Press Release
<< Back
Trex Company Announces First-Quarter-2009 Results
Net sales for the first quarter of 2009 totaled
On
President and CEO
“While our intense, company-wide focus on enhancing Trex’s operations
resulted in improved manufacturing yields and lower costs, the positive
gross margin impact of these improvements and the price increases that
went into effect at the beginning of 2009 were offset by lower levels of
capacity utilization. During the quarter, our operating cash flow was
strong. We ended the period with a cash balance of
“During the quarter, we began the launch of several new products and will complete this effort by the end of June. This includes our expanded Trex Artisan Series Railing®, whose modular construction gives consumers the flexibility to mix and match colors and styles to achieve their optimal design. Our new introductions include decorative balusters, a charcoal black railing system and a graspable handrail system that meets the requirements of the Americans with Disabilities Act. We are also in the process of introducing our new, easy-to-install privacy fencing product, Trex Surroundings™, targeted to the do-it-yourself segment of the market.
“Innovative products such as these are helping
“New customers have been converted by the added value
Mr. Kaplan continued, “Turning now to our guidance for the second
quarter – the shift in purchasing patterns is now clearly evident. Based
on the order flow we are seeing, we expect net sales to approximate
First-Quarter-2009 Conference Call and Webcast Information
For those who cannot listen to the live broadcast, the webcast will be
available on Trex’s website for 30 days. A telephone replay of the call
will also be available for seven days, beginning at approximately
About
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 the extent of market acceptance of the Company's products; the
sensitivity of the Company's business to general economic conditions;
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 level of expenses associated with product
replacement and consumer relations expenses related to product quality;
and the highly competitive markets in which the Company operates. The
Company's report on Form 10-K filed with the
| TREX COMPANY, INC. | |||||||
| Condensed Consolidated Statements of Operations | |||||||
| (In thousands, except share and per share data) | |||||||
| (Unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2008 | 2009 | ||||||
| (As Adjusted) | |||||||
| Net sales | $ | 119,529 | $ | 67,650 | |||
| Cost of sales | 87,253 | 50,896 | |||||
| Gross profit | 32,276 | 16,754 | |||||
| Selling, general and administrative expenses | 20,308 | 16,550 | |||||
| Income from operations | 11,968 | 204 | |||||
| Interest expense, net | 4,347 | 3,440 | |||||
| Income (loss) before income taxes | 7,621 | (3,236 | ) | ||||
| Provision (benefit) for income taxes | 86 | (120 | ) | ||||
| Net income (loss) | $ | 7,535 | $ | (3,116 | ) | ||
| Diluted earnings (loss) per common share | $ | 0.50 | $ | (0.21 | ) | ||
| Diluted weighted average common shares outstanding | 14,955,837 | 15,011,376 | |||||
| TREX COMPANY, INC. | |||||||||||
| Condensed Consolidated Balance Sheets | |||||||||||
| (In thousands, except share data) | |||||||||||
| (unaudited) | |||||||||||
| 31-Dec-08 | 31-Mar-09 | ||||||||||
| (As Adjusted) | |||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 23,189 | $ | 19,548 | |||||||
| Accounts receivable | 13,555 | 19,988 | |||||||||
| Inventories | 69,397 | 61,135 | |||||||||
| Prepaid expenses and other assets | 5,518 | 3,991 | |||||||||
| Income taxes receivable | 2,554 | 201 | |||||||||
| Deferred income taxes | 2,538 | 2,538 | |||||||||
| Total current assets | 116,751 | 107,401 | |||||||||
| Property, plant and equipment, net | 176,336 | 172,521 | |||||||||
| Goodwill | 6,837 | 6,837 | |||||||||
| Other assets | 7,557 | 6,917 | |||||||||
| Total assets | $ | 307,481 | $ | 293,676 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued expenses | $ | 37,666 | $ | 27,247 | |||||||
| Accrued warranty | 12,310 | 9,145 | |||||||||
| Current portion of long-term debt | 1,293 | 1,321 | |||||||||
| Total current liabilities | 51,269 | 37,713 | |||||||||
| Deferred income taxes | 2,028 | 2,028 | |||||||||
| Accrued taxes | 2,640 | 2,519 | |||||||||
| Non-current accrued warranty | 9,546 | 10,814 | |||||||||
| Debt-related derivatives | 2,069 | 1,935 | |||||||||
| Long-term debt, net of current portion | 100,201 | 101,498 | |||||||||
| Total liabilities | 167,753 | 156,507 | |||||||||
| Stockholders’ equity: | |||||||||||
| Preferred stock, $0.01 par value, 3,000,000 shares authorized; none issued and outstanding | -- | -- | |||||||||
|
Common stock, $0.01 par value, 40,000,000 shares authorized;
15,310,343 and 15,396,583 |
153 | 154 | |||||||||
| Additional paid-in capital | 92,825 | 93,307 | |||||||||
| Accumulated other comprehensive loss | (1,092 | ) | (1,018 | ) | |||||||
| Retained earnings | 47,842 | 44,726 | |||||||||
| Total stockholders’ equity | 139,728 | 137,169 | |||||||||
| Total liabilities and stockholders’ equity | $ | 307,481 | $ | 293,676 | |||||||
| TREX COMPANY, INC. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2008 | 2009 | |||||||
| (As Adjusted) | ||||||||
| OPERATING ACTIVITIES | ||||||||
| Net income (loss) | $ | 7,535 | $ | (3,116 | ) | |||
| Adjustments to reconcile net income to net cash provided by | ||||||||
| operating activities: | ||||||||
| Depreciation and amortization | 8,239 | 7,734 | ||||||
| Other non-cash charges, net | 670 | 928 | ||||||
| Changes in operating assets and liabilities | (33,757 | ) | (6,529 | ) | ||||
| Net cash used in operating activities | $ | (17,313 | ) | $ | (983 | ) | ||
| INVESTING ACTIVITIES | $ | (3,971 | ) | $ | (2,007 | ) | ||
| FINANCING ACTIVITIES | $ | 21,284 | $ | (651 | ) | |||
| Net increase (decrease) in cash and cash equivalents | $ | - | $ | (3,641 | ) | |||
| Cash and cash equivalents at beginning of period | $ | 66 | $ | 23,189 | ||||
| Cash and cash equivalents at end of period | $ | 66 | $ | 19,548 | ||||
Source:
Trex Company, Inc.
James Cline, 540-542-6300
Chief Financial
Officer
or
Lippert/Heilshorn & Associates
Harriet
Fried, 212-838-3777