Encore Wire (WIRE) 26 Apr 232023 Q1 Earnings call transcript

Good morning. My name is Emma and I will be your conference operator today. At this time, I would like to welcome everyone to the Encore Wire Corporation First Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator

may conference. you begin Eckert, your Bret

Encore's Wire. March will Chairman and XX, may the review, Thanks Wire Bret we review Corporation XXXX. any morning President and of Board. Eckert Daniel for morning questions the Encore the have. welcome minute, to Encore we Officer Quarterly Financial Vice and Emma. me Jones, In After President CEO this is Good results a first Executive Chief take With Conference Call. you the will of financial quarter ended financial I'm

each indicate Before be throughout we review might forward-looking. the financials, we cause statements could discussed from with to certain to conference as statements today. statement such let all attempting be may and me materially advise certain we that results order to legislation be that certain of risks In uncertainties forward-looking, involve those to differ call, that considered instead this making identify and comply you actual that securities particular

refer comparable reports during Accepted a presented supplemental which financial and most accordance with investors in are Generally the for information call the of believe to of to website. news our Accounting company's directly conference Also non-GAAP discussed each this EBITDA, SEC including useful financial these reconciliations for Principles detailed measures discussion measures we be more posted to releases of I and risks uncertainties. you on

some to over for call opening Daniel? the Daniel turn now remarks. I'll

first higher XX, fairly our The strong in on confidence domestic uncertainties. the support. remained in first continued margins. Wire. while prices for with your coupled call raw consecutive persistent in of other Good the flat. quarter, metal copper and elevated We Stable investment, tightness the Thank morning, and costs quarter of availability the for joining materials quarter in global drove And demand continued everyone. Encore eighth quarter your XXXX interest for the you March us and marked ended results appreciate

manner. suppliers first a to of high level, margin the fill gradual positioned of which key on By us to quarter customer service unbeatable providing to our higher values Our and continue execute perform timely remained at abatement continuing meet ongoing rates, in XXXX. favorably a customer in demand core

our efficiency in to continue needs. and current in our competitive campus. speed-to-market with that serving projects believe our evolving remain relationships and operational -- deep across integration business agility, committed I focused advantages our vertical supplier serving reinvesting to We and increasing our customers' capacity, on planned remain

to significant quarter. XXXX. as decreased remain spreads also compared ended of a evidenced Copper the We committed of quarter share flat to sequential XX, quarter quarter the on in X.X% our shareholder the unit return capital volumes December XXXX Copper repurchases in were fourth XXXX. quarter by as first the versus basis first

the well-positioned remains economic Wire Encore believe environment. share market to continue in We current capture to

our competitive As we our rates a superior business near-term our we to including focused position. in improving We our the company as integration long-term and remain enhance for position continue order vertical environmentally address responsible challenges, opportunities that sustainable deep fill on our believe industry. the

us As contractors, deliveries orders depend to electrical come coast-to-coast. distributors in on for from continue can our quick

now Bret? results. to financial cover the over to I'll turn Bret the call

the to XXXX. of first XXXX, was decrease the compared quarter first by in sales the compared The the the price of first decrease sales unit the a first to of ended Thank versus the XXXX March XXXX XXXX. first quarter net volume of of driven XXXX. of Aluminum quarter $XXX.X quarter net were represented Copper million for was first quarter first Net selling average wire in XXXX. quarter XX, you, Daniel. million quarter the XX.X% in in of sales for $XXX.X flat in

quarter purchased was average pound decreased compared to of XX.X% percentage per XXXX the first profit X.X%. selling the of of copper quarter of average the pound the price of XXXX quarter of in decreased first XXXX. sold first for to XX.X% copper The in first quarter Gross XXXX, compared cost wire the XX.X% while

This by a driven compared the price first somewhat XXXX. margin average resulted of resulted copper of the gradual abatement quarter the gross selling spreads decreased of quarter, increased to above the aluminum in in by the first the decrease in primarily spreads, in in quarter which noted offset XXXX profit

Appreciation expense Stock SARs expense $X.X million compared our stock SG&A increase booking by of SARs in XXXX million the increase in driven increase to primarily approximately at $XX an XXXX in due an December increase expenses the XX, price quarter first March to in quarter to The quarter benefit We Rights XXXX in XXXX. was in recorded compared in in or in the the of period-over-period. first $XX.X SARs million resulting XX,

was the first plan No versus SARs share XXXX. granted a January quarter $X.XX XXXX of XXXX the with to replaced was quarter diluted of in per were in of $XXX.X earnings $XXX.X in as versus first of XXXX first XXXX. million common plan. subsequent $X.XX Fully quarter Net million of income this for first the cash were quarter deferred the

We navigating margin stable continued strong, fluctuating and demand, while XXXX more gradual costs abatement. off started material

prices and We headwinds with also in and banking globally. faced February March domestically the

strong to Our deliver team challenges quarter. rose above the another

of ongoing suppressed in elevated the in availability spreads uncertainties tightness skilled of kept of certain and availability overall materials, raw quarter global the labor first the XXXX. continued Persistent

and stated, marks consecutive of margins spreads. the Daniel this As eighth elevated quarter

remains sheet balance strong. very Our

long-term We have no debt.

in of line the million Our untapped. cash $XXX.X quarter. the remains We at of end had credit revolving

a of of our a total XXXX, of total the first quarter Since average of price repurchased million. for shares of $XXX.XX quarter, outlay million. of first the have X,XXX,XXX During $XXX.X repurchased shares outlay we stock common XXX,XXX an stock at we cash $XXX.X common our cash for

$X.XX We also during declared dividend the a quarter. cash

repurchase shares repurchase of Board March that of with the two forward up the for through In XXXX, addition remaining shares Directors under of February to XXXX common million authorization. in extended stock our XX, authorization X,XXX,XXXX

broadening of and focused manufacturer low-cost sector The in the a as incremental our in July announced growth. drive to investments manufacturing XXXX capacity position on increasing in earnest continue

to In applications. XLPE XXXX, cross-linked wire many we vertical began compounding used and oil wastewater insulation related centers, new including is XLPE installation. gas, and deepen facility utilities integration and wind or treatment a cable solar to construction applications transit, in on state-of-the-art and facilities, data polyethylene

anticipate our as well XXXX capacity We in wire processes new costs and a substantially manufacturing the vertical facility will Capital manufacturing be integration third the further completed environmentally the facilities modernize sustainable in XXXX. by through to of expand reduce position and and improve company. select our quarter to as as responsible efficiency of XXXX increase end spending will

in and in million quarter first XXXX $XX.X expenditures of the XXXX. capital million Total $XXX.X were

to total XXXX, expenditures million to $XXX We capital to $XXX in and $XXX range $XXX expect million from $XX XXXX. to million million XXXX million in $XXX in million

to investments with continue fund reserves expect to existing and cash flows. We operating these cash

a I Daniel final will now remarks. over turn for few to the floor

Bret. you, Thank

well in integrated and to in operational positions quarter XXXX. our low-cost success I business us advantages scale which attests market start us business provides the compared first with model, consistent model strong Our further thrive single-site sector. believe strength under multi-location the standard current efficiency to continues one-campus the conditions. models for to The our vertically of our

customers' needs. Encore. continue We of to unmatched supplier commitments the level operational our of This our availability advantage agility certain on have to tightness and serving raw success materials, exceptional persistent long-term and deliver the market Despite partners suppliers. giving wouldn't competitive us of remains evolving speed performance this and without to a our consistent

of increased service and The investments model, employees. labor our a many that market for the also our wellness through tight to grow Operationally, enhanced and constraint on cost companies. capacity, remains limiting focused we and continue health reduced

Looking remain strength ahead solely committed in the navigate confident to and in the to we operations of as stand the Encore values nimble customer team our I execute upon of unbeatable the any service, coast challenges place we coast. company, in ready deliveries quick to path. remain core

thanking by to employees and close our excellence. quality to work safety, want commitment for hard their and I

Our continued outstanding not their happen success would contributions. without

in position our choice their employer shareholders team as I Our strong to as support. have for sector. also invest allowed want continued opportunity Encore us financial our results we thank an to incrementally the in of the

we'll from now listeners. our Emma, And take questions

you. Sidoti Romero Thank Instructions] first Julio Your with of Company. comes [Operator from line the question &

now open. line Your is

Daniel. morning, Bret. Thanks. morning, Good Hey. Good

Hey, Julio.

morning. Good

off there? the quarter speak think prepared realized flat some remarks to start I volumes with in February in crisis the year-over-year, could headwinds you Bret, maybe what volumes banking tempered the To if Hey. in copper the March. you on called out and

that at If elaborate quarter? all, you impact into second the and continued can impact on that has

leans to dollar touch and the the in You've into play the banks even Is We anything on globally, what not with got interest country the Well, on XX. a like definitely March right? everyone as with regard saw February rates. you March weaker? know post got always what Julio, you uncertainty happen lot stronger? of going into to there with was going as that. in to was That commodity really and with we're the was dollar Is to going on saw

copper some those still So tight more you fluctuation saw been very, the shape prices. is of Even copper is and very, though in very critical. availability never

had of experienced. we bit little that so a And that headwind

look saw, is inventory a bit their which fluctuation times see want take little lot because bit, balance. and at We They inventory down of also take to in what -- distributors copper levels they the their little those tend a a to happens a during get leaner.

thing XX down in days. That's mind. see did a distributor we to my So actually good come XX inventories

coming our the model. order, They a very into lot business immediate You're immediate into second have leaner plays inventories, quarter. ship well which

you quarter. And so I like that position second into the head as

Got it. I there. detail the appreciate

above quarter run to say volumes guess I fair got So first available to rate? the capacity generate you've

adding take you're going at Absolutely. a I balancing always and really been mean volume margin. look we've capacity, to but

looking utilization. your to and optimize capacity You're

and in on customer important margin and to You've service to continue got profitability is that process. focus

those so on order-by-order an decisions basis. made are And

to of trend about $XX release called appreciation it. the press the stock then Got rights. talk the I Maybe maybe you SG&A, expect for impact to of out the SG&A know year? million turn how to And in of you remainder the

been think I it's tracking.

indication. of but probably in a last wage year's some year is And we'll from last There's even inflation. of saw year that you that into bit coming see had this good last think I it everyone some year, -- to a little numbers.

of $XXX is away stock went end price at from SARs just The March. to change we from of at December went can't we It's $XXX them. end the The the why expense something and control.

delta that, so is you every quarter. single revalue and up pick And what

of so quarter back And some get going things settle how you'll depending out. next into that potentially on

been to But freight's the of going standard better. that's availability cost ebb the So flow. commission's looking better the and is freight

I I good all representative think last was number. think see -- year in going So to a you're pretty

with Really it I'll on circle pass helpful, back any and follow-ups.

Julio. Thanks

you. Thank

from from line comes Davidson. question next Your the D.A. Brent of Thielman

now is line open. Your

hearing you're Maybe still morning. Daniel, what volume feel overall making? Julio's picking up still from Good I'd the making in customers. the environment on And Thanks. the love you you're you've just been supports investments Hi. like just a hear capacity to and do demand about, that question that to

Well, that frequency we about there's, still pretty will. saw quarters to side. areas -- the quotes couple the residential going of hit, The along piece is that good the The good. if still specifically are commercial is of biggest back you market industrial talked a still

the being a the But whatever pushed as week, quarter, discussed be. had out of might it month, $X.XX projects a fluctuating out prices quarter that a volatility during quarter get some the $X.XX may in much are Comex the again, or that to as out with about do

that that not -- We we is for we're capacity Those we are is, our model gearing up where service capacity things our we toward feel know where The strength what certainly specific after. one have geared happen. quarter.

coupled We But adding is service started which we're the or quarter for which to week bank fantastic about after forces a what we piece. lot really opportunity XX lasted you've again of giving with of catch-up not is the items some confidence an that Comex days. do that the the got in geopolitical volatility have that the was capacity folks on issue when a

I'm comp industrial commercial. pretty where pause pretty volume there that the first and There feel. on last with could you doing quarter, Each versus segments ended as far is one bullish as happening in the real going numbers. was those the what's forward well. that happy year's But a of And see and

spots. pace about along geographical we and are most There other the part are the happen. commercial for both industrial are pockets versus moving the that still hot thought that at pretty would the But

considering up? customer or ramps of call into construction inventory distributor low second the you especially quarter your would when levels I the sort And is guess unusually this season

towards second that with side quarter you copper [ph]. definitely they Julio be the have the the When movement see They're side like, in you and on interest uncertainty into rates going the of may leaner it.

bit come demand. You get be responsive to little that you got can unusual they the to got lean that off But takes you've right? it sheet. a like partner see you it's a typically you summer build they not that to it -- balance the so and as this a start particularly can in volatility when So into deliver copper know months their in

balance mark we go on inventory Bret bit the last raw down. should material are sort quite ultimately infer quarter second that any in larger and presumably and your you're year than the just finished balance the And Can last a that that sitting higher quarter? was especially of didn't goods in QX costs

even cable shape The we bit as the get to is been the more is shape so just this in I right? all regard the XXXX, and do can get continued a Well, this, the as there copper me customer May Having right? goods. it. we've well, shape, closer little service quarter at other raw I balance mean bit of opened flat. then tight gives build a about challenged levels, key service copper end And market it, important to the right? more we were you as no. can that. make of what -- color, having is in in a it was got the talked we've to any raw it for when fairly to we've you up more little super And us sheet flexibility business though in want, needing width as and -- it tell more sustain materials I to build since lean right, speed this a in if to is finished can center the to with And commitment was you inventory I to look inventory is as is

all you the that's sheet what in so of inventory. And see balance

were percentage aluminum of Okay. favorable, revenue. from still guess mean And a the I absolute then overall same it looks I quarter, like basis fourth down aluminum was but an spreads on as total revenue

past about? just of Sort of aluminum of from on Because a of to margin a benefited second that would have QX? distributor margins be was comparison caught part two the you in parts few your that aluminum has that impact that gross question. sort quarters. destocking I then big the Did some think also the up And talked

little both goes it think I a subject more to ways. imports. Aluminum is bit

overall you, in accretive spreads year. saw right likely I'd of still they're the in they're XXXX, imports to although the markets, talked international copper of last China the always that still right And catch year, peaking strong see I've to compared quarter about up But last results. peak aluminum up very tell it particularly have an may so probably tends last copper. of very spreads first the aluminum with up did like some opening more you gradual. being would to be spreads I to and increase were impact fourth June does than of and year. quarter some Aluminum

that I'll Okay. you us get and into volume second seeing quarter and guidance. the including flat Bret, don't what operating prevent first leverage much understand Daniel quarter the would in had big just margin lower of Because wasn't getting one Maybe queue. year-on-year. could from expanding back from Maybe understand you kind pretty weren't spreads more you help the give quarter? this factors margins where some you I you lower

be margin think we just going the and I'm expansion. governor into second move So what's those factors to trying about on the quarter as to

plus how are at The for gradual bell key a And to is years' timely the deliver going last a back of able always it, a shape It continues up peers goods years talked market comes you in the going be mean abatement on significant the lower if margins, couple in level. that could first, tight down. I is. to bit manner how it the so the in right? ability in is look at conditions now, to impact of a little that curve starts finished to comes Well, know and third and the we've as managing be metal margin probably And a two you second little it, bit the about tightness right our you to right? dictate and throw

mean is I competitor what that by rod know You one There's rod. own other only has their mill. that

internationally, world all And buy. countries so if over the you're you need get going can't have to and look the you you to to rod domestically

You name a today and estimates could be China way into will it, That's Copper come XX% you up -- to the be right? can limiting copper a that that's to go of play. tell so All rod get going factor. world's consumption. to now long to

to ground. the got that's and As they X.X moving less to going draw year on this get start metal more that than bullish you've get above days

all look you not better. gotten labor as play any So those factors come Skilled to has into convert.

it's think norm. the I new

we And to impact basis. parameters every And margins order manage all come going on something what fits obviously looking go-forward the -- that. work profitability service and on. But it lean putting on that is that every and within and operation make on that's we'll continue ability single a first. in into plays do sure go that margin so we're the to And for into to customer to

on. Okay. got I I but will Thank few you. more, a pass it

Thanks, Brent.

the Connors line Your next Ryan with from Northcoast Research. question of comes

is line Your now open.

which from my was I this that one to a there tightness response of the picture nature question Good segue your a in copper question previous just just morning. for about bigger morning. taking had actually markets. Thanks but

– material scrap own you I with a in do markets But recycled and purchase that external around yourself the -- scrap scrap question material might related raw seen program other my raw to raw in have base? your investing to sort other players have up build both for so compete side know recycled for that material. processing component availability -- you color you're of in? in-house. you is of investing capacity And you was any Have something there. try Curious as

No Yes. question. it's a great

got you we causing you deeper projects that is out sense, saw automobiles buying were got and X, right? X.X Comex hand coming hand of scrap. of scrap ground, lot for be of point above typically lot tight. only makes going for supply days in People it There's is they it to paying of into As because one when were The really the scrap that very as generated. lot. you It that and overseas China many a there's navigate as scrap this It's not At goes pandemic to seeing which the a get one supply they're paying. right? the were scrap weren't things going you a a scrap going discount

we but ability furnace the have the highest it to We in buy quality. only our process

so goes the And tight. It tightness hand-in-hand extremely of in availability the with scrap is itself. metal

scrap. did I year we so that of side is buying talk about we flip pure The run faster. less can cathode. And last were

of there's give so take at look that. bit you as a and a And

And is cathode very so evaluate tight. to as the scrap scrap. scrap we'll spread very, market buy between the Comex but continue rather I'd And tightens, and than that

point looming gap. closer get go look get That's not past for think in right? it's not continuing at economical just at Comex. to the going It's after that folks I to scrap availability to you copper maybe scrap, to help time of as the supply there's going to pursue. And XXXX outlook a

appreciate that. your I for time. Okay. Thanks

from of comes Voss question line next Eli [ph]. Your the

facility Do in higher see? regarding I taking a implications that? or see the should completed building you revenue for there What much. little Can question. more new quarters. out evaluate you be you program are very a question Thank QX. question planning capacity margins you're from run And share on a might Thanks next the which which buyback you second have is that the in new the spare is only since two you do one?

that. question. you Thank for Perfect

question. with second I'll start the So

You can year. -- last you look at

also remainder to over to repurchase from So you balance up of million March a March the a two year the bought know the than us back got a year. actually two Board first the in authorization, we little XX,XXXX as we to at that of little year We then back authorized to million yes the the leaving and shares through quarters. Board time refreshed the X.X XXXX. Similar two last XXXX authorization a million purchased had full in And the authorized that shares time two the million. at Board more for ago through they point

when they a regard meet single something authorization to it's with we the so repurchases the evaluate how then where decision every we'll remaining market and to that talk sit in and act. Board to meeting the Board with to as And them we makes the and want

infrastructure in grid takes transit into we And right look right? you and and demand wind a deepening talked in With lot regard oil from facility think of see you and renewable, or -- potentially solar you've to about in in treatment, about got investments insulation. gas. and right data to the the XLPE when All XLPE being where that got is part that's to utilities, polymer vertical that hardening to and regard you've this centers what wastewater going. the a strength The integration talked with we've cross-linked are made

the a always a we we much it or a also buy ways And can company in a as can versus gives we can that, so broader manufacturing find me than balance cheaper make And you it supply. if put facility to then have access to buy to And make. it.

be longer can else's leverage capacity, my limited offers. into no to able So the lean by to someone I what market own

now and have of is got facility. strategy. vertical our own own We've makes we'll our it our mill XLPE and plastic PVC integration PVC part that own insulation our So pellets

side picks the insulation. other it the up of So

one. So question follow-up on a that maybe

share is investing company in with idea? great. First, flush whatever, the of use CapEx, as Reduction And for Could cash, going another you CapEx not second how Inflation an or only but to since doing is your or envision evaluate the buybacks, did facility going Act? you or is you have quite the terms in making which from into or the copper one takeover it is excluded profit a one mines

Yes.

our regard we -- today, the made to focused capital stay we to And cost over you modernize we general increase we get continuing and -- deepening five a wire with the to vertical vertical years. or spending, we both release our in until pretty see So to typically it comments and closer press select reduce and well are next but manufacturing opening, efficiency. capacity three to into integration, deepened and as facility a facilities as

And we'll so, as get projects all specifics And mix. about that continues. we the closer, in other announce more

in spending. million, million-type as opportunities. What $XXX year, You're $XXX update second roll additional was we this spending any million, your $XXX million another And for we'll question? on

profit much be how even If Reduction I stuff, think you're and and Inflation Because needed in the gas in Act? for the spot et looked oil is and which cables in you prime windmills a cetera. to you going can from or

what might to vehicles right? question. in look the say, what's like? about to right? look of see what really I what you country, think the US X% are okay, look Brent's think in and centers continued that of and out and do at Absolutely. you expansion the EVs, you data renewables this the think when goes I electric, all AI about you to market It back everything It mean, back gets

But got plants. battery to that, first you've to get build to

to got the build the facilities cars. You've build to

You need more semiconductors.

the vehicle right? the vehicle, all and in electric then And takes plants, semiconductor wire that charging capacity get got is the cable. you US so, not you've to electric great, And once build

not a gas You're a with the to drink, stopping charge the to a restroom at vehicle. major chance station at right? stopping buy and odd You're locations

charging to is of mainstream. has majority station more The that So a get copper.

You it with aluminum. power

the the hardening a all looming infrastructure, there of take copper is gap the supply four wire lot in a so, and going headed to regard with next electrification And years. in the with cable, to -- the out the of three and grid things to

the that for and And to build want so, market. when the additions look to where we those we in capacity are constructs we look

you. Thank Yes.

this your guess, broaden to here. base lot Europe. in I should of shareholder here, mind show a the topic You great in everybody's go there's because is road on topic

for you Appreciate Thank Fantastic. that. it.

you. Thank

comes Mike line question the of from next Your [ph]. Schenck

Your line now open. is

morning. Good

Good morning, Mike.

process little amount on that I be the bit as share. which a in to thinking, really price under the $XXX shares, you I caused aggressive, of that which go is question applaud, both a believe you paid on My averages and the so through QX, as well actually your

go and in future your forward, you. so you this flows? demonstrate through go If outlook quarter? that we does at the you why a As confidence Thank the cash comment and got aggressive process could you

No, in third we've shares, XXX,XXX bought back listen, think year. We been pretty consistent. last Yes. I think, the I quarter

what We continue the capital of in think to of to and see process. level return it value we as gives you do some a execute on this confidence Board's We probably the authorization. shareholders, you as go through

really an in history. acquisition three done our levers. have never We only We've

got cash of to three next five CapEx. very use plan our balance, at you've look capital We've the you a got expenditure robust when so, over And years.

buybacks. the look look $X.XX at is which dividend, You a only you quarter stock at and

side out lot of benefit is think we And that there's the buyback a and stock from confidence there. the shows

the think up for million with you quarter, X Board So in did the can interpret. shares more we and the that by authorization activity that, to first I

That you. sense. I I And but makes there it. I've I McKinney. XX appreciate ago, acquisitions. no philosophy probably visited understand years the have been on It in was

is been And growth well story doing thanks think keep what doing the exceptionally it. you're organic executed. I for

should You back... come

Okay. that. I you. might Thank do

you. Thank

D.A. comes of with the next Thielman Davidson. Brent Your from line question

open. now is line Your

the situation market? and had copper with tight a talk deal of movement of just with saw Hey, attempted mean your you the you Could you in how customers traction given price is I thanks. in prices sort erratic lot to Hey, quarter. Daniel, especially increases, about this the last supply

point, Good Brent. Yes.

off saw You backed start up to something, some actually ended $X.XX or strength. little start and the quarter off tail then and run the up of the off at the $X.XX-ish a with then and quarter around copper end bit whatever year March

price increase, an And price on imagine, couple change industry really way with one. the within price there's so does is down. a a going when good a traction you different the to price we last new the sheet of is as increases not over the that new that And had But increase quarter happening sheet. when's a sheet can there the price

fantastic, reference There's niche a demand you some get what when quarter in clear very the consistent some specifically print a and and material bit of and the And then in was in line. it the industry buckets been levels in to volatility. the message that and very those commercial discount up prices products more the offering product again, our times of but the has sheet to have change raw little different pretty the of toward industrial will

to some business, hit for the requirements of customer, the demands charge the it. of So the we on repeat

up then that quarter, is that we market When get to and bid bullishness vote go business. good up, you the day the margins go in I It's another on a in the it announce The which sheet. is for chopped confidence sheets that in out good right and success have for clean two them were had process it's of – the and with good a everybody or price to happy. doesn't the increase And marketplace.

what if biggest know about meaningful all – a looking in if that now I understand something wanted projects others looks drivers have your like out deal your and is are outside, up Daniel. you things are Encore? just of the very talked I'm helpful, talk to sort it sector to you to help appreciate us really come I that. to different how aluminum don't industrial I follow that can wondering give that from percentage in just for maybe I just mean that understand back That's about helping to you just folks the how parameters. that but because business as of now I relates is of much the the could And right still just business. bigger I get healthy. there.

limited majority way there's industrial a basis comes on of custom, there's the capacity the on And for build-to-order that works and limited through side, us the availability industrial is the of market Yes, piece, begin to the with. product. volume

combinations, multi-conductor perspective, from pounds those the a a so color specific volume the is job lot the to combinations, the itself. And of substantial the things copper are footage, pretty

start up arrive the that quoting once requirements the but that users so product from in it's and our and have on custom installers, insulated and That model for specifically, installation fast-paced the through allows us some the we from in go really we When for leading that where that's delivering floor in, you're in, to price quickly. with to the those to and deal charge the product the work that usual you pretty you charge service time And actually for of end put in in of having the price, shielded before of level. you work put get time a are service or kicks and it's to cutters amount seeing quotes to of can it's ahead at that that of pretty because that was the the amount the work and marketplace specifications. not value coming

So, it's good good volume. It's margins.

is, lot act there of in infrastructure the a And part by there opportunities interest of marketplace rate and the are are of backed the some that reduction the the some with that is Feds other it financing. the

So, to just electrical billions trying into We're opportunity in we huge market. areas dollars of participate the make of that we've the of opportunity that, sure hundreds identified.

is up start and per really pound a then low bias or off think stabilized marketplace, the the $X.XX in and pound. it as we then quarter far fell I piece And bit, end from $X.XXs, a the toward perspective $X.XX the some-odd about a little of the start March. volatile off to have off was something in ran or aluminum year a as but and then less And basis, on processing the trend goes, a aluminum aluminum

quite So, imports. in price that to relates the attracts it a the of we've aluminum, opportunistic which itself, the as historically bit as that's -- it metal of our story for from some you from dealt know, with threats attracts volatility past,

marketplace. some The actually And up product has at good point, the in forces the or is, delivered. there stabilizes, thing creeps when it to be back discipline it

margins still good. and demand So threats are the of into -- market. good. from most well the is able deflect still the hang volumes that we to But noise the on in The we were perform just and very overall some to run outside

market I the good clear for today. very very to prefer clear we aluminum the pretty still in actually know, us what in been this is forward, to I've ship and important as past, I'm the and and in do sell you go But we're copper. at side. aluminum

Yes.

Just sort as could be to just a on trying you're any get start-up, the pace? way, plant facility ramp-up reason the meaningful all margins in at of XLPE that steady that to think the dilutive a of

It's market very of we temperature in-house forward, bring durable those important a more commercial Going know, some to being plant cable as cost and a control the that that's make, and the higher cable insulation a of that cable of in-house. costs little piece is piece, ratings a overall. market important that you industrial very of our

benefit So, and we we it will will the same. treat

things raw increase history model to shown, do win of segment, costs big really us. able that a particular control of our really in when has our is side the as our and we're for and be material service a we some lower And input going could to having to

at Okay. Last thinking haven't times over as shy ask, I here you're buybacks. you your can to of book got look you I how I've stock, one, today last years. mean, us the been substantial you anything, activity here? guys. value. repurchases sub-X.X about about Obviously, couple And tell about mean,

significant this, mean million, almost I Well, look a again. of at it's after to mean purchase a as another last out two think million Bret, I I shares. up you X.X level Brent, Board of year guess pretty – the came with reauthorization I

the February for since we've of back, active look XXXX been in can repurchases. you market so and And

do the of And quarter, -- we that cash. so from interpret use to you've perspective. first through as said again, as we've I But good we think that a your before, seen got

Very good.

Okay. Thanks for taking A all appreciate it. questions the guys.

questions. Great

of next ES Your Capital. Shirley the [ph] question Andrew with from comes line

line is now open. Your

for Thanks questions. the Hi. taking

response. copper the quite early in -- this quarter? during price net spreads You the get the earlier, a I just touched spike didn't but curious January on I realize was was the headwind at to all

Copper of -- same down we moves other raw I listen, within We're with purchases moves the the Andrew. up, a managing we've question in right? copper it's thing mean a it's materials. great and quarter, normal -- course a do it's kind

we've are passing We so has end been and those an right? on, But top really more the that's when end, talked seeing. capturing and where And about at on bottom costs good abatement you're abatement, not those right, right? on the

So put abatement. tried about you maybe clearer to we decipher it talk just even there when out or

starts the broader a to bit. as up You is top end at But that's really catch some the may see hitting. little sector it's erosion where

is Fluctuations every looking or order in copper and average single or spot at the whatever we're whether at like that higher. price not it's

best finished out that turn copper day you're And capturing a our hours, it the service doesn't I there. so, shipping hours model locked about and a competitive where the if times And that next is that's year does. right? We advantage. XX goods service an a month. but that you customer XX defensive complete. service, ship day, or my orders margin. fantastic order a why And It's is inventory margin to when take such and my it really what within XX hedge XX talk Because quick of I everything that's just it's know matter XXX% in I model I extremely

And so there's revenues a great costs. and match of

though, $X.XX Andrew. close I'm catch From the think run. I It $X.XX beginning end, to of about was it think, a was I if Good through correct. the Yes. January

it present headwind quarter. didn't during But the it sounds like specifically a you're suggesting,

in The specifically. quotes, -- it. that the production increases, the the to posting the end where month. you I of match the try the and month to timing up of stand the Not of you. you out typically it with bring into of the we sheet go by timing more we the increase, things have stand of ship what where runs there's pounds price with price timing But mean same amount

shake So, copper get over is go next, prices during or week or things trend few on down, see some upside, will that a and you going sure. it Folks the definitely the it pulling lose one a bias going or to from the for wait to spreading if things XX trading are during a up up. that $X.XX to month to maybe days the day speeds

one then current asking just from Okay. specifically, is XQ seasonal due factors? pickup sequential this to Great. quarter the to not more typical volume XQ historically And but what about

give Yes, future any and one. guidance We that's it's tough a don't tough.

there. rolled everything and into then You you and the you go back had 'XX, to pandemic out XXXX was with that

and standpoint. we operational stayed from things started pick really fully that you to As know up

was there demand. in there periods where a had You pent-up

you that. a so And big catch-up saw on

by it more got folks of it more populated You meteoric when moving ago looked year areas. driven into really out at a and residential rural was areas

around care a you you XX because and always see light happens and commercial and influx XX, and supermarkets that still and boom this population of Starbucks you follows much schools. Whenever need larger now the have and XX, stations residential churches area, months in to later, more a rural build infrastructure gas

see is -- you And the saw year. tail some next this quarter. so, into see to in fourth the that And should that and going quarter you you that as of we go that first already

first quarters. far as I stronger kind the fourth a bit with third and typically to hard tell of you it. well will quarter it's kind so And of quarter are quarter the peg the are shoulder second that And and and -- little aligns build typically as the timing.

very you Okay. Great. Thank much.

Andrew. you, Thank

comes Alfred Your the from next of line [indiscernible]. question

Your now line open. is

Thank forthcoming they you. customers electrical of Good Are wholesale the that about products? you curious morning. I'm about levels wire distributor have. information their inventory with very

so. those Yes, long-term pretty I think relationships with customers. We're distributor people. close with There's those

in get place visiting and families with it those And visiting and be. field active our to on forth We level and distributor whatever a with They back reps. might and know are bringing we also relational customers. have very

doing can put eyes their inventory feedback. field the constantly have providing the on we so we And that in folks and

their have have had the, go have tending distribution customers past that the how With say, just your delivery, some can they in practices are that they the back larger concept historical to the quantities more side? where type let's so they you the stock inventory of may embraced on or just-in-time information almost think to of available still them do of have to

is nearer the levels. end your state current The to question Alfred. question, great front just-in-time of more a That's Yes.

do As speed the value you materials those the holdings of the of moves fluctuate. a from see raw volatility inventory perspective,

if market tell they you today bit can but of some ahead in their or extremely type end see that historical But anticipated area. lean might levels, choose it's time, I specific -- it little the of would I distributors trend side. a specific run related versus extreme had or job on the have If of to usually build get you today a you bias to job

just could one I final follow-up ask If question.

to For think their get customers be would you from they your distributor have customers any do selling closer that of either in countries? those to business Mexico, you or that Canada might to

may product But building some the two there as business the country years residual specifically on don't up those Over countries if will. crossing match our you far specifications be as with wire the in border direct product. electrical our

I say no. So would

Thank you very Okay. much.

the for Thanks Yes. question.

Your Forge Merritt with First next question comes the from of line Taylor Management. Asset

line now Your is open.

Wanted Daniel. ask the on to and morning, Good facility. Bret XLPE

capacity times. to like will able cost you'd few XLPE that or a not let You've already or spoken solely to you're or in markets it to? the a currently channels initiative, that Is sales you access insulation a

or And we I you never chasing a about question, couple from hour we And as that great there during that much I I from certain through others. day or pandemic, spending know or that one of we a I at of maybe the talked standpoint some from their hours -- go spent materials relationships. a as you ran mean, that when if of the really cost but XX chain risk years aspects raw of heads the to like day supply them. a And an went across Taylor. as out went board tight. were a back were least availability right, didn't you It's our was I our listening got raise said as that

was strained. going build cross domestically of on was lot a pandemic, of the In when was quotas. very the there XLPE lot polymer companies capacity There on, heat a

much, as can much time can to put get we limiting was factor so that a and out. at it product how You only

our integrated vertically it that extension. at We've looked we a was natural When inception. since just

someone you own made You relying from a looked benefit at standpoint where when if you we to get our to point certain listen else could versus it. buy say we volume on a

the aspect, other saw that particularly I to to XLPE to materials. also in opportunity labor supply. the with the raw when that bear And then of we came the access derisk the control some really ability

to we build build ability you facility today where you what build think you our market right need But a as be. don't it to it for the will

talked we capacity always expands. And markets group that we an and as can that about serve so incremental that all build the demand of the type insulation that

it. Got

facility say residential fair will -- then government-backed infrastructure So, at later and the comes business? this of the become larger that presumably front end as online of the to year we're some these structurally part programs CapEx still smaller of

factor that to limiting us of just would tell availability ability serve installation not that for that I of will a don't type think is say online. be that you once I the facility on our

Right.

percentage you XXXX high the probably and-- quarter residential of the as But second sales hit like margin of water say is through a Okay.

you the at felt -- Taylor was the June our today, What XX.X% that residential the if saying that margin copper I it was look second about in of XXXX Residential, is XXXX, quarter. right? we percentage peaked in the for first price the quarter of business

a was quarter trend see you If fourth it and that compare right to there, the XX.X%.

So, a move. it Not was big right? X.X% different,

comparable XXXX. levels, not not but related product ship mean impact than higher extent insulation June but associated it the residential, directly grow, online that the And of little to that comment So, doesn't the that or related that's we per impacts to XLPE residential is uses still a se. pounds to percent coming running was to it's from the my it could that with it again pre-pandemic more start of

it. Yes, Thank full Got you no. me. for it much. Yes, That’s very understood.

Thank you.

at this questions Thank time. conference There today's attending. are you no call. for further concludes this And

You disconnect. may now

everybody. Thanks Emma. Thanks

day. great a Have