EXHIBIT 99.1

[Encore Wire Corporation Logo Omitted]

             
Encore Wire Corporation
  PRESS RELEASE       July 25, 2005
1410 Millwood Road
           
McKinney, Texas 75069
      Contact:   Frank J. Bilban
972-562-9473
  For Immediate Release       Vice President & CFO

ENCORE WIRE ANNOUNCES SECOND QUARTER RESULTS ON RECORD SALES

MCKINNEY, TX — Encore Wire Corporation (NASDAQ/NMS: WIRE) today announced record second quarter and six-month sales for 2005.

Net sales for the second quarter of 2005 increased 22.5% to a record $169.3 million compared to $138.1 million during the second quarter of 2004. Shipment volume, measured in copper pounds of wire sold, increased by 11% in the second quarter of 2005 versus the same period in 2004. The remainder of the net sales increase is due primarily to higher wire prices in 2005 versus 2004. Net Income for the second quarter of 2005 decreased to $2.4 million versus $7.3 million in the second quarter of 2004. Fully diluted net income per common share was $0.10 in the second quarter of 2005 versus $0.31 in the second quarter of 2004.

On a sequential quarter comparison, sales for the second quarter of 2005 increased 23.4% to $169.3 million from $137.2 million during the first quarter of 2005. Shipment volume, measured in copper pounds of wire sold, increased by 16% in the second quarter of 2005 versus the first quarter of 2005. Net Income for the second quarter of 2005 increased to $2.4 million versus $1.0 million in the first quarter of 2005. Fully diluted net income per common share was $0.10 in the second quarter of 2005 versus $0.04 in the first quarter of 2005. The first quarter of 2005 was favorably impacted by $0.8 million or $0.03 per common share due to a tax adjustment.

Net sales for the first six months of 2005 increased 3.2% to $306.5 million compared to $297.1 million during the first six months of 2004. Higher prices for building wire sold in 2005 account for the increase in net sales dollars versus 2004, offsetting a 3.5% decrease in unit volume year over year. Net income for the first six months of 2005 was $3.5 million versus $20.5 million in the first six months of 2004. Fully diluted net income per common share was $0.15 in the first half of 2005 versus $.87 in the first half of 2004.

Commenting on the results, Daniel L. Jones, President and Chief Operating Officer and interim Chief Executive Officer, of Encore Wire Corporation, said, “We are encouraged by the increase in sales during the second quarter and the up tick in margins versus the first quarter of 2005. Margins have been eroding for the last four quarters, and they began to trend upward late in the second quarter of 2005. Our industry appears to be bringing a measure of pricing discipline back into the market, which we believe should enhance our margins going forward. The price of copper, our major raw material, continues to be strong, which has historically enhanced our margins. Net Income attributable to operations increased to $0.10 per common share in the second quarter versus $0.01 per share in the first quarter of 2005. In July we broke ground for the new armored cable plant at our McKinney, Texas complex. This extension of our product line is expected to begin producing sales in mid-2006. We will continue to manage the Company to grow sales and earnings while maintaining our historically strong and conservative balance sheet. To that end, we have utilized the manufacturing and distribution flexibility we put in place last year to react quickly to changes in customer demand while keeping our inventories lean.

 


 

We also want to provide an update on Mr. Vincent Rego, our Chairman, who continues to recuperate from the stroke he suffered this past May. He is currently undergoing treatment at a hospital rehabilitation facility in Dallas. Our thoughts are with him as we continue to move the Company forward. We also want to 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
P.O. Box 1149
1410 Millwood Road
McKinney, Texas 75069
(972) 562-9473

Condensed Consolidated Balance Sheet
(In Thousands)
(Unaudited)

                 
    June 30,     December 31,  
    2005     2004  
ASSETS
               
Current Assets
               
Cash
  $ 1,058     $ 2,640  
Receivables, net
    124,611       108,752  
Inventories
    49,722       39,111  
Prepaid Expenses and Other
    12,853       11,661  
 
           
Total Current Assets
    188,244       162,164  
Property, Plant and Equipment, net
    86,821       88,679  
Other Assets
    982       672  
 
           
Total Assets
  $ 276,047     $ 251,515  
 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current Liabilities
               
Accounts Payable
  $ 18,996     $ 15,090  
Accrued Liabilities and Other
    12,603       14,392  
 
           
Total Current Liabilities
    31,599       29,482  
Long Term Liabilities
               
Note Payable
    70,254       49,836  
Non-Current Deferred Income Taxes
    11,157       12,653  
 
           
Total Long Term Liabilities
    81,411       62,489  
Total Liabilities
    113,010       91,971  
Stockholders’ Equity
               
Common Stock
    259       259  
Additional Paid in Capital
    38,049       38,020  
Treasury Stock
    (15,275 )     (15,275 )
Retained Earnings
    140,004       136,540  
 
           
Total Stockholders’ Equity
    163,037       159,544  
 
           
Total Liabilities and Stockholders’ Equity
  $ 276,047     $ 251,515  
 
           

 


 

Encore Wire Corporation
P.O. Box 1149
1410 Millwood Road
McKinney, Texas 75069
(972) 562-9473

Condensed Consolidated Statement of Income
(In Thousands)
(Unaudited)

                                                                 
    Quarter Ended June 30,     Six Months Ended June 30,  
    2005     2004     2005     2004  
Net Sales
  $ 169,265       100.0 %   $ 138,148       100.0 %   $ 306,459       100.0 %   $ 297,090       100.0 %
Cost of Sales
    153,894       90.9 %     117,112       84.8 %   $ 280,340       91.5 %   $ 243,133       81.8 %
 
                                               
Gross Profit
    15,371       9.1 %     21,036       15.2 %     26,119       8.5 %     53,957       18.2 %
Selling, General and Administrative Expenses
    10,898       6.4 %     8,917       6.5 %     20,486       6.7 %     20,135       6.8 %
 
                                               
Operating Income
    4,473       2.6 %     12,119       8.8 %     5,633       1.8 %     33,822       11.4 %
Net Interest & Other Expense
    770       0.5 %     761       0.6 %     1,602       0.5 %     1,395       0.5 %
 
                                               
Income before Income Taxes
    3,703       2.2 %     11,358       8.2 %     4,031       1.3 %     32,427       10.9 %
Income Taxes
    1,277       0.8 %     4,089       3.0 %     568       0.2 %     11,894       4.0 %
 
                                               
Net Income
  $ 2,426       1.4 %   $ 7,269       5.3 %   $ 3,463       1.1 %   $ 20,533       6.9 %
 
                                               
Basic Earnings Per Share
  $ 0.10             $ 0.32             $ 0.15             $ 0.90          
 
                                                       
Diluted Earnings Per Share
  $ 0.10             $ 0.31             $ 0.15             $ 0.87          
 
                                                       
Weighted Average Number of Common and Common Equivalent Shares Outstanding:
                                                               
-Basic
    23,107               23,049               23,107               22,929          
 
                                                       
-Diluted
    23,393               23,590               23,413               23,568