Encore Wire (WIRE) 26 Jul 232023 Q2 Earnings call transcript

Hello. My name is Chris, and I’ll be your conference operator today. At this time, I’d like to welcome everyone to the Encore Wire Corporation Second Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. Instructions] [Operator

Vice Financial Executive begin. you and President Eckert, Officer, Chief may Bret

may Vice Financial you, welcome me call. quarterly Executive and Good this I’m and the Eckert, Thank Jones, morning, Corporation morning the In any CEO the June ended to second Board. is Chris. President, we financial we Wire. review of Officer take a have. After will review, and you Encore Chairman of Encore Encore’s Daniel Wire will questions Bret quarter President XX, minute, With the financial for XXXX. Chief conference results

opening reports to news comparable measures to which financial SEC reconciliations now presented discussed the non-GAAP detailed conference and uncertainties. turn we and those legislation the Daniel? these in each directly me forward-looking. instead we supplemental be accordance that of I that Daniel uncertainties Company’s EBITDA, Before financials, we that of conference call releases posted you Also, of certain more I’ll attempting be this particular might that for you remarks. measures this In during discussion website. statements with over certain GAAP, call, to order forward-looking, results review be be the discussed from actual statements we as statement the some useful to and differ making risks let securities advise indicate to for most involve identify to of materially are believe our including today. throughout could call comply information and a considered such may all each for certain to on to investors risks refer cause with financial

Wire. and Chris. the appreciate for everyone, support. We you, us Encore your your for Thank morning, on you interest investment, continued and and in thank confidence Good call and joining Bret

margin elevated midst quarter abatement. our the period marked quarter consecutive in gradual the continued of ninth of we that our are margins of despite This belief

improving margins the As we we’ve to earnings quarter in peaked of abate calls, have length continue should heavily invested which and XXXX. then, in efficiency to margins achieving gross on compared prior service to and copper reduce fourth sustained to integration, believe discussed margin at we deepened capacity model began aluminum and to our invest gradually mid-XXXX, vertical contribute levels in higher levels Since baselines. cost, pre-COVID and when increased

With have to Copper and the employee when pounds a to respect quarter pre-COVID goods quickly shipped shift to challenges XX%, in near quarter compared of shipped finished XX% aluminum we’re copper captured of to share this second when to sector. our our the pleased results a increased and to number leveraging in These strong XXXX. and and base incremental single-site, baseline. aluminum compared faced quarter. the record ship supplier despite in in a shipped of demonstrate market dynamic deep pounds relationships volume, respectively, vertically second We macro by customers and volume manufacture XXXX broader second campus, integrated by the the

founded give continue coast a were industry-leading service orders complete to the on quickly exceptional while organically fill commitment grown under to focused steadfast the customer this facility we’ve same set the coast. proposition We compounding orders line the late intense with XLPE providing on: on complete products on reinvestment is manufacturing of inception, The focus quarter outstanding in expanded shipping competitive our customer advantage us in Since as innovative strong combined year. to such and a also our performance strategic rates value believe marketplace. our initiatives service of that come we reflection to our our shipping third quickly

areas our conditions, structuring in of strong, has Demand model, of us for will We demand. the made incremental to in new our offerings that and making have for data adapting quickly throughput one growing to service the products and/or such energy. of to believe to and our positions affords investments of well level service modern electrification economy. operations appropriate higher us future remained and Our also market a product our sustainable we build-to-ship demand, renewable satisfy location take model future with center changing centers combined agility to current new facilitate increases advantage demand of help as business and that our broad the

legislation We in fund bolster for electrification expect categories. many broad our place demand product to current the will infrastructure of help that long-term the needed for

the come. will that many for also of raw We raise demand material expect inputs floor process the for to this years

that and strength believe of culture recent team. future is unique success firmly our reflection of and our historical, direct We experienced our a

believe location, vendor one that orders deep future differentiators customer and and ship our campus in relationships, to also increasing We ability will vital our our verticals, complete remain quickly success.

we increased continue is low believe are of demonstrates repurchase to long-term continued by million our market historically prices confidence repurchases repurchase shareholders, what to evidenced our as multiples forward authorization. our capital returned program and We $XXX.X has in share in and creation potential current value XXXX, QX that Since our believe valuation QX our share XXXX in our company. of undervalued in of continued stock at purchasing

performance Bret indicating over now turn cover to quarter. some the second Bret? With I’ll financial that, to call

Thank you, Daniel.

$X.XX, include $XX.XX. highlights earnings diluted second earnings year-to-date year-to-date share per XXXX of share and diluted quarter per Second of quarter

compares of net hand XXXX, XXXX. $XXX.X of in profit Second XX.X% the XXXX. just in million year-to-date on quarter the $XXX.X XXXX, income of as June repurchased hand, income million of second to $XX for $XXX.X XXXX. million, million. in of of XXXX. We during expenditures shares XXXX. in quarter, share during outlay on under the million to XXX,XXX the amounted $XXX.X repurchases as million X,XXX,XXX net XX, in cash $XXX.X first quarter cash year-to-date and year-to-date December year-to-date XX.X% Capital Cash million half Total $XXX.X Gross quarter XX, second that of of of

authorization full you calls, X a few not but departure to to points. back the of XXXX, going million earnings the In key a instead our release June the a Directors am shares XXXX. XX, March stock of read I through Board up of highlight common from increased repurchase In previous

in the unit X.X% second the in second XXXX, Copper XXXX tough increased to the of ‘XX the second by quarter in XXXX, a quarter quarter quarter second that the over discussing several current year quarter been in XXXX. sales quarter. net period, quarter in Gross the very XX.X%, versus and Copper in profit selling of as decrease The first prior percentage wire decrease was the an XX.X% each unit comp of first the in of price for the XXXX those volume to which the despite XX% sales said, of the in I of in average volume compared of second years. quarter compares abatement was of versus net XXXX. periods of consistent margin XX.X% in with past the year have increased of XX.X% Aluminum is quarter XXXX. we driven anticipated second gradual the represented

employees, The decreased decrease primarily resulted quarter the driven a the significantly to of location believe second levels. a all were quarter, of X.X%. gross second the copper cost purchased first is one culture strategy, of margin copper XXXX for copper This This historical the noted in average average growth organic quarter recent the price when quarter in exceptional abatement gradual XXXX the to other business wire while above, We remained our relentless average by you profit the to selling driven and a sold of half quarter in XXXX, in the compare reinvestments in by above of decreased the it XX.X% decreased testament our XXXX. of earnings which model, in and in spreads of pound hard-working attention pound the first resulted of selling historic, the first detail. XXXX versus per price and of business

tightness persistent elevated and availability consecutive XXXX. of of certain the the the overall quarter uncertainties, and second quarter in spreads marks level, macro of spreads. raw a ongoing global suppressed availability ninth the materials, margins This elevated labor kept At continued of skilled in

and Since of sheet X,XXX,XXX first of generation at $XXX.X stock an Our in common XXXX, for continue reinvest of while shares repurchased shares outlay flow a total have million. we consistently very repurchasing $XXX.XX, to remained us the price average strong, the our of quarter business stock. common of balance cash allowing to our cash

of June in X million XXXX. stated Directors XX, increased authorization back common the previously Board March repurchase the a to XXXX, our stock through As of shares full up of

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

to on continue applications. cross-link manufacturing deepen years growth facility wind to deepen is for to and favorably increasing types and and many in XLPE and focused model. have These vertical began applications, polyethylene, XLPE XXXX, as inception used share transit, us oil integration to insulation In position market service projects our to state-of-the-art gas, we capacity and come. other investments facilities, centers, construction related will our of fueled solar processes as continue investments since improve consistent wastewater on cable in integration utilities, new wire organic profitably compounding efficiencies driving capture insulation. data Incremental our to including to a treatment vertical well

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

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

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

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

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

you, Thank Bret.

Our half for of positions well strong us future. first XXXX performance the the in

will XLPE third us strong, and the service quarter outlook gives for the and opening competitive model market The be provide remains the our to of new the integrated advantage other a which term. and quarter in May share the opening Our long competitively over the in XXXX, XXXX efficiency capital today. capture or new of of demand the capacity a third projects planned, construction should of market XXXX, business center and of vertically us X facility, single-site under Plant in

agility serving a business us and operational model giving in serve needs. us market remains current evolving speed to market unique conditions unmatched our to Our in advantage, well customers’ and competitive continues

tightness availability on persistent to have the wouldn’t consistent our Encore. materials, our partners suppliers. raw of long-term without success to level their We this of of commitments in supplier continue deliver performance Despite certain exceptional

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

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

continued would their have without contributions. not happened outstanding Our success

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

from questions take now we’ll our Chris, listeners.

question first Our Sidoti Instructions] & Company. Julio [Operator Romero is from with

start The bit diverging in wanted aluminum. little I to copper with spreads from seem be a doing. to what maybe aluminum is

touch that, just changes for maybe buying maybe ramping aluminum, are about could on in you and are customers there up patterns demand there? imports talk from If

Yes.

as the of quarter, margins I the fourth said, think on So, aluminum in XXXX. peaked spread really Julio, November October, we

still in period starting going was to And margins copper abate right, which so, in you aluminum up. June had of ‘XX, a

well. as Now, you’ve abating them got

So, it you India. lot at are is If a A inventories and saw imported coming into we continue inventory there’s that the little in a of first bit. is look aluminum U.S., There of the in of there, a that lot of that from imports. a lot the quarter quite lot second. dislocated

of where so, $X.XX the $X.XX, is And today. it’s probably out $X.XX, by market price from

manage effect you an it. through on that has So, it as

of new, think so, something or it’s side is saw you And kind the what didn’t is the a aluminum gradual on just you’re from with consistent a abating normal but see perspective. abatement little that seeing copper we the which now I before,

to I expect the and be looking consistent, those So, aluminum side. opportunities it’s running good forward on

in helpful could us why just the really then, copper ‘XX. spreads That’s And of give there. in quick quarter later peaked ‘XX fourth refresher Okay. a were and on you aluminum

a Aluminum It’s just the catch-up. was timing little bit. a

time everyone the got everything labor, all pandemic the impact -- to XX, was think and XX, on it materials, is any the when that raw about different the took, had and it. potentially no you right, do into got going reengineering and strain project, on was chasing it to on chance a do to right, there value You XXX

copper, with talked tightness which of we were copper about. built went if that copper, lot So, was it it a with right? side, There on

run-up of particularly reengineering, aluminum, started be that leaned as right, of with end, things instead you get in. projects, they started done the had planned certain to copper And so, the to front to settle, at sort And with so right? just in

such so, was And they there and -- we shut down. tight as China shifted availability, is all towards knew that

And copper was and perspective. lagged very kind a a aluminum from very, that little bit so, tight, of

And it. Copper as go started you through mind. prices front back with on the then, down, it ebbs to flows being projects and copper those designed came going end in

but projects And a when just it’s little affected were did it by so, and going accelerated it. the pandemic flow, bit timing a of planned into traditional little somewhat ebb get and hit how the or bit

metal just normally that the We some piece. also side in the had aluminum Julio, copper on in volatility, remains

at specifically, obviously, pound $X.XX of $X.XX month and the much aluminum volatility going each to the got piece also If within $X.XX to there, QX QX an normally trend not. you’ve was as when That $X.XX overall volatility that’s bias, moves or aluminum of or is on as look you maybe -- a our downside.

the the swing was on look a a month to much overall, had on Comex the $X.XX much you low one copper piece as next the at side. you QX, as within copper from $X.XX -- If pound. as as And

actual within So model, of piece the of they’ve volatility from that toward and service short way type end just-in-time of May, window price the April positive as we kind of quarter. the lot and really any the the with a June seeing is with up firmed were puts deliveries pressure also to been that compared the But it that a XX-day better increases. and confirmation stability of

fill certainly be about ballpark, it. are where would maybe you you Got maybe and competitors’ That’s rates rates fill to at, rates? with today good hear. Where for talk them? fill guys just Can

got We it rate X be fill percentage to I prefer on We’ve XXX. Yes. X mean we’re the up. make the in points high-XXs. or to

quicker We fantastically shipping are than were. we what

capacity added in from incremental we’ve the and certainly the that that several of that last off is Some -- capacity added months paying in respect.

in get where is it you the from Again, the volatility end kind purchasing that more the us model. well real earlier product shipping firmed ship to comments, at a which on and it in metal, -- that mentioned statement his Bret a ship perspective in But category or bit we model time the the once maybe whatever anxiety when allows be up perform of there’s be. service feeds received, releases look product fits and there’s of quick prepared execute, going, is the might with quite did on see QX our to As metal well. better that a we’re into complete real of

But where opportunistic that the as good a those little got short that job. handful are far little so we And great there’s X As are a the They come are. in we’ve a bit a do what of of out doing more and they’re there not doing, execution. on fantastic competitors X, maybe a job.

with there. the half just Really expect color for year? is change Should in repurchases authorizing done last any Board then helpful on the And with the the first just the the one you’ve repurchase. of pace of you we buyback

second quarter million but Well, and two, planned, the the The consistent shares. was That we’ve pretty XXX,XXX in was first. not been, north buyback the million else, consistent. of $XXX.X in between nothing if $XXX.X definitely

out the bucket X you full that take So, million. up that back from you’d -- refilling I can expect Board coming take and think to to

of did consistent It’s what August last year. we in with

X.X X.X of short in X X.X just in this second year in months bought of million X first -- we first almost And the where year, of row a months about last we did back so, really the year. million

of price so. undervalued, the Looking we at today, remain the stock

[Operator Brent D.A. Instructions] with The question is Thielman from next Davidson.

worse? I or it can spread guess, first, change abatement Was all I guess, it map also over terms that on where depending environment product the quarter-on-quarter? better of I the the the or year-on-year of even you And quarter? the speak guess the exit the across And of with or consistent is? demand the categories, to during to the in months spread on the point, is spreads. Any just rate is across spreads of on in Daniel, abatement anything sort kind specifics

then of It’s a swing with April, $X.XX within really month it quarter. the something kind our similar And right and $X.XX, when came metals. end type or there care volatility better when -- of end obviously, of The the aluminum. on and in timing the metals or $X.XX halfway maybe the with behind was itself favor and Comex and the you in to The all then of over $X.XX direction, was May abatement invoiced map, itself the no kind side. back shipped incurs toward the toward then real on volatility right security takes hit those $X.XX within is contributes timing for of side. that, with but other of And those on the that copper one in

them. you With government in in if side, projects. that There’s the fold too and X piece purchasing I Reduction the that’s Act. of of Inflation is Law, noise that I and XX get Infrastructure into clarity, and programs got within slew the moves mean, different putting place can news then, clarity Bipartisan better month, use. on that there’s Act, projects. on timing Science all to the the of all volatility not a CHIPS you metal hear you a that some geopolitically or strong government term and the said, it with once the the to like get of larger the you And uncertainty But some of if the

really and to of contributes through volatility you’re as so, and volatility come rules uncertainty. programs the are from actual this to get that navigating trying what And it out as the confirmed confirmation Feds, these just

specifically. are said, you know, It on demand forces that in low bullish our it would our folks trigger, can better the end So, pull out stay I as less for long can’t And favor. the as of firm the look toward outlook as are with anxious up. looked And demand in you copper market. with very imagine. It to typically did the I believe I that this for there. June, numbers

did Brent, I second see quarter, the throughout segments Daniel demand come But of one volumes strong. a Hey of it out super not months. the it’s on you’re most then quarter kind said, mean, that. into said, first market just thing, summer just you we slow, the and of during the jump as quarter. June. roll I’ll it increased usual coming and June a our But And start steadily record near was as little across in We

see trading the as to all like growing month we come so, same things And through you that it. it’s that And about. you talked

seeing still cost-cutting some that distributors are in We’re mode. kind sitting that of

reductions, preferred the a It they’re those talked supplier, do very makes quarter. we us inventory like rates well. in aligns making first So, shipments. and quick That about our fill

standpoint. So, that positions that us well from

from remains So, still the short- optimistic long-term market opportunities. about what the hear community contractor and electrical can we

volume. able make to to to continue the we so, be And that handle investments incremental

you on Okay. spread the quarter-on-quarter, providing And I in on didn’t year-on-year, see the the again, release. that Are Bret, that? change specifics

-- It’s right? price two you’re Brent, of getting quarter. or on, look at right? in at we things look our the in the linear. pass sequential, you’re whether that’s and challenges to not the when look saw costs and so either about But quarter-over-quarter associated It’s your the abatement abatement, the change what I some the and the it, quarter There’s can able that or change. not line, sale that the not drop we cost, comparison, and or in talked as right? and at not We average it’s high it’s expected what costs the at you the is price aluminum only look at And first sales with in top you are didn’t. When copper some the price right, change that’s that in in sales is happening decrease

you’re still through -- that’s navigate that and people labor up, with little starting when that supply issues, demand But you up issues to gradual bit a this to catch quickly seeing that the at dealing it’s same abatement start the this. XXX about, up through to top you little making more, -- XX% on and can catch every as about. depends XX to different And a we It or XX% all have been product, math complete And that hits of harder, line. than the It’s of numbers, talked XX. you that that’s XX% that takes you or And many bit that but is all it’s finished the the right, of day those we are how And order. really price drivers go and ultimately steps need trying things how as the gradual. day. you it. all on mix, we But best you the good talked do make it product get for with

demand And that. some up end spreads moving appreciate about is I June. guess, guess from all ago? still couple on seeing prices pricing it really worse of this normalization I you’re or think where from of it of level good the comments this years copper with that is levels in here, I for the but kind up your some But spreads I of really seems better, high is firming environment like dovetails in a of Okay.

better do market. always increasing copper in We an Yes.

lot a exist much also. issues the the downside. cleaner a on bias metals, of aluminum much up better, trend cleans discipline or a upside this course, It’s the for Of in on just the that operating

how bottom margin source easiest materials. the talked of again, higher And increase kept really team margin get always a the is been on you about, I if the flat, The in fantastic as do to we raw cost same if the customers. line. to adds you pass to nothing, top line, you your do And which way, the It’s that on Brent. we a does -- job

environment? Because we for know about And the good again, I half some tough should the unlock maybe volumes? in comparables you really presume which have some of the Helpful, then year. I for outlook second think demand seems like But you again, guys. pretty initiatives it have you. Okay. some how a coming, then capacity

wanted how forward? you’re going just I of get a to thinking So about equation of sense kind volume

of thrown a us was month commercial was of America expected in still June. qualifies stronger volume. lot June in and by got We There’s from are vehicle, the a NEVI solid projects for -- the distribution as for today there’s requirements of piece leads Infrastructure being for I renewables earlier, Act. out, product into side government piece industry moving. hardening Jobs what side, are that’s the over Investment than coming mentioned the electric few piece, the at utility the its the Residential that’s a of dollars what good us, the us. Yes. quite own. in that government from the being the coming sorting grid on There’s and that that few The promoted holding a the Feds. have quite through the these Build programs the Buy still heavily the We’ve industrial very is for front we’re on America, projects

-- our I to think overlap of get to programs that to we’ll what continue as product what qualify projects to trillion categories. As there’s start there’s It’s we close in more not, those and into sorted some earnings. some out monetize and turn the and $X these execute are do folks and things and realize those things they’re

out And at for as partners to our the But we’ll pretty so, outlook with for is and end more those it means this continue and we goes. work us, that sort users us know what bullish and distributor point. as

-- you you’ve to capacity allow And I’m certain where growth in more expenditures, some that. you these robust some are to constraint unit initiatives Okay. capital to Daniel, need just of on come about in trying volumes? areas internally, think mean, are I got

the But been few Yes. and where run we’re we we’re areas other always the that we’ve doing. don’t expansions clarity when what’s close, running just a have come in. There’s some address We areas pretty up And pretty we’re invest handle as and week coming. bottlenecks to obviously try open a not. we’re with that on X they and in days areas we we moment the

the to The better some be going timing us. going forward. of CapEx for projects, couldn’t We’re of ready be projects

to on so, the those continue we’ve yes, you And know we’re addressed them. execution And address focused bottlenecks piece. and how

We’re to continue that. going

Okay.

cleanups. then Just couple also of you impact LIFO that saw And to the this impact you SG&A rights appreciation quarter? last have into Do a quarter? quarter this any stock that and went

a It’s question. great

So so you and matching, just the about $XX.X is ultimately in quarter million side, have $XX.X But know only versus in it’s but about. margins LIFO in falling, again, two fall matching LIFO was second the spread you’re the that’s to of copper, right? million about pick thing, that the talking the second quarter things it’s of current in on the works, It’s whenever in it with right, just how matching right? in current which captured But LIFO copper it revenues. the And of you’re a when cost up you have -- -- you a period going it’s just system ‘XX. ‘XX

$X.XX. driver number the of second of really $XXX.XX far top-line, when more price, quarter. the it just as changed As the June. was the and at look March on It you at $XXX.XX The was the main comes SG&A, decreases, end in the at SARs first as it, stock in end the was your it for quarter big down. the hit commission SG&A,

the the thing it December. big $XXX at of was so, was the And from end

that the million for you the that So, $XX obviously, saw gross saw the you same X-month impact in is period. gross the quarter, first

basis. So that’s a about $X.XX on year-to-date

Barga, with is Funai LLC. question Alfred next from The

Good questions. disclosure, morning. securities no, And of not analyst. investor thank my interest I And Encore. you I’m just an for am taking in a for

was of some what follow-up unusual the am the to not unusual, LIFO adjustments. My necessarily I well, of -- terms some of Bret question a behind was explaining So, friend. though in mechanics a the but

to If second you the period margin the then the to quarter of anything that LIFO first in distributing quarter, see characterize in relation adjustments? you unusual of had because for don’t terms erosion to

to so on self-serving, No, our just take we But know way -- are. for happen what’s the I that very copper and our my to because structure it’s what is think ship when in only aluminum going because I that I cost Because I is margin order quickly, and products time. the day know very -- know point next right, right? going going you’re to it systems move I costs change. Alfred,

lock ship can that I quicker the I order, in the margin. quicker So that

focused our orders And getting so, that that’s a customers. always quickly self-serving service out order for it great one it’s though very, to we’ve even regard with that fill very these from on is perspective from of the standpoint, and because things

change averages And so, higher spot though on month. the given your Even know you’re the or going order, you what any average costing to based you that that it, previous cost at don’t for ultimately know be average month everything is on from because of given any is. day, you don’t you’re see your what because selling

month. day. know at cost for catch on you the is That at single what up to just every end the So, order, you every of catch LIFO single the up, your once that selling month, were

That have impact. So, really revenues. gets current just more single of we’re every statement. right. costs It not day matches on income just the it’s balance how it and current It a does with it any sheet impact is selling

it. you it, see you If could never collapse

would the time, If result. come you with up real -- would it the it it could same have same do

unfortunately reason adjustments out be something but just follow might contribute there’s know a qualifications for or perhaps of in if by for adjustment. quarter the audit or it asking think you’ve report the & the their Young of impacted opinion explained, that The But terms in that by lower that’s that to of them Ernst for second a the I sort would some comment in LIFO having to there the had was the question. you been the catch-up observed reason month. of matter saw challenging perhaps some didn’t the ordinary the was for emphasis no, I not, of is asking margin

couple past weather the for some impacted by unfortunate you unusual repairs of recorded The will sort damage another have area the roof were of of might or I So, replacement have that that margin? follow-up Did that sales that with cost type months. any expenses was question. in obviously McKinney very any of hit over

starting consistent level since obviously then, a with top to stay in sir. of accounting, quarter about any XXXX. with the not fixed, percentage, the SG&A been the starting we stock has that Really the mainly issued is change freight. And is Freight’s at it your little any variable It’s then And in really bit. appreciation thing -- by of where comp, commissions that’s the pandemic. come those but we haven’t No, in talked a change. which of only the the which to SG&A line going driven to change are but January middle rights stock was of

Rates so, are And availability truck is it. as in better. a better starting through come you lot to manage

unusual to nothing. Nothing So, report.

to there’s performance, individuals, see any company that the with or then them shorting dialogue some Company’s is other finally, of terms ask, go to Encore the its with a they be of could these large you And pattern that of that stock? better? why percentage mechanism. help just a sellers? sure that obviously that Company’s way follow to they whatever such dialogue make Company an not the curious Maybe have but entities, opportunities might try shorted. yet to have try the is Company if be, try cause I that to and outstanding money make stock Okay. understand taboo short Because question, with there’s in the is But, to the them I’m a there does may probably type

yes. those Alfred, all say every you Yes. don’t they them from it. of up right? if or They on of you of looking just talked -- calls I’ve be volatility, they’re side is go investor down. go -- folks, lot They is, right to a to go just a I’d over a want and question. answer for lot care down the and The The We fantastic years. it’s the challenge

you And or so, our attract grow $XXX attention. stock when $XX price we $XXX, to from

than that always isn’t good, there they’re And that smarter of think folks Some is some good, that attention of anyone attention out else. right? there’s

that that it at a doing look story are clear been plus going on about mean, for going and we’ve and margins this I years against story abating. I to crystal a bear’s talked get the look We’ve bull’s And you’re and that. fantastic, to at you. And still two play go, it.

say, told down earnings I and been on several go we’ve so, see, talking about they And for said, you so. end. And like that abatement, I years

process. But to beats those day ones look this the end the shorts. the It’s shorts process. at go is So frustrating. frustration consistent the nothing Having through the with But buyback at this your that day. in a helpful you of as share -- at long there’s end execution, of hopefully you convert I always it,

a today. just it’s part the think market I of

bit success, see a more it. that, you attract so. of You given our And

thank Well, you.

my questions. answered You’ve

You’re -- whole you’re team you doing And for thank great job. Daniel doing. are doing and what a you and

investment, you Thank it. We Alfred. appreciate for your

George from next investor. The Tokarz, question is an

you hear can me? Guys,

Yes, sir.

to And Hey. with you impressed stock Company’s was tell I just the so the of performance I of view, investor’s staff bought your yourselves. and point ago. couple have an Company and months of I the from

and I think normal being COVID. these of abatement. yourselves, just understand, to mean, a demand suggest a that Would little supply to experienced back you because hard simply unusual you because you’re were guys what are correct I margin I of I going from margins be that margins? on

it, out What we’re figure definitely Well, right? you question a right? making is the on is gravitating The as do business, George, of where that you I trying real everyone’s in think through this. investments you’re lot down, to go land

And Daniel where there. we we at at as a out margin and mean, play investments then But right, -- is. to? above If XX.X% that’s journey his was gross where right? land Because you what area comments have current think look overall an to And there’s and back is, that XXXX, can that demand we that do try constructs exactly we lot this figure historical in constructs. in margins historically, go and got you saw land said what are I supply of started to the the here, out things and think in do we so many do

days suppliers X.X that of on near-term, There was who’s adding quarter. got a was one the the New in you above recent largest X about the X year the deficit when It those And in some globally. X.X like a next I talked they to million was first -- York landed landed leaders to represented that’s deficit, XX ground. of to meeting it X by supply, mines the we Copper your in another in world. months. ton perspective, chili, XX million put mean, in largest metric per in

the or deficit beyond so, industrial Semiconductors from to coming data chips, global And and infrastructure all historical, utilities, battery vehicles, AI and itself upgrades residential, pushed. U.S. being sources. those the setting clearly that in centers or of up and seeing Demand that commercial onshoring, plants, renewables, are sits demand electric some there. is above drive you’re really

so pulse, that, in a come it margin. put on right, And all with the the impact hit you blender, up and

proud Am quarter? lot so, transparency. And Absolutely. trying I of this $X give I of a think to we’re

in They’re investment making keep come having the $XX.XX as Going are can. coming it from is of And that’s new we’re of elevated in these as in, year. keep a a $X.XX to bit XXXX $XX.XX, little it to recognize to that point up -- XXXX. in still fantastic folks back we the and lot business we’re a long to $XX.XX try margins. At

issued are back dividend. buying a guys You stock, the you

horizon love have I chance? you all electrification hedge absolutely the America. on guys of as your wonderful far a You and, theme, as your at Do copper potentially by copper any

and No, ship change hedge a do within and buy you right? sir. out it month. in that buy the and and same best is sell it it the the there, I George, month, We it that’s shape

XX right turning times. goods And XX so, finished now, I’m to inventories

do on hedge the our copper. you not no the shape bet Company and the we orders beat on change as quickly very cannot regard guessing as We There’s ship to so, quick and with just can, And market. we that.

you thought in locking just the You’re margin had. you

are God do the you Excellent. going really boys to rest Texas you. think? good bless make year Well, Are doing for of you guidance you the and

constantly guidance, copper Well, we to uncertainty They’re of and comments, the my there, George, But on centers things side, give when at, go you you through a look continue I commercial at in driver. don’t about and out look data and all comments demand be that’s think prices. we because if going out Daniel’s you look talked just the back reconfiguration. big

air going they’re they started of were to kind You cooled. with -- cooled, water now

latest air the traction. before. an got F doing cooled, technology which an number that now building, uses power lot they is has never more going to consumption. footprint, I design, with started design, the a You in H been less They’re design half the in that have energy proposed -- same X you’re servers that’s done of one think mean, ever with I an

it. drive so, And to that keeps process continues things optimistic. That

of up this And as politics we the year, spending to coming this. up kind you’d year got federal expect and in it’s then, still all through you all be an go mired election next

down, well super we’re as that. that’s they kind making investments And to serve be that to out positioned so And why trickle to the making. America of as starts initiative, figure America this we’re able Buy Build we’re

monopolize time. your very for I Thank exciting. That’s don’t you want very commentary. your much to

appreciate your George. support. We Thank you,

turn time, We remarks. I’ll closing this presenters have the for questions. At further no any to back it

Chris, thank time appreciate today everyone’s you. And and in your I investment Encore Wire.

conference today’s call. concludes This

Thank You now disconnect. you. may