WIRE 2018 Annual Report

March 25, 2019 To Our Stockholders: You are cordially invited to attend the annual meeting of stockholders on Tuesday, May 7, 2019 at 9:00 a.m., central time, at the corporate office of Encore Wire Corporation, located at 1329 Millwood Rd., McKinney, Texas. The purposes of the meeting are to elect directors for the ensuing year, to approve, in a non-binding advisory vote, the compensation of the Company’s named executive officers, to ratify the appointment of auditors for 2019, and to conduct other business that may properly come before the meeting. 2018 was a very good year. Net sales for the year ended December 31, 2018 were $1.289 billion, while net income for the year was $78.2 million, with fully diluted net earnings per common share of $3.74. This is the second-best net earnings per share in our history and is a 43% increase over last year. The overall construction and building wire markets remain strong. Anecdotal information confirms our belief that there are still large commercial and industrial projects in the pipeline. We believe that our costs are as low, or lower, than our competitors. We believe our superior order fill rates continue to enhance our competitive position, Our balance sheet is very strong, and our Board is focused on returning value to the stockholders. We have no long-term debt, and our revolving line of credit is paid down to zero. In addition, we had $178.4 million in cash as of December 31, 2018. Our strong financial position allows us to pursue product and plant expansion projects in the depths of business cycle downturns and to be poised to take advantage of upturns in business cycles when they occur. We will continue our efforts to grow the Company organically by providing our customers industry-leading order fill rates and innovative products. 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. We want to thank our stockholders for their support and assure them that the management team is dedicated to increasing stockholder value. We also wish to recognize the ongoing devotion and hard work of all our employees and associates whose efforts result in our continued growth and success. Daniel L. Jones Chairman, President and Chief Executive Officer