Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-Q ___________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ For the transition period from to Commission File Number: 000-20278 ___________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-Q ___________________________________________ (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Table of Contents ___________________________________________ ENCORE WIR ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-Q ___________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-20278 _______________ ...

Company Overview - Encore Wire Corporation is a low-cost manufacturer of electrical building wire and cable, with a significant share in the commercial and industrial building market[13]. - As of December 31, 2018, Encore had 1,278 employees, with a focus on maintaining high production standards and product quality[30]. - The Company has been recognized for its commitment to environmental practices, including recycling tens of millions of pounds of scrap copper annually[39]. Financial Performance - Net sales for 2018 were $1.289 billion, a 10.7% increase from $1.164 billion in 2017, driven by an 11.8% increase in copper wire sales[93]. - Gross profit margin improved to 14.7% in 2018 from 13.4% in 2017, reflecting effective cost management and pricing strategies[91]. - Operating income increased to $99.5 million in 2018, representing 7.7% of net sales, compared to 6.8% in 2017[91]. - Net income for 2018 was $78.15 million, or 6.1% of net sales, up from 5.8% in 2017[91]. - Working capital increased to $445.67 million in 2018, compared to $375.35 million in 2017[82]. - Total assets rose to $818.06 million in 2018, up from $733.98 million in 2017[82]. - The company reported net cash provided by operating activities of $81,590,000 in 2018, compared to $48,013,000 in 2017, an increase of about 70.0%[159]. - Net income for 2018 was $78,150,000, a significant increase from $67,017,000 in 2017, marking a growth of approximately 16.8%[153]. Cost Structure - Copper constituted 83.5% of the dollar value of all raw materials used by the Company during 2018, with copper rod fabrication meeting virtually all of the Company's requirements[31][32]. - Copper accounted for approximately 73.0%, 69.7%, and 65.2% of the costs of goods sold during 2018, 2017, and 2016, respectively, indicating a significant reliance on copper prices[49]. - Cost of goods sold was $1.099 billion in 2018, with copper costs included at $802.7 million, representing 62.3% of net sales[99]. Market and Competition - The electrical wire and cable industry is cyclical, with sales trends closely tied to general construction activity, which has shown recovery since 2013[52]. - The company faces intense competition from larger manufacturers, which may impact its market position and pricing strategies[56]. - The Company is committed to expanding its market share through customer service and the introduction of new complementary products[15]. Risk Factors - The company has not engaged in hedging strategies for raw material purchases, which exposes it to risks from raw material price volatility[49]. - The company's operating results may fluctuate due to variations in product demand, shipment volumes, and increases in raw material and freight costs[50]. - The company is subject to environmental regulations that could result in significant future expenditures related to compliance and remediation[55]. - Future sales of common stock could adversely affect the market price of the company's common stock, depending on the volume and timing of such sales[61]. Shareholder Information - A small number of significant stockholders own greater than 44% of the company's outstanding common stock, which could influence corporate governance decisions[59]. - The company has a stock repurchase program with 1,132,946 shares authorized for repurchase as of December 31, 2018, although no shares were repurchased in 2016, 2017, or 2018[73]. Taxation - The effective tax rate was 23.1% in 2018, compared to 16.1% in 2017, influenced by the Tax Cuts and Jobs Act of 2017[109]. - Total income tax expense for 2018 was $23.534 million, an increase of 83% from $12.859 million in 2017[192]. Inventory and Assets - Total inventories at year-end 2018 were valued at $102.4 million, reflecting a LIFO adjustment that decreased cost of sales by $6.5 million[101]. - Total stockholders' equity increased to $720,456,000 in 2018 from $641,345,000 in 2017, representing a growth of approximately 12.3%[149]. Employee Compensation - The Company matched contributions to its 401(k) profit sharing plan amounting to $2.1 million in 2018, $1.9 million in 2017, and $1.9 million in 2016[209].