The Management Team and the Board of Directors of Encore Wire Corporation “WIRE” (NASDAQ Global Select) recognize you have thousands of companies you can invest your money in. We appreciate your interest in Encore Wire as a possible investment choice. We believe “WIRE” is a sound candidate to be considered as part of a balanced investment portfolio. We further believe that this company is a strong choice for investors who understand the cyclicality of our industry and the volatility of margins and earnings that result from the competitive environment we are in. Investors in Encore generally appreciate management’s grasp of the industry environment and their historically proven sound approach to dealing with it. Management strongly believes that the historical strength of the Company’s growth and earnings is attributable to the following main factors:
- Industry-leading order-fill rates and responsive customer service.
- Product innovations based on listening to and understanding customer needs.
- Low-cost manufacturing operations, resulting from a state-of-the-art manufacturing complex.
- A focused management team leading an incentivized work force.
- Low general and administrative overhead costs.
- A team of experienced independent manufacturers’ representatives with strong customer relationships across the United States.
These factors, and others, have allowed Encore Wire to grow from a startup in 1989 to what management believes is one of the largest copper electric building wire companies in the United States of America. Encore has built a loyal following of customers throughout the United States. These customers have developed a brand preference for Encore Wire in a commodity product line, due to the reasons noted above, among others. The Company prides itself on striving to grow sales by expanding its product offerings where profit margins are acceptable. Senior management monitors gross margins daily, frequently extending down to the individual order level. Management strongly believes that this focused approach to the building wire business has produced success thus far and will lead to continued success.
We also believe our strategy of growing the Company organically since it was started in 1989 and maintaining a strong balance sheet has served us well through the industry cycles. We have not leveraged the Company with debt to pay high multiples for acquisitions of other companies. We have maintained a low debt structure and used our Bank Lines of Credit primarily to support working capital needs.
Long before the “green movement” became popular, we were focused on reducing scrap and increasing recycling to reduce waste materials going to landfills. We did this because it “was the right thing to do” and because in the long run it enhanced our profits. We will continue our efforts to grow the Company organically by providing our customers industry-leading order fill rates and innovative products. We continue to focus on efficient low-cost production to maintain profitability in the current competitive environment. Although we cannot predict the future with any degree of certainty, we believe Encore is well positioned to take advantage of opportunities to grow our business and prosper in the future. less
Code of Business Conduct and Ethics
This Code of Business Conduct and Ethics (the “Code”) has been provided to our employees, officers and directors, in order to assist them in meeting our legal and ethical obligations.