![]() Consolidated gross margin was 42.5%, compared to 37.0% in 2022. Trex Residential net sales were $879 million for the first nine months of 2022. Year-to-date consolidated net sales were $899 million compared to $914 million in the year-ago period. ![]() Net income was $62 million, or $0.57 per diluted share, EBITDA was $96 million, and EBITDA margin was 31.5%. Excluding the warranty benefit, consolidated gross margin was 41.8%. EBITDA was $99 million, compared to $31 million and EBITDA as a percentage of net sales, EBITDA margin, was 32.7%, compared to 16.4%.ĭuring the 2023 third quarter, the Company recognized a benefit of $3.8 million to the Trex Residential warranty reserve related to the legacy surface flaking issue that affected a portion of the products manufactured at the Nevada plant prior to 2007. Net income for the 2023 third quarter was $65 million, or $0.60 per diluted share, compared to net income of $14 million, or $0.13 per diluted share, reported in the 2022 third quarter. The increase was primarily due to increased branding and a return to normalized personnel and incentive expenses. Selling, general and administrative expenses were $45 million, or 14.7% of net sales, compared to $27 million, or 14.2% of net sales, in the 2022 third quarter. The increase in gross margin was the result of increased volume, cost out initiatives, and positive plant performance. Trex Residential net sales in the year ago quarter were $178 million.Ĭonsolidated gross profit as a percentage of net sales, gross margin, was 43.1% in the third quarter of 2023 compared to consolidated gross margin of 24.5% and Trex Residential gross margin of 25.4% in the same quarter last year. The increase in net sales was substantially due to increased volume which resulted from strong secular trends and the non-recurrence of the channel inventory drawdown that occurred during the 2022 quarter. Third quarter 2023 consolidated net sales were $304 million, compared to $188 million in the prior-year quarter. With a full range of product offerings in decking, railing and complementary accessories, we have and will continue to expand our addressable market, positioning Trex for continued long term growth and profitability.” ![]() “Year-to-date results reflect the resilience of consumer demand for Trex products and the strength of the outdoor living category. During the quarter the Company achieved an adjusted EBITDA margin of 31.5%. Our return to normalized brand spending is showing returns as the market continues to demonstrate mid-single digit sell through growth, despite economic uncertainties. “Higher sales volume, increased utilization rates and the benefits from our investments in production efficiencies drove a significant improvement in gross margin in the third quarter and again demonstrated our ability to achieve strong performance on less-than-full capacity. ![]() We also gained traction with Trex Select ® T-Rail, our high-performance, low-maintenance composite rail system that is priced to compete with low-cost vinyl railing systems,” said Bryan Fairbanks, President and Chief Executive Officer. Our recently launched premium Trex Transcend ® Lineage ™ and Trex Signature ® decking lines have been favorably received in the marketplace and recognized for their respective attributes: Lineage’s refined look and heat-mitigating technology and Signature’s authentic aesthetics that replicate the graining and color richness of tropical hardwoods. Revenue growth benefitted from the success of new product launches and ongoing brand and marketing investments that educate consumers on the value proposition of converting from wood to Trex decking and railing products. Channel sell-through growth remained at mid-single-digit levels. “The third quarter was another quarter of strong results as underlying consumer demand for Trex products, together with operating efficiencies and improved utilization, drove robust performance across all key financial metrics. Net income of $65 million and diluted earnings per share of $0.60Īdjusted EPS of $0.57 excluding the warranty reserve benefitĪdjusted EBITDA of $96 million and Adjusted EBITDA margin of 31.5% Gross margin of 43.1% 41.8% excluding $3.8 million warranty reserve benefit (NYSE:TREX), the world’s #1 brand of high-performance, low-maintenance and eco-friendly decking and railing and a leader in outdoor living products, today reported third quarter 2023 results. WINCHESTER, Va.-( BUSINESS WIRE)-Trex Company, Inc.
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