Encore Wire (WIRE) 8-K Encore Wire Reports Third Quarter Results

EXHIBIT 99.1

Encore Wire Corporation
1410 Millwood Road
McKinney, Texas 75069
972-562-9473

PRESS RELEASE

	October 23, 2007
Contact:	Frank J. Bilban Vice President & CFO

For Immediate Release

ENCORE WIRE REPORTS THIRD QUARTER RESULTS

MCKINNEY, TX — Encore Wire Corporation (NASDAQ Global Select: WIRE) today announced results for the third quarter of 2007.

Net sales for the quarter ended September 30, 2007 were $308.5 million compared to $372.9 million during the third quarter of 2006. Net income for the third quarter of 2007 was $5.8 million versus $35.8 million in the third quarter of 2006. Fully diluted net earnings per common share were $0.24 in the third quarter of 2007 versus $1.51 in the third quarter of 2006.

Net sales for the first nine months of 2007 were $902.8 million compared to $987.0 million during the first nine months of 2006. Net income for the first nine months of 2007 was $31.9 million versus $109.0 million in the first nine months of 2006. Fully diluted net income per common share was $1.35 in the first nine months of 2007 versus $4.60 in the first nine months of 2006.

On a sequential quarter comparison, net sales for the third quarter of 2007 were $308.5 million versus $333.6 million during the second quarter of 2007. Net income for the third quarter of 2007 was $5.8 million versus $19.7 million in the second quarter of 2007. Fully diluted net income per common share was $0.24 in the third quarter of 2007 versus $0.83 in the second quarter of 2007.

Commenting on the results, Daniel L. Jones, President and Chief Executive Officer of Encore Wire Corporation, said, “We are pleased to announce a profitable quarter in the midst of the tough competitive environment we are experiencing in our industry. The building wire industry has endured low margins in the last four quarters, having abated only in the second quarter of 2007. Despite strong copper prices, margins in the building wire industry continue to be compressed. Certain competitors continue to respond to the slowdown in residential construction by cutting wire prices in an attempt to maintain market shares, compressing margins below our expectations at this level of copper prices. Our unit volume shipped on a year to date basis is holding up fairly well, despite the slowdown in residential construction. Residential wire unit sales are down 15.2% in the first three quarters of 2007 versus the same period in 2006, but commercial wire unit sales are up 0.4% and armored cable unit sales are up 843.2%. As a result, our total unit volume shipped, measured in pounds of copper contained in the wire, is down only 1.7% in the first three quarters of 2007 versus the first three quarters of 2006. Encore’s first armored cable shipments were made in the third quarter of 2006. We believe we have sacrificed some unit volume in 2007 as we try to sell in a disciplined manner as one of the leaders in the industry and avoid cutting prices to obtain volume.

We have other developments of note. The only long-term debt we have as of September 30, 2007, is $100 million in long-term notes due in 2011, with our $200 million revolving line of credit paid down to zero. In addition, we have $59.2 million in cash as of September 30, 2007. Our balance sheet has a conservative 27.9% debt to equity ratio. We also declared our fourth consecutive quarterly cash dividend during the third quarter of 2007.

We will continue to focus on our order fill rates and product offerings featuring commercial wire in true colors and our new armored cable line. Our low cost structure and strong balance sheet have enabled us to withstand tough periods in the past, and we believe we will emerge stronger if market conditions improve. We will continue to manage the Company to grow sales and earnings while maintaining our historically strong and conservative balance sheet. We also 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
1329 Millwood Road
McKinney, Texas 75069
(972) 562-9473
Condensed Consolidated Balance Sheets
(In Thousands)
(Unaudited)

	September 30,			December 31,
	2007			2006
ASSETS
Current Assets
Cash	$	59,243		$	24,603
Receivables, net		246,502			214,963
Inventories		89,286			103,947
Prepaid Expenses and Other		12,423			27,537
Total Current Assets		407,454			371,050
Property, Plant and Equipment, net		114,479			102,987
Other Assets		120			120
Total Assets	$	522,053		$	474,157
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts Payable	$	24,951		$	13,413
Accrued Liabilities and Other		29,546			23,772
Total Current Liabilities		54,497			37,185
Long Term Liabilities
Note Payable		99,676			98,974
Other Long Term Liabilities		324			1,026
Non-Current Deferred Income Taxes		9,031			9,851
Total Long Term Liabilities		109,031			109,851
Total Liabilities		163,528			147,036
Stockholders’ Equity
Common Stock		261			260
Additional Paid in Capital		41,749			40,849
Treasury Stock		(15,275	)		(15,275	)
Retained Earnings		331,790			301,287
Total Stockholders’ Equity		358,525			327,121
Total Liabilities and Stockholders’ Equity	$	522,053		$	474,157

Encore Wire Corporation
1329 Millwood Road
McKinney, Texas 75069
(972) 562-9473
Condensed Consolidated Statements of Income
(In Thousands)
(Unaudited)

	Quarter Ended September 30,								Nine Months Ended September 30,
	2007				2006				2007				2006
Net Sales	$	308,481	100.0	%	$	372,915	100.0	%	$	902,845	100.0	%	$	987,011	100.0	%
Cost of Sales		282,962	91.7	%		298,649	80.1	%		805,020	89.2	%		766,520	77.7	%
Gross Profit		25,519	8.3	%		74,266	19.9	%		97,825	10.8	%		220,491	22.3	%
Selling, General and Administrative Expenses		15,324	5.0	%		16,589	4.4	%		45,739	5.1	%		46,760	4.7	%
Operating Income		10,195	3.3	%		57,677	15.5	%		52,086	5.8	%		173,731	17.6	%
Net Interest & Other Expense		922	0.3	%		2,530	0.7	%		3,227	0.4	%		5,608	0.6	%
Income before Income Taxes		9,273	3.0	%		55,147	14.8	%		48,859	5.4	%		168,123	17.0	%
Income Taxes		3,518	1.1	%		19,386	5.2	%		16,955	1.9	%		59,166	6.0	%
Net Income	$	5,755	1.9	%	$	35,761	9.6	%	$	31,904	3.5	%	$	108,957	11.0	%
Basic Earnings Per Share	$	0.25			$	1.54			$	1.37			$	4.69
Diluted Earnings Per Share	$	0.24			$	1.51			$	1.35			$	4.60
Weighted Average Number of Common and Common Equivalent Shares Outstanding:
-Basic		23,362				23,267				23,344				23,248
-Diluted		23,708				23,680				23,706				23,666
Dividend Paid per Share	$	0.02			$	—			$	0.06			$	—