FORM 10-K
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☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ENCORE WIRE CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware | 75-2274963 | ||||||||||
(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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1329 Millwood Road | |||||||||||
McKinney, | Texas | 75069 | |||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $.01 per share | WIRE | The NASDAQ Global Select Market |
PAGE | |||||
Item 6. Selected Financial Data
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Name | Age | Position with Company | |||||||||
Daniel L. Jones | 57 | Chairman of the Board of Directors, President and Chief Executive Officer | |||||||||
Bret J. Eckert | 54 | Vice President – Finance, Treasurer, Secretary, and Chief Financial Officer |
Number of securities to be
issued upon exercise of outstanding options, warrants and rights
|
Weighted-average exercise
price of outstanding
options, warrants and rights
|
Number of securities
remaining available for future issuance under equity compensation plans
(excluding securities
reflected in column (a))
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PLAN CATEGORY | (a) | (b) | (c) | |||||||||||||||||
Equity compensation plans approved by security holders (1) | 314,500 | $ | 41.82 | 994,500 | (2) |
As of December 31, | |||||||||||||||||||||||||||||
Symbol | Total Return For: | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||
Û | Encore Wire Corporation | 100.00 | 117.13 | 131.69 | 136.04 | 155.85 | 164.79 | ||||||||||||||||||||||
£ | Russell 2000 Index | 100.00 | 121.31 | 139.08 | 123.76 | 155.35 | 186.36 | ||||||||||||||||||||||
r | Peer Group | 100.00 | 127.15 | 128.68 | 82.14 | 121.57 | 126.12 |
Year Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||
Statement of Income Data: | |||||||||||||||||||||||||||||
Net sales | $ | 1,276,948 | $ | 1,274,994 | $ | 1,288,683 | $ | 1,164,248 | $ | 940,790 | |||||||||||||||||||
Cost of goods sold | 1,082,413 | 1,109,023 | 1,098,961 | 1,008,073 | 820,673 | ||||||||||||||||||||||||
Gross profit | 194,535 | 165,971 | 189,722 | 156,175 | 120,117 | ||||||||||||||||||||||||
Selling, general and administrative expenses | 97,008 | 94,442 | 90,212 | 76,726 | 69,351 | ||||||||||||||||||||||||
Operating income | 97,527 | 71,529 | 99,510 | 79,449 | 50,766 | ||||||||||||||||||||||||
Net interest and other income | 1,269 | 4,199 | 2,174 | 427 | 48 | ||||||||||||||||||||||||
Income before income taxes | 98,796 | 75,728 | 101,684 | 79,876 | 50,814 | ||||||||||||||||||||||||
Provision for income taxes | 22,729 | 17,599 | 23,534 | 12,859 | 16,975 | ||||||||||||||||||||||||
Net income | $ | 76,067 | $ | 58,129 | $ | 78,150 | $ | 67,017 | $ | 33,839 | |||||||||||||||||||
Earnings per common and common equivalent shares – basic | $ | 3.69 | $ | 2.78 | $ | 3.75 | $ | 3.23 | $ | 1.63 | |||||||||||||||||||
Weighted average common and common equivalent shares – basic | 20,599 | 20,904 | 20,845 | 20,767 | 20,704 | ||||||||||||||||||||||||
Earnings per common and common equivalent shares – diluted | $ | 3.68 | $ | 2.77 | $ | 3.74 | $ | 3.21 | $ | 1.63 | |||||||||||||||||||
Weighted average common and common equivalent shares – diluted | 20,653 | 20,990 | 20,910 | 20,847 | 20,773 | ||||||||||||||||||||||||
Annual dividends declared per common share | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.08 |
As of December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Balance Sheet Data: | |||||||||||||||||||||||||||||
Working capital | $ | 461,541 | $ | 473,942 | $ | 445,665 | $ | 375,353 | $ | 325,500 | |||||||||||||||||||
Total assets | 966,454 | 883,154 | 818,060 | 733,975 | 657,964 | ||||||||||||||||||||||||
Long-term debt | — | — | — | — | — | ||||||||||||||||||||||||
Stockholders’ equity | 837,729 | 779,096 | 720,456 | 641,345 | 573,109 |
October
2020 |
November
2020 |
December
2020 |
Quarter Ended
Dec. 31, 2020 |
Year Ended
Dec. 31, 2020 |
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High | $ | 3.19 | $ | 3.42 | $ | 3.63 | $ | 3.63 | $ | 3.63 | |||||||||||||||||||
Low | 2.86 | 3.07 | 3.47 | 2.86 | 2.12 | ||||||||||||||||||||||||
Average | 3.06 | 3.20 | 3.53 | 3.27 | 2.80 |
October
2019 |
November
2019 |
December
2019 |
Quarter Ended
Dec. 31, 2019 |
Year Ended
Dec. 31, 2019 |
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High | $ | 2.68 | $ | 2.72 | $ | 2.86 | $ | 2.86 | $ | 2.98 | |||||||||||||||||||
Low | 2.55 | 2.62 | 2.61 | 2.55 | 2.51 | ||||||||||||||||||||||||
Average | 2.61 | 2.65 | 2.77 | 2.68 | 2.72 |
October
2018 |
November
2018 |
December
2018 |
Quarter Ended
Dec. 31, 2018 |
Year Ended
Dec. 31, 2018 |
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High | $ | 2.82 | $ | 2.80 | $ | 2.80 | $ | 2.82 | $ | 3.29 | |||||||||||||||||||
Low | 2.66 | 2.68 | 2.63 | 2.63 | 2.56 | ||||||||||||||||||||||||
Average | 2.76 | 2.75 | 2.72 | 2.75 | 2.92 |
Quarter Ended Mar. 31, 2020 | Quarter Ended June 30, 2020 | Quarter Ended Sept. 30, 2020 |
Quarter Ended
Dec. 31, 2020 |
Year Ended
Dec. 31, 2020 |
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High | $ | 2.88 | $ | 2.71 | $ | 3.11 | $3.63 | $3.63 | |||||||||||||||||||||
Low | 2.12 | 2.19 | 2.72 | 2.86 | 2.12 | ||||||||||||||||||||||||
Average | 2.56 | 2.43 | 2.93 | 3.27 | 2.80 |
Quarter Ended Mar. 31, 2019 | Quarter Ended June 30, 2019 | Quarter Ended Sept. 30, 2019 |
Quarter Ended
Dec. 31, 2019 |
Year Ended
Dec. 31, 2019 |
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High | $ | 2.96 | $ | 2.98 | $ | 2.74 | $2.86 | $2.98 | |||||||||||||||||||||
Low | 2.57 | 2.63 | 2.51 | 2.55 | 2.51 | ||||||||||||||||||||||||
Average | 2.81 | 2.78 | 2.62 | 2.68 | 2.72 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||
Cost of goods sold: | |||||||||||||||||
Copper | 57.3 | % | 60.8 | % | 62.3 | % | |||||||||||
Other raw materials | 13.5 | % | 14.0 | % | 12.8 | % | |||||||||||
Depreciation | 1.4 | % | 1.2 | % | 1.1 | % | |||||||||||
Labor and overhead | 10.8 | % | 11.0 | % | 9.6 | % | |||||||||||
LIFO adjustment | 1.8 | % | — | % | (0.5) | % | |||||||||||
84.8 | % | 87.0 | % | 85.3 | % | ||||||||||||
Gross profit | 15.2 | % | 13.0 | % | 14.7 | % | |||||||||||
Selling, general and administrative expenses | 7.6 | % | 7.4 | % | 7.0 | % | |||||||||||
Operating income | 7.6 | % | 5.6 | % | 7.7 | % | |||||||||||
Net interest and other income | 0.1 | % | 0.4 | % | 0.2 | % | |||||||||||
Income before income taxes | 7.7 | % | 6.0 | % | 7.9 | % | |||||||||||
Provision for income taxes | 1.8 | % | 1.4 | % | 1.8 | % | |||||||||||
Net income | 5.9 | % | 4.6 | % | 6.1 | % |
2020 | 2019 | 2018 | |||||||||||||||
Raw materials | $ | 40,842 | $ | 25,882 | $ | 28,455 | |||||||||||
Work-in-process | 30,311 | 25,381 | 30,529 | ||||||||||||||
Finished goods | 88,544 | 83,222 | 88,708 | ||||||||||||||
Total | 159,697 | 134,485 | 147,692 | ||||||||||||||
Adjust to LIFO cost | (67,375) | (44,801) | (45,325) | ||||||||||||||
Inventory | $ | 92,322 | $ | 89,684 | $ | 102,367 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net cash provided by operating activities | $ | 57,462 | $ | 106,121 | $ | 81,590 | |||||||||||
Net cash used in investing activities | (85,991) | (52,456) | (26,065) | ||||||||||||||
Net cash provided by (used in) financing activities | (19,313) | (1,105) | (482) | ||||||||||||||
Net increase in cash and cash equivalents | $ | (47,842) | $ | 52,560 | $ | 55,043 | |||||||||||
Annual dividends paid | $ | (1,650) | $ | (1,673) | $ | (1,668) |
Payments Due by Period ($ in Thousands) | |||||||||||||||||||||||||||||
Contractual Obligations | Total |
Less Than
1 Year |
1-3 Years | 3-5 Years |
More Than
5 Years |
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Purchase Obligations | $ | 144,479 | $ | 144,479 | — | — | — |
Valuation of inventories
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Description of the Matter
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At December 31, 2020, the Company’s inventory balance was $92.3 million. As discussed in Notes 1 and 2 to the financial statements, inventories are stated at the lower of cost, using the last-in, first-out (LIFO) method, or market. The Company maintains two inventory pools for LIFO purposes. As permitted by U.S. generally accepted accounting principles, the Company maintains its inventory costs and cost of goods sold on a first-in, first-out (FIFO) basis and adjusts total inventory and cost of goods sold from FIFO to LIFO at each month end.
Auditing management’s calculations to adjust the FIFO inventory balances to LIFO was challenging due to the complexities of the manual calculations.
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How We Addressed the Matter in Our Audit
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We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s calculations of the adjustments to convert FIFO inventory balances to LIFO, including controls over management’s review of the manual calculations described above.
To test the LIFO inventory balance, we performed audit procedures that included, among others, assessing methodologies and testing the underlying data used in the Company’s calculations to adjust the FIFO inventory balances to LIFO. We also tested the mathematical accuracy of the Company’s calculations.
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2020 | 2019 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 183,123 | $ | 230,965 | |||||||
Accounts receivable, net of allowance of $2,215 and $1,801
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275,781 | 223,098 | |||||||||
Inventories | 92,322 | 89,684 | |||||||||
Income taxes receivable | 1,256 | 3,602 | |||||||||
Prepaid expenses and other | 2,651 | 1,889 | |||||||||
Total current assets | 555,133 | 549,238 | |||||||||
Property, plant and equipment – at cost: | |||||||||||
Land and land improvements | 60,662 | 52,354 | |||||||||
Construction-in-progress | 91,688 | 49,847 | |||||||||
Buildings and improvements | 153,094 | 152,536 | |||||||||
Machinery and equipment | 373,902 | 334,204 | |||||||||
Furniture and fixtures | 15,345 | 10,926 | |||||||||
Total property, plant and equipment | 694,691 | 599,867 | |||||||||
Accumulated depreciation | (283,923) | (266,688) | |||||||||
Property, plant and equipment – net | 410,768 | 333,179 | |||||||||
Other assets | 553 | 737 | |||||||||
Total assets | $ | 966,454 | $ | 883,154 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Trade accounts payable | $ | 56,726 | $ | 40,509 | |||||||
Accrued liabilities | 36,866 | 34,787 | |||||||||
Total current liabilities | 93,592 | 75,296 | |||||||||
Deferred income taxes and other | 35,133 | 28,762 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $.01 par value:
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Authorized shares – 2,000,000; none issued
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— | — | |||||||||
Common stock, $.01 par value:
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Authorized shares – 40,000,000;
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Issued shares – 27,025,388 and 26,939,403
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270 | 269 | |||||||||
Additional paid-in capital | 67,885 | 63,009 | |||||||||
Treasury stock, at cost – 6,468,705 and 6,027,455 shares
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(111,718) | (91,056) | |||||||||
Retained earnings | 881,292 | 806,874 | |||||||||
Total stockholders’ equity | 837,729 | 779,096 | |||||||||
Total liabilities and stockholders’ equity | $ | 966,454 | $ | 883,154 |
2020 | 2019 | 2018 | |||||||||||||||
Net sales | $ | 1,276,948 | $ | 1,274,994 | $ | 1,288,683 | |||||||||||
Cost of goods sold | 1,082,413 | 1,109,023 | 1,098,961 | ||||||||||||||
Gross profit | 194,535 | 165,971 | 189,722 | ||||||||||||||
Selling, general and administrative expenses | 97,008 | 94,442 | 90,212 | ||||||||||||||
Operating income | 97,527 | 71,529 | 99,510 | ||||||||||||||
Net interest and other income | 1,269 | 4,199 | 2,174 | ||||||||||||||
Income before income taxes | 98,796 | 75,728 | 101,684 | ||||||||||||||
Provision for income taxes | 22,729 | 17,599 | 23,534 | ||||||||||||||
Net income | $ | 76,067 | $ | 58,129 | $ | 78,150 | |||||||||||
Earnings per common and common equivalent share – basic | $ | 3.69 | $ | 2.78 | $ | 3.75 | |||||||||||
Earnings per common and common equivalent share – diluted | $ | 3.68 | $ | 2.77 | $ | 3.74 | |||||||||||
Weighted average common and common equivalent shares outstanding – basic | 20,599 | 20,904 | 20,845 | ||||||||||||||
Weighted average common and common equivalent shares outstanding – diluted | 20,653 | 20,990 | 20,910 | ||||||||||||||
Cash dividends declared per share | $ | 0.08 | $ | 0.08 | $ | 0.08 |
Common Stock |
Additional
Paid-In
Capital
|
Treasury Stock |
Retained
Earnings
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Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||
Balance at January 1, 2018 | 26,859 | $ | 269 | $ | 58,192 | (6,027) | $ | (91,056) | $ | 673,940 | $ | 641,345 | |||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 78,150 | 78,150 | ||||||||||||||||||||||||||||||||||
Exercise of stock options | 42 | — | 1,186 | — | — | — | 1,186 | ||||||||||||||||||||||||||||||||||
Stock-based compensation | 5 | — | 1,444 | — | — | — | 1,444 | ||||||||||||||||||||||||||||||||||
Dividend declared—$0.08 per share
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— | — | — | — | — | (1,669) | (1,669) | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 26,906 | 269 | 60,822 | (6,027) | (91,056) | 750,421 | 720,456 | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 58,129 | 58,129 | ||||||||||||||||||||||||||||||||||
Exercise of stock options | 22 | — | 568 | — | — | — | 568 | ||||||||||||||||||||||||||||||||||
Stock-based compensation | 11 | — | 1,619 | — | — | — | 1,619 | ||||||||||||||||||||||||||||||||||
Dividend declared—$0.08 per share
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— | — | — | — | — | (1,676) | (1,676) | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 26,939 | 269 | 63,009 | (6,027) | (91,056) | 806,874 | 779,096 | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 76,067 | 76,067 | ||||||||||||||||||||||||||||||||||
Exercise of stock options | 69 | 1 | 2,998 | — | — | — | 2,999 | ||||||||||||||||||||||||||||||||||
Stock-based compensation | 17 | — | 1,878 | — | — | — | 1,878 | ||||||||||||||||||||||||||||||||||
Dividend declared—$0.08 per share
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— | — | — | — | — | (1,649) | (1,649) | ||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | (441) | (20,662) | — | (20,662) | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 27,025 | $ | 270 | $ | 67,885 | (6,468) | $ | (111,718) | $ | 881,292 | $ | 837,729 |
2020 | 2019 | 2018 | |||||||||||||||
Operating Activities | |||||||||||||||||
Net income | $ | 76,067 | $ | 58,129 | $ | 78,150 | |||||||||||
Adjustments to reconcile net income to net cash
provided by operating activities:
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Depreciation and amortization | 19,459 | 17,707 | 16,513 | ||||||||||||||
Deferred income taxes | 6,429 | 3,376 | 3,033 | ||||||||||||||
Stock-based compensation attributable to equity awards | 1,878 | 1,619 | 1,444 | ||||||||||||||
Other | 470 | 754 | (187) | ||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable | (53,383) | 12,255 | (6,468) | ||||||||||||||
Inventories | (2,638) | 12,683 | (10,002) | ||||||||||||||
Other assets | (746) | (229) | 627 | ||||||||||||||
Trade accounts payable and accrued liabilities | 7,580 | 2,040 | 165 | ||||||||||||||
Current income taxes receivable / payable | 2,346 | (2,213) | (1,685) | ||||||||||||||
Net cash provided by operating activities | 57,462 | 106,121 | 81,590 | ||||||||||||||
Investing Activities | |||||||||||||||||
Purchases of property, plant and equipment | (86,082) | (52,484) | (26,181) | ||||||||||||||
Proceeds from sale of assets | 91 | 28 | 116 | ||||||||||||||
Net cash used in investing activities | (85,991) | (52,456) | (26,065) | ||||||||||||||
Financing Activities | |||||||||||||||||
Purchase of treasury stock | (20,662) | — | — | ||||||||||||||
Borrowings from revolver | — | — | 67,300 | ||||||||||||||
Repayments to revolver | — | — | (67,300) | ||||||||||||||
Proceeds from issuance of common stock, net | 2,999 | 568 | 1,186 | ||||||||||||||
Dividends paid | (1,650) | (1,673) | (1,668) | ||||||||||||||
Net cash used in financing activities | (19,313) | (1,105) | (482) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | (47,842) | 52,560 | 55,043 | ||||||||||||||
Cash and cash equivalents at beginning of period | 230,965 | 178,405 | 123,362 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 183,123 | $ | 230,965 | $ | 178,405 |
Allowance for Losses Progression (In Thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Beginning balance January 1 | $ | 1,801 | $ | 2,030 | $ | 2,028 | |||||||||||
Write-offs of bad debts | (286) | (230) | — | ||||||||||||||
Collection of previous write-offs | — | 1 | 2 | ||||||||||||||
Adjustment to allowance for credit losses | 700 | — | — | ||||||||||||||
Ending balance at December 31 | $ | 2,215 | $ | 1,801 | $ | 2,030 |
In Thousands | 2020 | 2019 | |||||||||
Raw materials | $ | 40,842 | $ | 25,882 | |||||||
Work-in-process | 30,311 | 25,381 | |||||||||
Finished goods | 88,544 | 83,222 | |||||||||
Total | 159,697 | 134,485 | |||||||||
Adjust to LIFO cost | (67,375) | (44,801) | |||||||||
Inventory | $ | 92,322 | $ | 89,684 |
In Thousands | 2020 | 2019 | |||||||||
Sales rebates payable | $ | 19,317 | $ | 16,622 | |||||||
SAR Liability | 5,343 | 3,087 | |||||||||
Property taxes payable | 4,427 | 4,011 | |||||||||
Accrued salaries | 4,096 | 7,924 | |||||||||
Other accrued liabilities | 3,683 | 3,143 | |||||||||
Total accrued liabilities | $ | 36,866 | $ | 34,787 |
In Thousands | 2020 | 2019 | 2018 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 14,277 | $ | 12,675 | $ | 18,523 | |||||||||||
State | 2,024 | 1,549 | 1,978 | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | 6,285 | 3,260 | 2,603 | ||||||||||||||
State | 143 | 115 | 430 | ||||||||||||||
Total income tax expense | $ | 22,729 | $ | 17,599 | $ | 23,534 |
In Thousands | 2020 | 2019 | 2018 | ||||||||||||||
Amount computed using the statutory rate | $ | 20,747 | $ | 15,903 | $ | 21,354 | |||||||||||
State income taxes, net of federal tax benefit | 1,732 | 1,314 | 1,903 | ||||||||||||||
Other | 250 | 382 | 277 | ||||||||||||||
Total income tax expense | $ | 22,729 | $ | 17,599 | $ | 23,534 |
In Thousands | 2020 | 2019 | |||||||||
Depreciation | $ | (35,869) | $ | (27,547) | |||||||
Inventory | 503 | (1,970) | |||||||||
Allowance for credit losses | 499 | 406 | |||||||||
Uniform capitalization rules | 276 | 265 | |||||||||
Other | 754 | 1,438 | |||||||||
Net deferred income tax liability | $ | (33,837) | $ | (27,408) |
In Thousands | 2020 | 2019 | 2018 | ||||||||||||||
Stock options | $ | 561 | $ | 635 | $ | 1,209 | |||||||||||
Stock appreciation rights (“SARs”) | 3,377 | 2,906 | 894 | ||||||||||||||
Restricted Stock Awards | 1,101 | $ | 907 | $ | — | ||||||||||||
Stock grants | 244 | 269 | $ | 235 | |||||||||||||
Total stock-based compensation expense | $ | 5,283 | $ | 4,717 | $ | 2,338 |
Number
of Shares |
Weighted
Average Exercise Price |
Weighted
Average Remaining Contractual Term |
Aggregate
Intrinsic Value (In Thousands) |
||||||||||||||||||||
Outstanding at January 1, 2020 | 393,500 | $ | 42.36 | ||||||||||||||||||||
Exercised | (68,972) | 49.80 | |||||||||||||||||||||
Forfeited/Canceled | (10,028) | 51.63 | |||||||||||||||||||||
Outstanding at December 31, 2020 | 314,500 | $ | 41.82 | 5.1 years | $ | 5,898 | |||||||||||||||||
Vested and exercisable at December 31, 2020 | 226,000 | $ | 40.03 | 4.5 years | $ | 4,642 |
Year Ended December 31, | ||||||||
2018 | ||||||||
Risk-free interest rate | 2.36 | % | ||||||
Expected dividend yield | 0.16 | % | ||||||
Expected volatility | 31.40 | % | ||||||
Expected lives | 5.0 years |
Cash-settled SARs |
Weighted
Average Exercise Price |
Weighted
Average Remaining Contractual Term |
Aggregate
Intrinsic Value (In Thousands) |
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Outstanding at January 1, 2020 | 565,300 | $ | 48.18 | ||||||||||||||||||||
Granted | 227,500 | 58.77 | |||||||||||||||||||||
Exercised | (85,500) | 57.52 | |||||||||||||||||||||
Forfeited/Canceled | (27,800) | 53.01 | |||||||||||||||||||||
Outstanding at December 31, 2020 | 679,500 | $ | 51.99 | 7.7 years | $ | 5,831 | |||||||||||||||||
Vested and exercisable at December 31, 2020 | 113,900 | $ | 47.31 | 6.6 years | $ | 1,511 |
Weighted Average | ||||||||
Number of Shares | Grant Date Fair Value | |||||||
Outstanding at January 1, 2020 | 50,000 | $ | 55.00 | |||||
Granted | 37,000 | 58.90 | ||||||
Vested | (12,000) | 55.94 | ||||||
Unvested at December 31, 2020 | $ | 75,000 | $ | 56.77 |
In Thousands | 2020 | 2019 | 2018 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 76,067 | $ | 58,129 | $ | 78,150 | |||||||||||
Denominator: | |||||||||||||||||
Denominator for basic earnings per share – weighted average shares | 20,599 | 20,904 | 20,845 | ||||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Employee stock awards | 54 | 86 | 65 | ||||||||||||||
Denominator for diluted earnings per share – weighted average shares | 20,653 | 20,990 | 20,910 |
In Thousands, Except Per Share Data | 2020 | 2019 | 2018 | ||||||||||||||
Weighted average anti-dilutive stock options | 136 | 118 | 181 | ||||||||||||||
Weighted average exercise price per share | $ | 51.20 | $ | 51.05 | $ | 50.20 |
Three Months Ended | |||||||||||||||||||||||
2020 | March 31 | June 30 | September 30 | December 31 | |||||||||||||||||||
Net sales | $ | 302,794 | $ | 253,631 | $ | 339,700 | $ | 380,823 | |||||||||||||||
Gross profit | 45,773 | 36,499 | 53,459 | 58,804 | |||||||||||||||||||
Net income | 18,607 | 12,347 | 21,012 | 24,100 | |||||||||||||||||||
Earnings per common share – basic | 0.89 | 0.60 | 1.02 | 1.17 | |||||||||||||||||||
Earnings per common share – diluted | 0.89 | 0.60 | 1.02 | 1.17 |
Three Months Ended | |||||||||||||||||||||||
2019 | March 31 | June 30 | September 30 | December 31 | |||||||||||||||||||
Net sales | $ | 314,707 | $ | 336,866 | $ | 321,169 | $ | 302,252 | |||||||||||||||
Gross profit | 41,326 | 45,910 | 42,988 | 35,747 | |||||||||||||||||||
Net income | 13,411 | 17,782 | 16,401 | 10,535 | |||||||||||||||||||
Earnings per common share – basic | 0.64 | 0.85 | 0.78 | 0.50 | |||||||||||||||||||
Earnings per common share – diluted | 0.64 | 0.85 | 0.78 | 0.50 |
Exhibit Number | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
4.1 | Form of certificate for Common Stock (filed as Exhibit 1 to the Company’s registration statement on Form 8-A, filed with the SEC on June 4, 1992 and incorporated herein by reference). | |||||||
4.2 | ||||||||
10.1* | ||||||||
10.2* | ||||||||
10.3* | ||||||||
10.4* | ||||||||
10.5* | ||||||||
10.6* | ||||||||
10.7* | ||||||||
10.8* | ||||||||
10.9* | ||||||||
10.10 |
10.11 | ||||||||
10.12 | ||||||||
10.13 | ||||||||
10.14 |
Credit Agreement dated February 9, 2021 by and among the Company, Bank of America, N.A., as administrative agent, swingline lender and letter of credit issuer, Wells Fargo Bank, National Association, as syndication agent and the other lender parties thereto. (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on February 16, 2021 and incorporated herein by reference).
|
|||||||
10.15* | ||||||||
23.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File - formatted as Inline XBRL and contained in Exhibit 101 |
Date: February 22, 2021 | ENCORE WIRE CORPORATION | ||||||||||
By: | /s/ Daniel L. Jones | ||||||||||
Daniel L. Jones
Chairman, President and Chief Executive Officer
|
Signature | Title | Date | ||||||||||||
/s/ DANIEL L. JONES |
Chairman, President and Chief Executive Officer
(Principal Executive Officer)
|
February 22, 2021 | ||||||||||||
Daniel L. Jones | ||||||||||||||
/s/ BRET J. ECKERT |
Vice President-Finance, Treasurer,
Secretary and Chief Financial Officer
(Principal Financial and Accounting Officer)
|
February 22, 2021 | ||||||||||||
Bret J. Eckert | ||||||||||||||
/s/ GREGORY J. FISHER | Director | February 22, 2021 | ||||||||||||
Gregory J. Fisher | ||||||||||||||
/s/ GINA A. NORRIS | Director | February 22, 2021 | ||||||||||||
Gina A. Norris | ||||||||||||||
/s/ WILLIAM R. THOMAS | Director | February 22, 2021 | ||||||||||||
William R. Thomas | ||||||||||||||
/s/ SCOTT D. WEAVER | Director | February 22, 2021 | ||||||||||||
Scott D. Weaver | ||||||||||||||
/s/ JOHN H. WILSON | Lead Independent Director | February 22, 2021 | ||||||||||||
John H. Wilson |
Number of Restricted Shares that Vest | Vesting Date | ||||
20% of the Restricted Shares | First Anniversary of Grant Date | ||||
20% of the Restricted Shares | Second Anniversary of Grant Date | ||||
20% of the Restricted Shares | Third Anniversary of Grant Date | ||||
20% of the Restricted Shares | Fourth Anniversary of Grant Date | ||||
The remaining Restricted Shares | Fifth Anniversary of Grant Date |
Number of Restricted Stock Units Vesting | Vesting Date | ||||
1/3 of the Restricted Stock Units | First Anniversary of Grant Date | ||||
1/3 of the Restricted Stock Units | Second Anniversary of Grant Date | ||||
Remainder of the Restricted Stock Units | Third Anniversary of Grant Date |
1) | Registration Statement (Form S-8 No. 333-238025) pertaining to the Encore Wire Corporation 2020 Long Term Incentive Plan, and | ||||
2) | Registration Statement (Forms S-8 Nos. 333-175634 and 333-217798) pertaining to the Encore Wire Corporation 2010 Stock Option Plan; |
Date: February 22, 2021 | By: | /s/ Daniel L. Jones | |||||||||
Daniel L. Jones
Chairman, President and Chief Executive Officer
|
Date: February 22, 2021 | By: |
/s/ Bret J. Eckert
|
|||||||||
Bret J. Eckert
Vice President – Finance, Treasurer, Secretary and Chief Financial Officer |
Date: February 22, 2021 | By: | /s/ Daniel L. Jones | |||||||||
Daniel L. Jones
Chairman, President and Chief Executive Officer
|
Date: February 22, 2021 | By: |
/s/ Bret J. Eckert
|
|||||||||
Bret J. Eckert
Vice President – Finance, Treasurer, Secretary and Chief Financial Officer |