19.

INTERIM FINANCIAL DATA (Unaudited)


	Three Months Ended
	December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016
	(In thousands, except share and per share data)
Net sales	$	122,212	$	140,194	$	157,941	$	144,806	$	95,322	$	106,168	$	146,450	$	131,676
Gross profit	$	50,906	$	55,284	$	72,014	$	65,169	$	38,113	$	29,945	$	61,410	$	57,627
Net income	$	18,299	$	20,098	$	28,782	$	27,949	$	12,629	$	7,787	$	23,725	$	23,706
Basic net income per share	$	0.62	$	0.68	$	0.98	$	0.95	$	0.43	$	0.27	$	0.81	$	0.80
Basic weighted average common shares outstanding		29,412,848		29,404,049		29,389,458		29,363,210		29,318,915		29,295,284		29,264,362		29,697,722
Diluted net income per share	$	0.62	$	0.68	$	0.97	$	0.95	$	0.43	$	0.26	$	0.80	$	0.79
Diluted weighted average common shares outstanding		29,611,129		29,578,216		29,550,418		29,561,406		29,543,842		29,516,718		29,477,870		29,910,292

The Company’s operating results have historically varied from quarter to quarter. Seasonal, erratic or prolonged adverse weather conditions in certain geographic regions reduce the level of home improvement and construction activity and can shift demand for Trex products to a later period.

The Tax Cuts and Jobs Act (Act) was enacted on December 22, 2017. Accordingly, the Company has recognized the tax effects of the Act in its consolidated financial statements and related notes as of and for the year ended December 31, 2017. Deferred tax assets that existed as of the enactment date and that are expected to reverse after the Act’s effective date of January 1, 2018 have been adjusted to reflect the new Federal statutory tax rate of 21%. The effect of the change in tax rate on the deferred tax assets and deferred tax liabilities resulted in a tax benefit of $1.9 million for the year ended December 31, 2017.