Encore Wire (WIRE) 25 Oct 232023 Q3 Earnings call transcript

Thank you for holding, and welcome everyone to the Encore Wire Corporation Third Quarter 2023 Earnings Call. [Operator Instructions]Thank you. I'll now turn the call over to Bret Eckert. Mr. Eckert, please go ahead.

Jack. you, Thank welcome call. and Encore Corporation Wire Good to conference quarterly morning, the I'm Chief President Encore Vice Bret Executive Eckert, and Wire. Financial of Officer Chairman comments remind results from everyone With President, today's and earnings begin is actual morning certain that call comments, of of such include and and statements our our to me materially we the the forward-looking may like Daniel we'd differ release statements. Board.Before on this CEO Jones, forward-looking in to SEC everyone for release the the refer our to included factors our earnings remarks. to language in call like filings.I'll risk the I'd some opening Daniel and cautionary turn over described to now Daniel?

interest thank that period joining quarter We appreciate in Thank and you, belief you, and for Good your continued thank us abatement. investment, morning, Bret, we're quarter the of consecutive of call gradual everyone, XXth in our confidence marked the our despite continued you your Encore and on a support.This of midst Wire. Jack. for margin margins, elevated and

in on market to manufacture leveraging strong believe and shift our increased the of is compared XX% invest complete vertically-integrated campus, service a broader our quarter. third focus single-site, combined volume, and we to innovative was substantially demonstrate the complete continue of that to levels achieving have captured margin relationships organically this providing performance the respect at third increase aluminum As on the to quickly steadfast value we have when and we of ship to under in expanded products, and incremental quarter deep inception, believe sector.The XXXX. Since and quarter contribute as goods while year.Since pre-COVID pre-COVID our efficiency facing the These heavily XX% deepen baseline. calls, to of shipped pounds levels sustained quickly, to volume to manufacturing outstanding third marketplace. when shipped coast Copper share our in shipping and focused with our in when we fourth quickly to on: the shift a rates founded shipping record the quarter and reinvestment and to to baselines.With We the of pleased facility, supplier strategic workforce third respectively the challenges on and the reduce dynamic by a end vertical coast. model XXXX despite by should integration, commitment finished competitive mid-XXXX improving the of quarter a copper customer macro service compared proposition earnings have a we in aluminum orders length same pounds our and I'm grown intense margins strong were capacity initiatives the orders service, aluminum then, complete which to cost, prior at our and fill abate which advantage in We began Compounding continue customer give exceptional also of our gradually to invested margins reflection XXXX. higher industry-leading XLPE copper discussed us have peaked customers, gross number such to results compared

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

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

also raise experienced come.We of direct the this historical, demand will floor success raw years is for and that material the the believe inputs price of and strength that firmly for unique our recent future expect We to of reflection our a many our culture team.

remain the and believe forward location, repurchase future repurchases company.With as continue in quarter. our that, Bret? capital that the campus are multiples, I'll and financial prices our QX believe ability and now share relationships, XXXX complete that our QX vendor of valuation continued of our what orders current one undervalued shareholders, customer quickly in stock our purchasing our $XXX.X by We our returned believe the potential continued share success.We program confidence XXXX, Since low third historically increasing million and in in to market the to we will long-term in deep Bret verticals, our cover remaining vital to ship demonstrates over to is and at performance also differentiators has value-creation to authorization. call our repurchase turn evidenced

Daniel. you, Thank

the with the for of testament as average our relentless each detail. gradual all third we a as The positions distributed anticipated selling and come.In the those million in compounding Third and year-to-date we copper quarter cost in organic decrease year increased XXXX. profit and Incremental price continue XXXX compared purchased in fueled quarter macro remained solar has construction which the build $XXX discussing availability XXXX, outlay third by quarter, per $X.XX, processes, quarter investments during cost continue third capture transit, have materials, raw shareholders oil of since year-to-date consistently in while hardworking during per increasing our of earnings global wind of wire of the quarter noted the expenditures $XXX.X and a quarter average certain versus as the XXXX, third profitably was persistent third well unit facilities, and of the as resulted as X This in year-to-date dollars facility the in model. new in first company and organic net in exceptional an strategy, been have represents driven profit volume quarter of XX% is quarter. X,XXX,XXX over abatement percentage strong, per wire of and pound long-term in periods in above business, decrease past by quarter $XXX.X slowing, XXXX. inception the on vertical consistent in to quarter periods, price of X.X% the which XXXX share a quarter. in in stock. volume used value and business to above,And net slightly repurchased XXX,XXX of the cash the million believe year-to-date to driving X,XXX,XXX of first ongoing XX.X% XXXX the of for shares quarter The XXXX including XX.X% XX.X%, Aluminum deepen third to shares million and for comp several the gradual, to the market since many significantly sheet in profit which us months share of versus us margin the current cash the projects the copper year-to-date under by of sales $XXX.X the of share abatement diluted million; is related a years.Gross the continue continued X,XXX,XXX XX, year-to-date our just XXXX XXXX.In shareholders. highlight utilities, a selling capacity At of second decrease earnings copper third model, data to of shares is years location well in decreased cash level. The million, gross to prior-year historical XX.X% driven share other not quarter second and income manufacturing in million the investments in in of our XX, quarter XXXX.Our second the quarter the in key common XX.X% in shares. during a availability while unit applications, growth the to to call business, exists company of it, still in growth for diluted versus and us the XX, $XXX average XXXX of we efficiencies dividends, the of quarter $XX.X $XXX.X and million XXXX, These previous continue cross-link began total The partially of repurchases of to departure the XXXX level, types highlights despite and of in the suppressed of shares authorization up cable the March decreased historic third XXXX.We quarter points. review third driven offset to skilled the earnings XXXX; Copper facility, selling outlook elevated include: reinvest XXXX. polyethylene, XXXX. purchased, of repurchased wastewater increased to treatment was of balance of release integration recent the December income centers, the quarter of volumes of prior-year to instead in have of quarter quarter service continued but insulation attention to believe to in position X%. decrease outstanding price share repurchases the going state-of-the-art reinvestments the uncertainties third from of and average volume share and quarter XXXX. were of consistent represented in XXXX, wire Copper second of sales to very per resulted XXXX quarter the on $XXX.X culture the in Aluminum quarter common pound XXXX.The shares albeit deepen of This in one will decreased calls, X.X% of million net improve margin XXXX first few XLPE focused XLPE, third were our favorably our allowing tightness Remaining overall of the of integration our vertical our through earnings our XX.X% for repurchase employees, remained compared $XX.XX; XXXX, compared the hand tough a third year-to-date XXXX, spreads XXXX; stock quarter business to third approximately of insulation. I'm to copper the that a the average quarter of pound to kept in spreads by sold very net compared applications. of X.X% current primarily generation repurchasing Since XXXX, September labor flow for on we and we capital gross through gas,

the and in wire facility in and of to to processes increase mentioned, manufacturing in XXXX $XXX.X and sustainable capacity was environmentally-responsible modernize XXXX.Capital the reduce in integration As substantially efficiency as a as in $XXX.X Daniel further new million position facilities capital manufacturing quarter company. the completed X select XXXX. our million as expand XXXX months costs, vertical Total well spending through our of XXXX and will first were improve third expenditures

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

continue and the floor to Daniel flows.I existing these now final a to for turn will expect few to investments We cash over reserves fund cash operating remarks. with

Thank you, Bret.

well performance us positions X Our of the in months for XXXX strong future. the

without serve single-site service The business the Our quarter the quarter outlook XLPE of opening of market for remains a market competitive XXXX, giving new want us availability the on raw third level capacity to persistent the the competitive deliver excellence. of to term.Our the efficiency thanking other deliveries to to path.I the customers' in that work center a have model today. X in evolving the materials, their lie success advantage, of quick supplier employees of planned our in upon suppliers.Looking of market the share business us remain close under for the projects of and in of XXXX, long and in we we to us team Despite in our by competitively advantage quality Bret and gives Plant in to long-term the and new us partners operations Encore. speed-to-market our strength exceptional unmatched our certain ready well vertically-integrated facility any that Encore unbeatable wouldn't as ahead, May performance model our in coast-to-coast. in nimble stand continue demand provide their our strong, We mentioned and this the company, commitments remains tightness remain committed the core third capture serving hard in continues opening service, XXXX, confident customer to commitment agility I navigate solely of consistent, and safety, values conditions of current our capital challenges unique over should and and operational execute to needs. construction or place

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

questions opportunity our Our our from sector. employer financial team position shareholders incrementally to of strong to their in support.Jack, choice also our the as in Encore the for continued have as take results allowed invest we'll us want thank listeners. I now we an

[Operator Instructions] CJS Moore Securities. Christopher with

quarter. strong another on Congratulations

gross they gross is around just margins is kind we'll the key with Fiscal where normalize Obviously, targeting XX%. of right maybe 'XX question. start consensus So, margins.

So, maybe reasonable fiscal the off gross X is XX.X% that here. 'XX, of? to base questions Is work in margin a

great to a question, It's answer it I'd Chris, this and the call. way. welcome

of go the XX% XXXX. in the and I changes operational in it's those the implemented If that but to then, improved believe XXXX some XX.X% fully the for to, changes I of XX.X% say moved with we masked margins annualized were XX.X% in late some from in we reflected XXXX, back, year-to-date impact margin this: of in in XX.X% gross XXXX 'XX, and impact XXXX. made made mainly in and of that think, in it don't financial 'XX, annual throughout in realized changes margin XX.X% And I 'XX kind year. XXXX will jumping you

order time, a to We're against the also over start sure like little with. always I highest you tell to clarity think X a day week serving just and this up managing handfuls. you put I that you're immediate at business at the take is to baseline X wanted things to when a to it's a remains it. continue continue going order, our time, X picking great we around business, our tell I ship, level. a volume time, margin this we're will immediate a customers pennies that at back wall. put in I'd make even at pennies

in just number think So, start. as there's it's I think a probably to some noise well. great place I the

piece 'XX? it gross how gross the could will the second normalize? likely in what it. be of Got and just, the guess Very helpful. margins specifically, margins before Maybe I that is fiscal puts long are that takes bottom

Yes, go ahead.

the have market bumping the And issues slack incomplete that. been point, there's have has inventory. still I [ just to serving, a gear. a Chris, speaking. segments lack sitting overhang, at market that to we're lack add The Yes, market that then, no you to of this with. the in good funding. some well, of Industrial this got the the There's of say, piece chain that, bottom doing market begin because with to secret to rate. There's a and then, houses when on ]. has of the that completion at along, if of residential still some boost. commercial very lot a is obviously, contributing there's But you are projects it's was relatively supply government overhang, And some of going will, the steel pretty that There's you look that with is been interest financed already industrial

to or good that and but So, point, margin with hard for it's the materials if do raw is at do or the demand going future predict obviously we're you forward. or inputs, this serving, not what it in going the the to looks markets projected couple our that

that. it, last And Got and appreciate maybe just one.

wonder Given the this if thoughts seems any copper just there. pricing had at little supply-demand depressed a backdrop, you stage. I

facetious right? just You're Chris. well. and what of improvement signs a You some exactly ground, not were copper hear we from not absolutely fundamentals you the And days the all. is as despite right? It are right, July, showing from life of is, right? at vast supply in X China That's have here. I'm miners in there, read. above X.X you It's The being

production You see going there. and up consumption

$X.XX price that. is to order. representative a way rate stronger global But just playing dollar increases, That's copper a role just that and around where the So, is $X.XX, Interest like too obviously an some moving up uncertainty today. of the supply are of an manage steadily. copper all not sentiment has to way up. prices move low. easiest It's We in environment

even of and to other takes enough heard capital artificially so, it thing recently, incent the this now cover say, you're you hearing is to price low.The week, it's And cost it to not yes, them that copper of invest. miners

projects. so, And focusing projects, they'll brownfield slowing on greenfield some but they're start

You're deficit. slowing an already supply in that of the investment face significant

And China, so, think hardening to starts When that going just maybe grid for all really you're something our out then to A that's and price. to eventually interest fundamentals of some electrification the hits, in strength we wave basic supply start take and a lot get see in are it that. bit to has out regard you start level little federal there still these I in. as really programs and over, metal get the of believe to trickling on things handle the demand the to have give demand take of the to effect. and here, in with And rates I

D.A. Brent Davidson. Thielman with

far capacity in notable. of comp, in guess, you strength should kind year-on-year, some embedded going volume went sort volume forward. to customer there guess, half? too Or there, I that? Daniel, first X% sequentially, tough further X% off overall of uniquely-sized think were orders The in increase, Just a support I the of of pretty was the interpret interested I'd that, the sort your and to we kind how be destocking

orders that as some close Currently, new we bigger. labor, that Brent, and which cost-cutting to with, where of in-person, to them complete far I Most from hit to is complete. think to additional it center back as other are very catch, center, focusing the either can programs kind destocking meet Great usual. probably have ideas, Yes. very our in distributor customers of weeks they're or demand last met to on few service are appears question, and their piece. XX% we the of the we demand.And XX% And the then, here offer services piece industrial is doing the data still well, other big of as definitely your typically our with commercial the of that

the interest and You bigger. tacked that and are AI on orders the just big getting to investment

quarter. was complicated Our average order orders sign. up. the size one That's handle, is very little they're fits to heavy location business up in model. a positive a service-focused And more It always which our

a well. pretty quote fits it of capable value like I'm of looks providing for of of that installer bullish A at activity. picking There's on the we're timing. premium. lot the early that it market. So, that happening in lot up lot the A side, add-on side convenience-type in good. pretty It's the on are as phase call, mentioned pretty that tight of a on I is things that quote-to-order

day they're within or ready it quote to day, one a two. You and go

start purchase You ship to build and it it. order and write can the

So, well. side of the performing market that is pretty

relative of of slowing abatement there the second guess up, is that why to overall seeing Or complicated average prices? quarter the in orders, this as more these to and more sort going selling function helpful, really Daniel. is reason That's sizes order it? spreads And a average I you're

contributes. definitely It it. of part that's No,

record. long we got not getting and As a poorer. and interested larger not I've Bret mentioned, in are -- track I'm

we we're things, reps. it. the capabilities. in our involved. spot you forward. to. mess group seen of So we're team ask handle sales some again, got on to expertise why we our an there's that's and a rather what phenomenal technical But to a down speed-to-market house with to reality than we going got really that's going couple a it after handle I in go where pass for We've sales We've cannot CapEx the the you've these is, operationally handle, in some it up. winning. charge fantastic last And we're of these that's But I'd order a It good really it? is perspective think, the question, is when of that piece really substantial And years -- it that comes If manage can't there's

on jump that, just Brent. I'll And

I think resonating. that service model is really

it now. Our service absolutely model be. humming Fill where is back needs right to rate is

and service of seeing and is to getting that getting we're talked to you're us so, order. like And we what's on a the the side. and tomorrow, you it that copper these you're on able ship And a they Wednesday or a slowing margin need call also helping about sustain calls

spot me prices the quarter, that? when to Okay. purchase Or for the in to less around is then, calculated was And anything whereas it up least that upon like copper there read you than based bought at way X%, your metal it looked commodity the I in to Is quarter? just the an anomaly were from cost X%.

make purchases Brent. single I day, our all day, Listen, every

obviously, have month, so, it, that say the end can't it's the run based up that, the as on start price to anomaly. sprinkle opportunities is piece does is there available an so of big out, or go mid-month, average scrap we to is you that, a we much in or how shape kind with of and the that critical regard it plays the month are can price level. But And the I year. a pretty so, for months kind not how bouncing consistent X X Overall, the together back it's -- to and -- down with of look just after when obviously, last in quarter. kind the moved a of It's of slightly, It's to that the you whole around cost. lot the It's is all at comes of kind peak kind been the of come start the average through quarter, at

for maintain balance view on of Bret, in Okay. cash working sort just of $XXX All And right. your to sort around purposes? it sheet is the still like one. capital million you'd last

Yes.

million copper or the $XXX I think to $X million $XXX right number, and that's hits $X. is if

the our and fringes, cash right You remains in the that's there number, $XXX $XXX But on million line million obviously the comfortable opinion. cash Obviously, we untapped. number. my need to have that's that is out a

it. Got will. $XXX million it $XXX The to million deployable,

trying. I'm

Eric Capital. next with comes Hodges from question Our Instructions] Marshall [Operator

on guys. another great quarter, Congratulations

Just curious, elaborate don't wire have quarter know prices to copper guys this, I of you as the they the you, October, last area, closer come how $X.XX much in on but the here have just ended has since prices, days? much for industry, could the down declined the month in with but in general, as commodity not the XX

October, ] requote recovered Yes. the it $X.XX, about up We right July, ran When our customers I product beginning of low around essentially, high of went pound. end price it way, the ended there. obviously they phone, The of that -- it to $X.XX immediate. the have way the we [ volatility, type and a get When think and If we're $X.XX, in from this September was our the the the important. when other was we toward pound. to back. you in a you call they that's hang by where up -- is is about timing distributor low from about to about operating the that purchase August somewhere in $X.XX $X.XX, $X.XX, quarter it

you copper. be as can we're with So if you live as live hot, will, and

with the price based nor the go wire of very We quick are on solely to down prices not we building copper. first, are

which If we much you our other contributor Diesel way. you than look is big quotes expensive freight, which it diesel, the our started. at is the other a daily, in inputs, is more saw consideration where a to go

forth of they're in to at Part science, large is that of So, most copper there's art. out again, conversations, the these the it market. back see it market. the smooth good volatility trying in really And on in We're a you is part jobs, lot and of the both. of

this So, the it's looking can you the pricing numbers same exact almost aluminum. the aluminum is lay past.I was react wire copper as and some in Xx. volatility it's to if quick not an it you been take number morning, over and of up And duplicate pattern through building almost as

that's hearing the We're reactive jerking lot now in that a competitors of we're and in -- delivery to product forth. on the the market don't really not and focused So volatility, right back noise just on less great of from question. a the There's service lot have piece, on happened past. piece, time. to Eric, the a the that deliver and That's

I was average looking at like just the of the course over guess, the I quarter. third price copper

If July, looks me, price wire of least think, was, stable building $X.XX. around I Have August, spreads the take to first you September it quarter. -- month to like in ought be at the

the building what's not at prices with and looking statement? fair Just happened but industry. just wire what's happened in commodity, Encore, across the Is a that

for surprises happening at in September, there's can give only September. What's in end no I point. said we've the this of as And fair. you color past, It's October,

say could year? new the like far create you opportunities that, as Okay. any next Anything can about that or markets CapEx, anything growth as current for

And give more Eric, typically Well, pattern. color we we it will we wouldn't be them, making in our confident around weren't with right? if but the investments,

to in think, we As to, when referred come have That's in. project existing completion, with get Thielman's year. out we'll with closer to lean lean we on. we in detail expect Brent I report this a been going year-end I on little earlier earnings that more our

we'll lean through 'XX and point. that we'll ranges at so, that, CapEx in and 'XX And update then on

occupancy. We certificate get color of just getting want some a get to get too closer. to don't out closer there we'll as so, we And much competitive from information more our purpose we're until

Sidoti Julio & with Company. Romero

on side? the since hearing better seeing indicators projects, the are see to signaling wanted planning centers especially seeing earlier, What broader your you're non-residential. have maybe secular than that you or from drivers broader into, new about the slowdown sell Maybe a kind of little I just bit areas you customers, of Some of non-res start, overall that are bit non-residential macro a if to all of and a at data you of question. a in the demand overall talked

Yes.

If you residential positive But And part, best positive. regionally, net-net, quarters. in about last rank running the and had there's is with flat, was the also the most X residential for the we've Commercial the been numbers. categories, there's few downs. piece, industrial the slightly up what ups

it. bit, earlier little it if but asked differently. a a got this I ask Okay, bit was little can And maybe

about that you broader think just there, think that gradual Just we're should is how spread fourth the we up call less-than-ideal and the if consider that uncertainty how When sum environment, quarter about we kind right, and interpret, see up, normally of the the then quarter you fourth if if that we should should number on continue, the earnings the also we number? guess, all -- spread. spread everything, I abatement but copper ends

coming October talked that. And years in this a saw slow we're about side. is and order margins bigger that's of June about level, margins earlier copper we time, a influx 'XX we don't we highest of got one, the crystal And have a lot, aluminum the talked abatement X and XXXX, that a from the past it's that sustain Julio, at what's We've in service it's over about X a at if think talked abated. it at talked and imports. right, helping peaked ball, Well, aluminum a about right? You the that I year right? tough right? us still months at how orders X peaked We've copper look cliche, but X you've or fact this, those time, on have obviously, of we

that so, you to together. all have kind of And put

And fourth to the start You have to people out in to start fourth always the year. as then, big you October a land quarter. at to the quarter. close is things month always look try

destockings the to which see and plays think, model. want times those in at saw would We well a earlier that service new kind kind destocking of typical at distributor of occurred again levels have this I the that level, may you stayed our year. heavy into year into the very from March, not inventory carry lower

finish to to to you people may volume. start we out as big impact know, But volume going And, And from margin have year. over see you a so, an not that. that put always push we're

do so, I hard how say, it's take it. And to

federal it you closer and tracking, margin to those really a as has when volume little uplift going to so programs the what come getting think as to the entrenched, I far bit those? overall, is more, as, get the what at is look and funding, from start done

about then, Bret, -- color go-forward congratulations, And quarter, about by as facility. more some on press capital comment you capital appreciate spending plans. Understood. the And maybe talked about just But on spending we the the vertical on you talked next expand XLPE that completing about 'XX earlier, way, guys release, should the talk I guess, I some integration. the further through

kind should efficiencies and the CapEx incremental than reductions come return product of guess interpret for so more I the that volumes as or go-forward I So, cost from should lines?

talked XLPE than investment facility so, some the We've I that to And skilled can of going And of expanded analyze really, modernization efficiencies like right, model, certain the you're a you how center, even going today take think when that system. right? that That's and we investment, chain all lot analyzing so, would to service an facility, be could a It's be facilities. go with right, our help could vertical coming the part the It out through get be broken It to or be invest service that's costs anything both, keeps is because I improve to be what it's of of extent an plant the that back, with and that, distribution. to the think access facilities, as you can supply regularly, that's regard could new your right? you And it. not is a an labor. integration. right? process. can tough and different or

Some And your baseline improve really model. could very our or that I'd efficiency does argue service directly And is, all improve for improve service that's our they your model? cost. model. service capacity, be that investing

out the I service added pointing That's how because the service that a center thanks to remember of kind great And prop there. for color.

] with [ Deutsche Ulrich Voss Krebshilfe

year?The so quarter. great that? Are in from in right management. in you I million questions, interest And How about is would going $XXX I forward income be have do they you think. next cash new the from new What projected far? do you what revenue QX cash another to The the X now? treasuries? regarding invest second did any expect buybacks Congratulations facility question do facility,

perfect. Okay,

one? I got I think, a X. fourth there Okay. Was

pandemic, our go the to So, quotas revenue purposes, of was as we insulation. risk regard of number some all how others much in like but using place to I the trucks of We're you didn't of any own could the cross-link have there the you it's we're were that insulation as on with the of on offput uses profile the lot still initiative of to that in polymer of facility. in cost so, able we a was get. folks not as the only selling of that. talked insulation, didn't of during middle the were the that had. a like or XLPE through much actually about chain monthly the more in right? And cross-link facility, that governor the because would supply We the put offtake pandemic, from a have mainly one here as part to for coming of poly the We any double That the all really

facility, then fit. months $XXX where facility, the optimized, the and million. so, see much And going XX by ended you'll side, quarter out And fully optimize really we cash as see that's grow to as you to right, take management that, ability got the of to with reduction.On your you take X cost to the once own that's risk the right? You've it's that building ultimately, that

capital of share standpoint, of as use from February cash about, a And focus we We since been buybacks expenditures. on continue, consistent, talked that's and XXXX.

If million. you $XXX December million down look end went at to of went September, the cash from at the at of end $XXX about $XXX balance cash the that million

During CapEx. $XXX in roughly million in share that $XXX buybacks we and spent same million period,

million, down cash went $XXX spending only despite So $XXX million.

And X million do do off confidence X.X We rates so, June, but fairly short-term overnight a in the reauthorization, the the liquid.Yes. we over invest sheet continuing shares million the upped authorization back have in Board's which little million repurchases. those to in full remaining, you -- X.X shows a that's to be cash side keep you interest our when income, it have balance And listen, banks, and any for of cash. on interest securities, great

has contributing. so, interest been the And increase obviously rate

You've you've the a seen. million been $X $X.X $XX with running month, or $X interest million in probably cash quarter to a balance million million income to

go comment rates cash is. steady I balance on depending number I they easily it's post buybacks on cash really third can't basis, on the hold down, to a interest up, annual comes what or million think As quarter. $XX million $XX an balance the

up run be quarters Okay. kept to fair like rate might But is it before. the the that assume

you last XXX,XXX each X quarter, is can quarters, not and the look at design. Well, purchased to the around XXX,XXX we That right? by And identical. was almost amount right ironically,

in me that it's a back, to asked Someone weeks but of couple million of kind that million always been range. $XXX $XXX

you so, increased the saw And authorization.

you that And what so, can pattern I from want. take guess you

and X%. there funds the And borrow a you you're you into because who's borrowing wonder you of because the know are -- it's dividend, the that wonder put if there with if Treasuries short who last money I X.X shares, on know shorted stock one I and might some cheap do million fourth cheap companies. hedge Do be trade most question, short? a meager and why? going so really fancy to the I are wonder, of And Yes. is almost

volatility, don't is, period I Whenever if is someone rapid talk period that's just the that that some of frequent certain of seems to seen It don't. We've volatility. that all everyone always know relative who experience you know success we an price They going attract swings a a in like someone, they broader I them. type you're -- they the not pretty market. to time, short. investor want it's wide want. always of and are to short who wants

belief so, parts obviously in would gradually use you abate the normalize story, been the interest new whatever short want to and so, they to From can stories the I that that And going they're that margins and very the our of tell the as is, were keeps find what right? would there. results bulls clear that thesis I normalized right? bears our We've the normal And The margins that stories, short that back you're kind tell, pre-COVID go tell, levels level. to to is of the going to hey, that think abate. that

interest when if at in net XXXX, X.XX just that higher. divide if we since right, by challenges you higher and to made this, And nothing income, the else ] add at you it's [ point, starting and number base the look you right? count, but do take and you [ margins Some right, fundamentally XX% Volumes X.XX income then the share ]. now were a are today's least got than of up

where periods. lot mouth that normal. case forward repurchase the and are of from I we've they initiatives support the trading for disagree are material all think money well program.We're just demand with. respectfully is in raw something so still settle the is put And their with future our positive. our going you CapEx so, that the with if A valuation below at that still multiples our we But show last benefit And to remain or year the over benefits drivers then inputs, structural

think all with still I which So Board value that, evidences stock, consistent see repurchases the I quarter. tremendous with single our in every

at see. I shareholders. be we'll the some So, guess may shorts point

the went go that over copper them Yes. share are to gets we've we in betting our associate seen that Ulrich, with down, -- on and bet, with we copper -- get our stock we on also, had 'XX, downside. periods they'll the in plays. public years. where years lumped price going associate lumped folks on the over is the that If I've in

few We as keep a look to you control we type internally it. We have, best try don't to it. to that. do into try after know. things We go of with just So, up any

feel thing about and and easiest our are shorts buyback. mentioned, stock how the forward the the feelings Bret to So, see just what the going is multiples, as we

Davidson. final Thielman Our question with a Brent D.A. is follow-up from

in be a SG&A Bret, that how SARs cost quarter the think you clarify SG&A we embedded might about and Just just going could if this should forward. more. maybe couple wondering

Yes.

X it a We've expense release. If about we at lay really got bit out tried the months. in SARs -- press the $XX.X it million you look in a first and to

that I And in million the in talked charge in bulk saw to the 'XX charge $XX a first that's probably quarter you think million for $XX.X the number $X first is the million, came. million, we charge about actually million, the really first a took actually million. $XX benefit 'XX. the quarter where we of It $XX.X because quarter, of of the $X quarter was first that which swing the in compared

for that X and those in were basis And issued SARs. a would months. account last of The in last The ones January issuing difference the more. on We're by in $XX.X year-to-date million continues. We exercise of the the the difference employees 'XX. obviously get so, do not any

we're 'XX. X/X than down to had in January So of of less what we outstanding

marked that exercises so, that somewhat falls within it. in that of a so, the And below price of the wash. that above when what quarter-end to or was, and is kind that some then they price gets may of be out potentially of exercise quarter, someone be timing that whatever may that the And

your right. appreciate things, costs. full that then control And intended unlocks that, capacity Bret. some think maybe a it XLPE I The and potentially help follow-up. integration. I just some investment, this All having was to Maybe debottleneck

that were get areas in validates putting really that data for You've the other can excited if talked top that sort But this? you that investment product but into. that are product area? this into of there I about this down, goes of some accelerate about dollars the would centers imagine list, most to sort Daniel, those narrow you several that you of will list markets which markets

Yes.

demand being with the reconfigured center will, been product involved of upgrades, for -- grid, more installed. And the product more that products. amount the takes have a be With is that hardening the that's The announced, the are least become component data have of the most majority one that facilities, the It's additional each cross-link to or a programs of -- that of you of solidify efficient, that's AI those there's or for product. designs multipurpose, XLPE significant data whole if financially all for a federal product create The expansions treatment XLPE that the allows distribution XLPE. will the insulation. current XLPE of water of centers at to

conductors. So, it's with the XLPE for really substitution. on that good And and more aluminum copper some metal of the same is both

controlling be. that the it's part us. more to But internally. once, alone, But what And to an demand number without is top exciting upside existing question, you will, our of no going go enthusiasm to good and actual service cost, that had exciting programs, and to be going product route We're to It's control your put model. going that's mentioned, the control The on on So, is as idea. be there. the if with our there's hard with volume couple new you enthusiasm that to for side, that Bret sales managing, federal input it's is than substantial. a these state finger we

this big like recall Yes. opens ago. Daniel, fair for hardening, that it I'm you. don't areas, doors X-plus of but seems some wrong, Is new years being some I these up center, Maybe you grid renewable, data for markets a statement?

wire customers and business have We've supporting in It following of We're into just the customers identified. Existing as definitely not It's we same as us it. the the currently talked of more particular the should, reaching technology. does, are market that same into you thing may where are been have about for yes. make. segment been that existing that customers doing going The labeled past. peculiarities which past. the in their a areas is, It's good some it's

no back are over at time. now further presenters. I'd this There turn to the like the questions to call

involvement everyone's Appreciate and All today. and Jack. Thank it, right. you, I appreciate great questions

guys great afternoon. a You have

program. thank today's concludes This for participation. you We your

disconnect. now may You