Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'WIRE | ' |
Entity Registrant Name | 'ENCORE WIRE CORP | ' |
Entity Central Index Key | '0000850460 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 20,690,802 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | |
Cash and cash equivalents | $16,145 | $33,883 | [1] |
Accounts receivable, net of allowance of $2,065 and $2,064 | 236,933 | 197,980 | [1] |
Inventories | 72,613 | 63,656 | [1] |
Deferred income taxes | 2,894 | 5,790 | [1] |
Prepaid expenses and other | 2,004 | 5,541 | [1] |
Total current assets | 330,589 | 306,850 | [1] |
Property, plant and equipment-at cost: | ' | ' | |
Land and land improvements | 47,744 | 18,466 | [1] |
Construction-in-progress | 11,543 | 25,434 | [1] |
Buildings and improvements | 90,367 | 90,790 | [1] |
Machinery and equipment | 220,913 | 196,838 | [1] |
Furniture and fixtures | 8,525 | 8,426 | [1] |
Total property, plant and equipment | 379,092 | 339,954 | [1] |
Accumulated depreciation | -185,600 | -175,030 | [1] |
Property, plant and equipment - net | 193,492 | 164,924 | [1] |
Other assets | 1,616 | 693 | [1] |
Total assets | 525,697 | 472,467 | [1] |
Current liabilities: | ' | ' | |
Trade accounts payable | 30,863 | 20,112 | [1] |
Accrued liabilities | 25,966 | 23,438 | [1] |
Income taxes payable | 3,578 | 1,807 | [1] |
Total current liabilities | 60,407 | 45,357 | [1] |
Non-current deferred income taxes | 19,895 | 16,946 | [1] |
Commitments and contingencies | ' | ' | [1] |
Stockholders' equity: | ' | ' | |
Preferred stock, $.01 par value: Authorized shares - 2,000,000; none issued | ' | ' | [1] |
Common stock, $.01 par value: Authorized shares - 40,000,000; Issued shares - 26,621,103 and 26,597,753 | 266 | 266 | [1] |
Additional paid-in capital | 49,071 | 48,298 | [1] |
Treasury stock, at cost - 5,934,651 and 5,934,651 shares | -88,134 | -88,134 | [1] |
Retained earnings | 484,192 | 449,734 | [1] |
Total stockholders' equity | 445,395 | 410,164 | [1] |
Total liabilities and stockholders' equity | $525,697 | $472,467 | [1] |
[1] | The consolidated balance sheet at December 31, 2012, as presented, is derived from the audited consolidated financial statements at that date. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, except Share data, unless otherwise specified | |||
Statement Of Financial Position [Abstract] | ' | ' | |
Allowance for accounts receivable | $2,065 | $2,064 | [1] |
Preferred stock, par value | $0.01 | $0.01 | [1] |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 | [1] |
Preferred stock, shares issued | ' | ' | [1] |
Common stock, par value | $0.01 | $0.01 | [1] |
Common stock, shares authorized | 40,000,000 | 40,000,000 | [1] |
Common stock, shares issued | 26,621,103 | 26,597,753 | [1] |
Treasury stock, shares | 5,934,651 | 5,934,651 | [1] |
[1] | The consolidated balance sheet at December 31, 2012, as presented, is derived from the audited consolidated financial statements at that date. |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $309,927 | $269,152 | $864,738 | $814,348 |
Cost of goods sold | 272,023 | 245,016 | 762,382 | 746,360 |
Gross profit | 37,904 | 24,136 | 102,356 | 67,988 |
Selling, general, and administrative expenses | 17,126 | 15,726 | 48,485 | 46,130 |
Operating income | 20,778 | 8,410 | 53,871 | 21,858 |
Net interest and other (income) expenses | -10 | -4 | -44 | -32 |
Income before income taxes | 20,788 | 8,414 | 53,915 | 21,890 |
Provision for income taxes | 6,986 | 2,887 | 18,216 | 7,300 |
Net income | $13,802 | $5,527 | $35,699 | $14,590 |
Net income per common and common equivalent share - basic | $0.67 | $0.27 | $1.73 | $0.66 |
Weighted average common and common equivalent shares - basic | 20,680 | 20,657 | 20,663 | 22,022 |
Net income per common and common equivalent share - diluted | $0.66 | $0.27 | $1.72 | $0.66 |
Weighted average common and common equivalent shares - diluted | 20,768 | 20,712 | 20,739 | 22,070 |
Cash dividends declared per share | $0.02 | $0.02 | $0.06 | $0.06 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | |
OPERATING ACTIVITIES | ' | ' | |
Net income | $35,699 | $14,590 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | |
Depreciation and amortization | 10,947 | 10,834 | |
Deferred income taxes | 5,845 | -4,248 | |
Other | 214 | 526 | |
Changes in operating assets and liabilities: | ' | ' | |
Accounts receivable | -38,954 | -8,187 | |
Inventories | -8,957 | -3,558 | |
Trade accounts payable and accrued liabilities | 13,279 | 9,529 | |
Other assets and liabilities | 2,579 | -14,084 | |
Current income taxes receivable / payable | 1,824 | 1,137 | |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 22,476 | 6,539 | |
INVESTING ACTIVITIES | ' | ' | |
Purchases of property, plant and equipment | -39,465 | -33,019 | |
Proceeds from sale of assets | ' | 17 | |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | -39,465 | -33,002 | |
FINANCING ACTIVITIES | ' | ' | |
Proceeds from issuances of common stock | 439 | 132 | |
Purchase of treasury stock | ' | -66,638 | |
Dividends paid | -1,241 | -1,350 | |
Excess tax benefits of options exercised | 53 | 9 | |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | -749 | -67,847 | |
Net increase (decrease) in cash and cash equivalents | -17,738 | -94,310 | |
Cash and cash equivalents at beginning of period | 33,883 | [1] | 112,298 |
Cash and cash equivalents at end of period | $16,145 | $17,988 | |
[1] | The consolidated balance sheet at December 31, 2012, as presented, is derived from the audited consolidated financial statements at that date. |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
BASIS OF PRESENTATION | ' |
NOTE 1 – BASIS OF PRESENTATION | |
The unaudited consolidated financial statements of Encore Wire Corporation (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles 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. generally accepted accounting principles 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 consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. |
INVENTORIES
INVENTORIES | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
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: | |||||||||
September 30, | December 31, | ||||||||
In Thousands of Dollars | 2013 | 2012 | |||||||
Raw materials | $ | 19,869 | $ | 26,013 | |||||
Work-in-process | 26,776 | 22,309 | |||||||
Finished goods | 90,704 | 88,750 | |||||||
Total | 137,349 | 137,072 | |||||||
Adjust to LIFO cost | (64,736 | ) | (73,416 | ) | |||||
Lower of cost or market adjustment | — | — | |||||||
Inventory, net | $ | 72,613 | $ | 63,656 | |||||
LIFO pools are established at the end of each fiscal year. During the first three quarters of every year, LIFO calculations are based on the inventory levels and costs at that time. Accordingly, interim LIFO balances will fluctuate up and down in tandem with inventory levels and costs. | |||||||||
During the first quarter of 2013, the Company liquidated a portion of the layer established in 2011. During the second and third quarters of 2013 that layer was replenished. As a result, under the LIFO method, this inventory layer was replenished at historical costs that were higher than current costs, which positively impacted net income for the third quarter of 2013 by $903,000, offsetting the $903,000 negative net impact from the liquidation in the first six months of 2013. During the first six months of 2012, the Company liquidated a portion of the layer established in 2011. During the third quarter of 2012, this layer was replenished. As a result, under the LIFO method, this inventory layer was replenished at historical costs that were higher than current costs, which positively impacted net income for the third quarter of 2012 by $383,000, offsetting the $383,000 negative impact from the liquidation in the second quarter of 2012. |
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
ACCRUED LIABILITIES | ' | ||||||||
NOTE 3 – ACCRUED LIABILITIES | |||||||||
Accrued liabilities consist of the following: | |||||||||
September 30, | December 31, | ||||||||
In Thousands of Dollars | 2013 | 2012 | |||||||
Sales volume discounts payable | $ | 15,931 | $ | 13,940 | |||||
Property taxes payable | 2,395 | 2,937 | |||||||
Commissions payable | 2,246 | 1,768 | |||||||
Accrued salaries | 4,031 | 4,235 | |||||||
Other accrued liabilities | 1,363 | 558 | |||||||
Total accrued liabilities | $ | 25,966 | $ | 23,438 | |||||
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
NOTE 4 – INCOME TAXES | |
Income taxes were accrued at an effective rate of 33.6% in the third quarter of 2013 versus 34.3% in the third quarter of 2012, consistent with the Company’s estimated liabilities. The decrease in the effective rate was due to a moderate change in the proportional effects of permanent items on the effective rate. For the nine months ended September 30, the Company’s effective tax rate was approximately 33.8% in 2013 and 33.3% in 2012. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
EARNINGS PER SHARE | ' | ||||||||
NOTE 5 – EARNINGS PER SHARE | |||||||||
Net earnings (loss) 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 options, treated as common stock equivalents, is calculated using the treasury stock method. | |||||||||
The following table sets forth the computation of basic and diluted net earnings (loss) per share: | |||||||||
Quarters Ended | |||||||||
September 30, | September 30, | ||||||||
In Thousands | 2013 | 2012 | |||||||
Numerator: | |||||||||
Net income (loss) | $ | 13,802 | $ | 5,527 | |||||
Denominator: | |||||||||
Denominator for basic earnings per share – weighted average shares | 20,680 | 20,657 | |||||||
Effect of dilutive securities: | |||||||||
Employee stock options | 88 | 55 | |||||||
Denominator for diluted earnings per share – weighted average shares | 20,768 | 20,712 | |||||||
Weighted average employee stock options excluded from the determination of diluted earnings per share for the third quarter was zero in 2013 and 193,000 in 2012. Such options were anti-dilutive for the respective periods. | |||||||||
The following table sets forth the computation of basic and diluted net earnings (loss) per share: | |||||||||
Nine Months Ended | |||||||||
September 30, | September 30, | ||||||||
In Thousands | 2013 | 2012 | |||||||
Numerator: | |||||||||
Net income (loss) | $ | 35,699 | $ | 14,590 | |||||
Denominator: | |||||||||
Denominator for basic earnings per share – weighted average shares | 20,663 | 22,022 | |||||||
Effect of dilutive securities: | |||||||||
Employee stock options | 76 | 48 | |||||||
Denominator for diluted earnings per share – weighted average shares | 20,739 | 22,070 | |||||||
The number of weighted average employee stock options excluded from the determination of diluted earnings per share for the nine months ended September 30 was 127,000 in 2013 and 175,000 in 2012. Such options were anti-dilutive for the respective periods. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
DEBT | ' |
NOTE 6 – DEBT | |
The Company is party to a Credit Agreement with two banks, Bank of America, N.A., as administrative agent and letter of credit issuer, and Wells Fargo Bank, National Association as syndication agent (the “Credit Agreement”). The Credit Agreement extends through October 1, 2017, and provides for maximum borrowings of the lesser of $150.0 million or the amount of eligible accounts receivable plus the amount of eligible finished goods and raw materials, less any reserves established by the banks. Additionally, at our request and subject to certain conditions, the commitments under the 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 calculated maximum borrowing amount available at September 30, 2013, as computed under the Credit Agreement, was $149.5 million. Borrowings under the line of credit bear interest, at the Company’s option, at either (1) LIBOR plus a margin that varies from 0.875% to 1.75% depending upon the Leverage Ratio (as defined in the Credit Agreement), or (2) the base rate (which is the highest of the federal funds rate plus 0.5%, the prime rate, or LIBOR plus 1.0%) plus 0% to 0.25% (depending upon the Leverage Ratio). A commitment fee ranging from 0.15% to 0.30% (depending upon the Leverage Ratio) is payable on the unused line of credit. At September 30, 2013, there were no borrowings outstanding under the Credit Agreement. Obligations under the Credit Agreement are the only contractual borrowing obligations or commercial borrowing commitments of the Company. | |
Obligations under the Credit Agreement are unsecured and contain customary covenants and events of default. The Company was in compliance with the covenants as of September 30, 2013. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | ' |
STOCKHOLDERS' EQUITY | ' |
NOTE 7 – STOCKHOLDERS’ EQUITY | |
On November 10, 2006, the Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to 1,000,000 shares of its common stock through December 31, 2007 on the open market or through privately negotiated transactions at prices determined by the President of the Company. The Company’s Board of Directors has subsequently authorized increases and annual extensions of this stock repurchase program. As of September 30, 2013, the repurchase authorization had 1,225,750 shares remaining authorized through March 31, 2014. The Company did not repurchase any shares of its stock in the first nine months of 2013. On May 14, 2012, the Company repurchased 2,774,250 shares of common stock owned by Capital Southwest Venture Corporation at an aggregate purchase price of $66,637,485, based on a price of $24.02 per share. Appropriate consents to the repurchase were also obtained from lenders under the Company’s Financing Agreement. The repurchase represented approximately 11.8% of the outstanding shares of the Company as of the purchase date and was the only repurchase in the first nine months of 2012. Other than net income, there was no material change in stockholders equity during the quarter and nine months ended September 30, 2013. |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
CONTINGENCIES | ' |
NOTE 8 – CONTINGENCIES | |
On July 7, 2009, Southwire Company, a Delaware corporation (“Southwire”), filed a complaint for patent infringement against the Company and Cerro Wire, Inc. (“Cerro”) in the United States District Court for the Eastern District of Texas. In the complaint, Southwire alleged that the Company infringed one or more claims of United States Patent No. 7,557,301 (the “’301 patent”), entitled “Method of Manufacturing Electrical Cable Having Reduced Required Force for Installation,” by making and selling electrical cables, including the Company’s Super Slick cables. The case has been transferred to the Northern District of Georgia and the parties have agreed to stay it pending reexamination of the ’301 patent by the United States Patent and Trademark Office (the “USPTO”). On June 23, 2011, the USPTO issued an office action in the reexamination finally rejecting all the claims of the ’301 patent. Southwire responded to these final rejections on August 8, 2011 by submitting substantially amended claims. The examiner determined that the amended claims captured patentable subject matter and on September 21, 2011 issued a notice that a reexamination certificate would be issued evidencing the patentability of the amended claims. The reexamination certificate was issued on the ‘301 patent on December 27, 2011. Subsequent to the issuance of the ‘301 reexamination certificate, a new inter partes reexamination proceeding was instituted by Cerro Wire against the reexamined ‘301 patent. At this time all of the claims of the reexamined ‘301 patent have been rejected by the USPTO. This decision is not final. | |
On July 2, 2010, the Company filed a complaint against Southwire in the Northern District of Georgia. The complaint alleged that Southwire was using a deceptively misdescriptive trademark on its SimPull products, and that Southwire had made false statements about the Company’s Slick Wire products. Southwire’s United States Patent No. 7,749,024 (“the ’024 patent”) issued on July 6, 2010. The morning the patent issued, the Company amended its complaint to seek a declaratory judgment that the Company’s Slick Wire products do not infringe the ’024 patent. Later that same day, Southwire filed a separate complaint against the Company and Cerro Wire in the Eastern District of Texas alleging infringement of the ’024 patent. The Company’s complaint against Southwire was stayed by agreement on April 11, 2011. The case will remain stayed until the USPTO issues a certificate of reexamination of the ‘024 patent. The complaint filed by Southwire in the Eastern District of Texas has been voluntarily dismissed and Southwire will have the option to pursue its claims against the Company in the Northern District of Georgia, once the reexamination is completed. On October 8, 2010, the Company filed a request with the USPTO for an inter partes reexamination of the ’024 patent. On November 9, 2010, the USPTO ordered the reexamination of the ’024 patent. In ordering reexamination of Southwire’s ’024 patent, the USPTO determined that the Company’s submission of prior art raised a substantial new question of patentability of the claims of the ’024 patent. On December 3, 2010, the USPTO issued a non-final office action rejecting all of the claims of the ’024 Patent. Southwire filed a response to the non-final office action on February 3, 2011, which included legal arguments and supporting technical declarations. The Company filed its comments to the Southwire response on March 3, 2011, including points and authorities, legal arguments, and supporting technical declarations. On July 9, 2012, the Examiner issued an Action Closing Prosecution (“ACP”) finally rejecting patent claims 4-7 and 9-12 in the reexamination of the ‘024 patent. On August 15, 2012, Southwire filed a response to the ACP, which included extensive proposed claim amendments and arguments supporting the patentability of the proposed amended claims. The Company filed its comments to the Southwire response to the ACP on September 13, 2012, including points and authorities, legal arguments, and a supporting technical declaration. The Examiner refused entry of Southwire’s proposed amendments and maintained the rejection of all the claims under reexamination in a Right of Appeal Notice mailed September 28, 2012. On October 17, 2012 Southwire filed two petitions requesting that the reexamination be reopened or, in the alternative, that the proposed amendments presented in its September 13, 2012 response to ACP be entered into the record. These petitions were denied by the USPTO in a decision mailed April 5, 2013. Southwire filed a Notice of Appeal on October 29, 2012 and its Appellant’s Brief on December 31, 2012, followed by the Company filing its Respondent’s Brief on January 25, 2013. The Examiner’s Brief was mailed on July 16, 2013. Southwire filed its Rebuttal Brief, on August 16, 2013, and the case now stands in front of the Patent Trial and Appeal Board awaiting a decision. | |
The ‘024 patent was also subject to parallel Inter Partes Reexamination Control No. 95/000,594, instituted by Cerro on November 11, 2010 (“the ‘594 reexamination”). The ‘024 patent exam proceeded with the ‘594 reexamination and ultimately all the claims were finally rejected by the Examiner in an ACP mailed August 10, 2012. In response to a right of appeal notice mailed by the Examiner on October 25, 2012, Southwire filed a notice of appeal on November 26, 2012 and filed an appeal brief on January 28, 2013. Southwire’s appeal brief exceeded the page limitations allowed for patent owner’s appeal briefs during reexaminations, and therefore the USPTO mailed a notice of defective appeal brief on February 20, 2013. Even though Southwire was given at least one month to file a corrected appeal brief, Southwire failed to do so. Instead, Southwire filed a petition with the Patent Trial and Appeal Board (“PTAB”) on March 5, 2013, requesting a waiver of the page limit on appeal brief length. On June 24, 2013, the PTAB denied the petition to waive the appeal brief page limit and, since the time limit to file a corrected appeal brief had expired, also dismissed Southwire’s appeal. On July 12, 2013, the Examiner mailed a Notice of Intent to Issue Inter Partes Reexamination Certificate, cancelling all claims of the ‘024 patent. | |
Southwire’s complaints sought unspecified damages and injunctive relief. At this time, all pending litigation between Encore and Southwire has been dismissed or stayed by agreement of the parties. | |
The parties convened on March 21, 2012 and August 27, 2012 for settlement conferences regarding the ‘301 patent lawsuit. Such settlement conferences did not result in any negotiation, agreement, decision or other development that the Company believed is material to such lawsuit. Settlement discussions continue between the parties. | |
The potentially applicable factual and legal issues related to the above claims asserted against the Company have not been resolved. The Company disputes all of Southwire’s claims and alleged damages and intends to vigorously defend the lawsuits and vigorously pursue its own claims against Southwire if and when the litigation resumes. | |
The Company is from time to time involved in litigation, certain other claims and arbitration matters arising in the ordinary course of its business. The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of the probability of a loss and the determination as to whether a loss is reasonably estimable. Any such accruals are reviewed at least quarterly and adjusted to reflect the effects of negotiations, settlements, rulings, advice of legal counsel and technical experts and other information and events pertaining to a particular matter. To the extent there is a reasonable possibility (within the meaning of ASC 450) that probable losses could exceed amounts already accrued, if any, and the additional loss or range of loss is able to be estimated, management discloses the additional loss or range of loss. | |
For matters where the Company has evaluated that a loss is not probable, but is reasonably possible, the Company will disclose an estimate of the possible loss or range of loss or make a statement that such an estimate cannot be made. In some instances, for reasonably possible losses, the Company cannot estimate the possible loss or range of loss. The nature and progression of litigation can make it difficult to predict the impact a particular lawsuit will have on the Company. There are many reasons that the Company cannot make these assessments, including, among others, one or more of the following: the early stages of a proceeding; damages sought that are unspecified, unsupportable, unexplained or uncertain; discovery is incomplete; the complexity of the facts that are in dispute; the difficulty of assessing novel claims; the parties not having engaged in any meaningful settlement discussions; the possibility that other parties may share in any ultimate liability; and/or the often slow pace of litigation. | |
At this time, given the status of the proceedings, the complexities of the facts in dispute and the multiple claims involved, the Company has not concluded that a probable loss exists with respect to the Southwire litigation. Accordingly, no accrual has been made. Additionally, given the aforementioned uncertainties, the Company is unable to estimate any possible loss or range of losses for disclosure purposes. |
INVENTORIES_Tables
INVENTORIES (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories consist of the following: | |||||||||
September 30, | December 31, | ||||||||
In Thousands of Dollars | 2013 | 2012 | |||||||
Raw materials | $ | 19,869 | $ | 26,013 | |||||
Work-in-process | 26,776 | 22,309 | |||||||
Finished goods | 90,704 | 88,750 | |||||||
Total | 137,349 | 137,072 | |||||||
Adjust to LIFO cost | (64,736 | ) | (73,416 | ) | |||||
Lower of cost or market adjustment | — | — | |||||||
Inventory, net | $ | 72,613 | $ | 63,656 | |||||
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
Accrued liabilities consist of the following: | |||||||||
September 30, | December 31, | ||||||||
In Thousands of Dollars | 2013 | 2012 | |||||||
Sales volume discounts payable | $ | 15,931 | $ | 13,940 | |||||
Property taxes payable | 2,395 | 2,937 | |||||||
Commissions payable | 2,246 | 1,768 | |||||||
Accrued salaries | 4,031 | 4,235 | |||||||
Other accrued liabilities | 1,363 | 558 | |||||||
Total accrued liabilities | $ | 25,966 | $ | 23,438 | |||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Computation of Basic and Diluted Net Earnings (Loss) Per Share | ' | ||||||||
The following table sets forth the computation of basic and diluted net earnings (loss) per share: | |||||||||
Quarters Ended | |||||||||
September 30, | September 30, | ||||||||
In Thousands | 2013 | 2012 | |||||||
Numerator: | |||||||||
Net income (loss) | $ | 13,802 | $ | 5,527 | |||||
Denominator: | |||||||||
Denominator for basic earnings per share – weighted average shares | 20,680 | 20,657 | |||||||
Effect of dilutive securities: | |||||||||
Employee stock options | 88 | 55 | |||||||
Denominator for diluted earnings per share – weighted average shares | 20,768 | 20,712 | |||||||
Nine Months Ended | |||||||||
September 30, | September 30, | ||||||||
In Thousands | 2013 | 2012 | |||||||
Numerator: | |||||||||
Net income (loss) | $ | 35,699 | $ | 14,590 | |||||
Denominator: | |||||||||
Denominator for basic earnings per share – weighted average shares | 20,663 | 22,022 | |||||||
Effect of dilutive securities: | |||||||||
Employee stock options | 76 | 48 | |||||||
Denominator for diluted earnings per share – weighted average shares | 20,739 | 22,070 | |||||||
Inventories_Inventories_Detail
Inventories - Inventories (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Inventory Net [Abstract] | ' | ' | |
Raw materials | $19,869 | $26,013 | |
Work-in-process | 26,776 | 22,309 | |
Finished goods | 90,704 | 88,750 | |
Total | 137,349 | 137,072 | |
Adjust to LIFO cost | -64,736 | -73,416 | |
Lower of cost or market adjustment | ' | ' | |
Inventory, net | $72,613 | $63,656 | [1] |
[1] | The consolidated balance sheet at December 31, 2012, as presented, is derived from the audited consolidated financial statements at that date. |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2013 | |
Inventory Disclosure [Abstract] | ' | ' | ' | ' |
Impact of net income under inventory valuation LIFO method | ($903,000) | ($383,000) | $383,000 | $903,000 |
Accrued_Liabilities_Accrued_Li
Accrued Liabilities - Accrued Liabilities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Accrued Liabilities Current [Abstract] | ' | ' | |
Sales volume discounts payable | $15,931 | $13,940 | |
Property taxes payable | 2,395 | 2,937 | |
Commissions payable | 2,246 | 1,768 | |
Accrued salaries | 4,031 | 4,235 | |
Other accrued liabilities | 1,363 | 558 | |
Total accrued liabilities | $25,966 | $23,438 | [1] |
[1] | The consolidated balance sheet at December 31, 2012, as presented, is derived from the audited consolidated financial statements at that date. |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective tax rate | 33.60% | 34.30% | 33.80% | 33.30% |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic And Diluted Net Earnings (Loss) Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator: | ' | ' | ' | ' |
Net income (loss) | $13,802 | $5,527 | $35,699 | $14,590 |
Denominator: | ' | ' | ' | ' |
Denominator for basic earnings per share - weighted average shares | 20,680 | 20,657 | 20,663 | 22,022 |
Effect of dilutive securities: | ' | ' | ' | ' |
Employee stock options | 88 | 55 | 76 | 48 |
Denominator for diluted earnings per share - weighted average shares | 20,768 | 20,712 | 20,739 | 22,070 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share Reconciliation [Abstract] | ' | ' | ' | ' |
Weighted average employee stock options excluded from the determination of diluted earnings per share | 0 | 193,000 | 127,000 | 175,000 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Bank | |
Credit Facility [Line Items] | ' |
Number of banks to which Company is party to a Credit Agreement | 2 |
Credit Agreement expiration date | 1-Oct-17 |
Feature of financial agreement | 'Maximum borrowings of the lesser of $150.0 million or the amount of eligible accounts receivable plus the amount of eligible finished goods and raw materials, less any reserves established by the banks. |
Available increase in borrowings under Credit Agreement | $100,000,000 |
Calculated maximum borrowings | 150,000,000 |
Calculated maximum borrowing amount available in current year | 149,500,000 |
Outstanding borrowings | $0 |
Credit Agreement [Member] | ' |
Credit Facility [Line Items] | ' |
Line of credit facility, interest rate description | 'LIBOR plus a margin that varies from 0.875% to 1.75% depending upon the Leverage Ratio (as defined in the Credit Agreement), or (2) the base rate (which is the highest of the federal funds rate plus 0.5%, the prime rate, or LIBOR plus 1.0%) plus 0% to 0.25% (depending upon the Leverage Ratio). |
Percentage of federal funds rate | 'Highest of the federal funds rate plus 0.5%, the prime rate, or LIBOR plus 1.0% |
Minimum [Member] | Credit Agreement [Member] | ' |
Credit Facility [Line Items] | ' |
Debt instrument basis spread on variable rate | 0.88% |
Percentage of commitment fee | 0.15% |
Debt instrument basis spread on base rate | 0.00% |
Maximum [Member] | Credit Agreement [Member] | ' |
Credit Facility [Line Items] | ' |
Debt instrument basis spread on variable rate | 1.75% |
Percentage of commitment fee | 0.30% |
Debt instrument basis spread on base rate | 0.25% |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | |
14-May-12 | Sep. 30, 2013 | Nov. 10, 2006 | |
Equity [Abstract] | ' | ' | ' |
Stock authorized to be repurchased under share repurchase program | ' | ' | 1,000,000 |
Repurchase of common stock authorized remaining | ' | 1,225,750 | ' |
Repurchased shares | 2,774,250 | 0 | ' |
Aggregate purchase price of repurchased shares | $66,637,485 | ' | ' |
Share repurchased per share price | $24.02 | ' | ' |
Share repurchased, percentage of outstanding stock | 11.80% | ' | ' |