Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 10, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | TREX | ||
Entity Registrant Name | TREX CO INC | ||
Entity Central Index Key | 1069878 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 32,020,203 | ||
Entity Public Float | $908.90 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $9,544 | $3,772 |
Accounts receivable, net | 36,391 | 37,338 |
Inventories | 23,747 | 22,428 |
Prepaid expenses and other assets | 6,288 | 3,145 |
Deferred income taxes | 9,271 | 9,497 |
Total current assets | 85,241 | 76,180 |
Property, plant and equipment, net | 98,716 | 100,783 |
Goodwill and other intangibles | 10,534 | 10,542 |
Other assets | 1,333 | 652 |
Total Assets | 195,824 | 188,157 |
Current Liabilities: | ||
Accounts payable | 20,050 | 14,891 |
Accrued expenses | 20,660 | 23,295 |
Accrued warranty | 8,744 | 9,000 |
Total current liabilities | 49,454 | 47,186 |
Deferred income taxes | 3,708 | 360 |
Non-current accrued warranty | 25,097 | 31,812 |
Other long-term liabilities | 4,180 | 2,183 |
Total Liabilities | 82,439 | 81,541 |
Commitments and contingencies | ||
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; 34,800,552 and 34,598,124 shares issued and 32,020,123 and 33,475,614 shares outstanding at December 31, 2014 and 2013, respectively | 348 | 346 |
Additional paid-in capital | 116,740 | 101,494 |
Retained earnings | 71,297 | 29,776 |
Treasury stock, at cost, 2,780,429 and 1,122,510 shares at December 31, 2014 and 2013, respectively | -75,000 | -25,000 |
Total Stockholders' Equity | 113,385 | 106,616 |
Total Liabilities and Stockholders' Equity | $195,824 | $188,157 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 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 | 34,800,552 | 34,598,124 |
Common stock, shares outstanding | 32,020,123 | 33,475,614 |
Treasury stock, shares | 2,780,429 | 1,122,510 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Net sales | $391,660 | $342,511 | $307,354 |
Cost of sales | 251,464 | 243,893 | 222,772 |
Gross profit | 140,196 | 98,618 | 84,582 |
Selling, general and administrative expenses | 72,370 | 73,967 | 71,907 |
Income from operations | 67,826 | 24,651 | 12,675 |
Interest expense, net | 878 | 602 | 8,946 |
Income before income taxes | 66,948 | 24,049 | 3,729 |
Provision (benefit) for income taxes | 25,427 | -10,549 | 1,009 |
Net income | 41,521 | 34,598 | 2,720 |
Basic earnings per common share | $1.28 | $1.03 | $0.08 |
Basic weighted average common shares outstanding | 32,319,649 | 33,589,682 | 32,247,184 |
Diluted earnings per common share | $1.27 | $1.01 | $0.08 |
Diluted weighted average common shares outstanding | 32,751,074 | 34,273,502 | 34,129,712 |
Comprehensive income | $41,521 | $34,598 | $2,720 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings (Deficit) [Member] | Treasury Stock [Member] |
In Thousands, except Share data | |||||
Beginning Balance at Dec. 31, 2011 | $92,499 | $329 | $99,712 | ($7,542) | |
Beginning Balance, Shares at Dec. 31, 2011 | 31,204,264 | ||||
Net income | 2,720 | 2,720 | |||
Employee stock purchase and option plans | 822 | 2 | 820 | ||
Employee stock purchase and option plans, Shares | 469,104 | ||||
Shares withheld for taxes on share-based payment awards | -5,524 | 1 | -5,525 | ||
Shares withheld for taxes on share-based payment awards, Shares | -74,302 | ||||
Stock-based compensation | 3,469 | 3,469 | |||
Stock-based compensation, Shares | 298,430 | ||||
Common stock issued upon conversion of notes | 11 | -11 | |||
Common stock issued upon conversion of notes, Shares | 2,123,490 | ||||
Ending Balance at Dec. 31, 2012 | 93,986 | 343 | 98,465 | -4,822 | |
Ending Balance, Shares at Dec. 31, 2012 | 34,020,986 | ||||
Net income | 34,598 | 34,598 | |||
Employee stock purchase and option plans | 4,032 | 3 | 4,029 | ||
Employee stock purchase and option plans, Shares | 542,670 | ||||
Shares withheld for taxes on share-based payment awards | -6,277 | -6,277 | |||
Shares withheld for taxes on share-based payment awards, Shares | -58,730 | ||||
Stock-based compensation | 3,811 | 3,811 | |||
Stock-based compensation, Shares | 93,198 | ||||
Excess tax benefits from stock compensation | 1,466 | 1,466 | |||
Shares repurchased under our publicly announced share repurchase programs | -25,000 | -25,000 | |||
Shares repurchased under our publicly announced share repurchase programs, Shares | -1,122,510 | 1,122,510 | |||
Ending Balance at Dec. 31, 2013 | 106,616 | 346 | 101,494 | 29,776 | -25,000 |
Ending Balance, Shares at Dec. 31, 2013 | 33,475,614 | 1,122,510 | |||
Net income | 41,521 | 41,521 | |||
Employee stock purchase and option plans | 747 | 1 | 746 | ||
Employee stock purchase and option plans, Shares | 133,133 | ||||
Shares withheld for taxes on share-based payment awards | -3,189 | -3,189 | |||
Shares withheld for taxes on share-based payment awards, Shares | -36,610 | ||||
Stock-based compensation | 4,807 | 1 | 4,806 | ||
Stock-based compensation, Shares | 105,905 | ||||
Excess tax benefits from stock compensation | 12,883 | 12,883 | |||
Shares repurchased under our publicly announced share repurchase programs | -50,000 | -50,000 | |||
Shares repurchased under our publicly announced share repurchase programs, Shares | -1,657,919 | 1,657,919 | |||
Ending Balance at Dec. 31, 2014 | $113,385 | $348 | $116,740 | $71,297 | ($75,000) |
Ending Balance, Shares at Dec. 31, 2014 | 32,020,123 | 2,780,429 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net income | $41,521 | $34,598 | $2,720 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 15,204 | 16,255 | 17,009 |
Debt discount amortization | 5,450 | ||
Deferred income taxes | 3,574 | -12,698 | 618 |
Stock-based compensation | 4,807 | 3,811 | 3,469 |
Loss on disposal of property, plant and equipment | 158 | 587 | 1,909 |
Excess tax benefits from stock compensation | -12,898 | -1,466 | |
Other non-cash adjustments | -245 | -337 | -314 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 867 | -10,844 | 2,660 |
Inventories | -1,319 | -4,907 | 11,376 |
Prepaid expenses and other assets | -624 | -213 | -405 |
Accounts payable | 5,159 | 3,731 | -731 |
Accrued expenses and other liabilities | -7,535 | 15,173 | 16,784 |
Income taxes receivable/payable | 9,973 | 1,518 | -102 |
Net cash provided by operating activities | 58,642 | 45,208 | 60,443 |
Investing Activities | |||
Expenditures for property, plant and equipment | -12,974 | -13,060 | -7,593 |
Proceeds from sales of property, plant and equipment | 66 | 176 | 3 |
Purchase of acquired company, net of cash acquired | -44 | -11 | |
Notes receivable, net | 79 | 187 | 117 |
Net cash used in investing activities | -12,873 | -12,697 | -7,484 |
Financing Activities | |||
Financing costs | -453 | -119 | -750 |
Restricted cash | 37,000 | ||
Borrowings under line of credit | 143,000 | 74,500 | 93,700 |
Principal payments under line of credit | -143,000 | -79,500 | -88,700 |
Principal payments under mortgages and notes | -91,875 | ||
Repurchases of common stock | -53,189 | -31,277 | -5,522 |
Proceeds from employee stock purchase and option plans | 747 | 4,032 | 821 |
Excess tax benefits from stock compensation | 12,898 | 1,466 | |
Net cash used in financing activities | -39,997 | -30,898 | -55,326 |
Net increase (decrease) in cash and cash equivalents | 5,772 | 1,613 | -2,367 |
Cash and cash equivalents at beginning of year | 3,772 | 2,159 | 4,526 |
Cash and cash equivalents at end of year | 9,544 | 3,772 | 2,159 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest, net of capitalized interest | 520 | 348 | 5,792 |
Cash paid for income taxes, net | $11,919 | $672 | $590 |
Business_and_Organization
Business and Organization | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Business and Organization | 1 | BUSINESS AND ORGANIZATION |
Trex Company, Inc. (together with its subsidiary, the “Company”), a Delaware corporation, was incorporated on September 4, 1998. The Company manufactures and distributes wood/plastic composite products, as well as related accessories, primarily for residential and commercial decking and railing applications. A majority of its products are manufactured in a proprietary process that combines waste wood fibers and scrap polyethylene. The Company operates in one business segment. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Summary of Significant Accounting Policies | 2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Basis of Accounting | |||||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and include the accounts of the Company and its wholly-owned subsidiary, Trex Wood-Polymer Espana, S.L. (“TWPE”). Intercompany accounts and transactions have been eliminated in consolidation. | |||||
TWPE was formed to hold the Company’s 35% equity interest in Denplax, S.A. (“Denplax”), a joint venture with a Spanish Company responsible for public environmental programs in southern Spain and with an Italian equipment manufacturer. The joint venture was formed to recycle polyethylene at a facility in El Ejido, Spain. The Company’s investment in Denplax is accounted for using the equity method. During 2010, the Company determined that its investment in Denplax and a related note receivable were no longer recoverable and recorded a $2.4 million charge to earnings to fully reserve the equity investment and note. Both the equity investment and note remain fully reserved as of December 31, 2014. | |||||
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 consolidated financial statements and related notes 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. | |||||
Use of Estimates | |||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. | |||||
Cash and Cash Equivalents | |||||
Cash equivalents consist of highly liquid investments purchased with original maturities of three months or less. | |||||
Concentrations and Credit Risk | |||||
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and trade accounts receivable. The Company from time to time may have bank deposits in excess of insurance limits of the Federal Deposit Insurance Corporation. As of December 31, 2014, substantially all deposits are maintained in one financial institution. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to its cash and cash equivalents. | |||||
The Company routinely assesses the financial strength of its customers and believes that its trade receivables credit risk exposure is limited. Trade receivables are carried at the original invoice amount less an estimate made for payment discounts and doubtful accounts. A valuation allowance is provided for known and anticipated credit losses and disputed amounts, as determined by management in the course of regularly evaluating individual customer receivables. This evaluation takes into consideration a customer’s financial condition and credit history, as well as current economic conditions. | |||||
In the years ended December 31, 2014, 2013 and 2012, sales to certain customers accounted for 10% or more of the Company’s total net sales. For the year ended December 31, 2014, one customer of the Company represented approximately 24% of the Company’s net sales. For the year ended December 31, 2013, one customer of the Company represented approximately 28% of the Company’s net sales. For the year ended December 31, 2012, two customers of the Company represented approximately 26% and 10% of the Company’s net sales. As of December 31, 2014, three customers represented 28%, 13%, and 11%, respectively, of the Company’s accounts receivable balance. | |||||
Approximately 38%, 44%, and 40% of the Company’s raw materials purchases for the years ended December 31, 2014, 2013 and 2012, respectively, were purchased from its four largest suppliers. | |||||
Inventories | |||||
Inventories are stated at the lower of cost (last-in, first-out, or “LIFO” method) or market value. The Company periodically reviews its inventory for slow moving or obsolete items and writes down the related products to estimated realizable value. The Company has not established significant reserves for estimated slow moving products or obsolescence. At December 31, 2014, the excess of the replacement cost of inventory over the LIFO value of inventory was approximately $25.3 million. Due to the nature of the LIFO valuation methodology, liquidations of inventories will result in a portion of the Company’s cost of sales being based on historical rather than current year costs. | |||||
A majority of the Company’s products are made in a proprietary process that combines waste wood fibers and scrap polyethylene. The Company grinds up scrap materials generated from its manufacturing process and inventories deemed no longer salable and reintroduces the “reclaimed” material into the manufacturing process as a substitute for raw materials. The reclaimed material is valued at the costs of the raw material components of the material. | |||||
Property, Plant and Equipment | |||||
Property, plant and equipment are stated at historical cost. The costs of additions and improvements are capitalized, while maintenance and repairs are expensed as incurred. Depreciation is provided using the straight-line method over the following estimated useful lives: | |||||
Buildings | 40 years | ||||
Machinery and equipment | 3-11 years | ||||
Furniture and equipment | 10 years | ||||
Forklifts and tractors | 5 years | ||||
Computer equipment and software | 3-5 years | ||||
Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the asset. | |||||
The Company reviews its long-lived assets, including property, plant and equipment, whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine the recoverability of its long-lived assets, the Company evaluates the probability that future estimated undiscounted net cash flows will be less than the carrying amount of the long-lived assets. If the estimated cash flows are less than the carrying amount of the long-lived assets, the assets are written down to their fair value. The Company’s estimates of anticipated cash flows and the remaining estimated useful lives of long-lived assets could be reduced in the future. As a result, the carrying amount of long-lived assets could be reduced in the future. | |||||
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 December 31, 2014, the Company has executed subleases for 24,732 square feet of the leased space 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 remaining minimum lease payment obligations under its lease and has recorded a liability for the expected shortfall. The Company recorded a $1.1 million charge in 2013 after a subtenant defaulted on its sublease and vacated the space. During 2014, the Company recorded $1.5 million in charges due to downward revisions of its estimate of future sublease receipts resulting from the departure of a subtenant that decided not to renew its sublease at the end of 2014. | |||||
To estimate future sublease receipts, the Company has assumed that the 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, 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 assumptions used in the estimate of the future sublease receipts may result in material charges to selling, general and administrative expenses in future periods. | |||||
Goodwill | |||||
Goodwill represents the excess of cost over net assets acquired resulting from the Company’s 1996 purchase of the Mobil Composite Products Division and the 2011 purchase of the assets of the Iron Deck Corporation. The Company evaluates the recoverability of goodwill annually or more frequently if an event occurs or circumstances change in the interim that would more likely than not reduce the fair value of the asset below its carrying amount. Goodwill is considered to be impaired when the net book value of the reporting unit exceeds its estimated fair value. | |||||
In the evaluation of goodwill for impairment, the Company first compares the fair value of the reporting unit to its carrying value. If the carrying value of a reporting unit exceeds its fair value, the goodwill of that reporting unit is potentially impaired and step two of the impairment analysis is performed. In step two of the analysis, an impairment loss is recorded equal to the excess of the carrying value of the reporting unit’s goodwill over its implied fair value should such a circumstance arise. | |||||
The Company measures fair value of the reporting unit based on a present value of future discounted cash flows and a market valuation approach. The discounted cash flows model indicates the fair value of the reporting unit based on the present value of the cash flows that the reporting unit is expected to generate in the future. Significant estimates in the discounted cash flows model include: the weighted average cost of capital; long-term rate of growth and profitability of the business; and working capital effects. The market valuation approach indicates the fair value of the business based on a comparison of the Company against certain market information. Significant estimates in the market approach model include identifying appropriate market multiples and assessing earnings before interest, income taxes, depreciation and amortization (EBITDA) in estimating the fair value of the reporting unit. | |||||
For the years ended December 31, 2014, 2013 and 2012, the Company completed its annual impairment test of goodwill and noted no impairment. The Company performs the annual impairment testing of its goodwill as of October 31 of each year. However, actual results could differ from the Company’s estimates and projections, which would affect the assessment of impairment. As of December 31, 2014, the Company had goodwill of $10.5 million that is subject to at least annual review of impairment. | |||||
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. The Company establishes warranty reserves to provide for estimated future expenses as a result of product defects that result in claims. Reserve estimates are based on management’s judgment, considering such factors as cost per claim, historical experience, anticipated rates of claims, and other available information. Management reviews and adjusts these estimates, if necessary, on a quarterly basis based on the differences between actual experience and historical estimates. | |||||
Treasury Stock | |||||
The Company records the repurchase of shares of its common stock at cost. These shares are considered treasury stock, which is a reduction to stockholders’ equity. Treasury stock is included in authorized and issued shares but excluded from outstanding shares. | |||||
Revenue Recognition | |||||
The Company recognizes revenue when title is transferred to customers, which is generally upon shipment of the product to the customer. The Company does not grant contractual product return rights to customers other than pursuant to its product warranty. The Company does not expect future product returns to be material and, consequently, does not maintain an allowance for product returns. | |||||
The Company records all shipping and handling fees in sales and records all of the related costs in cost of sales. The Company offers sales incentive programs to dealers and distributors, including rebates, pricing discounts, favorable payment terms and cooperative advertising, many of which result in cash consideration made to dealers and distributors. The Company accounts for consideration made pursuant to these programs in accordance with accounting guidance that governs consideration given by a vendor to a customer. With the exception of cooperative advertising, the Company classifies sales incentives as a reduction in revenue in “Net sales.” Sales incentives are recorded in the period in which they are earned by customers. The Company’s cooperative advertising program meets the requirements for exclusion from net sales and the costs are recorded as expenses in “Selling, general and administrative expenses” in the accompanying consolidated statements of comprehensive income. Cooperative advertising costs are expensed as incurred. | |||||
Stock-Based Compensation | |||||
The Company measures stock-based compensation at the grant date of the award based on the fair value. For stock options, stock appreciation rights and time-based restricted stock, stock-based compensation is recognized on a straight line basis over the vesting periods of the award, net of an estimated forfeiture rate. 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 predetermined performance measures. Stock-based compensation expense is included in “Selling, general and administrative expenses” in the accompanying consolidated statements of comprehensive income. | |||||
Income Taxes | |||||
The Company recognizes deferred tax assets and liabilities based on the difference between the financial statement basis and tax basis of assets and liabilities using enacted rates expected to be in effect during the year in which the differences reverse. The Company assesses the likelihood that its deferred tax assets will be realized. Deferred tax assets are reduced by a valuation allowance when, after considering all available positive and negative evidence, it is determined that it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. | |||||
At 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 the valuation allowance against all but a few specific items primarily related to state tax credits it estimates will expire before they are realized. As of December 31, 2014, the Company continues to have a valuation allowance of $4.5 million against these deferred tax assets. The Company analyzes its position in subsequent reporting periods, considering all available positive and negative evidence, in determining the expected realization of its deferred tax assets. | |||||
Research and Development Costs | |||||
Research and development costs are expensed as incurred. For the years ended December 31, 2014, 2013 and 2012, research and development costs were $2.3 million, $2.9 million and $2.9 million, respectively, and have been included in “Selling, general and administrative expenses” in the accompanying consolidated statements of comprehensive income. | |||||
Advertising Costs | |||||
The Company expenses its branding and advertising communication costs as incurred. Significant production costs are deferred and recognized as expense in the period that the related advertisement is first used. At December 31, 2014 and December 31, 2013, $0.5 million and $0.5 million, respectively, were included in prepaid expenses for production costs. | |||||
For the years ended December 31, 2014, 2013 and 2012, branding expenses, including advertising expenses as described above, were $20.8 million, $20.9 million and $20.5 million, respectively. | |||||
Fair Value of 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 December 31, 2014 and 2013. | |||||
New Accounting Standards Not Yet Adopted | |||||
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 and has not yet selected a method of adoption. | |||||
Reclassifications | |||||
Certain prior year amounts have been reclassified to conform to the current year presentation. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | 3 | INVENTORIES | |||||||
Inventories (at LIFO value) consist of the following as of December 31 (in thousands): | |||||||||
2014 | 2013 | ||||||||
Finished goods | $ | 32,756 | $ | 30,423 | |||||
Raw materials | 16,290 | 16,502 | |||||||
Total FIFO inventories | 49,046 | 46,925 | |||||||
Reserve to adjust inventories to LIFO value | (25,299 | ) | (24,497 | ) | |||||
Total LIFO inventories | $ | 23,747 | $ | 22,428 | |||||
Inventory is stated at the lower of LIFO cost or net realizable value. The Company periodically reviews its inventory for slow moving or obsolete items and writes down the related products to estimated net realizable value. | |||||||||
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. During the year ended December 31, 2012, the Company recognized to cost of sales a $4.5 million benefit due to a reduction in inventory. No such inventory reduction occurred during the years ended December 31, 2014 and 2013. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | 4 | PROPERTY, PLANT AND EQUIPMENT | |||||||
Property, plant and equipment consist of the following as of December 31 (in thousands): | |||||||||
2014 | 2013 | ||||||||
Building and improvements | $ | 50,394 | $ | 48,774 | |||||
Machinery and equipment | 203,496 | 195,873 | |||||||
Furniture and fixtures | 2,237 | 2,062 | |||||||
Forklifts and tractors | 6,052 | 6,191 | |||||||
Computer equipment | 8,120 | 8,353 | |||||||
Construction in process | 6,707 | 7,619 | |||||||
Land | 8,858 | 8,858 | |||||||
Total property, plant and equipment | 285,864 | 277,730 | |||||||
Accumulated depreciation | (187,148 | ) | (176,947 | ) | |||||
Total property, plant and equipment, net | $ | 98,716 | $ | 100,783 | |||||
The Company had construction in process as of December 31, 2014 of approximately $6.7 million. The Company expects that the construction in process will be completed and put into service in the year ending December 31, 2015. | |||||||||
Depreciation expense for the years ended December 31, 2014, 2013, and 2012 totaled $14.8 million, $15.9 million and $16.5 million, respectively. |
Accrued_Expenses
Accrued Expenses | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Expenses | 5 | ACCRUED EXPENSES | |||||||
Accrued expenses consist of the following (in thousands): | |||||||||
2014 | 2013 | ||||||||
Accrued compensation and benefits | $ | 9,201 | $ | 9,135 | |||||
Accrued sales and marketing costs | 5,963 | 5,269 | |||||||
Accrued rent obligations | 1,372 | 1,787 | |||||||
Accrued manufacturing costs | 1,307 | 1,107 | |||||||
Accrued legal contingency | 301 | 3,174 | |||||||
Other | 2,516 | 2,823 | |||||||
Total accrued expenses | $ | 20,660 | $ | 23,295 | |||||
Debt
Debt | 12 Months Ended | ||
Dec. 31, 2014 | |||
Debt Disclosure [Abstract] | |||
Debt | 6 | DEBT | |
The Company’s debt consists of a revolving credit facility. At December 31, 2014, the Company had no outstanding indebtedness, and the interest rate on the revolving credit facility was 1.3%. | |||
Revolving Credit Facility | |||
On November 20, 2014, the Company entered into a Second Amended and Restated Credit Agreement (the “Second Amended Credit Agreement”) with Branch Banking and Trust Company (“BB&T”), as a Lender, Administrative Agent, Swing Line Lender and Letter of Credit Issuer; Citibank, N.A. and Bank of America, N.A., each as a Lender, and BB&T Capital Markets, as Lead Arranger. The Second Amended Credit Agreement amended and restated the Amended and Restated Credit Agreement dated as of January 6, 2012 by and among the Company, as borrower; BB&T as Lender, Administrative Agent, Swing Line Lender, Letter of Credit Issuer and a Collateral Agent; Wells Fargo Capital Finance, LLC, as a Lender and a Collateral Agent; and BB&T Capital Markets, as Lead Arranger, and as further amended (the “Prior Credit Agreement”). Under the Prior Credit Agreement, BB&T and Wells Fargo provided the Company with one or more revolving loans in a collective maximum principal amount of $100 million. The Second Amended Credit Agreement terminated the Revolver Notes and Swing Advance Notes under the Prior Credit Agreement. No additional fees were due or owing as a result of the termination of the aforementioned agreements. | |||
The Second Amended Credit Agreement provides the Company with one or more revolving loans in a collective maximum principal amount of $150 million from January 1 through June 30 of each year, reducing to a maximum principal amount of $100 million from July 1 through December 31 of each year (the “Revolving Loan Limit”) throughout the term, which ends November 20, 2019. | |||
Included within the Revolving Loan Limit are sublimits for a letter of credit facility in an amount not to exceed $15 million and swing advances in an aggregate principal amount at any time outstanding not to exceed $5 million. The Revolver Loans, the Letter of Credit Facility and the Swing Advance loans are for the purpose of raising working capital and supporting general business operations. The Company is not obligated to borrow any amount under the Revolving Loan Limit. Additionally, within the Revolving Loan Limit, the Company may borrow, repay, and reborrow, at any time or from time to time while the Revolving Loans are in effect. | |||
Base Rate Advances (as defined in the Second Amended Credit Agreement) under the Revolver Loans and the Swing Advances accrue interest at the Base Rate plus the Applicable Margin (as defined in the Second Amended Credit Agreement) and Euro-dollar Advances for the Revolver Loans and Swing Advances accrue interest at the Adjusted London InterBank Offered Rate plus the Applicable Margin (as defined in the Second Amended Credit Agreement). Repayment of all then outstanding principal, interest, fees and costs is due on November 20, 2019. | |||
The Company shall reimburse BB&T for all amounts payable, including interest, under a Letter of Credit at the earlier of (i) the date set forth in the application or (ii) one business day after the payment under such Letter of Credit by BB&T. | |||
The Second Amended Credit Agreement is secured by interest in real property owned by us and certain collateral (as described in the Second Amended and Restated Security Agreement and Intellectual Property Security Agreement). | |||
At December 31, 2014, the Company had no outstanding borrowings under the Revolver Loans and additional available borrowing capacity of approximately $100 million. | |||
Compliance with Debt Covenants and Restrictions. The Company’s ability to make scheduled principal and interest payments, borrow and repay amounts under any outstanding revolving credit facility and continue to comply with any loan covenants depends primarily on its ability to generate sufficient cash flow from operations. To remain in compliance with financial covenants in the Second Amended Credit Agreement, the Company is required to maintain specified financial ratios based on levels of debt, fixed charges, and earnings (excluding extraordinary gains and extraordinary non-cash losses) before interest, taxes, depreciation and amortization, all of which are subject to the risks of the business, some of which are discussed in this report under “Risk Factors.” The Company was in compliance with all covenants contained in Second Amended Credit Agreement at December 31, 2014. Under the Second Amended Credit Agreement, the material financial covenants and restrictions are as follows: | |||
(a) | Fixed Charge Coverage Ratio. The Fixed Charge Coverage Ratio is not permitted to be less than 1.5 to 1.0, measured as of the end of each Fiscal Quarter, commencing with the Fiscal Quarter ended September 30, 2014. | ||
(b) | Consolidated Debt to Consolidated EBITDA Ratio. The Consolidated Debt to Consolidated EBITDA Ratio is not permitted to exceed 3.00 to 1.0 measured as of the end of each Fiscal Quarter (and in the case of Consolidated EBITDA, for the four-quarter period ending on such date). | ||
Failure to comply with the financial covenants in the Second Amended Credit Agreement could be considered a default of repayment obligations and, among other remedies, could accelerate payment of any amounts outstanding under the Second Amended Credit Agreement. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Stockholders' Equity | 7 | 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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 41,521 | $ | 34,598 | $ | 2,720 | |||||||
Denominator: | |||||||||||||
Basic weighted average shares outstanding | 32,319,649 | 33,589,682 | 32,247,184 | ||||||||||
Effect of dilutive securities: | |||||||||||||
SARS and options | 262,730 | 510,706 | 812,964 | ||||||||||
Restricted stock | 168,695 | 173,114 | 103,598 | ||||||||||
Convertible notes | — | — | 965,966 | ||||||||||
Diluted weighted average shares outstanding | 32,751,074 | 34,273,502 | 34,129,712 | ||||||||||
Basic earnings per share | $ | 1.28 | $ | 1.03 | $ | 0.08 | |||||||
Diluted earnings per share | $ | 1.27 | $ | 1.01 | $ | 0.08 | |||||||
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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Restricted stock and stock options | 2,633 | 118,596 | 234,644 | ||||||||||
Stock appreciation rights | 1,969 | 73,154 | 242,412 | ||||||||||
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 consolidated financial statements and related notes 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 | |||||||||||||
On October 24, 2013, the Board of Directors authorized a common stock repurchase program, expiring on February 10, 2014, of up to $30 million of our outstanding common stock (the “October 2013 Stock Repurchase Program”). The Company made no repurchases under the October 2013 Stock Repurchase Program before it expired. | |||||||||||||
On February 19, 2014, the 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 had 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 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. As of December 31, 2014, no repurchases were made under the October 2014 Stock Repurchase Program. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stock-Based Compensation | 8 | STOCK-BASED COMPENSATION | |||||||||||||||
On April 30, 2014, the Company’s stockholders approved the Trex Company, Inc. 2014 Stock Incentive Plan (“the Plan”), which was previously approved by the Board of Directors on February 19, 2014. The Plan amended and restated in its entirety the Trex Company, Inc. 2005 Stock Incentive Plan, as previously disclosed. 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. The total aggregate number of shares of the Company’s common stock that may be issued under the Plan is 6,420,000, an increase of 60,000 shares from the previous plan and adjusted to reflect the two-for-one stock split distributed on May 7, 2014. | |||||||||||||||||
The Company recognizes stock-based compensation expense ratably over the period from 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. For the employee stock purchase plan, compensation expense is recognized related to the discount on purchases. The following table summarizes the Company’s stock-based compensation expense for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Time-based restricted stock | $ | 2,974 | $ | 2,461 | $ | 2,035 | |||||||||||
Performance-based restricted stock | 727 | — | — | ||||||||||||||
Stock appreciation rights | 1,035 | 1,251 | 1,369 | ||||||||||||||
Employee stock purchase plan | 71 | 99 | 65 | ||||||||||||||
Total stock-based compensation | $ | 4,807 | $ | 3,811 | $ | 3,469 | |||||||||||
Stock-based compensation expense is included in “Selling, general and administrative expenses” in the accompanying consolidated statements of comprehensive income. | |||||||||||||||||
Time-Based Restricted Stock | |||||||||||||||||
The fair value of time-based restricted stock is determined based on the closing price of the Company’s shares on the grant date. Shares of time-based restricted stock vest based on the terms of the awards. Unvested time-based restricted stock is generally forfeitable upon termination of a holder’s service as an employee unless the individual’s service is terminated due to retirement, death or permanent disability. The total fair value of time-based restricted shares vested for the years ended December 31, 2014, 2013 and 2012 was $3.9 million, $3.1 million, and $2.5 million, respectively. At December 31, 2014, there was $2.8 million of total compensation expense related to unvested time-based restricted stock remaining to be recognized over a weighted-average period of approximately 1.5 years. | |||||||||||||||||
Time-based restricted stock activity under the Plan and all predecessor stock incentive plans is as follows: | |||||||||||||||||
Time-based | Weighted-Average | ||||||||||||||||
Restricted Stock | Grant Price | ||||||||||||||||
Per Share | |||||||||||||||||
Nonvested at December 31, 2011 | 320,350 | $ | 11.5 | ||||||||||||||
Granted | 313,854 | $ | 13.59 | ||||||||||||||
Vested | (189,410 | ) | $ | 13.44 | |||||||||||||
Forfeited | (15,424 | ) | $ | 12.74 | |||||||||||||
Nonvested at December 31, 2012 | 429,370 | $ | 12.08 | ||||||||||||||
Granted | 94,030 | $ | 22.21 | ||||||||||||||
Vested | (139,594 | ) | $ | 22.28 | |||||||||||||
Forfeited | (832 | ) | $ | 16.16 | |||||||||||||
Nonvested at December 31, 2013 | 382,974 | $ | 13.78 | ||||||||||||||
Granted | 66,511 | $ | 32.7 | ||||||||||||||
Vested | (116,641 | ) | $ | 33.73 | |||||||||||||
Forfeited | (3,282 | ) | $ | 16.61 | |||||||||||||
Nonvested at December 31, 2014 | 329,562 | $ | 18.89 | ||||||||||||||
Performance-based Restricted Stock | |||||||||||||||||
In 2014, the Company began granting performance-based restricted stock in addition to the time-based restricted stock it previously granted. The fair value of performance-based restricted stock is determined based on the closing price of the Company’s shares on the grant date. Unvested performance-based restricted stock is generally forfeitable upon termination of a holder’s service as an employee unless the individual’s service is terminated due to retirement, death or permanent disability. 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. As of December 31, 2014, no performance-based restricted shares had vested. At December 31, 2014, there was $0.6 million of total compensation expense related to unvested performance-based restricted stock remaining to be recognized over a weighted-average period of approximately 1.6 years. | |||||||||||||||||
Performance-based restricted stock activity under the Plan is as follows: | |||||||||||||||||
Performance-based | Weighted-Average | ||||||||||||||||
Restricted Stock | Grant Price | ||||||||||||||||
Per Share | |||||||||||||||||
Nonvested at December 31, 2013 | — | $ | — | ||||||||||||||
Granted | 42,676 | $ | 33.72 | ||||||||||||||
Vested | — | $ | — | ||||||||||||||
Forfeited | — | $ | — | ||||||||||||||
Nonvested at December 31, 2014 | 42,676 | $ | 33.72 | ||||||||||||||
Stock Appreciation Rights | |||||||||||||||||
SARs are granted with a grant price equal to the closing market price of the Company’s common stock on the date of grant. These awards expire ten years after the date of grant and vest based on the terms of the individual awards. The SARs are generally forfeitable upon termination of a holder’s service as an employee or director unless the individual’s service is terminated due to retirement, death or permanent disability. The Company recognizes compensation cost on a straight-line basis over the vesting period for the award. In 2006, the Company began the use of SARs instead of stock options. | |||||||||||||||||
As of December 31, 2014, there was $0.5 million of unrecognized compensation cost related to SARs expected to be recognized over a weighted-average period of approximately 6.5 years. The fair value of each SAR is estimated on the date of grant using a Black-Scholes option-pricing model. For SARs issued in the years ended December 31, 2014, 2013 and 2012, respectively, the assumptions shown in the following table were used: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Average risk-free interest rate | 1.7 | % | 0.7 | % | 0.8 | % | |||||||||||
Expected term (years) | 5 | 5 | 5 | ||||||||||||||
Expected volatility | 52.6 | % | 63.7 | % | 65.9 | % | |||||||||||
Expected Volatility. Volatility is a measure of the amount by which a financial variable such as a share price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. The Company has used the historical volatility over the average expected term of the options granted as the expected volatility. | |||||||||||||||||
Risk-Free Interest Rate. The Company uses the U.S. Treasury rate having a term that most closely resembles the expected term of the option. | |||||||||||||||||
Expected Term. The expected term is the period of time that the SARs granted is expected to remain unexercised. SARs granted during the year ended December 31, 2014 had a maximum term of ten years. The Company used historical exercise behavior with further consideration given to the class of employees to whom the equity awards were granted to estimate the expected term of the SAR. | |||||||||||||||||
The forfeiture rate is the estimated percentage of equity awards granted that are expected to be forfeited or canceled before becoming fully vested. The Company estimates forfeitures based on historical experience with further consideration given to the class of employees to whom the equity awards were granted. | |||||||||||||||||
The weighted-average grant date fair value of SARs granted during the years ended December 31, 2014, 2013 and 2012 was $17.78, $11.67, and $7.06, respectively. | |||||||||||||||||
SAR activity under the Plan and all predecessor stock incentive plans is as follows: | |||||||||||||||||
SARs | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Grant | Remaining | Value as of | |||||||||||||||
Price | Contractual | December 31, | |||||||||||||||
Per Share | Life (Years) | 2014 | |||||||||||||||
Outstanding at December 31, 2011 | 2,325,410 | $ | 6.59 | ||||||||||||||
Granted | 201,828 | $ | 12.88 | ||||||||||||||
Exercised | (1,135,906 | ) | $ | 6.54 | |||||||||||||
Canceled | (16,952 | ) | $ | 12.08 | |||||||||||||
Outstanding at December 31, 2012 | 1,374,380 | $ | 9.28 | ||||||||||||||
Granted | 121,176 | $ | 21.95 | ||||||||||||||
Exercised | (749,334 | ) | $ | 7.7 | |||||||||||||
Canceled | (7,028 | ) | $ | 13.1 | |||||||||||||
Outstanding at December 31, 2013 | 739,194 | $ | 12.93 | ||||||||||||||
Granted | 3,866 | $ | 37.88 | ||||||||||||||
Exercised | (218,826 | ) | $ | 10.96 | |||||||||||||
Canceled | (8,404 | ) | $ | 4.74 | |||||||||||||
Outstanding at December 31, 2014 | 515,830 | $ | 13.98 | 6.5 | $ | 14,754,320 | |||||||||||
Vested at December 31, 2014 | 383,488 | $ | 12.55 | 6.1 | $ | 11,514,749 | |||||||||||
Exercisable at December 31, 2014 | 383,488 | $ | 12.55 | 6.1 | $ | 11,514,749 | |||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
The Company has an employee stock purchase plan (“ESPP”) that permits eligible employees to purchase shares of common stock of the Company at a purchase price which is the lesser of 85% of the market price on either the first day of the calendar quarter or the last day of the calendar quarter. Eligible employees may elect to participate in the plan by authorizing payroll deductions of up to 15% of gross compensation for each payroll period. On the last day of each quarter, each participant’s contribution account is used to purchase the maximum number of whole shares of common stock determined by dividing the contribution account’s balance by the purchase price. The aggregate number of shares of common stock that may be purchased under the plan is 600,000, adjusted to reflect the two-for-one stock split distributed on May 7, 2014. Through December 31, 2014, employees had purchased approximately 407,000 shares under the plan. | |||||||||||||||||
Stock Options | |||||||||||||||||
Stock options are granted with an exercise price equal to the closing market price of the Company’s common stock on the date of grant. These awards expire ten years after the date of grant and vest based on the terms of the individual awards. The options are generally forfeitable upon termination of a holder’s service as an employee or director, unless the individual’s service is terminated due to retirement, death or permanent disability. The fair value of each stock option award is estimated on the date of grant using a Black-Scholes option-pricing model. The Company recognizes compensation cost on a straight-line basis over the vesting period for the award. Prior to 2006, the Company granted stock options and all stock options outstanding at December 31, 2014 are fully vested. In 2006, the Company began the use of SARs instead of stock options. | |||||||||||||||||
Stock option activity under the Plan and all predecessor stock incentive plans is as follows: | |||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value as of | |||||||||||||||
Price | Contractual | December 31, | |||||||||||||||
Per Share | Life (Years) | 2014 | |||||||||||||||
Outstanding at December 31, 2011 | 290,138 | $ | 19.04 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Exercised | (46,378 | ) | $ | 15.68 | |||||||||||||
Canceled | (2,484 | ) | $ | 10 | |||||||||||||
Outstanding at December 31, 2012 | 241,276 | $ | 20.19 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Exercised | (186,968 | ) | $ | 24.92 | |||||||||||||
Canceled | (12,020 | ) | $ | 18.16 | |||||||||||||
Outstanding at December 31, 2013 | 42,288 | $ | 20.05 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Exercised | (27,942 | ) | $ | 35.73 | |||||||||||||
Canceled | (1,188 | ) | $ | 17.92 | |||||||||||||
Outstanding at December 31, 2014 | 13,158 | $ | 23.36 | 0.2 | $ | 252,963 | |||||||||||
Vested at December 31, 2014 | 13,158 | $ | 23.36 | 0.2 | $ | 252,963 | |||||||||||
Exercisable at December 31, 2014 | 13,158 | $ | 23.36 | 0.2 | $ | 252,963 |
Leases
Leases | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Leases | 9 | LEASES | |||
The Company leases office space, storage warehouses and certain office and plant equipment under various operating leases. Minimum annual payments under these non-cancelable leases as of December 31, 2014 were as follows (in thousands): | |||||
Year Ending December 31, | |||||
2015 | $ | 6,753 | |||
2016 | 5,490 | ||||
2017 | 5,370 | ||||
2018 | 5,308 | ||||
2019 | 4,467 | ||||
Thereafter | 10,730 | ||||
Total minimum lease payments | $ | 38,118 | |||
For the years ended December 31, 2014, 2013 and 2012, the Company recognized rental expenses of approximately $7.5 million, $6.5 million and $7.5 million, respectively. | |||||
For information related to the Company’s reconsidered corporate headquarters lease agreement, see Note 12. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |
Dec. 31, 2014 | ||
Postemployment Benefits [Abstract] | ||
Employee Benefit Plans | 10 | EMPLOYEE BENEFIT PLANS |
The Company has a 401(k) Profit Sharing Plan for the benefit of all employees who meet certain eligibility requirements. The plan covers substantially all of the Company’s full-time employees. The plan documents provide for the Company to match contributions equal to 100% of an employee’s contribution to the plan up to 6% of base salary. The Company’s contributions to the plan totaled $2.0 million, $1.8 million and $1.6 million for the years ended December 31, 2014, 2013 and 2012. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 11 | INCOME TAXES | |||||||||||
Income tax provision (benefit) for the years ended December 31, 2014, 2013 and 2012 consists of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current income tax provision: | |||||||||||||
Federal | $ | 18,722 | $ | 1,745 | $ | 303 | |||||||
State | 3,131 | 404 | 88 | ||||||||||
21,853 | 2,149 | 391 | |||||||||||
Deferred income tax provision (benefit): | |||||||||||||
Federal | 3,118 | (11,182 | ) | 510 | |||||||||
State | 456 | (1,516 | ) | 108 | |||||||||
3,574 | (12,698 | ) | 618 | ||||||||||
Total income tax provision (benefit) | $ | 25,427 | $ | (10,549 | ) | $ | 1,009 | ||||||
The income tax provision (benefit) differs from the amount of income tax determined by applying the U.S. federal statutory rate to income before taxes as a result of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. federal statutory taxes | $ | 23,432 | $ | 8,417 | $ | 1,305 | |||||||
State and local taxes, net of U.S. federal benefit | 2,856 | 1,061 | (418 | ) | |||||||||
Permanent items | (868 | ) | 225 | 198 | |||||||||
Federal credits | (214 | ) | (566 | ) | (54 | ) | |||||||
Other | (43 | ) | 244 | 46 | |||||||||
Increase (decrease) in valuation allowance | 264 | (19,930 | ) | (68 | ) | ||||||||
Total income tax provision (benefit) | $ | 25,427 | $ | (10,549 | ) | $ | 1,009 | ||||||
Deferred tax assets and liabilities as of December 31, 2014 and 2013 consist of the following (in thousands): | |||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating losses | $ | 347 | $ | 483 | |||||||||
Warranty reserve | 13,032 | 16,085 | |||||||||||
Stock-based compensation | 2,931 | 2,383 | |||||||||||
Accruals not currently deductible and other | 5,221 | 6,210 | |||||||||||
Inventories | 4,437 | 3,843 | |||||||||||
State tax credit carryforwards | 4,050 | 3,714 | |||||||||||
Gross deferred tax assets, before valuation allowance | 30,018 | 32,718 | |||||||||||
Valuation allowance | (4,465 | ) | (4,201 | ) | |||||||||
Gross deferred tax assets, after valuation allowance | 25,553 | 28,517 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and other | (19,990 | ) | (19,380 | ) | |||||||||
Gross deferred tax liabilities | (19,990 | ) | (19,380 | ) | |||||||||
Net deferred tax asset | $ | 5,563 | $ | 9,137 | |||||||||
The Company recognizes deferred tax assets and liabilities based on the difference between the financial statement basis and tax basis of assets and liabilities using enacted rates expected to be in effect during the year in which the differences reverse. In accordance with accounting standards, the Company assesses the likelihood that its deferred tax assets will be realized. Deferred tax assets are reduced by a valuation allowance when, after considering all available positive and negative evidence, it is determined that it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. | |||||||||||||
During 2013, the Company realized $9.1 million of deferred tax assets previously reserved under a valuation allowance. Additionally, as a result of all positive and negative evidence available as of December 31, 2013, the Company determined that it would realize the majority of its remaining deferred tax asset and, as a result, reversed the valuation allowance against all but a few specific items primarily related to state tax credits it estimates will expire before they are realized resulting in a tax benefit of $10.9 million. As of December 31, 2014, the Company continues to have a valuation allowance of $4.5 million against these deferred tax assets. The Company will analyze its position in subsequent reporting periods, considering all available positive and negative evidence, in determining the expected realization of its deferred tax assets. | |||||||||||||
The Company recognizes excess tax benefits for stock-based awards as an increase to additional paid-in capital only when realized. The Company realized $12.9 million of excess tax benefits during 2014 and, accordingly, recorded an increase to additional paid-in capital. | |||||||||||||
The Company has identified no uncertain tax positions and accordingly, has not recorded any unrecognized tax benefits or associated interest and penalties. The Company recognizes interest and penalties related to tax matters as a component of “Selling, general and administrative expenses” in the accompanying consolidated statements of comprehensive income. | |||||||||||||
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 has accrued a liability when it believes that it is not more likely than not that it will realize the benefits of tax positions that it has taken or for the amount of any tax benefit that exceeds the cumulative probability threshold in accordance with accounting standards. As of December 31, 2014, federal tax years 2011 through 2013 remain subject to examination. The Company believes that adequate provisions have been made for all tax returns subject to examination. Sales made to foreign distributors are not taxable in any foreign jurisdictions as the Company does not have a taxable presence. During the year ended December 31, 2014, the Company’s returns filed with the state of Michigan for tax years 2008 through 2011 were examined. No material adjustments resulted from the audit. | |||||||||||||
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 regulations are required to be effective in taxable years beginning on or after January 1, 2014. The Company assessed the impact of the final regulations on its financial statements and does not expect any material adjustments or changes. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Commitments and Contingencies | 12 | COMMITMENTS AND CONTINGENCIES | |||||||
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 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 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. | |||||||||
Purchase Commitments | |||||||||
The Company fulfills requirements for raw materials under both purchase orders and supply contracts. In the year ended December 31, 2014, the Company purchased substantially all of its waste wood fiber requirements under purchase orders, which do not involve long-term supply commitments. Substantially all of the Company’s scrap polyethylene purchases are under short-term supply contracts that average approximately two years, for which pricing is negotiated as needed. | |||||||||
The wood and polyethylene supply contracts generally provide that the Company is obligated to purchase all of the wood or polyethylene a supplier provides, if the wood or polyethylene meets certain specifications. The amount of wood and polyethylene the Company is required to purchase under these contracts varies with the production of its suppliers and, accordingly, is not fixed or determinable. As of December 31, 2014, the Company has purchase commitments under raw material supply contracts of $23.6 million, $13.3 million, $5.7 million and $48 thousand for the years ending December 31, 2015, 2016, 2017 and 2018, respectively. | |||||||||
The Company outsources the production of certain products to third-party manufacturers under supply contracts that commit the Company to purchase minimum levels for each year extending through 2015. The Company has purchase commitments under the third-party manufacturing contracts of $1.9 million for the year ending December 31, 2015. | |||||||||
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 December 31, 2014, the Company has executed subleases for 24,732 square feet of the leased space 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 remaining minimum lease payment obligations under its lease and has recorded a liability for the expected shortfall. The Company recorded a $1.1 million charge in 2013 after a subtenant defaulted on its sublease and vacated the space. During 2014, the Company recorded $1.5 million in charges due to downward revisions of its estimate of future sublease receipts resulting from the departure of a subtenant that decided not to renew its sublease at the end of 2014. | |||||||||
To estimate future sublease receipts, the Company has assumed that the 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, 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 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 December 31, 2014, the minimum payments remaining under the Company’s lease over the years ending December 31, 2015, 2016, 2017, 2018, and 2019 are $1.9 million, $1.9 million, $2.0 million, $2.0 million and $1.0 million, respectively. The minimum receipts remaining under the Company’s existing subleases over the years ending December 31, 2015, 2016, 2017, 2018, and 2019 are $0.7 million, $0.6 million, $0.6 million, $0.6 million and $0.4 million, respectively. | |||||||||
The following table provides information about the Company’s liability under the lease (in thousands): | |||||||||
2014 | 2013 | ||||||||
Beginning balance, January 1 | $ | 1,787 | $ | 1,103 | |||||
Net rental payments | (403 | ) | (558 | ) | |||||
Accretion of discount | 178 | 98 | |||||||
Increase in net estimated contract termination costs | 1,471 | 1,144 | |||||||
Ending balance, December 31 | $ | 3,033 | $ | 1,787 | |||||
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. In 2009, the Company agreed to a settlement of a class action lawsuit covering the surface defect, stipulating its responsibilities with regard to such 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. | |||||||||
The key component driving the Company’s potential liability is the number of claims that will ultimately require payment. To estimate the number of future paid claims, 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. | |||||||||
A number of factors make estimates of the number of claims to be received inherently uncertain. The Company believes that production of the suspect material was confined to material produced from its Nevada facility prior to 2007, but is unable to determine the amount of suspect material produced or the exact time it takes for surface flaking to become evident in the suspect material and materialize as a claim. Furthermore, the aforementioned 2009 class action settlement and communications made by the Company in July 2013 informing homeowners of potential hazards associated with decking products exhibiting surface flaking that are not timely replaced led to increased claims volume and disrupted the claims data and settlement patterns. Lastly, the Company is not aware of any analogous industry data that might be referenced in predicting future claims to be received. The number of surface flaking claims received peaked in 2009 in conjunction with the class action settlement and has declined each year thereafter. | |||||||||
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. Although the cost per claim does vary, it is less volatile and more predictable than the number of claims to be settled with payment, which is inherently uncertain. The cost per claim declined from 2007 through 2009 but has increased each year thereafter. | |||||||||
The Company monitors surface flaking claims activity each quarter for indications that its estimate of the number of claims expected requires revision. Due to extensive use of decks during the summer outdoor season, variance to annual claims expectations is typically observed during the latter part of the Company’s fiscal year. | |||||||||
During the third quarter of 2013, the number of claims received was significantly greater than the Company’s prior estimates. The Company believes that this unexpected increase in claims was due primarily to a response to communications made by the Company in July 2013 informing homeowners of potential hazards associated with decking products exhibiting surface flaking that are not timely replaced. These communications included a public press release and over 10,000 letters sent to homeowners that previously filed surface flaking claims. In addition to contributing to the increase in new claims received, these communications resulted in the reopening of a significant number of claims previously closed. Furthermore, although not directly related to the surface flaking issue, in August 2013, the United States District Court, Northern District of California granted preliminary approval of a settlement agreement related to cases in which plaintiffs generally alleged certain defects in the Company’s products and alleged misrepresentations relating to mold growth. The Company believes that public notices made subsequent to the Court approval increased homeowner awareness of product-related issues and contributed to the increased number of surface flaking claims received during the third quarter of 2013. Due to the unfavorable claims experience during the three months ended September 30, 2013, the Company revised its estimate of the number of remaining future claims and recorded a $20 million increase to the warranty reserve. | |||||||||
During 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 reserve, which as of December 31, 2014, the Company believes is sufficient to cover future surface flaking obligations. The increase in the amount paid to settle surface flaking claims in 2014, as compared to 2013, was primarily a result of the large number of claims received during the second half of 2013, as described above. | |||||||||
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 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 $3.1 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 | (8,893 | ) | (8,175 | ) | |||||
Ending balance, December 31 | $ | 31,419 | $ | 40,312 | |||||
The remainder of the Company’s warranty reserve represents amounts accrued for non-surface flaking claims. |
Interim_Financial_Data_Unaudit
Interim Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Interim Financial Data (Unaudited) | 13 | INTERIM FINANCIAL DATA (Unaudited) | |||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||
2014 | 2014 | 2014 | 2014 | 2013 (a) | 2013 (b) | 2013 | 2013 | ||||||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||||||||||
Net sales | 74,202 | 95,502 | 121,311 | 100,645 | 63,831 | 72,249 | 98,551 | 107,880 | |||||||||||||||||||||||||
Gross profit | 26,635 | 30,369 | 45,026 | 38,167 | 19,685 | 151 | 36,922 | 41,860 | |||||||||||||||||||||||||
Net income (loss) | 5,153 | 8,913 | 15,161 | 12,295 | 15,103 | (15,298 | ) | 13,224 | 21,569 | ||||||||||||||||||||||||
Basic net income (loss) per share | $ | 0.16 | $ | 0.28 | $ | 0.46 | $ | 0.37 | $ | 0.46 | $ | (0.45 | ) | $ | 0.39 | $ | 0.64 | ||||||||||||||||
Diluted net income (loss) per share | $ | 0.16 | $ | 0.28 | $ | 0.46 | $ | 0.37 | $ | 0.45 | $ | (0.45 | ) | $ | 0.38 | $ | 0.62 | ||||||||||||||||
(a) | Three months ended December 31, 2013 was materially affected by a $10.9 million benefit as a direct result of the Company’s decision to exit a full valuation allowance. | ||||||||||||||||||||||||||||||||
(b) | Three months ended September 30, 2013 was materially affected by a pre-tax increase of $20.0 million to the surface flaking warranty reserve. | ||||||||||||||||||||||||||||||||
The Company’s net sales, gross profit and income from operations have historically varied from quarter to quarter. Such variations are often attributable to seasonal trends in the demand for Trex products. 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. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts and Reserves | TREX COMPANY, INC. | ||||||||||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||
Descriptions | Balance at | Additions | Other | Deductions | Balance | ||||||||||||||||
Beginning | (Reductions) | at End | |||||||||||||||||||
of Period | Charged to | of Period | |||||||||||||||||||
Cost and | |||||||||||||||||||||
Expenses | |||||||||||||||||||||
Year ended December 31, 2014: | |||||||||||||||||||||
Allowance for doubtful accounts (a) | $ | — | $ | 5 | $ | — | $ | (5 | ) | $ | (0 | ) | |||||||||
Warranty reserve | $ | 40,812 | $ | 3,774 | $ | — | $ | (10,745 | ) | $ | 33,841 | ||||||||||
Income tax valuation allowance | $ | 4,201 | $ | 388 | $ | — | $ | (124 | ) | $ | 4,465 | ||||||||||
Year ended December 31, 2013: | |||||||||||||||||||||
Allowance for doubtful accounts (a) | $ | 7 | $ | (3 | ) | $ | — | $ | (4 | ) | $ | — | |||||||||
Warranty reserve | $ | 28,987 | $ | 20,000 | $ | — | $ | (8,175 | ) | $ | 40,812 | ||||||||||
Income tax valuation allowance | $ | 24,131 | $ | — | $ | — | $ | (19,930 | ) | $ | 4,201 | ||||||||||
Year ended December 31, 2012: | |||||||||||||||||||||
Allowance for doubtful accounts (a) | $ | 292 | $ | (362 | ) | $ | — | $ | 77 | $ | 7 | ||||||||||
Warranty reserve | $ | 16,345 | $ | 21,487 | $ | — | $ | (8,845 | ) | $ | 28,987 | ||||||||||
Income tax valuation allowance | $ | 24,199 | $ | (68 | ) | $ | — | $ | — | $ | 24,131 | ||||||||||
(a) | Reserve related to accounts receivable |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Basis of Accounting | Basis of Accounting | ||||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and include the accounts of the Company and its wholly-owned subsidiary, Trex Wood-Polymer Espana, S.L. (“TWPE”). Intercompany accounts and transactions have been eliminated in consolidation. | |||||
TWPE was formed to hold the Company’s 35% equity interest in Denplax, S.A. (“Denplax”), a joint venture with a Spanish Company responsible for public environmental programs in southern Spain and with an Italian equipment manufacturer. The joint venture was formed to recycle polyethylene at a facility in El Ejido, Spain. The Company’s investment in Denplax is accounted for using the equity method. During 2010, the Company determined that its investment in Denplax and a related note receivable were no longer recoverable and recorded a $2.4 million charge to earnings to fully reserve the equity investment and note. Both the equity investment and note remain fully reserved as of December 31, 2014. | |||||
Stock Split | 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 consolidated financial statements and related notes 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. | |||||
Use of Estimates | Use of Estimates | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. | |||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||
Cash equivalents consist of highly liquid investments purchased with original maturities of three months or less. | |||||
Concentrations and Credit Risk | Concentrations and Credit Risk | ||||
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and trade accounts receivable. The Company from time to time may have bank deposits in excess of insurance limits of the Federal Deposit Insurance Corporation. As of December 31, 2014, substantially all deposits are maintained in one financial institution. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to its cash and cash equivalents. | |||||
The Company routinely assesses the financial strength of its customers and believes that its trade receivables credit risk exposure is limited. Trade receivables are carried at the original invoice amount less an estimate made for payment discounts and doubtful accounts. A valuation allowance is provided for known and anticipated credit losses and disputed amounts, as determined by management in the course of regularly evaluating individual customer receivables. This evaluation takes into consideration a customer’s financial condition and credit history, as well as current economic conditions. | |||||
In the years ended December 31, 2014, 2013 and 2012, sales to certain customers accounted for 10% or more of the Company’s total net sales. For the year ended December 31, 2014, one customer of the Company represented approximately 24% of the Company’s net sales. For the year ended December 31, 2013, one customer of the Company represented approximately 28% of the Company’s net sales. For the year ended December 31, 2012, two customers of the Company represented approximately 26% and 10% of the Company’s net sales. As of December 31, 2014, three customers represented 28%, 13%, and 11%, respectively, of the Company’s accounts receivable balance. | |||||
Approximately 38%, 44%, and 40% of the Company’s raw materials purchases for the years ended December 31, 2014, 2013 and 2012, respectively, were purchased from its four largest suppliers. | |||||
Inventories | Inventories | ||||
Inventories are stated at the lower of cost (last-in, first-out, or “LIFO” method) or market value. The Company periodically reviews its inventory for slow moving or obsolete items and writes down the related products to estimated realizable value. The Company has not established significant reserves for estimated slow moving products or obsolescence. At December 31, 2014, the excess of the replacement cost of inventory over the LIFO value of inventory was approximately $25.3 million. Due to the nature of the LIFO valuation methodology, liquidations of inventories will result in a portion of the Company’s cost of sales being based on historical rather than current year costs. | |||||
A majority of the Company’s products are made in a proprietary process that combines waste wood fibers and scrap polyethylene. The Company grinds up scrap materials generated from its manufacturing process and inventories deemed no longer salable and reintroduces the “reclaimed” material into the manufacturing process as a substitute for raw materials. The reclaimed material is valued at the costs of the raw material components of the material. | |||||
Property, Plant and Equipment | Property, Plant and Equipment | ||||
Property, plant and equipment are stated at historical cost. The costs of additions and improvements are capitalized, while maintenance and repairs are expensed as incurred. Depreciation is provided using the straight-line method over the following estimated useful lives: | |||||
Buildings | 40 years | ||||
Machinery and equipment | 3-11 years | ||||
Furniture and equipment | 10 years | ||||
Forklifts and tractors | 5 years | ||||
Computer equipment and software | 3-5 years | ||||
Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the asset. | |||||
The Company reviews its long-lived assets, including property, plant and equipment, whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine the recoverability of its long-lived assets, the Company evaluates the probability that future estimated undiscounted net cash flows will be less than the carrying amount of the long-lived assets. If the estimated cash flows are less than the carrying amount of the long-lived assets, the assets are written down to their fair value. The Company’s estimates of anticipated cash flows and the remaining estimated useful lives of long-lived assets could be reduced in the future. As a result, the carrying amount of long-lived assets could be reduced in the future. | |||||
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 December 31, 2014, the Company has executed subleases for 24,732 square feet of the leased space 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 remaining minimum lease payment obligations under its lease and has recorded a liability for the expected shortfall. The Company recorded a $1.1 million charge in 2013 after a subtenant defaulted on its sublease and vacated the space. During 2014, the Company recorded $1.5 million in charges due to downward revisions of its estimate of future sublease receipts resulting from the departure of a subtenant that decided not to renew its sublease at the end of 2014. | |||||
To estimate future sublease receipts, the Company has assumed that the 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, 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 assumptions used in the estimate of the future sublease receipts may result in material charges to selling, general and administrative expenses in future periods. | |||||
Goodwill | Goodwill | ||||
Goodwill represents the excess of cost over net assets acquired resulting from the Company’s 1996 purchase of the Mobil Composite Products Division and the 2011 purchase of the assets of the Iron Deck Corporation. The Company evaluates the recoverability of goodwill annually or more frequently if an event occurs or circumstances change in the interim that would more likely than not reduce the fair value of the asset below its carrying amount. Goodwill is considered to be impaired when the net book value of the reporting unit exceeds its estimated fair value. | |||||
In the evaluation of goodwill for impairment, the Company first compares the fair value of the reporting unit to its carrying value. If the carrying value of a reporting unit exceeds its fair value, the goodwill of that reporting unit is potentially impaired and step two of the impairment analysis is performed. In step two of the analysis, an impairment loss is recorded equal to the excess of the carrying value of the reporting unit’s goodwill over its implied fair value should such a circumstance arise. | |||||
The Company measures fair value of the reporting unit based on a present value of future discounted cash flows and a market valuation approach. The discounted cash flows model indicates the fair value of the reporting unit based on the present value of the cash flows that the reporting unit is expected to generate in the future. Significant estimates in the discounted cash flows model include: the weighted average cost of capital; long-term rate of growth and profitability of the business; and working capital effects. The market valuation approach indicates the fair value of the business based on a comparison of the Company against certain market information. Significant estimates in the market approach model include identifying appropriate market multiples and assessing earnings before interest, income taxes, depreciation and amortization (EBITDA) in estimating the fair value of the reporting unit. | |||||
For the years ended December 31, 2014, 2013 and 2012, the Company completed its annual impairment test of goodwill and noted no impairment. The Company performs the annual impairment testing of its goodwill as of October 31 of each year. However, actual results could differ from the Company’s estimates and projections, which would affect the assessment of impairment. As of December 31, 2014, the Company had goodwill of $10.5 million that is subject to at least annual review of impairment. | |||||
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. The Company establishes warranty reserves to provide for estimated future expenses as a result of product defects that result in claims. Reserve estimates are based on management’s judgment, considering such factors as cost per claim, historical experience, anticipated rates of claims, and other available information. Management reviews and adjusts these estimates, if necessary, on a quarterly basis based on the differences between actual experience and historical estimates. | |||||
Treasury Stock | Treasury Stock | ||||
The Company records the repurchase of shares of its common stock at cost. These shares are considered treasury stock, which is a reduction to stockholders’ equity. Treasury stock is included in authorized and issued shares but excluded from outstanding shares. | |||||
Revenue Recognition | Revenue Recognition | ||||
The Company recognizes revenue when title is transferred to customers, which is generally upon shipment of the product to the customer. The Company does not grant contractual product return rights to customers other than pursuant to its product warranty. The Company does not expect future product returns to be material and, consequently, does not maintain an allowance for product returns. | |||||
The Company records all shipping and handling fees in sales and records all of the related costs in cost of sales. The Company offers sales incentive programs to dealers and distributors, including rebates, pricing discounts, favorable payment terms and cooperative advertising, many of which result in cash consideration made to dealers and distributors. The Company accounts for consideration made pursuant to these programs in accordance with accounting guidance that governs consideration given by a vendor to a customer. With the exception of cooperative advertising, the Company classifies sales incentives as a reduction in revenue in “Net sales.” Sales incentives are recorded in the period in which they are earned by customers. The Company’s cooperative advertising program meets the requirements for exclusion from net sales and the costs are recorded as expenses in “Selling, general and administrative expenses” in the accompanying consolidated statements of comprehensive income. Cooperative advertising costs are expensed as incurred. | |||||
Stock-Based Compensation | Stock-Based Compensation | ||||
The Company measures stock-based compensation at the grant date of the award based on the fair value. For stock options, stock appreciation rights and time-based restricted stock, stock-based compensation is recognized on a straight line basis over the vesting periods of the award, net of an estimated forfeiture rate. 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 predetermined performance measures. Stock-based compensation expense is included in “Selling, general and administrative expenses” in the accompanying consolidated statements of comprehensive income. | |||||
Income Taxes | Income Taxes | ||||
The Company recognizes deferred tax assets and liabilities based on the difference between the financial statement basis and tax basis of assets and liabilities using enacted rates expected to be in effect during the year in which the differences reverse. The Company assesses the likelihood that its deferred tax assets will be realized. Deferred tax assets are reduced by a valuation allowance when, after considering all available positive and negative evidence, it is determined that it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. | |||||
At 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 the valuation allowance against all but a few specific items primarily related to state tax credits it estimates will expire before they are realized. As of December 31, 2014, the Company continues to have a valuation allowance of $4.5 million against these deferred tax assets. The Company analyzes its position in subsequent reporting periods, considering all available positive and negative evidence, in determining the expected realization of its deferred tax assets. | |||||
Research and Development Costs | Research and Development Costs | ||||
Research and development costs are expensed as incurred. For the years ended December 31, 2014, 2013 and 2012, research and development costs were $2.3 million, $2.9 million and $2.9 million, respectively, and have been included in “Selling, general and administrative expenses” in the accompanying consolidated statements of comprehensive income. | |||||
Advertising Costs | Advertising Costs | ||||
The Company expenses its branding and advertising communication costs as incurred. Significant production costs are deferred and recognized as expense in the period that the related advertisement is first used. At December 31, 2014 and December 31, 2013, $0.5 million and $0.5 million, respectively, were included in prepaid expenses for production costs. | |||||
For the years ended December 31, 2014, 2013 and 2012, branding expenses, including advertising expenses as described above, were $20.8 million, $20.9 million and $20.5 million, respectively. | |||||
Fair Value of Financial Instruments | Fair Value of 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 December 31, 2014 and 2013. | |||||
New Accounting Standards Not Yet Adopted | New Accounting Standards Not Yet Adopted | ||||
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 and has not yet selected a method of adoption. | |||||
Reclassifications | Reclassifications | ||||
Certain prior year amounts have been reclassified to conform to the current year presentation. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Estimated Useful Lives of Property Plant and Equipment | Property, Plant and Equipment | ||||
Property, plant and equipment are stated at historical cost. The costs of additions and improvements are capitalized, while maintenance and repairs are expensed as incurred. Depreciation is provided using the straight-line method over the following estimated useful lives: | |||||
Buildings | 40 years | ||||
Machinery and equipment | 3-11 years | ||||
Furniture and equipment | 10 years | ||||
Forklifts and tractors | 5 years | ||||
Computer equipment and software | 3-5 years |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Summary of Inventories, at LIFO Value | Inventories (at LIFO value) consist of the following as of December 31 (in thousands): | ||||||||
2014 | 2013 | ||||||||
Finished goods | $ | 32,756 | $ | 30,423 | |||||
Raw materials | 16,290 | 16,502 | |||||||
Total FIFO inventories | 49,046 | 46,925 | |||||||
Reserve to adjust inventories to LIFO value | (25,299 | ) | (24,497 | ) | |||||
Total LIFO inventories | $ | 23,747 | $ | 22,428 | |||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Summary of Property, Plant and Equipment | Property, plant and equipment consist of the following as of December 31 (in thousands): | ||||||||
2014 | 2013 | ||||||||
Building and improvements | $ | 50,394 | $ | 48,774 | |||||
Machinery and equipment | 203,496 | 195,873 | |||||||
Furniture and fixtures | 2,237 | 2,062 | |||||||
Forklifts and tractors | 6,052 | 6,191 | |||||||
Computer equipment | 8,120 | 8,353 | |||||||
Construction in process | 6,707 | 7,619 | |||||||
Land | 8,858 | 8,858 | |||||||
Total property, plant and equipment | 285,864 | 277,730 | |||||||
Accumulated depreciation | (187,148 | ) | (176,947 | ) | |||||
Total property, plant and equipment, net | $ | 98,716 | $ | 100,783 | |||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Summary of Accrued Expenses | Accrued expenses consist of the following (in thousands): | ||||||||
2014 | 2013 | ||||||||
Accrued compensation and benefits | $ | 9,201 | $ | 9,135 | |||||
Accrued sales and marketing costs | 5,963 | 5,269 | |||||||
Accrued rent obligations | 1,372 | 1,787 | |||||||
Accrued manufacturing costs | 1,307 | 1,107 | |||||||
Accrued legal contingency | 301 | 3,174 | |||||||
Other | 2,516 | 2,823 | |||||||
Total accrued expenses | $ | 20,660 | $ | 23,295 | |||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 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): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 41,521 | $ | 34,598 | $ | 2,720 | |||||||
Denominator: | |||||||||||||
Basic weighted average shares outstanding | 32,319,649 | 33,589,682 | 32,247,184 | ||||||||||
Effect of dilutive securities: | |||||||||||||
SARS and options | 262,730 | 510,706 | 812,964 | ||||||||||
Restricted stock | 168,695 | 173,114 | 103,598 | ||||||||||
Convertible notes | — | — | 965,966 | ||||||||||
Diluted weighted average shares outstanding | 32,751,074 | 34,273,502 | 34,129,712 | ||||||||||
Basic earnings per share | $ | 1.28 | $ | 1.03 | $ | 0.08 | |||||||
Diluted earnings per share | $ | 1.27 | $ | 1.01 | $ | 0.08 | |||||||
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: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Restricted stock and stock options | 2,633 | 118,596 | 234,644 | ||||||||||
Stock appreciation rights | 1,969 | 73,154 | 242,412 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary of Stock-Based Compensation Expense | The following table summarizes the Company’s stock-based compensation expense for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Time-based restricted stock | $ | 2,974 | $ | 2,461 | $ | 2,035 | |||||||||||
Performance-based restricted stock | 727 | — | — | ||||||||||||||
Stock appreciation rights | 1,035 | 1,251 | 1,369 | ||||||||||||||
Employee stock purchase plan | 71 | 99 | 65 | ||||||||||||||
Total stock-based compensation | $ | 4,807 | $ | 3,811 | $ | 3,469 | |||||||||||
Summary of Assumptions Used to Estimate Fair Value of Each SAR | For SARs issued in the years ended December 31, 2014, 2013 and 2012, respectively, the assumptions shown in the following table were used: | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Average risk-free interest rate | 1.7 | % | 0.7 | % | 0.8 | % | |||||||||||
Expected term (years) | 5 | 5 | 5 | ||||||||||||||
Expected volatility | 52.6 | % | 63.7 | % | 65.9 | % | |||||||||||
SAR Activity | SAR activity under the Plan and all predecessor stock incentive plans is as follows: | ||||||||||||||||
SARs | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Grant | Remaining | Value as of | |||||||||||||||
Price | Contractual | December 31, | |||||||||||||||
Per Share | Life (Years) | 2014 | |||||||||||||||
Outstanding at December 31, 2011 | 2,325,410 | $ | 6.59 | ||||||||||||||
Granted | 201,828 | $ | 12.88 | ||||||||||||||
Exercised | (1,135,906 | ) | $ | 6.54 | |||||||||||||
Canceled | (16,952 | ) | $ | 12.08 | |||||||||||||
Outstanding at December 31, 2012 | 1,374,380 | $ | 9.28 | ||||||||||||||
Granted | 121,176 | $ | 21.95 | ||||||||||||||
Exercised | (749,334 | ) | $ | 7.7 | |||||||||||||
Canceled | (7,028 | ) | $ | 13.1 | |||||||||||||
Outstanding at December 31, 2013 | 739,194 | $ | 12.93 | ||||||||||||||
Granted | 3,866 | $ | 37.88 | ||||||||||||||
Exercised | (218,826 | ) | $ | 10.96 | |||||||||||||
Canceled | (8,404 | ) | $ | 4.74 | |||||||||||||
Outstanding at December 31, 2014 | 515,830 | $ | 13.98 | 6.5 | $ | 14,754,320 | |||||||||||
Vested at December 31, 2014 | 383,488 | $ | 12.55 | 6.1 | $ | 11,514,749 | |||||||||||
Exercisable at December 31, 2014 | 383,488 | $ | 12.55 | 6.1 | $ | 11,514,749 | |||||||||||
Stock Option Activity | Stock option activity under the Plan and all predecessor stock incentive plans is as follows: | ||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value as of | |||||||||||||||
Price | Contractual | December 31, | |||||||||||||||
Per Share | Life (Years) | 2014 | |||||||||||||||
Outstanding at December 31, 2011 | 290,138 | $ | 19.04 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Exercised | (46,378 | ) | $ | 15.68 | |||||||||||||
Canceled | (2,484 | ) | $ | 10 | |||||||||||||
Outstanding at December 31, 2012 | 241,276 | $ | 20.19 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Exercised | (186,968 | ) | $ | 24.92 | |||||||||||||
Canceled | (12,020 | ) | $ | 18.16 | |||||||||||||
Outstanding at December 31, 2013 | 42,288 | $ | 20.05 | ||||||||||||||
Granted | — | $ | — | ||||||||||||||
Exercised | (27,942 | ) | $ | 35.73 | |||||||||||||
Canceled | (1,188 | ) | $ | 17.92 | |||||||||||||
Outstanding at December 31, 2014 | 13,158 | $ | 23.36 | 0.2 | $ | 252,963 | |||||||||||
Vested at December 31, 2014 | 13,158 | $ | 23.36 | 0.2 | $ | 252,963 | |||||||||||
Exercisable at December 31, 2014 | 13,158 | $ | 23.36 | 0.2 | $ | 252,963 | |||||||||||
Time-Based Restricted Stock [Member] | |||||||||||||||||
Restricted Stock Activity | Time-based restricted stock activity under the Plan and all predecessor stock incentive plans is as follows: | ||||||||||||||||
Time-based | Weighted-Average | ||||||||||||||||
Restricted Stock | Grant Price | ||||||||||||||||
Per Share | |||||||||||||||||
Nonvested at December 31, 2011 | 320,350 | $ | 11.5 | ||||||||||||||
Granted | 313,854 | $ | 13.59 | ||||||||||||||
Vested | (189,410 | ) | $ | 13.44 | |||||||||||||
Forfeited | (15,424 | ) | $ | 12.74 | |||||||||||||
Nonvested at December 31, 2012 | 429,370 | $ | 12.08 | ||||||||||||||
Granted | 94,030 | $ | 22.21 | ||||||||||||||
Vested | (139,594 | ) | $ | 22.28 | |||||||||||||
Forfeited | (832 | ) | $ | 16.16 | |||||||||||||
Nonvested at December 31, 2013 | 382,974 | $ | 13.78 | ||||||||||||||
Granted | 66,511 | $ | 32.7 | ||||||||||||||
Vested | (116,641 | ) | $ | 33.73 | |||||||||||||
Forfeited | (3,282 | ) | $ | 16.61 | |||||||||||||
Nonvested at December 31, 2014 | 329,562 | $ | 18.89 | ||||||||||||||
Performance-Based Restricted Stock [Member] | |||||||||||||||||
Restricted Stock Activity | Performance-based restricted stock activity under the Plan is as follows: | ||||||||||||||||
Performance-based | Weighted-Average | ||||||||||||||||
Restricted Stock | Grant Price | ||||||||||||||||
Per Share | |||||||||||||||||
Nonvested at December 31, 2013 | — | $ | — | ||||||||||||||
Granted | 42,676 | $ | 33.72 | ||||||||||||||
Vested | — | $ | — | ||||||||||||||
Forfeited | — | $ | — | ||||||||||||||
Nonvested at December 31, 2014 | 42,676 | $ | 33.72 | ||||||||||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Minimum Annual Payments Under Non-Cancelable Leases | Minimum annual payments under these non-cancelable leases as of December 31, 2014 were as follows (in thousands): | ||||
Year Ending December 31, | |||||
2015 | $ | 6,753 | |||
2016 | 5,490 | ||||
2017 | 5,370 | ||||
2018 | 5,308 | ||||
2019 | 4,467 | ||||
Thereafter | 10,730 | ||||
Total minimum lease payments | $ | 38,118 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Tax Provision (Benefit) | Income tax provision (benefit) for the years ended December 31, 2014, 2013 and 2012 consists of the following (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current income tax provision: | |||||||||||||
Federal | $ | 18,722 | $ | 1,745 | $ | 303 | |||||||
State | 3,131 | 404 | 88 | ||||||||||
21,853 | 2,149 | 391 | |||||||||||
Deferred income tax provision (benefit): | |||||||||||||
Federal | 3,118 | (11,182 | ) | 510 | |||||||||
State | 456 | (1,516 | ) | 108 | |||||||||
3,574 | (12,698 | ) | 618 | ||||||||||
Total income tax provision (benefit) | $ | 25,427 | $ | (10,549 | ) | $ | 1,009 | ||||||
Reconciliation of Differences between Income Tax Provision (Benefit) and Income Tax Determined by Applying US Federal Statutory Rate | The income tax provision (benefit) differs from the amount of income tax determined by applying the U.S. federal statutory rate to income before taxes as a result of the following (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. federal statutory taxes | $ | 23,432 | $ | 8,417 | $ | 1,305 | |||||||
State and local taxes, net of U.S. federal benefit | 2,856 | 1,061 | (418 | ) | |||||||||
Permanent items | (868 | ) | 225 | 198 | |||||||||
Federal credits | (214 | ) | (566 | ) | (54 | ) | |||||||
Other | (43 | ) | 244 | 46 | |||||||||
Increase (decrease) in valuation allowance | 264 | (19,930 | ) | (68 | ) | ||||||||
Total income tax provision (benefit) | $ | 25,427 | $ | (10,549 | ) | $ | 1,009 | ||||||
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities as of December 31, 2014 and 2013 consist of the following (in thousands): | ||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating losses | $ | 347 | $ | 483 | |||||||||
Warranty reserve | 13,032 | 16,085 | |||||||||||
Stock-based compensation | 2,931 | 2,383 | |||||||||||
Accruals not currently deductible and other | 5,221 | 6,210 | |||||||||||
Inventories | 4,437 | 3,843 | |||||||||||
State tax credit carryforwards | 4,050 | 3,714 | |||||||||||
Gross deferred tax assets, before valuation allowance | 30,018 | 32,718 | |||||||||||
Valuation allowance | (4,465 | ) | (4,201 | ) | |||||||||
Gross deferred tax assets, after valuation allowance | 25,553 | 28,517 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and other | (19,990 | ) | (19,380 | ) | |||||||||
Gross deferred tax liabilities | (19,990 | ) | (19,380 | ) | |||||||||
Net deferred tax asset | $ | 5,563 | $ | 9,137 | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Summary of Liability Related to Lease | The following table provides information about the Company’s liability under the lease (in thousands): | ||||||||
2014 | 2013 | ||||||||
Beginning balance, January 1 | $ | 1,787 | $ | 1,103 | |||||
Net rental payments | (403 | ) | (558 | ) | |||||
Accretion of discount | 178 | 98 | |||||||
Increase in net estimated contract termination costs | 1,471 | 1,144 | |||||||
Ending balance, December 31 | $ | 3,033 | $ | 1,787 | |||||
Summary of Reconciliation of Company's 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 | (8,893 | ) | (8,175 | ) | |||||
Ending balance, December 31 | $ | 31,419 | $ | 40,312 | |||||
Interim_Financial_Data_Unaudit1
Interim Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Summary of Interim Financial Data | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||
2014 | 2014 | 2014 | 2014 | 2013 (a) | 2013 (b) | 2013 | 2013 | ||||||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||||||||||
Net sales | 74,202 | 95,502 | 121,311 | 100,645 | 63,831 | 72,249 | 98,551 | 107,880 | |||||||||||||||||||||||||
Gross profit | 26,635 | 30,369 | 45,026 | 38,167 | 19,685 | 151 | 36,922 | 41,860 | |||||||||||||||||||||||||
Net income (loss) | 5,153 | 8,913 | 15,161 | 12,295 | 15,103 | (15,298 | ) | 13,224 | 21,569 | ||||||||||||||||||||||||
Basic net income (loss) per share | $ | 0.16 | $ | 0.28 | $ | 0.46 | $ | 0.37 | $ | 0.46 | $ | (0.45 | ) | $ | 0.39 | $ | 0.64 | ||||||||||||||||
Diluted net income (loss) per share | $ | 0.16 | $ | 0.28 | $ | 0.46 | $ | 0.37 | $ | 0.45 | $ | (0.45 | ) | $ | 0.38 | $ | 0.62 | ||||||||||||||||
(a) | Three months ended December 31, 2013 was materially affected by a $10.9 million benefit as a direct result of the Company’s decision to exit a full valuation allowance. | ||||||||||||||||||||||||||||||||
(b) | Three months ended September 30, 2013 was materially affected by a pre-tax increase of $20.0 million to the surface flaking warranty reserve. |
Business_and_Organization_Addi
Business and Organization - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Accounting Policies [Abstract] | |
Number of operating segments of business | 1 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||||||
7-May-14 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | 7-May-14 | Apr. 30, 2014 | Feb. 28, 2014 | |
Supplier | Customer | Customer | ||||||
Institution | ||||||||
Customer | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Holding company's interest in Denplax | 35.00% | |||||||
Charge to earning to fully reserve the equity investment and note | $2,400,000 | |||||||
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 consolidated financial statements and related notes are presented on a post-split basis. | |||||||
Common stock, par value | $0.01 | $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 | |||||
Maximum term of original maturities to classify as cash equivalent | 3 months | |||||||
Number of financial institutions where deposits are maintained | 1 | |||||||
Number of customers that accounted for 10% or more of net sales | 1 | 1 | 2 | |||||
Number of customer accounted for 10% or more account receivable | 3 | |||||||
Number of largest raw material suppliers | 4 | |||||||
Excess of the replacement cost of inventory over the LIFO value of inventory | 25,299,000 | 24,497,000 | ||||||
Charge recorded | 1,471,000 | 1,144,000 | ||||||
Annual impairment test of goodwill | 0 | 0 | 0 | |||||
Goodwill | 10,500,000 | |||||||
Valuation allowance | 4,465,000 | 4,201,000 | ||||||
Research and Development costs | 2,300,000 | 2,900,000 | 2,900,000 | |||||
Prepaid expenses for production costs of advertising | 500,000 | 500,000 | ||||||
Branding Expenses | 20,800,000 | 20,900,000 | 20,500,000 | |||||
Scenario, Previously Reported [Member] | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Number of authorized shares of common stock | 40,000,000 | |||||||
Contract Termination [Member] | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Expiration date of reconsidered corporate headquarters lease | 30-Jun-19 | |||||||
Lease square feet | 55,047 | |||||||
Charge recorded | $1,471,000 | $1,144,000 | ||||||
Sublease [Member] | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Lease square feet | 24,732 | |||||||
Residential Use [Member] | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Warranty period | 25 years | |||||||
Commercial Use [Member] | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Warranty period | 10 years | |||||||
TrexTrim and Trex Reveal Railing [Member] | Residential Use [Member] | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Warranty period | 25 years | |||||||
TrexTrim and Trex Reveal Railing [Member] | Commercial Use [Member] | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Warranty period | 25 years | |||||||
Transcend, Enhance, Select and Universal Fascia Product [Member] | Residential Use [Member] | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Warranty period | 25 years | |||||||
Transcend, Enhance, Select and Universal Fascia Product [Member] | Commercial Use [Member] | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Warranty period | 10 years | |||||||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Minimum [Member] | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Concentration risk as percentage of total | 10.00% | 10.00% | 10.00% | |||||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Concentration risk as percentage of total | 24.00% | 28.00% | 26.00% | |||||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Concentration risk as percentage of total | 10.00% | |||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Concentration risk as percentage of total | 28.00% | |||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Concentration risk as percentage of total | 13.00% | |||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Concentration risk as percentage of total | 11.00% | |||||||
Raw Materials [Member] | Supplier Concentration Risk [Member] | ||||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||||
Concentration risk as percentage of total | 38.00% | 44.00% | 40.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Estimated Useful Lives of Property Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment estimated useful life | 40 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment estimated useful life | 10 years |
Forklifts and Tractors [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment estimated useful life | 5 years |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment estimated useful life | 3 years |
Minimum [Member] | Computer Equipment and Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment estimated useful life | 3 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment estimated useful life | 11 years |
Maximum [Member] | Computer Equipment and Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, and equipment estimated useful life | 5 years |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories, at LIFO Value (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished goods | $32,756 | $30,423 |
Raw materials | 16,290 | 16,502 |
Total FIFO inventories | 49,046 | 46,925 |
Reserve to adjust inventories to LIFO value | -25,299 | -24,497 |
Total LIFO inventories | $23,747 | $22,428 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Inventory Disclosure [Abstract] | |||
Benefit recognized, to cost of sales, under the LIFO method due to reduction in inventory | $0 | $0 | $4,500,000 |
Property_Plant_and_Equipment_S
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $285,864 | $277,730 |
Accumulated depreciation | -187,148 | -176,947 |
Total property, plant and equipment, net | 98,716 | 100,783 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 50,394 | 48,774 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 203,496 | 195,873 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,237 | 2,062 |
Forklifts and Tractors [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 6,052 | 6,191 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 8,120 | 8,353 |
Construction in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 6,707 | 7,619 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $8,858 | $8,858 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $285,864,000 | $277,730,000 | |
Depreciation expense | 14,800,000 | 15,900,000 | 16,500,000 |
Construction in Process [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $6,707,000 | $7,619,000 |
Accrued_Expenses_Summary_of_Ac
Accrued Expenses - Summary of Accrued Expenses (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $9,201 | $9,135 |
Accrued sales and marketing costs | 5,963 | 5,269 |
Accrued rent obligations | 1,372 | 1,787 |
Accrued manufacturing costs | 1,307 | 1,107 |
Accrued legal contingency | 301 | 3,174 |
Other | 2,516 | 2,823 |
Total accrued expenses | $20,660 | $23,295 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | Nov. 20, 2014 | Jan. 06, 2012 | |
Line of Credit Facility [Line Items] | ||||
Company indebtedness | $0 | 0 | ||
Credit facility covenant terms | (a) Fixed Charge Coverage Ratio. The Fixed Charge Coverage Ratio is not permitted to be less than 1.5 to 1.0, measured as of the end of each Fiscal Quarter, commencing with the Fiscal Quarter ended September 30, 2014. (b) Consolidated Debt to Consolidated EBITDA Ratio. The Consolidated Debt to Consolidated EBITDA Ratio is not permitted to exceed 3.00 to 1.0 measured as of the end of each Fiscal Quarter (and in the case of Consolidated EBITDA, for the four-quarter period ending on such date). | |||
Second Amended Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate on the revolving credit facility | 1.30% | 1.30% | ||
Termination date of the Credit Agreement | 20-Nov-19 | |||
Additional available borrowing capacity | 100,000,000 | 100,000,000 | ||
Outstanding borrowings under the revolver loans | 0 | 0 | ||
Second Amended Credit Agreement [Member] | Revolver Loans Portion Effective January 1 through June 30 [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Revolving loans in a collective maximum principal amount | 150,000,000 | |||
Second Amended Credit Agreement [Member] | Revolver Loans Portion Effective July 1 through December 31 [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Revolving loans in a collective maximum principal amount | 100,000,000 | |||
Second Amended Credit Agreement [Member] | Letter of Credit Facility Sublimit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Revolving loans in a collective maximum principal amount | 15,000,000 | |||
Second Amended Credit Agreement [Member] | Swing Advance Loan Sublimit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Revolving loans in a collective maximum principal amount | 5,000,000 | |||
Second Amended Credit Agreement [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Fixed charge coverage ratio as per credit agreement | 1.5 | |||
Second Amended Credit Agreement [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Consolidated debt to earnings before interest taxes depreciation amortization ratio as per the credit agreement | 3 | |||
Prior Credit Agreement [Member] | Revolver Loans [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Revolving loans in a collective maximum principal amount | $100,000,000 |
Stockholders_Equity_Computatio
Stockholders' Equity - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | |||||||||||
Net income | $5,153 | $8,913 | $15,161 | $12,295 | $15,103 | ($15,298) | $13,224 | $21,569 | $41,521 | $34,598 | $2,720 |
Denominator: | |||||||||||
Basic weighted average shares outstanding | 32,319,649 | 33,589,682 | 32,247,184 | ||||||||
Effect of dilutive securities: | |||||||||||
SARS and options | 262,730 | 510,706 | 812,964 | ||||||||
Restricted stock | 168,695 | 173,114 | 103,598 | ||||||||
Convertible notes | 965,966 | ||||||||||
Diluted weighted average shares outstanding | 32,751,074 | 34,273,502 | 34,129,712 | ||||||||
Basic earnings per share | $0.16 | $0.28 | $0.46 | $0.37 | $0.46 | ($0.45) | $0.39 | $0.64 | $1.28 | $1.03 | $0.08 |
Diluted earnings per share | $0.16 | $0.28 | $0.46 | $0.37 | $0.45 | ($0.45) | $0.38 | $0.62 | $1.27 | $1.01 | $0.08 |
Stockholders_Equity_Antidiluti
Stockholders' Equity - Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
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 | 2,633 | 118,596 | 234,644 |
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 | 1,969 | 73,154 | 242,412 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 3 Months Ended | 2 Months Ended | |||||||
7-May-14 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 10, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Apr. 30, 2014 | Feb. 28, 2014 | Oct. 24, 2013 | Feb. 19, 2014 | Oct. 23, 2014 | |
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 consolidated financial statements and related notes are presented on a post-split basis. | ||||||||||
Common stock, par value | $0.01 | $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 | 80,000,000 | |||||||
Value of shares repurchased by the Company | $50,000,000 | $25,000,000 | |||||||||
October 2013 Stock Repurchase Program [Member] | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Common stock repurchase program, authorized amount | 30,000,000 | ||||||||||
Number of shares repurchased by the Company | 0 | ||||||||||
Common stock repurchase program, expiration date | 10-Feb-14 | ||||||||||
February 2014 Stock Repurchase Program [Member] | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Common stock repurchase program, authorized amount | 50,000,000 | ||||||||||
Number of shares repurchased by the Company | 1,657,919 | ||||||||||
Value of shares repurchased by the Company | $50,000,000 | ||||||||||
Shares repurchased by the Company, Average price per share | $30.16 | ||||||||||
October 2014 Stock Repurchase Program [Member] | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Number of shares repurchased by the Company | 0 | ||||||||||
Common stock repurchase program, authorized shares | 2,000,000 | ||||||||||
Scenario, Previously Reported [Member] | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Number of authorized shares of common stock | 40,000,000 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | 7-May-14 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares of common stock that may be issued under the plan adjusted to reflect stock split | 2 | ||||
Approximate number of shares employees purchased under the Employee Stock Purchase Plan | 407,000 | ||||
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 | 6,420,000 | |||
Increase in number of shares of common stock from the previous plan that may be issued | 60,000 | ||||
Shares of common stock that may be issued under the plan adjusted to reflect stock split | 2 | ||||
Time-Based Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total fair value of restricted shares vested | 3.9 | $3.10 | $2.50 | ||
Unrecognized compensation cost related to unvested awards | 2.8 | 2.8 | |||
Compensation cost recognition period for unvested awards | 1 year 6 months | ||||
Number of shares vested | 116,641 | 139,594 | 189,410 | ||
Performance-Based Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to unvested awards | 0.6 | 0.6 | |||
Compensation cost recognition period for unvested awards | 1 year 7 months 6 days | ||||
Vesting period | 3 years | ||||
Number of shares vested | 0 | ||||
Stock Appreciation Rights [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to unvested awards | 0.5 | $0.50 | |||
Compensation cost recognition period for unvested awards | 6 years 6 months | ||||
Maximum contractual term | 10 years | ||||
Weighted-average fair value of grants | 17.78 | $11.67 | $7.06 | ||
Employee Stock Purchase 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 | 600,000 | 600,000 | |||
Shares of common stock that may be issued under the plan adjusted to reflect stock split | 2 | ||||
Percentage of market price on lesser of either first day of calendar quarter or last day of calendar quarter for purchase price | 85.00% | ||||
Percentage of gross compensation eligible employees may elect to participate in the plan | 15.00% | 15.00% | |||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum contractual term | 10 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 Stock-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $4,807 | $3,811 | $3,469 |
Time-Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2,974 | 2,461 | 2,035 |
Performance-Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 727 | ||
Stock Appreciation Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,035 | 1,251 | 1,369 |
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $71 | $99 | $65 |
StockBased_Compensation_TimeBa
Stock-Based Compensation - Time-Based Restricted Stock Activity (Detail) (Time-Based Restricted Stock [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Time-Based Restricted Stock [Member] | |||
Schedule Of Restricted Stock Activity [Line Items] | |||
Nonvested, Shares, Beginning Balance | 382,974 | 429,370 | 320,350 |
Time-based Restricted Stock, Granted | 66,511 | 94,030 | 313,854 |
Time-based Restricted Stock, Vested | -116,641 | -139,594 | -189,410 |
Time-based Restricted Stock, Forfeited | -3,282 | -832 | -15,424 |
Nonvested, Shares, Ending Balance | 329,562 | 382,974 | 429,370 |
Nonvested, Weighted-Average Grant Price Per Share, Beginning Balance | $13.78 | $12.08 | $11.50 |
Weighted-Average Grant Price Per Share, Granted | $32.70 | $22.21 | $13.59 |
Weighted-Average Grant Price Per Share, Vested | $33.73 | $22.28 | $13.44 |
Weighted-Average Grant Price Per Share, Forfeited | $16.61 | $16.16 | $12.74 |
Nonvested, Weighted-Average Grant Price Per Share, Ending Balance | $18.89 | $13.78 | $12.08 |
StockBased_Compensation_Perfor
Stock-Based Compensation - Performance-Based Restricted Stock Activity (Detail) (Performance-Based Restricted Stock [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Performance-Based Restricted Stock [Member] | |
Schedule Of Restricted Stock Activity [Line Items] | |
Performance-based Restricted Stock, Granted | 42,676 |
Performance-based Restricted Stock, Vested | 0 |
Performance-based Restricted Stock, Forfeited | 0 |
Nonvested, Shares, Ending Balance | 42,676 |
Weighted-Average Grant Price Per Share, Granted | $33.72 |
Weighted-Average Grant Price Per Share, Vested | $0 |
Weighted-Average Grant Price Per Share, Forfeited | $0 |
Nonvested, Weighted-Average Grant Price Per Share, Ending Balance | $33.72 |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value of Each SAR (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Average risk-free interest rate | 1.70% | 0.70% | 0.80% |
Expected term (years) | 5 years | 5 years | 5 years |
Expected volatility | 52.60% | 63.70% | 65.90% |
StockBased_Compensation_SAR_Ac
Stock-Based Compensation - SAR Activity (Detail) (Stock Appreciation Rights [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Appreciation Rights [Member] | |||
Schedule Of Stock Appreciation Rights Activity [Line Items] | |||
SARs Outstanding, Beginning Balance | 739,194 | 1,374,380 | 2,325,410 |
Granted, SARs | 3,866 | 121,176 | 201,828 |
Exercised, SARs | -218,826 | -749,334 | -1,135,906 |
Canceled, SARs | -8,404 | -7,028 | -16,952 |
Shares Outstanding, SARs, Ending Balance | 515,830 | 739,194 | 1,374,380 |
Outstanding, Weighted Average Grant Price Per Share, Beginning Balance | $12.93 | $9.28 | $6.59 |
Vested, SARs | 383,488 | ||
Granted, Weighted Average Grant Price Per Share | $37.88 | $21.95 | $12.88 |
Exercisable, SARs | 383,488 | ||
Exercised, Weighted Average Grant Price Per Share | $10.96 | $7.70 | $6.54 |
Canceled, Weighted Average Grant Price Per Share | $4.74 | $13.10 | $12.08 |
Outstanding, Weighted Average Grant Price Per Share, Ending Balance | $13.98 | $12.93 | $9.28 |
Vested, Weighted Average Grant Price Per Share | $12.55 | ||
Exercisable, Weighted Average Grant Price Per Share | $12.55 | ||
Weighted Average Remaining Contractual Life, Outstanding | 6 years 6 months | ||
Weighted Average Remaining Contractual Life, Vested | 6 years 1 month 6 days | ||
Weighted Average Remaining Contractual Life, Exercisable | 6 years 1 month 6 days | ||
Aggregate Intrinsic Value, Outstanding | $14,754,320 | ||
Aggregate Intrinsic Value, Vested | 11,514,749 | ||
Aggregate Intrinsic Value, Exercisable | $11,514,749 |
StockBased_Compensation_Stock_
Stock-Based Compensation - Stock Option Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Outstanding Options, Beginning Balance | 42,288 | 241,276 | 290,138 |
Options Granted | 0 | 0 | 0 |
Options Exercised | -27,942 | -186,968 | -46,378 |
Options Canceled | -1,188 | -12,020 | -2,484 |
Outstanding Options, Ending Balance | 13,158 | 42,288 | 241,276 |
Weighted Average Exercise Price Per Share, Outstanding, Beginning Balance | $20.05 | $20.19 | $19.04 |
Options Vested | 13,158 | ||
Weighted Average Exercise Price Per Share, Granted | $0 | $0 | $0 |
Options Exercisable | 13,158 | ||
Weighted Average Exercise Price Per Share, Exercised | $35.73 | $24.92 | $15.68 |
Weighted Average Exercise Price Per Share, Canceled | $17.92 | $18.16 | $10 |
Weighted Average Exercise Price Per Share, Outstanding, Ending Balance | $23.36 | $20.05 | $20.19 |
Weighted Average Exercise Price Per Share, Vested | $23.36 | ||
Weighted Average Exercise Price Per Share, Exercisable | $23.36 | ||
Weighted Average Remaining Contractual Life, Outstanding | 2 months 12 days | ||
Weighted Average Remaining Contractual Life, Vested | 2 months 12 days | ||
Weighted Average Remaining Contractual Life, Exercisable | 2 months 12 days | ||
Aggregate Intrinsic Value, Outstanding | $252,963 | ||
Aggregate Intrinsic Value, Vested | 252,963 | ||
Aggregate Intrinsic Value, Exercisable | $252,963 |
Leases_Minimum_Annual_Payments
Leases - Minimum Annual Payments Under Non-Cancelable Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2015 | $6,753 |
2016 | 5,490 |
2017 | 5,370 |
2018 | 5,308 |
2019 | 4,467 |
Thereafter | 10,730 |
Total minimum lease payments | $38,118 |
Leases_Additional_Information_
Leases - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases [Abstract] | |||
Recognized rental expenses | $7.50 | $6.50 | $7.50 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Percentage of employee's contribution to the plan up to 6% of base salary matched by the Company | 100.00% | ||
Employer's contribution percentage | 6.00% | ||
Employer's contribution | $2 | $1.80 | $1.60 |
Income_Taxes_Income_Tax_Provis
Income Taxes - Income Tax Provision (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current income tax provision: | |||
Federal | $18,722 | $1,745 | $303 |
State | 3,131 | 404 | 88 |
Total | 21,853 | 2,149 | 391 |
Deferred income tax provision (benefit): | |||
Federal | 3,118 | -11,182 | 510 |
State | 456 | -1,516 | 108 |
Total | 3,574 | -12,698 | 618 |
Total income tax provision (benefit) | $25,427 | ($10,549) | $1,009 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Differences between Income Tax Provision (Benefit) and Income Tax Determined by Applying US Federal Statutory Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
U.S. federal statutory taxes | $23,432 | $8,417 | $1,305 |
State and local taxes, net of U.S. federal benefit | 2,856 | 1,061 | -418 |
Permanent items | -868 | 225 | 198 |
Federal credits | -214 | -566 | -54 |
Other | -43 | 244 | 46 |
Increase (decrease) in valuation allowance | 264 | -19,930 | -68 |
Total income tax provision (benefit) | $25,427 | ($10,549) | $1,009 |
Income_Taxes_Schedule_of_Defer
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Net operating losses | $347 | $483 |
Warranty reserve | 13,032 | 16,085 |
Stock-based compensation | 2,931 | 2,383 |
Accruals not currently deductible and other | 5,221 | 6,210 |
Inventories | 4,437 | 3,843 |
State tax credit carryforwards | 4,050 | 3,714 |
Gross deferred tax assets, before valuation allowance | 30,018 | 32,718 |
Valuation allowance | -4,465 | -4,201 |
Gross deferred tax assets, after valuation allowance | 25,553 | 28,517 |
Deferred tax liabilities: | ||
Depreciation and other | -19,990 | -19,380 |
Gross deferred tax liabilities | -19,990 | -19,380 |
Net deferred tax asset | $5,563 | $9,137 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Income Tax Examination [Line Items] | ||||
Deferred tax assets previously reserved under a valuation allowance | $9,100,000 | $9,100,000 | ||
Valuation allowance | 4,465,000 | 4,201,000 | 4,201,000 | |
Provision (benefit) for income taxes | 25,427,000 | -10,549,000 | 1,009,000 | |
Excess tax benefits from stock compensation | 12,883,000 | 1,466,000 | ||
Unrecognized tax benefits related to identified uncertain tax positions | 0 | |||
Exit Full Valuation Allowance [Member] | ||||
Income Tax Examination [Line Items] | ||||
Provision (benefit) for income taxes | $10,900,000 | |||
Earliest Tax Year [Member] | Federal Tax Jurisdiction [Member] | ||||
Income Tax Examination [Line Items] | ||||
Tax years subject to examination | 2011 | |||
Earliest Tax Year [Member] | Michigan [Member] | ||||
Income Tax Examination [Line Items] | ||||
Tax years examined | 2008 | |||
Latest Tax Year [Member] | Federal Tax Jurisdiction [Member] | ||||
Income Tax Examination [Line Items] | ||||
Tax years subject to examination | 2013 | |||
Latest Tax Year [Member] | Michigan [Member] | ||||
Income Tax Examination [Line Items] | ||||
Tax years examined | 2011 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Letter | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Payments related to mold growth litigation | $1,800,000 | ||
Maximum expected total payments under the settlement | 1,000,000 | ||
Average period for PE material purchases under short-term supply contracts for which pricing is negotiated as needed | 2 years | ||
Charge recorded | 1,471,000 | 1,144,000 | |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2015 | 6,753,000 | ||
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2016 | 5,490,000 | ||
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2017 | 5,370,000 | ||
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2018 | 5,308,000 | ||
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2019 | 4,467,000 | ||
Letters sent to homeowners | 10,000 | ||
Increase in warranty reserve | 20,000,000 | ||
Surface Flaking Warranty Reserve [Member] | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Increase in warranty reserve | 20,000,000 | 20,000,000 | |
Percentage change in warranty claims used as a threshold for disclosure | 10.00% | ||
Change in warranty reserve for disclosure purposes only | 3,100,000 | ||
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 | ||
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] | Residential Use [Member] | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Warranty period | 25 years | ||
TrexTrim and Trex Reveal Railing [Member] | Commercial 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 | 24,732 | ||
Contract Termination [Member] | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Lease square feet | 55,047 | ||
Charge recorded | 1,471,000 | 1,144,000 | |
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2015 | 1,900,000 | ||
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2016 | 1,900,000 | ||
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2017 | 2,000,000 | ||
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2018 | 2,000,000 | ||
Minimum payments remaining under the Company's lease relating to its reconsidered corporate relocation for 2019 | 1,000,000 | ||
Minimum receipts remaining under the Company's existing subleases for 2015 | 700,000 | ||
Minimum receipts remaining under the Company's existing subleases for 2016 | 600,000 | ||
Minimum receipts remaining under the Company's existing subleases for 2017 | 600,000 | ||
Minimum receipts remaining under the Company's existing subleases for 2018 | 600,000 | ||
Minimum receipts remaining under the Company's existing subleases for 2019 | 400,000 | ||
Raw Material Supply Contracts [Member] | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Purchase commitment | 23,600,000 | ||
Purchase commitment, due in second year | 13,300,000 | ||
Purchase commitment, due in third year | 5,700,000 | ||
Purchase commitment, due in fourth year | 48,000 | ||
Third Party Manufacturing Contracts [Member] | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Purchase commitment | $1,900,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Summary of Liability Related to Lease (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ||
Beginning balance | $1,787 | $1,103 |
Net rental payments | -403 | -558 |
Accretion of discount | 178 | 98 |
Charge recorded due to revisions of its estimate of future sublease receipts | 1,471 | 1,144 |
Ending balance | $3,033 | $1,787 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Summary of Reconciliation of Company's Surface Flaking Warranty Reserve (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Warranties [Line Items] | |||
Changes in estimates related to pre-existing warranties | $20,000 | ||
Surface Flaking Warranty Reserve [Member] | |||
Warranties [Line Items] | |||
Beginning balance | 40,312 | 28,487 | |
Changes in estimates related to pre-existing warranties | 20,000 | 20,000 | |
Settlements made during the period | -8,893 | -8,175 | |
Ending balance | $31,419 | $40,312 |
Interim_Financial_Data_Unaudit2
Interim Financial Data (Unaudited) - Summary of Interim Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $74,202 | $95,502 | $121,311 | $100,645 | $63,831 | $72,249 | $98,551 | $107,880 | $391,660 | $342,511 | $307,354 |
Gross profit | 26,635 | 30,369 | 45,026 | 38,167 | 19,685 | 151 | 36,922 | 41,860 | 140,196 | 98,618 | 84,582 |
Net income (loss) | $5,153 | $8,913 | $15,161 | $12,295 | $15,103 | ($15,298) | $13,224 | $21,569 | $41,521 | $34,598 | $2,720 |
Basic net income (loss) per share | $0.16 | $0.28 | $0.46 | $0.37 | $0.46 | ($0.45) | $0.39 | $0.64 | $1.28 | $1.03 | $0.08 |
Diluted net income (loss) per share | $0.16 | $0.28 | $0.46 | $0.37 | $0.45 | ($0.45) | $0.38 | $0.62 | $1.27 | $1.01 | $0.08 |
Interim_Financial_Data_Unaudit3
Interim Financial Data (Unaudited) - Summary of Interim Financial Data (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Interim Reporting [Line Items] | |||||
Increase in warranty reserve | $20,000 | ||||
Provision (benefit) for income taxes | 25,427 | -10,549 | 1,009 | ||
Surface Flaking Warranty Reserve [Member] | |||||
Interim Reporting [Line Items] | |||||
Increase in warranty reserve | 20,000 | 20,000 | |||
Exit Full Valuation Allowance [Member] | |||||
Interim Reporting [Line Items] | |||||
Provision (benefit) for income taxes | $10,900 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts and Reserves (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $7 | $292 | |
Additions (Reductions) Charged to Cost and Expenses | 5 | -3 | -362 |
Other | 0 | 0 | 0 |
Deductions | -5 | -4 | 77 |
Balance at End of Period | 0 | 7 | |
Warranty Reserve [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 40,812 | 28,987 | 16,345 |
Additions (Reductions) Charged to Cost and Expenses | 3,774 | 20,000 | 21,487 |
Other | 0 | 0 | 0 |
Deductions | -10,745 | -8,175 | -8,845 |
Balance at End of Period | 33,841 | 40,812 | 28,987 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 4,201 | 24,131 | 24,199 |
Additions (Reductions) Charged to Cost and Expenses | 388 | -68 | |
Other | 0 | 0 | 0 |
Deductions | -124 | -19,930 | |
Balance at End of Period | $4,465 | $4,201 | $24,131 |