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Trex Company Announces Third-Quarter 2015 Results

The following excerpt is from the company's SEC filing.

Net Sales of $94.0 Million

$45 Million Shares Repurchased

New Repurchase Program Authorized

4Q15 Revenue Guidance of $85 Million

WINCHESTER, Va.--(BUSINESS WIRE)--October 27, 2015--Trex Company, Inc. (NYSE:TREX), the world’s largest manufacturer of wood-alternative decking and railing products, today announced financial results for the third quarter ended September 30, 2015.

Net sales for the third quarter of 2015 totaled $94.0 million compared to net sales of $95.5 million for the 2014 period. The Company reported net income of $3.7 million, or $0.12 per diluted share, for the third quarter of 2015 compared to net income of $8.9 million, or $0.28 per diluted share, for the prior-year period. During the 2015 quarter, the Company recognized $7.0 million of non-cash charges related to its warranty reserves, which negatively impacted earnings per share by $0.14. Excluding these charges, earnings for the 2015 period were $0.26 per diluted share.

For the nine months ended September 30, 2015, the Company reported net sales of $351.6 million compared to net sales of $317.5 million for the prior-year period. The Company reported net income of $40.0 million, or $1.25 per diluted share, for the first nine months of 2015 compared to net income of $36.4 million, or $1.10 per diluted share, for the 2014 period. The Company recognized $7.8 million of non-cash charges related to its warranty reserves during the 2015 period, negatively impacting earnings per share by $0.15. Excluding these charges, earnings for the 2015 period were $1.40 per diluted share.

President and CEO James E. Cline commented, “Third-quarter revenue was slightly lower than last year, reflecting last year’s unusually strong quarter, caused by a late start to the decking season after a long and severe winter. For the first nine months of 2015 our net sales increased 11% versus last year’s period as we continue to outpace the market and advanced our industry-leading market share.

“During the quarter we enhanced the Company’s capital structure through the repurchase of $45 million in shares. Our strong free cash flow generation has enabled us to purchase a total of $120 million of shares since 2013. I am pleased to announce that the Board of Directors has approved a new 3.15 million share repurchase program.

“For the fourth quarter, we expect net sales of approximately $85 million, which represents a 15% increase over last year’s period. This will also set a new Company record for annual revenue at approximately $437 million and 11% growth over fiscal year 2014.”

Share Repurchase Programs

During the third quarter of 2015, the Company repurchased 1.1 million shares of its common stock at an average cost of $39.85 per share, for an aggregate purchase price of $45.2 million. Subsequent to these repurchases, the Company’s Board of Directors approved a new share repurchase program under which the Company may repurchase up to 3,150,000 shares of Trex’s outstanding common stock through December 31, 2016. The Board also approved management expanding the Company’s credit facility by $100 million to support the repurchase program. There is no guarantee as to the exact number of shares that will be...


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