Stockholders' Equity

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator:
Net income available to common shareholders	$	65,266	$	14,423	$	183,433	$	174,549
Denominator:
Basic weighted average shares outstanding		108,583,009		110,140,496		108,707,699		112,609,684
Effect of dilutive securities:
Stock appreciation rights and options		80,256		85,396		72,580		101,967
Restricted stock		39,230		74,125		49,095		76,343
Diluted weighted average shares outstanding		108,702,495		110,300,017		108,829,374		112,787,994
Basic earnings per share	$	0.60	$	0.13	$	1.69	$	1.55
Diluted earnings per share	$	0.60	$	0.13	$	1.69	$	1.55

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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Stock appreciation rights		86,250		47,303		95,467		41,627
Restricted stock		—		68,008		69,764		48,552

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. During the quarterly period ended September 30, 2023, Trex did not repurchase shares of its outstanding common stock under the 2023 Stock Repurchase Program.