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 JULY 28, 2003
ENCORE WIRE REPORTS INCREASED PROFITS ON RECORD SALES
MCKINNEY, TX - Encore Wire Corporation (NASDAQ/NMS: WIRE) today reported
financial results for the quarter ended June 30, 2003.
Net sales for the second quarter of 2003 increased to $80,584,000 compared to
$72,154,000 during the second quarter of 2002. The $80.6 million in sales
represents a new record for Encore, beating the $80.2 million mark set in the
third quarter of 2002. Shipment volume, measured in copper pounds sold, also set
a new company record. Net income for the quarter increased to $2,653,000 versus
$2,265,000 in the second quarter of 2002. Fully diluted net income per common
share was $.17 in the second quarter of 2003 compared to $.15 of net income in
the second quarter of 2002. Net income and fully diluted income per share in the
second quarter of 2003 improved dramatically over the loss of $517,000 or $.03
per share in the first quarter of 2003.
Net sales for the first six months of 2003 increased to $147,737,000 compared to
$136,337,000 in the first six months of 2002. Net income was $2,136,000 in the
first six months of 2003 versus $4,621,000 in the same period of 2002. Fully
diluted net income per share was $.14 in the first six months of 2003 versus
$.30 in the first six months of 2002.
Commenting on the quarter ended June 30, 2003, Vincent A. Rego, Company Chairman
and CEO remarked, "It is gratifying to see Encore Wire post $.17 per share in
earnings this quarter versus the past three quarters in which we earned a
cumulative net of $.06 per share. Our industry has been through difficult times
over the last couple of years, but it appears that we may be coming out of it
with strong volumes and increased margins. We managed our plants very
efficiently during the quarter and controlled our manufacturing overheads,
enabling us to enhance gross margins. Our staff continues to perform beyond
expectations. The price of copper has recently shown signs of strength and most
importantly, the building wire industry has injected some long overdue
discipline into pricing policies. While we believe that margins still need
improvement, we are obviously excited at the progress made this past quarter. We
are also seeing strong demand in the marketplace. Housing starts have been a
bright spot during this recession, and we are optimistic that commercial
construction is starting to recover. With the plant, equipment and staff we have
in place, we are capable of maintaining our high order fill rates and low cost
structure. We have taken steps to strengthen our independent rep force in a few
key markets and are already seeing those changes paying off. We will remain
conservative in our spending to ensure our balance sheet remains strong. We
thank our shareholders for their continued support. "
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,
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.
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>
JUNE 30, DECEMBER 31,
2003 2002
--------------- ---------------
ASSETS
Current Assets
Cash $ 1,400 $ 160
Receivables, net 61,799 46,600
Inventories 43,860 50,165
Prepaid Expenses and Other 2,867 672
--------------- ---------------
Total Current Assets 109,926 97,597
Property, Plant and Equipment, net 82,062 85,366
Other Assets 176 166
--------------- ---------------
Total Assets $ 192,164 $ 183,129
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 23,090 $ 10,735
Accrued Liabilities and Other 11,057 11,183
--------------- ---------------
Total Current Liabilities 34,147 21,918
Long Term Liabilities
Note Payable 40,000 47,500
Non-Current Deferred Income Taxes 9,251 7,193
--------------- ---------------
Total Long Term Liabilities 49,251 54,693
Total Liabilities 83,398 76,611
Stockholders' Equity
Common Stock 170 169
Additional Paid in Capital 34,138 34,138
Treasury Stock (15,275) (15,275)
Retained Earnings 89,733 87,486
--------------- ---------------
Total Stockholders' Equity 108,766 106,518
--------------- ---------------
Total Liabilities and Stockholders' Equity $ 192,164 $ 183,129
=============== ===============
</Table>
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 JUNE 30,
--------------------------------------------------------------
2003 2002
----------------------------- -----------------------------
Net Sales $ 80,584 100.0% $ 72,154 100.0%
Cost of Sales 68,783 85.4% 62,102 86.1%
------------- ------------- ------------- -------------
Gross Profit 11,801 14.6% 10,052 13.9%
Selling, General and
Administrative Expenses 6,982 8.7% 5,966 8.3%
------------- ------------- ------------- -------------
Operating Income 4,819 6.0% 4,086 5.7%
Net Interest & Other Expense 674 0.8% 546 0.8%
------------- ------------- ------------- -------------
Income before Income Taxes 4,145 5.1% 3,540 4.9%
Income Taxes 1,492 1.9% 1,275 1.8%
------------- ------------- ------------- -------------
Net Income $ 2,653 3.3% $ 2,265 3.1%
============= ============= ============= =============
Basic Earnings Per Share $ 0.18 $ 0.15
============= =============
Diluted Earnings Per Share $ 0.17 $ 0.15
============= =============
Weighted Average Number of
Common and Common
Equivalent Shares Outstanding:
-Basic 15,119 15,267
============= =============
-Diluted 15,212 15,514
============= =============
<Caption>
SIX MONTHS ENDED JUNE 30,
--------------------------------------------------------------
2003 2002
----------------------------- -----------------------------
Net Sales $ 147,737 100.0% $ 136,337 100.0%
Cost of Sales $ 130,279 88.2% $ 116,505 85.5%
------------- ------------- ------------- -------------
Gross Profit 17,458 11.8% 19,832 14.5%
Selling, General and
Administrative Expenses 12,936 8.8% 11,738 8.6%
------------- ------------- ------------- -------------
Operating Income 4,522 3.1% 8,094 5.9%
Net Interest & Other Expense 1,184 0.8% 873 0.6%
------------- ------------- ------------- -------------
Income before Income Taxes 3,338 2.3% 7,221 5.3%
Income Taxes 1,202 0.8% 2,600 1.9%
------------- ------------- ------------- -------------
Net Income $ 2,136 1.4% $ 4,621 3.4%
============= ============= ============= =============
Basic Earnings Per Share $ 0.14 $ 0.30
============= =============
Diluted Earnings Per Share $ 0.14 $ 0.30
============= =============
Weighted Average Number of
Common and Common
Equivalent Shares Outstanding:
-Basic 15,119 15,263
============= =============
-Diluted 15,193 15,494
============= =============
</Table>