Industry News
Trex Company Reports Q4 Results
6 years, 2 months ago Posted in: Industry News 0

While losing in Q4, the loss was less than expected.

WINCHESTER, Va., Feb 28, 2011– Trex Company, Inc. (NYSE: TREX), the world’s largest manufacturer of wood-alternative decking and railing products, today announced financial results for the fourth quarter ended December 31, 2010.

In the press release from Trex, the following points were highlighted:

  • Q4 2010 net sales of $75.3 million versus $51.2 million for Q4 2009 (up 47%)
  • Q42010  net loss of $0.5 million ($0.03 per diluted share) versus $0.3 million ($0.02 per diluted share) in 2009
  • Q4 2010, recognized $4.1 million of unusual charges, which included a $5.2 million increase to the Company’s warranty reserve for decking material manufactured at its Nevada plant prior to mid-2006 offset by a $1.1 million reduction to supply contract-related charges taken in prior 2010 quarters.
  • Q4 2010 net income: $3.6 million ($0.23 per diluted share) before adjustments versus net loss of $5.4 million ($0.36 per diluted share) in Q4 2009.

For the fiscal year, Trex reported the following information:

  • 2010 net sales of $317.7 million versus $272.3 million for 2009 (up 17%).
  • 2010 net loss $10.1 million ($0.66 per diluted share) versus net loss of $16.9 million ($1.12 per diluted share) for 2009.
  • Reorganized $21.3 million of unusual charges during 2010 consisting of a $15.0 million increase to its warranty reserve for decking material, a $2.4 million charge related to its joint venture for recycling waste polyethylene in Spain and $3.9 million related to two supply contracts. Before giving effect to these charges, net income for 2010 totaled $11.3 million, or $0.72 per diluted share. Before giving effect to the $23.3 million non-cash impairment charge related to the Company’s Olive Branch facility recognized during the 2009 third quarter and the $5.1 million tax loss carry back described above, the Company had net income of $1.3 million, or $0.09 per diluted share, for 2009.

Chairman, President and CEO Ronald W. Kaplan commented, “Sales broke our fourth quarter record as both distributors and dealers responded enthusiastically to our products, sales programs and pricing strategy. Our Trex Transcend(R) collection contributed strongly to sales, and is now widely recognized as the number-one brand of high-performance decking and railing. With its unprecedented combination of performance and aesthetics, Transcend has been the game-changer we expected and has rapidly advanced our strategy for gaining market share.

“I’m also pleased that we made progress on the international front, completing our first direct to retail sales overseas. We also signed our third licensing partnership, with CurveIt, LLC, which will offer Trex CustomCurveTM, a solution to heating and bending Trex products on the jobsite. Like our Trex RainEscape(R) and Trex Outdoor FurnitureTM partnerships, this licensing agreement offers new brand extension and growth opportunities. We also continued bringing new products to market, including an energy-efficient LED outdoor lighting collection and new Transcend styles inspired by tropical hardwoods.

“Before taking into account the impact of the unusual charges, our fourth-quarter gross margin reached 30.1%, reflecting the success of our program to implement fundamental productivity and process improvements as well as our progress in eliminating the impact of start-up costs related to the Transcend introduction. For the full year, we generated free cash flow of $9.2 million.

“With our expanding roster of market-leading products, the significant manufacturing enhancements we’ve achieved and a stabilizing economy, we expect 2011 to be a strong year for Trex. Based on the market demand we are currently seeing, we expect net sales of approximately $70 million for the first quarter. During the year we will continue our R&D initiatives with the goal of further expanding Trex’s position in the outdoor living category.”

As reported by thestockmarketwatch.com, the following points were emphasized in addition the Trex press release:

  • Trex Company announced its per share adjusted loss for the quarter at 23 cents per share.
  • The company was expected to report its loss at 52 cents per share.
  • Trex Company reported its total current assets at $106.571 million for the year ending Dec 31, 2009.
  • Its total assets were worth $256.459 million for the same time period.
  • Trex Company had valued its total liabilities at $130.88 million.
  • The company had reported its revenue at $272.286 million and its gross profit for the year at $80.947 million.
  • Trex Company’ net income for the year stood at ($16.449) million.

About Trex Company

Trex Company is the world’s largest manufacturer of wood-alternative decking and railing, with more than 20 years of product experience. Stocked in more than 5,500 retail locations throughout the world, Trex(R) 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.

SOURCE: THESTOCKMARKETWATCH.COM & TREX.COM

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