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 OCTOBER 23, 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 September 30, 2003.
Net sales for the third quarter of 2003 increased 42% to $113,877,000 compared
to $80,150,000 during the third quarter of 2002. The $113.9 million in sales
represents a new quarterly record for Encore, far surpassing the previous high
of $80.6 million set in the second quarter of 2003. Shipment volume, measured in
copper pounds sold, also set a new quarterly company record. Net income for the
quarter increased to $5,222,000 versus $920,000 in the third quarter of 2002, an
increase of 467%. Fully diluted net income per common share was $.34 in the
third quarter of 2003 compared to $.06 of net income in the third quarter of
2002. Net income and fully diluted net income per share in the third quarter of
2003 also improved dramatically versus the $2,653,000 or $.17 per share reported
in the second quarter of 2003.
Net sales for the first nine months of 2003 increased 21% to $261,614,000
compared to $216,487,000 in the first nine months of 2002. Net income was
$7,358,000 in the first nine months of 2003 versus $5,541,000 in the same period
of 2002, an increase of 33%. Fully diluted net income per share was $.48 in the
first nine months of 2003 versus $.36 in the first nine months of 2002.
Commenting on the quarter ended September 30, 2003, Vincent A. Rego, Company
Chairman and CEO remarked, "The trend Encore Wire has produced in increased
sales and earnings over the last two quarters is remarkable. We earned $.51 per
share in the last two quarters versus the previous three quarters in which we
earned a cumulative net of $.06 per share. Our sales of $113.9 million this
quarter were extremely strong, exceeding our previous record of $80.6 million by
41%. Our industry has suffered through a challenging period over the last few
years. It now appears that the strong companies that survived the difficult
times are seeing increased volumes resulting from the reduced presence of other
competitors in the market. Our plants ran very efficiently during the quarter,
also contributing to the enhanced gross margins. Our excellent staff impressed
us with their ability to handle the increased volume levels. Copper prices
continue to strengthen, which have historically been a driving stimulus of
increased margins in our industry. The capacity and productivity enhancements we
made in 2001 and 2002 have served us very well in 2003. We will continue 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
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
P.O. Box 1149
1410 Millwood Road
McKinney, Texas 75069
(972) 562-9473
Condensed Consolidated Balance Sheet
(In Thousands)
(Unaudited)
<Table>
<Caption>
SEPTEMBER 30, DECEMBER 31,
2003 2002
------------- ------------
ASSETS
Current Assets
Cash $ 290 $ 160
Receivables, net 81,054 46,600
Inventories 55,337 50,165
Prepaid Expenses and Other 3,923 672
------------- ------------
Total Current Assets 140,604 97,597
Property, Plant and Equipment, net 79,910 85,366
Other Assets 85 166
------------- ------------
Total Assets $ 220,599 $ 183,129
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 39,022 $ 10,735
Accrued Liabilities and Other 14,813 11,183
------------- ------------
Total Current Liabilities 53,835 21,918
Long Term Liabilities
Note Payable 43,295 47,500
Non-Current Deferred Income Taxes 9,251 7,193
------------- ------------
Total Long Term Liabilities 52,546 54,693
Total Liabilities 106,381 76,611
Stockholders' Equity
Common Stock 170 169
Additional Paid in Capital 34,157 34,138
Treasury Stock (15,275) (15,275)
Retained Earnings 95,166 87,486
------------- ------------
Total Stockholders' Equity 114,218 106,518
------------- ------------
Total Liabilities and Stockholders' Equity $ 220,599 $ 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 SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
---------------------------------------- ---------------------------------------------
2003 2002 2003 2002
------------------ ------------------ ------------------ -----------------------
Net Sales $ 113,877 100.0% $ 80,150 100.0% $ 261,614 100.0% $ 216,487 100.0%
Cost of Sales 96,255 84.5% 72,166 90.0% 226,534 86.6% 188,672 87.2%
---------- ----- ---------- ----- ---------- ----- ---------- ----------
Gross Profit 17,622 15.5% 7,984 10.0% 35,080 13.4% 27,815 12.8%
Selling, General and
Administrative Expenses 8,935 7.8% 6,180 7.7% 21,871 8.4% 17,917 8.3%
---------- ----- ---------- ----- ---------- ----- ---------- ----------
Operating Income 8,687 7.6% 1,804 2.3% 13,209 5.0% 9,898 4.6%
Net Interest & Other Expense 527 0.5% 367 0.5% 1,712 0.7% 1,240 0.6%
---------- ----- ---------- ----- ---------- ----- ---------- ----------
Income before Income Taxes 8,160 7.2% 1,437 1.8% 11,497 4.4% 8,658 4.0%
Income Taxes 2,938 2.6% 517 0.6% 4,139 1.6% 3,117 1.4%
---------- ----- ---------- ----- ---------- ----- ---------- ----------
Net Income $ 5,222 4.6% $ 920 1.1% $ 7,358 2.8% $ 5,541 2.6%
========== ===== ========== ===== ========== ===== ========== ==========
Basic Earnings Per Share $ 0.35 $ 0.06 $ 0.49 $ 0.36
========== ========== ========== ==========
Diluted Earnings Per Share $ 0.34 $ 0.06 $ 0.48 $ 0.36
========== ========== ========== ==========
Weighted Average Number of
Common and Common
Equivalent Shares Outstanding:
-Basic 15,120 15,168 15,120 15,231
========== ========== ========== ==========
-Diluted 15,305 15,282 15,205 15,381
========== ========== ========== ==========
</Table>