The following table sets forth the computation of basic and diluted net earnings (loss) per share:
Weighted average employee stock options excluded from the determination of
diluted earnings (loss) per share for the first quarters were 483,659 in 2010
and 208,694 in 2009. Such options were anti-dilutive for the respective
periods, including the fact that in 2010 all outstanding options are
anti-dilutive because of the Company’s net loss for the quarter.
The Company is party to a Financing Agreement with two banks, Bank of America, N.A., as Agent, and
Wells Fargo Bank, National Association (as amended, the “Financing Agreement”). The Financing
Agreement extends through August 6, 2013, and provides for maximum borrowings of the lesser of
$150,000,000 or the amount of eligible accounts receivable plus the amount of eligible finished
goods and raw materials, less any reserves established by the banks. The calculated maximum
borrowing amount available at March 31, 2010, as computed under the Financing Agreement was
$139,709,181. Borrowings under the line of credit bear interest, at the Company’s option, at either
(1) LIBOR plus a margin that varies from 1.0% to 1.75% depending upon the ratio of debt outstanding
to adjusted earnings or (2) the base rate (which is the higher of the federal funds rate plus 0.5%
or the prime rate) plus 0% to 0.25% (depending upon the ratio of debt outstanding to adjusted
earnings). A commitment fee ranging from 0.20% to 0.375% (depending upon the ratio of debt
outstanding to adjusted earnings) is payable on the unused line of credit. On March 31, 2010, there
were no borrowings outstanding under the Financing Agreement. Obligations under the Financing
Agreement are the only contractual borrowing obligations or commercial borrowing commitments of the
Company.
first quarter, the Company executed an amendment to the Financing Agreement that reduced the fixed charge ratio that the Company must maintain and amended
certain related definitions. The Company was in compliance with the revised covenants as of March
31, 2010.
The Company, through its agent bank, was also a party to a Note Purchase Agreement (the “2004 Note
Purchase Agreement”) with Hartford Life Insurance Company, Great-West Life & Annuity Insurance
Company, London Life Insurance Company and London Life and Casualty Reinsurance Corporation
(collectively, the “2004 Purchasers”), whereby the Company issued and sold $45,000,000 of 5.27%
Senior Notes, Series 2004-A, due August 27, 2011 (the “Fixed Rate Senior Notes”) to the 2004
Purchasers, the proceeds of which were used to repay a portion of the Company’s outstanding
indebtedness under its previous financing agreement.
On September 28, 2006, the Company, through its agent bank, entered into a second Note Purchase
Agreement (the “2006 Note Purchase Agreement”) with Metropolitan Life Insurance Company, Metlife
Insurance Company of Connecticut and Great-West Life & Annuity Insurance Company, whereby the
Company issued and sold $55,000,000 of Floating Rate Senior Notes, Series 2006-A, due September 30,
2011 (the “Floating Rate Senior Notes”), the proceeds of which were used to repay a portion of the
Company’s outstanding indebtedness under its Financing Agreement.
On January 15, 2010, the Company used available cash to pay off all of its then outstanding debt,
comprised of the Fixed Rate Senior Notes and the Floating Rate Senior Notes. The Company paid off
the $100 million debt with a payment totaling $103.8 million, which included accrued and unpaid
interest, along with a pre-payment
fee applicable to the Fixed Rate Senior Notes. The Company incurred a one-time charge of $2.6
million in 2010 in connection with this transaction.
NOTE 7 – STOCK REPURCHASE AUTHORIZATION
On November 10, 2006, the Board of Directors approved a stock repurchase program authorizing the
Company to repurchase up to 1,000,000 shares of its common stock through December 31, 2007 on the
open market or through privately negotiated transactions at prices determined by the President of
the Company. The Company’s Board of Directors has subsequently authorized annual extensions of
this stock repurchase program through February 28, 2011 authorizing the Company to repurchase up to
the remaining 610,000 shares of its common stock. On February 15, 2010, the Board of directors
added an additional 2 million shares to this authorization, authorizing the Company to purchase up
to 2,610,000 of its shares through February 28, 2011. The Company did not repurchase any shares of
its stock in the first quarters of 2010 or 2009.
NOTE 8 – CONTINGENCIES
On July 7, 2009, Southwire Company, a Delaware corporation (“Southwire”), filed a complaint for
patent infringement against the Company and Cerro Wire, Inc. in the United States District Court
for the Eastern District of Texas. In the complaint, Southwire alleges that the Company has
infringed one or more claims of United States Patent No. 7,557,301, entitled “Method of
Manufacturing Electrical Cable Having Reduced Required Force for Installation,” by making and
selling electrical cables, including the Company’s Super Slick cables. On February 5, 2010, the
United States Patent and Trademark
8
Office (the “USPTO”) ordered the re-examination of the U.S.
Patent 7,557,301. In ordering re-examination of Southwire’s ‘301 patent, the USPTO has determined
that the Company’s submission of prior art not previously considered during the original
examination of the ‘301 patent has raised a substantial new question of patentability of the claims
of the ‘301 patent. In the re-examination, an Examiner in the USPTO will review the claims of the
Southwire ‘301 patent and make a new determination of the patentability of those claims.
On August 24, 2009, Southwire filed a second complaint for patent and trademark infringement
against the Company. In the second complaint, Southwire has alleged that the Company infringed one
or more of the claims of United States Patent No. 6,486,395 entitled “Interlocked Metal Clad Cable”
by making and selling electrical cables, including the Company’s MCMP Multipurpose cables.
Southwire has also alleged that the Company has infringed Southwire’s United States Trademark
registration for the mark, “MCAP”, Registration No. 3,292,777. The second complaint also alleges
violations of Federal, State and Common law unfair competition claims. The Company has filed
counterclaims against Southwire alleging claims of statutory and common law unfair competition
violations, tortious interference with existing and prospective business relations,
misappropriation and claims for declaratory relief.
The complaints seek unspecified damages and injunctive relief. The Company disputes all of
Southwire’s claims and alleged damages and intends to vigorously defend the lawsuits and vigorously
pursue its own claims.
The Company is also a party to litigation and claims arising out of the ordinary business of the
Company.
NOTE 9 – SUBSEQUENT EVENTS
Subsequent events were evaluated through the date the financial statements were issued.
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| Item 2. |
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
General
The Company is a low-cost manufacturer of copper electrical building wire and cable. The Company
is a significant supplier of residential wire for interior wiring in homes, apartments and
manufactured housing and commercial wire for commercial and industrial buildings.
The Company’s operating results in any given time period are driven by several key factors,
including the volume of product produced and shipped, the cost of copper and other raw materials,
the competitive pricing environment in the wire industry and the resulting influence on gross
margins and the efficiency with which the Company’s plants operate during the period, among others.
Price competition for electrical wire and cable is intense, and the Company sells its products in
accordance with prevailing market prices. Copper is the principal raw material used by the Company
in manufacturing its products. Copper accounted for approximately 73.5% and 90.3% of the Company’s
cost of goods sold during fiscal 2009 and 2008, respectively. The price of copper fluctuates,
9
depending on general economic conditions and in relation to supply and demand and other factors,
which has caused monthly variations in the cost of copper purchased by the Company. The Company
cannot predict future copper prices or the effect of fluctuations in the cost of copper on the
Company’s future operating results.
The following discussion and analysis relates to factors that have affected the operating results
of the Company for the quarterly periods ended March 31, 2010 and 2009. Reference should also be
made to the audited financial statements and notes thereto included in the Company’s Annual Report
on Form 10-K for the year ended December 31, 2009.
Results of Operations
Quarter Ended March 31, 2010 Compared to Quarter Ended March 31, 2009
Net sales for the first quarter of 2010 amounted to $175.2 million compared with net sales of
$144.5 million for the first quarter of 2009. This dollar increase was primarily the result of a
74.7% increase in the price of wire sold partially offset by a 30.6% decrease in the unit volume of
product shipped. The average cost per pound of raw copper purchased increased 106% in the first
quarter of 2010 compared to the first quarter of 2009, and was the principal driver of the
increased average sales price of wire. The Company believes the volume of wire sold decreased due
to several factors including, primarily, the slowdown in construction throughout the United States that continued in 2010 and to
a lesser extent, the Company’s concerted efforts to support price increases in the building wire
industry instead of cutting prices to increase volumes. Fluctuations in sales prices are primarily
a result of changing copper raw material prices and product price competition.
Cost of goods sold increased to $164.6 million, or 94.0% of net sales, in the first quarter of
2010, compared to $126.7 million, or 87.7% of net sales, in the first quarter of 2009. Gross
profit decreased to $10.6 million, or 6.0% of net sales, in the first quarter of 2010 versus $17.8
million, or 12.3% of net sales, in the first quarter of 2009. The decreased gross profit and gross
margin percentages were primarily the result of the increase in raw material costs (including LIFO
adjustments) in percentage terms in 2010 versus 2009. In comparing the first quarter of 2010 to
the first quarter of 2009, the average sales price of wire that contained a pound of copper
increased 74.7%, while the average price of copper purchased during the quarter increased 106%.
This resulted in total materials cost equaling 86.2% of net sales in the first quarter of 2010
versus 75.7% in the first quarter of 2009.
Inventories are stated at the lower of cost, using the last-in, first-out (LIFO) method, or market.
The Company maintains only one inventory pool for LIFO purposes as all inventories held by the
Company generally relate to the Company’s only business segment, the manufacture and sale of copper
building wire products. As permitted by U.S. generally accepted accounting principles, the Company
maintains its inventory costs and cost of goods sold on a first-in, first-out (FIFO) basis and
makes a quarterly adjustment to adjust total inventory and cost of goods sold from FIFO to LIFO.
The Company applies the lower of cost or market (LCM) test by comparing the LIFO cost of its raw
materials, work-in-process and finished goods inventories to estimated market values, which are
based primarily upon the most recent quoted market price of copper, in pound quantities, as of the
end of each reporting period. Additionally, future
10
reductions in the quantity of inventory on hand
could cause copper that is carried in inventory at costs different from the cost of copper in the
period in which the reduction occurs to be included in cost of goods sold for that period.
As a result of increasing copper costs, offset slightly by a decrease in the quantity of inventory
on hand during the first quarter of 2010, a LIFO adjustment was recorded increasing cost of sales
by $8.5 million during the quarter. Based on copper prices at the end of the quarter, no LCM
adjustment was necessary. Future reductions in the price of copper could require the Company to
record an LCM adjustment against the related inventory balance, which would result in a negative
impact on net income.
Selling expenses, consisting of commissions and freight, for the first quarter of 2010 were $7.6
million, or 4.3% of net sales, compared to $7.6 million, or 5.2% of net sales, in the first quarter
of 2009. Commissions paid to independent manufacturers’ representatives are calculated as a
percentage of sales, and therefore, rose $696,000 in concert with the increased sales dollars.
This increase in commissions was offset by freight costs, which decreased $646,000 due to the
decrease in unit sales. General and administrative expenses increased to $4.3 million, or 2.4% of
net sales, in the first quarter of 2010 compared to $3.0 million, or 2.1% of net sales, in the
first quarter of 2009. The general and administrative costs rose primarily due to increased legal
and administrative costs. The provision for bad debts was $75,000 in the first quarter of both
2010 and 2009.
The net interest and other income and expense category increased in expense to $2.7 million in the
first quarter of 2010 from $288,000 expense in the first quarter of 2009, due primarily to the $2.6
million one-time charge associated with the early retirement of the Company’s $100 million in
long-term notes payable. Income taxes were accrued at an effective rate of negative 39.65% that
benefited net income (by reducing the loss) in the first quarter of 2010 versus a 33.5% expense in
the first quarter of 2009, consistent with the Company’s estimated liabilities. The volatility of
the effective rate is due to the fact that relatively small dollar amounts of book versus tax
adjustments have a larger percentage impact when the pre-tax earnings are near break even.
As a result of the foregoing factors, the Company had a net loss of $2.5 million in the first
quarter of 2010 versus net income of $4.6 million in the first quarter of 2009.
Liquidity and Capital Resources
The Company maintains a substantial inventory of finished products to satisfy the prompt delivery
requirements of its customers. As is customary in the industry, the Company provides payment terms
to most of its customers that exceed terms that it receives from its suppliers. Therefore, the
Company’s liquidity needs have generally consisted of operating capital necessary to finance these
receivables and inventory. Capital expenditures have historically been necessary to expand the
production capacity of the Company’s manufacturing operations. The Company has historically
satisfied its liquidity and capital expenditure needs with cash generated from operations,
borrowings under its various debt arrangements and sales of its common stock. Prior to building
the current substantial cash balance, the Company historically used its revolving credit facility
to manage day to day operating cash needs as required by daily fluctuations in working capital, and
has the facility in place should such a need arise in the future.
11
The Company is party to a Financing Agreement with two banks, Bank of America, N.A., as Agent, and
Wells Fargo Bank, National Association (as amended, the “Financing Agreement”). The Financing
Agreement extends through August 6, 2013, and provides for maximum borrowings of the lesser of
$150,000,000 or the amount of eligible accounts receivable plus the amount of eligible finished
goods and raw materials, less any reserves established by the banks. The calculated maximum
borrowing amount available at March 31, 2010, as computed under the Financing Agreement was
$139,709,181. Borrowings under the line of credit bear interest, at the Company’s option, at either
(1) LIBOR plus a margin that varies from 1.0% to 1.75% depending upon the ratio of debt outstanding
to adjusted earnings or (2) the base rate (which is the higher of the federal funds rate plus 0.5%
or the prime rate) plus 0% to 0.25% (depending upon the ratio of debt outstanding to adjusted
earnings). A commitment fee ranging from 0.20% to 0.375% (depending upon the ratio of debt
outstanding to adjusted earnings) is payable on the unused line of credit. On March 31, 2010, there
were no borrowings outstanding under the Financing Agreement. Obligations under the Financing
Agreement are the only contractual borrowing obligations or commercial borrowing commitments of the
Company.
Obligations under the Financing Agreement are unsecured and contain customary covenants and events
of default. The Company was not in compliance with these covenants as of December 31, 2009. The
Company received a waiver for those covenant violations from the two banks for the December
31st reporting period. In the first quarter, the Company executed an amendment to the
Financing Agreement that reduced the fixed charge ratio that the Company must maintain and amended certain related
definitions. The Company was in compliance with the revised covenants as of March 31, 2010.
The Company, through its agent bank, was also a party to a Note Purchase Agreement (the “2004 Note
Purchase Agreement”) with Hartford Life Insurance Company, Great-West Life & Annuity Insurance
Company, London Life Insurance Company and London Life and Casualty Reinsurance Corporation
(collectively, the “2004 Purchasers”), whereby the Company issued and sold $45,000,000 of 5.27%
Senior Notes, Series 2004-A, due August 27, 2011 (the “Fixed Rate Senior Notes”) to the 2004
Purchasers, the proceeds of which were used to repay a portion of the Company’s outstanding
indebtedness under its previous financing agreement.
On September 28, 2006, the Company, through its agent bank, entered into a second Note Purchase
Agreement (the “2006 Note Purchase Agreement”) with Metropolitan Life Insurance Company, Metlife
Insurance Company of Connecticut and Great-West Life & Annuity Insurance Company, whereby the
Company issued and sold $55,000,000 of Floating Rate Senior Notes, Series 2006-A, due September 30,
2011 (the “Floating Rate Senior Notes”), the proceeds of which were used to repay a portion of the
Company’s outstanding indebtedness under its Financing Agreement.
On January 15, 2010, the Company used available cash to pay off all of its then outstanding debt,
comprised of the Fixed Rate Senior Notes and the Floating Rate Senior Notes. The Company paid off
the $100 million debt with a payment totaling $103.8 million, which included accrued and unpaid
interest, along with a pre-payment fee applicable to the Fixed Rate Senior Notes. The Company
incurred a one-time charge of $2.6 million in 2010 in connection with this transaction and expects
to realize a
12
net cash savings of $1.8 million based on current interest rates over the original
remaining life of the notes.
Cash provided by operating activities was $7.2 million in the first quarter of 2010 compared to
$25.7 million in the first quarter of 2009. The following changes in components of cash flow were
notable. The Company had a net loss in the first quarter of 2010 versus net income in the first
quarter of 2009, providing $7.1 million less cash. Accounts receivable declined in the first
quarter of 2009, providing $16.4 million in cash, while accounts receivable rose by $9.4 million in
the first quarter of 2010, resulting in a use of cash and a $25.9 million negative swing in cash
provided by operations. Other assets and liabilities decreased cash flow by $7.0 million in the
first quarter of 2010 versus a $0.1 million contribution in the first quarter of 2009, primarily
due to a $7.1 million increase in prepaid assets associated with prepaid copper inventory at March
31, 2010. These uses of cash in the first quarter of 2010 were offset by the following positive
swings in cash flow from the first quarter of 2009 to the first quarter of 2010. The dollar value
of inventories increased slightly in the first quarter of 2009, consuming $2.0 million in cash
versus a source of cash of $10.0 million due to a decrease in inventory in the first quarter of
2010. Trade accounts payable and accrued liabilities had a $13.9 million increase in cash flow
provided in the first quarter of 2010 versus the first quarter of 2009 due primarily to the
increase in accounts payable, attributable to timing of inventory receipts at quarter end. These
changes in cash flow were the primary drivers of the $18.5 million decrease in cash flow from
operations in the first quarter of 2010 versus the first quarter of 2009.
Cash used in investing activities decreased to $3.1 million in the first quarter of 2010 from $12.2
million in the first quarter of 2009. In the first quarter of 2010, the funds were used primarily
for equipment purchases, which were much lower. The $100.5 million of cash used in financing
activities in the first quarter of 2010 was primarily the result of the Company’s early retirement
of long-term notes payable discussed above. In the first quarter of 2010, the Company’s revolving
line of credit remained at $0. The Company’s cash balance was
$130.4 million at March 31, 2010.
During the remainder of 2010, the Company expects its capital expenditures will consist primarily
of purchases of additional plant and equipment for its building wire operations. The total capital
expenditures for all of 2010 associated with these projects are currently estimated to be between
$16 million and $19 million. The Company will continue to manage its working capital requirements.
These requirements may increase as a result of increased sales and may be impacted by the price of
copper. The Company believes that the current cash balance, cash flow from operations, and the
financing available under the Financing Agreement will satisfy working capital and capital
expenditure requirements during 2010.
Information Regarding Forward Looking Statements
This quarterly report on Form 10-Q contains various “forward-looking statements” (within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended) and information that are based on management’s belief as well as
assumptions made by and information currently available to management. The words “believes”,
“anticipates”, “plans”, “seeks”, “expects”, “intends” and similar expressions identify some of the
forward-looking statements. Although the Company believes that the expectations reflected in such
13
forward-looking statements are reasonable, it can give no assurance that such expectations will
prove to have been correct. Such statements are subject to certain risks, uncertainties and
assumptions. Should one or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those expected. Among the key
factors that may have a direct bearing on the Company’s operating results are fluctuations in the
economy and in the level of activity in the building and construction industry, demand for the
Company’s products, the impact of price competition and fluctuations in the price of copper. For
more information regarding “forward looking statements” see “Information Regarding Forward Looking
Statements” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the year ended
December 31, 2009, which is hereby incorporated by reference.
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| Item 3. |
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Quantitative and Qualitative Disclosures About Market Risk. |
There have been no material changes from the information provided in Item 7A, “Quantitative and
Qualitative Disclosures About Market Risk,” of the Company’s Annual Report on Form 10-K for the
year ended December 31, 2009.
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| Item 4. |
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Controls and Procedures. |
The Company maintains controls and procedures designed to ensure that information required to be
disclosed by it in the reports it files with or submits to the Securities and Exchange Commission
(the “SEC”) is recorded, processed, summarized and reported, within the time periods specified in
the SEC’s rules and forms and to ensure that information required to be disclosed by the Company in such reports is accumulated and communicated
to the Company’s management, including the Chief Executive and Chief Financial Officers, as
appropriate to allow timely decisions regarding required disclosure. Based on an evaluation of the
Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period
covered by this report conducted by the Company’s management, with the participation of the Chief
Executive and Chief Financial Officers, the Chief Executive and Chief Financial Officers concluded
that the Company’s disclosure controls and procedures were effective to ensure that information
required to be disclosed by the Company in the reports it files with or submits to the SEC is
recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules
and forms and to ensure that information required to be disclosed by the Company in such reports is
accumulated and communicated to the Company’s management, including the Chief Executive and Chief
Financial Officers, as appropriate to allow timely decisions regarding required disclosure.
There have been no changes in the Company’s internal control over financial reporting or in other
factors that have materially affected, or are reasonably likely to materially affect, internal
control over financial reporting during the period covered by this report.
PART II—OTHER INFORMATION
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| Item 1. |
|
Legal Proceedings. |
There have been no material developments in the legal proceedings described in Part I, Item 3.
“Legal Proceedings” of the Company’s annual report on Form 10-K for the year ended December 31,
2009.
14
There have been no material changes to the Company’s risk factors as disclosed in Item 1A, “Risk
Factors,” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009.
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| Item 2. |
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Unregistered Sales of Equity Securities and Use of Proceeds. |
Issuer Purchases of Equity Securities
On November 10, 2006, the Board of Directors approved a stock repurchase program authorizing the
Company to repurchase up to 1,000,000 shares of its common stock through December 31, 2007 on the
open market or through privately negotiated transactions at prices determined by the President of
the Company. The Company’s Board of Directors has subsequently authorized annual extensions of
this stock repurchase program through February 28, 2011 authorizing the Company to repurchase up to
the remaining 610,000 shares of its common stock. On February 15, 2010, the Board of directors
added an additional 2 million shares to this authorization, authorizing the Company to purchase up
to 2,610,000 of its shares through February 28, 2011. The Company did not repurchase any shares of
its stock in the first quarter of 2010.
The information required by this Item 6 is set forth in the Index to Exhibits accompanying this
Form 10-Q.
15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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ENCORE WIRE CORPORATION |
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(Registrant) |
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| Dated: May 6, 2010
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/s/ DANIEL L. JONES
Daniel L. Jones, President and
Chief Executive Officer |
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| Dated: May 6, 2010
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/s/ FRANK J. BILBAN
Frank J. Bilban, Vice President – Finance,
Chief Financial Officer,
Treasurer and Secretary |
16
INDEX TO EXHIBITS
| |
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|
| Exhibit |
|
|
| Number |
|
Description |
|
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|
3.1
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Certificate of Incorporation of Encore Wire Corporation and all
amendments thereto (filed as Exhibit 3.1 to the Company’s
Quarterly Report on Form 10-Q for the quarter ended March 31,
2009, and incorporated herein by reference). |
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3.2
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Second Amended and Restated Bylaws of Encore Wire Corporation, as
amended through December 13, 2007 (filed as Exhibit 3.2 to the
Company’s Annual Report on Form 10-K for the year ended December
31, 2007, and incorporated herein by reference). |
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10.1
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Fifth Amendment dated March 26, 2010 to Credit Agreement dated
August 27, 2004 by and among Encore Wire Corporation, as Borrower,
Bank of America, N.A., as Agent, and Bank of America, N.A. and
Wells Fargo Bank, National Association, as Lenders (filed as
Exhibit 10.1 to the Company’s Current Report on Form 8-K filed
with the SEC on April 1, 2010). |
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31.1
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|
Certification by Daniel J. Jones, President and Chief Executive Officer of Encore Wire
Corporation, dated May 6, 2010 and submitted pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002. |
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31.2
|
|
Certification by Frank J. Bilban, Vice President-Finance, Chief
Financial Officer, Treasurer and Secretary of Encore Wire
Corporation, dated May 6, 2010 and submitted pursuant to Rule
13a-14(a)/15d-14(a) and pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002. |
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32.1
|
|
Certification by Daniel L. Jones, President and Chief Executive
Officer of Encore Wire Corporation, dated May 6, 2010 and
submitted as required by 18 U.S.C. 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002. |
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32.2
|
|
Certification by Frank J. Bilban, Vice President-Finance, Chief
Financial Officer, Treasurer and Secretary of Encore Wire
Corporation, dated May 6, 2010 as required by 18 U.S.C. 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |