Exhibit 99.1

Trex Company Reports Second Quarter 2017 Results

– Another Quarter of Record Revenue and Net Income –

–Trex Enters Commercial Market with Acquisition of SC Company –

Second Quarter Highlights

--Net Sales increased 8% to record $158 million

--Gross Margin expanded 370 basis points to 45.6%

--Diluted EPS increased 21% to $0.97

Third Quarter Revenue Guidance: $126 million, Inclusive of $9 million Contribution from SC Company

WINCHESTER, Va.--(BUSINESS WIRE)--July 31, 2017--Trex Company, Inc. (NYSE:TREX), the world’s number-one brand of decking and railing and leader in high-performance, low-maintenance outdoor living products, today reported financial results for the second quarter ended June 30, 2017.

Second Quarter 2017 Results

Net sales for the second quarter of 2017 reached record $157.9 million, 8% above the $146.5 million reported in last year’s second quarter. Gross margin was 45.6%, a 370 basis point expansion from the 41.9% reported in the second quarter of 2016. The Company reported net income of $28.8 million, or $0.97 per diluted share, representing growth of 22% and 21%, respectively, from the $23.7 million, or $0.80 per diluted share, reported in last year’s second quarter. 2016 figures have been adjusted to reflect the adoption of the new FASB standard related to deduction of stock compensation.


“In the second quarter, we continued to execute effectively across the organization, building brand recognition that converted into market share gains and implementing programs and processes that lowered production costs. This resulted in another period of record performance for Trex, in which earnings per share increased 21% from last year’s record levels on 8% revenue growth,” commented James E. Cline, President and Chief Executive Officer.

“Trex core decking and railing product sales increased 10% in the second quarter, as we sold significantly less excess polyethylene, using it internally to accommodate strong demand. Our analytics indicate that the marketing campaigns we launched in early 2016 to target the large wood decking market continue to gain traction in the replacement market as well as with consumers seeking out 'green building' alternatives. At the same time, we are investing in R&D to remain a leader in product innovation, and are funding fast-return projects that drive operating leverage.”

First Half 2017 Results

Net sales for the first half of 2017 were $302.7 million, 9% above the $278.1 million reported for the comparable period in 2016. First half 2017 gross margin was 45.3%, 250 basis points greater than the 42.8% reported in the first half of 2016. Net income for the first six months of 2017 was $56.7 million, or $1.92 per diluted share, up 20% year-over-year. Net income of $47.4 million, or $1.60 per diluted share for the first six months of 2016 was adjusted to reflect the adoption of the new FASB standard related to deduction of stock compensation.

Summary and Outlook

First half results have positioned Trex for another strong year in 2017. Market dynamics are favorable, and our ongoing investments in branding, marketing, R&D and production efficiencies are expected to continue to result in meaningful operating leverage,” Mr. Cline noted.

“We are very pleased to have completed the acquisition of SC Company that we announced today and is detailed in a separate release. SC Company has successfully built a leadership position in the large, fragmented commercial and architectural railing and staging markets through a commitment to quality, deep engineering capabilities and innovative design.

“For the 2017 third quarter, we expect our consolidated revenues to be $126 million, comprised of $117 million from our legacy Trex operations and a two month revenue contribution from SC Company, which is expected to amount to approximately $9 million,” Mr. Cline said.

Details with respect to the Company’s acquisition of SC Company are contained in a separate release issued today, simultaneously with this earnings release.

Second Quarter 2017 Conference Call and Webcast Information

Trex will hold a conference call to discuss its second-quarter 2017 results and other corporate matters on Monday, July 31st, 2017 at 5:00 PM ET. To participate on the day of the call, dial 1-888-349-0106 or internationally, 1-412-902-0131 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 http://investor.trex.com/phoenix.zhtml?c=86979&p=irol-irhome. For those who cannot listen to the live broadcast, an audio replay of the conference call will be available on the Trex website for 30 days.


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 the extent of market acceptance of the Company's 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 weather-related demand fluctuations on inventory levels in the distribution channel and sales of the Company’s products; the Company's ability to obtain raw materials at acceptable prices; the Company's ability to maintain product quality and product performance at an acceptable cost; the level of expenses associated with product replacement and consumer relations expenses related to product quality; and the highly competitive markets in which the Company operates. 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.

About Trex Company

Trex Company is the world’s largest manufacturer of high performance wood-alternative decking and railing, with more than 25 years of product experience. Stocked in more than 6,700 retail locations worldwide, Trex outdoor living products offer a wide range of style options with fewer ongoing maintenance requirements than wood, as well as a truly environmentally responsible choice. For more information, visit trex.com.


       
TREX COMPANY, INC.
 
Condensed Consolidated Statements of Comprehensive Income
(In thousands, except share and per share data)
(Unaudited)
 
 
Three Months Ended

June 30,

Six Months Ended

June 30,

2017 2016 2017 2016
 
 
Net sales $ 157,941 $ 146,450 $ 302,747 $ 278,126
 
Cost of sales   85,927   85,040   165,563   159,089
 
Gross profit 72,014 61,410 137,184 119,037
 
Selling, general and administrative expenses   27,221   24,795   50,490   45,407
 
Income from operations 44,793 36,615 86,694 73,630
 
Interest expense, net   251   458   456   1,030
 
Income before income taxes 44,542 36,157 86,238 72,600
 
Provision for income taxes   15,760   12,432   29,506   25,170
 
Net income $ 28,782 $ 23,725 $ 56,732 $ 47,430
 
Basic earnings per common share $ 0.98 $ 0.81 $ 1.93 $ 1.61
 
Basic weighted average common shares outstanding   29,389,458   29,264,362   29,376,407   29,481,042
 
Diluted earnings per common share $ 0.97 $ 0.80 $ 1.92 $ 1.60
 
Diluted weighted average common shares outstanding   29,550,418   29,477,870   29,555,985   29,694,081
 
Comprehensive income $ 28,782 $ 23,725 $ 56,732 $ 47,430
 

 
   
TREX COMPANY, INC.
 
Condensed Consolidated Balance Sheets
(In thousands, except share data)
 
 
June 30, December 31,
  2017     2016  
 
ASSETS (Unaudited)
Current assets:
 
Cash and cash equivalents $ 8,576 $ 18,664
Accounts receivable, net 129,881 48,039
Inventories 26,941 28,546
Prepaid expenses and other assets   2,675     10,400  
Total current assets 168,073 105,649
Property, plant and equipment, net 101,620 103,286
Goodwill and other intangibles 10,523 10,523
Other assets   2,313     1,972  
Total assets $ 282,529   $ 221,430  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
 
Accounts payable $ 15,137 $ 10,767
Accrued expenses and other liabilities 36,271 34,693
Accrued warranty 5,925 5,925
Line of credit        
Total current liabilities 57,333 51,385
Deferred income taxes 894 894
Non-current accrued warranty 30,735 31,767
Other long-term liabilities   2,880     3,223  
Total liabilities   91,842     87,269  
Stockholders’ equity:
 
Preferred stock, $0.01 par value, 3,000,000 shares authorized; none issued and outstanding
Common stock, $0.01 par value, 80,000,000 shares authorized; 34,899,586 and 34,894,233 shares issued and 29,405,905 and 29,400,552 shares outstanding at June 30, 2017 and December 31, 2016, respectively 349 349
Additional paid-in capital 119,876 120,082
Retained earnings 243,974 187,242
Treasury stock, at cost, 5,493,681 shares at June 30, 2017 and December 31, 2016, respectively   (173,512 )   (173,512 )
Total stockholders’ equity   190,687     134,161  
Total liabilities and stockholders’ equity $ 282,529   $ 221,430  
 

   
TREX COMPANY, INC.
 
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
 
Six Months Ended June 30,
  2017     2016  
 
Operating Activities
Net income $ 56,732 $ 47,430

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

Depreciation and amortization 7,513 7,417
Stock-based compensation 2,876 2,945
Loss (Gain) on disposal of property, plant and equipment 1,343 (204 )
Other non-cash adjustments (405 ) (285 )
Changes in operating assets and liabilities:
Accounts receivable (81,842 ) (48,268 )
Inventories 1,604 4,348
Prepaid expenses and other assets 3,701 (67 )
Accounts payable 4,370 (161 )
Accrued expenses and other liabilities (5,680 ) (7,901 )
Income taxes receivable/payable   9,907     11,188  
 
Net cash provided by operating activities   119     16,442  
 
Investing Activities
Expenditures for property, plant and equipment (7,125 ) (5,182 )
Proceeds from sales of property, plant and equipment   -     4,349  
 
Net cash used in investing activities   (7,125 )   (833 )
 
Financing Activities
Borrowings under line of credit 163,000 194,000
Principal payments under line of credit (163,000 ) (158,000 )
Repurchases of common stock (3,271 ) (54,703 )
Financing costs - (485 )
Proceeds from employee stock purchase and option plans   189     137  
 
Net cash used in financing activities   (3,082 )   (19,051 )
 
Net decrease in cash and cash equivalents (10,088 ) (3,442 )
Cash and cash equivalents at beginning of period   18,664     5,995  
 
Cash and cash equivalents at end of period $ 8,576   $ 2,553  
 
Supplemental Disclosure:
Cash paid for interest $ 364 $ 696
Cash paid for income taxes, net $ 19,600 $ 13,982

CONTACT:
Trex Company, Inc.
Bryan Fairbanks
Vice President & CFO
540-542-6300
or
MBS Value Partners
Lynn Morgen/Viktoriia Nakhla
212-750-5800


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