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» Encore Wire Corporation. Q2 2010 Earnings Call Transcript
We believe the exit of a former competitor in the first quarter of 2010 has contributed to the positive trend and industry pricing levels and margins. In the past five quarters, since their exit, we’ve earned a cumulative $1.62 and fully diluted net earnings per share versus a cumulative $0.05 and fully diluted net earnings per share in the previous five quarters ended March 31, 2010.Despite producing strong earnings in the second quarter of 2011, we’re down slightly on a sequential quarter comparison with a volatility of copper prices during the quarter, industry attempts to introduce price increases were occasionally stormy by the volatility. We attempted to lead the formal price increases during the quarters some of which we’re unsuccessful. We continue to support industry price increases in an effort to maintain an increased margins. We believe our superior order fill rates continue to enhance our competitive position as our electrical distributor customers are holding lean inventories in the field. As orders come in from electrical contractors, the distributors can count on our order fill rates into ensure quick deliveries from coast-to-coast and we’ve been able to accomplish this despite holding what are historically lean inventories levels for us. We believe our performance is impressive in this economy and thank our employees and associates for the tremendous efforts. We also thank our shareholders for their continued support. Frank Bilban, our Chief Financial Officer will now discuss our financial results. Frank? Frank Bilban Thank you, Daniel. In a minute, we will review Encore’s financial results for the quarter. After the review, we will take any questions you may have. Each of you should have received the copies of Encore’s press release covering Encore’s financial results. The release is available on the Internet or you can call Tracy West at 800-962-9473 and we will get you a copy.
Before we review the financials, let me indicate that throughout this conference call 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 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.(Audio Gap) During the second quarter of 2010. Higher prices for building wires sold in the quarter ended June 30, 2011 accounted for most of the increase in net sales dollars increasing twenty eight point six cents per copper pound sold, versus the same period in 2010. Sales prices rose primarily due to higher copper prices which rose 30.7%. Unit volume in the second quarter of 2011, increased 1.9% versus the second quarter of 2010. Net income for the second quarter of 2011 increased 16.3% to $9.5 million versus $8.1 million in the second quarter of 2010. Fully diluted net earnings per common share increased 16% to $0.40 in the second quarter of 2011, versus $0.35 in the second quarter of 2010. Net sales for the six months ended June 30, 2011 were $612.8 million, compared to $411.3 million during the same period in 2010. Higher prices for building wire sold in the six months ended June 30, 2011 accounted for most of the increase in net sales dollars, increasing 31.5% per copper pound versus the same period in 2010. Unit volume in the six months ended June 30, 2011 also helped to increase the top-line sales dollars, increasing 13.4% versus the same period in 2010. Net income for the six months ended June 30, 2011 was $20.1 million versus $5.7 million in the same period in 2010. Fully diluted net income per common share increased 252.6%, to $0.86 for the six months ended June 30, 2011 versus $0.24 in 2010. Read the rest of this transcript for free on seekingalpha.com