Trex Company, Inc. (NYSE: TWP), manufacturer and distributor of composite decking, railing, fencing and trim, today announced reduced sales and net losses for Q407 and the year.
Net sales for Q407 totaled $30.3 million, compared to net sales of $32.1 million for Q406. The company reported a net loss for Q407 of $41.0 million, or $2.75 per diluted share, compared to a net loss of only $13.8 million, or $0.93 per diluted share, for Q406.
For FY07 year, Trex reported net sales of $329.0 million, compared to net sales of $337.0 million for 2006, which represents a 2.4% decrease.
The company reported a net loss of $75.9 million, or $5.10 per diluted share, for 2007 compared to net income of $2.3 million, or $0.16 per diluted share for 2006. The
President and CEO Ronald W. Kaplan commented, "We are extremely disappointed with 2007 financial results, which were burdened with charges stemming from poor control over manufacturing operations, quality and fixed asset management. Since I joined Trex on January 7, 2008, we have been taking decisive actions to right-size the Company, recruit new management, control costs and enhance operating and financial controls. For example, last week we reduced Trex’s salaried workforce by approximately 30 people, resulting in annual savings of $3.5 million.
"Nevertheless, Trex’s steady sales illustrate our success in improving product quality, the strength of the Trex brand and the expansion of our distribution network. We are pleased with the Company’s sales performance considering the soft market conditions and overall downturn in the building materials industry. Importantly, the company also managed its cash position well during the 2007 fourth quarter, ending the year with no borrowings on our revolving line of credit – an improvement over previous guidance.
Mr. Kaplan concluded, "In today’s very difficult housing market, we are gratified by the steady pace of our sales and expect first-quarter 2008 revenue to be approximately on par with the $115.9 million in revenue realized in the first quarter of 2007."
About Trex Company
Trex Company is the nation’s largest manufacturer of composite decking, railing and fencing. Made from a unique formulation of reclaimed wood and plastic, combined through a proprietary process, Trex decking, railing and fencing offer significant design flexibility with fewer ongoing maintenance requirements than wood. In addition, Trex distributes ultra-low maintenance PVC decking under the trademark Trex EscapesTM and PVC trim under the trademark Trex TrimTM.
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