Trex (TREX) 8-K Trex Company Continues Record-Setting Year

Exhibit 99.1

Trex Company Continues Record-Setting Year

• Q2 2015 Net Sales Increase 13% to $137 Million
• EPS Rises 26% to $0.58

WINCHESTER, Va.--(BUSINESS WIRE)--August 3, 2015--Trex Company, Inc. (NYSE:TREX), the world’s largest manufacturer of wood-alternative decking and railing products, today announced financial results for the second quarter ended June 30, 2015.

Net sales for the second quarter of 2015 totaled $136.8 million, a 13% increase compared to net sales of $121.3 million for the 2014 period. The Company reported net income of $18.7 million, or $0.58 per diluted share, for the second quarter of 2015 compared to net income of $15.2 million, or $0.46 per diluted share, for the prior-year period, a 26% increase.

For the six months ended June 30, 2015, the Company reported net sales of $257.6 million compared to net sales of $222.0 million for the prior-year period, an increase of 16%. The Company reported net income of $36.3 million, or $1.13 per diluted share, for the first six months of 2015 compared to net income of $27.5 million, or $0.82 per diluted share, for the 2014 period, a 38% increase.

Chairman, President and CEO Ronald W. Kaplan commented, “We continued our record-setting performance in the second quarter, reaching new highs in revenue and earnings for both the quarter and the first half of the year. We are executing well on our business strategies and, in the process, advancing our industry-leading market share. This year’s branding campaign – Engineering What’s Next in Outdoor Living – has been striking a strong chord with consumers, and our growing emphasis on digital marketing is helping us reach new audiences and reinforce Trex’s image and status as the premier provider of outdoor living products. The many manufacturing efficiencies we have implemented continued to bear fruit during the second quarter, helping lift our gross margin to 38.4%, an increase of 128 basis points over the prior-year period. We incurred non-operating charges of $0.9 million during the 2015 quarter. Excluding the after-tax impact of these charges, our net income would have been $19.3 million, or $0.60 per diluted share.”

Mr. Kaplan continued, “For Q3, we expect revenue of approximately $96 million. This is comparable to last year’s third quarter. The 2014 third quarter was favorably impacted by a seasonal shift in demand resulting from harsh winter weather that delayed the start to the decking season. Our 2015 third quarter revenue guidance reflects the return to a normal seasonal demand trend. Our trailing twelve month sales guidance through the end of Q3 2015 is $428 million, or 12% above the comparable prior-year period. We are pleased with our 2015 sales, which reflect continued strong execution in our market share advancement initiatives.”

Second-Quarter 2015 Conference Call and Webcast Information

Trex will hold a conference call to discuss its second-quarter 2015 results and other corporate matters on Monday, August 3, 2015 at 10:00 a.m. ET. To participate in the live call by telephone, please dial 706-634-1218 or 888-803-7638 and reference conference ID #75134733. A live webcast of the conference call will also be available in the Investor Relations section of the Trex Company website at trex.com.

For those who cannot listen to the live broadcast, an audio replay of the earnings call will be available on the Trex website for 30 days.

Forward-Looking Statements

The statements in this press release regarding the Company's expected future performance and condition constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause the Company's actual operating results to differ materially. Such risks and uncertainties include the extent of market acceptance of the Company's products; the costs associated with the development and launch of new products and the market acceptance of such new products; the sensitivity of the Company's business to general economic conditions; the impact of weather-related demand fluctuations on inventory levels in the distribution channel and sales of the Company’s products; the Company's ability to obtain raw materials at acceptable prices; the Company's ability to maintain product quality and product performance at an acceptable cost; the level of expenses associated with product replacement and consumer relations expenses related to product quality; and the highly competitive markets in which the Company operates. Documents filed with the Securities and Exchange Commission by the Company, including in particular its latest annual report on Form 10-K and quarterly reports on Form 10-Q, discuss some of the important factors that could cause the Company's actual results to differ materially from those expressed or implied in these forward-looking statements. The Company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

About Trex Company

Trex Company is the world’s largest manufacturer of wood-alternative decking and railing, with more than 20 years of product experience. Stocked in more than 6,700 retail locations throughout the world, Trex^® outdoor living products offer a wide range of style options with fewer ongoing maintenance requirements than wood, as well as a truly environmentally responsible choice. For more information, visit trex.com.

TREX COMPANY, INC.
Condensed Consolidated Statements of Comprehensive Income
(In thousands, except share and per share data)
(Unaudited)
	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Net sales	$	136,779	$	121,311	$	257,579	$	221,956
Cost of sales		84,255		76,285		156,808		138,764
Gross profit		52,524		45,026		100,771		83,192
Selling, general and administrative expenses		22,472		20,344		43,064		38,566
Income from operations		30,052		24,682		57,707		44,626
Interest expense, net		188		301		325		623
Income before income taxes		29,864		24,381		57,382		44,003
Provision for income taxes		11,149		9,220		21,114		16,547
Net income	$	18,715	$	15,161	$	36,268	$	27,456
Basic earnings per common share	$	0.59	$	0.46	$	1.14	$	0.83
Basic weighted average common shares outstanding		31,735,333		32,898,288		31,709,645		33,012,845
Diluted earnings per common share	$	0.58	$	0.46	$	1.13	$	0.82
Diluted weighted average common shares outstanding		32,142,939		33,307,463		32,119,026		33,452,814
Comprehensive income	$	18,715	$	15,161	$	36,268	$	27,456

TREX COMPANY, INC.
Condensed Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
		June 30,			December 31,
		2015			2014
ASSETS
Current assets:
	Cash and cash equivalents	$	4,149		$	9,544
	Accounts receivable, net		124,465			36,391
	Inventories		18,626			23,747
	Prepaid expenses and other assets		2,045			6,288
	Deferred income taxes		9,860			9,271
	Total current assets		159,145			85,241
Property, plant and equipment, net			105,530			98,716
Goodwill and other intangibles			10,530			10,534
Other assets			1,559			1,333
	Total assets	$	276,764		$	195,824
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
	Accounts payable	$	19,946		$	20,050
	Accrued expenses		28,464			20,660
	Accrued warranty		8,186			8,744
	Line of credit		37,500			-
	Total current liabilities		94,096			49,454
	Deferred income taxes		3,708			3,708
	Non-current accrued warranty		23,185			25,097
	Other long-term liabilities		4,285			4,180
	Total liabilities		125,274			82,439
Stockholders’ equity:
	Preferred stock, $0.01 par value, 3,000,000 shares authorized; none issued and outstanding		-			-
	Common stock, $0.01 par value, 80,000,000 shares authorized; 34,832,045 and 34,800,552 shares issued and 32,051,616 and 32,020,123 shares outstanding at June 30, 2015 and December 31, 2014, respectively		348			348
	Additional paid-in capital		118,577			116,740
	Retained earnings		107,565			71,297
	Treasury stock, at cost, 2,780,429 shares at June 30, 2015 and December 31, 2014		(75,000	)		(75,000	)
	Total stockholders’ equity		151,490			113,385
	Total liabilities and stockholders’ equity	$	276,764		$	195,824

TREX COMPANY, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
	Six Months Ended June 30,
	2015			2014
Operating Activities
Net income	$	36,268		$	27,456
Adjustments to reconcile net income to net cash used in
operating activities:
Depreciation and amortization		7,322			7,660
Deferred income taxes		(589	)		-
Stock-based compensation		2,717			2,455
Gain on disposal of property, plant and equipment		(3	)		(48	)
Excess tax benefits from stock compensation		(1,771	)		(12,533	)
Other non-cash adjustments		(270	)		(245	)
Changes in operating assets and liabilities:
Accounts receivable		(88,074	)		(22,794	)
Inventories		5,121			1,373
Prepaid expenses and other assets		979			(206	)
Accounts payable		(104	)		4,583
Accrued expenses and other liabilities		(856	)		(6,007	)
Income taxes receivable/payable		11,360			9,764
Net cash (used in)/provided by operating activities		(27,900	)		11,458
Investing Activities
Expenditures for property, plant and equipment		(14,088	)		(4,927	)
Proceeds from sales of property, plant and equipment		3			48
Purchase of acquired company, net of cash acquired		(31	)		(44	)
Notes receivable, net		-			39
Net cash used in investing activities		(14,116	)		(4,884	)
Financing Activities
Borrowings under line of credit		118,000			120,000
Principal payments under line of credit		(80,500	)		(85,000	)
Repurchases of common stock		(2,847	)		(52,892	)
Proceeds from employee stock purchase and option plans		197			585
Excess tax benefits from stock compensation		1,771			12,533
Net cash provided by (used in) financing activities		36,621			(4,774	)
Net (decrease) increase in cash and cash equivalents		(5,395	)		1,800
Cash and cash equivalents at beginning of period		9,544			3,772
Cash and cash equivalents at end of period	$	4,149		$	5,572
Supplemental Disclosure:
Cash paid for interest, net of capitalized interest	$	284		$	384
Cash paid for income taxes, net	$	10,342		$	6,783

CONTACT:
Trex Company
James Cline, 540-542-6300
SVP & CFO
or
LHA
Harriet Fried, 212-838-3777