In August, the price of copper started trending down, the big decline came in September, with a Comex close price of $4.14 on September 1st and a Comex close of $3.14 on September 30. We were able to reduce wire prices more slowly than copper was falling, especially in September, significantly improving our margins. Over the last several decades falling copper prices have been detrimental to industry margins, but that dynamic appears to have changed recently as was also the case during the last two quarters of 2008, when copper prices dropped at a historic pace and margins improved.We continue to support industry price increases in an effort to maintain and increase margins. And 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 to ensure quick deliveries from coast to coast. We have been able to accomplish this despite holding what are historically lean inventories for us. We believe our performance is impressive in this economy. We thank our employees and associates for their 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 financial review, we will take any questions you may have. Each of you should have received a copy of our press release covering Encore’s financial results. This 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, news releases for a more detailed discussion of these risks and uncertainties.
Also reconciliations of non-GAAP financial measures discussed during this conference 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 out posted on www.encorewire.com.Now for the financial results. Net sales for the third quarter ended September 30, 2011 were $319.4 million compared to $242.8 million during the third quarter of 2010. Higher prices for building wire sold in the quarter ended September 30, 2011 accounted for most of the increase in net sales dollars, increasing 28.7% per copper pound sold versus the same period in 2010. Sales prices rose primarily due to higher copper prices, which rose 24.7%. Unit volume in the third quarter of ‘11 increased 2.3% versus the third quarter of ‘10. Net income for the third quarter of 2011 increased 169.4% to $13.7 million versus $5.1 million in the third quarter of 2010. Fully diluted net earnings per common share increased 168.7% to $0.59 in the third quarter of 2011 versus $0.22 in the third quarter of 2010. Net sales for the nine months ended September 30, 2011 were $932.2 million, compared to $654.1 million during the same period in 2010. Higher prices for building wire sold in the nine months ended September 30, again accounted for most of the increase in net sales dollars, increasing 30.4% per copper pound versus the same period in 2010. Unit volume in the nine months ended September 30, 2011 also helped to increase the net sales dollars, increasing 9.4% versus the same period in 2010. Read the rest of this transcript for free on seekingalpha.com