0001193125-23-138415 | 10-Q | XBRL Viewer

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Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2023	Apr. 24, 2023
Cover [Abstract]
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Type	10-Q
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001069878
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity Registrant Name	TREX CO INC
Document Period End Date	Mar. 31, 2023
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Trading Symbol	TREX
Entity Shell Company	false
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		108,803,516
Entity File Number	001-14649
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	54-1910453
Entity Address, Address Line One	160 Exeter Drive
Entity Address, City or Town	Winchester
Entity Address, Postal Zip Code	22603-8605
Entity Address, State or Province	VA
City Area Code	540
Local Phone Number	542-6300
Title of 12(b) Security	Common stock
Security Exchange Name	NYSE
Document Quarterly Report	true

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Net sales	$ 238,718	$ 339,228
Cost of sales	144,290	204,316
Gross profit	94,428	134,912
Selling, general and administrative expenses	37,480	39,960
Income from operations	56,948	94,952
Interest expense, net	1,985	14
Income before income taxes	54,963	94,938
Provision for income taxes	13,832	23,727
Net income	$ 41,131	$ 71,211
Basic earnings per common share	$ 0.38	$ 0.62
Basic weighted average common shares outstanding	108,771,958	114,638,424
Diluted earnings per common share	$ 0.38	$ 0.62
Diluted weighted average common shares outstanding	108,916,261	114,853,881
Comprehensive income	$ 41,131	$ 71,211

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 3,916	$ 12,325
Accounts receivable, net	302,071	98,057
Inventories	127,784	141,355
Prepaid expenses and other assets	25,712	35,105
Total current assets	459,483	286,842
Property, plant and equipment, net	617,503	589,892
Operating lease assets	30,654	30,991
Goodwill and other intangible assets, net	18,477	18,582
Other assets	7,004	7,398
Total assets	1,133,121	933,705
Current liabilities
Accounts payable	23,136	19,935
Accrued expenses and other liabilities	50,529	44,064
Accrued warranty	4,600	4,600
Line of credit	369,500	222,000
Total current liabilities	447,765	290,599
Deferred income taxes	68,224	68,224
Operating lease liabilities	23,318	23,974
Non-current accrued warranty	22,077	20,999
Other long-term liabilities	11,560	11,560
Total liabilities	572,944	415,356
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.01 par value, 3,000,000 shares authorized; none issued and outstanding	0	0
Common stock, $0.01 par value, 360,000,000 shares authorized; 140,901,926 and 140,841,833 shares issued and 108,803,516 and 108,743,423 share outstanding, at March 31, 2023 and December 31, 2022, respectively	1,409	1,408
Additional paid-in capital	132,235	131,539
Retained earnings	1,171,805	1,130,674
Treasury stock, at cost, 32,098,410 shares at March 31, 2023 and December 31, 2022	(745,272)	(745,272)
Total stockholders' equity	560,177	518,349
Total liabilities and stockholders' equity	$ 1,133,121	$ 933,705

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	360,000,000	360,000,000
Common stock, shares issued	140,901,926	140,841,833
Common stock, shares outstanding	108,803,516	108,743,423
Treasury stock, shares	32,098,410	32,098,410

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]
Beginning Balance at Dec. 31, 2021	$ 725,034	$ 1,407	$ 127,787	$ 946,048	$ (350,208)
Beginning Balance, Shares at Dec. 31, 2021		115,148,152			25,586,601
Net income	71,211			71,211
Employee stock plans	523		523
Employee stock plans, Shares		9,081
Shares withheld for taxes on awards	(2,912)		(2,912)
Shares withheld for taxes on awards, Shares		(35,856)
Stock-based compensation	2,226	$ 1	2,225
Stock-based compensation, Shares		79,926
Repurchases of common stock	(75,017)				$ (75,017)
Repurchases of common stock, Shares		(833,963)			833,963
Ending Balance at Mar. 31, 2022	721,065	$ 1,408	127,623	1,017,259	$ (425,225)
Ending Balance, Shares at Mar. 31, 2022		114,367,340			26,420,564
Beginning Balance at Dec. 31, 2022	518,349	$ 1,408	131,539	1,130,674	$ (745,272)
Beginning Balance, Shares at Dec. 31, 2022		108,743,423			32,098,410
Net income	41,131			41,131
Employee stock plans	316		316
Employee stock plans, Shares		8,504
Shares withheld for taxes on awards	(1,592)		(1,592)
Shares withheld for taxes on awards, Shares		(28,773)
Stock-based compensation	1,973	$ 1	1,972
Stock-based compensation, Shares		80,362
Ending Balance at Mar. 31, 2023	$ 560,177	$ 1,409	$ 132,235	$ 1,171,805	$ (745,272)
Ending Balance, Shares at Mar. 31, 2023		108,803,516			32,098,410

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
OPERATING ACTIVITIES
Net income	$ 41,131	$ 71,211
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	11,915	10,473
Stock-based compensation	1,972	2,226
Other non-cash adjustments	121	77
Changes in operating assets and liabilities:
Accounts receivable	(204,014)	(49,825)
Inventories	13,571	(14,423)
Prepaid expenses and other assets	291	1,560
Accounts payable	2,975	36,605
Accrued expenses and other liabilities	3,361	(6,149)
Income taxes receivable/payable	13,206	22,124
Net cash (used in) provided by operating activities	(115,471)	73,879
INVESTING ACTIVITIES
Expenditures for property, plant and equipment	(39,192)	(22,288)
Net cash used in investing activities	(39,192)	(22,288)
FINANCING ACTIVITIES
Borrowings under line of credit	200,500
Principal payments under line of credit	(53,000)
Repurchases of common stock	(1,592)	(77,929)
Proceeds from employee stock purchase and option plans	316	523
Financing costs	30	(50)
Net cash provided by (used in) financing activities	146,254	(77,456)
Net decrease in cash and cash equivalents	(8,409)	(25,865)
Cash and cash equivalents, beginning of period	12,325	141,053
Cash and cash equivalents, end of period	3,916	115,188
Supplemental Disclosure:
Cash paid for interest, net of capitalized interest	1,817
Cash paid for income taxes, net	733	1,604
Capital expenditures in accounts payable	$ 229	$ 239

Business and Organization

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and Organization

1.	BUSINESS AND ORGANIZATION

Trex Company, Inc. (Trex, Company), a Delaware corporation, was incorporated on September 4, 1998. As of December 30, 2022, the Company operates in one reportable segment, Trex Residential Products (Trex Residential). Through December 30, 2022, Trex had one wholly-owned subsidiary, Trex Commercial Products, Inc. (Trex Commercial) and operated in two reportable segments, Trex Residential and Trex Commercial.

Trex Residential, the Company’s principal business based on net sales, is the world’s largest manufacturer of high-performance,

low-maintenance

wood-alternative decking and residential railing and outdoor living products and accessories, marketed under the brand name Trex

, with more than 30 years of product experience. A majority of its products are manufactured in a proprietary process that combines reclaimed wood fibers and scrap polyethylene. The principal executive offices are located at 160 Exeter Drive, Winchester, Virginia 22603, and the telephone number at that address is

(540) 542-6300.

Basis of Presentation

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

2.	BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form

10-Q

and Article 10 of Regulation

S-X

and, accordingly, the accompanying unaudited condensed consolidated financial statements do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments, except as otherwise described herein) considered necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements. Certain reclassifications have been made to prior period balances to conform to current year presentation. The unaudited condensed consolidated financial statements include the accounts of the Company for all periods presented. Intercompany accounts and transactions have been eliminated in consolidation.

The unaudited consolidated results of operations for the three months ended March 31, 2023, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023. The Company’s results of operations are affected by a number of factors, including, but not limited to, the cost to manufacture and distribute products, cost of raw materials, inflation, consumer spending and preferences, interest rates, the impact of any supply chain disruptions, economic conditions, and/or any adverse effects from global health pandemics and geopolitical conflicts. Towards the end of June 2022, the Company experienced a reduction in demand from its distribution partners, which the Company believed was primarily spurred by concerns over a potential easing in consumer demand due to rising interest rates, declining consumer sentiment and expectations of a general slowing in the economy. As a result, beginning in the third quarter of 2022 the Company’s channel partners met demand partially through inventory drawdown rather than reordering products and maintaining current inventories. This inventory recalibration was completed by year end.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of December 31, 2022, and December 31, 2021, and for each of the three years in the period ended December 31, 2022, included in the Annual Report of Trex Company, Inc. on Form

10-K,

as filed with the U.S. Securities and Exchange Commission.

Sale of Trex Commercial Products, Inc.

3 Months Ended

Mar. 31, 2023

Trex Commercial Products Inc [Member]

Subsidiary or Equity Method Investee [Line Items]

Sale of Trex Commercial Products, Inc.

3.	SALE OF TREX COMMERCIAL PRODUCTS, INC.

On December 30, 2022, the Company completed the sale of substantially all of the assets of its wholly-owned subsidiary and reportable segment, Trex Commercial. The divestiture reflected the Company’s decision to focus on driving the most profitable growth strategy for the Company and its shareholders through the execution of its outdoor living strategy. With the sale complete, the Company will dedicate its resources to accelerating conversion to composites from wood and further strengthen its leadership position in the outdoor living category. The divestiture did not represent a strategic shift with a major effect on the Company’s operations. The results of operations of Trex Commercial are consolidated in the Company’s results of operations for the three months ended March 31, 2022.

Recently Adopted Accounting Standards

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Recently Adopted Accounting Standards

4.	RECENTLY ADOPTED ACCOUNTING STANDARDS

In December 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)

No. 2022-06

“Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848.” The amendments in this update defer the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. In March 2020, the FASB issued ASU

No. 2020-04

“Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. ASU

No. 2020-04

provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued. The FASB included a sunset provision within Topic 848 based on the expectations of when the LIBOR would cease being published intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2024 and can be adopted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020. The amendments did not have a material effect on the Company’s consolidated financial statements.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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+ Details

Inventories

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Inventories

5.	INVENTORIES

Inventories valued at LIFO

(last-in,

first-out),

consist of the following (in thousands):


	March 31, 2023			December 31, 2022
Finished goods	$	98,573		$	107,114
Raw materials		64,262			69,292

Total FIFO (first-in, first-out) inventories		162,835			176,406
Reserve to adjust inventories to LIFO value		(35,051	)		(35,051	)

Total LIFO inventories	$	127,784		$	141,355

The Company utilizes the LIFO method of accounting related to its Trex Residential wood-alternative decking and residential railing products, which generally provides for the matching of current costs with current revenues. However, under the LIFO method, reductions in annual inventory balances cause a portion of the Company’s cost of sales to be based on historical costs rather than current year costs (LIFO liquidation). Reductions in interim inventory balances expected to be replenished by

year-end

do not result in a LIFO liquidation. Accordingly, interim LIFO calculations are based, in part, on management’s estimates of expected

year-end

inventory levels and costs and may differ from actual results. Since inventory levels and costs are subject to factors beyond management’s control, interim results are subject to the final

year-end

LIFO inventory valuation.

In the three months ended March 31, 2023, the Company had a reduction in inventory that it does not expect will be replenished by year end. However, the Company estimates that the LIFO liquidation will not have a material impact on cost of sales for the year ended December 31, 2023 and, accordingly, it did not impact the cost of sales for the three months ended March 31, 2023.

Prepaid Expenses and Other Assets

3 Months Ended

Mar. 31, 2023

Text Block [Abstract]

Prepaid Expenses and Other Assets

6.	PREPAID EXPENSES AND OTHER ASSETS

Prepaid expenses and other assets consist of the following (in thousands):


	March 31, 2023		December 31, 2022
Prepaid expenses	$	10,738	$	10,787
Income tax receivable		14,635		23,979
Other		339		339

Total prepaid expenses and other assets	$	25,712	$	35,105

Goodwill and Other Intangible Assets, Net

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, Net

7.	GOODWILL AND OTHER INTANGIBLE ASSETS, NET

The carrying amount of goodwill at March 31, 2023, and December 31, 2022, was $14.2 million for Trex Residential. The Company’s intangible assets, purchased in 2018, consist of domain names for Trex Residential. At March 31, 2023, and December 31, 2022, intangible assets were $6.3 million and accumulated amortization was $2.0 million and $1.9 million, respectively. Intangible asset amounts were determined based on the estimated economics of the asset and are amortized over the estimated useful lives on a straight-line basis over 15 years, which approximates the pattern in which the economic benefits are expected to be received. The Company evaluates the recoverability of intangible assets periodically and considers events or circumstances that may warrant revised estimates of useful lives or that may indicate an impairment. Intangible asset amortization expense for the three months ended March 31, 2023, and March 31, 2022, was $0.1 million and $0.1 million, respectively.

Accrued Expenses and Other Liabilities

3 Months Ended

Mar. 31, 2023

Payables and Accruals [Abstract]

Accrued Expenses and Other Liabilities

8.	ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued expenses and other liabilities consist of the following (in thousands):


	March 31, 2023		December 31, 2022
Sales and marketing	$	18,300	$	19,194
Compensation and benefits		10,413		8,646
Operating lease liabilities		7,731		7,488
Manufacturing costs		3,084		3,425
Income taxes		3,863		—
Other		7,138		5,311

Total accrued expenses and other liabilities	$	50,529	$	44,064

Debt

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Debt

DEBT

Revolving Credit Facility

Indebtedness prior to May

18, 2022

. On November 5, 2019, the Company entered into a Fourth Amended and Restated Credit Agreement (Fourth Amended Credit Agreement) as borrower, Trex Commercial, as guarantor; Bank of America, N.A. (BOA) as a Lender, Administrative Agent, Swing Line Lender and L/C Issuer; and certain other lenders including Wells Fargo Bank, N.A. (Wells Fargo), who is also Syndication Agent, and Truist Bank, arranged by BOA Securities, Inc. (BOA Securities), as Sole Lead Arranger and Sole Bookrunner, to amend and restate the Third Amended and Restated Credit Agreement (Third Amended Credit Agreement), dated as of January 12, 2016, as amended. The Fourth Amended Credit Agreement provides the Company with one or more Revolving Loans in a collective maximum principal amount of $250 million from January 1 through June 30 of each year and a maximum principal amount of $200 million from July 1 through December 31 of each year throughout the term, which ends November 5, 2024.

On May 26, 2020, the Company entered into a First Amendment to the Original Credit Agreement (the First Amendment) to provide for an additional $100 million line of credit through May 26, 2022. As a matter of convenience, the parties incorporated the amendments to the Original Credit Agreement made by the First Amendment into a new Fourth Amended and Restated Credit Agreement (New Credit Agreement). In the New Credit Agreement, the revolving commitments under the Original Credit Agreement are referred to as Revolving A Commitments and the new $100 million line of credit is referred to as Revolving B Commitments. In the New Credit Agreement, all of the material terms and conditions related to the original line of credit (Revolving A Commitments) remained unchanged from the Original Credit Agreement.

The Company’s revolving credit facility executed November 5, 2019, was completely replaced by the Company’s revolving credit facility executed May 18, 2022.

Indebtedness on and after May

18, 2022 and prior to December

22, 2022

. On May 18, 2022, the Company, as borrower; Trex Commercial, as guarantor; BOA, as a Lender, Administrative Agent, Swing Line Lender and L/C Issuer; Wells Fargo, as lender and Syndication Agent; Regions Bank, PNC Bank, National Association (PNC), and TD Bank, N.A. (TD)(each, a Lender and collectively, the Lenders), arranged by BofA Securities, Inc. as Sole Lead Arranger and Sole Bookrunner, entered into a Credit Agreement (Credit Agreement) to amend and restate the Fourth Amended and Restated Credit Agreement dated as of November 5, 2019.

Under the Credit Agreement, the Lenders agreed to provide the Company with one or more Revolving Loans in a collective maximum principal amount of $400,000,000 (Loan Limit) throughout the term, which ends May 18, 2027 (Term). Included within the Loan Limit are sublimits for a Letter of Credit facility in an amount not to exceed $60,000,000; and Swing Line Loans in an aggregate principal amount at any time outstanding not to exceed $20,000,000. The Revolving Loans, the Letter of Credit facility and the Swing Line Loans are for the purpose of raising working capital and supporting general business operations.

The Credit Agreement provides the Company, in the aggregate, the ability to borrow an amount up to the Loan Limit during the Term. The Company is not obligated to borrow any amount under the Loan Limit. Within the Loan Limit, the Company may borrow, repay and reborrow at any time or from time to time while the Notes are in effect. Base Rate Loans (as defined in the Credit Agreement) under the Revolving Loans and the Swing Line Loans accrue interest at the Base Rate plus the Applicable Rate (as defined in the Credit Agreement) and Term SOFR Loans for the Revolving Loans accrue interest at the rate per annum equal to the sum of Term SOFR for such interest period plus the Applicable Rate (as defined in the Credit Agreement). The Base Rate for any day is a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 0.50%, (b) the rate of interest in effect for such day as publicly announced from time to time by BOA as its prime rate, and (c) the Term SOFR plus 1.0% subject to certain interest rate floors. Repayment of all then outstanding principal, interest, fees and costs is due at the end of the Term.

The Company and BofA Securities as a sustainability coordinator, are entitled to establish specified key performance indicators (KPIs) with respect to certain environmental, social and governance targets of the Company and its subsidiaries. The sustainability coordinator and the Company may amend the Credit Agreement for the purpose of incorporating the KPIs and other related provisions, unless the Lenders object to such amendment on or prior to the date that is ten business days after the date on which such amendment is posted for review by the Lenders. Based on the performance of the Company and its subsidiaries against the KPIs, certain adjustments (increase, decrease or no adjustment) to otherwise applicable pricing will be made; provided that the amount of such adjustments shall not exceed certain aggregate caps as in the definitive loan documentation.

Under the terms of the Security and Pledge Agreement, the Company and Trex Commercial, subject to certain permitted encumbrances, as collateral security for the above-stated loans and all other present and future indebtedness of the Company owing to the Lenders grants to BOA, as Administrative Agent for the Lenders, a continuing security interest in certain collateral described and defined in the Security and Pledge Agreement but excluding the Excluded Property (as defined in the Security and Pledge Agreement).

Indebtedness On and After December

22, 2022

. As of December 22, 2022, the Company entered into a First Amendment to the Credit Agreement (First Amendment) by and among the Company, as borrower, the guarantors party thereto; BOA, as a Lender, Administrative Agent, Swing Line Lender and L/C Issuer; TD as lender and Syndication Agent; Regions Bank, PNC, and Wells Fargo (each, a Lender and collectively, the Lenders), arranged by BofA Securities as Sole Lead Arranger and Sole Bookrunner, amending that certain Credit Agreement dated as of May 18, 2022, by and among the Company, as borrower, the guarantors party thereto, BOA, as a Lender, Administrative Agent, Swing Line Lender and L/C Issuer and the other lenders identified therein (as so amended, the “Credit Agreement”). The First Amendment removes Trex Commercial as a guarantor to any and all indebtedness under the Credit Agreement.

As a part of the First Amendment, the Credit Agreement was amended and restated to provide for an additional Revolving B Loan (as hereinafter defined).

Under the First Amendment, the Lenders agreed to provide the Company with a Revolving B Loan consisting of one or more revolving loans in a collective maximum principal amount of $150,000,000 (Revolving B Loan Limit) throughout the term, which ends December 22, 2024 (Revolving B Loan Term). Previously, under the Credit Agreement, there was no Revolving B Loan. The First Amendment also provided that TD would serve as Syndication Agent.

As of December 22, 2022, the Credit Agreement was amended and restated to refer to this loan as the Revolving A Loan. The amended and restated Credit Agreement was made an Exhibit A to the First Amendment. All of the terms of the Credit Agreement apply to the Revolving B Loan. The Credit Agreement continues to include sublimits under the Revolving A Loan for a Letter of Credit facility in an amount not to exceed $60,000,000; and Swing Line Loans in an aggregate principal amount at any time outstanding not to exceed $20,000,000. The Revolving Loans, the Letter of Credit facility and the Swing Line Loans under Revolving A Loan are for the purpose of raising working capital and supporting general business operations.

The Notes provide the Company, in the aggregate, the ability to borrow an amount up to the Revolving A Loan Limit during the Revolving A Loan Term and Revolving B Loan Limit during the Revolving B Loan Term. The Company is not obligated to borrow any amount under the revolving loans. Within the respective loan limit, the Company may borrow, repay and reborrow at any time or from time to time while the Notes are in effect. With respect to Revolving B Loans, for any day, the rate per annum is a tiered pricing based upon the Consolidated Debt to Consolidated EBITDA Ratio. The applicable rate for Revolving B Loans that are Base Rate Loans range between 1.20% and 2.15% and the applicable rate for Revolving B Loans that are Term SOFR/Term SOFR Daily Floating Rate range between 0.20% and 1.15%.

The Company had $369.5 million in borrowings outstanding under its revolving credit facility and available borrowing capacity of $180.5 million at March 31, 2023. The weighted average interest rate on the revolving credit facility was 5.64% as of March 31, 2023.

Compliance with Debt Covenants and Restrictions

Pursuant to the terms of the Credit Agreement, the Company is subject to certain loan compliance covenants. The Company was in compliance with all covenants as of March 31, 2023. Failure to comply with the financial covenants could be considered a default of repayment obligations and, among other remedies, could accelerate payment of any amounts outstanding.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

10.

LEASES

The Company leases office space, storage warehouses, training and manufacturing facilities, and certain plant equipment under various operating leases. The Company’s operating leases have remaining lease terms of 1 year to 7 years. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

For the three months ended March 31, 2023, and March 31, 2022, total operating lease expense was $2.1 million and $2.1 million, respectively. The weighted average remaining lease term at March 31, 2023 and December 31, 2022 was 5.0 years and 5.2 years, respectively. The weighted average discount rate at March 31, 2023 and December 31, 2022 was 2.25% and 2.10%, respectively.

The following table includes supplemental cash flow information for the three months ended March 31, 2023, and March 31, 2022, and supplemental balance sheet information at March 31, 2023 and December 31, 2022 related to operating leases (in thousands):


	Three Months Ended March 31,
Supplemental cash flow information	2023		2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,120	$	2,174
Operating ROU assets obtained in exchange for lease liabilities	$	1,541	$	6,053



Supplemental balance sheet information	March 31, 2023		December 31, 2022
Operating lease ROU assets	$	30,654	$	30,991
Operating lease liabilities:
Accrued expenses and other current liabilities	$	7,731	$	7,488
Operating lease liabilities		23,318		23,974

Total operating lease liabilities	$	31,049	$	31,462

The following table summarizes maturities of operating lease liabilities at March 31, 2023 (in thousands):


Maturities of operating lease liabilities
2023	$	5,960
2024		7,290
2025		5,456
2026		4,755
2027		4,400
Thereafter		4,844

Total lease payments		32,705
Less imputed interest		(1,656	)

Total operating lease liabilities	$	31,049

Financial Instruments

3 Months Ended

Mar. 31, 2023

Investments, All Other Investments [Abstract]

Financial Instruments

11.	FINANCIAL INSTRUMENTS

The Company considers the recorded value of its financial assets and liabilities, consisting primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, other current liabilities, and debt to approximate the fair value of the respective assets and liabilities on the Condensed Consolidated Balance Sheets at March 31, 2023 and December 31, 2022.

Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Stockholders' Equity

12.	STOCKHOLDERS’ EQUITY

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share data):


	Three Months Ended March 31,
	2023		2022
Numerator:
Net income available to common shareholders	$	41,131	$	71,211

Denominator:
Basic weighted average shares outstanding		108,771,958		114,638,424
Effect of dilutive securities:
Stock appreciation rights and options		70,004		124,327
Restricted stock		74,299		91,130

Diluted weighted average shares outstanding		108,916,261		114,853,881

Basic earnings per share	$	0.38	$	0.62

Diluted earnings per share	$	0.38	$	0.62

Diluted earnings per share is computed using the weighted average number of shares determined for the basic earnings per share computation plus the dilutive effect of common stock equivalents using the treasury stock method. The computation of diluted earnings per share excludes the following potentially dilutive securities because the effect would be anti-dilutive:


	Three Months Ended March 31,
	2023		2022
Stock appreciation rights		108,749		31,006
Restricted stock		107,571		52,278

Stock Repurchase Program

On February 16, 2018, the Trex Board of Directors adopted a stock repurchase program of up to 11.6 million shares of its outstanding common stock (Stock Repurchase Program). During the three months ended March 31, 2023, Trex did

t repurchase shares of its outstanding common stock under the Stock Repurchase Program. On May 4, 2023, the Trex Board of Directors adopted a new stock repurchase program of up to 10.8 million shares of its outstanding common stock, and terminated the existing Stock Repurchase Program. This repurchase program has no set expiration date.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Revenue From Contracts With Customers

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue From Contracts With Customers

13.	REVENUE FROM CONTRACTS WITH CUSTOMERS

Trex Residential Products

Trex Residential principally generates revenue from the manufacture and sale of its high-performance,

low-maintenance,

eco-friendly

wood-alternative composite decking and residential railing products and accessories. Substantially all of its revenues are from contracts with customers, which are purchase orders of short-term duration of less than one year. Its customers, in turn, sell primarily to the residential market, which includes replacement, remodeling and new construction related to outdoor living products. Trex Residential satisfies its performance obligations at a point in time. The shipment of each product is a separate performance obligation as the customer is able to derive benefit from each product shipped and no performance obligation remains after shipment. Upon shipment of the product, the customer obtains control over the distinct product and Trex Residential satisfies its performance obligation. Any performance obligation that remains unsatisfied at the end of a reporting period is part of a contract that has an original expected duration of one year or less. Any variable consideration related to the unsatisfied performance obligation is allocated wholly to the unsatisfied performance obligation, is recognized when the product ships and the performance obligation is satisfied and is included in “Accrued expenses and other liabilities, Sales and marketing” in Note 8 to the Condensed Consolidated Financial Statements.

Trex Commercial Products

On December 30, 2022, the Company completed the sale of its wholly-owned subsidiary and reportable segment, Trex Commercial. Prior to December 30, 2022, Trex Commercial generated revenue from the manufacture and sale of its modular and architectural railing and staging systems. All of its revenues were from fixed-price contracts with customers. Trex Commercial contracts had a single performance obligation as the promise to transfer the individual goods or services were not separately identifiable from other promises in the contract and was, therefore, not distinct.

For the three months ended March 31, 2023, and March 31, 2022, net sales were disaggregated in the following tables by (1) market, (2) timing of revenue recognition, and (3) type of contract. The tables also include a reconciliation of the respective disaggregated net sales with the Company’s reportable segments (in thousands).


Three Months Ended March 31, 2023
	Trex Residential and Consolidated
Timing of Revenue and Type of Contract
Products transferred at a point in time and variable consideration contracts	$	238,718

	$	238,718


Three Months Ended March 31, 2022	Reportable Segment
	Trex Residential		Trex Commercial		Consolidated
Timing of Revenue Recognition and Type of Contract
Products transferred at a point in time and variable consideration contracts	$	327,194	$	—	$	327,194
Products transferred over time and fixed price contracts		—		12,034		12,034

	$	327,194	$	12,034	$	339,228

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

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+ Details

Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

14.	STOCK-BASED COMPENSATION

At the annual meeting of stockholders of the Company held on May 4, 2023, the Company’s stockholders approved the Trex Company, Inc. 2023 Stock Incentive Plan (Plan). The Company’s board of directors unanimously approved the Plan on April 10, 2023, subject to stockholder approval. The Plan amends and restates in its entirety the Trex Company, Inc. 2014 Stock Incentive Plan (2014 Plan), which was last approved by the Company’s stockholders at the annual meeting held on April 30, 2014. The Plan, which will be administered by the compensation committee of the board of directors, provides for the grant of stock options, restricted stock, restricted stock units, stock appreciation rights and unrestricted stock, which are referred to collectively as “awards.” Awards may be granted under the Plan to officers, directors (including

non-employee

directors) and other employees of the Company or any subsidiary thereof, to any adviser, consultant or other provider of services to the Company (and any employee thereof), and to any other individuals who are approved by the board of directors as eligible to participate in the Plan. Only employees of the Company or any subsidiary thereof are eligible to receive incentive stock options. Subject to certain adjustments as provided in the Plan, the total number of shares of common stock available for future grants under the Plan is 4,000,000 shares.

The following table summarizes the Company’s stock-based compensation grants for the three months ended March 31, 2023:


	Stock Awards Granted		Weighted-Average Grant Price Per Share
Time-based restricted stock units		76,698	$	56.75
Performance-based restricted stock units (a)		96,013	$	56.79
Stock appreciation rights		51,916	$	56.80

(a)

Includes 11,059 of target performance-based restricted stock unit awards granted during the three months ended March 31, 2023, and adjustments of 1,413, and 9,646 to grants due to the actual performance level achieved for restricted stock and restricted stock units awarded in 2021, and 2020, respectively.

The fair value of each SAR is estimated on the date of grant using a Black-Scholes option-pricing formula. For SARs issued in the three months ended March 31, 2023, and March 31, 2022, the data and assumptions shown in the following table were used:


	Three Months Ended March 31, 2023			Three Months Ended March 31, 2022
Weighted-average fair value of grants	$	27.19		$	33.90
Dividend yield		0	%		0	%
Average risk-free interest rate		4.0	%		1.9	%
Expected term (years)		5			5
Expected volatility		49.5	%		44.9	%

The Company recognizes stock-based compensation expense ratably over the period from the grant date to the earlier of: (1) the vesting date of the award, or (2) the date the grantee is eligible to retire without forfeiting the award. For performance-based restricted stock and performance-based restricted stock units, expense is recognized ratably over the performance and vesting period of each tranche based on management’s judgment of the ultimate award that is likely to be paid out based on the achievement of the predetermined performance measures. For the employee stock purchase plan, compensation expense is recognized related to the discount on purchases. Stock-based compensation expense is included in “Selling, general and administrative expenses” in the Condensed Consolidated Statements of Comprehensive Income. The following table summarizes the Company’s stock-based compensation expense (in thousands):


	Three Months Ended March 31,
	2023		2022
Stock appreciation rights	$	215	$	154
Time-based restricted stock and restricted stock units		935		847
Performance-based restricted stock and restricted stock units		724		1,158
Employee stock purchase plan		98		67

Total stock-based compensation	$	1,972	$	2,226

Total unrecognized compensation cost related to unvested awards as of March 31, 2023, was $18.6 million. The cost of these unvested awards is being recognized over the requisite vesting period of each award.

Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

15.	INCOME TAXES

The Company’s effective tax rate for the three months ended March 31, 2023, was 25.2% and was comparable to the effective tax rate for the three months ended March 31, 2022, of 25.0%, which resulted in income tax expense of $13.8 million and $23.7 million, respectively.

During the three months ended March 31, 2023 and March 31, 2022, the Company realized $0.2 million and $0.1 million, respectively, of excess tax benefits from stock-based awards and recorded a corresponding benefit to income tax expense.

The Company analyzes its deferred tax assets each reporting period, considering all available positive and negative evidence in determining the expected realization of those deferred tax assets. As of March 31, 2023, the Company maintains a valuation allowance of $3.0 million against deferred tax assets primarily related to state tax credits it estimates will expire before they are realized.

The Company operates in multiple tax jurisdictions, and, in the normal course of business, its tax returns are subject to examination by various taxing authorities. Such examinations may result in future assessments by these taxing authorities, and the Company accrues a liability when it believes that it is more likely than not that benefits of tax positions will not be realized. The Company believes that adequate provisions have been made for all tax returns subject to examination. As of March 31, 2023, for certain tax jurisdictions tax years 2019 through 2022 remain subject to examination. The Company believes that adequate provisions have been made for all tax returns subject to examination. Sales made to foreign distributors are not taxable in any foreign jurisdiction as the Company does not have a taxable presence in any foreign jurisdiction.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

16.	SEGMENT INFORMATION

Through December 30, 2022, the Company operated in two reportable segments. On December 30, 2022, the Company completed the sale of its wholly-owned subsidiary and reportable segment, Trex Commercial. Subsequent to the sale of Trex Commercial, the Company operates in one reportable segment, Trex Residential:

•

Trex Residential manufactures wood-alternative decking and residential railing and related products marketed under the brand name Trex

. Trex Residential products are sold to distributors and home centers for final resale primarily to the residential market, which includes replacement, remodeling and new construction related to outdoor living products.

•

Trex Commercial designed, engineered, and marketed modular and architectural railing and staging systems for the commercial and multi-family market, including sports stadiums and performing arts venues. Trex Commercial products were marketed to architects, specifiers, contractors, and others doing business within the commercial and multi-family market.

The Company’s reportable segments are determined in accordance with its internal management structure, which, through December 30, 2022, was based on residential and commercial sales activities and, subsequent to December 30, 2022, is based on its residential sales activities. The Company evaluates performance of each segment primarily based on net sales and earnings before interest, income taxes, depreciation and amortization (EBITDA). The Company uses net sales to assess performance and allocate resources as this measure represents the amount of business the segment engaged in during a given period of time, is an indicator of market growth and acceptance of segment products and represents the segment’s customers’ spending habits along with the amount of product the segment sells relative to its competitors. The Company uses EBITDA to assess performance and allocate resources because it believes that EBITDA facilitates performance comparison between the segments by eliminating interest, income taxes, and depreciation and amortization charges to income. The below segment data for the three months ended March 31,

2023

and March 31, 2022 includes data for its reportable segments (in thousands):

Segment Data:


	Three Months Ended March 31, 2023		Three Months Ended March 31, 2022
	Trex Residential and Consolidated		Trex Residential		Trex Commercial			Consolidated
Net sales	$	238,718	$	327,194	$	12,034		$	339,228
Net Income (loss)	$	41,131	$	72,215	$	(1,004	)	$	71,211
EBITDA	$	68,862	$	106,483	$	(1,058	)	$	105,425
Depreciation and amortization	$	11,914	$	10,191	$	282		$	10,473
Income tax expense (benefit)	$	13,832	$	24,063	$	(336	)	$	23,727
Capital expenditures	$	39,192	$	22,283	$	5		$	22 288
Total assets	$	1,133,121	$	929,737	$	42,659		$	972,396

Reconciliation of Net Income to EBITDA:


	Three Months Ended March 31, 2023		Three Months Ended March 31, 2022
	Trex Residential and Consolidated		Trex Residential		Trex Commercial			Consolidated
Net Income (loss)	$	41,131	$	72,215	$	(1,004	)	$	71,211
Interest expense, net		1,985		14		—			14
Income tax expense (benefit)		13,832		24,063		(336	)		23,727
Depreciation and amortization		11,914		10,191		282			10,473

EBITDA	$	68,862	$	106,483	$	(1,058	)	$	105,425

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/topic&trid=2134510

+ Details

Seasonality

3 Months Ended

Mar. 31, 2023

Text Block [Abstract]

Seasonality

17.	SEASONALITY

The operating results for Trex Residential have historically varied from quarter to quarter. Seasonal, erratic or prolonged adverse weather conditions in certain geographic regions reduce the level of home improvement and construction activity and can shift demand for its products to a later period. As part of its normal business practice and consistent with industry practice, Trex Residential has historically offered incentive programs to its distributors and dealers to build inventory levels before the start of the prime deck-building season in order to ensure adequate availability of its product to meet anticipated seasonal consumer demand. The seasonal effects are often offset by the positive effect of the incentive programs.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

18.	COMMITMENTS AND CONTINGENCIES

Product Warranty

The Company warrants that for the applicable warranty period its Trex Residential products, when properly installed, used and maintained, will be free from material defects in workmanship and materials and its decking, cladding, fascia and railing products will not split, splinter, rot or suffer structural damage from termites or fungal decay.

Products sold on or after January 1, 2023: The warranty period for residential use is 50 years for Transcend

decking, 35 years for Select

decking and Universal Fascia, and 25 years for Enhance

decking and Transcend, Select, Enhance and Signature

railing. The warranty period for commercial use is 10 years, excluding Signature railing and Transcend cladding, which each have a warranty period of 25 years. The Company further warrants that Trex Transcend, Trex Enhance and Trex Select decking and cladding and Universal Fascia products will not fade in color from light and weathering exposure more than a certain amount and will be resistant to permanent staining from food and beverage substances or mold and mildew, provided the stain is cleaned within seven days of appearance, for the warranty period referred to above. If there is a breach of such warranties, the Company has an obligation either to replace the defective product or refund the purchase price.

Products sold prior to January 1, 2023: The warranty period is 25 years for residential use and 10 years for commercial use. With respect to Trex Signature railing, the warranty period is 25 years for both residential and commercial use. The Company further warrants that Trex Transcend, Trex Enhance, Trex Select and Universal Fascia products will not fade in color more than a certain amount and will be resistant to permanent staining from food substances or mold, provided the stain is cleaned within seven days of appearance, for the warranty period referred to above. If there is a breach of such warranties, the company has an obligation either to replace the defective product or refund the purchase price.

Trex Residential continues to receive and settle claims for decking products manufactured at its Nevada facility prior to 2007 that exhibit surface flaking and maintains a warranty reserve to provide for the settlement of these claims. Estimating the warranty reserve for surface flaking claims requires management to estimate (1) the number of claims to be settled with payment and (2) the average cost to settle each claim.

To estimate the number of claims to be settled with payment, the Company utilizes actuarial techniques to determine a reasonable possible range of claims to be received and the percentage of those claims that will ultimately require payment (collectively, elements). Estimates for these elements are quantified using a range of assumptions derived from claim count history and the identification of factors influencing the claim counts to determine its best estimate of future claims for which to record a related liability. The cost per claim varies due to a number of factors, including the size of affected decks, the availability and type of replacement material used, the cost of production of replacement material and the method of claim settlement.

The Company monitors surface flaking claims activity each quarter for indications that its estimates require revision. Typically, a majority of surface flaking claims received in a year are received during the summer outdoor season, which spans the second and third quarters. It has been the Company’s practice to utilize the actuarial techniques discussed above during the third quarter, after a significant portion of all claims has been received for the fiscal year and variances to annual claims expectations are more meaningful.

The number of incoming claims received in the three months ended March 31, 2023 was lower than the number of claims received in the three months ended March 31, 2022, and lower than the Company’s expectations for 2023. Average cost per claim experienced in the three months ended March 31, 2023 was significantly lower than that experienced in the three months ended March 31, 2022, which was elevated due to the closure of three large claims, and lower than the Company’s expectations for 2023. The Company believes the reserve at March 31, 2023 is sufficient to cover future surface flaking obligations.

The Company’s analysis is based on currently known facts and a number of assumptions, as discussed above, and current expectations. Projecting future events such as the number of claims to be received, the number of claims that will require payment and the average cost of claims could cause the actual warranty liabilities to be higher or lower than those projected, which could materially affect the Company’s financial condition, results of operations or cash flows. The Company estimates that the annual number of claims received will continue to decline over time and that the average cost per claim will increase slightly, primarily due to inflation. If the level of claims received or average cost per claim differs materially from expectations, it could result in additional increases or decreases to the warranty reserve and a decrease or increase in earnings and cash flows in future periods. The Company estimates that a 10% change in the expected number of remaining claims to be settled with payment or the expected cost to settle claims may result in approximately a $1.6 million change in the surface flaking warranty reserve.

The Company also maintains a warranty reserve for the settlement of other residential product warranty claims and records the provision at the time of product sale.

The following is a reconciliation of the Company’s residential product warranty reserve (in thousands):


	Three Months Ended March 31, 2023
	Surface Flaking			Other Residential			Total
Beginning balance, January 1	$	15,905		$	9,694		$	25,599
Provisions and changes in estimates		—			1,945			1,945
Settlements made during the period		(316	)		(551	)		(867	)

Ending balance, March 31	$	15,589		$	11,088		$	26,677


	Three Months Ended March 31, 2022
	Surface Flaking			Other Residential			Total
Beginning balance, January 1	$	18,542		$	10,053		$	28,595
Provisions and changes in estimates		—			1,090			1,090
Settlements made during the period		(745	)		(528	)		(1,273	)

Ending balance, March 31	$	17,797		$	10,615		$	28,412

Legal Matters

The Company has lawsuits, as well as other claims, pending against it which are ordinary routine litigation and claims incidental to the business. Management has evaluated the merits of these lawsuits and claims and believes that their ultimate resolution will not have a material effect on the Company’s consolidated financial condition, results of operations, liquidity or competitive position.

Arkansas Facility

In October 2021, the Company announced plans to add a third U.S.-based Trex Residential manufacturing facility located in Little Rock, Arkansas, that will sit on approximately 300 acres of land. The development approach for the new campus will be modular and calibrated to demand trends for Trex Residential outdoor living products. Construction began on the new facility in the second quarter of 2022, and in July 2022, the Company entered into a design-build agreement. As previously announced, the Company anticipates spending approximately $400 million on the facility and the budget for the design-build agreement is contained within this amount. Construction for the new facility will be funded primarily through the Company’s ongoing cash generation or its line of credit.

Inventories (Tables)

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Summary of Inventories

Inventories valued at LIFO

(last-in,

first-out),

consist of the following (in thousands):


	March 31, 2023			December 31, 2022
Finished goods	$	98,573		$	107,114
Raw materials		64,262			69,292

Total FIFO (first-in, first-out) inventories		162,835			176,406
Reserve to adjust inventories to LIFO value		(35,051	)		(35,051	)

Total LIFO inventories	$	127,784		$	141,355

Prepaid Expenses and Other Assets (Tables)

3 Months Ended

Mar. 31, 2023

Text Block [Abstract]

Summary of Prepaid Expenses and Other Assets

Prepaid expenses and other assets consist of the following (in thousands):


	March 31, 2023		December 31, 2022
Prepaid expenses	$	10,738	$	10,787
Income tax receivable		14,635		23,979
Other		339		339

Total prepaid expenses and other assets	$	25,712	$	35,105

Accrued Expenses and Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Payables and Accruals [Abstract]

Summary of Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consist of the following (in thousands):


	March 31, 2023		December 31, 2022
Sales and marketing	$	18,300	$	19,194
Compensation and benefits		10,413		8,646
Operating lease liabilities		7,731		7,488
Manufacturing costs		3,084		3,425
Income taxes		3,863		—
Other		7,138		5,311

Total accrued expenses and other liabilities	$	50,529	$	44,064

Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Supplemental Cash Flow information and Supplemental balance sheet information related to operating leases


	Three Months Ended March 31,
Supplemental cash flow information	2023		2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,120	$	2,174
Operating ROU assets obtained in exchange for lease liabilities	$	1,541	$	6,053



Supplemental balance sheet information	March 31, 2023		December 31, 2022
Operating lease ROU assets	$	30,654	$	30,991
Operating lease liabilities:
Accrued expenses and other current liabilities	$	7,731	$	7,488
Operating lease liabilities		23,318		23,974

Total operating lease liabilities	$	31,049	$	31,462

Maturities of operating lease liabilities

The following table summarizes maturities of operating lease liabilities at March 31, 2023 (in thousands):


Maturities of operating lease liabilities
2023	$	5,960
2024		7,290
2025		5,456
2026		4,755
2027		4,400
Thereafter		4,844

Total lease payments		32,705
Less imputed interest		(1,656	)

Total operating lease liabilities	$	31,049

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share data):


	Three Months Ended March 31,
	2023		2022
Numerator:
Net income available to common shareholders	$	41,131	$	71,211

Denominator:
Basic weighted average shares outstanding		108,771,958		114,638,424
Effect of dilutive securities:
Stock appreciation rights and options		70,004		124,327
Restricted stock		74,299		91,130

Diluted weighted average shares outstanding		108,916,261		114,853,881

Basic earnings per share	$	0.38	$	0.62

Diluted earnings per share	$	0.38	$	0.62

Antidilutive Securities Excluded from Computation of Earnings Per Share

The computation of diluted earnings per share excludes the following potentially dilutive securities because the effect would be anti-dilutive:


	Three Months Ended March 31,
	2023		2022
Stock appreciation rights		108,749		31,006
Restricted stock		107,571		52,278

Revenue From Contracts With Customers (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Summary of Disaggregated Net Sales

The tables also include a reconciliation of the respective disaggregated net sales with the Company’s reportable segments (in thousands).


Three Months Ended March 31, 2023
	Trex Residential and Consolidated
Timing of Revenue and Type of Contract
Products transferred at a point in time and variable consideration contracts	$	238,718

	$	238,718


Three Months Ended March 31, 2022	Reportable Segment
	Trex Residential		Trex Commercial		Consolidated
Timing of Revenue Recognition and Type of Contract
Products transferred at a point in time and variable consideration contracts	$	327,194	$	—	$	327,194
Products transferred over time and fixed price contracts		—		12,034		12,034

	$	327,194	$	12,034	$	339,228

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Summary of Stock-Based Compensation Expense

The following table summarizes the Company’s stock-based compensation expense (in thousands):


	Three Months Ended March 31,
	2023		2022
Stock appreciation rights	$	215	$	154
Time-based restricted stock and restricted stock units		935		847
Performance-based restricted stock and restricted stock units		724		1,158
Employee stock purchase plan		98		67

Total stock-based compensation	$	1,972	$	2,226

Summary of Assumptions Used to Estimate Fair Value of Each SAR


	Three Months Ended March 31, 2023			Three Months Ended March 31, 2022
Weighted-average fair value of grants	$	27.19		$	33.90
Dividend yield		0	%		0	%
Average risk-free interest rate		4.0	%		1.9	%
Expected term (years)		5			5
Expected volatility		49.5	%		44.9	%

Summary of Stock-Based Compensation Grants

The following table summarizes the Company’s stock-based compensation grants for the three months ended March 31, 2023:


	Stock Awards Granted		Weighted-Average Grant Price Per Share
Time-based restricted stock units		76,698	$	56.75
Performance-based restricted stock units (a)		96,013	$	56.79
Stock appreciation rights		51,916	$	56.80

(a)

Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Details of Segment Information

Segment Data:


	Three Months Ended March 31, 2023		Three Months Ended March 31, 2022
	Trex Residential and Consolidated		Trex Residential		Trex Commercial			Consolidated
Net sales	$	238,718	$	327,194	$	12,034		$	339,228
Net Income (loss)	$	41,131	$	72,215	$	(1,004	)	$	71,211
EBITDA	$	68,862	$	106,483	$	(1,058	)	$	105,425
Depreciation and amortization	$	11,914	$	10,191	$	282		$	10,473
Income tax expense (benefit)	$	13,832	$	24,063	$	(336	)	$	23,727
Capital expenditures	$	39,192	$	22,283	$	5		$	22 288
Total assets	$	1,133,121	$	929,737	$	42,659		$	972,396

Schedule of Reconciliation of Net Income to EBITDA

Reconciliation of Net Income to EBITDA:


	Three Months Ended March 31, 2023		Three Months Ended March 31, 2022
	Trex Residential and Consolidated		Trex Residential		Trex Commercial			Consolidated
Net Income (loss)	$	41,131	$	72,215	$	(1,004	)	$	71,211
Interest expense, net		1,985		14		—			14
Income tax expense (benefit)		13,832		24,063		(336	)		23,727
Depreciation and amortization		11,914		10,191		282			10,473

EBITDA	$	68,862	$	106,483	$	(1,058	)	$	105,425

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Summary of Reconciliation of Company's Residential Product Warranty Reserve

The following is a reconciliation of the Company’s residential product warranty reserve (in thousands):


	Three Months Ended March 31, 2023
	Surface Flaking			Other Residential			Total
Beginning balance, January 1	$	15,905		$	9,694		$	25,599
Provisions and changes in estimates		—			1,945			1,945
Settlements made during the period		(316	)		(551	)		(867	)

Ending balance, March 31	$	15,589		$	11,088		$	26,677


	Three Months Ended March 31, 2022
	Surface Flaking			Other Residential			Total
Beginning balance, January 1	$	18,542		$	10,053		$	28,595
Provisions and changes in estimates		—			1,090			1,090
Settlements made during the period		(745	)		(528	)		(1,273	)

Ending balance, March 31	$	17,797		$	10,615		$	28,412

Business and Organization - Additional Information (Detail) - Segment		3 Months Ended
	Dec. 30, 2022	Mar. 31, 2023
Accounting Policies [Abstract]
Number of reportable segments	2	1

Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 98,573	$ 107,114
Raw materials	64,262	69,292
Total FIFO (first-in, first-out) inventories	162,835	176,406
Reserve to adjust inventories to LIFO value	(35,051)	(35,051)
Total LIFO inventories	$ 127,784	$ 141,355

Prepaid Expenses and Other Assets - Summary of Prepaid Expenses and Other Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Prepaid Expense and Other Assets [Abstract]
Prepaid expenses	$ 10,738	$ 10,787
Income tax receivable	14,635	23,979
Other	339	339
Total prepaid expenses and other assets	$ 25,712	$ 35,105

Goodwill and Other Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Goodwill [Line Items]
Amortization of intangible asset	$ 0.1	$ 0.1
Intangible Assets	6.3		$ 6.3
Accumulated Amortization	2.0		1.9
Residential [Member]
Goodwill [Line Items]
Goodwill	$ 14.2		$ 14.2
Domain Names [Member]
Goodwill [Line Items]
Amortization period	15 years

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Accrued Expenses and Other Liabilities - Summary of Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Sales and marketing	$ 18,300	$ 19,194
Compensation and benefits	10,413	8,646
Operating lease liabilities	7,731	7,488
Manufacturing costs	3,084	3,425
Income taxes	3,863	0
Other	7,138	5,311
Total accrued expenses and other liabilities	$ 50,529	$ 44,064

Debt - Additional Information (Detail) - USD ($)	3 Months Ended
Debt - Additional Information (Detail) - USD ($)	Mar. 31, 2023	Dec. 31, 2022	Dec. 22, 2022	May 26, 2022	May 18, 2022	May 26, 2020
Line of Credit Facility [Line Items]
Remaining available borrowing capacity	$ 180,500,000
Termination date of the Credit Agreement	Nov. 05, 2024
Outstanding borrowing capacity	$ 369,500,000	$ 222,000,000
Revolver Loans Portion Effective January 1 through June 30 [Member] \| Fourth Amended And Restated Credit Agreement [Member]
Line of Credit Facility [Line Items]
Revolving loans in a collective maximum principal amount	250,000,000
Revolver Loans Portion Effective July 1 through December 31 [Member] \| Fourth Amended And Restated Credit Agreement [Member]
Line of Credit Facility [Line Items]
Revolving loans in a collective maximum principal amount	$ 200,000,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Revolving loans in a collective maximum principal amount				$ 100,000,000		$ 100,000,000
Debt, Weighted Average Interest Rate	5.64%
Revolving Credit Facility [Member] \| Fifth Amendment And Restated Agreement [Member]
Line of Credit Facility [Line Items]
Revolving loans in a collective maximum principal amount					$ 400,000,000
Termination date of the Credit Agreement	May 18, 2027
Number Of Business Days Within Which Lender May Raise Objections To Amendment	10 days
Revolving Credit Facility [Member] \| Fifth Amendment And Restated Agreement [Member] \| Letter of Credit [Member]
Line of Credit Facility [Line Items]
Revolving loans in a collective maximum principal amount					60,000,000
Revolving Credit Facility [Member] \| Fifth Amendment And Restated Agreement [Member] \| Swingline Letter Of Credit [Member]
Line of Credit Facility [Line Items]
Revolving loans in a collective maximum principal amount					$ 20,000,000
Revolving Credit Facility [Member] \| Base Rate [Member] \| Fifth Amendment And Restated Agreement [Member]
Line of Credit Facility [Line Items]
Interest rate	0.50%
Debt instrument, description of variable rate basis	the Federal Funds Rate plus 0.50%
Revolving Credit Facility [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] \| Fifth Amendment And Restated Agreement [Member]
Line of Credit Facility [Line Items]
Interest rate	1.00%
Debt instrument, description of variable rate basis	the Term SOFR plus 1.0%
Revolving B Loan [Member]
Line of Credit Facility [Line Items]
Long-Term Line of Credit	$ 150,000,000
Revolving B Loan [Member] \| Maximum [Member]
Line of Credit Facility [Line Items]
Debt instrument, Interest rate, Stated percentage	2.15%
Revolving B Loan [Member] \| Minimum [Member]
Line of Credit Facility [Line Items]
Debt instrument, Interest rate, Stated percentage	1.20%
Revolving B Loan [Member] \| Fifth Amendment And Restated Agreement [Member] \| Letter of Credit [Member]
Line of Credit Facility [Line Items]
Revolving loans in a collective maximum principal amount			$ 60,000,000
Revolving B Loan [Member] \| Fifth Amendment And Restated Agreement [Member] \| Swingline Letter Of Credit [Member]
Line of Credit Facility [Line Items]
Revolving loans in a collective maximum principal amount			$ 20,000,000
Revolving B Loan [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] \| Maximum [Member]
Line of Credit Facility [Line Items]
Interest rate	1.15%
Revolving B Loan [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] \| Minimum [Member]
Line of Credit Facility [Line Items]
Interest rate	0.20%

Leases - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Weighted average discount rate	2.25%		2.10%
Operating lease cost	$ 2.1	$ 2.1
Weighted average remaining lease term	5 years		5 years 2 months 12 days
Minimum [Member]
Operating Lease terms	1 year
Maximum [Member]
Operating Lease terms	7 years

Leases - Supplemental Cash flow Information to operating leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Supplemental cash flow information
Cash paid for amounts included in the measurement of operating lease liabilities	$ 2,120	$ 2,174
Operating ROU assets obtained in exchange for lease liabilities	1,541	$ 6,053
Supplemental balance sheet information
Operating lease ROU assets	30,654		$ 30,991
Operating lease liabilities:
Accrued expenses and other current liabilities	7,731		7,488
Operating lease liabilities	23,318		23,974
Total operating lease liabilities	$ 31,049		$ 31,462

Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Operating Lease Liabilities, Payments Due [Abstract]
2023	$ 5,960
2024	7,290
2025	5,456
2026	4,755
2027	4,400
Thereafter	4,844
Total lease payments	32,705
Less imputed interest	(1,656)
Total operating lease liabilities	$ 31,049	$ 31,462

Stockholders' Equity - Additional Information (Detail) - Stock Repurchase Programs [Member] - shares	May 04, 2023	Mar. 31, 2023
Equity, Class of Treasury Stock [Line Items]
Common stock repurchase program, authorized shares		11,600,000
Subsequent Event [Member]
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased by the Company	10,800,000

Stockholders' Equity - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net income available to common shareholders	$ 41,131	$ 71,211
Denominator:
Basic weighted average shares outstanding	108,771,958	114,638,424
Effect of dilutive securities:
Diluted weighted average shares outstanding	108,916,261	114,853,881
Basic earnings per share	$ 0.38	$ 0.62
Diluted earnings per share	$ 0.38	$ 0.62
Stock appreciation rights [Member]
Effect of dilutive securities:
Dilutive securities	70,004	124,327
Restricted stock [Member]
Effect of dilutive securities:
Dilutive securities	74,299	91,130

Stockholders' Equity - Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restricted stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted earnings per share	107,571	52,278
Stock appreciation rights [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted earnings per share	108,749	31,006

Revenue From Contracts With Customers - Summary of Disaggregated Net Sales (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	$ 238,718	$ 339,228
Products Transferred at a Point in Time and Variable Consideration Contracts [Member]
Disaggregation of Revenue [Line Items]
Revenue from contract with customers		327,194
Products Transferred Over Time and Fixed Price Contracts [Member]
Disaggregation of Revenue [Line Items]
Revenue from contract with customers		12,034
Residential [Member]
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	238,718	327,194
Residential [Member] \| Products Transferred at a Point in Time and Variable Consideration Contracts [Member]
Disaggregation of Revenue [Line Items]
Revenue from contract with customers	$ 238,718	327,194
Commercial [Member]
Disaggregation of Revenue [Line Items]
Revenue from contract with customers		12,034
Commercial [Member] \| Products Transferred Over Time and Fixed Price Contracts [Member]
Disaggregation of Revenue [Line Items]
Revenue from contract with customers		$ 12,034

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to unvested awards	$ 18.6
2014 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock available for future issuance	4,000,000
Performance-Based Restricted Stock and Performance-Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares or rights issued	11,059
Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value assumptions method used	Black-Scholes option-pricing formula
Number of shares or rights issued	51,916
Performance Based Restricted Stock Adjustment [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares or rights issued		1,413	9,646

Stock-Based Compensation - Summary of Stock-Based Compensation Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,972	$ 2,226
Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	215	154
Time-Based Restricted Stock and Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	935	847
Performance-Based Restricted Stock and Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	724	1,158
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 98	$ 67

Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value of Each SAR (Detail) - Stock Appreciation Rights [Member] - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions and Methodology [Line Items]
Weighted-average fair value of grants	$ 27.19	$ 33.9
Dividend yield	0.00%	0.00%
Average risk-free interest rate	4.00%	1.90%
Expected term (years)	5 years	5 years
Expected volatility	49.50%	44.90%

Stock-Based Compensation - Summary of Stock-Based Compensation Grants (Detail)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Time Based Restricted Stock Units [Member]
Stock Awards Granted \| shares	76,698
Weighted-Average Grant Price Per Share \| $ / shares	$ 56.75
Performance Based Restricted Stock Units [Member]
Stock Awards Granted \| shares	96,013
Weighted-Average Grant Price Per Share \| $ / shares	$ 56.79
Stock Appreciation Rights [Member]
Stock Awards Granted \| shares	51,916
Weighted-Average Grant Price Per Share \| $ / shares	$ 56.8

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Contingency [Line Items]
Valuation allowance	$ 3,000
Income tax expense (benefit)	$ 13,832	$ 23,727
Effective tax rate	25.20%	25.00%
Excess tax benefits from stock based awards	$ 200	$ 100
Earliest Tax Year [Member] \| Federal Tax Jurisdiction [Member]
Income Tax Contingency [Line Items]
Tax years subject to examination	2019
Latest Tax Year [Member] \| Federal Tax Jurisdiction [Member]
Income Tax Contingency [Line Items]
Tax years subject to examination	2022

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Segment Information - Additional Information (Detail) - Segment		3 Months Ended
	Dec. 30, 2022	Mar. 31, 2023
Segment Reporting Information [Line Items]
Number of reportable segment	2	1

Segment Information - Details of Segment Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Net sales	$ 238,718	$ 339,228
Net Income (loss)	41,131	71,211
Depreciation and amortization	11,915	10,473
Income tax expense (benefit)	13,832	23,727
Total assets	1,133,121		$ 933,705
Residential [Member]
Segment Reporting Information [Line Items]
Net sales	238,718	327,194
Net Income (loss)		72,215
EBITDA		106,483
Depreciation and amortization		10,191
Income tax expense (benefit)		24,063
Commercial [Member]
Segment Reporting Information [Line Items]
Net sales		12,034
Net Income (loss)		(1,004)
EBITDA		(1,058)
Depreciation and amortization		282
Income tax expense (benefit)		(336)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net sales		339,228
Net Income (loss)		71,211
EBITDA		105,425
Depreciation and amortization		10,473
Income tax expense (benefit)		23,727
Capital expenditures		22,288
Total assets		972,396
Operating Segments [Member] \| Residential [Member]
Segment Reporting Information [Line Items]
Net sales	238,718	327,194
Net Income (loss)	41,131	72,215
EBITDA	68,862	106,483
Depreciation and amortization	11,914	10,191
Income tax expense (benefit)	13,832	24,063
Capital expenditures	39,192	22,283
Total assets	$ 1,133,121	929,737
Operating Segments [Member] \| Commercial [Member]
Segment Reporting Information [Line Items]
Net sales		12,034
Net Income (loss)		(1,004)
EBITDA		(1,058)
Depreciation and amortization		282
Income tax expense (benefit)		(336)
Capital expenditures		5
Total assets		$ 42,659

Segment Information - Schedule of Reconciliation of Net Income to EBITDA (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Net Income (loss)	$ 41,131	$ 71,211
Interest expense, net	(1,985)	(14)
Income tax expense (benefit)	13,832	23,727
Depreciation and amortization	11,915	10,473
Residential [Member]
Segment Reporting Information [Line Items]
Net Income (loss)		72,215
Interest expense, net		14
Income tax expense (benefit)		24,063
Depreciation and amortization		10,191
EBITDA		106,483
Commercial [Member]
Segment Reporting Information [Line Items]
Net Income (loss)		(1,004)
Income tax expense (benefit)		(336)
Depreciation and amortization		282
EBITDA		(1,058)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net Income (loss)		71,211
Interest expense, net		14
Income tax expense (benefit)		23,727
Depreciation and amortization		10,473
EBITDA		105,425
Operating Segments [Member] \| Residential [Member]
Segment Reporting Information [Line Items]
Net Income (loss)	41,131	72,215
Interest expense, net	1,985
Income tax expense (benefit)	13,832	24,063
Depreciation and amortization	11,914	10,191
EBITDA	$ 68,862	106,483
Operating Segments [Member] \| Commercial [Member]
Segment Reporting Information [Line Items]
Net Income (loss)		(1,004)
Income tax expense (benefit)		(336)
Depreciation and amortization		282
EBITDA		$ (1,058)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Commitments and Contingencies - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)	Oct. 26, 2021 USD ($) a
Schedule Of Commitments And Contingencies [Line Items]
Change in warranty reserve for disclosure purposes only	$ 1.6
Area of Land \| a		300
Residential Portfolio Segment [Member]
Schedule Of Commitments And Contingencies [Line Items]
Land and Land Improvements		$ 400.0
Surface Flaking Warranty Reserve [Member]
Schedule Of Commitments And Contingencies [Line Items]
Percentage change in warranty claims used as a threshold for disclosure	10.00%
Residential Use [Member] \| Products Sold Prior to January One, Two Thousand and Twenty Three [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	25 years
Commercial Use [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	10 years
Commercial Use [Member] \| Products Sold Prior to January One, Two Thousand and Twenty Three [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	10 years
Signature Railing And Transcend Cladding [Member] \| Commercial Use [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	25 years
Transcend Decking [Member] \| Residential Use [Member] \| Products Sold on or After January One, Two Thousand and Twenty Three [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	50 years
Select Decking And Universal Fascia [Member] \| Residential Use [Member] \| Products Sold on or After January One, Two Thousand and Twenty Three [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	35 years
Enhance Decking And Transcend, Select, Enhance And Signature Railing [Member] \| Residential Use [Member] \| Products Sold on or After January One, Two Thousand and Twenty Three [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	25 years
Signature Railing [Member] \| Residential and Commercial Use [Member] \| Products Sold Prior to January One, Two Thousand and Twenty Three [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	25 years

Commitments and Contingencies - Summary of Reconciliation of Company's Residential Product Warranty Reserve (Detail) - Surface Flaking Warranty Reserve [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Product Warranty Liability [Line Items]
Beginning balance	$ 25,599	$ 28,595
Provisions and changes in estimates	1,945	1,090
Settlements made during the period	(867)	(1,273)
Ending balance	26,677	28,412
Surface Flaking [Member]
Product Warranty Liability [Line Items]
Beginning balance	15,905	18,542
Settlements made during the period	(316)	(745)
Ending balance	15,589	17,797
Other Residential [Member]
Product Warranty Liability [Line Items]
Beginning balance	9,694	10,053
Provisions and changes in estimates	1,945	1,090
Settlements made during the period	(551)	(528)
Ending balance	$ 11,088	$ 10,615