-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Hm7FA5XesxqsOpbnV4d/Q2UU4zL61XO6OwbFKPUcsQBgwyXU2naqs5UiQkGRjtQ7 LBP1LxY5OyYcuZr1ZK0bhw== 0001157523-03-003387.txt : 20030729 0001157523-03-003387.hdr.sgml : 20030729 20030728175355 ACCESSION NUMBER: 0001157523-03-003387 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030728 ITEM INFORMATION: FILED AS OF DATE: 20030729 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TREX CO INC CENTRAL INDEX KEY: 0001069878 STANDARD INDUSTRIAL CLASSIFICATION: LUMBER & WOOD PRODUCTS (NO FURNITURE) [2400] IRS NUMBER: 541910453 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14649 FILM NUMBER: 03806829 BUSINESS ADDRESS: STREET 1: 20 CAMERON ST CITY: WINCHESTER STATE: VA ZIP: 22801 BUSINESS PHONE: 5406784070 MAIL ADDRESS: STREET 1: 20 CAMERON ST CITY: WINCHESTER STATE: VA ZIP: 22801 8-K 1 a4443091.txt TREX 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ----------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 28, 2003 TREX COMPANY, INC. ------------------------------------------------- (Exact Name of Registrant as Specified in Charter) Delaware 001-14649 54-1910453 (State or Other Jurisdiction of (Commission File Number) (IRS Employer Incorporation) Identification No.) 160 Exeter Drive Winchester, Virginia 22603-8605 (Address of Principal Executive Offices) (ZIP Code) Registrant's telephone number, including area code: (540) 542-6300 Not Applicable ------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Item 12. Results of Operations and Financial Condition. On July 28, 2003, Trex Company, Inc. issued a press release announcing financial results for the quarter ended June 30, 2003. A copy of such press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information contained in this report on Form 8-K shall not be deemed to be filed for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. TREX COMPANY, INC. Date: July 28, 2003 /s/ Robert G. Matheny ----------------------------------- Robert G. Matheny President and CEO EXHIBIT INDEX ------------- Exhibit Number Exhibit Description - -------------- ------------------- 99.1 Press release dated July 28, 2003 EX-99 3 a4443091ex991.txt EXHIBIT 99.1 Exhibit 99.1 Trex Company Reports 29% Revenue Growth in Second Quarter WINCHESTER, Va.--(BUSINESS WIRE)--July 28, 2003--Trex Company, Inc. (NYSE: TWP), manufacturer of Trex(R) decking and railing, today announced financial results for the second quarter ended June 30, 2003. Net sales for the quarter increased to $59.2 million from $45.9 million in the second quarter of 2002. Net income increased to $6.5 million from $5.6 million in the same period last year. On a fully diluted per share basis, net income for the quarter rose to $0.44 per share from $0.39 per share in 2002. President Robert Matheny commented, "Trex was successful in either meeting or exceeding our financial goals for the second quarter of 2003 despite the adverse weather conditions that negatively affected building activities all along the East Coast of the U.S. Our SG&A expenses, which totaled $15.9 million, represented 27% of sales. Consistent with previous announcements, this included increased branding expenditures designed to help us expand our leadership position in non-wood decking. "To fulfill our goal of telling more people about Trex and the many benefits of our product, we have augmented our print and television placements by participating in more than 300 home and trade shows since January. This effort was highlighted in the second quarter by our strong presence at the Pacific Coast Builders Conference, held in San Francisco in June. "To fulfill our goal of making Trex easier to buy, we have increased the number of dealers who sell Trex to 3,300 and expanded the number of qualified TrexPros(TM), our contractor partners, to 2,700; 47% more than at year-end 2002. "In recent months, we have also increased our activity with home builders and sold product for use in a number of showcase projects. Among the most prominent are the Disney Saratoga Springs Resort Boardwalk, the Tahoe City, California Commercial Pier, and portions of Yosemite National Park. "We are pleased with the progress we are making in our many initiatives and, as a result, are maintaining our guidance for the year, which calls for revenue to exceed $200 million and earnings to range between $1.63 and $1.66 per share." About Trex Company Trex Company is the nation's largest manufacturer of non-wood decking, which is marketed under the brand name Trex(R). Trex Wood-Polymer(R) lumber offers an attractive appearance and the workability of wood without the ongoing need for protective sealants or repairs. Trex decking and railing is manufactured in a proprietary process that combines waste wood fibers and reclaimed polyethylene and is used primarily for residential and commercial decking. The Company sells its products through approximately 90 wholesale distribution locations, which in turn sell Trex decking to approximately 3,300 independent contractor-oriented retail lumberyards across the United States. For a Trex decking and railing dealer near you, call 1-800-BUY-TREX (289-8739) or for dealers and product details, visit www.trex.com. Trex(R) and Trex Wood-Polymer(R) are trademarks of Trex Company, Inc., Winchester, Va. Note: The Company has scheduled a conference call to discuss second-quarter results for 11:00 a.m. EDT on July 29. A live webcast of the conference call will be available to all investors at the Trex Company web site at www.trex.com. The call will also be simulcast at www.streetevents.com. For those who cannot listen to the live broadcast, an audio replay of the call will be available on these web sites for 30 days. A telephone replay of the call will also be available from 12:00 p.m. EDT on July 29 until 12:00 a.m. EDT on August 5. To listen to the telephone replay, dial 800-642-1687 (706-645-9291 outside the U.S.) and enter conference ID number 1552667. The statements in this press release regarding the Company's expected sales performance and operating results, its projections of revenues and earnings, its anticipated financial condition and its business strategy constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause the Company's actual operating results to differ materially. Such risks and uncertainties include the extent of market acceptance of the Company's products, the sensitivity of the Company's business to general economic conditions, and the highly competitive markets in which the Company operates. The Company's report on Form 10-K filed with the Securities and Exchange Commission on March 19, 2003 discusses some of the important factors that could cause the Company's actual results to differ materially from those expressed or implied in these forward-looking statements. The Company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. TREX COMPANY, INC. Condensed Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited) Quarter Ended Six Months Ended June 30, June 30, 2002 2003 2002 2003 ----------- ----------- ----------- ----------- Net sales $45,924 $59,198 $97,920 $127,876 Cost of sales 21,676 32,300 53,710 71,220 ----------- ----------- ----------- ----------- Gross profit 24,248 26,898 44,210 56,656 Selling, general and administrative expenses 11,823 15,903 18,959 28,462 ----------- ----------- ----------- ----------- Income from operations 12,425 10,995 25,251 28,194 Interest expense, net (3,341) (884) (5,811) (1,797) ----------- ----------- ----------- ----------- Income before taxes 9,084 10,111 19,440 26,397 Income taxes 3,454 3,578 7,390 9,767 ----------- ----------- ----------- ----------- Net income $5,630 $6,533 $12,050 $16,630 =========== =========== =========== =========== Fully diluted earnings per common share $0.39 $0.44 $0.84 $1.13 =========== =========== =========== =========== Weighted average fully diluted shares outstanding 14,404,296 14,751,928 14,343,799 14,663,715 =========== =========== =========== =========== TREX COMPANY, INC. Condensed Consolidated Balance Sheets (In thousands, except share data) 31-Dec-02 30-Jun-03 --------- ----------- (unaudited) ASSETS Current assets: Cash and cash equivalents $14,893 $21,629 Trade accounts receivable 840 21,947 Inventories 22,429 15,981 Prepaid expenses and other assets 1,395 1,970 Deferred income taxes 2,269 2,256 --------- ----------- Total current assets 41,826 63,783 --------- ----------- Property, plant and equipment, net 133,570 135,385 Goodwill, net 6,837 6,837 Other assets 1,323 1,698 --------- ----------- Total assets $183,556 $207,703 ========= =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable $10,056 $11,673 Accrued expenses 6,089 3,735 Income taxes payable 114 1,202 Other current liabilities 638 1,085 Current portion long-term debt 795 873 --------- ----------- Total current liabilities 17,692 18,568 --------- ----------- Deferred income taxes 9,915 11,008 Debt-related derivatives 2,773 3,013 Long-term debt, net of current portion 54,401 53,917 --------- ----------- Total liabilities 84,781 86,506 --------- ----------- Stockholders' equity: Preferred stock, $0.01 par value, 3,000,000 shares authorized; none issued and outstanding -- -- Common stock, $0.01 par value, 40,000,000 shares authorized; 14,297,711 and 14,676,322 shares issued and outstanding at December 31, 2002 and June 30, 2003 143 147 Additional capital 49,354 55,006 Retained earnings 53,397 70,027 Deferred compensation (2,400) (2,115) Accumulated other comprehensive net loss (1,719) (1,868) --------- ----------- Total stockholders' equity 98,775 121,197 --------- ----------- Total liabilities and stockholders' equity $183,556 $207,703 ========= =========== TREX COMPANY, INC. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Six Months Ended June 30, 2002 2003 --------- -------- OPERATING ACTIVITIES Net income $12,050 $16,630 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,479 6,075 Other non-cash charges 4,867 1,822 Changes in operating assets and liabilities 13,923 (15,148) --------- -------- Net cash provided by operating activities $35,319 $9,379 --------- -------- INVESTING ACTIVITIES ($952) ($7,891) --------- -------- FINANCING ACTIVITIES ($28,638) $5,248 --------- -------- Net increase in cash and cash equivalents $5,729 $6,736 Cash and cash equivalents at beginning of period $- $14,893 --------- -------- Cash and cash equivalents at end of period $5,729 $21,629 ========= ======== CONTACT: Trex Company, Inc. Robert G. Matheny, 540-542-6300 or Lippert/Heilshorn & Associates John Nesbett / Harriet Fried 212-838-3777 -----END PRIVACY-ENHANCED MESSAGE-----