Trex (TREX) 10-Q 31 Oct 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 17, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	TREX
Entity Registrant Name	TREX CO INC
Entity Central Index Key	1,069,878
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		29,424,889

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Net sales	$ 140,194	$ 106,168	$ 442,941	$ 384,294
Cost of sales	84,910	76,223	250,473	235,312
Gross profit	55,284	29,945	192,468	148,982
Selling, general and administrative expenses	24,919	19,379	75,409	64,786
Income from operations	30,365	10,566	117,059	84,196
Interest expense, net	59	77	515	1,108
Income before income taxes	30,306	10,489	116,544	83,088
Provision for income taxes	10,208	2,702	39,715	27,871
Net income	$ 20,098	$ 7,787	$ 76,829	$ 55,217
Basic earnings per common share	$ 0.68	$ 0.27	$ 2.61	$ 1.88
Basic weighted average common shares outstanding	29,404,049	29,295,284	29,385,722	29,419,958
Diluted earnings per common share	$ 0.68	$ 0.26	$ 2.60	$ 1.86
Diluted weighted average common shares outstanding	29,578,216	29,516,718	29,563,497	29,635,796
Comprehensive income	$ 20,098	$ 7,787	$ 76,829	$ 55,217

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 25,541	$ 18,664
Accounts receivable, net	70,802	48,039
Contract retainage	1,893
Inventories	26,029	28,546
Prepaid expenses and other assets	3,912	10,400
Revenues in excess of billings	4,706
Total current assets	132,883	105,649
Property, plant and equipment, net	102,788	103,286
Goodwill and other intangibles	72,544	10,523
Other assets	2,981	1,972
Total assets	311,196	221,430
Current liabilities:
Accounts payable	15,960	10,767
Accrued expenses and other liabilities	41,327	34,693
Accrued warranty	6,725	5,925
Billings in excess of revenues	1,353
Customer deposits	953
Total current liabilities	66,318	51,385
Deferred income taxes	894	894
Non-current accrued warranty	29,733	31,767
Other long-term liabilities	2,676	3,223
Total liabilities	99,621	87,269
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; 34,918,427 and 34,894,233 shares issued and 29,424,746 and 29,400,552 shares outstanding at September 30, 2017 and December 31, 2016, respectively	349	349
Additional paid-in capital	120,667	120,082
Retained earnings	264,071	187,242
Treasury stock, at cost, 5,493,681 shares at September 30, 2017 and December 31, 2016	(173,512)	(173,512)
Total stockholders' equity	211,575	134,161
Total liabilities and stockholders' equity	$ 311,196	$ 221,430

Condensed Consolidated Balance4

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
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	34,918,427	34,894,233
Common stock, shares outstanding	29,424,746	29,400,552
Treasury stock, shares	5,493,681	5,493,681

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating Activities
Net income	$ 76,829	$ 55,217
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,065	10,893
Stock-based compensation	3,913	3,806
Loss (gain) on disposal of property, plant and equipment	1,720	(189)
Other non-cash adjustments	(405)	(285)
Changes in operating assets and liabilities:
Accounts receivable	(14,407)	1,580
Contract retainage	55
Inventories	4,860	6,597
Prepaid expenses and other assets	2,987	(771)
Revenues in excess of billings	(1,243)
Accounts payable	1,203	(6,761)
Accrued expenses and other liabilities	(1,430)	5,005
Billings in excess of revenues	(399)
Customer deposits	(609)
Income taxes receivable/payable	7,698	8,487
Net cash provided by operating activities	92,837	83,579
Investing Activities
Expenditures for property, plant and equipment	(11,108)	(8,534)
Proceeds from sales of property, plant and equipment		4,349
Acquisition of business	(71,523)
Net cash used in investing activities	(82,631)	(4,185)
Financing Activities
Borrowings under line of credit	201,000	242,700
Principal payments under line of credit	(201,000)	(249,700)
Repurchases of common stock	(3,617)	(55,185)
Financing costs		(485)
Proceeds from employee stock purchase and option plans	288	218
Net cash used in financing activities	(3,329)	(62,452)
Net increase in cash and cash equivalents	6,877	16,942
Cash and cash equivalents, beginning of period	18,664	5,995
Cash and cash equivalents, end of period	25,541	22,937
Supplemental Disclosure:
Cash paid for interest	416	849
Cash paid for income taxes, net	$ 32,016	$ 19,435

Business and Organization

Business and Organization	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Organization	1. BUSINESS AND ORGANIZATION Trex Company, Inc. (Company) is the world’s largest manufacturer of wood-alternative decking and railing products, with more than 25 years of product experience which are marketed under the brand name Trex ® low-maintenance (540) 542-6300.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	2. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q S-X, The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Trex Wood-Polymer Espana, S.L, for all periods presented. The Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Cash Flows of the Company include the operations and cash flows of Trex Commercial Products, Inc., its newly-formed, wholly-owned subsidiary, from July 31, 2017 through September 30, 2017. The Company’s Condensed Consolidated Balance Sheet includes the assets and liabilities of Trex Commercial Products, Inc. at September 30, 2017. Trex Commercial Products, Inc. was formed to acquire certain assets and assume certain liabilities of SC Company on July 31, 2017. Additional information on the acquisition of SC Company is presented in Note 6. The consolidated results of operations for the nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of December 31, 2016 and 2015 and for each of the three years in the period ended December 31, 2016 included in the Annual Report of Trex Company, Inc. on Form 10-K,

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Significant Accounting Policies	3. SIGNIFICANT ACCOUNTING POLICIES In addition to the critical accounting policies included in the Company’s Annual Report on Form 10-K Revenue Recognition For Trex Commercial Products, the Company recognizes revenue using the percentage of completion method measured by the ratio of direct costs incurred to date to estimated total costs for each contract. Contract costs include all direct material, labor, subcontract and certain indirect costs. Administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are recognized when such losses are determined. Changes in job performance, conditions and estimated profitability may result in revisions to costs and income and are recognized in the period they are determined. Revenues recognized in excess of amounts billed are classified under current assets. Billings in excess of revenues are classified under current liabilities. Concentrations and Credit Risk In addition to its trade receivables, the Company assesses the credit risk exposure of its customers’ contracts receivable by considering the length of time receivables may be past due, the customer’s financial condition and ability to repay the obligation, historical and expected credit loss experience, and other factors. Contracts receivable are carried at the original invoice amount in accounts receivable in the Company’s Condensed Consolidated Balance Sheet and are generally due when billed, and contract retainage is generally due at the completion of the construction contract.

Recently Adopted Accounting Sta

Recently Adopted Accounting Standard	9 Months Ended
	Sep. 30, 2017
Accounting Changes and Error Corrections [Abstract]
Recently Adopted Accounting Standard	4. RECENTLY ADOPTED ACCOUNTING STANDARD In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Compensation – Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting • The standard requires that excess tax benefits of the settlement or vesting of time-based restricted stock or time-based restricted stock units and performance-based restricted stock or performance-based restricted stock units be recorded within income tax expense. Prior to adoption this amount would have been recorded as an increase in additional paid-in Three Months Ended September 30, 2016 As Reported Adjusted (in thousands, except share and per share data) Provision for income taxes $ 3,591 $ 2,702 Net Income $ 6,898 $ 7,787 Basic net income per share $ 0.24 $ 0.27 Diluted net income per share $ 0.23 $ 0.26 Diluted weighted average common shares outstanding 29,457,653 29,516,718 Nine Months Ended September 30, 2016 As Reported Adjusted (in thousands, except share and per share data) Provision for income taxes $ 29,510 $ 27,871 Net Income $ 53,578 $ 55,217 Basic net income per share $ 1.82 $ 1.88 Diluted net income per share $ 1.81 $ 1.86 Diluted weighted average common shares outstanding 29,581,578 29,635,796 Cash flows provided by operating activities $ 81,880 $ 83,579 Cash flows used in financing activities $ (60,573 ) $ (62,452 ) • The Company elected to change its policy on accounting for forfeitures and recognize forfeitures as they occur. The Company applied this guidance on a modified retrospective transition method. The Company determined that the cumulative effect of applying the guidance under the modified retrospective transition method was not material to its Consolidated Financial Statements. • The standard requires the presentation of employee taxes as a financing activity in the Consolidated Statements of Cash Flows. This provision did not impact the Company’s Consolidated Financial Statements as the Company previously presented employee taxes as a financing activity in its Consolidated Statements of Cash Flows. The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of diluted earnings per share for 2016, which did not materially increase the diluted weighted average common shares outstanding.

New Accounting Standards Not Ye

New Accounting Standards Not Yet Adopted	9 Months Ended
	Sep. 30, 2017
Accounting Changes and Error Corrections [Abstract]
New Accounting Standards Not Yet Adopted	5. NEW ACCOUNTING STANDARDS NOT YET ADOPTED In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718), Scope Modification Accounting In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) right-of-use right-of-use In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606), No. 2015-14, No. 2016-08, No. 2016-10, No. 2016-12, No. 2016-20

Acquisition

Acquisition	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
Acquisition	6. ACQUISITION On July 31, 2017, through its newly-formed, wholly-owned subsidiary, Trex Commercial Products, the Company acquired certain assets and assumed certain liabilities of SC Company for $71.8 million in cash, subject to adjustment pending final determination of working capital at closing. The Company used cash on hand and $30.0 million of funding from its existing revolving credit facility, which was fully paid on August 17, 2017, to acquire the assets. The acquired business designs, engineers and markets modular architectural railing systems and solutions for the commercial and multifamily markets, and provides staging, acoustical and seating systems for commercial markets, including sports stadiums and performing arts venues. As a result of the purchase, the Company gained access to growing commercial markets, expanded its custom design and engineering capabilities, and added the contract architect and specifier communities as new channels for its products. The acquisition was accounted for using the acquisition method of accounting under U.S. Generally Accepted Accounting Principles, which requires, among other things, that the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The fair values of consideration transferred and net assets acquired were determined using a combination of Level 2 and Level 3 inputs as specified in the fair value hierarchy in ASC 820, “ Fair Value Measurements and Disclosures Based on the Company’s preliminary valuation, a total estimated consideration of $71.8 million has been allocated on a preliminary basis to the assets acquired and liabilities assumed, as follows (in thousands). A final determination of the purchase price and adjustment to the fair values of assets acquired and liabilities assumed and finalization of the valuation report will be completed upon the final determination of working capital at closing: Accounts receivable, net $ 8,357 Contract retainage 1,948 Inventories, net 2,344 Prepaid expenses and other assets 1,223 Revenues in excess of billings 3,463 Fixed assets, net 1,264 Intangible assets 4,900 Goodwill 57,938 Accounts payable (3,990 ) Accrued liabilities and other expenses (2,329 ) Billings in excess of revenues (1,752 ) Customer Deposits (1,562 ) Total estimated consideration $ 71,804 The preliminary goodwill of $57.9 million is primarily attributable to the potential opportunity for the Company to offer full service railing systems in the growing commercial and multi-family markets, access to a complementary product category with a track record of substantial revenue growth, the ability to achieve economies of scale around raw material procurement, an increase in the range of products the Company may offer its core customers, and intangible assets that do not qualify for separable or legal criterion, such as an assembled workforce. The amount of goodwill that is expected to be amortized and deductible for tax purposes in 2017 is $1.1 million. All of the goodwill was recorded to the Trex Commercial Products reportable segment. The fair value attributed to intangible assets, which consists of production backlog and trade names and trademarks, is being amortized straight line over 12 months and is based on the estimated economics of the assets. The fair value attributed to the intangible assets acquired and goodwill was based on assumptions and other information compiled by management, including independent valuations that utilized established valuation techniques. From July 31, 2017, through September 31, 2017, Trex Commercial Products generated $9.2 million of revenue and incurred a net loss of $75 thousand. The Company incurred $0.5 million of acquisition-related expenses during the nine months ended September 30, 2017, which are included in selling, general and administrative expense. The following pro forma results are prepared for comparative purposes only and do not necessarily reflect the results that would have occurred had the acquisition occurred at the beginning of the years presented or the results which may occur in the future. The following unaudited pro forma results of operations assume the acquisition occurred on January 1, 2016 (in thousands, except per share amounts): Nine Months Ended September 30 2017 2016 2017 2016 Actual Pro Forma Net sales $ 442,941 $ 384,294 $ 475,076 $ 427,043 Net income $ 76,829 $ 55,217 $ 77,570 $ 54,978 Basic earnings per common share $ 2.61 $ 1.88 $ 2.64 $ 1.87 Diluted earnings per common share $ 2.60 $ 1.86 $ 2.62 $ 1.86 Significant pro forma adjustments included in the above pro forma information include an adjustment to amortization expense for the intangible assets acquired (see Note 9), elimination of transaction costs related to the acquisition as such costs are considered to be non-recurring

Inventories

Inventories	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventories	7. INVENTORIES Inventories valued at LIFO (last-in, first-out), September 30, December 31, Finished goods $ 23,486 $ 29,686 Raw materials 21,344 20,231 Total FIFO (first-in, first-out) 44,830 49,917 Reserve to adjust inventories to LIFO value (21,371 ) (21,371 ) Total LIFO inventories $ 23,459 $ 28,546 The Company utilizes the LIFO method of accounting related to its wood-alternative decking and residential railing products, which generally provides for the matching of current costs with current revenues. However, under the LIFO method, reductions in annual inventory balances cause a portion of the Company’s cost of sales to be based on historical costs rather than current year costs (LIFO liquidation). Reductions in interim inventory balances expected to be replenished by year-end year-end year-end Inventories valued at lower of cost (FIFO method) and net realizable value consist of the following (in thousands): September 30, December 31, Work-in-process $ 580 $ — Raw materials 1,990 — Total FIFO inventories $ 2,570 $ — The Company utilizes the FIFO method of accounting related to its commercial railing and staging products. Work-in-process

Prepaid Expenses and Other Asse

Prepaid Expenses and Other Assets	9 Months Ended
	Sep. 30, 2017
Text Block [Abstract]
Prepaid Expenses and Other Assets	8. PREPAID EXPENSES AND OTHER ASSETS Prepaid expenses and other assets consist of the following (in thousands): September 30, 2017 December 31, Prepaid expenses $ 3,190 $ 6,209 Income tax receivable — 4,024 Other 722 167 Total prepaid expenses and other assets $ 3,912 $ 10,400

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	9. GOODWILL AND OTHER INTANGIBLE ASSETS The following table summarizes the activity related to the carrying amount of goodwill during the nine months ended September 30, 2017 (in thousands): 2017 Beginning balance, January 1 $ 10,523 Goodwill recognized from acquisition of SC Company 57,938 Ending balance, September 30 $ 68,461 Intangible assets acquired from SC Company on July 31, 2017 consist of the following at September 30, 2017: Amortization (in months) Intangible assets: Customer backlog $ 4,000 12 Trade names and trademarks 900 12 Total intangible assets 4,900 Accumulated amortization: Customer backlog (683 ) Trade name (134 ) Total accumulated amortization (817 ) Intantible assets, net $ 4,083 Intangible asset amounts were determined based on the estimated economics of the asset and are amortized over the estimated useful lives on a straight-line bases, which approximates the pattern in which the economic benefits are expected to be received. Amortization expense for the quarterly period ended September 31, 2017 was $0.8 million.

Accrued Expenses and Other Liab

Accrued Expenses and Other Liabilities	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Accrued Expenses and Other Liabilities	10. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following (in thousands): September 30, December 31, Sales and marketing $ 21,013 $ 16,707 Compensation and benefits 10,727 13,298 Income taxes 3,674 — Manufacturing costs 1,215 1,799 Rent obligations 739 632 Other 3,959 2,257 Total accrued expenses and other liabilities $ 41,327 $ 34,693

Debt

Debt	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Debt	11. DEBT The Company’s outstanding debt consists of a revolving credit facility. Revolving Credit Facility On January 12, 2016, the Company entered into a Third Amended and Restated Credit Agreement, as amended, with Bank of America, N.A. as Lender, Administrative Agent, Swing Line Lender and Letter of Credit Issuer, and certain other lenders including Citibank, N.A., Capital One, N.A., and SunTrust. The Third Amended Credit Agreement, as amended, provides the Company with one or more revolving loans in a collective maximum principal amount of $250 million from January 1 through June 30 of each year, and a maximum principal amount of $200 million from July 1 through December 31 of each year throughout the term, which ends January 12, 2021. The Company had no outstanding borrowings under its revolving credit facility and remaining available borrowing capacity of $200 million at September 30, 2017. 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 the Company’s ability to generate sufficient cash flow from operations. As of September 30, 2017, the Company was in compliance with all of the covenants contained in its debt agreements. Failure to comply with the loan covenants might cause lenders to accelerate the repayment obligations under the credit facility, which may be declared payable immediately based on a default.

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2017
Investments, All Other Investments [Abstract]
Financial Instruments	12. FINANCIAL INSTRUMENTS The Company considers the recorded value of its financial assets and liabilities, consisting primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities to approximate the fair value of the respective assets and liabilities at September 30, 2017 and December 31, 2016.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Stockholders' Equity	13. STOCKHOLDERS’ EQUITY Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator: Net income available to common shareholders $ 20,098 $ 7,787 $ 76,829 $ 55,217 Denominator: Basic weighted average shares outstanding 29,404,049 29,295,284 29,385,722 29,419,958 Effect of dilutive securities: Stock appreciation rights and options 97,315 116,803 98,905 133,907 Restricted stock 76,852 104,631 78,870 81,931 Diluted weighted average shares outstanding 29,578,216 29,516,718 29,563,497 29,635,796 Basic earnings per share $ 0.68 $ 0.27 $ 2.61 $ 1.88 Diluted earnings per share $ 0.68 $ 0.26 $ 2.60 $ 1.86 Diluted earnings per share is computed using the weighted average number of shares determined for the basic earnings per share computation plus the dilutive effect of common stock equivalents using the treasury stock method. The computation of diluted earnings per share excludes the following potentially dilutive securities because the effect would be anti-dilutive: Three Months Ended Nine Months Ended 2017 2016 2017 2016 Stock appreciation rights 17,957 — 14,156 6,174 Restricted stock 330 46 110 15 Stock Repurchase Programs On October 22, 2015, the Board of Directors adopted a stock repurchase program of up to 3,150,000 shares of the Company’s outstanding common stock (October 2015 Stock Repurchase Program). This authorization terminated on December 31, 2016. The Company repurchased 1,578,952 shares for $53.3 million under the October 2015 Stock Repurchase Program. On February 16, 2017, the Board of Directors authorized a common stock repurchase program of up to 2,960,000 shares of the Company’s outstanding common stock (February 2017 Stock Repurchase Program). As of the date of this report, the Company has made no repurchases under the February 2017 Stock Repurchase Program.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	14. STOCK-BASED COMPENSATION The Company has one stock-based compensation plan, the 2014 Stock Incentive Plan (Plan), approved by the Company’s stockholders in April 2014. The Plan amended and restated in its entirety the Trex Company, Inc. 2005 Stock Incentive Plan. The Plan is administered by the Compensation Committee of the Company’s Board of Directors. Stock-based compensation is granted to officers, directors and certain key employees in accordance with the provisions of the Plan. The Plan provides for grants of stock options, restricted stock, restricted stock units, stock appreciation rights (SARs), and unrestricted stock. As of September 30, 2017, the total aggregate number of shares of the Company’s common stock that may be issued under the Plan is 6,420,000. The following table summarizes the Company’s stock-based compensation grants for the nine months ended September 30, 2017: Stock Awards Granted Weighted-Average Per Share Time-based restricted stock units 36,105 $ 72.50 Performance-based restricted stock units (a) 43,307 $ 57.54 Stock appreciation rights 18,739 $ 70.75 (a) Includes 25,986 of target performance-based restricted stock unit awards granted during the nine months ended September 30, 2017, and adjustments of 1,071, 5,396 and 10,854 grants due to the actual performance level achieved for restricted stock and restricted stock units awarded in 2014, 2015, and 2016, respectively. The fair value of each SAR is estimated on the date of grant using a Black-Scholes option-pricing formula. There were no SARs issued during the nine months ended September 30, 2016. For SARs issued in the nine months ended September 30, 2017 the data and assumptions shown in the following table were used: Nine Months Ended September 30, 2017 Weighted-average fair value of grants $ 27.97 Dividend yield 0 % Average risk-free interest rate 2.0 % Expected term (years) 5 Expected volatility 42.2 % The Company recognizes stock-based compensation expense ratably over the period from the grant date to the earlier of: (1) the vesting date of the award, or (2) the date the grantee is eligible to retire without forfeiting the award. For performance-based restricted stock and performance-based restricted stock units, expense is recognized ratably over the performance and vesting period of each tranche based on management’s judgment of the ultimate award that is likely to be paid out based on the achievement of the predetermined performance measures. The following table summarizes the Company’s stock-based compensation expense (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Stock appreciation rights $ 28 $ — $ 220 $ 184 Time-based restricted stock 417 368 1,557 1,847 Performance-based restricted stock 538 450 2,044 1,680 Employee stock purchase plan 54 43 92 95 Total stock-based compensation $ 1,037 $ 861 $ 3,913 $ 3,806 Total unrecognized compensation cost related to unvested awards as of September 30, 2017 was $4.8 million. The cost of these unvested awards is being recognized over the requisite vesting period of each award.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	15. INCOME TAXES The Company’s effective tax rate for the nine months ended September 30, 2017 and 2016 was 34.1% and 33.5%, respectively, which resulted in expense of $39.7 million and $27.9 million, respectively. The increase of 0.6% in the effective tax rate was primarily due to lower excess tax benefits in 2017 compared to 2016. In fiscal year 2016, the Company adopted FASB ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. During the nine months ended September 30, 2017 and September 30, 2016, the Company realized $1.4 million and $1.7 million, respectively, of excess tax benefits from stock-based awards and recorded a corresponding benefit to income tax expense. The Company analyzes its deferred tax assets each reporting period, considering all available positive and negative evidence in determining the expected realization of those deferred tax assets. As of September 30, 2017, the Company maintains a valuation allowance of $4.1 million against deferred tax assets primarily related to state tax credits it estimates will expire before they are realized. The Company operates in multiple tax jurisdictions and, in the normal course of business, its tax returns are subject to examination by various taxing authorities. Such examinations may result in future assessments by these taxing authorities, and the Company accrues a liability when it believes that it is more likely than not that benefits of tax positions will not be realized. The Company believes that adequate provisions have been made for all tax returns subject to examination. As of September 30, 2017, for certain tax jurisdictions tax years 2013 through 2016 remain subject to examination. Sales made to foreign distributors are not taxable in any foreign jurisdictions as the Company does not have a taxable presence in any foreign jurisdiction.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Segment Information	16. SEGMENT INFORMATION Prior to July 31, 2017, the Company operated in one reportable segment. Subsequent to the acquisition of certain assets and assumption of certain liabilities of SC Company on July 31, 2017, the Company operates in two reportable segments: • Trex Residential Products manufactures wood-alternative decking and railing and related products marketed under the brand name Trex ® • Trex Commercial Products designs, engineers, and markets modular and architectural railing systems and solutions for the commercial and multifamily markets, and staging, acoustical and seating systems for commercial markets, including sports stadiums and performing arts venues. The segment’s products are sold through architects, specifiers, contractors, and others doing business within the segment’s commercial market. The Company’s operating segments have been determined in accordance with its internal management structure, which is organized based on residential and commercial sales activities. The Company evaluates performance of each segment primarily based on net sales and earnings before interest, taxes, depreciation and amortization (EBITDA). The Company uses net sales to assess performance and allocate resources as this measure represents the amount of business the segment engaged in during a given period of time, is an indicator of market growth and acceptance of segment products, and represents the segment’s customers’ spending habits along with the amount of product the segment sells relative to its competitors. The Company uses EBITDA to assess performance and allocate resources because it believes that EBITDA facilitates performance comparison between the segments by eliminating interest, taxes, depreciation and amortization charges to income. The below segment data for the nine months ended September 30, 2017, includes data for Trex Residential Products for the nine-month period and data for Trex Commercial Products from the date of the acquisition of SC Company through September 30, 2017 (in thousands): Nine Months Ended September 30, 2017 Residential Commercial Total Net sales $ 433,790 $ 9,151 $ 442,941 Net income (loss) $ 76,904 $ (75 ) $ 76,829 EBITDA $ 128,221 $ 806 $ 129,027 Depreciation and amortization $ 11,087 $ 881 $ 11,968 Income tax expense $ 39,715 $ — $ 39,715 Capital expenditures $ 11,068 $ 40 $ 11,108 Total assets $ 232,663 $ 78,533 $ 311,196 Reconciliation of net income to EBITDA: Nine Months Ended September 30, 2017 Residential Commercial Total Net income (loss) $ 76,904 $ (75 ) $ 76,829 Interest 515 — 515 Taxes 39,715 — 39,715 Depreciation and amortization 11,087 881 11,968 EBITDA $ 128,221 $ 806 $ 129,027 Three Months Ended September 30, 2017 Residential Commercial Total Net sales $ 131,043 $ 9,151 $ 140,194 Net income (loss) $ 20,173 $ (75 ) $ 20,098 EBITDA $ 34,079 $ 806 $ 34,885 Depreciation and amortization $ 3,639 $ 881 $ 4,520 Income tax expense $ 10,208 $ — $ 10,208 Capital expenditures $ 3,943 $ 40 $ 3,983 Total assets $ 232,663 $ 78,533 $ 311,196 Reconciliation of net income to EBITDA: Three Months Ended September 30, 2017 Residential Commercial Total Net income (loss) $ 20,173 $ (75 ) $ 20,098 Interest 59 — 59 Taxes 10,208 — 10,208 Depreciation and amortization 3,639 881 4,520 EBITDA $ 34,079 $ 806 $ 34,885

Seasonality

Seasonality	9 Months Ended
	Sep. 30, 2017
Text Block [Abstract]
Seasonality	17. SEASONALITY The Company’s operating results have historically varied from quarter to quarter. Seasonal, erratic or prolonged adverse weather conditions in certain geographic regions reduce the level of home improvement and construction activity and can shift demand for Trex products to a later period. As part of its normal business practice and consistent with industry practice, the Company has historically offered incentive programs to its distributors and dealers to build inventory levels before the start of the prime deck-building season in order to ensure adequate availability of the Company’s product to meet anticipated seasonal consumer demand. The seasonal effects are often offset by the positive effect of the incentive programs.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	18. COMMITMENTS AND CONTINGENCIES Contract Termination Costs The Company leases 55,047 square feet of office and storage space that it does not occupy, but has sublet all of the office space for the remainder of the term of its lease obligation, which ends June 30, 2019. The Company estimates that the future sublease receipts will be less than the remaining minimum lease payment obligations under its lease and has recorded a liability for the present value of the expected shortfall. As of September 30, 2017, minimum payments remaining under the Company’s lease relating to its reconsidered corporate relocation over the years ending December 31, 2017, 2018, and 2019 are $0.5 million, $2.0 million and $1.0 million, respectively. Net minimum receipts remaining under the Company’s existing subleases over the years ending December 31, 2017, 2018 and 2019 are $0.3 million, $1.3 million and $0.7 million, respectively. The following table provides information about the Company’s liability related to the lease (in thousands): 2017 2016 Beginning balance, January 1 $ 1,475 $ 2,106 Net rental payments (430 ) (536 ) Accretion of discount 78 113 Decrease in net estimated contract termination costs (23 ) (85 ) Ending balance, September 30 $ 1,100 $ 1,598 Product Warranty The Company warrants that its decking and residential railing products will be free from material defects in workmanship and materials for warranty periods ranging from 10 years to 25 years, depending on the product and its 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 continues to receive and settle claims for products manufactured at its Nevada facility prior to 2007 that exhibit surface flaking and maintains a warranty reserve to provide for the settlement of these claims. Estimating the warranty reserve for surface flaking claims requires management to estimate (1) the number of claims to be settled with payment and (2) the average cost to settle each claim. To estimate the number of claims to be settled with payment, the Company utilizes actuarial techniques to quantify both the expected number of claims to be received and the percentage of those claims that will ultimately require payment (collectively, elements). Estimates for these elements are quantified using a range of assumptions derived from claim count history and the identification of factors influencing the claim counts. The number of claims received has declined each year since peaking in 2009, although the rate of decline has decelerated in recent years. Additionally, events, such as the 2009 settlement of a class action lawsuit covering the surface defect and communications by the Company in 2013 informing homeowners of potential hazards associated with products exhibiting surface flaking that are not timely replaced, have obscured observable trends in historical claims activity. The cost per claim varies due to a number of factors, including the size of affected decks, the availability and type of replacement material used, the cost of production of replacement material and the method of claim settlement. The Company monitors surface flaking claims activity each quarter for indications that its estimates require revision. Typically, a majority of surface flaking claims received in a year are received during the summer outdoor season, which spans the second and third quarters. It has been the Company’s practice to utilize the actuarial techniques discussed above during the third quarter, after a significant portion of all claims has been received for the fiscal year and variances to annual claims expectations are more meaningful. The number of claims received in the nine months ended September 30, 2017 was lower than claims received in the nine months ended September 30, 2016, continuing the historical year-over-year decline in incoming claims, and consistent with the Company’s expectations. The average settlement cost per claim experienced in the nine months ended September 30, 2017 was lower than the average settlement cost per claim experienced during the nine months ended September 30, 2016 and consistent with the Company’s expectations for 2017. The Company believes its reserve at September 30, 2017 is sufficient to cover future surface flaking obligations. The Company’s analysis is based on currently known facts and a number of assumptions, as discussed above, and current expectations. 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 flows. The Company estimates that the annual number of claims received will continue to decline over time and that the average cost per claim will increase slightly, primarily due to inflation. If the level of claims received or average cost per claim differs materially from expectations, it could result in additional increases or decreases to the warranty reserve and a decrease or increase in 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 $2.9 million change in the surface flaking warranty reserve. The following is a reconciliation of the Company’s warranty reserve that represents amounts accrued for surface flaking claims (in thousands): 2017 2016 Beginning balance, January 1 $ 33,847 $ 29,673 Changes in estimates related to pre-existing — 9,835 Settlements made during the period (4,425 ) (4,188 ) Ending balance, September 30 $ 29,422 $ 35,320 The remainder of the Company’s warranty reserve represents amounts accrued for non-surface Legal Matters The Company has 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 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.

Significant Accounting Polici24

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Revenue Recognition	Revenue Recognition For Trex Commercial Products, the Company recognizes revenue using the percentage of completion method measured by the ratio of direct costs incurred to date to estimated total costs for each contract. Contract costs include all direct material, labor, subcontract and certain indirect costs. Administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are recognized when such losses are determined. Changes in job performance, conditions and estimated profitability may result in revisions to costs and income and are recognized in the period they are determined. Revenues recognized in excess of amounts billed are classified under current assets. Billings in excess of revenues are classified under current liabilities.
Concentrations and Credit Risk	Concentrations and Credit Risk In addition to its trade receivables, the Company assesses the credit risk exposure of its customers’ contracts receivable by considering the length of time receivables may be past due, the customer’s financial condition and ability to repay the obligation, historical and expected credit loss experience, and other factors. Contracts receivable are carried at the original invoice amount in accounts receivable in the Company’s Condensed Consolidated Balance Sheet and are generally due when billed, and contract retainage is generally due at the completion of the construction contract.
Financial Instruments	The Company considers the recorded value of its financial assets and liabilities, consisting primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities to approximate the fair value of the respective assets and liabilities at September 30, 2017 and December 31, 2016.
Share-based Compensation	The Company has one stock-based compensation plan, the 2014 Stock Incentive Plan (Plan), approved by the Company’s stockholders in April 2014. The Plan amended and restated in its entirety the Trex Company, Inc. 2005 Stock Incentive Plan. The Plan is administered by the Compensation Committee of the Company’s Board of Directors. Stock-based compensation is granted to officers, directors and certain key employees in accordance with the provisions of the Plan. The Plan provides for grants of stock options, restricted stock, restricted stock units, stock appreciation rights (SARs), and unrestricted stock. As of September 30, 2017, the total aggregate number of shares of the Company’s common stock that may be issued under the Plan is 6,420,000.

Recently Adopted Accounting S25

Recently Adopted Accounting Standard (Tables)	9 Months Ended
	Sep. 30, 2017
Accounting Changes and Error Corrections [Abstract]
Schedule of Previously Reported Quarterly Data	• The standard requires that excess tax benefits of the settlement or vesting of time-based restricted stock or time-based restricted stock units and performance-based restricted stock or performance-based restricted stock units be recorded within income tax expense. Prior to adoption this amount would have been recorded as an increase in additional paid-in Three Months Ended September 30, 2016 As Reported Adjusted (in thousands, except share and per share data) Provision for income taxes $ 3,591 $ 2,702 Net Income $ 6,898 $ 7,787 Basic net income per share $ 0.24 $ 0.27 Diluted net income per share $ 0.23 $ 0.26 Diluted weighted average common shares outstanding 29,457,653 29,516,718 Nine Months Ended September 30, 2016 As Reported Adjusted (in thousands, except share and per share data) Provision for income taxes $ 29,510 $ 27,871 Net Income $ 53,578 $ 55,217 Basic net income per share $ 1.82 $ 1.88 Diluted net income per share $ 1.81 $ 1.86 Diluted weighted average common shares outstanding 29,581,578 29,635,796 Cash flows provided by operating activities $ 81,880 $ 83,579 Cash flows used in financing activities $ (60,573 ) $ (62,452 )

Acquisition (Tables)

Acquisition (Tables)	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
Summary of Estimated Consideration Allocated on a Preliminary Basis to Assets Acquired and Liabilities Assumed	Based on the Company’s preliminary valuation, a total estimated consideration of $71.8 million has been allocated on a preliminary basis to the assets acquired and liabilities assumed, as follows (in thousands). Accounts receivable, net $ 8,357 Contract retainage 1,948 Inventories, net 2,344 Prepaid expenses and other assets 1,223 Revenues in excess of billings 3,463 Fixed assets, net 1,264 Intangible assets 4,900 Goodwill 57,938 Accounts payable (3,990 ) Accrued liabilities and other expenses (2,329 ) Billings in excess of revenues (1,752 ) Customer Deposits (1,562 ) Total estimated consideration $ 71,804
Summary of Unaudited Pro Forma Results of Operations	The following unaudited pro forma results of operations assume the acquisition occurred on January 1, 2016 (in thousands, except per share amounts): Nine Months Ended September 30 2017 2016 2017 2016 Actual Pro Forma Net sales $ 442,941 $ 384,294 $ 475,076 $ 427,043 Net income $ 76,829 $ 55,217 $ 77,570 $ 54,978 Basic earnings per common share $ 2.61 $ 1.88 $ 2.64 $ 1.87 Diluted earnings per common share $ 2.60 $ 1.86 $ 2.62 $ 1.86

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories valued at LIFO (last-in, first-out), September 30, December 31, Finished goods $ 23,486 $ 29,686 Raw materials 21,344 20,231 Total FIFO (first-in, first-out) 44,830 49,917 Reserve to adjust inventories to LIFO value (21,371 ) (21,371 ) Total LIFO inventories $ 23,459 $ 28,546 Inventories valued at lower of cost (FIFO method) and net realizable value consist of the following (in thousands): September 30, December 31, Work-in-process $ 580 $ — Raw materials 1,990 — Total FIFO inventories $ 2,570 $ —

Prepaid Expenses and Other As28

Prepaid Expenses and Other Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Text Block [Abstract]
Summary of Prepaid Expenses and Other Assets	Prepaid expenses and other assets consist of the following (in thousands): September 30, 2017 December 31, Prepaid expenses $ 3,190 $ 6,209 Income tax receivable — 4,024 Other 722 167 Total prepaid expenses and other assets $ 3,912 $ 10,400

Goodwill and Other Intangible29

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Activity Related to Carrying Amount of Goodwill	The following table summarizes the activity related to the carrying amount of goodwill during the nine months ended September 30, 2017 (in thousands): 2017 Beginning balance, January 1 $ 10,523 Goodwill recognized from acquisition of SC Company 57,938 Ending balance, September 30 $ 68,461
Details of Intangible Assets Acquired	Intangible assets acquired from SC Company on July 31, 2017 consist of the following at September 30, 2017: Amortization (in months) Intangible assets: Customer backlog $ 4,000 12 Trade names and trademarks 900 12 Total intangible assets 4,900 Accumulated amortization: Customer backlog (683 ) Trade name (134 ) Total accumulated amortization (817 ) Intantible assets, net $ 4,083

Accrued Expenses and Other Li30

Accrued Expenses and Other Liabilities (Tables)	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Summary of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities consist of the following (in thousands): September 30, December 31, Sales and marketing $ 21,013 $ 16,707 Compensation and benefits 10,727 13,298 Income taxes 3,674 — Manufacturing costs 1,215 1,799 Rent obligations 739 632 Other 3,959 2,257 Total accrued expenses and other liabilities $ 41,327 $ 34,693

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Computation of Basic and Diluted Earnings Per Share	The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator: Net income available to common shareholders $ 20,098 $ 7,787 $ 76,829 $ 55,217 Denominator: Basic weighted average shares outstanding 29,404,049 29,295,284 29,385,722 29,419,958 Effect of dilutive securities: Stock appreciation rights and options 97,315 116,803 98,905 133,907 Restricted stock 76,852 104,631 78,870 81,931 Diluted weighted average shares outstanding 29,578,216 29,516,718 29,563,497 29,635,796 Basic earnings per share $ 0.68 $ 0.27 $ 2.61 $ 1.88 Diluted earnings per share $ 0.68 $ 0.26 $ 2.60 $ 1.86
Antidilutive Securities Excluded from Computation of Earnings Per Share	The computation of diluted earnings per share excludes the following potentially dilutive securities because the effect would be anti-dilutive: Three Months Ended Nine Months Ended 2017 2016 2017 2016 Stock appreciation rights 17,957 — 14,156 6,174 Restricted stock 330 46 110 15

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock-Based Compensation Grants	The following table summarizes the Company’s stock-based compensation grants for the nine months ended September 30, 2017: Stock Awards Granted Weighted-Average Per Share Time-based restricted stock units 36,105 $ 72.50 Performance-based restricted stock units (a) 43,307 $ 57.54 Stock appreciation rights 18,739 $ 70.75 (a) Includes 25,986 of target performance-based restricted stock unit awards granted during the nine months ended September 30, 2017, and adjustments of 1,071, 5,396 and 10,854 grants due to the actual performance level achieved for restricted stock and restricted stock units awarded in 2014, 2015, and 2016, respectively.
Summary of Assumptions Used to Estimate Fair Value of Each SAR	The fair value of each SAR is estimated on the date of grant using a Black-Scholes option-pricing formula. There were no SARs issued during the nine months ended September 30, 2016. For SARs issued in the nine months ended September 30, 2017 the data and assumptions shown in the following table were used: Nine Months Ended September 30, 2017 Weighted-average fair value of grants $ 27.97 Dividend yield 0 % Average risk-free interest rate 2.0 % Expected term (years) 5 Expected volatility 42.2 %
Summary of Stock-Based Compensation Expense	The following table summarizes the Company’s stock-based compensation expense (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Stock appreciation rights $ 28 $ — $ 220 $ 184 Time-based restricted stock 417 368 1,557 1,847 Performance-based restricted stock 538 450 2,044 1,680 Employee stock purchase plan 54 43 92 95 Total stock-based compensation $ 1,037 $ 861 $ 3,913 $ 3,806

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Details of Segment Information	The below segment data for the nine months ended September 30, 2017, includes data for Trex Residential Products for the nine-month period and data for Trex Commercial Products from the date of the acquisition of SC Company through September 30, 2017 (in thousands): Nine Months Ended September 30, 2017 Residential Commercial Total Net sales $ 433,790 $ 9,151 $ 442,941 Net income (loss) $ 76,904 $ (75 ) $ 76,829 EBITDA $ 128,221 $ 806 $ 129,027 Depreciation and amortization $ 11,087 $ 881 $ 11,968 Income tax expense $ 39,715 $ — $ 39,715 Capital expenditures $ 11,068 $ 40 $ 11,108 Total assets $ 232,663 $ 78,533 $ 311,196 Three Months Ended September 30, 2017 Residential Commercial Total Net sales $ 131,043 $ 9,151 $ 140,194 Net income (loss) $ 20,173 $ (75 ) $ 20,098 EBITDA $ 34,079 $ 806 $ 34,885 Depreciation and amortization $ 3,639 $ 881 $ 4,520 Income tax expense $ 10,208 $ — $ 10,208 Capital expenditures $ 3,943 $ 40 $ 3,983 Total assets $ 232,663 $ 78,533 $ 311,196
Schedule of Reconciliation of Net Income to EBITDA	Reconciliation of net income to EBITDA: Nine Months Ended September 30, 2017 Residential Commercial Total Net income (loss) $ 76,904 $ (75 ) $ 76,829 Interest 515 — 515 Taxes 39,715 — 39,715 Depreciation and amortization 11,087 881 11,968 EBITDA $ 128,221 $ 806 $ 129,027 Reconciliation of net income to EBITDA: Three Months Ended September 30, 2017 Residential Commercial Total Net income (loss) $ 20,173 $ (75 ) $ 20,098 Interest 59 — 59 Taxes 10,208 — 10,208 Depreciation and amortization 3,639 881 4,520 EBITDA $ 34,079 $ 806 $ 34,885

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Summary of Liability Related to Lease	The following table provides information about the Company’s liability related to the lease (in thousands): 2017 2016 Beginning balance, January 1 $ 1,475 $ 2,106 Net rental payments (430 ) (536 ) Accretion of discount 78 113 Decrease in net estimated contract termination costs (23 ) (85 ) Ending balance, September 30 $ 1,100 $ 1,598
Summary of Reconciliation of Company's Warranty Reserve that Represents Amounts Accrued for Surface Flaking Claims	The following is a reconciliation of the Company’s warranty reserve that represents amounts accrued for surface flaking claims (in thousands): 2017 2016 Beginning balance, January 1 $ 33,847 $ 29,673 Changes in estimates related to pre-existing — 9,835 Settlements made during the period (4,425 ) (4,188 ) Ending balance, September 30 $ 29,422 $ 35,320

Business and Organization - Add

Business and Organization - Additional Information (Detail) - Segment	7 Months Ended	9 Months Ended
	Jul. 31, 2017	Sep. 30, 2017
Business And Organization [Line Items]
Number of reportable segments	1	2
Minimum [Member]
Business And Organization [Line Items]
Number of years of product experience		25 years

Recently Adopted Accounting S36

Recently Adopted Accounting Standard - Schedule of Previously Reported Quarterly Data (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Provision for income taxes	$ 10,208	$ 2,702	$ 39,715	$ 27,871
Net income	$ 20,098	$ 7,787	$ 76,829	$ 55,217
Basic net income per share	$ 0.68	$ 0.27	$ 2.61	$ 1.88
Diluted net income per share	$ 0.68	$ 0.26	$ 2.60	$ 1.86
Diluted weighted average common shares outstanding	29,578,216	29,516,718	29,563,497	29,635,796
Cash flows provided by operating activities			$ 92,837	$ 83,579
Cash flows used in financing activities			$ (3,329)	(62,452)
As Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Provision for income taxes		$ 3,591		29,510
Net income		$ 6,898		$ 53,578
Basic net income per share		$ 0.24		$ 1.82
Diluted net income per share		$ 0.23		$ 1.81
Diluted weighted average common shares outstanding		29,457,653		29,581,578
Cash flows provided by operating activities				$ 81,880
Cash flows used in financing activities				$ (60,573)

Acquisition - Additional Inform

Acquisition - Additional Information (Detail) - USD ($)	Aug. 17, 2017	Jul. 31, 2017	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Business Acquisition [Line Items]
Fund used to acquire business from revolving credit facility			$ 0	$ 0		$ 0
Repayment of revolving credit facility						201,000,000	$ 249,700,000
Goodwill			68,461,000	68,461,000		68,461,000		$ 10,523,000
Net income (loss)				20,098,000	$ 7,787,000	76,829,000	$ 55,217,000
Acquisition-related expenses						$ 500,000
Blended statutory rate						38.00%
Trex Commercial Products, Inc. (TCP) [Member]
Business Acquisition [Line Items]
Revenue			9,200,000
Net income (loss)			(75,000)
Staging Concepts Acquisition, LLC [Member]
Business Acquisition [Line Items]
Certain assets and liabilities acquired in cash		$ 71,800,000
Estimated consideration			71,804,000	71,804,000		$ 71,804,000
Goodwill			57,938,000	57,938,000		57,938,000
Goodwill expected to be amortized and deductible for tax purposes			$ 1,100,000	$ 1,100,000		$ 1,100,000
Amortization period for intangible assets						12 months
Staging Concepts Acquisition, LLC [Member] | Revolving Credit Facility [Member]
Business Acquisition [Line Items]
Fund used to acquire business from revolving credit facility		$ 30,000,000
Repayment of revolving credit facility	$ 30,000,000

Acquisition - Summary of Estima

Acquisition - Summary of Estimated Consideration Allocated on a Preliminary Basis to Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill	$ 68,461	$ 10,523
Staging Concepts Acquisition, LLC [Member]
Business Acquisition [Line Items]
Accounts receivable, net	8,357
Contract retainage	1,948
Inventories, net	2,344
Prepaid expenses and other assets	1,223
Revenues in excess of billings	3,463
Fixed assets, net	1,264
Intangible assets	4,900
Goodwill	57,938
Accounts payable	(3,990)
Accrued liabilities and other expenses	(2,329)
Billings in excess of revenues	(1,752)
Customer Deposits	(1,562)
Total estimated consideration	$ 71,804

Acquisition - Summary of Unaudi

Acquisition - Summary of Unaudited Pro Forma Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Business Combinations [Abstract]
Net sales	$ 140,194	$ 106,168	$ 442,941	$ 384,294
Net income	$ 20,098	$ 7,787	$ 76,829	$ 55,217
Basic earnings per common share	$ 0.68	$ 0.27	$ 2.61	$ 1.88
Diluted earnings per common share	$ 0.68	$ 0.26	$ 2.60	$ 1.86
Pro Forma Net sales			$ 475,076	$ 427,043
Pro Forma Net income			$ 77,570	$ 54,978
Pro Forma Basic earnings per common share			$ 2.64	$ 1.87
Pro Forma Diluted earnings per common share			$ 2.62	$ 1.86

Inventories - Summary of Invent

Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory [Line Items]
Total LIFO inventories	$ 26,029	$ 28,546
LIFO [Member]
Inventory [Line Items]
Finished goods	23,486	29,686
Raw materials	21,344	20,231
Total FIFO (first-in,first-out) inventories	44,830	49,917
Reserve to adjust inventories to LIFO value	(21,371)	(21,371)
Total LIFO inventories	23,459	$ 28,546
FIFO [Member]
Inventory [Line Items]
Work-in-process	580
Raw materials	1,990
Total FIFO (first-in,first-out) inventories	$ 2,570

Inventories - Additional Inform

Inventories - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Inventory Disclosure [Abstract]
LIFO inventory liquidations	$ 0	$ 0

Prepaid Expenses and Other As42

Prepaid Expenses and Other Assets - Summary of Prepaid Expenses and Other Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Prepaid Expense and Other Assets [Abstract]
Prepaid expenses	$ 3,190	$ 6,209
Income tax receivable		4,024
Other	722	167
Total prepaid expenses and other assets	$ 3,912	$ 10,400

Goodwill and Other Intangible43

Goodwill and Other Intangible Assets - Summary of Activity Related to Carrying Amount of Goodwill (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Beginning balance	$ 10,523
Goodwill recognized from acquisition of SC Company	57,938
Ending balance	$ 68,461

Goodwill and Other Intangible44

Goodwill and Other Intangible Assets - Details of Intangible Assets Acquired (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Indefinite-lived Intangible Assets [Line Items]
Net carrying amount,Intangible assets	$ 4,900
Net carrying amount, Accumulated amortization	(817)
Intantible assets, net	4,083
Customer Backlog [Member]
Indefinite-lived Intangible Assets [Line Items]
Net carrying amount,Intangible assets	4,000
Net carrying amount, Accumulated amortization	$ (683)
Amortization period	12 months
Trade Names and Trademarks [Member]
Indefinite-lived Intangible Assets [Line Items]
Net carrying amount,Intangible assets	$ 900
Amortization period	12 months
Trade Name [Member]
Indefinite-lived Intangible Assets [Line Items]
Net carrying amount, Accumulated amortization	$ (134)

Goodwill and Other Intangible45

Goodwill and Other Intangible Assets - Additional Information (Detail) $ in Millions	3 Months Ended
	Sep. 30, 2017USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 0.8

Accrued Expenses and Other Li46

Accrued Expenses and Other Liabilities - Summary of Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Sales and marketing	$ 21,013	$ 16,707
Compensation and benefits	10,727	13,298
Income taxes	3,674
Manufacturing costs	1,215	1,799
Rent obligations	739	632
Other	3,959	2,257
Total accrued expenses and other liabilities	$ 41,327	$ 34,693

Debt - Additional Information (

Debt - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017USD ($)
Line of Credit Facility [Line Items]
Outstanding borrowings under the revolver loans	$ 0
Remaining available borrowing capacity	$ 200,000,000
Third Amended and Restated Credit Agreement [Member]
Line of Credit Facility [Line Items]
Termination date of the Credit Agreement	Jan. 12, 2021
Revolver Loans Portion Effective January 1 through June 30 [Member] | Third Amended and Restated Credit Agreement [Member]
Line of Credit Facility [Line Items]
Revolving loans in a collective maximum principal amount	$ 250,000,000
Revolver Loans Portion Effective July 1 through December 31 [Member] | Third Amended and Restated Credit Agreement [Member]
Line of Credit Facility [Line Items]
Revolving loans in a collective maximum principal amount	$ 200,000,000

Stockholders' Equity - Computat

Stockholders' Equity - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net income available to common shareholders	$ 20,098	$ 7,787	$ 76,829	$ 55,217
Denominator:
Basic weighted average shares outstanding	29,404,049	29,295,284	29,385,722	29,419,958
Effect of dilutive securities:
Diluted weighted average shares outstanding	29,578,216	29,516,718	29,563,497	29,635,796
Basic earnings per share	$ 0.68	$ 0.27	$ 2.61	$ 1.88
Diluted earnings per share	$ 0.68	$ 0.26	$ 2.60	$ 1.86
Stock Appreciation Rights and Options [Member]
Effect of dilutive securities:
Dilutive securities	97,315	116,803	98,905	133,907
Restricted Stock [Member]
Effect of dilutive securities:
Dilutive securities	76,852	104,631	78,870	81,931

Stockholders' Equity - Antidilu

Stockholders' Equity - Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
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	17,957		14,156	6,174
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted earnings per share	330	46	110	15

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Feb. 16, 2017	Oct. 22, 2015
October 2015 Stock Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Common stock repurchase program, authorized shares			3,150,000
Common stock repurchase program, termination date	Dec. 31, 2016
Number of shares repurchased by the Company	1,578,952
Value of shares repurchased by the Company	$ 53.3
February 2017 Stock Repurchase Program [Member]
Equity, Class of Treasury Stock [Line Items]
Common stock repurchase program, authorized shares		2,960,000
Number of shares repurchased by the Company	0

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)Planshares	Sep. 30, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock based compensation plans | Plan	1
Unrecognized compensation cost related to unvested awards | $	$ 4.8
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
Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value assumptions method used	Black-Scholes option-pricing formula
Number of shares or rights issued	18,739	0

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock-Based Compensation Grants (Detail) - $ / shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Time Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Awards Granted	36,105
Weighted-Average Grant Price Per Share	$ 72.50
Performance Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Awards Granted	43,307
Weighted-Average Grant Price Per Share	$ 57.54
Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Awards Granted	18,739	0
Weighted-Average Grant Price Per Share	$ 70.75

Stock-Based Compensation - Su53

Stock-Based Compensation - Summary of Stock-Based Compensation Grants (Parenthetical) (Detail) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Performance Based Restricted Stock Unit Target [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Awards Granted	25,986
Performance Based Restricted Stock Unit Adjustment [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Awards Granted		10,854	5,396	1,071

Stock-Based Compensation - Su54

Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value of Each SAR (Detail) - Stock Appreciation Rights [Member]	9 Months Ended
	Sep. 30, 2017$ / shares
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions and Methodology [Line Items]
Weighted-average fair value of grants	$ 27.97
Dividend yield	0.00%
Average risk-free interest rate	2.00%
Expected term (years)	5 years
Expected volatility	42.20%

Stock-Based Compensation - Su55

Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,037	$ 861	$ 3,913	$ 3,806
Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	28		220	184
Time-Based Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	417	368	1,557	1,847
Performance-Based Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	538	450	2,044	1,680
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 54	$ 43	$ 92	$ 95

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Contingency [Line Items]
Effective tax rate			34.10%	33.50%
Income tax expense (benefit)	$ 10,208	$ 2,702	$ 39,715	$ 27,871
Increase in effective tax rate due to increase in domestic production activities deduction			0.60%
Excess tax benefits from stock based awards			$ 1,400	$ 1,700
Valuation allowance	$ 4,100		$ 4,100
Earliest Tax Year [Member] | Federal Tax Jurisdiction [Member]
Income Tax Contingency [Line Items]
Tax years subject to examination			2,013
Latest Tax Year [Member] | Federal Tax Jurisdiction [Member]
Income Tax Contingency [Line Items]
Tax years subject to examination			2,016

Segment Information - Additiona

Segment Information - Additional Information (Detail)	7 Months Ended	9 Months Ended
	Jul. 31, 2017Segment	Sep. 30, 2017SegmentRetailer
Segment Reporting [Abstract]
Number of reportable segment | Segment	1	2
Number of national retailers | Retailer		2

Segment Information - Details o

Segment Information - Details of Segment Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Net sales	$ 140,194	$ 106,168	$ 442,941	$ 384,294
Net income (loss)	20,098	7,787	76,829	55,217
Depreciation and amortization			12,065	10,893
Income tax expense	10,208	$ 2,702	39,715	$ 27,871
Total assets	311,196		311,196		$ 221,430
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net sales	140,194		442,941
Net income (loss)	20,098		76,829
EBITDA	34,885		129,027
Depreciation and amortization	4,520		11,968
Income tax expense	10,208		39,715
Capital expenditures	3,983		11,108
Total assets	311,196		311,196
Operating Segments [Member] | Residential [Member]
Segment Reporting Information [Line Items]
Net sales	131,043		433,790
Net income (loss)	20,173		76,904
EBITDA	34,079		128,221
Depreciation and amortization	3,639		11,087
Income tax expense	10,208		39,715
Capital expenditures	3,943		11,068
Total assets	232,663		232,663
Operating Segments [Member] | Commercial [Member]
Segment Reporting Information [Line Items]
Net sales	9,151		9,151
Net income (loss)	(75)		(75)
EBITDA	806		806
Depreciation and amortization	881		881
Capital expenditures	40		40
Total assets	$ 78,533		$ 78,533

Segment Information - Schedule

Segment Information - Schedule of Reconciliation of Net Income to EBITDA (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Net income (loss)	$ 20,098	$ 7,787	$ 76,829	$ 55,217
Interest	59	77	515	1,108
Taxes	10,208	$ 2,702	39,715	27,871
Depreciation and amortization			12,065	$ 10,893
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net income (loss)	20,098		76,829
Interest	59		515
Taxes	10,208		39,715
Depreciation and amortization	4,520		11,968
EBITDA	34,885		129,027
Operating Segments [Member] | Residential [Member]
Segment Reporting Information [Line Items]
Net income (loss)	20,173		76,904
Interest	59		515
Taxes	10,208		39,715
Depreciation and amortization	3,639		11,087
EBITDA	34,079		128,221
Operating Segments [Member] | Commercial [Member]
Segment Reporting Information [Line Items]
Net income (loss)	(75)		(75)
Depreciation and amortization	881		881
EBITDA	$ 806		$ 806

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)ft²
Schedule Of Commitments And Contingencies [Line Items]
Change in warranty reserve for disclosure purposes only	$ 2.9
Minimum [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	10 years
Maximum [Member]
Schedule Of Commitments And Contingencies [Line Items]
Warranty period	25 years
Surface Flaking Warranty Reserve [Member]
Schedule Of Commitments And Contingencies [Line Items]
Percentage change in warranty claims used as a threshold for disclosure	10.00%
Sublease [Member]
Schedule Of Commitments And Contingencies [Line Items]
Net minimum receipts remaining under the Company's existing subleases for 2017	$ 0.3
Net minimum receipts remaining under the Company's existing subleases for 2018	1.3
Net minimum receipts remaining under the Company's existing subleases for 2019	$ 0.7
Contract Termination [Member]
Schedule Of Commitments And Contingencies [Line Items]
Lease square feet | ft²	55,047
Minimum payments, 2017	$ 0.5
Minimum payments, 2018	2
Minimum payments, 2019	$ 1

Commitments and Contingencies61

Commitments and Contingencies - Summary of Liability Related to Lease (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Beginning balance	$ 1,475	$ 2,106
Net rental payments	(430)	(536)
Accretion of discount	78	113
Decrease in net estimated contract termination costs	(23)	(85)
Ending balance	$ 1,100	$ 1,598

Commitments and Contingencies62

Commitments and Contingencies - Summary of Reconciliation of Company's Warranty Reserve that Represents Amounts Accrued for Surface Flaking Claims (Detail) - Surface Flaking Warranty Reserve [Member] - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Product Warranty Liability [Line Items]
Beginning balance	$ 33,847	$ 29,673
Changes in estimates related to pre-existing warranties		9,835
Settlements made during the period	(4,425)	(4,188)
Ending balance	$ 29,422	$ 35,320