Encore Wire Corporation

Good morning. My name is Rob and I'll be your conference operator today. At this time, I would like to welcome everyone to the Encore Wire fourth quarter and full year 2022 results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, just press the star one. Thank you. Brett Eckert, you may begin your conference.

Thanks, Rob. Good morning, and welcome to the Encore Wire Corporation quarterly conference call. I'm Brett Eckert, Executive Vice President and Chief Financial Officer of Encore Wire. With me this morning is Daniel Jones, President, CEO, and Chairman of the Board. In a minute, we will review Encore's financial results for the quarter and year ended December 31, 2022. After the financial review, we will take any questions you may have. Before we review the financials, let me indicate that throughout this conference call, we may be making certain statements that might be considered to be forward-looking. In order to comply with certain securities legislation, and instead of attempting to identify each particular statement as forward-looking, we advise you that all such statements involve certain risks and uncertainties that could cause actual results to differ materially from those discussed today. I refer each of you to the company's SEC reports and news releases for a more detailed discussion of these risks and uncertainties. Also, reconciliations of non-GAAP financial measures discussed during this conference call to the most directly comparable financial measures presented in accordance with GAAP, including EBITDA, which we believe to be useful supplemental information for investors, are posted on our website. I'll now turn the call over to Daniel for some opening remarks. Daniel?

Thank you, Brett. Good morning, everyone. Thank you for joining us on the call and for your interest in Encore Wire. We appreciate your continued investment, confidence, and support. Our results in 2022 mark another year of exceptional earnings, strong cash flow, and consistent volume growth. Our single-site, vertically integrated business model affords us the flexibility and agility to quickly adapt to changing market conditions while continuing to serve our customers at a level consistent with our high standards. Continued tightness in the availability of key raw materials and the general inability of the sector to meet demand for the timely delivery of finished goods kept spreads strong in the fourth quarter of 2022. Our key suppliers continue to perform at a high level, which positions us favorably in meeting customer demand in a timely manner. By continuing to execute on our core values of providing unbeatable customer service and high order fill rates, we were able to increase both copper and aluminum volumes shipped in the fourth quarter and year date periods in 2022 over 2021 levels I continue to believe that our operational agility, speed to market, and deep supplier relationships can remain competitive advantages in serving our customers' evolving needs. We remain committed to reinvesting in our business with current and planned projects focused on increasing capacity, efficiency, and vertical integration across our campus. Copper unit volumes increased 7.9% on both a comparative quarter basis and on a year-to-date basis. COMEX copper prices increased gradually throughout the fourth quarter, while other raw material costs and inputs decreased slightly. Copper spreads decreased 13.7% on a comparative quarter basis and increased 1.9% on a full year basis. Aluminum spreads and volumes increased for both the quarter and four-year periods in 2022 compared to 2021. The gradual abatement of copper spreads in the quarter was more than offset by increased aluminum spreads and an overall increase in total volumes shipped. We continue to believe Encore Wire remains well-positioned to capture market share and incremental growth in the current economic environment. As we address the near-term challenges, we remain focused on the long-term opportunities for our business, including improving our position as a sustainable and environmentally responsible company in our industry. We believe that our superior order fill rates and deep vertical integration continue to enhance our competitive position. As orders come in from electrical contractors, our distributors can continue to depend on us for quick deliveries coast to coast. I'll now turn the call over to Brett to cover the financial results. Brett?