20.

INTERIM FINANCIAL DATA (Unaudited)


	Three Months Ended
	December 31, 2018		September 30, 2018		June 30, 2018		March 31, 2018		December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017
	(In thousands, except share and per share data)
Net sales	$	139,971	$	166,380	$	206,692	$	171,207	$	122,212	$	140,194	$	157,941	$	144,806
Gross profit	$	59,856	$	67,210	$	91,115	$	76,713	$	50,906	$	55,284	$	72,014	$	65,169
Net income	$	25,171	$	29,471	$	42,820	$	37,110	$	18,299	$	20,098	$	28,782	$	27,949
Basic net income per share	$	0.43	$	0.50	$	0.73	$	0.63	$	0.31	$	0.34	$	0.49	$	0.48
Basic weighted average common shares outstanding		58,603,537		58,741,973		58,760,753		58,855,156		58,825,696		58,808,098		58,778,916		58,726,420
Diluted net income per share	$	0.43	$	0.50	$	0.73	$	0.63	$	0.31	$	0.34	$	0.49	$	0.48
Diluted weighted average common shares outstanding		58,936,795		59,084,117		59,051,413		59,199,622		59,222,258		59,156,432		59,100,836		59,122,812

The operating results for Trex Residential 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 its products to a later period. The operating results for Trex Commercial have not historically varied from quarter to quarter as a result of seasonality; however, they are driven by the timing of individual projects, which may vary each quarterly 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.

On May 2, 2018, the Board of Directors of the Company approved a two-for-one stock split of the Company’s common stock, par value $0.01. The stock split was in the form of a stock dividend distributed on June 18, 2018, to stockholders of record at the close of business on May 23, 2018. The stock split entitled each stockholder to receive one additional share of common stock, par value $0.01, for each share they held as of the record date. All common stock share and per share data for all periods presented have been retroactively adjusted to reflect the stock split.