SEC Info℠ | Home | Search | My Interests | Help | Sign In | Please Sign In | ||||||||||||||||||||
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 10/31/22 Trex Co. Inc. 10-Q 9/30/22 73:5.5M Donnelley … Solutions/FA |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 1.34M 2: EX-31.1 Certification -- §302 - SOA'02 HTML 24K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 24K 4: EX-32 Certification -- §906 - SOA'02 HTML 22K 10: R1 Cover Page HTML 73K 11: R2 Condensed Consolidated Statements of Comprehensive HTML 90K Income 12: R3 Condensed Consolidated Balance Sheets HTML 119K 13: R4 Condensed Consolidated Balance Sheets HTML 39K (Parenthetical) 14: R5 Condensed Consolidated Statements of Changes in HTML 90K Stockholders' Equity 15: R6 Condensed Consolidated Statements of Cash Flows HTML 96K 16: R7 Business and Organization HTML 25K 17: R8 Basis of Presentation HTML 27K 18: R9 Recently Adopted Accounting Standards HTML 35K 19: R10 New Accounting Standards Not Yet Adopted HTML 25K 20: R11 Inventories HTML 34K 21: R12 Prepaid Expenses and Other Assets HTML 31K 22: R13 Goodwill and Other Intangible Assets, Net HTML 24K 23: R14 Accrued Expenses and Other Liabilities HTML 34K 24: R15 Debt HTML 36K 25: R16 Leases HTML 47K 26: R17 Financial Instruments HTML 24K 27: R18 Stockholders' Equity HTML 64K 28: R19 Revenue From Contracts With Customers HTML 75K 29: R20 Stock-Based Compensation HTML 54K 30: R21 Income Taxes HTML 28K 31: R22 Segment Information HTML 69K 32: R23 Seasonality HTML 24K 33: R24 Commitments and Contingencies HTML 53K 34: R25 Summary of Significant Accounting Policies HTML 25K (Policies) 35: R26 Inventories (Tables) HTML 33K 36: R27 Prepaid Expenses and Other Assets (Tables) HTML 31K 37: R28 Accrued Expenses and Other Liabilities (Tables) HTML 33K 38: R29 Leases (Tables) HTML 47K 39: R30 Stockholders' Equity (Tables) HTML 59K 40: R31 Revenue From Contracts With Customers (Tables) HTML 68K 41: R32 Stock-Based Compensation (Tables) HTML 53K 42: R33 Segment Information (Tables) HTML 102K 43: R34 Commitments and Contingencies (Tables) HTML 44K 44: R35 Business and Organization - Additional Information HTML 23K (Detail) 45: R36 Inventories - Summary of Inventories (Detail) HTML 31K 46: R37 Inventories - Additional Information (Detail) HTML 25K 47: R38 Prepaid Expenses and Other Assets - Summary of HTML 33K Prepaid Expenses and Other Assets (Detail) 48: R39 Goodwill and Other Intangible Assets, Net - HTML 38K Additional Information (Detail) 49: R40 Accrued Expenses and Other Liabilities - Summary HTML 37K of Accrued Expenses and Other Liabilities (Detail) 50: R41 Debt - Additional Information (Detail) HTML 58K 51: R42 Leases - Additional Information (Detail) HTML 32K 52: R43 Leases - Supplemental Cash flow Information to HTML 37K operating leases (Details) 53: R44 Leases - Maturities of Operating Lease Liabilities HTML 40K (Details) 54: R45 Stockholders' Equity - Additional Information HTML 26K (Detail) 55: R46 Stockholders' Equity - Computation of Basic and HTML 64K Diluted Earnings Per Share (Detail) 56: R47 Stockholders' Equity - Antidilutive Securities HTML 29K Excluded from Computation of Earnings Per Share (Detail) 57: R48 Revenue From Contracts With Customers - Additional HTML 25K Information (Detail) 58: R49 Revenue From Contracts With Customers - Summary of HTML 39K Disaggregated Net Sales (Detail) 59: R50 Stock-Based Compensation - Additional Information HTML 42K (Detail) 60: R51 Stock-Based Compensation - Summary of Stock-Based HTML 29K Compensation Grants (Detail) 61: R52 Stock-Based Compensation - Summary of Assumptions HTML 35K Used to Estimate Fair Value of Each SAR (Detail) 62: R53 Stock-Based Compensation - Summary of Stock-Based HTML 33K Compensation Expenses (Detail) 63: R54 Income Taxes - Additional Information (Detail) HTML 39K 64: R55 Segment Information - Additional Information HTML 23K (Detail) 65: R56 Segment Information - Details of Segment HTML 85K Information (Detail) 66: R57 Segment Information - Schedule of Reconciliation HTML 65K of Net Income to EBITDA (Detail) 67: R58 Commitments and Contingencies - Additional HTML 42K Information (Detail) 68: R59 Commitments and Contingencies - Summary of HTML 35K Reconciliation of Company's Residential Product Warranty Reserve (Detail) 71: XML IDEA XML File -- Filing Summary XML 130K 69: XML XBRL Instance -- d347630d10q_htm XML 1.30M 70: EXCEL IDEA Workbook of Financial Reports XLSX 109K 6: EX-101.CAL XBRL Calculations -- trex-20220930_cal XML 119K 7: EX-101.DEF XBRL Definitions -- trex-20220930_def XML 417K 8: EX-101.LAB XBRL Labels -- trex-20220930_lab XML 831K 9: EX-101.PRE XBRL Presentations -- trex-20220930_pre XML 644K 5: EX-101.SCH XBRL Schema -- trex-20220930 XSD 130K 72: JSON XBRL Instance as JSON Data -- MetaLinks 330± 476K 73: ZIP XBRL Zipped Folder -- 0001193125-22-274084-xbrl Zip 197K
10-Q |
i ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i Delaware |
i 54-1910453 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
i 160 Exeter Drive i Winchester, i Virginia |
i 22603-8605 | |
(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
i Common stock |
i TREX |
i New York Stock Exchange |
i Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | i ☐ | |||
Emerging growth company | i ☐ |
Item 1. |
Condensed Consolidated Financial Statements |
Three Months Ended September 30, |
Nine Months Ended |
|||||||||||||||
2021 |
2022 |
2021 |
||||||||||||||
Net sales |
$ | i 188,472 | $ | i 335,872 | $ | i 913,950 | $ | i 892,991 | ||||||||
Cost of sales |
i 142,264 | i 207,622 | i 575,452 | i 550,668 | ||||||||||||
Gross profit |
i 46,208 | i 128,250 | i 338,498 | i 342,323 | ||||||||||||
Selling, general and administrative expenses |
i 26,857 | i 33,931 | i 106,387 | i 102,880 | ||||||||||||
Gain on insurance proceeds |
— | ( i 3,777 | ) | — | ( i 5,497 | ) | ||||||||||
Income from operations |
i 19,351 | i 98,096 | i 232,111 | i 244,940 | ||||||||||||
Interest income, net |
— | ( i 10 | ) | ( i 103 | ) | — | ||||||||||
Income before income taxes |
i 19,351 | i 98,106 | i 232,214 | i 244,940 | ||||||||||||
Provision for income taxes |
i 4,928 | i 24,311 | i 57,665 | i 61,235 | ||||||||||||
Net income |
$ | i 14,423 | $ | i 73,795 | $ | i 174,549 | $ | i 183,705 | ||||||||
Basic earnings per common share |
$ | i 0.13 | $ | i 0.64 | $ | i 1.55 | $ | i 1.59 | ||||||||
Basic weighted average common shares outstanding |
i 110,140,496 | i 115,344,015 | i 112,609,684 | i 115,455,543 | ||||||||||||
Diluted earnings per common share |
$ | i 0.13 | $ | i 0.64 | $ | i 1.55 | $ | i 1.59 | ||||||||
Diluted weighted average common shares outstanding |
i 110,300,017 | i 115,625,760 | i 112,787,994 | i 115,767,426 | ||||||||||||
Comprehensive income |
$ | i 14,423 | $ | i 73,795 | $ | i 174,549 | $ | i 183,705 | ||||||||
2022 |
||||||||
(Unaudited) |
||||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | i 5,885 | $ | i 141,053 | ||||
Accounts receivable, net |
i 88,753 | i 151,096 | ||||||
Inventories |
i 132,115 | i 83,753 | ||||||
Prepaid expenses and other assets |
i 18,647 | i 25,152 | ||||||
Total current assets |
i 245,400 | i 401,054 | ||||||
Property, plant and equipment, net |
i 536,359 | i 460,365 | ||||||
Operating lease assets |
i 34,933 | i 34,571 | ||||||
Goodwill and other intangible assets, net |
i 18,687 | i 19,001 | ||||||
Other assets |
i 6,519 | i 5,330 | ||||||
Total assets |
$ |
i 841,898 |
$ |
i 920,321 |
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ | i 21,880 | $ | i 24,861 | ||||
Accrued expenses and other liabilities |
i 76,495 | i 58,041 | ||||||
Accrued warranty |
i 6,300 | i 5,800 | ||||||
Line of credit |
i 76,000 | — | ||||||
Total current liabilities |
i 180,675 | i 88,702 | ||||||
Deferred income taxes |
i 43,967 | i 43,967 | ||||||
Operating lease liabilities |
i 27,909 | i 28,263 | ||||||
Non-current accrued warranty |
i 21,249 | i 22,795 | ||||||
Other long-term liabilities |
i 11,560 | i 11,560 | ||||||
Total liabilities |
i 285,360 | i 195,287 | ||||||
Commitments and contingencies |
i — | i — | ||||||
Stockholders’ equity |
||||||||
Preferred stock, $ i i 0.01 /
par value, i i 3,000,000 / shares authorized; i i i i no / / / ne
issued and outstanding |
i — | i — | ||||||
Common stock, $ i i 0.01 /
par value, i i 360,000,000 / shares authorized; and i 140,820,228
and i 140,734,753 shares issued, respectively |
i 1,408 | i 1,407 | ||||||
Additional paid-in capital |
i 129,784 | i 127,787 | ||||||
Retained earnings |
i 1,120,598 | i 946,048 | ||||||
Treasury stock, at cost, i 30,946,057 and i 25,586,601 shares, respectively |
( i 695,252 | ) | ( i 350,208 | ) | ||||
Total stockholders’ equity |
i 556,538 | i 725,034 | ||||||
Total liabilities and stockholders’ equity |
$ |
i 841,898 |
$ |
i 920,321 |
||||
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Treasury Stock |
Total |
||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Balance, December 31, 2021 |
i 115,148,152 |
$ |
i 1,407 |
$ |
i 127,787 |
$ |
i 946,048 |
i 25,586,601 |
$ |
( i 350,208 |
) |
$ |
i 725,034 |
|||||||||||||||
Net income |
— | — | — | i 71,211 | — | — | i 71,211 | |||||||||||||||||||||
Employee stock plans |
i 9,081 | — | i 523 | — | — | — | i 523 | |||||||||||||||||||||
Shares withheld for taxes on awards |
( i 35,856 | ) | — | ( i 2,912 | ) | — | — | — | ( i 2,912 | ) | ||||||||||||||||||
Stock-based compensation |
i 79,926 | i 1 | i 2,225 | — | — | — | i 2,226 | |||||||||||||||||||||
Repurchases of common stock |
( i 833,963 | ) | — | — | — | i 833,963 | ( i 75,017 | ) | ( i 75,017 | ) | ||||||||||||||||||
Balance, March 31, 2022 |
i 114,367,340 |
$ |
i 1,408 |
$ |
i 127,623 |
$ |
i 1,017,259 |
i 26,420,564 |
$ |
( i 425,225 |
) |
$ |
i 721,065 |
|||||||||||||||
Net income |
— | — | — | i 88,916 | — | — | i 88,916 | |||||||||||||||||||||
Employee stock plans |
i 8,834 | — | i 429 | — | — | — | i 429 | |||||||||||||||||||||
Stock-based compensation |
i 2,024 | — | i 1,057 | — | — | — | i 1,057 | |||||||||||||||||||||
Repurchases of common stock |
( i 2,814,817 | ) | — | — | — | i 2,814,817 | ( i 169,992 | ) | ( i 169,992 | ) | ||||||||||||||||||
Balance, June 30, 2022 |
i 111,563,381 |
$ |
i 1,408 |
$ |
i 129,109 |
$ |
i 1,106,175 |
i 29,235,381 |
$ |
( i 595,217 |
) |
$ |
i 641,475 |
|||||||||||||||
Net income |
— | — | — | i 14,423 | — | — | i 14,423 | |||||||||||||||||||||
Employee stock plans |
i 11,003 | — | i 429 | — | — | — | i 429 | |||||||||||||||||||||
Shares withheld for taxes on awards |
( i 57 | ) | — | ( i 3 | ) | — | — | — | ( i 3 | ) | ||||||||||||||||||
Stock-based compensation |
i 10,520 | — | i 249 | — | — | — | i 249 | |||||||||||||||||||||
Repurchases of common stock |
( i 1,710,676 | ) | — | — | — | i 1,710,676 | ( i 100,035 | ) | ( i 100,035 | ) | ||||||||||||||||||
Balance, September 30, 2022 |
i 109,874,171 |
$ |
i 1,408 |
$ |
i 129,784 |
$ |
i 1,120,598 |
i 30,946,057 |
$ |
( i 695,252 |
) |
$ |
i 556,538 |
|||||||||||||||
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Treasury Stock |
Total |
||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Balance, December 31, 2020 |
i 115,799,503 |
$ |
i 1,406 |
$ |
i 126,087 |
$ |
i 737,311 |
i 24,777,502 |
$ |
( i 276,273 |
) |
$ |
i 588,531 |
|||||||||||||||
Net income |
— | — | — | i 48,545 | — | — | i 48,545 | |||||||||||||||||||||
Employee stock plans |
i 28,286 | — | i 460 | — | — | — | i 460 | |||||||||||||||||||||
Shares withheld for taxes on awards |
( i 38,212 | ) | — | ( i 4,045 | ) | — | — | — | ( i 4,045 | ) | ||||||||||||||||||
Stock-based compensation |
i 76,094 | — | i 2,176 | — | — | — | i 2,176 | |||||||||||||||||||||
Repurchases of common stock |
( i 504,275 | ) | — | — | — | i 504,275 | ( i 45,523 | ) | ( i 45,523 | ) | ||||||||||||||||||
Balance, March 31, 2021 |
i 115,361,396 |
$ |
i 1,406 |
$ |
i 124,678 |
$ |
i 785,855 |
i 25,281,777 |
$ |
( i 321,796 |
) |
$ |
i 590,143 |
|||||||||||||||
Net income |
— | — | — | i 61,366 | — | — | i 61,366 | |||||||||||||||||||||
Employee stock plans |
i 20,341 | — | i 400 | — | — | — | i 400 | |||||||||||||||||||||
Shares withheld for taxes on awards |
( i 13,491 | ) | — | ( i 1,446 | ) | — | — | — | ( i 1,446 | ) | ||||||||||||||||||
Stock-based compensation |
i 17,210 | i 1 | i 2,132 | — | — | — | i 2,133 | |||||||||||||||||||||
Repurchases of common stock |
( i 40,751 | ) | — | — | — | i 40,751 | ( i 3,820 | ) | ( i 3,820 | ) | ||||||||||||||||||
Balance, June 30, 2021 |
i 115,344,705 |
$ |
i 1,407 |
$ |
i 125,764 |
$ |
i 847,221 |
i 25,322,528 |
$ |
( i 325,616 |
) |
$ |
i 648,776 |
|||||||||||||||
Net income |
— | — | — | i 73,795 | — | — | i 73,795 | |||||||||||||||||||||
Employee stock plans |
i 36,590 | — | i 464 | — | — | — | i 464 | |||||||||||||||||||||
Shares withheld for taxes on awards |
( i 10,946 | ) | — | ( i 1,159 | ) | — | — | — | ( i 1,159 | ) | ||||||||||||||||||
Stock-based compensation |
i 10,565 | i — | i 1,887 | — | — | — | i 1,887 | |||||||||||||||||||||
Repurchases of common stock |
( i 31,688 | ) | — | — | — | i 31,688 | ( i 2,954 | ) | ( i 2,954 | ) | ||||||||||||||||||
Balance, September 30, 2021 |
i 115,349,226 |
$ |
i 1,407 |
$ |
i 126,956 |
$ |
i 921,016 |
i 25,354,216 |
$ |
( i 328,570 |
) |
$ |
i 720,809 |
|||||||||||||||
Nine Months Ended September 30, |
||||||||
2021 |
||||||||
OPERATING ACTIVITIES |
||||||||
Net income |
$ | i 174,549 | $ | i 183,705 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
i 33,269 | i 25,604 | ||||||
Stock-based compensation |
i 3,531 | i 6,195 | ||||||
Gain on disposal of property, plant and equipment |
( i 43 | ) | ( i 1,057 | ) | ||||
Other non-cash adjustments |
( i 171 | ) | ( i 40 | ) | ||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
i 62,343 | ( i 158,813 | ) | |||||
Inventories |
( i 48,362 | ) | ( i 5,399 | ) | ||||
Prepaid expenses and other assets |
i 7,125 | ( i 4,311 | ) | |||||
Accounts payable |
( i 3,769 | ) | i 17,219 | |||||
Accrued expenses and other liabilities |
i 8,842 | i 28,472 | ||||||
Income taxes receivable/payable |
i 7,079 | i 21,484 | ||||||
Net cash provided by operating activities |
i 244,393 | i 113,059 | ||||||
INVESTING ACTIVITIES |
||||||||
Expenditures for property, plant and equipment |
( i 108,163 | ) | ( i 124,451 | ) | ||||
Proceeds from sales of property, plant and equipment |
i 45 | i 1,355 | ||||||
Net cash used in investing activities |
( i 108,118 | ) | ( i 123,096 | ) | ||||
FINANCING ACTIVITIES |
||||||||
Borrowings under line of credit |
i 156,000 | i 416,000 | ||||||
Principal payments under line of credit |
( i 80,000 | ) | ( i 416,000 | ) | ||||
Repurchases of common stock |
( i 347,957 | ) | ( i 58,945 | ) | ||||
Proceeds from employee stock purchase and option plans |
i 1,381 | i 1,323 | ||||||
Financing costs |
( i 867 | ) | — | |||||
Net cash used in financing activities |
( i 271,443) | ( i 57,622 | ) | |||||
Net decrease in cash and cash equivalents |
( i 135,168 | ) | ( i 67,659 | ) | ||||
Cash and cash equivalents, beginning of period |
i 141,053 | i 121,701 | ||||||
Cash and cash equivalents, end of period |
$ |
i 5,885 |
$ |
i 54,042 |
||||
Supplemental Disclosure: |
||||||||
Cash paid for interest, net of capitalized interest |
$ | i — | $ | i — | ||||
Cash paid for income taxes, net |
$ | i 50,585 | $ | i 39,750 |
1. |
BUSINESS AND ORGANIZATION |
2. |
BASIS OF PRESENTATION |
3. |
RECENTLY ADOPTED ACCOUNTING STANDARDS |
4. |
NEW ACCOUNTING STANDARDS NOT YET ADOPTED |
5. |
INVENTORIES |
Finished goods |
$ | i 89,551 | $ | i 58,401 | ||||
Raw materials |
i 71,092 | i 56,441 | ||||||
|
|
|
|
|||||
Total FIFO (first-in, first-out) inventories |
i 160,643 | i 114,842 | ||||||
Reserve to adjust inventories to LIFO value |
( i 36,467 | ) | ( i 36,467 | ) | ||||
|
|
|
|
|||||
Total LIFO inventories |
$ | i 124,176 | $ | i 78,375 | ||||
|
|
|
|
6. |
PREPAID EXPENSES AND OTHER ASSETS |
2022 |
||||||||
Prepaid expenses |
$ | i 12,412 | $ | i 15,061 | ||||
Revenues in excess of billings |
i 4,306 | i 9,109 | ||||||
Income tax receivable |
i 1,176 | i 406 | ||||||
Other |
i 753 | i 576 | ||||||
|
|
|
|
|||||
Total prepaid expenses and other assets |
$ | i 18,647 | $ | i 25,152 | ||||
|
|
|
|
7. |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET |
8. |
ACCRUED EXPENSES AND OTHER LIABILITIES |
2022 |
||||||||
Sales and marketing |
$ | i 43,564 | $ | i 16,439 | ||||
Compensation and benefits |
i 9,075 | i 25,450 | ||||||
Operating lease liabilities |
i 7,596 | i 7,066 | ||||||
Manufacturing costs |
i 3,503 | i 4,110 | ||||||
Income taxes |
i 7,850 | i — | ||||||
Billings in excess of revenues |
i 1,213 | i 1,436 | ||||||
Other |
i 3,694 | i 3,540 | ||||||
|
|
|
|
|||||
Total accrued expenses and other liabilities |
$ | i 76,495 | $ | i 58,041 | ||||
|
|
|
|
9. |
DEBT |
10. |
LEASES |
Nine Months Ended September 30, |
||||||||
Supplemental cash flow information |
2022 |
2021 |
||||||
Cash paid for amounts included in the measurement of operating lease liabilities |
$ | i 6,532 | $ | i 6,196 | ||||
Operating ROU assets obtained in exchange for lease liabilities |
$ | i 7,332 | $ | i 7,047 |
Supplemental balance sheet information |
2022 |
|||||||
Operating lease ROU assets |
$ | i 34,933 | $ | i 34,571 | ||||
Operating lease liabilities: |
||||||||
Accrued expenses and other current liabilities |
$ | i 7,596 | $ | i 7,066 | ||||
Operating lease liabilities |
i 27,909 | i 28,263 | ||||||
Total operating lease liabilities |
$ | i 35,505 | $ | i 35,329 | ||||
Maturities of operating lease liabilities |
||||
2022 |
$ | i 2,147 | ||
2023 |
i 7,775 | |||
2024 |
i 6,962 | |||
2025 |
i 5,627 | |||
2026 |
i 4,977 | |||
Thereafter |
i 10,158 | |||
Total lease payments |
i 37,646 | |||
Less imputed interest |
( i 2,141 | ) | ||
Total operating lease liabilities |
$ | i 35,505 | ||
11. |
FINANCIAL INSTRUMENTS |
12. |
STOCKHOLDERS’ EQUITY |
Three Months Ended September 30, |
Nine Months Ended |
|||||||||||||||
2021 |
2022 |
2021 |
||||||||||||||
Numerator: |
||||||||||||||||
Net income available to common shareholders |
$ | i 14,423 | $ | i 73,795 | $ | i 174,549 | $ | i 183,705 | ||||||||
Denominator: |
||||||||||||||||
Basic weighted average shares outstanding |
i 110,140,496 | i 115,344,015 | i 112,609,684 | i 115,455,543 | ||||||||||||
Effect of dilutive securities: |
||||||||||||||||
Stock appreciation rights and options |
i 85,396 | i 171,514 | i 101,967 | i 190,680 | ||||||||||||
Restricted stock |
i 74,125 | i 110,231 | i 76,343 | i 121,203 | ||||||||||||
Diluted weighted average shares outstanding |
i 110,300,017 | i 115,625,760 | i 112,787,994 | i 115,767,426 | ||||||||||||
Basic earnings per share |
$ | i 0.13 | $ | i 0.64 | $ | i 1.55 | $ | i 1.59 | ||||||||
Diluted earnings per share |
$ | i 0.13 | $ | i 0.64 | $ | i 1.55 | $ | i 1.59 | ||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2021 |
2022 |
2021 |
||||||||||||||
Stock appreciation rights |
i 47,303 | i 14,409 | i 41,627 | i 12,206 | ||||||||||||
Restricted stock |
i 68,008 | i 1,844 | i 48,552 | i 8,308 |
13. |
REVENUE FROM CONTRACTS WITH CUSTOMERS |
Three Months Ended September 30, 2022 |
Reportable Segment |
|||||||||||
Trex Residential |
Trex Commercial |
Total |
||||||||||
Timing of Revenue Recognition and Type of Contract |
||||||||||||
Products transferred at a point in time and variable consideration contracts |
$ | i 177,776 | $ | — | $ | i 177,776 | ||||||
Products transferred over time and fixed price contracts |
— | i 10,696 | i 10,696 | |||||||||
$ | i 177,776 | $ | i 10,696 | $ | i 188,472 | |||||||
Three Months Ended September 30, 2021 |
Reportable Segment |
|||||||||||
Trex Residential |
Trex Commercial |
Total |
||||||||||
Timing of Revenue Recognition and Type of Contract |
||||||||||||
Products transferred at a point in time and variable consideration contracts |
$ | i 319,207 | $ | — | $ | i 319,207 | ||||||
Products transferred over time and fixed price contracts |
— | i 16,665 | i 16,665 | |||||||||
$ | i 319,207 | $ | i 16,665 | $ | i 335,872 | |||||||
Nine Months Ended September 30, 2022 |
Reportable Segment |
|||||||||||
Trex Residential |
Trex Commercial |
Total |
||||||||||
Timing of Revenue Recognition and Type of Contract |
||||||||||||
Products transferred at a point in time and variable consideration contracts |
$ | i 878,892 | $ | — | $ | i 878,892 | ||||||
Products transferred over time and fixed price contracts |
— | i 35,058 | i 35,058 | |||||||||
$ | i 878,892 | $ | i 35,058 | $ | i 913,950 | |||||||
Nine Months Ended September 30, 2021 |
Reportable Segment |
|||||||||||
Trex Residential |
Trex Commercial |
Total |
||||||||||
Timing of Revenue Recognition and Type of Contract |
||||||||||||
Products transferred at a point in time and variable consideration contracts |
$ | i 850,909 | $ | — | $ | i 850,909 | ||||||
Products transferred over time and fixed price contracts |
— | i 42,082 | i 42,082 | |||||||||
$ | i 850,909 | $ | i 42,082 | $ | i 892,991 | |||||||
14. |
STOCK-BASED COMPENSATION |
Stock Awards Granted |
Weighted-Average Grant Price Per Share |
|||||||
Time-based restricted stock units |
i 56,818 | $ | i 56.18 | |||||
Performance-based restricted stock units (a) |
i 72,152 | $ | i 76.14 | |||||
Stock appreciation rights |
i 32,971 | $ | i 82.01 |
(a) | Includes i 47,072 of target performance-based restricted stock unit awards granted during the nine months ended September 30, 2022, and adjustments of i 8,160,
i 11,684, and i 5,236
to grants due to the actual performance level achieved for restricted stock and restricted stock units awarded in 2021, 2020, and 2019, respectively. |
Nine Months Ended |
Nine Months Ended |
|||||||
Weighted-average fair value of grants |
$ | i 33.9 | $ | i 51.84 | ||||
Dividend yield |
i 0 | % | i 0 | % | ||||
Average risk-free interest rate |
i 1.9 | % | i 0.6 | % | ||||
Expected term (years) |
i 5 | i 5 | ||||||
Expected volatility |
i 44.85 | % | i 58.7 | % |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2021 |
2022 |
2021 |
||||||||||||||
Stock appreciation rights |
$ | i 196 | $ | i 94 | $ | i 547 | $ | i 352 | ||||||||
Time-based restricted stock and restricted stock units |
i 1,012 | i 692 | i 2,818 | i 2,133 | ||||||||||||
Performance-based restricted stock and restricted stock units |
( i 1,012 | ) | i 1,047 | ( i 5 | ) | i 3,487 | ||||||||||
Employee stock purchase plan |
i 52 | i 54 | i 171 | i 223 | ||||||||||||
Total stock-based compensation |
$ | i 248 | $ | i 1,887 | $ | i 3,531 | $ | i 6,195 | ||||||||
15. |
INCOME TAXES |
16. |
SEGMENT INFORMATION |
• | 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 designs, engineers, and markets modular and architectural railing and staging systems for the commercial and multi-family market, including sports stadiums and performing arts venues. Trex Commercial products are marketed to architects, specifiers, contractors, and others doing business within the commercial and multi-family market. |
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||||
Trex Residential |
Trex Commercial |
Total |
Trex Residential |
Trex Commercial |
Total |
|||||||||||||||||||
Net sales |
$ | i 177,776 | $ | i 10,696 | $ | i 188,472 | $ | i 319,207 | $ | i 16,665 | $ | i 335,872 | ||||||||||||
Net income (loss) |
$ | i 15,287 | $ | ( i 864 | ) | $ | i 14,423 | $ | i 72,603 | $ | i 1,192 | $ | i 73,795 | |||||||||||
EBITDA |
$ | i 31,692 | $ | ( i 876 | ) | $ | i 30,816 | $ | i 106,135 | $ | i 1,862 | $ | i 107,997 | |||||||||||
Depreciation and amortization |
$ | i 11,194 | $ | i 271 | $ | i 11,465 | $ | i 9,643 | $ | i 258 | $ | i 9,901 | ||||||||||||
Income tax expense (benefit) |
$ | i 5,211 | $ | ( i 283 | ) | $ | i 4,928 | $ | i 23,899 | $ | i 412 | $ | i 24,311 | |||||||||||
Capital expenditures |
$ | i 41,403 | $ | i 154 | $ | i 41,557 | $ | i 29,554 | $ | i 66 | $ | i 29,620 | ||||||||||||
Total assets |
$ | i 802,926 | $ | i 38,972 | $ | i 841,898 | $ | i 858,330 | $ | i 95,121 | $ | i 953,451 |
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||||
Trex Residential |
Trex Commercial |
Total |
Trex Residential |
Trex Commercial |
Total |
|||||||||||||||||||
Net income (loss) |
$ | i 15,287 | $ | ( i 864) | $ | i 14,423 | $ | i 72,603 | $ | i 1,192 | $ | i 73,795 | ||||||||||||
Interest income, net |
i — | — | i — | ( i 10) | — | ( i 10) | ||||||||||||||||||
Income tax expense (benefit) |
i 5,211 | ( i 283) | i 4,928 | i 23,899 | i 412 | i 24,311 | ||||||||||||||||||
Depreciation and amortization |
i 11,194 | i 271 | i 11,465 | i 9,643 | i 258 | i 9,901 | ||||||||||||||||||
EBITDA |
$ | i 31,692 | $ | ( i 876) | $ | i 30,816 | $ | i 106,135 | $ | i 1,862 | $ | i 107,997 | ||||||||||||
Nine Months Ended |
Nine Months Ended |
|||||||||||||||||||||||
Trex Residential |
Trex Commercial |
Total |
Trex Residential |
Trex Commercial |
Total |
|||||||||||||||||||
Net sales |
$ | i 878,892 | $ | i 35,058 | $ | i 913,950 | $ | i 850,909 | $ | i 42,082 | $ | i 892,991 | ||||||||||||
Net income (loss) |
$ | i 176,939 | $ | ( i 2,390) | $ | i 174,549 | $ | i 182,437 | $ | i 1,268 | $ | i 183,705 | ||||||||||||
EBITDA |
$ | i 267,725 | $ | ( i 2,344) | $ | i 265,381 | $ | i 268,107 | $ | i 2,437 | $ | i 270,544 | ||||||||||||
Depreciation and amortization |
$ | i 32,435 | $ | i 835 | $ | i 33,270 | $ | i 24,873 | $ | i 731 | $ | i 25,604 | ||||||||||||
Income tax expense (benefit) |
$ | i 58,454 | $ | ( i 789) | $ | i 57,665 | $ | i 60,797 | $ | i 438 | $ | i 61,235 | ||||||||||||
Capital expenditures |
$ | i 107,937 | $ | i 226 | $ | i 108,163 | $ | i 122,631 | $ | i 1,820 | $ | i 124,451 | ||||||||||||
Total assets |
$ | i 802,926 | $ | i 38,972 | $ | i 841,898 | $ | i 858,330 | $ | i 95,121 | $ | i 953,451 |
Nine Months Ended |
Nine Months Ended |
|||||||||||||||||||||||
Trex Residential |
Trex Commercial |
Total |
Trex Residential |
Trex Commercial |
Total |
|||||||||||||||||||
Net income (loss) |
$ | i 176,939 | $ | ( i 2,390) | $ | i 174,549 | $ | i 182,437 | $ | i 1,268 | $ | i 183,705 | ||||||||||||
Interest income, net |
( i 103) | — | ( i 103) | — | — | — | ||||||||||||||||||
Income tax expense (benefit) |
i 58,454 | ( i 789) | i 57,665 | i 60,797 | i 438 | i 61,235 | ||||||||||||||||||
Depreciation and amortization |
i 32,435 | i 835 | i 33,270 | i 24,873 | i 731 | i 25,604 | ||||||||||||||||||
EBITDA |
$ | i 267,725 | $ | ( i 2,344) | $ | i 265,381 | $ | i 268,107 | $ | i 2,437 | $ | i 270,544 | ||||||||||||
17. |
SEASONALITY |
18. |
COMMITMENTS AND CONTINGENCIES |
Nine Months Ended September 30, 2022 |
||||||||||||
Surface Flaking |
Other Residential |
Total |
||||||||||
Beginning balance, January 1 |
$ | i 18,542 | $ | i 10,053 | $ | i 28,595 | ||||||
Provisions and changes in estimates |
— | i 3,098 | i 3,098 | |||||||||
Settlements made during the period |
( i 2,243 | ) | ( i 1,901 | ) | ( i 4,144 | ) | ||||||
Ending balance, September 30 |
$ | i 16,299 | $ | i 11,250 | $ | i 27,549 | ||||||
Nine Months Ended September 30, 2021 |
||||||||||||
Surface Flaking |
Other Residential |
Total |
||||||||||
Beginning balance, January 1 |
$ | i 21,325 | $ | i 8,148 | $ | i 29,473 | ||||||
Provisions and changes in estimates |
— | i 3,743 | i 3,743 | |||||||||
Settlements made during the period |
( i 2,315 | ) | ( i 1,539 | ) | ( i 3,854 | ) | ||||||
Ending balance, September 30 |
$ | i 19,010 | $ | i 10,352 | $ | i 29,362 | ||||||
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Operations and Products |
• | Highlights and Financial Performance Quarter-to-Date Year-to-Date |
• | Results of Operations |
• | Liquidity and Capital Resources |
Decking and Accessories |
Our principal decking products are Trex Transcend ® Lineage™ , Trex Transcend® , Trex Select® ® . In addition, our Trex Transcend decking product can also be used as cladding. Our high-performance, low-maintenance, eco-friendly composite decking products are comprised of a blend of 95 percent reclaimed wood fibers and recycled polyethylene film and feature a protective polymer shell for enhanced protection against fading, staining, mold and scratching.We also offer accessories to our decking products, including Trex Hideaway ® and Trex DeckLighting™ , an outdoor lighting system. Trex DeckLighting is a line of energy-efficient LED
dimmable deck lighting, which is designed for use on posts, floors and steps. The line includes a post cap light, deck rail light, riser light and a recessed deck light. | |
Railing |
Our residential railing products are Trex Transcend ® Railing, Trex Select® Railing, and Trex Signature® aluminum railing. Trex Transcend Railing, made from approximately 40 percent recycled content, is available in the colors of Trex Transcend decking and finishes that make it appropriate for use with Trex decking products as well as other decking materials, which we believe enhances the sales prospects of our railing products. Trex Select Railing, made from approximately 40 percent recycled content, is offered in a white finish and is ideal for consumers who desire a simple clean finished look for their deck. Trex Signature aluminum railing, made from a minimum of 40 percent recycled content, is available in three colors and designed for consumers who want a sleek, contemporary look. | |
Fencing |
Our Trex Seclusions ® fencing product is offered through two specialty distributors. This product consists of structural posts, bottom rail, pickets, top rail and decorative post caps. |
Architectural Railing Systems |
Our architectural railing systems are pre-engineered guardrails with options to accommodate styles ranging from classic and elegant wood top rail combined with sleek stainless components and glass infill, to modern and minimalist stainless cable and rod infill choices. Trex Commercial can also design, engineer and manufacture custom railing systems tailored to the customer’s specific material, style and finish. Many railing styles are achievable, including glass, mesh, perforated railing and cable railing. | |
Aluminum Railing Systems |
Our Trex Signature aluminum railings, made from a minimum of 40 percent recycled content, are a versatile, cost-effective and low-maintenance choice for a variety of interior and exterior applications that we believe blend form, function and style. Its straightforward, unobtrusive design features traditional balusters and contemporary vertical rods, and can be installed with continuously graspable rail options for added safety, comfort and functionality. The strength and durability of Trex Signature railings make them a choice for any commercial setting, from high-rise condominiums and resort projects to public walkways and balconies. Aluminum railings come in a variety of colors and stock lengths to accommodate project needs. | |
Staging Equipment and Accessories |
Our advanced modular, lightweight custom staging systems, including portable platforms and other custom applications, provide solutions for facilities and venues with custom needs. Our modular stage equipment is designed to appear seamless, feel permanent, and maximize the functionality of the space. |
Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
Net sales |
$ | 188,472 | $ | 335,872 | $ | 913,950 | $ | 892,991 | ||||||||
Gross profit |
$ | 46,208 | $ | 128,250 | $ | 338,498 | $ | 342,323 | ||||||||
Net income |
$ | 14,423 | $ | 73,795 | $ | 174,549 | $ | 183,705 | ||||||||
Diluted earnings per share |
$ | 0.13 | $ | 0.64 | $ | 1.55 | $ | 1.59 | ||||||||
EBITDA |
$ | 30,816 | $ | 107,997 | $ | 265,381 | $ | 270,544 |
Three Months Ended September 30, |
$ Change |
% Change |
||||||||||||||
2022 |
2021 |
|||||||||||||||
(dollars in thousands) |
||||||||||||||||
Total net sales |
$ | 188,472 | $ | 335,872 | $ | (147,400 | ) | (43.9 | )% | |||||||
Trex Residential net sales |
$ | 177,776 | $ | 319,207 | $ | (141,431 | ) | (44.3 | )% | |||||||
Trex Commercial net sales |
$ | 10,696 | $ | 16,665 | $ | (5,969 | ) | (35.8 | )% |
Three Months Ended September 30, |
$ Change |
% Change |
||||||||||||||
2022 |
2021 |
|||||||||||||||
(dollars in thousands) |
||||||||||||||||
Cost of sales |
$ | 142,264 | $ | 207,622 | $ | (65,358 | ) | (31.5 | )% | |||||||
% of total net sales |
75.5 | % | 61.8 | % | ||||||||||||
Gross profit |
$ | 46,208 | $ | 128,250 | $ | (82,042 | ) | (64.0 | )% | |||||||
Gross margin |
24.5 | % | 38.2 | % |
Three Months Ended September 30, |
$ Change |
% Change |
||||||||||||||
2022 |
2021 |
|||||||||||||||
(dollars in thousands) |
||||||||||||||||
Selling, general and administrative expenses |
$ | 26,857 | $ | 33,931 | $ | (7,074 | ) | (20.8 | )% | |||||||
% of total net sales |
14.2 | % | 10.1 | % |
Three Months Ended September 30, |
$ Change |
% Change |
||||||||||||||
2022 |
2021 |
|||||||||||||||
(dollars in thousands) |
||||||||||||||||
Provision for income taxes |
$ | 4,928 | $ | 24,311 | $ | (19,383 | ) | (79.7 | )% | |||||||
Effective tax rate |
25.5 | % | 24.8 | % |
Three Months Ended September 30, 2022 |
||||||||||||
Trex Residential |
Trex Commercial |
Total |
||||||||||
Net income (loss) |
$ | 15,287 | $ | (864 | ) | $ | 14,423 | |||||
Interest (income) expense, net |
— | — | — | |||||||||
Income tax expense (benefit) |
5,211 | (283 | ) | 4,928 | ||||||||
Depreciation and amortization |
11,194 | 271 | 11,465 | |||||||||
|
|
|
|
|
|
|||||||
EBITDA |
$ | 31,692 | $ | (876 | ) | $ | 30,816 | |||||
|
|
|
|
|
|
|||||||
Net income as a percentage of net sales |
7.7 | % | ||||||||||
|
|
|
|
|
|
|||||||
EBITDA as a percentage of net sales (EBITDA margin) |
16.4 | % | ||||||||||
|
|
|
|
|
|
Three Months Ended September 30, 2021 |
||||||||||||
Trex Residential |
Trex Commercial |
Total |
||||||||||
Net income |
$ | 72,603 | $ | 1,192 | $ | 73,795 | ||||||
Interest (income), net |
(10 | ) | — | (10 | ) | |||||||
Income tax expense |
23,899 | 412 | 24,311 | |||||||||
Depreciation and amortization |
9,643 | 258 | 9,901 | |||||||||
|
|
|
|
|
|
|||||||
EBITDA |
$ | 106,135 | $ | 1,862 | $ | 107,997 | ||||||
|
|
|
|
|
|
|||||||
Net income as a percentage of net sales |
22.0 | % | ||||||||||
|
|
|
|
|
|
|||||||
EBITDA as a percentage of net sales (EBITDA margin) |
32.2 | % | ||||||||||
|
|
|
|
|
|
Three Months Ended September 30, |
$ Change |
% Change |
||||||||||||||
2022 |
2021 |
|||||||||||||||
(dollars in thousands) |
||||||||||||||||
Total EBITDA |
$ | 30,816 | $ | 107,997 | $ | (77,181 | ) | (71.5 | )% | |||||||
Trex Residential EBITDA |
$ | 31,692 | $ | 106,135 | $ | (74,443 | ) | (70.1 | )% | |||||||
Trex Commercial EBITDA |
$ | (876 | ) | $ | 1,862 | $ | (2,738 | ) | (147.0 | )% |
1 |
EBITDA represents net income before interest, income taxes, depreciation and amortization. EBITDA is not a measurement of financial performance under accounting principles generally accepted in the United States (GAAP). We have included data with respect to EBITDA and EBITDA as a percentage of net sales (EBITDA margin) because management believes it facilitates performance comparison between the Company and its competitors, and management evaluates the performance of its reportable segments using several measures, including EBITDA and EBITDA margin. Management considers EBITDA to be an important supplemental indicator of our core operating performance because it eliminates interest, income taxes, and depreciation and amortization charges to net income or loss. In relation to competitors, EBITDA and EBITDA margin eliminate differences among companies in
capitalization and tax structures, capital investment cycles and ages of related assets. For these reasons, management believes that EBITDA and EBITDA margin provide important information regarding the operating performance of the Company and its reportable segments. 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. |
Nine Months Ended September 30, |
$ Change |
% Change |
||||||||||||||
2022 |
2021 |
|||||||||||||||
(dollars in thousands) |
||||||||||||||||
Total net sales |
$ | 913,950 | $ | 892,991 | $ | 20,959 | 2.3 | % | ||||||||
Trex Residential net sales |
$ | 878,892 | $ | 850,909 | $ | 27,983 | 3.3 | % | ||||||||
Trex Commercial net sales |
$ | 35,058 | $ | 42,082 | $ | (7,024 | ) | (16.7 | )% |
Nine Months Ended September 30, |
$ Change |
% Change |
||||||||||||||
2022 |
2021 |
|||||||||||||||
(dollars in thousands) |
||||||||||||||||
Cost of sales |
$ | 575,452 | $ | 550,668 | $ | 24,784 | 4.5 | % | ||||||||
% of total net sales |
63.0 | % | 61.7 | % | ||||||||||||
Gross profit |
$ | 338,498 | $ | 342,323 | $ | (3,825 | ) | (1.1 | )% | |||||||
Gross margin |
37.0 | % | 38.3 | % |
Nine Months Ended September 30, |
$ Change |
% Change |
||||||||||||||
2022 |
2021 |
|||||||||||||||
(dollars in thousands) |
||||||||||||||||
Selling, general and administrative expenses |
$ | 106,387 | $ | 102,880 | $ | 3,507 | 3.4 | % | ||||||||
% of total net sales |
11.6 | % | 11.5 | % |
Nine Months Ended September 30, |
$ Change |
% Change |
||||||||||||||
2022 |
2021 |
|||||||||||||||
(dollars in thousands) |
||||||||||||||||
Provision for income taxes |
$ | 57,665 | $ | 61,235 | $ | (3,570 | ) | 5.8 | % | |||||||
Effective tax rate |
24.8 | % | 25.0 | % |
Nine Months Ended September 30, 2022 |
||||||||||||
Trex Residential |
Trex Commercial |
Total |
||||||||||
Net income (loss) |
$ | 176,939 | $ | (2,390 | ) | $ | 174,549 | |||||
Interest income, net |
(103 | ) | — | (103 | ) | |||||||
Income tax expense (benefit) |
58,454 | (789 | ) | 57,665 | ||||||||
Depreciation and amortization |
32,435 | 835 | 33,270 | |||||||||
|
|
|
|
|
|
|||||||
EBITDA |
$ | 267,725 | $ | (2,344 | ) | $ | 265,381 | |||||
|
|
|
|
|
|
|||||||
Net income as a percentage of net sales |
19.1 | % | ||||||||||
|
|
|
|
|
|
|||||||
EBITDA as a percentage of net sales (EBITDA margin) |
29.0 | % | ||||||||||
|
|
|
|
|
|
Nine Months Ended September 30, 2021 |
||||||||||||
Trex Residential |
Trex Commercial |
Total |
||||||||||
Net income |
$ | 182,437 | $ | 1,268 | $ | 183,705 | ||||||
Interest expense, net |
— | — | — | |||||||||
Income tax expense |
60,797 | 438 | 61,235 | |||||||||
Depreciation and amortization |
24,873 | 731 | 25,604 | |||||||||
|
|
|
|
|
|
|||||||
EBITDA |
$ | 268,107 | $ | 2,437 | $ | 270,544 | ||||||
|
|
|
|
|
|
|||||||
Net income as a percentage of net sales |
20.6 | % | ||||||||||
|
|
|
|
|
|
|||||||
EBITDA as a percentage of net sales (EBITDA margin) |
30.3 | % | ||||||||||
|
|
|
|
|
|
Nine Months Ended September 30, |
$ Change |
% Change |
||||||||||||||
2022 |
2021 |
|||||||||||||||
(dollars in thousands) |
||||||||||||||||
Total EBITDA |
$ | 265,381 | $ | 270,544 | $ | (5,163 | ) | (1.9 | )% | |||||||
Trex Residential EBITDA |
$ | 267,725 | $ | 268,107 | $ | (382 | ) | (0.1 | )% | |||||||
Trex Commercial EBITDA |
$ | (2,344 | ) | $ | 2,437 | $ | (4,781 | ) | (196.2 | )% |
2 |
EBITDA represents net income before interest, income taxes, depreciation and amortization. EBITDA is not a measurement of financial performance under accounting principles generally accepted in the United States (GAAP). We have included data with respect to EBITDA and EBITDA as a percentage of net sales (EBITDA margin) because management believes it facilitates performance comparison between the Company and its competitors, and management evaluates the performance of its reportable segments using several measures, including EBITDA and EBITDA margin. Management considers EBITDA to be an important supplemental indicator of our core operating performance because it eliminates interest, income taxes, and depreciation and amortization charges to net income or loss. In relation to competitors, EBITDA and EBITDA margin eliminate differences among companies in
capitalization and tax structures, capital investment cycles and ages of related assets. For these reasons, management believes that EBITDA and EBITDA margin provide important information regarding the operating performance of the Company and its reportable segments. 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. |
Nine Months Ended September 30, |
||||||||
2021 |
||||||||
Net cash provided by operating activities |
$ | 244,393 | $ | 113,059 | ||||
Net cash used in investing activities |
(108,118 | ) | (123,096 | ) | ||||
Net cash used in financing activities |
(271,443 | ) | (57,622 | ) | ||||
|
|
|
|
|||||
Net decrease in cash and cash equivalents |
$ | (135,168 | ) | $ | (67,659 | ) | ||
|
|
|
|
Nine Months Ended September 30, |
||||||||
2021 |
||||||||
Claims open, beginning of period |
1,759 | 1,799 | ||||||
Claims received (1) |
507 | 788 | ||||||
Claims resolved (2) |
(506 | ) | (785 | ) | ||||
|
|
|
|
|||||
Claims open, end of period |
1,760 | 1,802 | ||||||
|
|
|
|
|||||
Average cost per claim (3) |
$ | 5,200 | $ | 3,492 |
(1) | Claims received include new claims received or identified during the period. |
(2) | Claims resolved include all claims settled with or without payment and closed during the period. |
(3) | Average cost per claim represents the average settlement cost of claims closed with payment during the period. |
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
Item 4. |
Controls and Procedures |
Item 1. |
Legal Proceedings |
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
Period |
(a) Total Number of Shares (or Units) Purchased (1) |
(b) Average Price Paid per Share (or Unit) ($) |
(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (2) |
(d) Maximum number of Shares (or Units) that May Yet Be Purchased Under the Plan or Program |
||||||||||||
1,709,785 | $ | 58.47 | 1,709,785 | 2,629,558 | ||||||||||||
891 | $ | 64.51 | 891 | 2,628,667 | ||||||||||||
57 | $ | 47.40 | — | 2,628,667 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Quarterly period ended September 30, 2022 |
1,710,733 | 1,710,676 | ||||||||||||||
|
|
|
|
(1) | During the three months ended September 30, 2022, 57 shares were withheld by, or delivered to, the Company pursuant to provisions in agreements with recipients of restricted stock granted under the Trex 2014 Stock Incentive Plan allowing the Company to withhold, or the recipient to deliver to the Company, the number of shares having the fair value equal to tax withholding due. |
(2) | On February 16, 2018, the Trex Board of Directors authorized a common stock repurchase program of up to 11.6 million shares of its outstanding common stock (Stock Repurchase Program). The Stock Repurchase Program was publicly announced on February 21, 2018. The Company purchased 1.7 million shares of its common stock under the Stock Repurchase Program during the three months ended September 30, 2022. |
Item 5. |
Other Information |
Item 6. |
Exhibits |
TREX COMPANY, INC. | ||||||
Date: October 31, 2022 | By: | /s/ Dennis C. Schemm | ||||
Dennis C. Schemm | ||||||
Senior Vice President and Chief Financial Officer | ||||||
( Duly Authorized Officer and Principal Financial Officer |
Exhibit Number |
Description |
Form |
Exhibit |
Filing Date |
File No. |
|||||||||||||
3.1 | Restated Certificate of Incorporation of Trex Company, Inc. dated July 28, 2021. | 10-Q |
3.6 | August 2, 2021 | ||||||||||||||
3.2 | First Certificate of Amendment to the Restated Certificate of Incorporation of Trex Company, Inc. dated May 5, 2022 | 10-Q |
3.2 | May 9, 2022 | ||||||||||||||
3.3 | Amended and Restated By-Laws of the Company. | 8-K |
3.2 | May 1, 2019 | ||||||||||||||
10.1 | AIA document A141 – 2014 Agreement dated July 7, 2022 by and between Trex Company, Inc. and Gray Construction, Inc. | 8-K |
10.1 | July 12, 2022 | ||||||||||||||
31.1* | Certification of Chief Executive Officer of the Company pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. | |||||||||||||||||
31.2* | Certification of Chief Financial Officer of the Company pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. | |||||||||||||||||
32*** | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350). | |||||||||||||||||
101.INS* | Inline XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |||||||||||||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||||||||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||||||||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||||||||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||||||||||||
104.1 | Cover Page Interactive Data File—The cover page interactive data file does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. |
* |
*** | Furnished herewith. |
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
5/18/27 | ||||
11/5/24 | ||||
12/31/22 | ||||
Filed on: | 10/31/22 | 8-K | ||
10/17/22 | ||||
For Period end: | 9/30/22 | |||
9/1/22 | ||||
8/31/22 | ||||
8/1/22 | ||||
7/31/22 | ||||
7/12/22 | 8-K | |||
7/1/22 | 4 | |||
6/30/22 | 10-Q | |||
5/26/22 | ||||
5/18/22 | 8-K | |||
5/9/22 | 10-Q, 8-K, 8-K/A | |||
3/31/22 | 10-Q | |||
12/31/21 | 10-K | |||
12/15/21 | ||||
9/30/21 | 10-Q | |||
8/2/21 | 10-Q, 8-K, 8-K/A | |||
6/30/21 | 10-Q | |||
3/31/21 | 10-Q | |||
12/31/20 | 10-K | |||
5/26/20 | 8-K | |||
3/12/20 | ||||
11/5/19 | 8-K | |||
5/1/19 | 4, 8-K, DEF 14A, PRE 14A | |||
2/21/18 | 10-K, 8-K | |||
2/16/18 | 4 | |||
1/12/16 | 8-K | |||
9/4/98 | ||||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 7/12/22 Trex Co. Inc. 8-K:1,9 7/07/22 11:13M Donnelley … Solutions/FA 5/09/22 Trex Co. Inc. 10-Q 3/31/22 75:4.4M Donnelley … Solutions/FA 8/02/21 Trex Co. Inc. 10-Q 6/30/21 75:5.2M Donnelley … Solutions/FA 5/01/19 Trex Co. Inc. 8-K:5,9 5/01/19 3:108K Donnelley … Solutions/FA |