Trex Company, Inc. (NYSE:TREX), the world’s largest manufacturer of wood-alternative decking and railing products, today announced financial results for the first quarter ended March 31, 2014.
Net sales for the first quarter of 2014 totaled $100.6 million compared to net sales of $107.9 million for the 2013 first quarter. The Company reported net income of $12.3 million, or $0.73 per diluted share, for the 2014 period compared to net income of $21.6 million, or $1.25 per diluted share, for the prior-year period. The Company’s results for the 2014 quarter reflect a $7.1 million increase in income taxes due to returning to a more normal tax rate after exiting its tax valuation allowance at year-end 2013. The increase in taxes represents almost 80% of the year-over-year change in net income.
Chairman, President and CEO Ronald W. Kaplan commented, “The severe weather experienced throughout the country during the first quarter delayed the start of outdoor living project activity. Trex was affected by this trend. The impact was especially evident in March, when winter storms and low temperatures persisted throughout the month. Except for the weather-related impact to our sales, we are pleased with our first-quarter financial performance and remain confident about our strategy for the year.
“We believe Trex is optimally positioned across all key price segments with our high-performance decking and railing product platforms. Distributors and dealers are upbeat about our products and market strategy. In March, we were awarded top honors from two of the industry's most respected surveys – Peninsula Publishing's 2013 Building Products Brand Survey, which ranked Trex® as the number-one decking brand, and Green Builder Media's 2014 Reader's Choice Awards, which ranked us as the industry’s ‘greenest.’ These awards illustrate our brand and product leadership among trade professionals.
“In 2014, we are continuing the high-profile Engineered Artistry branding campaign we successfully launched last year. Macro-economic indicators, including rising consumer confidence and the strengthening home remodeling market, bode well for our prospects.