WINCHESTER, Va. - Trex Company, Inc., the world's largest manufacturer of wood-alternative decking and railing products, today announced financial results for the first quarter ended March 31, 2012.

Net sales for the first quarter of 2012 totaled $96.1 million compared to net sales of $69.0 million for the 2011 first quarter, an increase of 39%. As described in the 2011 fourth quarter press release, the Company did not increase prices in 2012. This led to a more normal product demand in the 2012 quarter. The Company reported net income of $12.3 million, or $0.74 per diluted share, for the 2012 period compared to net income of $5.1 million, or $0.30 per diluted share, for the prior-year period. The Company's 2011 results reflected a favorable resolution of uncertain tax positions that positively impacted income taxes by $2.6 million. Excluding that adjustment, net income in the 2011 first quarter was $2.5 million, or $0.15 per diluted share.

Chairman, President and CEO Ronald W. Kaplan commented, "Our first quarter sales were 7% above guidance. Our best-in-class product platform, combined with market share gains, helped us exceed our revenue target. Today's results also represent the second highest first-quarter EPS performance since the Company went public in 1999.

"Demand for our 2011 new product introductions, particularly Trex Enhance(TM) and Trex Transcend(R) Porch, contributed significantly to our strong showing. Our expansion into the international arena also gained momentum, with a substantial year-over-year sales increase. Our manufacturing and productivity initiatives continued to deliver important benefits, contributing to our gross margin of 36.9%, up 350 basis points from the 2011 period."

Mr. Kaplan concluded, "We continue to see a strong shift in the market towards ultra-low-maintenance wood alternative products. With our expanding ultra-low-maintenance product offering, utilizing Transcend technology, we are off to a great start for the year. Based on the market demand we are currently seeing, we expect net sales of approximately $90 million for the second quarter of 2012, an increase of 15% from last year's period."

First-Quarter 2012 Conference Call and Webcast Information

Trex will hold a conference call to discuss its first-quarter 2012 results on Monday, May 7, 2012 at 10:00 a.m. ET. To participate in the live call by telephone, please dial 706-634-1218 or 888-803-7566 and reference conference ID #70002443. A live webcast of the conference call will also be available in the Investor Relations section of the Trex Company website at trex.com.

For those who cannot listen to the live broadcast, the webcast will be available on Trex's website for 30 days. A telephone replay of the call will also be available for seven days, beginning at approximately 1:00 p.m. ET on Monday, May 7, 2012. To listen to the telephone replay, dial 404-537-3406 and enter conference ID #70002443.

                                              TREX COMPANY, INC.
                           Condensed Consolidated Statements of Comprehensive Income
                                (In thousands, except share and per share data)
                                                  (Unaudited)
                                                                     Three Months Ended March 31,
                                                                     2012                 2011
                                                               --------------     ------------------
        Net sales                                                 $     96,100       $     69,006
        Cost of sales                                                   60,681             45,977
                                                                    ----------         ----------
        Gross profit                                                    35,419             23,029
        Selling, general and administrative expenses                    18,601             16,657
                                                                    ----------         ----------
        Income from operations                                          16,818              6,372
        Interest expense, net                                            4,411              3,963
                                                                    ----------         ----------
        Income before income taxes                                      12,407              2,409
        Provision (benefit) for income taxes                                96             (2,648)
                                                                    ----------         ---------- ----
        Net income                                                $     12,311       $      5,057
                                                               ==== ==========    ==== ==========
        Basic income per common share                             $       0.80       $       0.33
                                                               ==== ==========    ==== ==========
        Basic weighted average common shares outstanding            15,473,777         15,292,959
                                                                    ==========         ==========
        Diluted income per common share                           $       0.74       $       0.30
                                                               ==== ==========    ==== ==========
        Diluted weighted average common shares outstanding          16,717,987         16,823,788
                                                                    ==========         ==========
        Comprehensive income                                      $     12,311       $      5,241
                                                               ---- ----------    ---- ----------
        


        
                                                       TREX COMPANY, INC.
                                              Condensed Consolidated Balance Sheets
                                                (In thousands, except share data)
                                                           (unaudited)
                                                                                           31-Mar-12        31-Dec-11
                                                                                         -----------    -------------
        ASSETS
        Current assets:
            Cash and cash equivalents                                                       $   4,831     $   4,526
            Restricted cash                                                                    25,000        37,000
            Accounts receivable, net                                                          103,381        29,192
            Inventories                                                                        18,665        28,896
            Prepaid expenses and other assets                                                   1,681         2,118
            Income taxes receivable                                                               328           322
                                                                                              -------       -------
                Total current assets                                                          153,886       102,054
        Property, plant and equipment, net                                                    112,214       115,212
        Goodwill and other intangibles                                                         10,556        10,558
        Other assets                                                                              969           266
                                                                                              -------       -------
                Total assets                                                                $ 277,625     $ 228,090
                                                                                         ==== =======   === =======
        LIABILITIES AND STOCKHOLDERS' EQUITY
        Current liabilities:
            Accounts payable                                                                $  11,908     $  11,892
            Accrued expenses                                                                   15,797        16,187
            Accrued warranty                                                                    5,700         6,000
            Deferred income taxes                                                                 124           124
            Line of credit                                                                     36,700             -
            Current portion of long-term debt                                                  89,150        86,425
                                                                                              -------       -------
                Total current liabilities                                                     159,379       120,628
            Deferred income taxes                                                               2,819         2,819
            Accrued taxes                                                                          38            60
            Non-current accrued warranty                                                        9,225        10,345
            Other long-term liabilities                                                         1,728         1,739
                                                                                              -------       -------
                Total liabilities                                                             173,189       135,591
                                                                                              -------       -------
        Stockholders' equity:
            Preferred stock, $0.01 par value, 3,000,000 shares authorized; none                     -             -
            issued and outstanding
                                                                                                  157           156
            Common stock, $0.01 par value, 40,000,000 shares authorized;
            15,683,837 and 15,602,132 shares
            issued and outstanding at
            March 31, 2012 and December 31, 2011, respectively
            Additional paid-in capital                                                         99,510        99,885
            Retained earnings (deficit)                                                         4,769        (7,542)
                                                                                              -------       ------- ---
                Total stockholders' equity                         104,436        92,499
                                                                                              -------       -------
                Total liabilities and stockholders' equity       $ 277,625     $ 228,090
                                                                                         ==== =======   === =======
        


        
                                                 TREX COMPANY, INC.
                                   Condensed Consolidated Statements of Cash Flows
                                                   (In thousands)
                                                     (Unaudited)
                                                                            Three Months Ended March 31,
                                                                               2012               2011
                                                                         -------------      -------------
        OPERATING ACTIVITIES
        Net income                                                         $  12,311          $   5,057
        Adjustments to reconcile net income to net cash provided by
        operating activities:
        Depreciation and amortization                                          7,120              7,218
        Other non-cash charges                                                   752                929
        Changes in operating assets and liabilities                          (65,572)          (22,613)
                                                                             ------- ---        ------- ---
        Net cash used in operating activities                              $ (45,389)        $  (9,409)
                                                                         --- ------- ---    --- ------- ---
        INVESTING ACTIVITIES                                               $  (1,167)        $  (2,248)
                                                                         --- ------- ---    --- ------- ---
        FINANCING ACTIVITIES                                               $  46,861          $  (3,599)
                                                                         --- -------        --- ------- ---
        Net increase (decrease) in cash and cash equivalents               $     305          $ (15,256)
        Cash and cash equivalents at beginning of period                   $   4,526          $  27,270
                                                                         --- -------        --- -------
        Cash and cash equivalents at end of period                         $   4,831          $  12,014
                                                                         === =======        === =======
        

Source: Trex Company, Inc.

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