Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 17, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'TREX | ' |
Entity Registrant Name | 'TREX CO INC | ' |
Entity Central Index Key | '0001069878 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 32,006,335 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $3,841 | $3,772 |
Accounts receivable, net | 44,977 | 37,338 |
Inventories | 14,639 | 22,428 |
Prepaid expenses and other assets | 3,279 | 3,145 |
Deferred income taxes | 9,497 | 9,497 |
Total current assets | 76,233 | 76,180 |
Property, plant and equipment, net | 98,199 | 100,783 |
Goodwill and other intangibles | 10,536 | 10,542 |
Other assets | 897 | 652 |
Total assets | 185,865 | 188,157 |
Current liabilities: | ' | ' |
Accounts payable | 12,864 | 14,891 |
Accrued expenses | 24,275 | 23,295 |
Accrued warranty | 8,500 | 9,000 |
Line of credit | 3,000 | ' |
Total current liabilities | 48,639 | 47,186 |
Deferred income taxes | 360 | 360 |
Non-current accrued warranty | 27,587 | 31,812 |
Other long-term liabilities | 2,164 | 2,183 |
Total liabilities | 78,750 | 81,541 |
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; 34,783,546 and 34,598,124 shares issued and 32,003,117 and 33,475,614 shares outstanding at September 30, 2014 and December 31, 2013, respectively | 348 | 173 |
Additional paid-in capital | 115,623 | 101,667 |
Retained earnings | 66,144 | 29,776 |
Treasury stock, at cost, 2,780,429 and 1,122,510 shares at September 30, 2014 and December 31, 2013, respectively | -75,000 | -25,000 |
Total stockholders' equity | 107,115 | 106,616 |
Total liabilities and stockholders' equity | $185,865 | $188,157 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 34,783,546 | 34,598,124 |
Common stock, shares outstanding | 32,003,117 | 33,475,614 |
Treasury stock, shares | 2,780,429 | 1,122,510 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $95,502 | $72,249 | $317,458 | $278,680 |
Cost of sales | 65,133 | 72,098 | 203,897 | 199,747 |
Gross profit | 30,369 | 151 | 113,561 | 78,933 |
Selling, general and administrative expenses | 15,902 | 15,375 | 54,468 | 58,609 |
Income (loss) from operations | 14,467 | -15,224 | 59,093 | 20,324 |
Interest expense, net | 167 | 70 | 791 | 531 |
Income (loss) before income taxes | 14,300 | -15,294 | 58,302 | 19,793 |
Provision for income taxes | 5,387 | 4 | 21,934 | 298 |
Net income (loss) | 8,913 | -15,298 | 36,368 | 19,495 |
Basic earnings (loss) per common share | $0.28 | ($0.45) | $1.12 | $0.58 |
Basic weighted average common shares outstanding | 31,606,264 | 33,660,212 | 32,538,832 | 33,772,710 |
Diluted earnings (loss) per common share | $0.28 | ($0.45) | $1.10 | $0.56 |
Diluted weighted average common shares outstanding | 32,008,781 | 33,660,212 | 32,966,317 | 34,506,910 |
Comprehensive income (loss) | $8,913 | ($15,298) | $36,368 | $19,495 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating Activities | ' | ' |
Net income | $36,368 | $19,495 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 11,449 | 12,444 |
Deferred income taxes | ' | -2,991 |
Stock-based compensation | 3,672 | 2,781 |
Loss on disposal of property, plant and equipment | 169 | 587 |
Excess tax benefits from stock compensation | -12,677 | -2,567 |
Other non-cash adjustments | -245 | -337 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -7,698 | 2,543 |
Inventories | 7,789 | 6,343 |
Prepaid expenses and other assets | -415 | 447 |
Accounts payable | -2,027 | -4,488 |
Accrued expenses and other liabilities | -3,690 | 16,775 |
Income taxes receivable/payable | 12,630 | 2,633 |
Net cash provided by operating activities | 45,325 | 53,665 |
Investing Activities | ' | ' |
Expenditures for property, plant and equipment | -8,794 | -8,971 |
Proceeds from sales of property, plant and equipment | 48 | 176 |
Purchase of acquired company, net of cash acquired | -44 | ' |
Notes receivable, net | 59 | 78 |
Net cash used in investing activities | -8,731 | -8,717 |
Financing Activities | ' | ' |
Financing costs | ' | -73 |
Borrowings under line of credit | 139,000 | 74,500 |
Principal payments under line of credit | -136,000 | -79,500 |
Repurchases of common stock | -52,892 | -28,445 |
Proceeds from employee stock purchase and option plans | 690 | 3,427 |
Excess tax benefits from stock compensation | 12,677 | 2,567 |
Net cash used in financing activities | -36,525 | -27,524 |
Net increase in cash and cash equivalents | 69 | 17,424 |
Cash and cash equivalents at beginning of period | 3,772 | 2,159 |
Cash and cash equivalents at end of period | 3,841 | 19,583 |
Supplemental Disclosure: | ' | ' |
Cash paid for interest, net of capitalized interest | 498 | 348 |
Cash paid for income taxes, net | $9,342 | $696 |
Business_and_Organization
Business and Organization | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Business and Organization | ' | |
1 | BUSINESS AND ORGANIZATION | |
Trex Company, Inc. (the “Company”) is the world’s largest manufacturer of wood-alternative decking and railing products, which are marketed under the brand name Trex®. The Company is incorporated in Delaware. The principal executive offices are located at 160 Exeter Drive, Winchester, Virginia 22603, and the telephone number at that address is (540) 542-6300. The Company operates in one business segment. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
2 | BASIS OF PRESENTATION | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the accompanying condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments except as otherwise described herein) considered necessary for a fair presentation have been included in the accompanying condensed consolidated financial statements. Certain prior year amounts in the accompanying condensed consolidated financial statements have been reclassified to conform to the current year presentation. All common stock share and per share data for all historical periods presented have been retroactively adjusted to reflect a two-for-one stock split distributed on May 7, 2014 (see Note 8). The consolidated results of operations for the nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the full fiscal year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of December 31, 2013 and 2012 and for each of the three years in the period ended December 31, 2013 included in the annual report of Trex Company, Inc. on Form 10-K, as filed with the Securities and Exchange Commission. | ||
The Company’s critical accounting policies are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. |
New_Accounting_Standards
New Accounting Standards | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Changes and Error Corrections [Abstract] | ' | |
New Accounting Standards | ' | |
3 | NEW ACCOUNTING STANDARDS | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers”. The new standard provides a single, comprehensive model for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The new standard requires an entity to recognize revenue at an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring goods or services to a customer. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and allows for either full retrospective or modified retrospective application. No early adoption is permitted. The Company is currently assessing the impact of the adoption of this new standard on its consolidated financial statements and footnote disclosures. |
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
4 | INVENTORIES | ||||||||
Inventories, at LIFO (last-in, first-out) value, consist of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Finished goods | $ | 21,494 | $ | 30,423 | |||||
Raw materials | 17,642 | 16,502 | |||||||
Total FIFO inventories | 39,136 | 46,925 | |||||||
Reserve to adjust inventories to LIFO value | (24,497 | ) | (24,497 | ) | |||||
Total LIFO inventories | $ | 14,639 | $ | 22,428 | |||||
Under the LIFO method, reductions in inventory cause a portion of the Company’s cost of sales to be based on historical costs rather than current year costs. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs. Changes in inventory levels and costs are reflected in the interim financial statements in the period in which they occur, except in cases where LIFO inventory liquidations are expected to be reinstated by the end of the year. There were no LIFO inventory liquidations recognized to cost of sales in the nine months ended September 30, 2014 or 2013. Since inventory levels and costs are subject to factors beyond management’s control, interim results are subject to the final year-end LIFO inventory valuation. |
Accrued_Expenses
Accrued Expenses | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued Expenses | ' | ||||||||
5 | ACCRUED EXPENSES | ||||||||
Accrued expenses consist of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued sales and marketing | $ | 10,626 | $ | 5,269 | |||||
Accrued compensation and benefits | 7,027 | 9,135 | |||||||
Accrued rent obligations | 2,649 | 1,787 | |||||||
Accrued manufacturing expenses | 1,080 | 1,107 | |||||||
Accrued legal contingency | 158 | 3,174 | |||||||
Other | 2,735 | 2,823 | |||||||
Total accrued expenses | $ | 24,275 | $ | 23,295 | |||||
Debt
Debt | 9 Months Ended | |
Sep. 30, 2014 | ||
Debt Disclosure [Abstract] | ' | |
Debt | ' | |
6 | DEBT | |
The Company’s outstanding debt consists of a revolving credit facility. | ||
Revolving Credit Facility | ||
The Company currently has an Amended Credit Agreement which provides the Company with one or more revolving loans in a collective maximum principal amount of $100 million. On December 17, 2013, the Company entered into a Second Amendment (“Second Amendment”) to the Amended Credit Agreement dated as of January 6, 2012, as amended by the First Amendment dated February 26, 2013 (the “Credit Agreement”). Pursuant to the Second Amendment, the Credit Agreement was amended to temporarily increase the maximum amount of the revolver loans from $100 million to $125 million during the period from January 1, 2014 through and including June 30, 2014 to meet seasonal cash requirements. No other material changes were made to the terms of the Credit Agreement. The maximum amount of the revolver loans reverted to $100 million on July 1, 2014. Pursuant to a Letter Agreement dated October 23, 2014, the termination date of the Credit Agreement was extended to January 9, 2016. | ||
Amounts drawn under the Credit Agreement are subject to a borrowing base consisting of certain accounts receivables, inventories, machinery and equipment and real estate. At September 30, 2014, the Company had $3 million of outstanding borrowings under its revolving credit facility and remaining available borrowing capacity of approximately $63 million. | ||
Compliance with Debt Covenants and Restrictions | ||
The Company’s ability to make scheduled principal and interest payments and to borrow and repay amounts under any outstanding revolving credit facility, and continue to comply with any loan covenants depends primarily on the Company’s ability to generate sufficient cash flow from operations. | ||
As of September 30, 2014, the Company was in compliance with all of the covenants contained in its debt agreements. Failure to comply with the loan covenants might cause lenders to accelerate the repayment obligations under the credit facility, which may be declared payable immediately based on a default. |
Financial_Instruments
Financial Instruments | 9 Months Ended | |
Sep. 30, 2014 | ||
Investments, All Other Investments [Abstract] | ' | |
Financial Instruments | ' | |
7 | FINANCIAL INSTRUMENTS | |
The Company considers the recorded value of its financial assets and liabilities, consisting primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities to approximate the fair value of the respective assets and liabilities at September 30, 2014 and December 31, 2013. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||
8 | 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 | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) available to common shareholders | $ | 8,913 | $ | (15,298 | ) | $ | 36,368 | $ | 19,495 | ||||||||
Denominator: | |||||||||||||||||
Basic weighted average shares outstanding | 31,606,264 | 33,660,212 | 32,538,832 | 33,772,710 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
SARs and options | 237,602 | — | 268,016 | 566,190 | |||||||||||||
Restricted stock | 164,915 | — | 159,469 | 168,010 | |||||||||||||
Diluted weighted average shares outstanding | 32,008,781 | 33,660,212 | 32,966,317 | 34,506,910 | |||||||||||||
Basic earnings (loss) per share | $ | 0.28 | $ | (0.45 | ) | $ | 1.12 | $ | 0.58 | ||||||||
Diluted earnings (loss) per share | $ | 0.28 | $ | (0.45 | ) | $ | 1.1 | $ | 0.56 | ||||||||
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 | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Restricted stock and stock options | 10,444 | 407,902 | 3,511 | 34,620 | |||||||||||||
Stock appreciation rights | 3,340 | 115,790 | 2,625 | 97,540 | |||||||||||||
Stock Split | |||||||||||||||||
In February 2014, the Company’s Board of Directors approved a two-for-one stock split of the Company’s common stock, par value $0.01. The stock split was in the form of a stock dividend distributed on May 7, 2014 to stockholders of record at the close of business on April 7, 2014. The stock split entitled each stockholder to receive one additional share of common stock, par value $0.01, for each share they held as of the record date. All common stock share and per share data for all periods presented in the accompanying unaudited condensed consolidated financial statements and notes thereto are presented on a post-split basis. Additionally, on April 30, 2014, the Company’s stockholders approved an amendment to the Company’s Restated Certificate of Incorporation to increase the number of authorized shares of common stock from 40 million to 80 million shares. | |||||||||||||||||
Stock Repurchase Programs | |||||||||||||||||
In February 2014, the Company’s Board of Directors authorized a common stock repurchase program of up to $50 million of the Company’s outstanding common stock (the “February 2014 Stock Repurchase Program”). This authorization has no expiration date. During the three months ended June 30, 2014, the Company repurchased 1,657,919 shares for $50.0 million at an average price of $30.16 per share, which completed the authorization under the February 2014 Stock Repurchase Program. The share and per share data for the repurchases are reflective of the two-for-one stock split distributed on May 7, 2014. | |||||||||||||||||
On October 23, 2014, the Company’s Board of Directors authorized a common stock repurchase program of up to two million shares of the Company’s outstanding common stock (the “October 2014 Stock Repurchase Program”). This authorization has no expiration date. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
9 | STOCK-BASED COMPENSATION | ||||||||||||||||
The Company has one stock-based compensation plan, the 2014 Stock Incentive Plan (the “Plan”), approved by the Company’s stockholders in April 2014. The Plan amended and restated in its entirety the Trex Company, Inc. 2005 Stock Incentive Plan. The Plan is administered by the Compensation Committee of the Company’s Board of Directors. Stock-based compensation is granted to officers, directors and certain key employees in accordance with the provisions of the Plan. The Plan provides for grants of stock options, restricted stock, restricted stock units, stock appreciation rights (“SARs”), and unrestricted stock. As of September 30, 2014, the total aggregate number of shares of the Company’s common stock that may be issued under the Plan is 6,420,000. | |||||||||||||||||
In 2014, the Company began granting performance-based restricted stock in addition to the time-based restricted stock it previously granted. The performance-based restricted shares have a three-year vesting period, vesting one-third each year based on target earnings before interest, taxes, depreciation and amortization, or “EBITDA”, for 1 year, cumulative 2 years and cumulative 3 years, respectively. With respect to each vesting, the number of shares that will vest will be between 0% and 200% of the target number of shares. | |||||||||||||||||
The fair value of each SAR is estimated on the date of grant using a Black-Scholes option-pricing formula. For SARs issued in the nine months ended September 30, 2014 and 2013, respectively, the assumptions shown in the following table were used: | |||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Weighted-average fair value of grants | $ | 18.02 | $ | 11.68 | |||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||
Average risk-free interest rate | 1.7 | % | 0.7 | % | |||||||||||||
Expected term (years) | 5 | 5 | |||||||||||||||
Expected volatility | 53 | % | 64 | % | |||||||||||||
The following table summarizes the Company’s stock-based compensation grants for the nine months ended September 30, 2014: | |||||||||||||||||
Stock Awards Granted | Weighted-Average | ||||||||||||||||
Grant Price | |||||||||||||||||
Per Share | |||||||||||||||||
Stock appreciation rights | 3,623 | $ | 38.17 | ||||||||||||||
Time-based restricted stock | 66,409 | $ | 32.69 | ||||||||||||||
Performance-based restricted stock | 42,676 | $ | 33.72 | ||||||||||||||
The Company recognizes stock-based compensation expense ratably over the period from the grant date to the earlier of: (1) the vesting date of the award, or (2) the date the grantee is eligible to retire without forfeiting the award. For performance-based restricted stock, expense is recognized ratably over the performance and vesting period of each tranche based on management’s judgment of the ultimate award that is likely to be paid out based on the achievement of the predetermined performance measures. The following table summarizes the Company’s stock-based compensation expense for the three and nine months ended September 30, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock appreciation rights | $ | 222 | $ | 307 | $ | 813 | $ | 945 | |||||||||
Time-based restricted stock | 769 | 667 | 2,247 | 1,790 | |||||||||||||
Performance-based restricted stock | 205 | — | 570 | — | |||||||||||||
Employee stock purchase plan | 21 | 10 | 42 | 46 | |||||||||||||
Total stock-based compensation | $ | 1,217 | $ | 984 | $ | 3,672 | $ | 2,781 | |||||||||
Total unrecognized compensation cost related to unvested awards as of September 30, 2014 was $5.2 million. The cost of these unvested awards is being recognized over the requisite vesting period of each award. |
Income_Taxes
Income Taxes | 9 Months Ended | |
Sep. 30, 2014 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Taxes | ' | |
10 | INCOME TAXES | |
As of December 31, 2013, the Company determined that it more likely than not will realize most of its deferred tax assets and, as a result, reversed a significant portion of its valuation allowance. As of September 30, 2014, the Company has a valuation allowance of $4.2 million, primarily related to certain state tax credits the Company estimates will expire before they are realized. The Company analyzes its position in each reporting period, considering all available positive and negative evidence, in determining the expected realization of its deferred tax assets. | ||
The Company’s effective tax rate for the nine months ended September 30, 2014 and 2013 was 37.6% and 1.5% respectively, which resulted in expense of $21.9 million and $0.3 million, respectively. The lower effective tax rate for the nine months ended September 30, 2013 was a direct result of the Company maintaining a full valuation allowance against its deferred tax assets. | ||
During the nine months ended September 30, 2014, the Company realized $12.7 million of excess tax benefits from stock-based awards and, accordingly, recorded an increase to additional paid-in capital. | ||
The Company operates in multiple tax jurisdictions and, in the normal course of business, its tax returns are subject to examination by various taxing authorities. Such examinations may result in future assessments by these taxing authorities, and the Company accrues a liability when it believes that it is more likely than not that benefits of tax positions will not be realized. The Company believes that adequate provisions have been made for all tax returns subject to examination. As of September 30, 2014, federal tax years 2011 through 2013 remain subject to examination. | ||
In September 2013, the Internal Revenue Service issued Treasury Decision 9636, which enacted final tax regulations regarding the capitalization and expensing of amounts paid to acquire, produce, or improve tangible property. The regulations also include guidance regarding the retirement of depreciable property. The Company has assessed the impact of the final regulations on its financial statements and does not expect any material adjustments or changes. |
Seasonality
Seasonality | 9 Months Ended | |
Sep. 30, 2014 | ||
Text Block [Abstract] | ' | |
Seasonality | ' | |
11 | SEASONALITY | |
The Company’s operating results have historically varied from quarter to quarter, often attributable to seasonal trends in the demand for Trex®. The Company has historically experienced lower net sales during the fourth quarter because holidays and adverse weather conditions in certain regions reduce the level of home improvement and construction activity. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Commitments and Contingencies | ' | ||||||||
12 | COMMITMENTS AND CONTINGENCIES | ||||||||
Contract Termination Costs | |||||||||
In anticipation of relocating its corporate headquarters, the Company entered into a lease agreement in 2005. The Company reconsidered and decided not to move its headquarters. The lease obligates the Company to lease 55,047 square feet of office space through June 30, 2019. As of September 30, 2014, the Company has executed subleases for 41,701 square feet of the leased space, 16,969 of which expires on December 31, 2014, and is currently marketing the remaining portion of the space to find a suitable tenant. The Company estimates that the present value of the estimated future sublease receipts, net of transaction costs, will be less than the Company’s remaining minimum lease payment obligations under its lease and has recorded a liability for the expected shortfall. During the nine months ended September 30, 2014, due to revisions to its estimate of future sublease receipts, the Company recorded a charge of $1.0 million to selling, general and administrative expenses. | |||||||||
To estimate future sublease receipts, the Company has assumed that existing subleases will be renewed or new subleases will be executed at rates consistent with rental rates in the current subleases or estimated market rates and that existing vacancies will be filled within one year. However, management cannot be certain that the timing of future subleases or the rental rates contained in future subleases will not differ from current estimates. Factors such as the availability of commercial office space, poor market conditions and subtenant preferences will influence the terms achieved in future subleases. The inability to sublet the office space in the future or unfavorable changes to key management assumptions used in the estimate of the future sublease receipts may result in material charges to selling, general and administrative expenses in future periods. | |||||||||
As of September 30, 2014, the minimum payments remaining under the Company’s lease relating to its reconsidered corporate relocation over the years ending December 31, 2014, 2015, 2016, 2017 and 2018 are $0.4 million, $1.7 million, $1.8 million, $1.8 million and $1.8 million, respectively, and $0.9 million in 2019. The minimum receipts remaining under the Company’s existing subleases over the years ending December 31, 2014, 2015, 2016, 2017 and 2018 are $0.3 million, $0.8 million, $0.7 million, $0.7 million and $0.7 million, respectively, and $0.4 million in 2019. | |||||||||
The following table provides information about the Company’s liability related to the lease (in thousands): | |||||||||
2014 | 2013 | ||||||||
Beginning balance, January 1 | $ | 1,787 | $ | 1,103 | |||||
Net rental receipts (payments) | (281 | ) | (410 | ) | |||||
Accretion of discount | 125 | 61 | |||||||
Increase in net estimated contract termination costs | 1,018 | 1,144 | |||||||
Ending balance, September 30 | $ | 2,649 | $ | 1,898 | |||||
Product Warranty | |||||||||
The Company warrants that its products will be free from material defects in workmanship and materials. This warranty generally extends for a period of 25 years for residential use and 10 years for commercial use. (With respect to TrexTrim™ and Trex Reveal® Railing, the warranty period is 25 years for both residential and commercial use.) With respect to the Company’s Transcend®, Enhance®, Select® and Universal Fascia product, the Company further warrants that the product will not fade in color more than a certain amount and will be resistant to permanent staining from food substances or mold (provided the stain is cleaned within seven days of appearance). This warranty extends for a period of 25 years for residential use and 10 years for commercial use. If there is a breach of such warranties, the Company has an obligation either to replace the defective product or refund the purchase price. | |||||||||
Historically, the Company has not had material numbers of claims submitted or settled under the provisions of its product warranties, with the exception of claims related to material produced at its Nevada facility prior to 2007 that exhibits surface flaking. The Company continues to receive and settle surface flaking claims and maintains a warranty reserve to provide for the settlement of these claims. Estimating the warranty reserve for surface flaking claims requires management to estimate (1) the number of claims to be settled with payment and (2) the average cost to settle each claim, both of which are subject to variables that are difficult to estimate. | |||||||||
To estimate the number of claims to be settled with payment, the Company utilizes actuarial techniques to quantify both the expected number of claims to be received and the percentage of those claims that will ultimately require payment. Estimates for both of these elements (number and percentage of claims that will ultimately require payment) are quantified using a range of assumptions derived from the recent claim count history and the identification of factors influencing the claim counts, including the downward trend in received claims due to the passage of time since production of the suspect material. For each of the various parameters used in the analysis, the assumed values in the actuarial valuation produce results that represent the Company’s best estimate for the ultimate number of claims to be settled with payment. The cost per claim varies due to a number of factors, including the size of affected decks, the type of replacement material used, the cost of production of replacement material and the method of claim settlement. | |||||||||
The Company monitors surface flaking claims activity each quarter for indications that its estimates require revision. Due to extensive use of decks during the summer outdoor season, variances to annual claims expectations are typically more meaningful during the latter part of the fiscal year. Through the third quarter of 2014, the number of claims received was lower than the Company’s expectations, while the average cost per claim was higher than the Company’s expectations for 2014. Based on claims activity experienced during the current year, the Company revised its assumed future number of claims and average cost per claim. The revised assumptions did not result in a change to the Company’s warranty reserve, which as of September 30, 2014, the Company believes is sufficient to cover future surface flaking obligations. | |||||||||
The Company’s analysis is based on currently known facts and a number of assumptions. Projecting future events such as the number of claims to be received, the number of claims that will require payment and the average cost of claims could cause the actual warranty liabilities to be higher or lower than those projected which could materially affect the Company’s financial condition, results of operations or cash flow. The Company estimates that the number of claims received will continue to decline over time and that the average cost per claim will remain relatively stable. If the level of claims received or average cost per claim differs materially from expectations, it could result in additional increases to the warranty reserve and reduced earnings and cash flows in future periods. The Company estimates that a 10% change in the expected number of remaining claims to be settled with payment or the expected cost to settle claims may result in approximately a $3.4 million change in the surface flaking warranty reserve. | |||||||||
The following is a reconciliation of the Company’s surface flaking warranty reserve (in thousands): | |||||||||
2014 | 2013 | ||||||||
Beginning balance, January 1 | $ | 40,312 | $ | 28,487 | |||||
Changes in estimates related to pre-existing warranties | — | 20,000 | |||||||
Settlements made during the period | (6,647 | ) | (5,947 | ) | |||||
Ending balance, September 30 | $ | 33,665 | $ | 42,540 | |||||
The remainder of the Company’s warranty reserve represents amounts accrued for non-surface flaking claims. | |||||||||
Legal Matters | |||||||||
On December 16, 2013, the United States District Court, Northern District of California Court granted final approval of the settlement with the law firm of Hagens Berman Sobol Shapiro LLP, relating to the previously reported class action lawsuit brought on behalf of Dean Mahan, and other named and similarly situated plaintiffs generally which alleged certain defects in the Company’s products relating to mold growth, color fading and color variation. As of the date of this report, the Company has distributed substantially all cash payments and rebate certificates under the settlement. Claimants who were denied relief could appeal Trex’s decision, and the deadline for appeals has now passed. The Company believes that payments to consumers for all relief under the settlement, even after determination of all appeals, will not exceed approximately $1.0 million. In addition to such amount, the Company previously paid $1.8 million related to this litigation, representing payment of attorneys’ fees to class counsel and named plaintiff awards in the nationwide settlement and the settlement of corollary cases brought in Indiana, Kentucky, New Jersey and Michigan, all as previously disclosed. | |||||||||
The Company has other lawsuits, as well as other claims, pending against it which are ordinary routine litigation and claims incidental to the business. Management has evaluated the merits of these other lawsuits and claims, and believes that their ultimate resolution will not have a material effect on the Company’s consolidated financial condition, results of operations, liquidity or competitive position. |
Financial_Instruments_Policies
Financial Instruments (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Financial Instruments | ' |
The Company considers the recorded value of its financial assets and liabilities, consisting primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities to approximate the fair value of the respective assets and liabilities at September 30, 2014 and December 31, 2013. | |
Share-based Compensation | ' |
The Company has one stock-based compensation plan, the 2014 Stock Incentive Plan (the “Plan”), approved by the Company’s stockholders in April 2014. The Plan amended and restated in its entirety the Trex Company, Inc. 2005 Stock Incentive Plan. The Plan is administered by the Compensation Committee of the Company’s Board of Directors. Stock-based compensation is granted to officers, directors and certain key employees in accordance with the provisions of the Plan. The Plan provides for grants of stock options, restricted stock, restricted stock units, stock appreciation rights (“SARs”), and unrestricted stock. As of September 30, 2014, the total aggregate number of shares of the Company’s common stock that may be issued under the Plan is 6,420,000. | |
The Company recognizes stock-based compensation expense ratably over the period from the grant date to the earlier of: (1) the vesting date of the award, or (2) the date the grantee is eligible to retire without forfeiting the award. For performance-based restricted stock, expense is recognized ratably over the performance and vesting period of each tranche based on management’s judgment of the ultimate award that is likely to be paid out based on the achievement of the predetermined performance measures. | |
Contract Termination Costs | ' |
Contract Termination Costs | |
In anticipation of relocating its corporate headquarters, the Company entered into a lease agreement in 2005. The Company reconsidered and decided not to move its headquarters. The lease obligates the Company to lease 55,047 square feet of office space through June 30, 2019. As of September 30, 2014, the Company has executed subleases for 41,701 square feet of the leased space, 16,969 of which expires on December 31, 2014, and is currently marketing the remaining portion of the space to find a suitable tenant. The Company estimates that the present value of the estimated future sublease receipts, net of transaction costs, will be less than the Company’s remaining minimum lease payment obligations under its lease and has recorded a liability for the expected shortfall. During the nine months ended September 30, 2014, due to revisions to its estimate of future sublease receipts, the Company recorded a charge of $1.0 million to selling, general and administrative expenses. | |
To estimate future sublease receipts, the Company has assumed that existing subleases will be renewed or new subleases will be executed at rates consistent with rental rates in the current subleases or estimated market rates and that existing vacancies will be filled within one year. However, management cannot be certain that the timing of future subleases or the rental rates contained in future subleases will not differ from current estimates. Factors such as the availability of commercial office space, poor market conditions and subtenant preferences will influence the terms achieved in future subleases. The inability to sublet the office space in the future or unfavorable changes to key management assumptions used in the estimate of the future sublease receipts may result in material charges to selling, general and administrative expenses in future periods. | |
Product Warranty | ' |
Product Warranty | |
The Company warrants that its products will be free from material defects in workmanship and materials. This warranty generally extends for a period of 25 years for residential use and 10 years for commercial use. (With respect to TrexTrim™ and Trex Reveal® Railing, the warranty period is 25 years for both residential and commercial use.) With respect to the Company’s Transcend®, Enhance®, Select® and Universal Fascia product, the Company further warrants that the product will not fade in color more than a certain amount and will be resistant to permanent staining from food substances or mold (provided the stain is cleaned within seven days of appearance). This warranty extends for a period of 25 years for residential use and 10 years for commercial use. If there is a breach of such warranties, the Company has an obligation either to replace the defective product or refund the purchase price. | |
Historically, the Company has not had material numbers of claims submitted or settled under the provisions of its product warranties, with the exception of claims related to material produced at its Nevada facility prior to 2007 that exhibits surface flaking. The Company continues to receive and settle surface flaking claims and maintains a warranty reserve to provide for the settlement of these claims. Estimating the warranty reserve for surface flaking claims requires management to estimate (1) the number of claims to be settled with payment and (2) the average cost to settle each claim, both of which are subject to variables that are difficult to estimate. | |
To estimate the number of claims to be settled with payment, the Company utilizes actuarial techniques to quantify both the expected number of claims to be received and the percentage of those claims that will ultimately require payment. Estimates for both of these elements (number and percentage of claims that will ultimately require payment) are quantified using a range of assumptions derived from the recent claim count history and the identification of factors influencing the claim counts, including the downward trend in received claims due to the passage of time since production of the suspect material. For each of the various parameters used in the analysis, the assumed values in the actuarial valuation produce results that represent the Company’s best estimate for the ultimate number of claims to be settled with payment. The cost per claim varies due to a number of factors, including the size of affected decks, the type of replacement material used, the cost of production of replacement material and the method of claim settlement. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Summary of Inventories, at LIFO Value | ' | ||||||||
Inventories, at LIFO (last-in, first-out) value, consist of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Finished goods | $ | 21,494 | $ | 30,423 | |||||
Raw materials | 17,642 | 16,502 | |||||||
Total FIFO inventories | 39,136 | 46,925 | |||||||
Reserve to adjust inventories to LIFO value | (24,497 | ) | (24,497 | ) | |||||
Total LIFO inventories | $ | 14,639 | $ | 22,428 | |||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Summary of Accrued Expenses | ' | ||||||||
Accrued expenses consist of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued sales and marketing | $ | 10,626 | $ | 5,269 | |||||
Accrued compensation and benefits | 7,027 | 9,135 | |||||||
Accrued rent obligations | 2,649 | 1,787 | |||||||
Accrued manufacturing expenses | 1,080 | 1,107 | |||||||
Accrued legal contingency | 158 | 3,174 | |||||||
Other | 2,735 | 2,823 | |||||||
Total accrued expenses | $ | 24,275 | $ | 23,295 | |||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Computation of Basic and Diluted 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 | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income (loss) available to common shareholders | $ | 8,913 | $ | (15,298 | ) | $ | 36,368 | $ | 19,495 | ||||||||
Denominator: | |||||||||||||||||
Basic weighted average shares outstanding | 31,606,264 | 33,660,212 | 32,538,832 | 33,772,710 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
SARs and options | 237,602 | — | 268,016 | 566,190 | |||||||||||||
Restricted stock | 164,915 | — | 159,469 | 168,010 | |||||||||||||
Diluted weighted average shares outstanding | 32,008,781 | 33,660,212 | 32,966,317 | 34,506,910 | |||||||||||||
Basic earnings (loss) per share | $ | 0.28 | $ | (0.45 | ) | $ | 1.12 | $ | 0.58 | ||||||||
Diluted earnings (loss) per share | $ | 0.28 | $ | (0.45 | ) | $ | 1.1 | $ | 0.56 | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ||||||||||||||||
The computation of diluted earnings per share excludes the following potentially dilutive securities because the effect would be anti-dilutive: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Restricted stock and stock options | 10,444 | 407,902 | 3,511 | 34,620 | |||||||||||||
Stock appreciation rights | 3,340 | 115,790 | 2,625 | 97,540 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Summary of Assumptions Used to Estimate Fair Value of Each SAR | ' | ||||||||||||||||
For SARs issued in the nine months ended September 30, 2014 and 2013, respectively, the assumptions shown in the following table were used: | |||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Weighted-average fair value of grants | $ | 18.02 | $ | 11.68 | |||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||
Average risk-free interest rate | 1.7 | % | 0.7 | % | |||||||||||||
Expected term (years) | 5 | 5 | |||||||||||||||
Expected volatility | 53 | % | 64 | % | |||||||||||||
Summary of Stock-Based Compensation Grants | ' | ||||||||||||||||
The following table summarizes the Company’s stock-based compensation grants for the nine months ended September 30, 2014: | |||||||||||||||||
Stock Awards Granted | Weighted-Average | ||||||||||||||||
Grant Price | |||||||||||||||||
Per Share | |||||||||||||||||
Stock appreciation rights | 3,623 | $ | 38.17 | ||||||||||||||
Time-based restricted stock | 66,409 | $ | 32.69 | ||||||||||||||
Performance-based restricted stock | 42,676 | $ | 33.72 | ||||||||||||||
Summary of Stock-Based Compensation Expense | ' | ||||||||||||||||
The following table summarizes the Company’s stock-based compensation expense for the three and nine months ended September 30, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock appreciation rights | $ | 222 | $ | 307 | $ | 813 | $ | 945 | |||||||||
Time-based restricted stock | 769 | 667 | 2,247 | 1,790 | |||||||||||||
Performance-based restricted stock | 205 | — | 570 | — | |||||||||||||
Employee stock purchase plan | 21 | 10 | 42 | 46 | |||||||||||||
Total stock-based compensation | $ | 1,217 | $ | 984 | $ | 3,672 | $ | 2,781 | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Summary of Liability Related to Lease | ' | ||||||||
The following table provides information about the Company’s liability related to the lease (in thousands): | |||||||||
2014 | 2013 | ||||||||
Beginning balance, January 1 | $ | 1,787 | $ | 1,103 | |||||
Net rental receipts (payments) | (281 | ) | (410 | ) | |||||
Accretion of discount | 125 | 61 | |||||||
Increase in net estimated contract termination costs | 1,018 | 1,144 | |||||||
Ending balance, September 30 | $ | 2,649 | $ | 1,898 | |||||
Summary of Reconciliation of Company's Warranty Reserve | ' | ||||||||
The following is a reconciliation of the Company’s surface flaking warranty reserve (in thousands): | |||||||||
2014 | 2013 | ||||||||
Beginning balance, January 1 | $ | 40,312 | $ | 28,487 | |||||
Changes in estimates related to pre-existing warranties | — | 20,000 | |||||||
Settlements made during the period | (6,647 | ) | (5,947 | ) | |||||
Ending balance, September 30 | $ | 33,665 | $ | 42,540 | |||||
Business_and_Organization_Addi
Business and Organization - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Segment | |
Accounting Policies [Abstract] | ' |
Number of operating segments of business | 1 |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) | 0 Months Ended |
7-May-14 | |
Accounting Policies [Abstract] | ' |
Retroactively adjusted stock split | 2 |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories, at LIFO Value (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $21,494 | $30,423 |
Raw materials | 17,642 | 16,502 |
Total FIFO inventories | 39,136 | 46,925 |
Reserve to adjust inventories to LIFO value | -24,497 | -24,497 |
Total LIFO inventories | $14,639 | $22,428 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Inventory Disclosure [Abstract] | ' | ' |
LIFO inventory liquidations | $0 | $0 |
Accrued_Expenses_Summary_of_Ac
Accrued Expenses - Summary of Accrued Expenses (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accrued sales and marketing | $10,626 | $5,269 |
Accrued compensation and benefits | 7,027 | 9,135 |
Accrued rent obligations | 2,649 | 1,787 |
Accrued manufacturing expenses | 1,080 | 1,107 |
Accrued legal contingency | 158 | 3,174 |
Other | 2,735 | 2,823 |
Total accrued expenses | $24,275 | $23,295 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 23, 2014 | Dec. 17, 2013 | Dec. 17, 2013 | Sep. 30, 2014 |
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | ||
Subsequent Event [Member] | Revolver Loans Second Amendment Portion Effective January 1, 2014 [Member] | Revolver Loans Second Amendment Portion Effective July 1, 2014 [Member] | Revolver Loans [Member] | |||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' |
Revolving loans in a collective maximum principal amount | ' | ' | ' | $125,000,000 | $100,000,000 | $100,000,000 |
Termination date of the Credit Agreement | ' | ' | 9-Jan-16 | ' | ' | ' |
Remaining available borrowing capacity | ' | 63,000,000 | ' | ' | ' | ' |
Outstanding borrowings under its revolving credit facility | $3,000,000 | $3,000,000 | ' | ' | ' | ' |
Stockholders_Equity_Computatio
Stockholders' Equity - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net income (loss) available to common shareholders | $8,913 | ($15,298) | $36,368 | $19,495 |
Denominator: | ' | ' | ' | ' |
Basic weighted average shares outstanding | 31,606,264 | 33,660,212 | 32,538,832 | 33,772,710 |
Effect of dilutive securities: | ' | ' | ' | ' |
SARs and options | 237,602 | ' | 268,016 | 566,190 |
Restricted stock | 164,915 | ' | 159,469 | 168,010 |
Diluted weighted average shares outstanding | 32,008,781 | 33,660,212 | 32,966,317 | 34,506,910 |
Basic earnings (loss) per share | $0.28 | ($0.45) | $1.12 | $0.58 |
Diluted earnings (loss) per share | $0.28 | ($0.45) | $1.10 | $0.56 |
Stockholders_Equity_Antidiluti
Stockholders' Equity - Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Restricted Stock and Stock Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from the computation of diluted earnings per share | 10,444 | 407,902 | 3,511 | 34,620 |
Stock Appreciation Rights [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from the computation of diluted earnings per share | 3,340 | 115,790 | 2,625 | 97,540 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | 3 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | 7-May-14 | Sep. 30, 2014 | 7-May-14 | Apr. 30, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | Apr. 30, 2014 | Jun. 30, 2014 | Feb. 28, 2014 | Oct. 23, 2014 |
Scenario, Previously Reported [Member] | February 2014 Stock Repurchase Program [Member] | February 2014 Stock Repurchase Program [Member] | October 2014 Stock Repurchase Program [Member] | |||||||
Subsequent Event [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock split description | ' | 'Each stockholder to receive one additional share of common stock, par value $0.01, for each share they held as of the record date. All common stock share and per share data for all periods presented in the accompanying unaudited condensed consolidated financial statements and notes thereto are presented on a post-split basis. | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | ' | $0.01 | $0.01 | ' | $0.01 | $0.01 | ' | ' | ' | ' |
Stock split conversion ratio | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of authorized shares of common stock | ' | 80,000,000 | ' | 80,000,000 | ' | 80,000,000 | 40,000,000 | ' | ' | ' |
Common stock repurchase authorized amount | ' | ' | ' | ' | ' | ' | ' | ' | $50 | ' |
Number of shares repurchased by the Company | ' | ' | ' | ' | ' | ' | ' | 1,657,919 | ' | ' |
Value of shares repurchased by the Company | ' | ' | ' | ' | ' | ' | ' | $50 | ' | ' |
Shares repurchased by the Company, Average price per share | ' | ' | ' | ' | ' | ' | ' | $30.16 | ' | ' |
Common stock repurchase program, authorized shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 |
Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of stock based compensation plans | 1 |
Unrecognized compensation cost related to unvested awards | $5.20 |
2014 Stock Incentive Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total aggregate number of shares of common stock that may be issued | 6,420,000 |
Performance-Based Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting Period | '3 years |
Share-Based Compensation Award, Tranche One [Member] | Performance-Based Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Stock-based Compensation vesting percentage | 33.33% |
Share-Based Compensation Award, Tranche Two [Member] | Performance-Based Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Stock-based Compensation vesting percentage | 33.33% |
Share-Based Compensation Award, Tranche Three [Member] | Performance-Based Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Stock-based Compensation vesting percentage | 33.33% |
Minimum [Member] | Performance-Based Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Percentage of target number of shares that will vest | 0.00% |
Maximum [Member] | Performance-Based Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Percentage of target number of shares that will vest | 200.00% |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value of Each SAR (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Weighted-average fair value of grants | $18.02 | $11.68 |
Dividend yield | 0.00% | 0.00% |
Average risk-free interest rate | 1.70% | 0.70% |
Expected term (years) | '5 years | '5 years |
Expected volatility | 53.00% | 64.00% |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Stock-Based Compensation Grants (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Stock Appreciation Rights [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Stock Awards Granted | 3,623 |
Weighted-Average Grant Price Per Share | $38.17 |
Time-Based Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Stock Awards Granted | 66,409 |
Weighted-Average Grant Price Per Share | $32.69 |
Performance-Based Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Stock Awards Granted | 42,676 |
Weighted-Average Grant Price Per Share | $33.72 |
StockBased_Compensation_Summar2
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $1,217 | $984 | $3,672 | $2,781 |
Stock Appreciation Rights [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 222 | 307 | 813 | 945 |
Time-Based Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 769 | 667 | 2,247 | 1,790 |
Performance-Based Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 205 | ' | 570 | ' |
Employee Stock Purchase Plan [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $21 | $10 | $42 | $46 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Valuation allowance | $4,200,000 | ' | $4,200,000 | ' |
Effective tax rate | ' | ' | 37.60% | 1.50% |
Income tax expense | 5,387,000 | 4,000 | 21,934,000 | 298,000 |
Excess tax benefits from stock-based awards | ' | ' | $12,700,000 | ' |
Earliest Tax Year [Member] | Federal Tax Jurisdiction [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Years subject to income tax examination | ' | ' | '2011 | ' |
Latest Tax Year [Member] | Federal Tax Jurisdiction [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Years subject to income tax examination | ' | ' | '2013 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Charge recorded due to revised estimate of sublease receipts | $1,018,000 | $1,144,000 |
Payments related to mold growth litigation | 1,800,000 | ' |
Expected total payments under settlement | 1,000,000 | ' |
Residential Use [Member] | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Warranty period | '25 years | ' |
Commercial Use [Member] | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Warranty period | '10 years | ' |
Surface Flaking Warranty Reserve [Member] | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Percentage change in warranty claims used as a threshold for disclosure | 10.00% | ' |
Change in warranty reserve for disclosure purposes only | 3,400,000 | ' |
Transcend, Enhance, Select and Universal Fascia Product [Member] | Residential Use [Member] | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Warranty period | '25 years | ' |
Transcend, Enhance, Select and Universal Fascia Product [Member] | Commercial Use [Member] | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Warranty period | '10 years | ' |
TrexTrim and Trex Reveal Railing [Member] | Commercial and Residential Use [Member] | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Warranty period | '25 years | ' |
Sublease [Member] | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Lease square feet | 41,701 | ' |
Contract Termination [Member] | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Lease square feet | 55,047 | ' |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for remainder of 2014 | 400,000 | ' |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2015 | 1,700,000 | ' |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2016 | 1,800,000 | ' |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2017 | 1,800,000 | ' |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2018 | 1,800,000 | ' |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2019 | 900,000 | ' |
Minimum receipts remaining under the Company's existing subleases for remainder of 2014 | 300,000 | ' |
Minimum receipts remaining under the Company's existing subleases for 2015 | 800,000 | ' |
Minimum receipts remaining under the Company's existing subleases for 2016 | 700,000 | ' |
Minimum receipts remaining under the Company's existing subleases for 2017 | 700,000 | ' |
Minimum receipts remaining under the Company's existing subleases for 2018 | 700,000 | ' |
Minimum receipts remaining under the Company's existing subleases for 2019 | $400,000 | ' |
Subleases Expiring December 31, 2014 [Member] | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Lease square feet | 16,969 | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Summary of Liability Related to Lease (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Beginning balance | $1,787 | $1,103 |
Net rental receipts (payments) | -281 | -410 |
Accretion of discount | 125 | 61 |
Increase in net estimated contract termination costs | 1,018 | 1,144 |
Ending balance | $2,649 | $1,898 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Summary of Reconciliation of Company's Warranty Reserve (Detail) (Surface Flaking Warranty Reserve [Member], USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Surface Flaking Warranty Reserve [Member] | ' | ' |
Warranties [Line Items] | ' | ' |
Beginning balance | $40,312 | $28,487 |
Changes in estimates related to pre-existing warranties | ' | 20,000 |
Settlements made during the period | -6,647 | -5,947 |
Ending balance | $33,665 | $42,540 |