Trex Company, Inc. (NYSE:TREX), the world's number-one brand of decking and railing and leader in high-performance, low-maintenance outdoor living products, today reported financial results for the third quarter ended September 30, 2016. Third Quarter 2016 Results Net sales for the third quarter of 2016 were $106.2 million, 13% above the $94 million reported last year. Net income for the third quarter 2016 was $6.9 million, or $0.23 per diluted share, up 84% and 92%, respectively. Excluding a non-cash warranty reserve charge related to legacy products of $9.8 million, earnings were $0.45 per diluted share up 96% from the adjusted 2015 third quarter, which excludes a $5.4 million reserve charge related to legacy products. Gross margin was 28.2%, 460 basis points ahead of the prior year; adjusted for legacy warranty reserve charge gross margin was 37.5%, an 820 basis point expansion. "Demand for Trex products continues to grow and resulted in significant revenue gains in the third quarter that substantially outpaced the sector," said James E. Cline, President and Chief Executive Officer. "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. "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." Nine Month 2016 Results Year-to-date net sales totaled $384.3 million, 9% above the $351.6 million reported for the comparable period in 2015. The Company reported net income of $53.6 million, or $1.81 per diluted share, for the first nine months of 2016, up 34% and 45%, respectively. Exclusive of legacy warranty reserve charges, earnings for the first nine months in 2016 were $2.03 per diluted share, up 49% compared to same period in the prior year. Reported gross margin was 38.8%, 380 basis points greater than the 35.0% reported for the same period in 2015; adjusted for the reserve charges, gross margin was 41.3%, a 480 basis point expansion.