8-K
TREX CO INC false 0001069878 0001069878 2024-02-26 2024-02-26

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 26, 2024

 

 

TREX COMPANY, INC.

(Exact Name of Registrant as Specified in Charter)

 

 

 

Delaware   001-14649   54-1910453

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

2500 Trex Way  
Winchester, Virginia   22601
(Address of Principal Executive Offices)   (ZIP Code)

Registrant’s telephone number, including area code: (540) 542-6300

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common stock   TREX   New York Stock Exchange LLC

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

 

 

 


Item 2.02.

Results of Operations and Financial Condition.

On February 26, 2024, Trex Company, Inc. issued a press release announcing financial results for the three months and twelve months ended December 31, 2023. A copy of such press release is attached hereto as Exhibit 99.1 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 February 26, 2024, announcing financial results for the three months and twelve months ended December 31, 2023.
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: February 26, 2024      

/s/ Brenda K. Lovcik

      Brenda K. Lovcik
     

Senior Vice President and

Chief Financial Officer

EX-99.1

Exhibit 99.1

 

LOGO

NEWS RELEASE

TREX COMPANY REPORTS FOURTH QUARTER AND FULL

YEAR 2023 RESULTS

 

 

—Strong Fourth Quarter Sales Cap a Year of Resilient Consumer Demand for Trex Decking & Railing—

—Full Year Gross Margin Expanded By 480 Basis Points—

—2024 Guidance Anticipates Double-Digit Sales Growth and Further Margin Expansion—

 

 

WINCHESTER, Va.—February 26, 2024— Trex Company, Inc. (NYSE:TREX) (Trex or Company), the world’s #1 brand of high-performance, low-maintenance and eco-friendly decking and railing and a leader in outdoor living products, today announced financial results for its fourth quarter and full year 2023.

 

 

Fourth Quarter and Full Year 2023 Highlights

 

 

 

   

Quarterly net sales of $196 million; Full year net sales of $1.1 billion.

 

   

Fourth quarter gross margin of 36.1%; Full year gross margin of 41.3%.

 

   

Quarterly net income of $22 million and diluted earnings per share of $0.20; Full year net income of $205 million and diluted earnings per share of $1.89.

 

   

Fourth quarter EBITDA of $41 million and EBITDA margin of 21.0%; Full year EBITDA of $326 million and EBITDA margin of 29.8%.

 

 

CEO Comments

 

 

“Fourth quarter results represented a strong finish to the year. Sales were above the high end of our guidance range, reflecting strong demand for Trex products heading into 2024. Channel sell-through remained at mid-single-digit levels in the fourth quarter and channel inventories ended the year at historically low levels,” said Bryan Fairbanks, President and CEO. “Also, our recently launched products are continuing to gain traction in the marketplace. Notably, our Trex Transcend® Lineage decking line, which offers consumers the look and feel of wood together with heat mitigation technology has garnered considerable consumer interest, along with Trex Select® T-Rail, our high-performance, value-priced composite rail system, and the premium Trex Signature® decking line, which replicates the graining and color richness of tropical hardwoods.


All launched within the last 18 months, these additions to our portfolio have extended the appeal of Trex products to a broader consumer base, expanding our addressable market opportunity. Product launches in 2024 include Trex’s new color matched fastener system and innovative cable and glass railing systems that add two new specialty options to our premium railing line,” continued Mr. Fairbanks.

“Our full year performance demonstrates the resilience of Trex-branded products during periods of economic uncertainty and the positive impact of the Trex continuous improvement program, which were key to the margin improvement achieved in 2023. Throughout the year, we worked closely with our channel partners to optimize inventory levels and lead times to address the dynamic market environment. Additionally, we increased our investment in sales, marketing, and branding programs, along with new product development to drive our future growth. These expenditures are aligned with our strategy to take full advantage of the strong long-term secular trends that have made the Outdoor Living category one of the fastest-growing segments of the Repair & Remodel sector,” said Mr. Fairbanks.

 

 

Fourth Quarter 2023 Results

 

 

Fourth quarter 2023 consolidated net sales were $196 million, compared to $192 million reported in the prior-year quarter and 8.4% above Trex Residential net sales of $181 million in the year ago quarter. The growth in net sales was due primarily to increased volume and the absence of the residual channel inventory drawdown that occurred in the 2022 fourth quarter.

Gross margin was 36.1% in the fourth quarter of 2023 compared, to reported consolidated gross margin of 34.1% and Trex Residential gross margin of 36.1% in the same quarter last year.

Selling, general and administrative expenses were $43 million, or 21.7% of net sales. This compares to $35 million, or 18.5% of net sales, in the 2022 fourth quarter. In the 2023 fourth quarter, the Company elevated spending on branding and merchandising related to new products launching in 2024, increased R&D to drive growth and returned to normalized personnel and incentive costs.

Net income for the 2023 fourth quarter was $22 million, or $0.20 per diluted share, compared to $10 million, or $0.09 per diluted share, reported in the 2022 fourth quarter. EBITDA was $41 million, compared to $26 million and EBITDA margin was 21.0%, compared to 13.4%.


 

Full Year 2023 Results

 

 

Full year consolidated net sales were $1.1 billion, comparable to 2022 consolidated levels and $35 million higher than Trex Residential net sales in 2022. Gross margin was 41.3%, compared to consolidated gross margin of 36.5% and Trex Residential gross margin of 37.7% in 2022. Selling, general and administrative expenses were $176 million, or 16.1% of net sales, compared to $142 million, or 12.8% of net sales, in 2022.

Full year 2023 net income was $205 million, or $1.89 per diluted share, compared to $185 million, or $1.65 per diluted share, in 2022. EBITDA was $326 million, resulting in an EBITDA margin of 29.8%, compared to EBITDA of $291 million and an EBITDA margin of 26.3% in 2022.

During the 2023 fiscal year, the Company recognized a $3.8 million benefit from a reduction in the Trex Residential warranty reserve related to the surface flaking issue that affected a portion of the products manufactured at the Nevada plant prior to 2007. Excluding the warranty benefit, 2023 adjusted gross margin was 41.0%, adjusted net income was $203 million, or $1.86 per diluted share, adjusted EBITDA was $323 million, and adjusted EBITDA margin was 29.5%.

During 2023, Trex authorized the repurchase of up to 10.8 million shares, or approximately 10% of its existing share float, under a new stock repurchase program. During the year the Company returned $15.6 million to shareholders through the repurchase of 264,896 shares of its outstanding common stock.

 

 

Recent Developments & Recognitions

 

 

 

   

Lowe’s honored Trex with its 2023 Sustainability Award for the Company’s commitment to manufacturing sustainably made, wood-alternative decking.

 

   

Investor’s Business Daily named Trex Company one of the 100 Best ESG Companies for 2023, selected from more than 6,000 global companies, and one of only three in its industry to make the list.

 

   

Trex Company was ranked by Newsweek magazine as one of America’s Most Responsible Companies 2024, reinforcing Trex’s position as a sustainability leader.

 

 

Summary and Outlook

 

 

The Trex team effectively managed through an uncertain business environment in 2023 delivering solid sales performance and improved profitability, while investing in future growth. In 2024, we expect to achieve double-digit sales growth, benefitting from mid-single-digit demand growth and the shift of our Early Buy program to the first quarter of this year from the fourth quarter of 2023.


“For full year 2024, net sales are anticipated to range from $1.215 billion to $1.235 billion, representing year-on-year revenue growth of 12% at the midpoint and EBITDA margin is expected to be in the range of 30.0% to 30.5%, representing margin expansion of approximately 75 basis points. Approximately 60% of full year revenues are expected to occur in the first half of the year. Capital expenditures are expected to be approximately $220 million primarily tied to the development of our new Arkansas campus, including the addition of a warehouse facility,” continued Mr. Fairbanks.

“First quarter 2024 sales are expected to be in the $360 million to $370 million range, inclusive of $60 million to $80 million from our Early Buy program.

“In 2024, we plan to continue to invest in areas that have yielded substantial returns for our Company, notably branding and sales and marketing programs, which have been very effective in driving sales growth, and cost-out programs, which have enabled us to expand gross margin on less-than-full capacity. New product development will remain a priority in 2024, as will the build-out of our world class Arkansas facility. These investments are aligned with our strategy to capture an increasing share of decking, railing, and adjacent products, which together represent a $14 billion addressable market for Trex,” Mr. Fairbanks concluded.

 

 

Fourth Quarter 2023 Conference Call and Webcast Information

 

 

Trex will hold a conference call to discuss its fourth quarter and full year 2023 results on Monday, February 26, 2024, at 5:00 p.m. ET. To participate on the day of the call, dial 1-844-792-3734, or internationally 1-412-317-5126, approximately ten minutes before the call and tell the operator you wish to join the Trex Company Conference Call.

A live webcast of the conference call will be available in the Investor Relations section of the Trex Company website at 4Q23 Earnings Webcast. For those who cannot listen to the live broadcast, an audio replay of the conference call will be available within 24 hours after the call on the Trex website. The audio replay will be available for 30 days.


 

Use of Non-GAAP Measures

 

 

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). To supplement our consolidated financial statements reported on a GAAP basis, we provide the following non-GAAP financial measures of adjusted net income and adjusted diluted earnings per share, earnings before interest, income taxes, depreciation and amortization (EBITDA) and EBITDA as a percentage of net sales, EBITDA margin, and adjusted EBITDA and adjusted EBITDA margin. Management believes these non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. Further, management believes these non-GAAP financial measures also enhance investors’ ability to compare period-to-period financial results. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP and are not meant to be considered superior to or a substitute for our GAAP results. Our non-GAAP financial measures do not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of these non-GAAP financial measures to GAAP information are included below. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the company’s performance. Disclosing these non-GAAP financial measures allows investors and management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.

Reconciliation of net income (GAAP) to adjusted net income (non-GAAP) is as follows:

 

     Three Months Ended     Year Ended  
     December 31,     December 31,  

Trex Company, Inc.

   2023      Consolidated
2022
    Trex
Residential
2022
    2023     Consolidated
2022
    Trex
Residential
2022
 
     (in thousands, except per share amounts)  

Net Income

   $ 21,951      $ 10,076     $ 23,937     $ 205,384     $ 184,626     $ 200,876  

Warranty adjustment

     —         —        —        (3,800     —        —   

Severance charges

     —         —        —        —        1,222       1,026  

Loss on sale and other related expenses

     —         17,159       —        —        17,159       —   

Non-executive retention compensation

     —         3,406       3,406       —        3,406       3,406  

Income tax effect *

     —         (5,182     (858     973       (5,490     (1,117
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Net Income

   $ 21,951      $ 25,459     $ 26,485     $ 202,557     $ 200,923     $ 204,191  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

   $ 0.20      $ 0.09     $ 0.22     $ 1.89     $ 1.65     $ 1.80  

Adjusted diluted earnings per share

   $ 0.20      $ 0.23     $ 0.24     $ 1.86     $ 1.80     $ 1.83  

 

*

Income tax effect calculated using the effective tax rate for the applicable period of 25.6% and 25.2%.


Reconciliation of net income (GAAP) to EBITDA and adjusted EBITDA (non-GAAP) is as follows:

 

     Three Months Ended
December 31,
    Year Ended
December 31,
 

Trex Company, Inc.

   2023     Consolidated
2022
    Trex
Residential
2022
    2023     Consolidated
2022
    Trex
Residential
2022
 
     ($in thousands)  

Net Income

   $ 21,951     $ 10,076     $ 23,937     $ 205,384     $ 184,626     $ 200,876  

Interest expense (income), net

     (2,550     (1     (1     5       (103     (103

Income tax expense

     8,727       4,548       8,859       70,815       62,212       67,313  

Depreciation and amortization

     12,995       11,029       10,739       50,189       44,298       43,173  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 41,123     $ 25,652     $ 43,534     $ 326,393     $ 291,033     $ 311,259  

Warranty adjustment

     —        —        —        (3,800     —        —   

Severance charges

     —        —        —        —        1,222       1,026  

Loss on sale and other related expenses

     —        17,159       —        —        17,159       —   

Non-executive retention compensation

     —        3,406       3,406       —        3,406       3,406  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 41,123     $ 46,217     $ 46,940     $ 322,593     $ 312,820     $ 315,691  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income as a percentage of net sales

     11.2     5.2     13.3     18.8     16.7     19.0

EBITDA as a percentage of net sales (EBITDA margin)

     21.0     13.4     24.1     29.8     26.3     29.4

Adjusted EBITDA as a percentage of net sales (Adjusted EBITDA margin)

     21.0     24.1     26.0     29.5     28.3     29.8

 

 

About Trex Company

 

 

For more than 30 years, Trex Company [NYSE: TREX] has invented, reinvented and defined the composite decking category. Today, the Company is the world’s #1 brand of sustainably made, wood-alternative decking and deck railing – all proudly manufactured in the U.S.A. – and a leader in high performance, low-maintenance outdoor living products. Trex boasts the industry’s strongest distribution network with products sold through more than 6,700 retail outlets across six continents. Through strategic licensing agreements, the Company offers a comprehensive outdoor living portfolio that includes deck drainage, flashing tapes, LED lighting, outdoor kitchen components, pergolas, spiral stairs, fencing, lattice, cornhole and outdoor furniture – all marketed under the Trex® brand. Based in Winchester, Va., Trex is proud to have been honored with Lowe’s 2023 Sustainability Award, recognized as one of the 100 Best ESG Companies for 2023 by Investor’s Business Daily, and ranked by Newsweek magazine as one of America’s Most Responsible Companies. For more information, visit Trex.com. You may also follow Trex on Facebook (trexcompany), Instagram (trexcompany), X (Trex_Company), LinkedIn (trex-company), TikTok (trexcompany), Pinterest (trexcompany) and Houzz (trex-company-inc), or view product and demonstration videos on the brand’s YouTube channel (TheTrexCo).


 

Forward-Looking Statements

 

 

The statements in this press release regarding the Company’s expected future performance and condition constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause the Company’s actual operating results to differ materially. Such risks and uncertainties include, but are not limited to: the extent of market acceptance of the Company’s current and newly developed products; the costs associated with the development and launch of new products and the market acceptance of such new products; the sensitivity of the Company’s business to general economic conditions; the impact of seasonal and weather-related demand fluctuations on inventory levels in the distribution channel and sales of the Company’s products; the availability and cost of third-party transportation services for the Company’s products; the Company’s ability to obtain raw materials at acceptable prices; increasing inflation in the macro-economic environment; the Company’s ability to maintain product quality and product performance at an acceptable cost; the Company’s ability to increase throughput and capacity to adequately match supply with demand; the level of expenses associated with warranty claims, product replacement and consumer relations expenses related to product quality; the highly competitive markets in which the Company operates; cyber-attacks, security breaches or other security vulnerabilities; the impact of current and upcoming data privacy laws and the EU General Data Protection Regulation and the related actual or potential costs and consequences; material adverse impacts from global public health pandemics and geopolitical conflicts; and material adverse impacts related to labor shortages or increases in labor costs. Documents filed with the U.S. Securities and Exchange Commission by the Company, including in particular its latest annual report on Form 10-K and quarterly reports on Form 10-Q, discuss some of the important factors that could cause the Company’s actual results to differ materially from those expressed or implied in these forward-looking statements. The Company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts:

Lynn Morgen/Casey Kotary, ADVISIRY Partners

212-750-5800

lynn.morgen@advisiry.com; casey.kotary@advisiry.com


TREX COMPANY, INC.

Condensed Consolidated Statements of Comprehensive Income

(In thousands, except share and per share data)

 

     Three Months Ended
December 31,
    Year Ended
December 31,
 
     2023     2022     2023      2022  
     (Unaudited)  

Net sales

   $ 195,745     $ 192,094     $ 1,094,837      $ 1,106,043  

Cost of sales

     125,108       126,602       642,430        702,054  
  

 

 

   

 

 

   

 

 

    

 

 

 

Gross profit

     70,637       65,492       452,407        403,989  

Selling, general and administrative expenses

     42,509       35,446       176,203        141,831  

Loss on Sale

     —        15,423       —         15,423  
  

 

 

   

 

 

   

 

 

    

 

 

 

Income from operations

     28,128       14,623       276,204        246,735  

Interest (income) expense, net

     (2,550     (1     5        (103
  

 

 

   

 

 

   

 

 

    

 

 

 

Income before income taxes

     30,678       14,624       276,199        246,838  

Provision for income taxes

     8,727       4,548       70,815        62,212  
  

 

 

   

 

 

   

 

 

    

 

 

 

Net income

   $ 21,951     $ 10,076     $ 205,384      $ 184,626  
  

 

 

   

 

 

   

 

 

    

 

 

 

Basic earnings per common share

   $ 0.20     $ 0.09     $ 1.89      $ 1.65  
  

 

 

   

 

 

   

 

 

    

 

 

 

Basic weighted average common shares outstanding

     108,599,628       109,042,968       108,680,459        111,710,676  
  

 

 

   

 

 

   

 

 

    

 

 

 

Diluted earnings per common share

   $ 0.20     $ 0.09     $ 1.89      $ 1.65  
  

 

 

   

 

 

   

 

 

    

 

 

 

Diluted weighted average common shares outstanding

     108,750,379       109,187,280       108,809,403        111,880,488  
  

 

 

   

 

 

   

 

 

    

 

 

 

Comprehensive income

   $ 21,951     $ 10,076     $ 205,384      $ 184,626  
  

 

 

   

 

 

   

 

 

    

 

 

 


TREX COMPANY, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share data)

(unaudited)

 

     December 31,     December 31,  
     2023     2022  

ASSETS

 

Current assets:

    

Cash and cash equivalents

   $ 1,959     $ 12,325  

Accounts receivable, net

     41,136       98,057  

Inventories

     107,089       141,355  

Prepaid expenses and other assets

     22,070       35,105  
  

 

 

   

 

 

 

Total current assets

     172,254       286,842  

Property, plant and equipment, net

     709,402       589,892  

Operating lease assets

     26,233       30,991  

Goodwill and other intangible assets, net

     18,163       18,582  

Other assets

     6,833       7,398  
  

 

 

   

 

 

 

Total assets

   $ 932,885     $ 933,705  
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

Current liabilities:

    

Accounts payable

   $ 23,963     $ 19,935  

Accrued expenses and other liabilities

     56,734       44,064  

Accrued warranty

     4,865       4,600  

Line of credit

     5,500       222,000  
  

 

 

   

 

 

 

Total current liabilities

     91,062       290,599  

Deferred income taxes

     72,439       68,224  

Operating lease liabilities

     18,840       23,974  

Non-current accrued warranty

     17,313       20,999  

Other long-term liabilities

     16,560       11,560  
  

 

 

   

 

 

 

Total liabilities

     216,214       415,356  
  

 

 

   

 

 

 

Preferred stock, $0.01 par value, 3,000,000 shares authorized; none issued and outstanding

     —        —   

Common stock, $0.01 par value, 360,000,000 shares authorized; 140,974,843 and 140,841,833 shares issued and 108,611,537 and 108,743,423 shares outstanding at December 31, 2023 and December 31, 2022, respectively

     1,410       1,408  

Additional paid-in capital

     140,157       131,539  

Retained earnings

     1,336,058       1,130,674  

Treasury stock, at cost, 32,363,306 and 32,098,410 shares at December 31, 2023 and December 31, 2022, respectively

     (760,954     (745,272
  

 

 

   

 

 

 

Total stockholders’ equity

     716,671       518,349  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 932,885     $ 933,705  
  

 

 

   

 

 

 


TREX COMPANY, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

 

     Year Ended
December 31,
 
     2023     2022  
     (unaudited)  

Operating Activities

    

Net income

   $ 205,384     $ 184,626  

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     50,189       44,298  

Deferred Income Taxes

     4,215       24,256  

Loss on Sale

     —        15,423  

Stock-based compensation

     10,164       5,329  

Loss (gain) on disposal of property, plant and equipment

     3,140       (27

Other non-cash adjustments

     (48     (117

Changes in operating assets and liabilities:

    

Accounts receivable

     56,921       42,513  

Inventories

     34,266       (64,454

Prepaid expenses and other assets

     (750     7,925  

Accounts payable

     2,697       (5,595

Accrued expenses and other liabilities

     8,875       (14,385

Income taxes receivable/payable

     14,367       (23,572
  

 

 

   

 

 

 

Net cash provided by operating activities

     389,420       216,220  
  

 

 

   

 

 

 

Investing Activities

    

Expenditures for property, plant and equipment

     (166,089     (176,228

Proceeds from sale of assets

     —        7,290  

Proceeds from sales of property, plant and equipment

     —        54  
  

 

 

   

 

 

 

Net cash used in investing activities

     (166,089     (168,884
  

 

 

   

 

 

 

Financing Activities

    

Borrowings under line of credit

     593,500       425,000  

Principal payments under line of credit

     (810,000     (203,000

Repurchases of common stock

     (18,450     (398,382

Proceeds from employee stock purchase and option plans

     1,223       1,742  

Financing costs

     30       (1,424
  

 

 

   

 

 

 

Net cash used in financing activities

     (233,697     (176,064
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (10,366     (128,728

Cash and cash equivalents at beginning of period

     12,325       141,053  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 1,959     $ 12,325  
  

 

 

   

 

 

 


TREX COMPANY, INC.

Segment Data

(in thousands)

(unaudited)

 

Three Months Ended

December 31, 2022 

   Trex
Consolidated
     Trex
Commercial
     Trex
Residential
 

Net sales

   $ 192,094      $ 11,450      $ 180,644  

Cost of sales

     126,602        11,199        115,403  

Gross profit

     65,492        252        65,240  

Selling, general and administrative expenses

     35,446        3,000        32,446  

Loss on Sale

     15,423        15,423        —   

Income (loss) from operations

     14,623        (18,172      32,795  

Interest income, net

     (1      —         (1

Income (loss) before income taxes

     14,624        (18,172      32,796  

Provision (benefit) for income taxes

     4,548        (4,311      8,859  

Net income (loss)

   $ 10,076      $ (13,861    $ 23,937  

EBITDA

   $ 25,652      $ (17,882    $ 43,534  

Depreciation and amortization

   $ 11,029      $ 290      $ 10,739  

Capital expenditures

   $ 68,065      $ 98      $ 67,967  

Total assets

   $ 933,705      $ —       $ 933,705  

TREX COMPANY, INC.

Segment Data

(in thousands)

(unaudited)

 

Year Ended

December 31, 2022 

   Trex
Consolidated
     Trex
Commercial
     Trex
Residential
 

Net sales

   $ 1,106,043      $ 46,507      $ 1,059,536  

Cost of sales

     702,054        42,365        659,689  

Gross profit

     403,989        4,142        399,847  

Selling, general and administrative expenses

     141,831        10,070        131,761  

Loss on Sale

     15,423        15,423        —   

Income (loss) from operations

     246,735        (21,351      268,086  

Interest income, net

     (103      —         (103

Income (loss) before income taxes

     246,838        (21,351      268,189  

Provision (benefit) for income taxes

     62,212        (5,101      67,313  

Net income (loss)

   $ 184,626      $ (16,250    $ 200,876  

EBITDA

   $ 291,033      $ (20,226    $ 311,259  

Depreciation and amortization

   $ 44,298      $ 1,125      $ 43,173  

Capital expenditures

   $ 176,228      $ 324      $ 175,904  

Total assets

   $ 933,705      $ —       $ 933,705