Encore Wire Corporation (
Q4 2011 Earnings Call
February 22, 2012 11:00 am ET
Daniel Jones - President, CEO, Director
Frank Bilban - CFO, VP - Finance, Treasurer, Secretary
Dmitriy Shapiro - Global Hunter
Robert Kelly - Sidoti & Company
Keith Johnson - Morgan Keegan
Bill Baldwin - Baldwin Anthony Securities
Brad Evans - Heartland Funds
Kerry Rigdon - Mayberry
Joe Giamichael - Global
Ladies and gentlemen hello and welcome to today’s Encore Wire fourth quarter earnings conference call. As a reminder, all phone lines are on listen-only mode and there will be time for question-and-answers at the end of the conference. (Operator Instructions).
At this time, I’d like to turn the call over to Mr. Daniel Jones, President and Chief Executive Officer to begin. Please go ahead.
Thank you, Eric and good morning ladies and gentlemen and welcome to the Encore Wire Corporation’s quarterly conference call. I’m Daniel Jones, the President and Chief Executive Officer of Encore Wire and with me this morning is Frank Bilban, our Chief Financial Officer. I'm pleased to announce strong quarterly earnings in a turbulent economy and the severe recessions currently taking place in the construction industry. As we have repeatedly noted, the key metric to our earnings is the spread between the cost of wire sold and cost of raw copper purchased in any given period.
The spread increased 42.5% in the fourth quarter of 2011 versus the fourth quarter of 2010. For the year ended December 31, 2011 the spread increased 33.8% versus the year ended December 31, 2011 the spread increased 33.8% versus the year ended December 31, 2010 driving our increased earnings while unit volumes also increased 6.2%. The earnings per share of $2.14 in 2011 was the second highest in the history of the company. While the net sales dollars of 1.180 billion were the highest since 2007 and the third highest in our 22 year history.