Income from operations for the period ended June 30 doubled to $12.7 million at the Winchester, Va.-based composite decking manufacturer. Gross profit dollars also grew by $10 million to hit $33.6 million.
“Our strong second-quarter results once again demonstrate that we are successfully executing our strategy,” said Ronald W. Kaplan, Trex’s chairman, president and CEO. “Our many recent innovative ultra-low-maintenance product introductions, including Trex Enhance, Trex Transcend Porch and Trex Elevations, contributed to our performance.”
During the quarter the company recognized a $1.1 million increase to its warranty reserve for decking material manufactured at its Nevada plant before 2007. Trex also noted $700,000 in severance charges, thus bringing its net income down to its current point from $10.1 million.
The manufacturer also repaid the remaining $91.9 million principal balance on its convertible subordinated senior notes. Since 2008, management has reduced Trex’s debt by $109 million.
Kaplan said the company expects sales to remain strong during the third quarter, totaling approximately $70 million.