Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 25, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | TREX | |
Entity Registrant Name | TREX CO INC | |
Entity Central Index Key | 0001069878 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 58,501,881 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 179,571 | $ 171,207 |
Cost of sales | 110,206 | 94,494 |
Gross profit | 69,365 | 76,713 |
Selling, general and administrative expenses | 30,166 | 28,959 |
Income from operations | 39,199 | 47,754 |
Interest (income) expense, net | (56) | 229 |
Income before income taxes | 39,255 | 47,525 |
Provision for income taxes | 7,700 | 10,415 |
Net income | $ 31,555 | $ 37,110 |
Basic earnings per common share | $ 0.54 | $ 0.63 |
Basic weighted average common shares outstanding | 58,543,478 | 58,855,156 |
Diluted earnings per common share | $ 0.54 | $ 0.63 |
Diluted weighted average common shares outstanding | 58,829,177 | 59,199,622 |
Comprehensive income | $ 31,555 | $ 37,110 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 7,907 | $ 105,699 |
Accounts receivable, net | 219,345 | 91,163 |
Inventories | 50,156 | 57,801 |
Prepaid expenses and other assets | 13,877 | 15,562 |
Total current assets | 291,285 | 270,225 |
Property, plant and equipment, net | 122,492 | 117,144 |
Goodwill and other intangibles | 74,399 | 74,503 |
Operating lease assets | 44,251 | 0 |
Other assets | 3,218 | 3,250 |
Total Assets | 535,645 | 465,122 |
Current Liabilities: | ||
Accounts payable | 23,528 | 31,084 |
Accrued expenses and other liabilities | 42,647 | 56,291 |
Accrued warranty | 5,400 | 5,400 |
Line of credit | 35,000 | 0 |
Total current liabilities | 106,575 | 92,775 |
Operating lease liabilities | 38,764 | 0 |
Deferred income taxes | 2,125 | 2,125 |
Non-current accrued warranty | 24,934 | 25,354 |
Other long-term liabilities | 90 | 1,905 |
Total Liabilities | 172,488 | 122,159 |
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, 120,000,000 shares authorized; 70,109,157 and 69,998,336 shares issued and 58,537,485 and 58,551,653 shares outstanding at March 31, 2019 and December 31, 2018, respectively | 701 | 700 |
Additional paid-in capital | 121,592 | 124,224 |
Retained earnings | 448,497 | 416,942 |
Treasury stock, at cost, 11,571,672 and 11,446,683 shares at March 31, 2019 and December 31, 2018, respectively | (207,633) | (198,903) |
Total Stockholders' Equity | 363,157 | 342,963 |
Total Liabilities and Stockholders' Equity | $ 535,645 | $ 465,122 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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 | 120,000,000 | 120,000,000 |
Common stock, shares issued | 70,109,157 | 69,998,336 |
Common stock, shares outstanding | 58,537,485 | 58,551,653 |
Treasury stock, shares | 11,571,672 | 11,446,683 |
Statements of Changes in Stockh
Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings (Deficit) [Member] | Treasury Stock [Member] |
Beginning Balance at Dec. 31, 2017 | $ 231,250 | $ 698 | $ 121,694 | $ 282,370 | $ (173,512) |
Beginning Balance, Shares at Dec. 31, 2017 | 58,856,860 | 10,987,362 | |||
Net income | 37,110 | 37,110 | |||
Employee stock purchase and option plans | 195 | $ 0 | 195 | ||
Employee stock purchase and option plans, Shares | 26,832 | ||||
Shares withheld for taxes on share-based payment awards | (3,782) | $ 0 | (3,782) | ||
Shares withheld for taxes on share-based payment awards, Shares | (13,028) | ||||
Stock-based compensation | 2,296 | $ 1 | 2,295 | ||
Stock-based compensation, Shares | 80,988 | ||||
Shares repurchased under our publicly announced share repurchase programs | (5,210) | $ (5,210) | |||
Shares repurchased under our publicly announced share repurchase programs, Shares | (100,044) | 100,044 | |||
Ending Balance at Mar. 31, 2018 | 261,859 | $ 699 | 120,402 | 319,480 | $ (178,722) |
Ending Balance, Shares at Mar. 31, 2018 | 58,851,608 | 11,087,406 | |||
Beginning Balance at Dec. 31, 2018 | 342,963 | $ 700 | 124,224 | 416,942 | $ (198,903) |
Beginning Balance, Shares at Dec. 31, 2018 | 58,551,653 | 11,446,683 | |||
Net income | 31,555 | 31,555 | |||
Employee stock purchase and option plans | 302 | $ 0 | 302 | ||
Employee stock purchase and option plans, Shares | 24,472 | ||||
Shares withheld for taxes on share-based payment awards | (5,727) | $ 0 | (5,727) | ||
Shares withheld for taxes on share-based payment awards, Shares | (74,010) | ||||
Stock-based compensation | 2,794 | $ 1 | 2,793 | ||
Stock-based compensation, Shares | 160,359 | ||||
Shares repurchased under our publicly announced share repurchase programs | (8,730) | $ (8,730) | |||
Shares repurchased under our publicly announced share repurchase programs, Shares | (124,989) | 124,989 | |||
Ending Balance at Mar. 31, 2019 | $ 363,157 | $ 701 | $ 121,592 | $ 448,497 | $ (207,633) |
Ending Balance, Shares at Mar. 31, 2019 | 58,537,485 | 11,571,672 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities | ||
Net income | $ 31,555 | $ 37,110 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 3,425 | 4,765 |
Stock-based compensation | 2,793 | 2,295 |
Loss (Gain) on disposal of property, plant and equipment | 10 | (22) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (128,182) | (139,643) |
Inventories | 7,645 | (7,928) |
Prepaid expenses and other assets | 1,214 | 118 |
Accounts payable | (7,556) | 13,770 |
Accrued expenses and other liabilities | (27,332) | (18,972) |
Income taxes receivable/payable | 6,438 | 10,399 |
Net cash used in operating activities | (109,990) | (98,108) |
Investing Activities | ||
Expenditures for property, plant and equipment and intangibles | (8,647) | (5,435) |
Proceeds from sales of property, plant and equipment | 0 | 24 |
Net cash used in investing activities | (8,647) | (5,411) |
Financing Activities | ||
Borrowings under line of credit | 35,000 | 92,500 |
Principal payments under line of credit | 0 | (8,000) |
Repurchases of common stock | (14,457) | (8,993) |
Proceeds from employee stock purchase and option plans | 302 | 197 |
Net cash provided by financing activities | 20,845 | 75,704 |
Net decrease in cash and cash equivalents | (97,792) | (27,815) |
Cash and cash equivalents, beginning of period | 105,699 | 30,514 |
Cash and cash equivalents, end of period | 7,907 | 2,699 |
Supplemental Disclosure: | ||
Cash paid for interest | 11 | 62 |
Cash paid (received) for income taxes, net | $ 1,262 | $ (21) |
Business and Organization
Business and Organization | 3 Months Ended |
Mar. 31, 2019 | |
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 ® |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
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 and Article 10 of Regulation S-X and, accordingly, the accompanying condensed consolidated financial statements do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal and recurring adjustments except as otherwise described herein) considered necessary for a fair presentation have been included in the accompanying condensed consolidated financial statements. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Trex Wood-Polymer Espana, S.L. and Trex Commercial Products, Inc., for all periods presented. The consolidated results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of December 31, 2018 and 2017 and for each of the three years in the period ended December 31, 2018 included in the Annual Report of Trex Company, Inc. on Form 10-K, as filed with the U.S. Securities and Exchange Commission. |
Recently Adopted Accounting Sta
Recently Adopted Accounting Standards | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Adopted Accounting Standards | 3. RECENTLY ADOPTED ACCOUNTING STANDARDS In June 2018, the FASB issued ASU No. 2018-07, “ Compensation – Stock Compensation (Topic 718) Equity — Equity-Based Payment to Non-Employees In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842), |
New Accounting Standards Not Ye
New Accounting Standards Not Yet Adopted | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards Not Yet Adopted | 4. NEW ACCOUNTING STANDARDS NOT YET ADOPTED In August 2018, the FASB issued ASU No. 2018-15, “ Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of FASB Emerging Issues Task Force) ” The new guidance aligns the requirements for capitalizing implementation costs in a cloud computing arrangement service contract with the requirements for capitalizing implementation costs incurred for an internal-use software license. Under that model, implementation costs are capitalized or expensed depending on the nature of the costs and the project stage during which they are incurred. Capitalized implementation costs are amortized over the term of the associated hosted cloud computing arrangement service contract on a straight-line basis, unless another systematic and rational basis is more representative of the pattern in which the entity expects to benefit from its right to access the hosted software. Capitalized implementation costs would then be assessed for impairment in a manner similar to long-lived assets. The new guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. Entities can choose to adopt the new guidance either prospectively to eligible costs incurred on or after the date the guidance is first applied or retrospectively. The Company intends to adopt the guidance on January 1, 2020, and is assessing the impact on its financial condition and results of operations. In January 2017, the FASB issued ASU No. 2017-04, “ Intangibles — Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses in Financial Instruments .” The ASU amends the guidance on the impairment of financial instruments and adds an impairment model, known as the current expected credit loss (CECL) model. The CECL model requires an entity to recognize its current estimate of all expected credit losses, rather than incurred losses, and applies to trade receivables and other receivables. The CECL model is designed to capture expected credit losses through the establishment of an allowance account, which will be presented as an offset to the amortized cost basis of the related financial asset. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and is applied using the modified-retrospective approach. The Company intends to adopt the guidance on January 1, 2020. The Company continues to evaluate the guidance and does not believe adoption will have a material impact on its financial condition or results of operations. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. INVENTORIES Inventories valued at LIFO (last-in, first-out), consist of the following (in thousands): March 31, 2019 December 31, 2018 Finished goods $ 34,124 $ 46,638 Raw materials 32,245 27,321 Total FIFO (first-in, first-out) inventories 66,369 73,959 Reserve to adjust inventories to LIFO value (18,442 ) (18,442 ) Total LIFO inventories $ 47,927 $ 55,517 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 do not result in a LIFO liquidation. Accordingly, interim LIFO calculations are based, in part, on management’s estimates of expected year-end inventory levels and costs which may differ from actual results. Since inventory levels and costs are subject to factors beyond management’s control, interim results are subject to the final year-end LIFO inventory valuation. 31 , 2019 , management estimates that interim inventory balances will be replenished by year-end and there were no LIFO inventory liquidations or related impact on cost of sales in the three months ended March 31 , 2019 or 2018 . Inventories valued at lower of cost (FIFO method) and net realizable value were $ 2.2 million at March 31 , 2019 and $ 2.3 million at December 31 , 2018 , consisting primarily of raw materials. The Company utilizes the FIFO method of accounting related to its railing and staging systems for the commercial and multi-family market. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Prepaid Expenses and Other Assets | 6. PREPAID EXPENSES AND OTHER ASSETS Prepaid expenses and other assets consist of the following (in thousands): March 31, 2019 December 31, 2018 Revenues in excess of billings $ 7,140 $ 7,987 Prepaid expenses 3,647 3,390 Contract retainage 2,586 2,469 Income tax receivable — 471 Other 504 1,245 Total prepaid expenses and other assets $ 13,877 $ 15,562 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 7. GOODWILL AND OTHER INTANGIBLE ASSETS Intangible assets consist of the following (in thousands): March 31, 2019 December 31, 2018 Intangible assets: Customer backlog $ 4,000 $ 4,000 Trade names and trademarks 900 900 Domain names 6,327 6,327 Total intangible assets 11,227 11,227 Accumulated amortization: Customer backlog (4,000 ) (4,000 ) Trade name and trademarks (900 ) (900 ) Domain names (389 ) (285 ) Total accumulated amortization (5,289 ) (5,185 ) Intangible assets, net $ 5,938 $ 6,042 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 basis over 12 months for customer backlog and trade names and trademarks and 15 years for domain names, which approximates the pattern in which the economic benefits are expected to be received. In May 2018, the Company purchased certain domain names for $6.3 million. We evaluate the recoverability of intangible assets periodically and consider events or circumstances that may warrant revised estimates of useful lives or that may indicate an impairment. Intangible asset amortization expense for the three months ended March 31, 2019 and March 31, 2018 was $0.1 million and $1.2 million, As of March 31, 2019, the Company had goodwill of $68.5 million. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | 8. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following (in thousands): March 31, 2019 December 31, 2018 Sales and marketing $ 12,906 $ 25,379 Compensation and benefits 5,204 19,124 Operating lease liabilities 6,859 — Income taxes 6,138 — Customer deposits 2,722 2,058 Manufacturing costs 2,146 3,744 Billings in excess of revenues 747 512 Other 5,925 5,474 Total accrued expenses and other liabilities $ 42,647 $ 56,291 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 9. 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 $35 million in outstanding borrowings under its revolving credit facility and remaining available borrowing capacity of $215 million at March 31, 2019. 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 March 31, 2019, 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. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 10. LEASES The Company leases office space, storage warehouses and certain plant equipment under various operating leases. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets, accrued expenses and other current liabilities, and operating lease liabilities in the condensed consolidated balance sheets. Operating leases with an initial term of 12 months or less are not included in the condensed consolidated balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. ROU assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company gives consideration to instruments with similar characteristics when calculating its incremental borrowing rate. The Company operating leases have remaining lease terms of 1 year to 10 years. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. For the three months ended March 31, 2019, total operating lease cost was $2.1 million. The weighted average remaining lease term and weighted average discount rate at March 31, 2019 were 7 years and 3.67%, respectively. The following table includes supplemental cash flow information for the three months ended March 31, 2019 and supplemental balance sheet information at March 31, 2019 related to operating leases (in thousands): Supplemental cash flow information Cash paid for amounts included in the measurement of operating lease liabilities $ 2,118 Operating ROU assets obtained in exchange for lease liabilities $ 388 Supplemental balance sheet information Operating lease ROU assets $ 44,251 Operating lease liabilities: Accrued expenses and other current liabilities $ 6,859 Operating lease liabilities 38,764 Total operating lease liabilities $ 45,623 The following table includes maturities of operating lease liabilities at March 31, 2019 (in thousands): Maturities of operating lease liabilities 2019 (excluding the three months ended March 31, 2019) $ 6,321 2020 8,290 2021 8,095 2022 6,278 2023 5,932 Thereafter 17,063 Total lease payments 51,979 Less imputed interest (6,356 ) Total operating liabilities $ 45,623 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | 11. 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, other current liabilities, and debt to approximate the fair value of the respective assets and liabilities on the Condensed Consolidated Balance Sheets at March 31, 2019 and December 31, 2018. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | 12. STOCKHOLDERS’ EQUITY Second Certificate of Amendment to the Restated Certificate of Incorporation The Company’s Board of Directors unanimously approved Restated Certificate of Incorporation ( Amendment) on February 14, 2018, subject to stockholder approval. At the annual meeting of stockholders of the Company held on May 2, 2018, the Company’s stockholders approved the Amendment, effective as of May 2, 2018. The Amendment increased the number of shares of common stock, par value $.01 per share, that the Company is authorized to issue from 80,000,000 shares to 120,000,000 shares. The Amendment was filed with the Delaware Secretary of State on May 2, 2018. Stock Split On May 2, 2018, the Board of Directors of the Company 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 June 18, 2018, to stockholders of record at the close of business on May 23, 2018. The stock split entitled each stockholder to receive one additional share of common stock, par value $0.01, for each share they held as of the record date. All common stock share and per share data for all periods presented in the accompanying unaudited condensed consolidated financial statements and notes thereto have been retroactively adjusted to reflect the stock split. 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 March 31, 2019 2018 Numerator: Net income available to common shareholders $ 31,555 $ 37,110 Denominator: Basic weighted average shares outstanding 58,543,478 58,855,156 Effect of dilutive securities: Stock appreciation rights and options 154,076 194,056 Restricted stock 131,623 150,410 Diluted weighted average shares outstanding 58,829,177 59,199,622 Basic earnings per share $ 0.54 $ 0.63 Diluted earnings per share $ 0.54 $ 0.63 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 March 31, 2019 2018 Stock appreciation rights 12,813 5,433 Stock Repurchase Program On February 16, 2018, the Board of Directors adopted a stock repurchase program of up to 5.8 million shares of the Company’s outstanding common stock (Stock Repurchase Program). As of the date of this report, the Company has repurchased 584,310 shares of the Company’s outstanding common stock under the Stock Repurchase Program. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts With Customers | 13. REVENUE FROM CONTRACTS WITH CUSTOMERS Topic 606 provides a single, comprehensive model for revenue recognition arising from contracts with customers. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and revenue is recognized when or as the Company satisfies the performance obligation. Revenue is recognized at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring control of the goods or services to a customer. Trex Residential Products Trex Residential principally generates revenue from the manufacture and sale of its high performance, low maintenance composite decking and residential railing products and accessories. Substantially all of its revenues are from contracts with customers, which are purchase orders of short-term duration of less than one year. Its customers, in turn, sell primarily to the residential market, which includes replacement, remodeling and new construction related to outdoor living products. Trex Residential satisfies its performance obligations at a point in time. The shipment of each product is a separate performance obligation as the customer is able to derive benefit from each product shipped and no performance obligation remains after shipment. Upon shipment of the product, the customer obtains control over the distinct product and Trex Residential satisfies its performance obligation. Any performance obligation that remains unsatisfied at the end of a reporting period is part of a contract that has an original expected duration of one year or less. Any variable consideration related to the unsatisfied performance obligation is allocated wholly to the unsatisfied performance obligation and recognized when the product ships and the performance obligation is satisfied. For each product shipped, the transaction price by product is specified in the purchase order. The Company recognizes revenue on the transaction price less any amount offered under a sales incentive program. The Company recognizes an account receivable (contract asset) for the amount of revenue recognized as it has an unconditional right to consideration at the time of shipment and payment from the customer is due based solely on the passage of time. The Company receives payments from its customers based on the payment terms applicable to each individual contract and the customer pays in accordance with the billing terms specified in the purchase order, which is less than one year. The related accounts receivables are included in “ Accounts receivable, net ” in the Condensed Consolidated Balance Sheets. Trex Residential may offer various sales incentive programs throughout the year. It estimates the amount of sales incentive to allocate to each performance obligation, or product shipped, based on direct sales to the customer. The estimate is updated each reporting period and any changes are allocated to the performance obligations on the same basis as at inception. Changes in estimate allocated to a previously satisfied performance obligation are recognized as a reduction of revenue in the period in which the change occurs under the cumulative catch-up method. In addition to sales incentive programs, Trex Residential may offer a payment discount. It estimates the payment discount that it believes will be taken by the customer based on prior history. Trex Residential pays commissions to certain employees. However, the sales commissions are not directly attributable to identifiable contracts, are discretionary in nature and are based on other factors not related to obtaining a contract, such as individual performance, profitability of the entity, annual sales targets, etc. These costs are included in selling, general and administrative expenses as incurred. Trex Residential does not grant contractual product return rights to customers other than pursuant to its assurance product warranty (see related disclosure on product warranties in Note 18, “ Commitments and Contingencies ”). Trex Residential accounts for all shipping and handling fees invoiced to the customer in net sales and the related costs in cost of sales. Trex Commercial Products Trex Commercial generates revenue from the manufacture and sale of its modular and architectural railing and staging systems. All of its revenues are from fixed-price contracts with customers. Trex Commercial contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contract and is, therefore, not distinct. Trex Commercial satisfies its performance obligation over time as work progresses because control is transferred continuously to its customers. Revenue and estimated profit is recognized over time based on the proportion of actual costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying the performance obligation. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Incurred costs include all direct material, labor, subcontract and certain indirect costs. The Company reviews and updates its estimates regularly and recognizes adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on revenue and estimated profit to date on a contract is recognized in the period the adjustment is identified. Revenues and profits in future periods are recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company recognizes the total loss in the period it is identified. During the three months ended March 31, 2019, no adjustment to any one contract was material to the Company’s Condensed Consolidated Financial Statements. In accordance with ASC 606-10-50-15, the Company discloses only the transaction price allocated to its remaining performance obligations on contracts with an original duration greater than one year, which was $45.1 million as of March 31, 2019. The Company will recognize this revenue as contracts are completed, which is expected to occur within the next 24 months. The Company recognizes an account receivable (contract asset) for satisfied performance obligations as it has an unconditional right to consideration and payment from the customer is due based solely on the passage of time. The Company receives payments from its customers on the accounts receivable based on the payment terms applicable to each individual contract and the customer pays in less than one year. Accounts receivables are included in “ Accounts receivable, net ” in the Condensed Consolidated Balance Sheets. In addition, the timing of revenue recognition, billings and cash collections may result in revenues in excess of billings and contract retainage (contract assets), and billings in excess of revenues and customer deposits (contract liabilities) in the Condensed Consolidated Balance Sheet. These assets and liabilities are reported on a contract-by-contract basis at the end of each reporting period in prepaid expenses and other assets (contract assets), and accrued expenses and other liabilities (contract liabilities). These assets and liabilities and changes in these assets and liabilities were not material as of and for the three months ended March 31, 2019. Trex Commercial pays sales commissions that are directly attributable to identifiable contracts to certain of its employees. If the amortization period of the commission is one year or less then the Company recognizes the commission expense as incurred. Otherwise, the Company capitalizes the commission and amortizes it on a straight-line basis over the life of the contract. Trex Commercial does not grant contractual product return rights to customers other than pursuant to its assurance product warranty. All shipping and handling fees invoiced to the customer are included in net sales and the related costs are included in cost of sales. For the three months ended March 31, 2019 and 2018, net sales were disaggregated in the following tables by (1) market, (2) timing of revenue recognition, and (3) type of contract. The tables also include a reconciliation of the respective disaggregated net sales with the Company’s reportable segments (in thousands). Three Months Ended March 31, 2019 Reportable Segment Trex Residential Trex Commercial Total Timing of Revenue Recognition and Type of Contract Products transferred at a point in time and variable consideration contracts $ 165,479 $ — $ 165,479 Products transferred over time and fixed price contracts — 14,092 14,092 $ 165,479 $ 14,092 $ 179,571 Three Months Ended March 31, 2018 Reportable Segment Trex Residential Trex Commercial Total Timing of Revenue Recognition and Type of Contract Products transferred at a point in time and variable consideration contracts $ 155,200 $ — $ 155,200 Products transferred over time and fixed price contracts — 16,007 16,007 $ 155,200 $ 16,007 $ 171,207 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
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 was subsequently amended and restated by the Company’s Board of Directors in May 2014 and May 2018. 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 12,840,000 and as of March 31, 2019, the total number of shares available for future issuance are 5,784,704. The following table summarizes the Company’s stock-based compensation grants for the three months ended March 31, 2019: Stock Awards Granted Weighted-Average Grant Price Per Share Time-based restricted stock units 26,158 $ 77.61 Performance-based restricted stock units (a) 80,104 $ 47.89 Stock appreciation rights 24,536 $ 77.70 (a) Includes 32,462 of target performance-based restricted stock unit awards granted during the three months ended March 31, 2019, and adjustments of 27,154, 14,900 and 5,588 to grants due to the actual performance level achieved for restricted stock and restricted stock units awarded in 2016, 2017, and 2018, respectively. The fair value of each SAR is estimated on the date of grant using a Black-Scholes option-pricing formula. For SARs issued in the three months ended March 31, 2019 and 2018 the data and assumptions shown in the following table were used: Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Weighted-average fair value of grants $ 29.56 $ 44.17 Dividend yield 0 % 0 % Average risk-free interest rate 2.5 % 2.7 % Expected term (years) 5 5 Expected volatility 39.1 % 40.4 % 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 March 31, 2019 2018 Stock appreciation rights $ 295 $ 202 Time-based restricted stock and restricted stock units 1,149 822 Performance-based restricted stock and restricted stock units 1,314 1,249 Employee stock purchase plan 35 33 Total stock-based compensation $ 2,793 $ 2,306 Total unrecognized compensation cost related to unvested awards as of March 31, 2019 was $8.9 million. The cost of these unvested awards is being recognized over the requisite vesting period of each award. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. INCOME TAXES The Company’s effective tax rate for the three months ended March 31, 2019 and 2018 was 19.6% and 21.9%, respectively, which resulted in expense of $7.7 million and $10.4 million, respectively. The decrease of 2.3% in the effective tax rate was primarily due to a current year increase in excess tax benefits from the exercise of share-based payments During the three months ended March 31, 2019 and 2018, the Company realized $2.3 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 March 31, 2019, the Company maintains a valuation allowance of $3.0 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 March 31, 2019, for certain tax jurisdictions tax years 2015 through 2018 remain subject to examination. Sales made to foreign distributors are not taxable in any foreign jurisdiction as the Company does not have a taxable presence in any foreign jurisdiction. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 16. SEGMENT INFORMATION The Company operates in two reportable segments: • Trex Residential manufactures wood-alternative decking and residential railing and related products marketed under the brand name Trex ® • Trex Commercial designs, engineers, and markets modular and architectural railing and staging systems for the commercial and multi-family market, including sports stadiums and performing arts venues. Trex Commercial products are marketed to architects, specifiers, contractors, and others doing business within the commercial and multi-family market. Trex Commercial net sales were $14.1 million and $16.0 million in the three months ended March 31, 2019 and 2018, respectively. The Company’s reportable 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, and depreciation and amortization charges to income. The below segment data for the three months ended March 31, 2019 and 2018 includes data for Trex Residential and Trex Commercial (in thousands): Three Months Ended March 31, 2019 Trex Residential Trex Commercial Total Net sales $ 165,479 $ 14,092 $ 179,571 Net income $ 31,255 $ 300 $ 31,555 EBITDA $ 42,067 $ 526 $ 42,593 Depreciation and amortization $ 3,268 $ 126 $ 3,394 Income tax expense $ 7,600 $ 100 $ 7,700 Capital expenditures $ 7,694 $ 953 $ 8,647 Total assets $ 448,303 $ 87,342 $ 535,645 Reconciliation of net income to EBITDA (in thousands): Three Months Ended March 31, 2019 Trex Residential Trex Commercial Total Net income $ 31,255 $ 300 $ 31,555 Interest income (56 ) — (56 ) Income tax expense 7,600 100 7,700 Depreciation and amortization 3,268 126 3,394 EBITDA $ 42,067 $ 526 $ 42,593 Three Months Ended March 31, 2018 Trex Residential Trex Commercial Total Net sales $ 155,200 $ 16,007 $ 171,207 Net income (loss) $ 37,580 $ (470 ) $ 37,110 EBITDA $ 51,834 $ 653 $ 52,487 Depreciation and amortization $ 3,453 $ 1,280 $ 4,733 Income tax expense (benefit) $ 10,572 $ (157 ) $ 10,415 Capital expenditures $ 5,043 $ 392 $ 5,435 Total assets $ 366,400 $ 78,984 $ 445,384 Reconciliation of net income to EBITDA: Three Months Ended March 31, 2018 Trex Residential Trex Commercial Total Net income (loss) $ 37,580 $ (470 ) $ 37,110 Interest expense, net 229 — 229 Income tax expense (benefit) 10,572 (157 ) 10,415 Depreciation and amortization 3,453 1,280 4,733 EBITDA $ 51,834 $ 653 $ 52,487 |
Seasonality
Seasonality | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Seasonality | 17. SEASONALITY The operating results for Trex Residential 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 its products to a later period. As part of its normal business practice and consistent with industry practice, Trex Residential 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 its product to meet anticipated seasonal consumer demand. The seasonal effects are often offset by the positive effect of the incentive programs. The operating results for Trex Commercial have not historically varied from quarter to quarter as a result of seasonality. However, they are driven by the timing of individual projects, which may vary each quarterly period. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. COMMITMENTS AND CONTINGENCIES Product Warranty The Company warrants that its Trex Residential decking and 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 also warrants its Trex Commercial products for one to three years. The Company continues to receive and settle claims for decking 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 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 incoming claims received in the three months ended March 31, 2019 was lower than the Company’s expectations and lower than the number of claims received in the three months ended March 31, 2018, continuing the historical year-over-year decline in incoming claims. Average settlement cost per claim experienced in the three months ended March 31, 2019 was also lower than the Company’s expectations and lower than the average settlement cost per claim experienced in the three months ended March 31, 2018. The Company believes its reserve at March 31, 2019 is sufficient to cover future surface flaking obligations and no adjustments were required in the current quarter. 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 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 $2.3 million change in the surface flaking warranty reserve. The following is a reconciliation of the Company’s residential product warranty reserve (in thousands): Three Months Ended March 31, 2019 Surface Other Total Beginning balance, January 1 $ 23,951 $ 6,803 $ 30,754 Provisions and changes in estimates — 505 505 Settlements made during the period (633 ) (292 ) (925 ) Ending balance, March 31 $ 23,318 $ 7,016 $ 30,334 Three Months Ended March 31, 2018 Surface Flaking Other Residential Total Beginning balance, January 1 $ 28,157 $ 6,842 $ 34,999 Provisions and changes in estimates — 819 819 Settlements made during the period (1,000 ) (243 ) (1,243 ) Ending balance, March 31 $ 27,157 $ 7,418 $ 34,575 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. |
Stock-Based Compensation (Polic
Stock-Based Compensation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
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 was subsequently amended and restated by the Company’s Board of Directors in May 2014 and May 2018. 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 12,840,000 and as of March 31, 2019, the total number of shares available for future issuance are . |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories valued at LIFO (last-in, first-out), consist of the following (in thousands): March 31, 2019 December 31, 2018 Finished goods $ 34,124 $ 46,638 Raw materials 32,245 27,321 Total FIFO (first-in, first-out) inventories 66,369 73,959 Reserve to adjust inventories to LIFO value (18,442 ) (18,442 ) Total LIFO inventories $ 47,927 $ 55,517 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Summary of Prepaid Expenses and Other Assets | Prepaid expenses and other assets consist of the following (in thousands): March 31, 2019 December 31, 2018 Revenues in excess of billings $ 7,140 $ 7,987 Prepaid expenses 3,647 3,390 Contract retainage 2,586 2,469 Income tax receivable — 471 Other 504 1,245 Total prepaid expenses and other assets $ 13,877 $ 15,562 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Details of Intangible Assets | Intangible assets consist of the following (in thousands): March 31, 2019 December 31, 2018 Intangible assets: Customer backlog $ 4,000 $ 4,000 Trade names and trademarks 900 900 Domain names 6,327 6,327 Total intangible assets 11,227 11,227 Accumulated amortization: Customer backlog (4,000 ) (4,000 ) Trade name and trademarks (900 ) (900 ) Domain names (389 ) (285 ) Total accumulated amortization (5,289 ) (5,185 ) Intangible assets, net $ 5,938 $ 6,042 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following (in thousands): March 31, 2019 December 31, 2018 Sales and marketing $ 12,906 $ 25,379 Compensation and benefits 5,204 19,124 Operating lease liabilities 6,859 — Income taxes 6,138 — Customer deposits 2,722 2,058 Manufacturing costs 2,146 3,744 Billings in excess of revenues 747 512 Other 5,925 5,474 Total accrued expenses and other liabilities $ 42,647 $ 56,291 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Supplemental Cash Flow information and Supplemental balance sheet information related to operating leases to operating leases | The following table includes supplemental cash flow information for the three months ended March 31, 2019 and supplemental balance sheet information at March 31, 2019 related to operating leases (in thousands): Supplemental cash flow information Cash paid for amounts included in the measurement of operating lease liabilities $ 2,118 Operating ROU assets obtained in exchange for lease liabilities $ 388 Supplemental balance sheet information Operating lease ROU assets $ 44,251 Operating lease liabilities: Accrued expenses and other current liabilities $ 6,859 Operating lease liabilities 38,764 Total operating lease liabilities $ 45,623 |
Maturities of operating lease liabilities | The following table includes maturities of operating lease liabilities at March 31, 2019 (in thousands): Maturities of operating lease liabilities 2019 (excluding the three months ended March 31, 2019) $ 6,321 2020 8,290 2021 8,095 2022 6,278 2023 5,932 Thereafter 17,063 Total lease payments 51,979 Less imputed interest (6,356 ) Total operating liabilities $ 45,623 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 Numerator: Net income available to common shareholders $ 31,555 $ 37,110 Denominator: Basic weighted average shares outstanding 58,543,478 58,855,156 Effect of dilutive securities: Stock appreciation rights and options 154,076 194,056 Restricted stock 131,623 150,410 Diluted weighted average shares outstanding 58,829,177 59,199,622 Basic earnings per share $ 0.54 $ 0.63 Diluted earnings per share $ 0.54 $ 0.63 |
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 March 31, 2019 2018 Stock appreciation rights 12,813 5,433 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregated Net Sales | The tables also include a reconciliation of the respective disaggregated net sales with the Company’s reportable segments (in thousands). Three Months Ended March 31, 2019 Reportable Segment Trex Residential Trex Commercial Total Timing of Revenue Recognition and Type of Contract Products transferred at a point in time and variable consideration contracts $ 165,479 $ — $ 165,479 Products transferred over time and fixed price contracts — 14,092 14,092 $ 165,479 $ 14,092 $ 179,571 Three Months Ended March 31, 2018 Reportable Segment Trex Residential Trex Commercial Total Timing of Revenue Recognition and Type of Contract Products transferred at a point in time and variable consideration contracts $ 155,200 $ — $ 155,200 Products transferred over time and fixed price contracts — 16,007 16,007 $ 155,200 $ 16,007 $ 171,207 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Summary of Stock-Based Compensation Grants | The following table summarizes the Company’s stock-based compensation grants for the three months ended March 31, 2019: Stock Awards Granted Weighted-Average Grant Price Per Share Time-based restricted stock units 26,158 $ 77.61 Performance-based restricted stock units (a) 80,104 $ 47.89 Stock appreciation rights 24,536 $ 77.70 (a) Includes 32,462 of target performance-based restricted stock unit awards granted during the three months ended March 31, 2019, and adjustments of 27,154, 14,900 and 5,588 to grants due to the actual performance level achieved for restricted stock and restricted stock units awarded in 2016, 2017, and 2018, 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. For SARs issued in the three months ended March 31, 2019 and 2018 the data and assumptions shown in the following table were used: Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Weighted-average fair value of grants $ 29.56 $ 44.17 Dividend yield 0 % 0 % Average risk-free interest rate 2.5 % 2.7 % Expected term (years) 5 5 Expected volatility 39.1 % 40.4 % |
Summary of Stock-Based Compensation Expense | The following table summarizes the Company’s stock-based compensation expense (in thousands): Three Months Ended March 31, 2019 2018 Stock appreciation rights $ 295 $ 202 Time-based restricted stock and restricted stock units 1,149 822 Performance-based restricted stock and restricted stock units 1,314 1,249 Employee stock purchase plan 35 33 Total stock-based compensation $ 2,793 $ 2,306 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Details of Segment Information | The below segment data for the three months ended March 31, 2019 and 2018 includes data for Trex Residential and Trex Commercial (in thousands): Three Months Ended March 31, 2019 Trex Residential Trex Commercial Total Net sales $ 165,479 $ 14,092 $ 179,571 Net income $ 31,255 $ 300 $ 31,555 EBITDA $ 42,067 $ 526 $ 42,593 Depreciation and amortization $ 3,268 $ 126 $ 3,394 Income tax expense $ 7,600 $ 100 $ 7,700 Capital expenditures $ 7,694 $ 953 $ 8,647 Total assets $ 448,303 $ 87,342 $ 535,645 Three Months Ended March 31, 2018 Trex Residential Trex Commercial Total Net sales $ 155,200 $ 16,007 $ 171,207 Net income (loss) $ 37,580 $ (470 ) $ 37,110 EBITDA $ 51,834 $ 653 $ 52,487 Depreciation and amortization $ 3,453 $ 1,280 $ 4,733 Income tax expense (benefit) $ 10,572 $ (157 ) $ 10,415 Capital expenditures $ 5,043 $ 392 $ 5,435 Total assets $ 366,400 $ 78,984 $ 445,384 |
Schedule of Reconciliation of Net Income to EBITDA | Reconciliation of net income to EBITDA (in thousands): Three Months Ended March 31, 2019 Trex Residential Trex Commercial Total Net income $ 31,255 $ 300 $ 31,555 Interest income (56 ) — (56 ) Income tax expense 7,600 100 7,700 Depreciation and amortization 3,268 126 3,394 EBITDA $ 42,067 $ 526 $ 42,593 Reconciliation of net income to EBITDA: Three Months Ended March 31, 2018 Trex Residential Trex Commercial Total Net income (loss) $ 37,580 $ (470 ) $ 37,110 Interest expense, net 229 — 229 Income tax expense (benefit) 10,572 (157 ) 10,415 Depreciation and amortization 3,453 1,280 4,733 EBITDA $ 51,834 $ 653 $ 52,487 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Reconciliation of Company's Residential Product Warranty Reserve | The following is a reconciliation of the Company’s residential product warranty reserve (in thousands): Three Months Ended March 31, 2019 Surface Other Total Beginning balance, January 1 $ 23,951 $ 6,803 $ 30,754 Provisions and changes in estimates — 505 505 Settlements made during the period (633 ) (292 ) (925 ) Ending balance, March 31 $ 23,318 $ 7,016 $ 30,334 Three Months Ended March 31, 2018 Surface Flaking Other Residential Total Beginning balance, January 1 $ 28,157 $ 6,842 $ 34,999 Provisions and changes in estimates — 819 819 Settlements made during the period (1,000 ) (243 ) (1,243 ) Ending balance, March 31 $ 27,157 $ 7,418 $ 34,575 |
Business and Organization - Add
Business and Organization - Additional Information (Detail) - Segment | 3 Months Ended | 7 Months Ended |
Mar. 31, 2019 | Jul. 31, 2017 | |
Accounting Policies [Abstract] | ||
Number of reportable segments | 2 | 1 |
Recently Adopted Accounting S_2
Recently Adopted Accounting Standards - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Feb. 29, 2016 |
Operating lease assets | $ 44,251 | $ 0 | |
Operating lease liabilities | $ 6,859 | $ 0 | |
Accounting Standards Update 2016-02 [Member] | |||
Operating lease assets | $ 45,800 | ||
Operating lease liabilities | $ 47,200 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 34,124 | $ 46,638 |
Raw materials | 32,245 | 27,321 |
Total FIFO (first-in, first-out) inventories | 66,369 | 73,959 |
Reserve to adjust inventories to LIFO value | (18,442) | (18,442) |
Total LIFO inventories | $ 47,927 | $ 55,517 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |||
LIFO inventory liquidations | $ 0 | $ 0 | |
Raw materials | $ 2,200,000 | $ 2,300,000 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets - Summary of Prepaid Expenses and Other Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Prepaid Expense and Other Assets [Abstract] | ||
Revenues in excess of billings | $ 7,140 | $ 7,987 |
Prepaid expenses | 3,647 | 3,390 |
Contract retainage | 2,586 | 2,469 |
Income tax receivable | 0 | 471 |
Other | 504 | 1,245 |
Total prepaid expenses and other assets | $ 13,877 | $ 15,562 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
May 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill [Line Items] | |||
Goodwill | $ 68.5 | ||
Amortization of intangible asset | $ 0.1 | $ 1.2 | |
Domain Names [Member] | |||
Goodwill [Line Items] | |||
Amortization period | 15 years | ||
Purchase of domain names | $ 6.3 | ||
Customer Backlog [Member] | |||
Goodwill [Line Items] | |||
Amortization period | 12 months | ||
Trade Names and Trademarks [Member] | |||
Goodwill [Line Items] | |||
Amortization period | 12 months |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Details of Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Indefinite-lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 11,227 | $ 11,227 |
Total accumulated amortization | (5,289) | (5,185) |
Intangible assets, net | 5,938 | 6,042 |
Domain Names [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Total intangible assets | 6,327 | 6,327 |
Total accumulated amortization | (389) | (285) |
Customer Backlog [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Total intangible assets | 4,000 | 4,000 |
Total accumulated amortization | (4,000) | (4,000) |
Trade Names and Trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Total intangible assets | 900 | 900 |
Total accumulated amortization | $ (900) | $ (900) |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities - Summary of Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Sales and marketing | $ 12,906 | $ 25,379 |
Compensation and benefits | 5,204 | 19,124 |
Operating lease liabilities | 6,859 | 0 |
Income taxes | 6,138 | 0 |
Customer deposits | 2,722 | 2,058 |
Manufacturing costs | 2,146 | 3,744 |
Billings in excess of revenues | 747 | 512 |
Other | 5,925 | 5,474 |
Total accrued expenses and other liabilities | $ 42,647 | $ 56,291 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||
Remaining available borrowing capacity | $ 215,000,000 | |
Outstanding borrowings under the revolver loans | $ 35,000,000 | $ 0 |
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 |
Leases - Supplemental Cash flow
Leases - Supplemental Cash flow Information to operating leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Supplemental cash flow information | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 2,118 | |
Operating ROU assets obtained in exchange for lease liabilities | 388 | |
Supplemental balance sheet information | ||
Operating lease ROU assets | 44,251 | $ 0 |
Operating lease liabilities: | ||
Accrued expenses and other current liabilities | 6,859 | |
Operating lease liabilities | 38,764 | $ 0 |
Total operating lease liabilities | $ 45,623 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Lease Liabilities, Payments Due [Abstract] | |
2019 (excluding the three months ended March 31, 2019) | $ 6,321 |
2020 | 8,290 |
2021 | 8,095 |
2022 | 6,278 |
2023 | 5,932 |
Thereafter | 17,063 |
Total lease payments | 51,979 |
Less imputed interest | (6,356) |
Total operating liabilities | $ 45,623 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Weighted average discount rate | 3.67% |
Operating lease cost | $ 2.1 |
Operating leases with an initial term | 12 months or less |
Weighted average remaining lease term | 7 years |
Minimum [Member] | |
Operating Lease terms | 1 year |
Maximum [Member] | |
Operating Lease terms | 10 years |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | May 02, 2018shares | Mar. 31, 2019$ / sharesshares | Dec. 31, 2018shares | Feb. 16, 2018shares |
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock, par value | $ / shares | $ 0.01 | |||
Common stock, shares authorized | 80,000,000 | 120,000,000 | 120,000,000 | |
Stock split | 0 | |||
Stock Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock repurchase program, authorized shares | 5,800,000 | |||
Number of shares repurchased by the Company | 584,310 |
Stockholders' Equity - Computat
Stockholders' Equity - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income available to common shareholders | $ 31,555 | $ 37,110 |
Denominator: | ||
Basic weighted average shares outstanding | 58,543,478 | 58,855,156 |
Effect of dilutive securities: | ||
Diluted weighted average shares outstanding | 58,829,177 | 59,199,622 |
Basic earnings per share | $ 0.54 | $ 0.63 |
Diluted earnings per share | $ 0.54 | $ 0.63 |
Stock appreciation rights and options [Member] | ||
Effect of dilutive securities: | ||
Dilutive securities | 154,076 | 194,056 |
Restricted Stock [Member] | ||
Effect of dilutive securities: | ||
Dilutive securities | 131,623 | 150,410 |
Stockholders' Equity - Antidilu
Stockholders' Equity - Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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 | 12,813 | 5,433 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue remaining performance obligation | $ 45.1 |
Revenue remaining performance obligation description | the Company discloses only the transaction price allocated to its remaining performance obligations on contracts with an original duration greater than one year |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Summary of Disaggregated Net Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customers | $ 179,571 | $ 171,207 |
Products Transferred at a Point in Time and Variable Consideration Contracts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customers | 165,479 | 155,200 |
Products Transferred Over Time and Fixed Price Contracts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customers | 14,092 | 16,007 |
Residential [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customers | 165,479 | 155,200 |
Residential [Member] | Products Transferred at a Point in Time and Variable Consideration Contracts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customers | 165,479 | 155,200 |
Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customers | 14,092 | 16,007 |
Commercial [Member] | Products Transferred Over Time and Fixed Price Contracts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customers | $ 14,092 | $ 16,007 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost related to unvested awards | $ | $ 8.9 |
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 | 12,840,000 |
Number of common stock available for future issuance | 5,784,704 |
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 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Grants (Detail) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Time Based Restricted Stock Units [Member] | |
Stock Awards Granted | shares | 26,158 |
Weighted-Average Grant Price Per Share | $ / shares | $ 77.61 |
Performance Based Restricted Stock Units [Member] | |
Stock Awards Granted | shares | 80,104 |
Weighted-Average Grant Price Per Share | $ / shares | $ 47.89 |
Stock Appreciation Rights [Member] | |
Stock Awards Granted | shares | 24,536 |
Weighted-Average Grant Price Per Share | $ / shares | $ 77.70 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock-Based Compensation Grants (Parenthetical) (Detail) - shares | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Performance Based Restricted Stock Unit Target [Member] | ||||
Stock Awards Granted | 32,462 | |||
Performance Based Restricted Stock Unit Adjustment [Member] | ||||
Stock Awards Granted | 5,588 | 14,900 | 27,154 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value of Each SAR (Detail) - Stock Appreciation Rights [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share Based Compensation Arrangement by Share Based Payment Award Fair Value Assumptions and Methodology [Line Items] | ||
Weighted-average fair value of grants | $ 29.56 | $ 44.17 |
Dividend yield | 0.00% | 0.00% |
Average risk-free interest rate | 2.50% | 2.70% |
Expected term (years) | 5 years | 5 years |
Expected volatility | 39.10% | 40.40% |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Stock-Based Compensation Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 2,793 | $ 2,306 |
Stock Appreciation Rights [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 295 | 202 |
Time-Based Restricted Stock and Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 1,149 | 822 |
Performance-Based Restricted Stock and Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 1,314 | 1,249 |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 35 | $ 33 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Contingency [Line Items] | ||
Statutory tax rate, percentage | 21.00% | |
Valuation allowance | $ 3,000 | |
Income tax expense (benefit) | $ 7,700 | $ 10,415 |
Effective tax rate | 19.60% | 21.90% |
Decrease in effective tax rate due to increase in domestic production activities deduction | 2.30% | |
Excess tax benefits from stock based awards | $ 2,300 | $ 1,700 |
Earliest Tax Year [Member] | Federal Tax Jurisdiction [Member] | ||
Income Tax Contingency [Line Items] | ||
Tax years subject to examination | 2015 | |
Latest Tax Year [Member] | Federal Tax Jurisdiction [Member] | ||
Income Tax Contingency [Line Items] | ||
Tax years subject to examination | 2018 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | 7 Months Ended | |
Mar. 31, 2019USD ($)Segment | Mar. 31, 2018USD ($) | Jul. 31, 2017Segment | |
Segment Reporting Information [Line Items] | |||
Number of reportable segment | Segment | 2 | 1 | |
Net sales | $ 179,571 | $ 171,207 | |
Residential [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 165,479 | 155,200 | |
Commercial [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 14,092 | $ 16,007 |
Segment Information - Details o
Segment Information - Details of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 179,571 | $ 171,207 | |
Net income (loss) | 31,555 | 37,110 | |
Depreciation and amortization | 3,425 | 4,765 | |
Income tax expense (benefit) | 7,700 | 10,415 | |
Total assets | 535,645 | $ 465,122 | |
Residential [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 165,479 | 155,200 | |
Commercial [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 14,092 | 16,007 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 179,571 | 171,207 | |
Net income (loss) | 31,555 | 37,110 | |
EBITDA | 42,593 | 52,487 | |
Depreciation and amortization | 3,394 | 4,733 | |
Income tax expense (benefit) | 7,700 | 10,415 | |
Capital expenditures | 8,647 | 5,435 | |
Total assets | 535,645 | 445,384 | |
Operating Segments [Member] | Residential [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 165,479 | 155,200 | |
Net income (loss) | 31,255 | 37,580 | |
EBITDA | 42,067 | 51,834 | |
Depreciation and amortization | 3,268 | 3,453 | |
Income tax expense (benefit) | 7,600 | 10,572 | |
Capital expenditures | 7,694 | 5,043 | |
Total assets | 448,303 | 366,400 | |
Operating Segments [Member] | Commercial [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 14,092 | 16,007 | |
Net income (loss) | 300 | (470) | |
EBITDA | 526 | 653 | |
Depreciation and amortization | 126 | 1,280 | |
Income tax expense (benefit) | 100 | (157) | |
Capital expenditures | 953 | 392 | |
Total assets | $ 87,342 | $ 78,984 |
Segment Information - Schedule
Segment Information - Schedule of Reconciliation of Net Income to EBITDA (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net income (loss) | $ 31,555 | $ 37,110 |
Interest (income) expense, net | (56) | 229 |
Income tax expense (benefit) | 7,700 | 10,415 |
Depreciation and amortization | 3,425 | 4,765 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net income (loss) | 31,555 | 37,110 |
Interest (income) expense, net | (56) | 229 |
Income tax expense (benefit) | 7,700 | 10,415 |
Depreciation and amortization | 3,394 | 4,733 |
EBITDA | 42,593 | 52,487 |
Operating Segments [Member] | Residential [Member] | ||
Segment Reporting Information [Line Items] | ||
Net income (loss) | 31,255 | 37,580 |
Interest (income) expense, net | (56) | 229 |
Income tax expense (benefit) | 7,600 | 10,572 |
Depreciation and amortization | 3,268 | 3,453 |
EBITDA | 42,067 | 51,834 |
Operating Segments [Member] | Commercial [Member] | ||
Segment Reporting Information [Line Items] | ||
Net income (loss) | 300 | (470) |
Income tax expense (benefit) | 100 | (157) |
Depreciation and amortization | 126 | 1,280 |
EBITDA | $ 526 | $ 653 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Schedule Of Commitments And Contingencies [Line Items] | |
Change in warranty reserve for disclosure purposes only | $ 2.3 |
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% |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Reconciliation of Company's Residential Product Warranty Reserve (Detail) - Surface Flaking Warranty Reserve [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Product Warranty Liability [Line Items] | ||
Beginning balance | $ 30,754 | $ 34,999 |
Provisions and changes in estimates | 505 | 819 |
Settlements made during the period | (925) | (1,243) |
Ending balance | 30,334 | 34,575 |
Surface Flaking [Member] | ||
Product Warranty Liability [Line Items] | ||
Beginning balance | 23,951 | 28,157 |
Settlements made during the period | (633) | (1,000) |
Ending balance | 23,318 | 27,157 |
Other Residential [Member] | ||
Product Warranty Liability [Line Items] | ||
Beginning balance | 6,803 | 6,842 |
Provisions and changes in estimates | 505 | 819 |
Settlements made during the period | (292) | (243) |
Ending balance | $ 7,016 | $ 7,418 |