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, 2012.
Net sales for the fourth quarter of 2012 totaled $46.2 million compared to net sales of $51.5 million for the 2011 fourth quarter. The Company reported a net loss of $3.6 million, or $0.22 per diluted share, for the 2012 quarter compared to a net loss of $18.3 million, or $1.18 per diluted share, for the prior-year period. During the 2012 quarter, the Company recognized a $1.5 million provision for costs related to the mold class action. Before giving effect to that charge, the 2012 net loss was $2.1 million, or $0.13 per diluted share. During the 2011 quarter, the Company recognized a $10.0 million increase to the warranty reserve for decking material manufactured at its Nevada plant prior to 2007. Before giving effect to that charge, the 2011 net loss was $8.3 million, or $0.54 per share.
“We brought 2012 to a successful close with a solid fourth quarter,” said Chairman, President and CEO Ronald W. Kaplan. “We exceeded our revenue guidance for the period and achieved sales growth of 15% for the year. This, coupled with continued growth in Trex dealers and contractors, indicates that we continued to advance our industry-leading market share.
“Demonstrating our commitment to innovative leadership, including the expansion of our high-performance shelled decking products, we introduced a ‘good, better, best’ high-performance product platform for both our decking and railing product lines. Today’s product line-up represents the most comprehensive and robust platform in our Company’s history. During 2012 we also made further progress with our industry-leading, low-cost manufacturing process and achieved another record in manufacturing line rates.
“Our new and expanded product offerings have significantly increased the markets in which Trex participates. We believe we are well positioned for 2013, during which we expect to benefit from the growing momentum in the housing sector.