UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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| Item 8.01 | Other Events |
On March 13, 2021 an electrical fire occurred in a manufacturing building at our Winchester, Virginia manufacturing facility. No injuries occurred from the event. The Company believes that all repairs will be completed by the end of March 2021. While repairs are underway, the Company expects that production at its other facilities in Virginia and Nevada will continue as normal.
As a result of the fire, the Company believes that revenue for the quarterly period ending March 31, 2021, will still be within the guidance levels previously disclosed early in February 2021 but will likely be at the low end at approximately $235 million. The Company believes that the production volume will be recovered during the quarterly period ending June 30, 2021. Also, on March 22, 2021, the Company issued a press release announcing the same. A copy of the press release is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Trex Company, Inc. herewith furnishes the following exhibits:
| Exhibit Number |
Description of Exhibit | |
| 99.1 | Press release dated March 22, 2021. | |
| 104.1 | Cover page Interactive Data File (embedded within the Inline XBRL document). | |
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: March 22, 2021 | /s/ Dennis C. Schemm | |||||
| Dennis C. Schemm | ||||||
| Senior Vice President and Chief Financial Officer | ||||||
Exhibit 99.1
Trex Company Reports on Electrical Fire at Winchester, Va. Facility and
Provides First Quarter Production and Capacity Expansion Update
No Injuries Thanks to Safety Measures and Rapid Response
Guiding First Quarter Revenue to the Low End of Range at Approximately $235 Million
Ramp-up of New Virginia Capacity Ahead of Schedule
WINCHESTER, Va., March 22, 2021 —Trex Company, Inc. (NYSE:TREX), the world’s #1 brand of composite decking and railing and leader in high-performance, low-maintenance and eco-friendly outdoor living products and a leading national provider of custom-engineered commercial railing systems, reports on the impact of a recent fire and provides a first quarter production and capacity expansion update.
“Thanks to extensive safety training and fast action by our employees and area firefighters, we are pleased to report that no one was injured in the electrical fire that occurred recently at one of the manufacturing buildings in our Winchester, Virginia complex. We are grateful to everyone who contributed to quickly extinguishing the fire and ensuring safety,” said Bryan Fairbanks, President and CEO of Trex.
“We anticipate minimal impact on our overall business as a result of this incident. Based on the projected production loss, we expect our first quarter revenue will be on the lower end of the guidance provided in February at approximately $235 million, with production volume loss expected to be recovered during the second quarter,” stated Mr. Fairbanks.
Damage to the building’s electrical systems is being addressed with repairs expected to run through the end of March. During this time, production will continue as normal at the company’s other manufacturing facilities in both Virginia and Nevada. Additionally, the company’s capacity expansion continues to advance at its Virginia site where Trex recently opened a new state-of-the-art manufacturing facility dedicated to producing Trex decking.
“Our success with the startup of lines in our new building is providing incremental capacity faster than planned, enabling us to make up the lost production. All of the lines in the new building are expected to be fully operational approximately 30 days ahead of our announced end of second quarter target. Given continued robust end market demand, increasing our capacity has been a key part of our near- and long-term growth strategy and I am pleased at how the Trex team has executed on this expansion program,” commented Mr. Fairbanks.
In addition to the new Virginia facility, Trex also recently improved production capabilities and capacity at its manufacturing site in Nevada, where new lines were installed and commenced production in June of last year. Combined, the company will have four independent decking production facilities that will empower Trex – already the world’s largest manufacturer of high-performance, wood-alternative decking – to increase production capacity by approximately 70% compared to 2019 levels.
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About Trex Company
Trex Company is the world’s largest manufacturer of high performance wood-alternative decking and railing, with more than 30 years of product experience. The #1 brand in outdoor living is proud to be named to Fortune magazine’s 2020 list of the world’s 100 Fastest-Growing Companies and to Forbes’ 2021 List of America’s Best Mid-Size Companies. Stocked in more than 6,700 retail locations worldwide, Trex outdoor living products offer a wide range of style options with fewer ongoing maintenance requirements than wood, as well as a truly environmentally responsible choice. Also, Trex is a leading
national provider of custom-engineered railing systems for the commercial and multi-family market, including performing arts venues and sports stadiums. For more information, visit trex.com. You also can follow Trex on Twitter (@Trex_Company), Instagram (@trexcompany) Pinterest (trexcompany), or Houzz (trex-company-inc), “like” Trex on Facebook, or view product and demonstration videos on the brand’s YouTube channel (TheTrexCo).
| Contact: | Dennis Schemm | |
| Senior Vice President and CFO | ||
| 540-542-6300 | ||
| Lynn Morgen/Viktoriia Nakhla | ||
| AdvisIRy Partners | ||
| 212-750-5800 | ||