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Trex Company Reports First Quarter 2020 Results
–Robust Demand Across Decking Product Lines–
– Significant Margin Expansion Driven by Production Improvements and Expense Control–
–Brand Strength, Cost-Effective Manufacturing and a Strong Balance Sheet Position the Company for Long-Term Growth–
–Second Quarter Sales Estimate of $180 million to $190 million–
First Quarter Highlights
- Consolidated net sales increased 12% to $200 million
- Consolidated gross margin of 44.8%, up 620 basis points
- EBITDA margin was 29.4%, up 570 basis points
- Consolidated earnings per share of $0.73, up 35%
WINCHESTER, Va.--(BUSINESS WIRE)--May 4, 2020--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, and a leading national provider of custom-engineered railing systems, today reported financial results for the first quarter ended March 31, 2020.
First Quarter 2020 Results
Consolidated net sales for the first quarter of 2020 were $200 million, 12% ahead of the comparable period in 2019. Trex Residential Products net sales increased 13% to $187 million, and Trex Commercial Products contributed an additional $14 million. Consolidated gross margin expanded by 620 basis points to 44.8%, representing gross margins of 45.6% and 33.6%, respectively, for Trex Residential Products and Trex Commercial Products. SG&A was $35 million, or 17.3% of net sales. EBITDA margin expanded to 29.4% from 23.7%. Net income for the first quarter of 2020 was $42 million, or $0.73 per diluted share, compared to $32 million, or $0.54 per diluted share reported for last year’s first quarter.
“First quarter 2020 results reflected continued robust demand for Trex residential decking and railing products. We reported strong year-over-year and sequential increases in gross margin due to continuing production improvements and the non-recurrence of prior year new product startup expenses. Additionally, as Trex Residential’s gross margin returned to more normalized levels, Trex Commercial’s gross margin improved considerably, due primarily to the roll-off of prior year lower margin contracts, favorable mix and improved execution.
The following information was filed by Trex Co Inc (TREX) on Monday, May 4, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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