Press Release
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Trex Company Announces First-Quarter 2014 Results
-
Revenue of
$101 million ; EPS of$0.73 - Expects strong 2Q on delayed start to decking season
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2Q revenue guidance of
$125 million - Recent awards demonstrate the Company’s industry leadership
Net sales for the first quarter of 2014 totaled
Chairman, President and CEO
“We believe
“In 2014, we are continuing the high-profile Engineered Artistry branding campaign we successfully launched last year. Macro-economic indicators, including rising consumer confidence and the strengthening home remodeling market, bode well for our prospects.
“For the second quarter of 2014, we expect net sales to be
In
First-Quarter 2014 Conference Call and Webcast Information
For those who cannot listen to the live broadcast, an audio replay of
the earnings call will be available on the
Forward-Looking Statements
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
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 weather-related
demand fluctuations on inventory levels in the distribution channel and
sales of the Company’s products; 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. Documents filed with the
About
| TREX COMPANY, INC. | ||||||
| Condensed Consolidated Statements of Comprehensive Income | ||||||
| (In thousands, except share and per share data) | ||||||
| (Unaudited) | ||||||
| Three Months Ended March 31, | ||||||
|
2014 |
2013 |
|||||
| Net sales | $ | 100,645 | $ | 107,880 | ||
| Cost of sales | 62,478 | 66,020 | ||||
| Gross profit | 38,167 | 41,860 | ||||
| Selling, general and administrative expenses | 18,222 | 19,842 | ||||
| Income from operations | 19,945 | 22,018 | ||||
| Interest expense, net | 323 | 251 | ||||
| Income before income taxes | 19,622 | 21,767 | ||||
| Provision for income taxes | 7,327 | 198 | ||||
| Net income | $ | 12,295 | $ | 21,569 | ||
| Basic earnings per common share | $ | 0.74 | $ | 1.28 | ||
| Basic weighted average common shares outstanding | 16,564,338 | 16,883,111 | ||||
| Diluted earnings per common share | $ | 0.73 | $ | 1.25 | ||
| Diluted weighted average common shares outstanding | 16,799,719 | 17,280,445 | ||||
| Comprehensive income | $ | 12,295 | $ | 21,569 | ||
| TREX COMPANY, INC. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands, except share data) | ||||||||
| (Unaudited) | ||||||||
|
31-Mar-14 |
31-Dec-13 |
|||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,729 | $ | 3,772 | ||||
| Accounts receivable, net | 116,470 | 37,338 | ||||||
| Inventories | 30,213 | 22,428 | ||||||
| Prepaid expenses and other assets | 2,969 | 3,145 | ||||||
| Deferred income taxes | 9,145 | 9,497 | ||||||
| Total current assets | 162,526 | 76,180 | ||||||
| Property, plant and equipment, net | 100,278 | 100,783 | ||||||
| Goodwill and other intangibles | 10,539 | 10,542 | ||||||
| Other assets | 652 | 652 | ||||||
| Total assets | $ | 273,995 | $ | 188,157 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 10,999 | $ | 14,891 | ||||
| Accrued expenses | 16,478 | 23,295 | ||||||
| Accrued warranty | 9,000 | 9,000 | ||||||
| Line of credit | 80,000 | - | ||||||
| Total current liabilities | 116,477 | 47,186 | ||||||
| Deferred income taxes | 360 | 360 | ||||||
| Non-current accrued warranty | 29,802 | 31,812 | ||||||
| Other long-term liabilities | 2,134 | 2,183 | ||||||
| Total liabilities | 148,773 | 81,541 | ||||||
| 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; 17,339,036 and 17,299,062 shares issued |
||||||||
|
and 16,777,781 and 16,737,807 shares outstanding at March 31, 2014 and December 31, 2013, respectively |
173 | 173 | ||||||
| Additional paid-in capital | 107,978 | 101,667 | ||||||
| Retained earnings | 42,071 | 29,776 | ||||||
| Treasury stock, at cost, 561,255 shares | (25,000 | ) | (25,000 | ) | ||||
| Total stockholders’ equity | 125,222 | 106,616 | ||||||
| Total liabilities and stockholders’ equity | $ | 273,995 | $ | 188,157 | ||||
| TREX COMPANY, INC. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
|
2014 |
2013 |
|||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | $ | 12,295 | $ | 21,569 | ||||
|
Adjustments to reconcile net income to net cash used in operating activities: |
||||||||
| Depreciation and amortization | 3,797 | 4,164 | ||||||
| Other non-cash charges | (5,022 | ) | 591 | |||||
| Changes in operating assets and liabilities | (93,095 | ) | (92,277 | ) | ||||
| Net cash used in operating activities | $ | (82,025 | ) | $ | (65,953 | ) | ||
| INVESTING ACTIVITIES | $ | (3,176 | ) | $ | (1,812 | ) | ||
| FINANCING ACTIVITIES | $ | 85,158 | $ | 67,508 | ||||
| Net decrease in cash and cash equivalents | $ | (43 | ) | $ | (257 | ) | ||
| Cash and cash equivalents at beginning of period | $ | 3,772 | $ | 2,159 | ||||
| Cash and cash equivalents at end of period | $ | 3,729 | $ | 1,902 | ||||
Source:
Trex Company, Inc.
James Cline, 540-542-6300
SVP & CFO
or
LHA
Harriet
Fried, 212-838-3777