Trex reduces losses in the third quarter
- October 31, 2011
Winchester-based Trex Co. Inc. has reported reduced losses for the third quarter.
A major manufacturer of wood-alternative decking and railing products, Trex said it had a net loss of $500,000, or 3 cents a diluted share, for the period ending Sept. 30, compared with a net loss of $8.8 million, or 58 cents per diluted share, for the same period in 2010.
Net sales for the third quarter of 2011 totaled $67.9 million, up from $60.6 million for the 2010 third quarter.
The company recognized an accelerated noncash charge of $500,000 during the 2011 period related to its repurchase of $5.6 million of its senior subordinated convertible notes due in July 2012.
Before this charge, Trex had net income of $28,000. During the 2010 period, the company recognized $3.9 million of unusual charges. Before those charges, Trex had a net loss of $5 million, or 33 cents a share for the 2010 period.
For the nine months ending Sept. 30, 2011, Trex reported net sales of $215.3 million, down from $242.4 million for the prior-year period.
The company had a nine-month net income of $6.7 million, or 41 cents per diluted share, compared with a net loss of $9.6 million, or 63 cents per diluted share for 2010.
The 2011 results reflect the favorable resolution of tax positions in the first quarter that positively impacted income taxes by $2.6 million as well as the $500,000 accelerated non-cash charge related to its convertible notes repurchase.
Before these items, net income for 2011 was $4.6 million, or 28 cents per diluted share.