Stockholders' Equity

12 Months Ended

Dec. 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):

	Year Ended December 31,
	2023		2022		2021
Numerator:
Net income	$	205,384	$	184,626	$	208,737
Denominator:
Basic weighted average shares outstanding		108,680,459		111,710,676		115,461,016
Effect of dilutive securities:
Stock appreciation rights		71,406		94,859		180,875
Restricted stock		57,538		74,953		120,952
Diluted weighted average shares outstanding		108,809,403		111,880,488		115,762,843
Basic earnings per share	$	1.89	$	1.65	$	1.81
Diluted earnings per share	$	1.89	$	1.65	$	1.80

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:

	Year Ended December 31,
	2023		2022		2021
Restricted stock		52,323		48,851		6,296
Stock appreciation rights		93,163		52,107		12,602

Stock Repurchase Program

On February 16, 2018, the Board of Directors adopted the 2018 Stock Repurchase Program of up to 11.6 million shares of the Company’s outstanding common stock (Stock Repurchase Program). During 2023, the Company 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. The 2023 Stock Repurchase Program has no set expiration date. The Company repurchased 264,896 shares of its outstanding common stock under the 2023 Stock Repurchase Program during 2023.