McKINNEY, Texas — Encore Wire Corporation announced results for the second quarter of 2022.
Net sales for the second quarter ended June 30, 2022 were $838.2 million compared to $744.4 million for the second quarter of 2021. Copper unit volume, measured in pounds of copper contained in the wire sold, increased 2.7% in the second quarter of 2022 versus the second quarter of 2021.
Gross profit percentage for the second quarter of 2022 was 38.3% compared to 37.3% in the second quarter of 2021. The average selling price of wire per copper pound sold decreased 0.7% in the second quarter of 2022 versus the second quarter of 2021, while the average cost of copper per pound purchased increased 3.2%.
Net income for the second quarter of 2022 was $210.5 million versus $183.1 million in the second quarter of 2021. Fully diluted earnings per common share were $10.71 in the second quarter of 2022 versus $8.82 in the second quarter of 2021 and $7.96 in the first quarter of 2022.
Net sales for the six months ended June 30, 2022 were $1.561 billion compared to $1.189 billion for the six months ended June 30, 2021. Copper unit volume, measured in pounds of copper contained in the wire sold, increased 5.5% in the six months ended June 30, 2022 versus the six months ended June 30, 2021.
Gross profit percentage for the six months ended June 30, 2022 was 36.2% compared to 30.4% for the six months ended June 30, 2021. The average selling price of wire per copper pound sold increased 15.6% in the six months ended June 30, 2022 versus the six months ended June 30, 2021, while the average cost of copper per pound purchased increased 10.2% for the same period comparison.
Net income for the six months ended June 30, 2022 was $372.1 million versus $224.2 million in the six months ended June 30, 2021. Fully diluted earnings per common share were $18.62 in the six months ended June 30, 2022 versus $10.81 in the six months ended June 30, 2021.
Aluminum wire represented 15.0% and 13.4%, respectively, of our net sales in the quarter and six months ended June 30, 2022. Aluminum wire volumes and spreads have increased for both the quarter and six months ended June 30, 2022 compared to the comparative periods in the prior year.
Commenting on the results, Daniel L. Jones, Chairman, President and Chief Executive Officer of Encore Wire Corporation, said, “The results for the second quarter of 2022 establish another high-water mark both financially and operationally for Encore Wire. Our continued strong earnings in 2022 validate that our single-site campus model is a strategic competitive advantage in the market today, giving us unmatched flexibility to quickly pivot and adapt to ever-changing market dynamics. Our manufacturing scale and flexibility, coupled with our value-added services, continue to drive jobsite efficiency. Stable demand, coupled with global uncertainties, persistent tightness in the availability of certain raw materials, and the general inability of the sector to meet demand for the timely delivery of finished goods, kept spreads strong throughout the first half of 2022. 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 second quarter and year-to-date periods in 2022 over 2021 levels. Volumes shipped were also up over first quarter 2022 levels. This marks the third consecutive quarter of volume growth driven by continued increased demand for data center, healthcare and renewable product solutions. We believe existing market conditions and the current outlook support existing volume levels as well as support gross margin abatement continuing at a gradual pace.
Copper unit volumes increased 2.7% on a comparative quarter basis and 5.5% on a year-to-date basis. Comex copper prices decreased gradually throughout the second quarter while other raw material costs and inputs continued to rise. Copper spreads increased 22.0% on a year-to-date basis but decreased 4.4% on a comparative quarter basis. Aluminum spreads increased for both the quarter and year-to-date periods in 2022 compared to 2021.
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 leader 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.
Our balance sheet remains very strong. We have no long-term debt, and our revolving line of credit remains untapped. We had $469.5 million in cash at the end of the quarter. During the second quarter, we repurchased 607,105 shares of our common stock. On a year-to-date basis we repurchased 1,108,022 shares of our common stock for a total cash outlay of $131.9 million. Since the first quarter of 2020, we have repurchased 2,024,829 shares of our common stock at an average price of $96.71. We also declared a $0.02 cash dividend during the quarter.
The repurposing of our vacated distribution center to expand manufacturing capacity and extend our market reach was substantially completed in the second quarter of 2022.
The incremental investments announced in July 2021 continue in earnest, focused on broadening our position as a low-cost, sustainable manufacturer in the sector and increasing manufacturing capacity to drive growth. Capital spending in 2022 through 2024 will expand vertical integration in our manufacturing processes to reduce costs as well as modernize select wire manufacturing facilities to increase capacity and efficiency and improve our position as a sustainable and environmentally responsible company in our industry. Total capital expenditures were $75 million in the first half of 2022 and $118 million for the full year 2021. We expect total capital expenditures to range from $150 – $170 million in 2022, $150 – $170 million in 2023, and $80 – $100 million in 2024. We expect to continue to fund these investments with existing cash reserves and operating cash flows.
Our low-cost structure and strong balance sheet have allowed us the flexibility to adapt quickly to changing market conditions, and we believe they are continuing to prove valuable now. We thank our employees and associates for their outstanding effort and our shareholders for their continued support.
The health and safety of our employees and their families remain our top priority, and we are following CDC guidelines to maintain safe working conditions. The Company is unable to predict the impact that COVID-19, or any of the ongoing variants, may have on our financial position and operating results in future periods. The duration or re-emergence of the outbreak and its long-term impact on our business remain uncertain.”
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