Interim Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Interim Financial Data (Unaudited)

13. INTERIM FINANCIAL DATA (Unaudited)

	Three Months Ended
	December 31, 2013 (a)		September 30, 2013 (b)			June 30, 2013		March 31, 2013		December 31, 2012			September 30, 2012 (c)			June 30, 2012		March 31, 2012
	(In thousands, except per share data)
Net sales		63,831		72,249			98,551		107,880		46,155			70,819			94,279		96,100
Gross profit		19,685		151			36,922		41,860		13,426			2,146			33,590		35,419
Net income (loss)		15,103		(15,298	)		13,224		21,569		(3,619	)		(14,312	)		8,339		12,311
Basic net income (loss) per share	$	0.91	$	(0.91	)	$	0.78	$	1.28	$	(0.22	)	$	(0.86	)	$	0.54	$	0.80
Diluted net income (loss) per share	$	0.90	$	(0.91	)	$	0.76	$	1.25	$	(0.22	)	$	(0.86	)	$	0.48	$	0.74

The Company’s net sales, gross profit and income from operations have historically varied from quarter to quarter. Such variations are often attributable to seasonal trends in the demand for Trex. The Company has historically experienced lower net sales during the fourth quarter because holidays and adverse weather conditions in certain regions reduce the level of home improvement and construction activity.

(a) Three months ended December 31, 2013 was materially affected by a $10.9 million benefit as a direct result of the Company’s decision to exit a full valuation allowance.

(b) Three months ended September 30, 2013 was materially affected by a pre-tax increase of $20.0 million to the warranty reserve.

(c) Three months ended September 30, 2012 was materially affected by a pre-tax increase of $20.0 million to the warranty reserve.