Dec 31, 2019

Trex Q4 2019 Earnings Report

Trex reported strong double-digit sales growth and gross margin expansion in Q4 2019.

Key Takeaways

Trex Company reported an 18% increase in consolidated net sales for Q4 2019, reaching $165 million. Earnings per share increased by 42% to $0.61. The company anticipates strong double-digit sales growth for 2020.

Consolidated net sales increased by 18% to $165 million.

Trex Residential net sales were up 25%.

Consolidated gross margin increased by 40 basis points to 43.2%.

Earnings per share increased by 42% to $0.61.

Total Revenue
$165M
Previous year: $140M
+17.7%
EPS
$0.31
Previous year: $0.22
+40.9%
Gross Margin
43.2%
Previous year: 42.8%
+0.9%
SG&A expense as % of net sales
15.2%
Gross Profit
$71.3M
Previous year: $59.9M
+19.1%
Cash and Equivalents
$149M
Previous year: $106M
+40.8%
Free Cash Flow
$27M
Previous year: $10.5M
+156.3%
Total Assets
$592M
Previous year: $465M
+27.3%

Trex

Trex

Trex Revenue by Segment

Forward Guidance

Trex Company anticipates strong double-digit sales growth for 2020, closely tied to the ramp-up of additional capacity. For the first quarter of 2020, the company expects consolidated net sales of approximately $200 million, 11% ahead of the first quarter 2019.

Positive Outlook

  • Strong economic environment
  • Healthy repair and remodel sentiment
  • High consumer confidence
  • Robust demand for Trex Residential Products
  • Executing on multi-year capital expenditures program

Revenue & Expenses

Visualization of income flow from segment revenue to net income