Trex Company Provides Update on Current Impact of COVID-19
“Our facilities continue to operate and we are following all CDC and public officials’ guidelines, along with implementing local emergency response plans at each location. Our dedicated employees have risen to the challenge to continue production in a safe and effective manner to meet consumer demand for Trex products.
“The COVID-19 pandemic represents uncharted territory, but we believe that Trex has key strengths that will enable us to weather this crisis. From a financial perspective, we are in a strong cash position, with almost
“As the industry’s low-cost producer, Trex has considerable financial and operational flexibility. At this time, we have no supply issues; however, we maintain inventories of materials sourced from diversified geographies, which allows Trex to better tolerate short term supply chain disruptions. From an end-market perspective, we have approximately 100 exclusive distribution locations and 6,700 channel partner outlets where consumers can purchase our products.
“Our financial strength and business advantages give us confidence in our long term strategy to convert an increased share of the wood market to Trex composite products. Our commitment to stakeholders is to take the appropriate actions to ensure the safety and well-being of our employees and partners, to leverage our strengths and ensure financial flexibility, while at the same time complying with any governmental orders relating to COVID-19. We look forward to discussing our first quarter results and second quarter outlook in early May.”
The statements in this press release regarding the Company's expected future performance and condition constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause the Company's actual operating results to differ materially. Such risks and uncertainties include, but are not limited to: the extent of market acceptance of the Company’s current and newly developed products; the costs associated with the development and launch of new products and the market acceptance of such new products; the sensitivity of the Company’s business to general economic conditions; the impact of seasonal and weather-related demand fluctuations on inventory levels in the distribution channel and sales of the Company’s products; the availability and cost of third-party transportation services for the Company’s products and raw materials; the Company’s ability to obtain raw materials at acceptable prices; the Company’s ability to maintain product quality and product performance at an acceptable cost; the Company’s ability to increase throughput and capacity to adequately match supply with demand; the level of expenses associated with product replacement and consumer relations expenses related to product quality; the highly competitive markets in which the Company operates; cyber-attacks, security breaches or other security vulnerabilities; the impact of upcoming data privacy laws and the EU General Data Protection Regulation and the related actual or potential costs and consequences; and global public health pandemics, including the strain of coronavirus known as COVID-19. Documents filed with the
Exec. Vice President and CFO