Stockholders' Equity

3 Months Ended

Mar. 31, 2024

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,
	2024		2023
Numerator:
Net income available to common shareholders	$	89,070	$	41,131
Denominator:
Basic weighted average shares outstanding		108,640,168		108,771,958
Effect of dilutive securities:
Stock appreciation rights and options		71,202		70,004
Restricted stock		79,255		74,299
Diluted weighted average shares outstanding		108,790,625		108,916,261
Basic earnings per share	$	0.82	$	0.38
Diluted earnings per share	$	0.82	$	0.38

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,
	2024			2023
Stock appreciation rights		55,132			108,749
Restricted stock		48,597			107,571

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). 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. During the three months ended March 31, 2024, Trex did not repurchase any shares of its outstanding common stock under the 2023 Stock Repurchase Program.