Stockholders' Equity

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net income available to common shareholders	$	77,036	$	88,916	$	118,167	$	160,127
Denominator:
Basic weighted average shares outstanding		108,770,204		113,099,561		108,771,077		113,864,741
Effect of dilutive securities:
Stock appreciation rights and options		67,479		96,179		68,742		110,253
Restricted stock		33,757		63,774		54,029		77,453
Diluted weighted average shares outstanding		108,871,440		113,259,514		108,893,848		114,052,447
Basic earnings per share	$	0.71	$	0.79	$	1.09	$	1.41
Diluted earnings per share	$	0.71	$	0.79	$	1.09	$	1.40

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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Stock appreciation rights		91,402		47,303		100,076		38,789
Restricted stock		101,722		63,131		104,646		38,823

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). From January 1, 2023 through May 3, 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 (2023 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. From May 4, 2023 through June 30, 2023, Trex repurchased 264,896 shares of its outstanding common stock under the 2023 Stock Repurchase Program.