Trex secures double-digit gains in Q3

Trex Company, Inc. had double-digit growth to report for the third quarter, much of which was backed by growing demand for Trex products, according to president and CEO James Cline.

“Demand for Trex products continues to grow and resulted in significant revenue gains in the third quarter that substantially outpaced the sector,” said Cline. “We posted strong, double-digit revenue growth for the period, reflecting the appeal of our high aesthetic, top performing product offerings and the success of Trex’s brand strategy with consumers and the trade."

Net sales for the third quarter ended Sept. 30 rose 13% to $106.2 million, compared to $94 million in the year prior.

Net income was $6.9 million, or $0.23 per diluted share: up 84% and 92%, respectively.

Meanwhile, gross margin was 28.2%, 460 basis points ahead of the prior year.

“In addition to increased sales, we are producing substantial operating leverage, driving higher profitability levels through greater capacity utilization, lower raw material costs and our ongoing initiatives to reduce manufacturing costs," said Cline.

Trex's fourth quarter guidance points to revenues of approximately $93 million, up 4% year-over-year.

“Looking ahead to 2017, we are confident that all of the elements are in place for continued revenue growth and operating leverage," he added. "Trex’s analytics-based marketing and advertising campaigns are driving important market share advancements. In 2017, we expect to see the early benefits of our strategy to capture additional share from the large wood market. At the same time, we have recently launched new on-line tools and resources to help homeowners visualize and design their own outdoor spaces, and we continue to invest in new product development as well as considering potential acquisitions that would complement our existing portfolio."