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Dec 31, 2021
Trex Q4 2021 Earnings Report
Trex reported robust demand and record results.
Key Takeaways
Trex Company reported a 33% increase in consolidated net sales, reaching $304 million for the fourth quarter of 2021. Net income was reported at $25 million, or $0.22 per diluted share. Adjusted net income was $64 million, or $0.55 per diluted share. The company's adjusted EBITDA increased by 44% to $92 million, with an adjusted EBITDA margin of 30.2%.
Consolidated net sales increased 33% to $304 million.
Net income of $25 million; diluted earnings per share of $0.22.
Adjusted net income of $64 million, up 47%; Adjusted EPS of $0.55, up 49%.
Adjusted EBITDA up 44% to $92 million; Adjusted EBITDA margin of 30.2%.
Trex
Trex
Forward Guidance
First quarter 2022 consolidated net sales are expected to range from $320 million to $330 million, representing 32% year-over-year growth at the midpoint. For the full year 2022, we expect double-digit revenue growth rates with a return to a more normalized seasonal cadence similar to pre-pandemic patterns. We anticipate full-year 2022 incremental EBITDA margin of 30% to 35%, which includes additional investments in marketing and branding now that we have ramped up our new capacity and market inventories have improved. Our capital expenditure guidance for 2022 is $200 million to $220 million.
Positive Outlook
- Expected double-digit revenue growth rates for full year 2022.
- Return to a more normalized seasonal cadence similar to pre-pandemic patterns expected in 2022.
- Full-year 2022 incremental EBITDA margin of 30% to 35% anticipated.
- Additional investments in marketing and branding planned.
- New capacity has ramped up and market inventories have improved.
Challenges Ahead
- Managing through operating headwinds including higher raw material costs.
- Managing through operating headwinds including higher transportation costs.
- Revenues from Trex Commercial to be constrained in 2022.
- Uncertainty created in commercial markets by the COVID-19 virus.
- Delay in new projects influenced by the COVID-19 virus.