Encore Wire Corporation (WIRE) Q2 2010 Earnings Call July 29, 2010 11:00 a.m. ET Executives Daniel Jones - President & CEO Frank Bilban - CFO Analysts Liam Burke - Janney Montgomery Scott Michael Coven Robert Kelly Brad Evans Tom Bashir Presentation Operator
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In the second quarter the building wire industry exhibited improved pricing discipline favorably impacting our spreads and allowed our unit volume to return to what we believe maybe more normal levels. We continue to strive to support industry price increases to maintain the momentum started during the past quarter. We believe we our superior order field rates continue to enhance our competitive position as our electrical distributor customers are holding very lean inventories in the field.As orders come in from electrical contractor, the distributor can count on our order field for rates to ensure quick deliveries from cost to cost. We've been able to accomplish this despite holding what historically lean inventories for us. We believe our performance has impressed the Venus economy. And we think our employees and associates show tremendous efforts. We also thank our shareholders or the continued support. Frank Bilban, our Chief Financial Officer will now discus our financial results. Frank? Frank Bilban Thank you, Daniel. In a minute we will review Encore's financial results for the quarter. After the financial review we will take any questions you may have. Each of you should have received a copy of Encore's press release covering our financial results. This release is available on the Internet or you can call Dennis Lewis at 800-962-9473 and we will give you a copy. Before we review the financials, let me indicate that in these initial comments and in the question-and-answer period that follows, we may make certain statements that might be considered to be forward-looking. In order to comply with certain securities legislation, and instead of attempting to identify each particular statement as forward-looking, we advise you that all such statements involve certain risks and uncertainties that could cause actual results to differ materially from those discussed here today. I refer each of you to the company's SEC reports and news releases for a more detailed discussion of these risks and uncertainties.
Also, reconciliations of non-GAAP financial measures discussed during this call to the most directly comparable financial measures presented in accordance with GAAP including EBITDA, which we believe to be useful supplemental information for investors are posted on www.encorewire.com.Now for the financial results. Net sales for the second quarter ended June 30, 2010 were $236.1 million compared to $159.4 million during the second quarter of 2009. Higher prices for building wire sold in the quarter ended June 30, 2010 accounted for most of the increase in net sales dollars, increasing 44.9% per copper pound sold versus the same period in 2009. Sales prices rose primarily due to higher copper prices. Unit volume in the second quarter of 2010 increased 2.3% versus the second quarter of 2009. Net income for the second quarter of 2010 increased 1,256.5% to $8.1 million versus $600,000 in the second quarter of 2009. Fully diluted net earnings per common share was $0.35 in the second quarter of 2010 versus $0.03 in the second quarter of 2009. Net sales for the six months ended June 30, 2010 were $411.3 million compared to $303.8 million during the same period in 2009. Higher prices for building wire sold in the six months ended June 30, accounted for the increase in net sales dollars, increasing 59.2% per copper pound versus the same period in 2009. Unit volume in the six months ended June 30, decreased 14.9% versus the same period in 2009. Read the rest of this transcript for free on seekingalpha.com