Encore Wire Announces Expanded Stock Repurchase Plan

Rhea-AI Summary

Encore Wire Corporation (NASDAQ: WIRE) has expanded its share repurchase authorization to 2,000,000 shares, effective until March 31, 2023. This increase from the previous 1,000,000 shares underscores the company's strong financial performance and commitment to shareholder value. The CEO, Daniel L. Jones, highlighted the company's record profitability and its strategic focus on growth, vertical integration, and cost-efficiency. The robust cash balance and free cash flow enable Encore Wire to enhance returns for its shareholders while maintaining a high level of customer service.

Positive

• Expanded share repurchase authorization from 1,000,000 to 2,000,000 shares.
• Record profitability in the company's history.
• Strong cash balance and free cash flow supporting shareholder returns.

Negative

• None.

MCKINNEY, Texas--(BUSINESS WIRE)-- Encore Wire Corporation (NASDAQ Global Select: WIRE) announced today that the Company’s Board of Directors has authorized the Company to repurchase up to 2,000,000 shares of its common stock through March 31, 2023. Previously, the Company’s Board of Directors had authorized the Company to repurchase up to 1,000,000 shares under its stock repurchase plan.

Daniel L. Jones, Chairman, President and Chief Executive Officer of Encore Wire Corporation, said, “We are pleased to announce an expansion of our share repurchase authorization following the most profitable year in our Company's history. Since inception, Encore Wire has prioritized strategically re-investing in our business. Our focus on organic growth, vertical integration and cost-reduction, while providing industry-leading customer service, has allowed us to thrive in the current operating environment. Our bolstered cash balance and strong free cash flow are now allowing us to enhance value creation and capital return for our shareholders.”

Encore Wire Corporation is a leading manufacturer of a broad range of electrical building wire for interior wiring in commercial and industrial buildings, homes, apartments, and manufactured housing. The Company focuses on maintaining a high level of customer service with low-cost production and the addition of new products that complement its current product line.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220217005955/en/

Bret J. Eckert

Chief Financial Officer

972-562-9473

Source: Encore Wire Corporation

FAQ

What is the new share repurchase authorization for Encore Wire Corporation?

Encore Wire Corporation has authorized a repurchase of up to 2,000,000 shares of its common stock.

When does the share repurchase program for WIRE expire?

The share repurchase program will remain in effect until March 31, 2023.

What are the reasons behind the expanded share buyback?

The expansion is driven by record profitability and a strong cash position to enhance shareholder returns.

How has Encore Wire performed financially recently?

The company reported its most profitable year in history, enabling the increase in share repurchase.

How does share repurchase impact Encore Wire's stock price?

Typically, share repurchases can positively influence stock price by reducing the number of shares outstanding and signaling company confidence.