Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Stockholders' Equity

12. STOCKHOLDERS’ EQUITY

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share data):

	Three Months Ended March 31,
	2023		2022
Numerator:
Net income available to common shareholders	$	41,131	$	71,211
Denominator:
Basic weighted average shares outstanding		108,771,958		114,638,424
Effect of dilutive securities:
Stock appreciation rights and options		70,004		124,327
Restricted stock		74,299		91,130
Diluted weighted average shares outstanding		108,916,261		114,853,881
Basic earnings per share	$	0.38	$	0.62
Diluted earnings per share	$	0.38	$	0.62

Diluted earnings per share is computed using the weighted average number of shares determined for the basic earnings per share computation plus the dilutive effect of common stock equivalents using the treasury stock method. The computation of diluted earnings per share excludes the following potentially dilutive securities because the effect would be anti-dilutive:

	Three Months Ended March 31,
	2023		2022
Stock appreciation rights		108,749		31,006
Restricted stock		107,571		52,278

Stock Repurchase Program

On February 16, 2018, the Trex Board of Directors adopted a stock repurchase program of up to 11.6 million shares of its outstanding common stock (Stock Repurchase Program). During the three months ended March 31, 2023, Trex did not repurchase shares of its outstanding common stock under the Stock Repurchase Program. On May 4, 2023, the Trex Board of Directors adopted a new stock repurchase program of up to 10.8 million shares of its outstanding common stock, and terminated the existing Stock Repurchase Program. This repurchase program has no set expiration date.