EXHIBIT 99.1
[Encore Wire Corporation Logo Omitted]
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Encore Wire |
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PRESS RELEASE
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November 14, 2006 |
1410 Millwood Road |
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McKinney, Texas 75069
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Contact:
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Frank J. Bilban |
972-562-9473
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Vice President & CFO |
For Immediate Release
ENCORE WIRE ANNOUNCES CASH DIVIDEND AND STOCK REPURCHASE PLAN
MCKINNEY, TX — Encore Wire Corporation (NASDAQ Global Select: WIRE) announced today that the
Company’s Board of Directors has declared a cash dividend and adopted a new stock repurchase plan.
For the first time in the history of the Company, Encore Wire will pay a cash dividend. This
two-cent per share dividend will be paid on January 19, 2007, to stockholders of record at the
close of business on January 5, 2007. Any future quarterly dividends will be paid subject to
earnings and cash flow considerations.
The Board of Directors also authorized the purchase by Encore Wire in the open market or in
privately negotiated transactions of up to 1,000,000 shares of its Common Stock from time to time
at prices not above those prevailing in the open market at the time of such purchases. The number
of shares to be purchased and the purchase price per share will be determined by the President of
the Corporation, who in his discretion, may elect to purchase or not to purchase Common Stock of
the Corporation at any point between now and December 31, 2007. The new plan supercedes the
existing stock repurchase plan that covered the purchase of up to 224,700 shares.
Daniel L. Jones, President and Chief Executive Officer of Encore Wire Corporation, said, “The Board
of Directors has determined that shares of Encore Wire have been trading at low price to earnings
multiples and may represent an opportunity for the Company to invest a portion of its earnings in a
stock repurchase program. We appreciate our shareholders commitment to the continued growth of
Encore Wire. We will continue to manage the Company for the long-term and strive to protect our
strong balance sheet.”
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 payment of
future dividends, future purchases of stock, 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.