,217 (6,862)$(144,450)$1,279,837 $1,206,875 

See accompanying notes.
3


Encore Wire Corporation
Statements of Cash Flow
(In thousands)
Six Months Ended June 30, Nine Months Ended September 30,
2022202120222021
(Unaudited)(Unaudited)
Operating Activities:Operating Activities:Operating Activities:
Net incomeNet income$372,070 $224,242 Net income$563,843 $399,780 
Adjustments to reconcile net income to net cash
provided by operating activities:
Adjustments to reconcile net income to net cash
provided by operating activities:
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortizationDepreciation and amortization12,521 10,977 Depreciation and amortization19,035 17,154 
Deferred income taxesDeferred income taxes3,315 (1,958)Deferred income taxes10,339 (639)
Stock-based compensation attributable to equity awardsStock-based compensation attributable to equity awards5,215 2,068 Stock-based compensation attributable to equity awards7,971 2,919 
OtherOther128 4,078 Other110 5,085 
Changes in operating assets and liabilities:Changes in operating assets and liabilities:Changes in operating assets and liabilities:
Accounts receivableAccounts receivable(115,006)(299,873)Accounts receivable(70,543)(261,860)
InventoriesInventories(20,602)4,402 Inventories(35,371)1,595 
Other assetsOther assets(6,866)(185)Other assets(17,020)(1,014)
Trade accounts payable and accrued liabilitiesTrade accounts payable and accrued liabilities(15,126)47,239 Trade accounts payable and accrued liabilities(9,796)50,716 
Current income taxes receivable / payableCurrent income taxes receivable / payable2,640 43,349 Current income taxes receivable / payable(2,255)17,188 
Net cash provided by operating activitiesNet cash provided by operating activities238,289 34,339 Net cash provided by operating activities466,313 230,924 
Investing Activities:Investing Activities:Investing Activities:
Purchases of property, plant and equipmentPurchases of property, plant and equipment(75,246)(58,844)Purchases of property, plant and equipment(105,509)(85,489)
Proceeds from sale of assetsProceeds from sale of assets— 213 Proceeds from sale of assets— 405 
Net cash used in investing activitiesNet cash used in investing activities(75,246)(58,631)Net cash used in investing activities(105,509)(85,084)
Financing Activities:Financing Activities:Financing Activities:
Deferred financing feesDeferred financing fees— (550)Deferred financing fees— (550)
Purchase of treasury stockPurchase of treasury stock(131,856)— Purchase of treasury stock(225,248)(32,732)
Proceeds from issuance of common stock, netProceeds from issuance of common stock, net155 414 Proceeds from issuance of common stock, net206 414 
Dividends paidDividends paid(792)(823)Dividends paid(1,170)(1,235)
Net cash used in financing activitiesNet cash used in financing activities(132,493)(959)Net cash used in financing activities(226,212)(34,103)
Net increase (decrease) in cash and cash equivalentsNet increase (decrease) in cash and cash equivalents30,550 (25,251)Net increase (decrease) in cash and cash equivalents134,592 111,737 
Cash and cash equivalents at beginning of periodCash and cash equivalents at beginning of period438,990 183,123 Cash and cash equivalents at beginning of period438,990 183,123 
Cash and cash equivalents at end of periodCash and cash equivalents at end of period$469,540 $157,872 Cash and cash equivalents at end of period$573,582 $294,860 
See accompanying notes.

4


ENCORE WIRE CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
JuneSeptember 30, 2022
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, 2021.
In March 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. The Company is unable to predict the impact that COVID-19, or any ongoing variants, may have on our financial position and operating results in future periods. The duration or re-emergence of the outbreak and its long-term impact on our business remain uncertain.
Revenue Recognition
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 (“FASB”) Accounting Standards Codification (“ASC”) is the sole source of authoritative U.S. GAAP, along with the Securities and Exchange Commission (“SEC”) and Public Company Accounting Oversight Board (“PCAOB”) 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. No new standards have been adopted in 2022.
5


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 ThousandsIn ThousandsJune 30, 2022December 31, 2021In ThousandsSeptember 30, 2022December 31, 2021
Raw materialsRaw materials$34,875 $54,012 Raw materials$48,713 $54,012 
Work-in-processWork-in-process57,500 40,422 Work-in-process47,912 40,422 
Finished goodsFinished goods147,421 123,401 Finished goods133,561 123,401 
Total Inventory at FIFO costTotal Inventory at FIFO cost239,796 217,835 Total Inventory at FIFO cost230,186 217,835 
Adjust to LIFO costAdjust to LIFO cost(118,378)(117,019)Adjust to LIFO cost(93,999)(117,019)
Inventory, netInventory, net$121,418 $100,816 Inventory, net$136,187 $100,816 
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. GAAP, 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 JuneSeptember 30, 2022, no LCM adjustment was required. However, decreases 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.
In the secondthird quarter of 2022, LIFO adjustments were recorded that decreased cost of sales by $11.5$24.4 million, compared to LIFO adjustments that increased cost of sales by $24.1$0.6 million in the secondthird quarter of 2021. In the sixnine months ended JuneSeptember 30, 2022, LIFO adjustments were recorded that increaseddecreased cost of sales by $1.4$23.0 million, compared to LIFO adjustments that increased cost of sales by $46.0$46.6 million in the sixnine months ended JuneSeptember 30, 2021.
NOTE 3 - PROPERTY, PLANT and EQUIPMENT
Property, plant and equipment consists of the following:
In ThousandsIn ThousandsJune 30, 2022December 31, 2021In ThousandsSeptember 30, 2022December 31, 2021
Land and land improvementsLand and land improvements$84,616 $72,897 Land and land improvements$84,616 $72,897 
Construction-in-progressConstruction-in-progress142,171 92,414 Construction-in-progress158,403 92,414 
Buildings and improvementsBuildings and improvements220,338 217,985 Buildings and improvements218,579 217,985 
Machinery and equipmentMachinery and equipment376,687 362,996 Machinery and equipment394,704 362,996 
Furniture and fixturesFurniture and fixtures14,056 13,805 Furniture and fixtures14,056 13,805 
Property, plant and equipment, gross Property, plant and equipment, gross837,868 760,097  Property, plant and equipment, gross870,358 760,097 
Accumulated depreciationAccumulated depreciation(276,663)(265,181)Accumulated depreciation(282,532)(265,181)
Property, plant and equipment, netProperty, plant and equipment, net$561,205 $494,916 Property, plant and equipment, net$587,826 $494,916 
In the secondthird quarter of 2022, depreciation expense was $6.3$6.5 million, compared to $5.7$6.1 million in the secondthird quarter of 2021. Depreciation expense was $12.5$19.0 million in the sixnine months ended JuneSeptember 30, 2022, compared to $11.0$17.1 million in the sixnine months ended JuneSeptember 30, 2021.
6


NOTE 4 – ACCRUED LIABILITIES
Accrued liabilities consist of the following:
In ThousandsIn ThousandsJune 30, 2022December 31, 2021In ThousandsSeptember 30, 2022December 31, 2021
Sales rebates payableSales rebates payable$39,477 $40,657 Sales rebates payable$42,121 $40,657 
SAR LiabilitySAR Liability11,016 22,095 SAR Liability14,089 22,095 
Property taxes payableProperty taxes payable2,467 5,018 Property taxes payable3,766 5,018 
Accrued salariesAccrued salaries11,685 4,778 Accrued salaries15,459 4,778 
Other accrued liabilitiesOther accrued liabilities8,137 6,199 Other accrued liabilities7,605 6,199 
Total accrued liabilitiesTotal accrued liabilities$72,782 $78,747 Total accrued liabilities$83,040 $78,747 

NOTE 5 – INCOME TAXES
Income taxes were accrued at an effective rate of 22.3%22.4% in the secondthird quarter of 2022 versus 22.5%22.7% in the secondthird quarter of 2021, consistent with the Company’s estimated liabilities. 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 6 – 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 awards, 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, Quarter Ended September 30,Nine Months Ended September 30,
In ThousandsIn Thousands2022202120222021In Thousands2022202120222021
Numerator:Numerator:Numerator:
Net incomeNet income$210,538 $183,053 $372,070 $224,242 Net income$191,773 $175,538 $563,843 $399,780 
Denominator:Denominator:Denominator:
Denominator for basic earnings per share – weighted average sharesDenominator for basic earnings per share – weighted average shares19,419 20,581 19,709 20,574 Denominator for basic earnings per share – weighted average shares18,968 20,421 19,459 20,523 
Effect of dilutive securities:Effect of dilutive securities:Effect of dilutive securities:
Employee stock awardsEmployee stock awards247 182 273 167 Employee stock awards275 208 274 180 
Denominator for diluted earnings per share – weighted average sharesDenominator for diluted earnings per share – weighted average shares19,666 20,763 19,982 20,741 Denominator for diluted earnings per share – weighted average shares19,243 20,629 19,733 20,703 

There were no anti-dilutive employee stock awards excluded from the determination of diluted earnings per common and common equivalent shares for the secondthird quarter or sixnine months ended JuneSeptember 30, 2022 or 2021.2022. The weighted average number of employee stock awards excluded from the determination of diluted earnings per common and common equivalent share for the third quarter of 2021 was 49.The weighted average number of employee stock awards excluded from the determination of diluted earnings per common and common equivalent share for the nine months ended September 30, 2021 was 16.Such awards were anti-dilutive for their respective periods.
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NOTE 7 – DEBT
On February 9, 2021, the Company terminated its previous credit agreement and entered into a new Credit Agreement (the “2021 Credit Agreement”) with 2two banks, Bank of America, N.A., as administrative agent and letter of credit issuer, and Wells Fargo Bank, National Association, as syndication agent. The 2021 Credit Agreement extends through February 9, 2026 and provides for maximum borrowings of $200.0 million. At our request, and subject to certain conditions, the commitments under the 2021 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.
The 2021 Credit Agreement contains provisions to replace LIBOR with a replacement rate as described in the 2021 Credit Agreement. On October 20, 2022, the Company entered into the First Amendment to the 2021 Credit Agreement which replaced LIBOR with BSBY as permitted under the 2021 Credit Agreement. Borrowings under the line of credit bear interest, at the Company’s option, at either
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(1) LIBORBSBY plus a margin that varies from 1.000% to 1.875% depending upon the Leverage Ratio (as defined in the 2021 Credit Agreement), or (2) the base rate (which is the highest of the federal funds rate plus 0.5%, the prime rate, or LIBORBSBY plus 1.0%) plus 0% to 0.375% (depending upon the Leverage Ratio). A commitment fee ranging from 0.200% to 0.325% (depending upon the Leverage Ratio) is payable on the unused line of credit. At JuneAs of September 30, 2022, there were no borrowings outstanding under the 2021 Credit Agreement, and letters of credit outstanding in the amount of $0.4 million left $199.6 million of credit available under the 2021 Credit Agreement. Obligations under the 2021 Credit Agreement are the only contractual borrowing obligations or commercial borrowing commitments of the Company. The foregoing description of the First Amendment to the 2021 Credit Agreement contains provisionsis not complete and is qualified in its entirety by reference to replace LIBOR with a replacement rate as described inthe full text of the First Amendment to the 2021 Credit Agreement.Agreement, which is attached hereto as Exhibit 10.1 and is incorporated by reference herein.
Obligations under the 2021 Credit Agreement are unsecured and contain customary covenants and events of default. The Company was in compliance with the covenants as of and for the period ended JuneSeptember 30, 2022.
NOTE 8 – 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 from time to time in open market or private transactions, at the Company's discretion. This authorization originally expired on December 31, 2007, and the Company’s Board of Directors has authorized several increases and annual extensions of this stock repurchase program, most recently on February 14,August 1, 2022, authorizing the repurchase of up to 2,000,000 shares of our common stock. As of JuneSeptember 30, 2022, 891,9781,214,253 shares remained authorized for repurchase through March 31, 2023. The Company repurchased 1,108,0221,893,769 shares of its stock in the sixnine months ended JuneSeptember 30, 2022 compared to zero393,379 shares in the sixnine months ended JuneSeptember 30, 2021.
NOTE 9 - 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.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Encore Wire Corporation is a leading manufacturer of a broad range of copper and aluminum electrical wire and cables, supplying power generation and distribution solutions to meet our customers’ needs today and in the future. The Company focuses on maintaining a low-cost of production while providing exceptional customer service and quickly shipping complete orders coast-to-coast. Our products are proudly made in America at our vertically-integrated, single-site, Texas campus.
As discussed in Note 1, in the notes to the financial statements, the duration or re-emergence of thean outbreak of COVID-19, or any of its ongoing variants, outbreak and their long-term impact on our business remain uncertain. Developments surrounding COVID-19, and any of the ongoing variants, continue to change, and we have limited visibility into the extent to which market demand for our products, as well as sector manufacturing and distribution capacity, will be impacted.
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. 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
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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 raising 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. The tables below highlight the range of closing prices of copper on a per pound basis on the Comex exchange for the periods shown.
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COMEX COPPER CLOSING PRICE 2022
April
2022
May
2022
June
2022
Quarter Ended June 30, 2022Six Months Ended June 30, 2022July
2022
August
2022
September
2022
Quarter Ended September 30, 2022Nine Months Ended September 30, 2022
HighHigh$4.80 $4.35 $4.55 $4.80 $4.93 High$3.62 $3.71 $3.63 $3.71 $4.93 
LowLow4.40 4.11 3.71 3.71 3.71 Low3.21 3.47 3.31 3.21 3.21 
AverageAverage4.64 4.25 4.13 4.33 4.44 Average3.40 3.62 3.48 3.50 4.12 
COMEX COPPER CLOSING PRICE 2021
April
2021
May
2021
June
2021
Quarter Ended June 30, 2021Six Months Ended June 30, 2021July
2021
August
2021
September
2021
Quarter Ended September 30, 2021Nine Months Ended September 30, 2021
HighHigh$4.74 $4.78 $4.66 $4.78 $4.78 High$4.59 $4.43 $4.45 $4.59 $4.78 
LowLow4.00 4.50 4.16 4.00 3.54 Low4.21 4.04 4.09 4.04 3.54 
AverageAverage4.25 4.64 4.40 4.42 4.15 Average4.35 4.29 4.27 4.30 4.20 

The following discussion and analysis relate to factors that have affected the operating results of the Company for the quarters and sixnine months ended JuneSeptember 30, 2022 and 2021. 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, 2021.
Results of Operations
Quarter Ended JuneSeptember 30, 2022 Compared to Quarter Ended JuneSeptember 30, 2021
Net sales were $838.2$762.4 million in the secondthird quarter of 2022 compared to $744.4$716.3 million in the secondthird quarter of 2021. The 12.6%6.4% increase in net sales was due to a 2.7%12.9% increase in thecopper wire unit volume shipped. Unit volume is measured in pounds of copper shipped.contained in the wire shipped during the period. Additionally, aluminum net sales dollars increased from 6.1%9.1% of net sales to 15.0%17.4% of net sales due to an increase in both price and volume shipped.
Cost of goods sold was $517.5$462.9 million, or 61.7%60.7% of net sales, in the secondthird quarter of 2022, compared to $467.1$445.6 million, or 62.7%62.2% of net sales, in the secondthird quarter of 2021. Gross profit increased to $320.8$299.4 million, or 38.3%39.3% of net sales, in the secondthird quarter of 2022 from $277.3$270.8 million, or 37.3%37.8% of net sales, in the secondthird quarter of 2021.
Gross profit percentage for the third quarter of 2022 was 39.3% compared to 37.8% during the third quarter of 2021. The slightaverage selling price of wire per copper pound sold decreased 14.4% in the third quarter of 2022 versus the third quarter of 2021, while the average cost of copper per pound purchased decreased 14.1%. The gradual abatement of copper spreads in the quarter was more than offset by increased aluminum spreads and an overall increase in total volumes shipped resulting in the increased gross profit margin was due mostlyin the third quarter of 2022 compared to the sales and volume increases noted above.third quarter of 2021.
Total raw materials cost as a percentage of sales decreased to 55.1%52.6% in the secondthird quarter of 2022, from 55.9%55.2% in the secondthird quarter of 2021. Overhead costs decreasedincreased to 6.6%8.1% of net sales in the secondthird quarter of 2022, from 6.8%7.0% of net sales in the secondthird quarter of 2021. Overheads contain some fixed and semi-fixed components which do not fluctuate as much as sales dollars fluctuate.
Selling expenses, consisting of commissions and freight, for the secondthird quarter of 2022 were $35.8$34.8 million, or 4.3%4.6% of net sales, compared to $28.9$29.9 million, or 3.9%4.2% of net sales, in the secondthird quarter of 2021. Commissions paid to independent manufacturers’ representatives are paid as a relatively stable percentage of sales dollars and, therefore, exhibited little change as a percentage of sales. Freight costs increased to 1.8%2.0% of net sales in the secondthird quarter of 2022 from 1.5%1.7% of net sales in the secondthird quarter of 2021.2021, driven by increased volumes shipped during the quarter and increased freight rates. General and administrative (“G&A”)
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expenses for the secondthird quarter of 2022 were $14.6$20.5 million, or 1.7%2.7% of net sales, compared to $10.8$14.0 million, or 1.5%1.9% of net sales, in the secondthird quarter of 2021.
SixNine Months Ended JuneSeptember 30, 2022 Compared to SixNine Months Ended JuneSeptember 30, 2021
Net sales for the first sixnine months of 2022 were $1.561$2.324 billion compared to net sales of $1.189$1.905 billion for the first sixnine months of 2021. The 31.4%22.0% increase in net sales was primarily the result of a 21.9%12.5% increase in copper wire sales, driven by an 15.6%4.3% increase in the average selling price of copper wire and a 5.5%7.9% increase in copper wire unit volume shipped. 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 raw material input costs and availability, order specifications and overall product demand in the market. Additionally, aluminum net sales increased from 7.5% of net sales to 14.7% of net sales due to an increase in both price and volume shipped.
Cost of goods sold was $996.8 million,$1.460 billion, or 63.8%62.8% of net sales, in the first sixnine months of 2022, compared to $826.7 million,$1.272 billion, or 69.6%66.8% of net sales, in the first sixnine months of 2021. Gross profit increased to $564.5$864.0 million, or 36.2%37.2% of net sales, in the first sixnine months of 2022 versus $361.8$632.6 million, or 30.4%33.2% of net sales, in the first sixnine months of 2021.
Gross profit percentage for the sixnine months ended JuneSeptember 30, 2022 was 36.2%37.2% compared to 30.4% during33.2% for the same period innine months ended September 30, 2021. The increase in gross profit percentage is primarily due to the average selling price of wire per copper pound sold which
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increased 15.6%4.3% in the sixnine months ended JuneSeptember 30, 2022 when compared toversus the sixnine months ended JuneSeptember 30, 2021, while the average cost of copper per pound purchased increased 10.2%. 1.5% for the same period comparison. The percentage change on sales isincrease in copper spreads on a year-to-date basis, along with increased aluminum spreads over the same period, coupled with an overall increase in total volumes shipped, drove the gross profit margin higher nominal dollar amount than on purchases and, therefore, spreads change on a nominal dollar basis.in the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021.
Due primarily to increasesdecreases in copper costs, and an increase in copper inventory quantities on hand, aidedoffset somewhat by price and volume movements of other materials in the first sixnine months of 2022, LIFO adjustments were recorded, increasingdecreasing cost of sales by $1.4$23.0 million. During the same period in 2021, LIFO adjustments were recorded, increasing cost of sales by $46.0$46.6 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 sixnine months of 2022 increased to $66.9$101.7 million, or 4.3%4.4% of net sales, compared to $49.5$79.4 million, or 4.2% of net sales, in the same periodfirst nine months of 2021. 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 $9.8$11.8 million in concert with the increased sales dollars. Freight costs for the first sixnine months of 2022 were 1.9% of net sales, compared to 1.8% of net sales for the first sixnine months of 2021.2021, driven by increased volumes shipped during 2022. General and administrative expenses were $19.7$40.2 million, or 1.3%1.7% of net sales, in the first sixnine months of 2022 compared to $21.3$35.3 million, or 1.8%1.9% of net sales, in the first six months of 2021. The G&A decrease was driven by decreased stock compensation expense driven by the mark-to-market accounting on stock appreciation rights. The net stock compensation expense decreased $4.9 million in the first six months of 2022 versus the first sixnine months of 2021.
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. We believe that the Company has sufficient liquidity, and will continue to have sufficient liquidity beyond the short-term outlook, and do not believe COVID-19, or any of the ongoing variants, will materially impact our liquidity, but we continue to assess COVID-19, and any ongoing variants, and their impact on our business, including on our customer base and suppliers.
For more information on the Company’s revolving credit facility, see Note 7 to the Company’s financial statements included in Item 1 to this report, which is incorporated herein by reference.
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Cash provided by operating activities was $238.3$466.3 million in the first sixnine months of 2022 compared to cash provided of $34.3$230.9 million in the first sixnine months of 2021. The following changes in components of cash flow from operations were notable. The Company had net income of $372.1$563.8 million in the first sixnine months of 2022 compared to net income of $224.2$399.8 million in the first sixnine months of 2021. Accounts receivable increased $115.0$70.5 million in the first sixnine months of 2022 compared to increasing $299.9$261.9 million in the first sixnine months of 2021. Accounts receivable generally fluctuates 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 net increased $20.6$35.4 million in the first sixnine months of 2022 compared to decreasing $4.4$1.6 million in the first sixnine months of 2021. Trade accounts payable and accrued liabilities negatively impacted cash by $15.1$9.8 million in the first sixnine months of 2022 versus favorably impacting cash by $47.2$50.7 million in the first sixnine months of 2021. In the first sixnine months of 2022, changes in current and deferred taxes favorably impacted cash by $6.0$8.1 million versus $41.4$16.5 million of favorable impact in the first sixnine months of 2021. These changes in cash flow were the primary drivers of the $204.0$235.4 million increase in positive cash flow provided by operations in the first sixnine months of 2022 compared to the first sixnine months of 2021.
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Cash used in investing activities increased to $75.2$105.5 million in the first sixnine months of 2022 from $58.6$85.1 million in the first sixnine months of 2021 due to higher capital expenditures on plant and equipment, among other factors.equipment.
Cash used in financing activities in the first sixnine months of 2022 consisted of $131.9$225.2 million paid to purchase our own stock, $0.8$1.2 million of cash dividends paid, and $0.2 million of proceeds from exercised stock options. These activities in cash flow used $132.5$226.2 million cash in financing activities for the first sixnine months of 2022 compared to $1.0$34.1 million used in the first sixnine months of 2021. For the quarter and sixnine months ended JuneSeptember 30, 2022 and 2021, the Company did not access its revolving line of credit.
The Company’s cash balance was $469.5$573.6 million at JuneSeptember 30, 2022 compared to $157.9$294.9 million at JuneSeptember 30, 2021.
During the remainder of 2022, 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 the previously-announced expansion plans which remain on schedule. The repurposing of our vacated distribution center to expand manufacturing capacity and extend our market reach was substantially completed in the second quarter of 2022. The incremental investments announced in July 2021 continue in earnest, focused on broadening our position as a low-cost, sustainable manufacturer in the sector and increasing manufacturing capacity to drive growth. Capital spending in 2022 through 2024 will expand vertical integration in our manufacturing processes to reduce costs as well as modernize select wire manufacturing facilities to increase capacity and efficiency, and improve our position as a sustainable and environmentally responsible leadercompany in our industry. Total capital expenditures were $118 million in 2021. We expect total capital expenditures to range from $150$140 - $170$150 million in 2022, $150 - $170 million in 2023, and $80 - $100 million in 2024. We expect to continue to fund these investments with existing cash reserves and operating cash flows.
Critical Accounting Estimates and Policies
Management’s discussion and analysis of its financial condition and results of operations are based upon the Company’s financial statements, which have been prepared in accordance with U.S. GAAP. The Company’s unaudited financial statements are impacted by the accounting policies used and the estimates and assumptions made by management in their preparation. See Note 1 to the notes to the financial statements for information on the Company’s significant accounting policies.
As of JuneSeptember 30, 2022, there have been no significant changes to the Company’s critical accounting policies and related estimates previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
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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. Forward-looking statements can be identified by words such as: “anticipate”, “intend”, “plan”, “goal”, “seek”, “believe”, “project”, “estimate”, “expect”, “strategy”, “future”, “likely”, “may”, “should”, “will” and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, 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 anticipated, estimated or projected. Therefore, you should not rely on any of these forward-looking statements. Examples of such uncertainties and risks include, but are not limited to, statements about the pricing environment of copper, aluminum and other raw materials, the duration, magnitude and impact of the ongoing COVID-19 global pandemic, along with any ongoing variants, our order fill rates, profitability and stockholder value, payment of future dividends, future purchases of stock, the impact of competitive pricing and other risks detailed from time to time in the Company’s reports filed with the SEC. Actual results may vary materially from those anticipated. Any forward-looking statement made by us in this report is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. 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, 2021, 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, 2021.
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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 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.
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PART II – OTHER INFORMATION
Item 1. Legal Proceedings.
For information on the Company’s legal proceedings, see Note 9 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, 2021.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Note 8 to the Company’s financial statements included in Item 1 to this report is hereby incorporated herein by reference.
The following table provides information relating to our purchases of shares of our common stock during the three months ended JuneSeptember 30, 2022.
(a)(b)(c)(d)
PeriodTotal Number of Shares PurchasedAverage Price Paid Per ShareTotal Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1)
April 2022— $— — 1,499,083 
May 2022488,777 123.87 488,777 1,010,306 
June 2022118,328 109.25 118,328 891,978 
607,105 121.02 607,105 
(a)(b)(c)(d)
PeriodTotal Number of Shares PurchasedAverage Price Paid Per ShareTotal Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1)
July 2022— $— — 891,978 
August 2022— — — 2,000,000 
September 2022785,747 118.86785,747 1,214,253 
785,747 $118.86 785,747 
(1) 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 from time to time in open market or private transactions, at the Company's discretion. This authorization originally expired on December 31, 2007, and the Company’s Board of Directors has authorized several increases and annual extensions of this stock repurchase program, most recently on February 14,August 1, 2022, authorizing the repurchase of up to 2,000,000 shares of our common stock. As of JuneSeptember 30, 2022, 891,9781,214,253 shares remained authorized for repurchase through March 31, 2023. The Company repurchased 1,108,0221,893,769 shares of its stock in the sixnine months ended JuneSeptember 30, 2022 compared to zero393,379 shares in the sixnine months ended JuneSeptember 30, 2021.
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Item 6. Exhibits.
Exhibit NumberDescription
3.1
3.2
4.1Form 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).
10.1
31.1
31.2
32.1
32.2
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101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document
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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: JulyOctober 27, 2022/s/ DANIEL L. JONES
Daniel L. Jones
Chairman, President and Chief Executive Officer
Dated: JulyOctober 27, 2022/s/ BRET J. ECKERT
Bret J. Eckert
Vice President-Finance, Treasurer,
Secretary and Chief Financial Officer

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