EXHIBIT 99.1
[Encore Wire Corporation Logo Omitted]
             
Encore Wire Corporation
  PRESS RELEASE       April 25, 2006
1410 Millwood Road
           
McKinney, Texas 75069
      Contact:   Frank J. Bilban
972-562-9473
          Vice President & CFO
For Immediate Release
ENCORE WIRE POSTS RECORD SALES
MCKINNEY, TX — Encore Wire Corporation (NASDAQ/NMS: WIRE) announced today that 2006 first quarter sales dollars set a new company record.
Net sales for the first quarter of 2006 increased 83.7% to a record $252.0 million compared to $137.2 million during the first quarter of 2005. The increase in net sales dollars is due primarily to higher wire prices in 2006 versus 2005 along with a unit sales increase of over 18%. Net income for the first quarter of 2006 increased 1,456% to $16.1 million versus $1.0 million in the first quarter of 2005. Fully diluted net income per common share increased to $0.68 in the first quarter of 2006 versus $0.04 in the first quarter of 2005. The increased average sales price per pound of copper wire shipped in the first quarter of 2006 versus the first quarter of 2005 was driven by the price of copper, which increased 55%.
Commenting on the results, Daniel L. Jones, President and Chief Executive Officer of Encore Wire Corporation, said, “We are proud to announce another new record for quarterly sales, coupled with the second best quarterly earnings in the history of the Company. The trailing four quarters combined have produced net sales of $873.0 million and fully diluted earnings per share of $2.76. Copper continues to climb to new highs, driven by strong global demand. Demand from our customers has also remained strong. Construction of our new armored cable plant continues on schedule, with the building now complete and machinery currently being installed. The plant is expected to be operational in the third quarter of 2006 and should be a strong contributor to our sales going forward. Due to our strong cash flow in the first quarter, our debt rose only $19.2 million to $90.4 million despite the fact that we increased our working capital by $31.5 million and spent $7.7 million on capital expenditures. We will continue to manage the Company to grow sales and earnings while maintaining our historically strong and conservative balance sheet. 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)
                 
    March 31,     December 31,  
    2006     2005  
ASSETS
               
 
               
Current Assets
               
Cash
  $ 2,063     $ 2,622  
Receivables, net
    183,311       164,930  
Inventories
    73,136       67,932  
Prepaid Expenses and Other
    14,693       19,749  
 
           
Total Current Assets
    273,203       255,233  
 
               
Property, Plant and Equipment, net
    97,929       93,137  
 
               
Other Assets
    106       106  
 
           
 
               
Total Assets
  $ 371,238     $ 348,476  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
 
               
Current Liabilities
               
Accounts Payable
  $ 19,327     $ 17,277  
Accrued Liabilities and Other
    23,304       38,844  
 
           
Total Current Liabilities
    42,631       56,121  
 
               
Long Term Liabilities
               
Note Payable
    88,792       70,438  
Other Long Term Liabilities
    1,608       762  
Non-Current Deferred Income Taxes
    10,213       10,620  
 
           
Total Long Term Liabilities
    100,613       81,820  
 
           
 
               
Total Liabilities
    143,244       137,941  
 
               
Stockholders’ Equity
               
Common Stock
    260       259  
Additional Paid in Capital
    40,253       38,932  
Treasury Stock
    (15,275 )     (15,275 )
Retained Earnings
    202,756       186,619  
 
           
Total Stockholders’ Equity
    227,994       210,535  
 
           
 
               
Total Liabilities and Stockholders’ Equity
  $ 371,238     $ 348,476  
 
           

 


 

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 March 31,  
    2006     2005  
Net Sales
  $ 252,048       100.0 %   $ 137,193       100.0 %
Cost of Sales
    212,676       84.4 %     126,446       92.2 %
 
                       
Gross Profit
    39,372       15.6 %     10,747       7.8 %
Selling, General and Administrative Expenses
    13,438       5.3 %     9,587       7.0 %
 
                       
Operating Income
    25,934       10.3 %     1,160       0.8 %
Net Interest & Other Expense
    1,133       0.4 %     832       0.6 %
 
                       
Income before Income Taxes
    24,801       9.8 %     328       0.2 %
Income Taxes
    8,664       3.4 %     (709 )     -0.5 %
 
                       
Net Income
  $ 16,137       6.4 %   $ 1,037       0.8 %
 
                       
Basic Earnings Per Share
  $ 0.70             $ 0.04          
 
                           
Diluted Earnings Per Share
  $ 0.68             $ 0.04          
 
                           
Weighted Average Number of Common and Common Equivalent Shares Outstanding:
                               
-Basic
    23,213               23,106          
 
                           
-Diluted
    23,694               23,427