View:
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
-----------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 28, 2003
TREX COMPANY, INC.
-------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware 001-14649 54-1910453
(State or Other Jurisdiction of (Commission File Number) (IRS Employer
Incorporation) Identification No.)
160 Exeter Drive
Winchester, Virginia 22603-8605
(Address of Principal Executive Offices) (ZIP Code)
Registrant's telephone number, including area code: (540) 542-6300
Not Applicable
-------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
Item 12. Results of Operations and Financial Condition.
On July 28, 2003, Trex Company, Inc. issued a press release announcing
financial results for the quarter ended June 30, 2003. A copy of such press
release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information contained in this report on Form 8-K shall not be deemed to
be filed for the purposes of Section 18 of the Securities Exchange Act of 1934
or otherwise subject to the liabilities of that Section.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TREX COMPANY, INC.
Date: July 28, 2003 /s/ Robert G. Matheny
-----------------------------------
Robert G. Matheny
President and CEO
EXHIBIT INDEX
-------------
Exhibit Number Exhibit Description
- -------------- -------------------
99.1 Press release dated July 28, 2003
Exhibit 99.1
Trex Company Reports 29% Revenue Growth in Second Quarter
WINCHESTER, Va.--(BUSINESS WIRE)--July 28, 2003--Trex Company,
Inc. (NYSE: TWP), manufacturer of Trex(R) decking and railing, today
announced financial results for the second quarter ended June 30,
2003.
Net sales for the quarter increased to $59.2 million from $45.9
million in the second quarter of 2002. Net income increased to $6.5
million from $5.6 million in the same period last year. On a fully
diluted per share basis, net income for the quarter rose to $0.44 per
share from $0.39 per share in 2002.
President Robert Matheny commented, "Trex was successful in either
meeting or exceeding our financial goals for the second quarter of
2003 despite the adverse weather conditions that negatively affected
building activities all along the East Coast of the U.S. Our SG&A
expenses, which totaled $15.9 million, represented 27% of sales.
Consistent with previous announcements, this included increased
branding expenditures designed to help us expand our leadership
position in non-wood decking.
"To fulfill our goal of telling more people about Trex and the
many benefits of our product, we have augmented our print and
television placements by participating in more than 300 home and
trade shows since January. This effort was highlighted in the
second quarter by our strong presence at the Pacific Coast Builders
Conference, held in San Francisco in June.
"To fulfill our goal of making Trex easier to buy, we have
increased the number of dealers who sell Trex to 3,300 and expanded
the number of qualified TrexPros(TM), our contractor partners, to
2,700; 47% more than at year-end 2002.
"In recent months, we have also increased our activity with home
builders and sold product for use in a number of showcase projects.
Among the most prominent are the Disney Saratoga Springs Resort
Boardwalk, the Tahoe City, California Commercial Pier, and portions of
Yosemite National Park.
"We are pleased with the progress we are making in our many
initiatives and, as a result, are maintaining our guidance for the
year, which calls for revenue to exceed $200 million and earnings to
range between $1.63 and $1.66 per share."
About Trex Company
Trex Company is the nation's largest manufacturer of non-wood
decking, which is marketed under the brand name Trex(R). Trex
Wood-Polymer(R) lumber offers an attractive appearance and the
workability of wood without the ongoing need for protective sealants
or repairs. Trex decking and railing is manufactured in a proprietary
process that combines waste wood fibers and reclaimed polyethylene and
is used primarily for residential and commercial decking. The Company
sells its products through approximately 90 wholesale distribution
locations, which in turn sell Trex decking to approximately 3,300
independent contractor-oriented retail lumberyards across the United
States.
For a Trex decking and railing dealer near you, call
1-800-BUY-TREX (289-8739) or for dealers and product details, visit
www.trex.com.
Trex(R) and Trex Wood-Polymer(R) are trademarks of Trex Company,
Inc., Winchester, Va.
Note: The Company has scheduled a conference call to discuss
second-quarter results for 11:00 a.m. EDT on July 29. A live webcast
of the conference call will be available to all investors at the Trex
Company web site at www.trex.com. The call will also be simulcast at
www.streetevents.com. For those who cannot listen to the live
broadcast, an audio replay of the call will be available on these web
sites for 30 days. A telephone replay of the call will also be
available from 12:00 p.m. EDT on July 29 until 12:00 a.m. EDT on
August 5. To listen to the telephone replay, dial 800-642-1687
(706-645-9291 outside the U.S.) and enter conference ID number
1552667.
The statements in this press release regarding the Company's
expected sales performance and operating results, its projections of
revenues and earnings, its anticipated financial condition and its
business strategy 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,
and the highly competitive markets in which the Company operates. The
Company's report on Form 10-K filed with the Securities and Exchange
Commission on March 19, 2003 discusses some of the important factors
that could cause the Company's actual results to differ materially
from those expressed or implied in these forward-looking statements.
The Company expressly disclaims any obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
TREX COMPANY, INC.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
Quarter Ended Six Months Ended
June 30, June 30,
2002 2003 2002 2003
----------- ----------- ----------- -----------
Net sales $45,924 $59,198 $97,920 $127,876
Cost of sales 21,676 32,300 53,710 71,220
----------- ----------- ----------- -----------
Gross profit 24,248 26,898 44,210 56,656
Selling, general and
administrative
expenses 11,823 15,903 18,959 28,462
----------- ----------- ----------- -----------
Income from operations 12,425 10,995 25,251 28,194
Interest expense, net (3,341) (884) (5,811) (1,797)
----------- ----------- ----------- -----------
Income before taxes 9,084 10,111 19,440 26,397
Income taxes 3,454 3,578 7,390 9,767
----------- ----------- ----------- -----------
Net income $5,630 $6,533 $12,050 $16,630
=========== =========== =========== ===========
Fully diluted earnings
per common share $0.39 $0.44 $0.84 $1.13
=========== =========== =========== ===========
Weighted average fully
diluted shares
outstanding 14,404,296 14,751,928 14,343,799 14,663,715
=========== =========== =========== ===========
TREX COMPANY, INC.
Condensed Consolidated Balance Sheets
(In thousands, except share data)
31-Dec-02 30-Jun-03
--------- -----------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $14,893 $21,629
Trade accounts receivable 840 21,947
Inventories 22,429 15,981
Prepaid expenses and other assets 1,395 1,970
Deferred income taxes 2,269 2,256
--------- -----------
Total current assets 41,826 63,783
--------- -----------
Property, plant and equipment, net 133,570 135,385
Goodwill, net 6,837 6,837
Other assets 1,323 1,698
--------- -----------
Total assets $183,556 $207,703
========= ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $10,056 $11,673
Accrued expenses 6,089 3,735
Income taxes payable 114 1,202
Other current liabilities 638 1,085
Current portion long-term debt 795 873
--------- -----------
Total current liabilities 17,692 18,568
--------- -----------
Deferred income taxes 9,915 11,008
Debt-related derivatives 2,773 3,013
Long-term debt, net of current portion 54,401 53,917
--------- -----------
Total liabilities 84,781 86,506
--------- -----------
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; 14,297,711 and 14,676,322
shares issued and outstanding at December
31, 2002 and June 30, 2003 143 147
Additional capital 49,354 55,006
Retained earnings 53,397 70,027
Deferred compensation (2,400) (2,115)
Accumulated other comprehensive net loss (1,719) (1,868)
--------- -----------
Total stockholders' equity 98,775 121,197
--------- -----------
Total liabilities and stockholders'
equity $183,556 $207,703
========= ===========
TREX COMPANY, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended
June 30,
2002 2003
--------- --------
OPERATING ACTIVITIES
Net income $12,050 $16,630
Adjustments to reconcile net income to net cash
provided by
operating activities:
Depreciation and amortization 4,479 6,075
Other non-cash charges 4,867 1,822
Changes in operating assets and liabilities 13,923 (15,148)
--------- --------
Net cash provided by operating activities $35,319 $9,379
--------- --------
INVESTING ACTIVITIES ($952) ($7,891)
--------- --------
FINANCING ACTIVITIES ($28,638) $5,248
--------- --------
Net increase in cash and cash equivalents $5,729 $6,736
Cash and cash equivalents at beginning of period $- $14,893
--------- --------
Cash and cash equivalents at end of period $5,729 $21,629
========= ========
CONTACT: Trex Company, Inc.
Robert G. Matheny, 540-542-6300
or
Lippert/Heilshorn & Associates
John Nesbett / Harriet Fried
212-838-3777