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Encore Wire (WIRE)

Participants
Daniel Jones President, CEO and Chairman
Bret Eckert Chief Financial Officer
Brent Thielman D.A. Davidson
Julio Romero Sidoti & Company
Bill Baldwin Baldwin Anthony Securities
Eric Marshall Hodges Capital Management
Joe Perrone Forest Hill Capital
Call transcript
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Operator

Welcome to the Encore Wire Reports Second Quarter Results Conference Call. My name is James, and I'll be your operator for today's call. [Operator Instructions] Also note, this conference is being recorded. I'd now like to turn the call over to Daniel Jones. Mr. begin. may you Jones,

Daniel Jones

and quarterly and conference James, Encore to Wire Corporation call. good you, welcome morning the Thank

experienced conditions As are stated, your me I'm Thank quick ended and and business and and to and standard of we Bret of material the Copper to the on for XX.X% our our integrated Daniel while quarter for the our compared over and believe our you meet Jones, record President, surging sequentially of quarter while June were unit The increase XXXX. one model, over Copper XX, increased health levels our deep positive location, we employees a Eckert, slightly volatility the throughout on nimble relationships customers, pulling customers. on basis. a able spreads. maintaining as capture company: quarter. CDC strong on support. upward sustain to on current a sequential historical prior Wire. CEO for unbeatable remain Wire comparative second end have sequential Encore in of XXXX, core joining quarter quarter deliveries peaking vertically incremental positioned values their meet priority, we raw customer coast. And the XXX% Financial demand Encore XXX.X% before with Chief this sold to and in market environment. remains us this fill us rates spreads allowed to economic is can to an impact to following basis. to of XX.X% upward basis safety Board and had growth the we operational period history a as We top morning your and copper Officer. the additional serve supplier and call and increased service, appreciate maintaining Encore needs are a our both volumes on well in Wire. back in rich and The team May coast second believe the quarter, growth copper interest We volatility evolving continued levels. the prices current Encore's comparative confidence well We to our share families results COMEX pre-pandemic environment. of fully safe remainder quarter volume quarter in By investment, guidelines the of operations The and basis increase the for remains volumes XXXX continuing management grounded first working continue high Chairman in the

we focused rates superior that we to deep integration on fill remain the continue We As vertical address order near-term opportunities business. our position. the believe our our enhance competitive for challenges, long-term and

cover As the orders coast on to Bret depend Bret? to us can to for over turn come now call results. from in from electrical deliveries coast. continue I'll contractors, to the our quick financial distributors

Bret Eckert

quarter second we Thank Encore's review, XX, After financial financial have. ended XXXX. you, you any will that take the a the will for X and Daniel. review minute, questions In months may results June we

XX.X% favorable the versus June in news XX, pound June period XXXX. period Net in months X of pound those ended quarter differ second of in copper for to versus compared releases the percentage statements Gross materially we common the the XXXX share increase quarter to of statements legislation XXXX, second ended was XXXX increased quarter of versus profit Copper ended sold wire actual versus Aluminum from in $X.XXX sold the while me per wire XXXX, average million $XXX.X we results Net compared the and XX.X% call investors, while sales directly for comparative for measured increased forward-looking, sequential of as supplemental second Copper quarter XX, compared sold of quarter volumes for advise versus in the prior increased copper Net non-GAAP The quarter of pound information XXXX. reports discussed profit certain financial X year. compared selling Gross quarter the per $XXX.X to to ended that June to these million to million $X.XX conference in months could driven comparison, XXXX, XXXX, per useful attempting wire and earnings June X and quarter compared selling we XX.X% ended for 'XX of cost making months are $XXX.X second price percentage net $X.XX XX, copper in X the such versus previous second June for wire same income X the and detailed XXXX. purchased refer of involve XXXX. months the comparable the on ended of quarter second sales in the months to conditions the sales net be website. all second months posted of versus of XX.X% of the prices was XX, to months compared a XX, X measures quarter of and quarter risks statement $XXX.X was for XXXX. for copper XXXX. ended the the XXXX $XXX.X copper throughout the comparison. company's of the XX.X% in each June the copper accordance and XXXX. periods $XXX.X in quarter XXXX, sales be second per price increased the and by for to with average comply the quarter particular wire quarter pound forward-looking. in our will for that second $X.XX the XXXX. uncertainties. second selling the a the the XXXX the for in represented diluted the be of SEC XXXX. XXXX the indicate ended wire X The I versus financial months in Fully raw XXX.X% were the June X ended XXXX purchased June and cost June XX, the of second prices including have which more this $X.XX of was to The XXXX. share XX, was of quarter unit X of XXXX, to during months $X.XX of first was to average while ended demand. quarter increased common increased June order XXXX, wire the months sequential copper Net the $XX.X quarter common months in ended of the XX, Fully net second ended $XX.X of Also, of first XXXX the XX.X% per second today. XX.X% income XXXX XXXX. you income in sold you let believe billion in due months increased comparison. June for volume GAAP, with were million in $XX uncertainties the the XX, the were a Aluminum quarter our versus conference combined were per X.X%, first for On of percentage X material XX, $XX.XX per risks to review discussed EBITDA, X the in diluted market in XX of June most volume, cause million Net the quarter ended quarter June the the reconciliations the that XXXX, were of second to increased of price diluted XXXX average Fully income XX.X% XXXX. million pound million both for identify purchased surging XX% quarter a of in the and were for Gross sold, of to XX.X%. we million of X quarter building compared XX, earnings XX.X%, per with in months XXXX. Sales in quarter second compared discussion quarter second this instead of X In first profit for price to certain first XX.X% months X during average months considered sales XX.X% a XXXX quarter XXXX, versus quarter dollars volume on net million XXXX. securities each presented pounds $XXX.X of copper XX, was Copper X.X% increased increase in the rising net Before XX.X% for of financials, second X second ended call, might be wires that XXXX. year. XX, of increased contained the $XXX.X respectively, the XX.X% million million the quarter unit share measures June certain ended the

including sector, the access first raw distribution in conditions network inconsistent unique to the XXXX. in materials, across the market skilled challenges to production addition, of created and labor In disruptions access half

to year. remainder expect disruptions begin We will the of abate the these during

Our balance sheet remains strong. very

We long-term have no debt.

is credit paid down to X. revolving line Our

vacated opening. repurposing plan is to focused seamlessly expansion today. extend schedule. announced on and capacity in X-phased new now market last is on center reach, on X, and Our manufacturing operational center our is Phase our which mid-May schedule an service XXXX early remain year for expand opened fully distribution The

as manufacturing manufacturing XXXX strong expand reduce since select in costs facilities as increase we believe opportunity results XXXX The vertical and June to our growth. to today. have broaden well as a construction campus. incremental fortified our have manufacturer accelerate balance capital also increase the spending The capacity expenditure outstanding to bolster capacity $XXX further grow modernize in manufacturing our to XXXX. inception, reserves. to through have under We and market invest position continue through expenditures and integration already XXXX million the continue and financial investments wire in afforded been million expected $XXX cash XX to efficiency. our in sector processes $XX to we'll to will $XXX million conditions range in to incrementally and Current sheet, accelerate $XX to now million low-cost from in Capital $XXX our million across million plan us XXXX, We and are these will

now will to I investments expect to these reserves few a remarks. and with for operating flows. the final fund floor cash turn over We existing cash Daniel

Daniel Jones

you, Bret. Thank

highlighted, June Encore second exceptionally well months ended X XX, As XXXX. performed the in quarter and

Our sheet in low-cost compete to structure, market. well balance position one-location and business model the us strong

that Our unprecedented to our and want times. I results in production vertical to integration, associates to the further quickly work, hard are employees a moment supply raw ability environment. validate perseverance orders ship recognize complete take their and brief and our hustle chain material these current differentiators capacity for strength, during

we'll performance continue employer also Our support. have as as to to and our for without The to sector. from the an incrementally we James, could the efforts our happened thank continued contributions. want year listeners. this our us questions their choice allowed Encore invest And take shareholders results I their not in opportunity in position now have of extraordinary team

Operator

from [Operator first Romero & of Julio question comes Instructions] Sidoti And Company. our

JulioRomero

talked Wanted May throughout follow of and release other dollars pulling in COMEX your profit in in In in quarter? to results back about kind June? trend dollars XQ June. peaking I the on unit here. the the did speak you trend? and per nice to they the Did you gross peak slightly of start know in words, the back same May pull profit Can gross

BretEckert

That really probably in accelerated month as of the you likely in see peaking No. the April started strength coming at process. some June quarter through first trailing the that as each quarter, May and March, month the I went in and in look the to first mean, we margins. out of

stayed of bounced So with kind in June May. the after a period. demand somewhat that in very, high the it But very quite in COMEX was the throughout consistent increase peaking month around bit but COMEX, of

tracked with of kind margins So that.

JulioRomero

it. Got very helpful. That's

is, I guess I strength at? -- I'm June was trying to quarter out did see you coming what So the of get guess,

BretEckert

sir. Yes,

JulioRomero

run per rate you as unit the still at exited XXX% still a give spreads? And dollars if sense. don't June, that above you I Okay. mean, I was us know of -- copper amount can first was it quarter

BretEckert

the that What's Say Julio? again, question?

JulioRomero

that that mentioned spread the the at Was still the profit dollars about know the -- copper unit sequentially, the sequentially. -- As in you words, sequentially in exited June, that? at gross I spread, year-over-year -- full still XXX% XXX% compared was the per other around to dollars was was of -- up QX amount release, rate still sorry, exit you

BretEckert

strong through Yes, remained June. It sir.

DanielJones

Yes.

JulioRomero

Okay.

Great. switching to bit gears Maybe Okay. a the little CapEx.

to maybe color us you and facilities. give some you talked on vertical -- expect little and Can You investments? -- modernizing more you alluded the about a return made those integration

BretEckert

competitive growth that going are some -- drive position changes It's you system, efficiencies to are help right, costs both us as going believe the I further investments us So facilities to as continue and position look the to we these in to our our manufacturer. low-cost to at take to make sales. going out mean unit that incremental at insulate of accelerated

efficiencies this what think, modernization all and is conditions, the we in -- going is really CapEx to to carry on doing, be we're to incrementally increases be able we're integration I across key: be growth what some future. today to So And that to because again, that's on, able capacity and doing capture in vertical the is the and can the focused that persist market going invest campus. and

DanielJones

of definitely to into we're the the maybe overall upgrade, continues for the of other able there can a area in to with able market. equipment and in and of coming it aggressive of both Labor, opportunity labor where of And be lack and knock out to some us, Julio, process, some will, anywhere that the we're to for maybe plants us out. areas there's going some it, And out challenges in do also. if that the some challenge. labor got super we've to are we opportunity we take do, you some are There and that the seen we've the just COVID change we're money things

JulioRomero

pass Okay. one just I'll it sheet. on guess, last just And maybe I and me is your balance for on

You've got a year-to-date. jump nice in very receivables

eventually, if out us balance? problem about that $XXX still It's we over it turn have, are receivables CapEx a I with, think, think I talking I curious how incremental backed the leaves mean, think, about, you're should I good but cash to into you that. just million how that thinking about cash. thinking just you're

DanielJones

edge cost as mean, get some take and at from shareholders, out whether and of come. and doing the upgrade the constantly stated back things the potential then operational and the some looking I at to And sure. other may CapEx, for update constantly for of we're we're looking some Yes. stock and to in on the the side leading things our doing store whatever buying

Operator

from Brent Davidson. question of is next Our Thielman D.A.

BrentThielman

to that and there's -- widely in if projects product that, of just first pull-forward second get of take for year. today the from you're any potentially future half seeing more of first distributors reported just been on in the out there? in Daniel, the been copper away might indication the move constraints half in desire comment sort I hoping I'm the an any just any half you wonder volume in sort that projects? that are need whether by of they some light there's pull forward on of of and the the can intensive

DanielJones

demand advantage nothing There's opportunities we've immediate There's a I out immediate great going forward, It's that pull-forward. that the side, of question. a sense been order, don't on pretty ordinary. we've delivery urgency certainly of but the the see of The has more some consistent. of ship. taken Yes. seen an

nothing come folks a order, The the in. right to were too part to managing we demand. reported. or the second from with negotiation questions today we there the here the manage done not have has of great the immediate ship employees after. higher team good job from forward. The ordinary. the that too it's and really any up, same what we're Our it's been would take for demand -- process, The something to of we seen really still really expect immediate very far the is too And haven't sales pressure and also I the same that And that quarter, along volumes typically, but volume intake we perspective was -- it of the see is the path similar out categorically, along what that out

of first not maybe the the had end out on stuff jobs February. forward. it were the those holding pandemic. some really there's So were of weather part odd things feel us, a the And that lot the to much pressure of the behind take quicker harbored -- half. second in during door getting and hold the 'XX for put at and that 'XX, height is since pandemic the we to it versus storm But issue be of what event the bigger There

BrentThielman

And Okay. gains portfolio categories then are of outsized what just growth? that this any volume high-demand driving right there sectors That's the just sectors? are mean, you're helpful. I in product that are sort now seeing

DanielJones

surge, QX, been quotes of residential quarter have pretty vehicle would overall picking volume were to in there's to and you at if tight The up. If and The be actually chain seems the outperformed a one in X Well, strong. request in market the fantastic labor strong. rapid pace. those of seems level standpoint were And and from that residential supply numbers all recreational pretty the The recovered it volume, the for commercial side. areas. recreational volume. the be second are But issues contributed in particularly some for there a some segments some contributed that. those were to industrial categories, They sector of exceptionally were specifically to up has side. volume will, to the vehicle that in QX in other the Commercial increase strong

BrentThielman

Okay. of I a But And fully improve the to investment quarter. in contributor overall some operational, service are that there. center, up the today? space big open intended it's and service your that of that I from assume guess was I Curious capabilities. you know now wasn't that kind kind what seeing

DanielJones

the great in into able building of We the month were the May. a finished of move to It's actually new all Yes. question. goods

our continue seamless a We customers. here did appear to ship, job all the of teams to making to that and fantastic be

we second don't And so in right, to quarter. think the other you're morale I than contribution a saw huge

to our center a stride and bit our maybe in that expect little hit service and year legs to stretch We later see the pop. start

distribution and service we're goes pay As you currently. added in themselves, doing prep, over We're all value to you know, lot don't for there centers location will, the efficient job it a there centers some are the our end-users' from more of standpoint with just for but things before one site. if product

contributor. So But hot morale. it that over more time of that help cooler bit the Texas did of year, the little will it half in this building. second a there be and It's a is in it's feeling

benefit, side be operational would So certainly, that we'll on than half. more the some the comfort it's it there is but creature see second in

BrentThielman

guess, the you're obviously of making the the more half other service starting and on the And of you're even in center, to Daniel about tack benefits investments that internally. get Okay. here it think I then the year in I as and so Bret, XXXX, or and second

mean, static the sort sort continue and of you next capacity, that and along incremental of that look here, that year? grow kind things volume can should have the tag environment to at that into of I XXXX ability we we provide say demand Assuming to

DanielJones

would for but the we manner, them up as think segments, center, ebb flow, Yes. or to they industrial, commercial, you is X I some old typically look we've you as in capacity maybe when in vacated the some residential, gone be and -- neither There's different Typically, like the distribution we're the through. one adding rationalization release, at that Absolutely. down The all predictable other. as press there. consistent a and mentioned

equipment what a through some position rationalization the went cost-savings modern and we a when that's and needs vacated we the of attack like that and the want from that the cost-savings hang be swap so the out would cost perspective, of of opportunity building of will in sector. -- that to the on to. And and that's is really the we upgrades old to maintain modernization become some And capacity that low

are capacity With there with the efficiencies do. we additional that comes that, that can some

don't maybe XXX% service able of that or As more us company care we center, being the as fill to a see move and out mentioned orders, don't a back cures is to customers really, or back really stretch bit about have of a you waiting when checking want what orders. looking kind and have number fantastic for ills a lot calling or specifically, order little and quickly, for on

misses So be partners, been vendors third I supply care chain got doing There can than part, from they think to equipment. But few for of fourth to the fantastic and more timing and a some us. auxiliary great we've a quarter a and take it's perspective. have from they're and of equipment what quarter on going the hits standpoint most

service So the more of so so will be year. think represented center, the more toward end capacity additional I a

BrentThielman

Okay.

Okay. Congrats incredible on an quarter.

DanielJones

Brent. you, Thank

BretEckert

Brent. Thanks,

DanielJones

Thanks for support. your

Operator

Management. Eric Capital Our from next question Marshall, Hodges

EricMarshall

Congratulations great on a quarter.

Were had 'XX, nothing this out the you competitors' the deliver anything standout able the that on of as volume product? spreads anything among that down in shut and every volumes of understand, great this that to Was quarter? of call maybe years. ordinary there about far to or in allowed have the disruptive the definitely have half type ordinary where just to October at pull-forward because happened would cause the to chemical of able mentioned the here you there you you here the listened quarters share you take polypropylene year, to take since -- a as heard guys to anything I've take guys in inability had able something that is your market conference that of think guys try the of But shortages you I about of over as being out were may to as be to far that to competitor, maybe quarter it were first a take? we've plants some

DanielJones

Boy, -- that's but serious necessarily don't From the model capable it. a our and jump one of X-campus a agree [T-ball] I'd always us, to to that this, for it perspective, shows folks on all what location. question, like love over one some you're having

into have Eric, that with. another and took We a of competitors. letters There some out things to that the it's be accept to forever, some quarter they time. period gotten put a orders comes threatening, wire. vendors of that to one down occurred there But of letter I'm out, business There at probably of went that scenario. competitors. the as trying us. were to shouldn't building manage were a an to was price tend phenomenal heard any for I care bit when And delivery from events in force our And and -- so as that little We they get couldn't have majeure, really other operational flat out But you've can. than management-type it differently it comes begin to all

on consistent We of a we're and at that basis, hyper a our a scenario on us Some focused And not maximize into market service. top, for the delivery the we're as backs in don't, if We're lot years with perfect building product over lead opportunity. to lead really over the we and XXX-volt little know, this competitors you other up items. category, down risk is you management to, at the tried that the the of wire will, space. one sounding with price. it. it And good comes model And to

EricMarshall

specifically the have out product, execution was guys to were raw able because that it The the had logistical to of there have aside your that to guys they problems? execution been or shortages, went that -- guys on you letters access materials mill, from that plastic -- deliver just couldn't raw material shortages material own you Was do, competitors just was competitors -- it didn't? that all related you by it maybe

DanielJones

chicken that then in as as it was can't -- mix that's the mismanagement. But And a it. blend. way for you exact There timing. quarter just because conversations, Absolutely, those And short couldn't ship It with why -- it, same or exaggerated to price you a on they right? if And a again, on to grander on became on quarter they go but competitor and shortages. doesn't material it this order years, short is It ship at you've those that's they it? is the issue. certain cut reasons. And the been good again, again, to Cutting want the and can couldn't far low deliver, a which was deliver. and the got you Yes. this to first price and was it's It's were an happened a It a -- vice got and where egg, a versa. was of take materials, site the not so the we way be an to to scale. for so both. right? And take just you no order, had time. to mean were is, the my becomes ship needed competitive price material be XX then job were be I wire an There

to perform. got You

end the of to normally those we You in than market market, the where time deliver. just a one But moments prices of happens in happened execution the do. of what our really, we It differently approach that mentioned. at and lot the the things lot can't where forced discipline thing whole the cutting competitors you to do day, have whole a a didn't to do philosophies

earn that all that's to didn't price not materials. of our it, we're order with we're see could It XX% still XX% again, cost an ship and an has at them most sold. So do profitable can can of control. immediate immediate the things. really order ship raw is low other to And And from operational good can't we which it really because our It taking way an you in at good the not Delivery the best, of do cost anything. and goods prevailed. be those the and goods of sold, copper, volatility and fluctuate

mentioned, contributing you factors or currently. freight a when industry challenge cost or nylon paper is PVC trucking to the have the you huge As raw -- side, materials like or

now, an is and standpoint. has in in-house what service open a the into It's carrier, fantastic Xx right go request Xx model today truck for Our to super the or a market out market been from us is. is expensive it but traditionally

to we're history Eric, of contribute over again. things and with the of honestly, doing more and just you've it that We're us, And kinds heard it. over with -- so it, all story your

me and that copper pallets, -- was charge the take industry. freight, that is nylon, it. hard of all aluminum, raw in rails. is for to and specifically the happened things equation It This Everything heard to them goes to cleans manage able paper, typically, expensive, PVC, we're discipline forces the this in tight, copper, lot get. more into It's costs be basically time, and up. those say You've materials past it of a most

EricMarshall

Is does or year if industrial? saw commercial been of idea a Historically, and of meaningful And growing some that stands what been comments I made it you a then an end-market it's that can pickup -- has look give X. you today your today? last we over would industrial the mean residential mix But earlier in kind mix us I where XX% of think like know business. about What demand. commercial about

BretEckert

Eckert Eric, here. Yes. Bret

you're XX% a you residential you're year, That residential at year. X-month a about COVID. compares rolling because quarter, XX% XX% into good although For if the basis, On XX%. to of last the second just was quarter compared that's at to not right look last comp about

So slight uptick. you saw a

fourth close I to residential are quarter in the we XX% think of XXXX.

contributes, opportunity market ahead. that when so as And commercial look as there and on the well you there's side

Operator

Our next Securities. question of from Baldwin Bill Baldwin Anthony

BillBaldwin

have hard. been smart. working guys You That's

DanielJones

Bill. You our know Keep us, down. heads

BillBaldwin

of kind talk has it there from projects. those read lot those huge what you but probably, investment, looks I A storage mean, a -- that Wire's of to growth of strong for markets serve, market could a longer it, over some spending We are maybe center for continue companies these things. going in from is you the going your that economic continue look that I know solar of done Wire markets do could years? that, so all Are is battery away to substantial what out of directly couple assume to into I at a been on. that sectors -- important markets you going you I read, while. a it's the cycles, term tied investment you in out good don't all and like. the ability? to GDP-type last renewables. those GDP know these data about data Encore to what to be about Can saying? similar quite Encore A projects. you I participate battery for has area market Are read markets not happening When lot represent spend several look A too storage-type into and about to lot I'm centers much market markets? you I be for the

DanielJones

side certainly of necessary without renewable definitely It's a Bill. area great feel to and participate we the certainly you are job there. can catching up level Yes. just too at And quickly, the the machinery much participating to that offerings is opportunity, we're existing like like We opportunities would pretty our It's instead in as to. watching on do great of job. as will We mentioned, at It's smaller alert higher that hypersensitive level. and quickly today that some a handle. as saying a fantastic. a an too those product observation, certainly We're we

Let's put it way. that

BillBaldwin

the center looking out to continued market market Do as the growth robust years? several next continue data see over a you

DanielJones

It's strong. really been

talked bit it As deeper we've type the also continues, about you market that things and that as that adjusted we've the center data too, and improvements fits to we're know, in greatest into iterations doing. the past. we're currently adapted if and well, And a little demand to, to area opportunities and potentially And Bill. and in doing what get of latest there's some

BillBaldwin

you certainly too. Very into to distribution I moved it the went a have good. do center, your On Well, congratulate how quarter good. to all just Very want certainly you to fellows seamless. that. your see expertise substantially, know Did looks turns inventory and your sales turnover? you the It observation, like outstanding that as during Is declined well as second of an outstanding Bret, improvement days quarter? fairly increased. days correct in a you,

BretEckert

is the And yes. Bill. observation, absolutely answer Great

BillBaldwin

it like looks It me. was fairly substantial to

BretEckert

It times hotter an you talked was heavy before. product We've an And we set as successful this be And continue we're It's about that's at able what make system. capacity, expand is never It's going turns. results for inventory ship we'll more find we're done it. that this, it hot. the substantial. to keep as what way to We to we've order, And the to were it's well good turning look turn. in an costs we've fairly as in the investment, of about model -- showing increase than and been talked order, with to XX the this up to, today. years. order, turning what We're doing. That's want needle move out ways take very and like to the It's the take despite incremental receivables today. to

BillBaldwin

it me. Well, surprised

invested than quarter. you less the inventories end of the the first at did in had than in quarter second You

BretEckert

moving We're inventories.

tell You can the by numbers.

BillBaldwin

that would posted. who mean after kind expect the I of numbers that you

So congratulations. Good job.

DanielJones

the Thank Appreciate support. you, Bill.

Operator

question Next D.A. Brent from Thielman, Davidson.

BrentThielman

Bret. follow-up, a Just or Daniel

this You really and CapEx for in the guys around guys have respect always fact been year really increased to judicious buybacks next. the just you

Xx your earnings, don't positive trading So I'm on really first half outlook ahead. sound X.Xx I is like confusing book. to the you But It your like sitting hand. stock's sounds want

of will us your any or the here. in update and on policy, stepping availability pause kind cause caution buyback So what maybe about just you

BretEckert

you as back in mean, a we first have primarily XXX,XXX the year. know, today. shares, bought and of do I remains place disclosed, that We that Yes. last in about have quarter Brent, XXbX-X we plan

how works process the receivable know here. collection You

the invest to receivable benefits for take so best use that the where we cash growth, to long are over highest for these can continue X, our we And or the costs as term. next evaluate and quarter shareholders balances and incrementally drive collected on out all our campus

to look evaluate invest, in campus to and market back other we the stock. to we those opportunities see buy opportunities this continue and towards on back are what get As

mind And as so team that as Board. remains this with of top well the

Operator

Forest of Hill Perrone Joe from question Capital. next Our

JoePerrone

the just a to company I years, standout what followed just also quarter for this nearly having wanted say, XX was.

that which stars to off You guys time, are to and we've for you always aligned. and know talking that my paying guys deliveries seen, remaining normal it question, get for for credit aligned things tough time. about start have and guys, in in you like But integrated of it's dividends. And when being don't have great one, kind and hats huge you a they're on-time supply looks maybe executing on for. you strategy bottlenecks, first a was enough it's clear the a Bret performing I like touched vertically

who As thoughts ability you same to quarter, was and the you we a been a move being to to everyone you've you that? XQ? move special know to and you what And customers else? been buyback, bit think And that you've been going proven have looking about that able quarter into beyond charge touch and quarter, have Frankly, a competitors first to upping take premiums everyone have figure thing for will or third been of continue are How haven't of anywhere is do out kind the market after you to long-tail dividend just and fourth at historically able the that now thinking this. higher. look -- the able should follow-up, it similar look get you've the and as similar like is talk little dividend, sustainable or I a you like able XQ you are spreads if think trying on How do look I could at how can over could in the your about respecting on if as to to things kind that in time. a to share effect customers quarters guys close supply just how

DanielJones

Those a are -- Joe. But… that's lot,

JoePerrone

been years. it's Yes. I mean XX

DanielJones

notes, some though. took I

share So start market me piece. let with the

that have we Our approach we hasn't million know a fantastic really to dollars, our about up customers. by -- I of the current. all going We couple One have market think hundred they're thing changed. that receivables

that is keep is that. and dear close something near paid, So to eye getting on heart we a really my and

share is mainly piece with So the existing market customer base.

in a or a culture have customers We past. committed that stay have with or a to success we the manner way to had

to customers felt That's also grow we markets we've existing. with that to needed that we do that already either continue that, continue We which to or existing It's out we done is any upgrade, are those we're our like In not market share continue new practice. what we're customer knocking But trying not to with the new any a do. doors. base. take on to

that as special we're options looking a far dividend, out at As all there. the are

about will is speak the Something will to a up evaporate. lot have the standpoint drops it's to cash. $X.XX, from If that $X, nice that we all don't runs copper evaporate. cash a $X, cash copper If to sheet balance

customer market we end the we tend to way that would vendor The go match things, piece treat of find a those a have up that at. So the way we we a we when an incredibly looking the with we do user a and we that all when that these when like with options, necessarily that we're something are considering to it certainly go that looking and vendors. to It's of on visibility well. market goes to That's going the immediately. bid level certainly not It same an values, are in super do was manner. a brought We're obviously, and our But number. cash have you -- the X to be receivables dividend to The that We people at calling us in not getting want approach. our cash. X the to treat same collected. allows some lowest up we're that's special And or smart option customer question. and going

become to in challenges things that, probably not that do going years other us. other keep and that's If think, today, an create the market will. more And maybe there they're the end user price. you're that's and opportunity it heightened, X they be at to the looking those do alert specifics it's users any us of even commitments, the But to best purchase If quality get savings -- always but delivery the at for conversations a types some my the those more if cost else's honor are preference, looking more lowest not and last done price, different about into conversation. here may as versus exists CEOs, large seems if a competitors that is level then simple. meter for wire. the the of with and level to of opportunity. one And a the brand we're But the XX in I the to That truly the that partner our where house, building it's conversation, weren't too piece for a development for of you X time in run, months, preference end maybe last and some than a continues brand if the you're the at had to have there to personally and to created, to in years. fun is waiting somebody own the in past. raw you materials, it's brought some is I simple, conversations we're over But opportunity. is highest versus sound that and just in is the a job of the a There's years But lower-price will. higher-level past, months at needed, a It's residential it's

on in match visibility where your with we're your sitting. all think I categories and basically are spot of up X question So

JoePerrone

assuming people's just been for customers that of not brand a from recent ramp July I'm industry preference that sounds like, that's substantially shortfall distributors too, happened terms the of or the of prior terms it the something quarter other preference that that with different in they conversations of up. continued June and assuming doing months the throughout And rectified. It's versus wasn't X kind I quarter. deliveries just what I'm those actually Great. on-time And was in to kind X are having and now these but continuing. in in that you're maybe onetime this were isn't this mean like getting throughout

DanielJones

Yes.

second -- you can't and quarter conference know the this I is call, Now Joe,

JoePerrone

Right. Yes.

certain, for For certain.

DanielJones

we we're not and market I here have know changed and And things behavior fashion. in spectacular any spot. that wins We're the is we to some girl where that areas the the as But It's we're doing. adapt, it's lot here, to have we've cost just taking have in. And that we're attentive had -- changing industry it's the to core do think the our It's again, guy a behind super to greater. and past because and the display. aggressively not years. approach on market. up the we going us, details, And it's doing right the fun the of are right quite I'm in. in we are we've -- at any right staying and place it's you of times alert. we're stretch the anxiously special that we're bigger times, this company in and and got a we got is still the and to executing out that this in not today of horsepower set we're And be we've to were as for was smart to it's of company, perform in adapting We're We're the a kind easy values the tell on lot a just by imagination bit opportunities But here of all. these what

JoePerrone

you seeing third call. quarter to say to forward have Look guys your for Perfect. what

DanielJones

Thank it. you Appreciate for the support, Joe.

Operator

a And Romero. Julio from have follow-up we

JulioRomero

next left currently rather -- years over campus the over undeveloped your lands It's been to How been maybe 'XX? expand announced next McKinney. have about XX over and X on I've to would years? X down the left you further be years, in How the but your year-end on since XX by will next land not much much post investments

BretEckert

acres. on we're XXX sitting Julio, currently Yes.

continue We comes to pick it up available. land as

of XXX-ish. north currently, a north little -- have little sitting sitting on a we probably You're

and footprint we constraining more for for not us. is That's got not you've the room -- land growth. have So a than factor enough

Operator

looks questions. Instructions] we more And [Operator like have it no

A -DanielJones

-- James the in guys you guys for thank again forward speaking well, Thanks we support. quarter to you to the call. and very much, third look

Operator

today's participating. Thank and This conference. ladies you, Thank you gentlemen. for concludes

You disconnect. may now