EXHIBIT 99.1
[Encore Wire Corporation Logo Omitted]
Encore Wire Corporation Contact: Frank J. Bilban
1410 Millwood Road Vice President & CFO
McKinney, Texas 75069
972-562-9473
Press Release
FOR IMMEDIATE RELEASE April 29, 2003
ENCORE WIRE REPORTS Q-1 RESULTS
MCKINNEY, TX - Encore Wire Corporation (NASDAQ/NMS: WIRE) today reported
financial results for the quarter ended March 31, 2003.
Net sales for the first quarter of 2003 totaled $67,152,000 compared to
$64,182,000 during the first quarter of 2002. Intense competitive pressure in
the industry drove wire prices to historically low levels. This continued drop
in wire prices compressed gross margins to the lowest levels in the history of
the company, resulting in a net loss for the first quarter of 2003 of $517,000
versus the $2,357,000 net income reported in the first quarter of 2002. Fully
diluted net income per common share was a loss of $.03 in the first quarter of
2003 compared to $.15 of net income in the first quarter of 2002.
Commenting on the quarter ended March 31, 2003, Vincent A. Rego, Company
Chairman and CEO remarked, "The past two to three years have proved to be very
challenging for businesses across a broad spectrum of American industry,
including the building wire industry. Competitors have been publicly reporting
poor results for the last couple of years. In the last three quarters this has
caught up with Encore, resulting in the first quarterly loss this company has
reported since 1995. While we are disappointed with our performance, it must be
viewed in the context of the current economic environment. Our staff has done a
remarkable job to enable us to perform as well as we have. Our high order fill
rates, innovative products and low cost structure continue to set industry
standards. We have an excellent group of independent representatives selling our
products, through which we have developed lasting customer relationships. While
many companies within and outside our industry have been forced to retrench
their operations and compromise their future, we have planned for our future
with the capital improvement project we completed last year. With this project
behind us, we have the capability to approach the future confidently while our
short-term focus is one of riding this storm out. We will remain conservative in
our spending to ensure our balance sheet remains strong. We thank our
shareholders for their continued support and understanding in these difficult
times."
Encore Wire Corporation manufactures a broad range of 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,
increasing profitability and shareholder value, may include forward-looking
statements that involve risks and uncertainties, including fluctuations in the
price of copper, 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.
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Encore Wire Corporation
P.O. Box 1149
1410 Millwood Road
McKinney, Texas 75069
(972) 562-9473
Condensed Consolidated Balance Sheet
(In Thousands)
(Unaudited)
<Table>
<Caption>
MARCH 31 DECEMBER 31
2003 2002
--------- -----------
ASSETS
Current Assets
Cash $ 137 $ 160
Receivables, net 49,283 46,600
Inventories 47,922 50,165
Prepaid Expenses and Other 2,311 672
--------- ---------
Total Current Assets 99,653 97,597
Property, Plant and Equipment, net 84,358 85,366
Other Assets 171 166
--------- ---------
Total Assets $ 184,182 $ 183,129
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 8,020 $ 10,735
Accrued Liabilities and Other 8,686 11,183
--------- ---------
Total Current Liabilities 16,706 21,918
Long Term Liabilities
Note Payable 54,240 47,500
Non-Current Deferred Income Taxes 7,193 7,193
--------- ---------
Total Long Term Liabilities 61,433 54,693
Total Liabilities 78,139 76,611
Stockholders' Equity
Common Stock 170 169
Additional Paid in Capital 34,138 34,138
Treasury Stock (15,275) (15,275)
Retained Earnings 87,010 87,486
--------- ---------
Total Stockholders' Equity 106,043 106,518
--------- ---------
Total Liabilities and Stockholders' Equity $ 184,182 $ 183,129
========= =========
</Table>
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Encore Wire Corporation
P.O. Box 1149
1410 Millwood Road
McKinney, Texas 75069
(972) 562-9473
Condensed Consolidated Statement of Income
(In Thousands)
(Unaudited)
<Table>
<Caption>
QUARTER ENDED MARCH 31,
-----------------------------------------------
2003 2002
---------------------- ---------------------
Net Sales $ 67,152 100.0% $ 64,182 100.0%
Cost of Sales 61,495 91.6% 54,403 84.8%
-------- -------- -------- --------
Gross Profit 5,657 8.4% 9,779 15.2%
Selling, General and
Administrative Expenses 5,953 8.9% 5,771 9.0%
-------- -------- -------- --------
Operating Income (296) -0.4% 4,008 6.2%
Net Interest & Other Expense 511 0.8% 327 0.5%
-------- -------- -------- --------
Income before Income Taxes (807) -1.2% 3,681 5.7%
Income Taxes (290) -0.4% 1,324 2.1%
-------- -------- -------- --------
Net Income $ (517) -0.8% $ 2,357 3.7%
======== ======== ======== ========
Basic Earnings Per Share $ (0.03) $ 0.15
======== ========
Diluted Earnings Per Share $ (0.03) $ 0.15
======== ========
Weighted Average Number of
Common and Common
Equivalent Shares Outstanding:
-Basic 15,119 15,260
======== ========
-Diluted 15,119 15,469
======== ========
</Table>
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