Part I [Business](index=4&type=section&id=Item%201.%20Business) Trex is the world's largest manufacturer of eco-friendly composite decking, focusing on its residential segment after divesting commercial operations, and expanding manufacturing capacity - Trex is the **world's largest manufacturer** of composite decking and railing products, marketed under the Trex® brand[12](index=12&type=chunk) - The company sold its Trex Commercial segment on December 30, 2022, to focus on its core residential business[13](index=13&type=chunk) - Trex Residential products are made from **95% reclaimed wood fibers and recycled polyethylene film**, making the company a major recycler of waste polyethylene[14](index=14&type=chunk)[16](index=16&type=chunk) - A new manufacturing facility in Little Rock, Arkansas, is under construction with an anticipated spend of approximately **$400 million**[30](index=30&type=chunk) - Key growth strategies include product innovation, brand expansion, and increasing distribution channels, alongside cost reduction and customer service[37](index=37&type=chunk)[41](index=41&type=chunk) - Primary competition comes from traditional wood decking, with The Azek Company Inc. and Fiberon as key wood-alternative competitors[39](index=39&type=chunk)[40](index=40&type=chunk) - As of December 31, 2022, Trex Residential employed **1,636 full-time employees**, none under collective bargaining agreements[54](index=54&type=chunk) [Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from intense competition, cyclical home improvement market dependency, customer concentration, raw material supply, warranty claims, and global disruptions - Growth relies on increasing market acceptance and effective competition against traditional wood products, which dominate decking sales[75](index=75&type=chunk) - Product demand is heavily influenced by the cyclical home improvement market, sensitive to economic conditions and consumer confidence[78](index=78&type=chunk) - Significant customer concentration means the loss of a major customer could adversely impact the business[78](index=78&type=chunk) - Risks exist in obtaining raw materials like wood fiber and scrap polyethylene, potentially leading to supply disruptions or price increases[90](index=90&type=chunk) - Financial exposure exists from warranty claims for surface flaking on pre-2007 decking products manufactured at the Nevada facility[86](index=86&type=chunk) - Global public health pandemics, geopolitical conflicts, climate change, and cyberattacks pose risks to business operations and data security[97](index=97&type=chunk)[104](index=104&type=chunk) [Unresolved Staff Comments](index=25&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments to report - None[106](index=106&type=chunk) [Properties](index=25&type=section&id=Item%202.%20Properties) The company owns and leases properties for headquarters and manufacturing, with **$176.2 million** in 2022 capital expenditures, largely for a new Arkansas facility Owned and Leased Properties | Purpose | Square Footage/Acres | Status | Location(s) | | :--- | :--- | :--- | :--- | | Corporate Headquarters | 39,250 SF / 8 Acres | Leased / Owned | Virginia | | Trex Residential Facilities | 1,734,589 SF | Leased | VA / NV / AR | | Trex Residential Facilities | 1,202,660 SF / 455 Acres | Owned | VA / NV / AR | - Capital expenditures in 2022 totaled **$176.2 million**, including **$85.7 million** for the new Arkansas facility and **$39.2 million** for cost reduction initiatives[107](index=107&type=chunk) [Legal Proceedings](index=25&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine litigation, which management believes will not materially affect its financial condition or operations - Pending lawsuits and claims are ordinary and incidental, with management expecting no material financial impact[110](index=110&type=chunk) [Mine Safety Disclosures](index=25&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[111](index=111&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=26&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Trex common stock is listed on NYSE, has never paid dividends, repurchased **1.15 million** shares in Q4 2022, and outperformed key indices over five years - The company has never paid cash dividends and plans to retain earnings for expansion or share repurchases[115](index=115&type=chunk) Issuer Purchases of Equity Securities (Q4 2022) | Period | Total Shares Purchased | Average Price Paid ($) | Shares Purchased Under Program | | :--- | :--- | :--- | :--- | | Oct 2022 | 578,753 | 44.45 | 578,753 | | Nov 2022 | 581,103 | 42.33 | 573,600 | | Dec 2022 | 2,418 | 42.33 | — | | **Q4 Total** | **1,162,274** | | **1,152,353** | Five-Year Cumulative Total Stockholder Return (assuming $100 invested on 12/31/2017) | | 12/31/2017 | 12/31/2018 | 12/31/2019 | 12/31/2020 | 12/31/2021 | 12/31/2022 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Trex Company, Inc.** | $100.00 | $109.52 | $165.83 | $308.93 | $498.27 | $156.20 | | Russell 2000 Index | $100.00 | $88.99 | $111.71 | $134.01 | $154.09 | $122.60 | | S&P 600 Building Products | $100.00 | $79.21 | $112.63 | $141.98 | $176.33 | $146.09 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2022, net sales decreased **7.6%** to **$1.11 billion** and net income fell **11.6%** to **$184.6 million**, driven by reduced demand and inventory drawdowns, while cash from operations remained strong [Results of Operations](index=35&type=section&id=Results%20of%20Operations) In 2022, net sales decreased **7.6%** to **$1.11 billion** due to volume reduction, gross margin fell to **36.5%**, and net income decreased **11.6%** to **$184.6 million** Financial Performance Summary (2022 vs. 2021) | Metric | 2022 (in millions) | 2021 (in millions) | $ Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $1,106.0 | $1,197.0 | $(90.9) | (7.6)% | | Gross Profit | $404.0 | $460.5 | $(56.5) | (12.3)% | | Gross Margin | 36.5% | 38.5% | | | | Net Income | $184.6 | $208.7 | $(24.1) | (11.6)% | | Diluted EPS | $1.65 | $1.80 | $(0.15) | (8.3)% | | EBITDA | $291.0 | $311.3 | $(20.3) | (6.5)% | - Trex Residential net sales decreased due to an **18.2% volume reduction** from channel partner inventory drawdowns, partially offset by a **13.6% price increase**[174](index=174&type=chunk) - A **$15.4 million loss** was recorded from the divestiture of the Trex Commercial segment on December 30, 2022[178](index=178&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) In 2022, cash from operations was **$216.2 million**, with **$176.2 million** in capital expenditures and **$398.4 million** in share repurchases, funded partly by **$222 million** in net borrowings Summary of Cash Flows | | 2022 (in thousands) | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $216,220 | $258,064 | $187,294 | | Net cash used in investing activities | $(168,884) | $(158,039) | $(170,658) | | Net cash used in financing activities | $(176,064) | $(80,673) | $(43,768) | - In 2022, the company repurchased **6.5 million shares** of common stock for **$398.4 million**[191](index=191&type=chunk)[192](index=192&type=chunk) - The revolving loan capacity was increased to **$400 million** in May 2022, with **$222 million** outstanding and **$328 million** available borrowing capacity at year-end[200](index=200&type=chunk)[201](index=201&type=chunk)[211](index=211&type=chunk) - Capital expenditure guidance for 2023 is projected to be between **$130 million** and **$140 million**[219](index=219&type=chunk) [Critical Accounting Policies and Estimates](index=31&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Critical accounting policies involve significant judgment for product warranty reserves, especially for pre-2007 surface flaking claims, and annual goodwill impairment testing - A significant warranty reserve is maintained for surface flaking claims on pre-2007 products, requiring complex judgments for future claims and settlement costs[149](index=149&type=chunk)[150](index=150&type=chunk) Surface Flaking Claims Activity | | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Claims received | 592 | 894 | 1,441 | | Claims resolved | (622) | (934) | (1,366) | | Average cost per claim ($) | 4,987 | 3,519 | 3,390 | - Goodwill is annually evaluated for impairment using qualitative factors and, if needed, a quantitative test comparing fair value to carrying value[157](index=157&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risk from variable interest rates on its **$222 million** revolving credit line, but a **1%** rate increase is not expected to be material - Primary market risk stems from interest rate changes on **$222 million** outstanding variable-rate revolving credit at December 31, 2022[222](index=222&type=chunk) - A hypothetical **1%** increase in interest rates is not expected to materially impact the company's financial position, operations, or liquidity[222](index=222&type=chunk) [Financial Statements and Supplementary Data](index=44&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section includes audited consolidated financial statements and Ernst & Young LLP's unqualified opinion, noting the surface flaking warranty reserve as a critical audit matter - Ernst & Young LLP issued an **unqualified opinion** on the consolidated financial statements and internal control effectiveness as of December 31, 2022[262](index=262&type=chunk)[263](index=263&type=chunk) - The Surface Flaking Warranty Reserve was identified as a **Critical Audit Matter** due to complex and subjective estimation judgments[266](index=266&type=chunk)[268](index=268&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=44&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There were no changes in or disagreements with accountants regarding accounting and financial disclosure - None[225](index=225&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of December 31, 2022, a finding concurred by Ernst & Young LLP - Management concluded that disclosure controls and procedures were **effective** as of December 31, 2022[226](index=226&type=chunk) - Internal control over financial reporting, based on the COSO framework, was assessed as **effective** by management and confirmed by Ernst & Young LLP as of December 31, 2022[231](index=231&type=chunk)[232](index=232&type=chunk) - No material changes to internal control over financial reporting occurred during the fourth fiscal quarter[233](index=233&type=chunk) [Other Information](index=48&type=section&id=Item%209B.%20Other%20Information) Significant events include the **$400 million** new Arkansas manufacturing facility construction and the sale of the Trex Commercial segment for **$7.3 million** to focus on residential business - A third U.S.-based manufacturing facility is under construction in Little Rock, Arkansas, with an anticipated budget of approximately **$400 million**[245](index=245&type=chunk) - The Trex Commercial segment was sold on December 30, 2022, for net proceeds of **$7.3 million**, to focus on the core residential outdoor living business[246](index=246&type=chunk) Part III [Items 10-14](index=49&type=section&id=Items%2010-14) Information for Items 10-14, covering governance, compensation, and ownership, is incorporated by reference from the 2023 proxy statement - Information for Items 10-14, including Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, Certain Relationships, and Principal Accounting Fees, is incorporated by reference from the 2023 proxy statement[248](index=248&type=chunk)[250](index=250&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk)[253](index=253&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=50&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists consolidated financial statements and exhibits, with financial statements incorporated by reference in Item 8, and a detailed index of all exhibits provided - Consolidated Financial Statements are listed here and incorporated by reference in Part II, Item 8[255](index=255&type=chunk) - A comprehensive index of all filed exhibits, including governance documents, material contracts, and certifications, is provided[256](index=256&type=chunk)[428](index=428&type=chunk)

INVESTOR PRESENTATION NYSE : TREX NYSE:TREX November 2022 SAFE HARBOR / NON-GAAP MEASURES This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause the Company's actual operating results to differ materially from those contemplated by the forward-looking statements. For further information on risk factors affecting the ...

INVESTOR PRESENTATION NYSE : TREX NYSE:TREX November 2022 SAFE HARBOR / NON-GAAP MEASURES This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause the Company's actual operating results to differ materially from those contemplated by the forward-looking statements. For further information on risk factors affecting the ...

Trex Company, Inc. (NYSE:TREX) Q3 2022 Earnings Conference Call October 31, 2022 5:00 PM ET Company Participants Viktoriia Nakhla - Investor Relations Bryan Fairbanks - President and CEO Dennis Schemm - Senior Vice President and CFO Amy Fernandez - Vice President, General Counsel Conference Call Participants Ryan Merkel - William Blair Joe Ahlersmeyer - Deutsche Bank Stanley Elliott - Stifel Spencer Kaufman - UBS Tim Wojs - Baird Jeff Stevenson - Loop Capital Trey Grooms - Stephens Reuben Garner - The Bench ...

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents Trex Company's unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2022 and 2021, along with accompanying notes Condensed Consolidated Statements of Comprehensive Income (Unaudited) | Indicator | Three Months Ended Sep 30, 2022 (in thousands) | Three Months Ended Sep 30, 2021 (in thousands) | Nine Months Ended Sep 30, 2022 (in thousands) | Nine Months Ended Sep 30, 2021 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $188,472 | $335,872 | $913,950 | $892,991 | | **Gross profit** | $46,208 | $128,250 | $338,498 | $342,323 | | **Income from operations** | $19,351 | $98,096 | $232,111 | $244,940 | | **Net income** | $14,423 | $73,795 | $174,549 | $183,705 | | **Diluted EPS** | $0.13 | $0.64 | $1.55 | $1.59 | Condensed Consolidated Balance Sheets Highlights (Unaudited) | Indicator | Sep 30, 2022 (in thousands) | Dec 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total current assets** | $245,400 | $401,054 | | **Total assets** | $841,898 | $920,321 | | **Total current liabilities** | $180,675 | $88,702 | | **Total liabilities** | $285,360 | $195,287 | | **Total stockholders' equity** | $556,538 | $725,034 | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | Indicator | Nine Months Ended Sep 30, 2022 (in thousands) | Nine Months Ended Sep 30, 2021 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $244,393 | $113,059 | | **Net cash used in investing activities** | ($108,118) | ($123,096) | | **Net cash used in financing activities** | ($271,443) | ($57,622) | | **Net decrease in cash and cash equivalents** | ($135,168) | ($67,659) | [Business and Organization](index=7&type=section&id=1.%20BUSINESS%20AND%20ORGANIZATION) The company operates in two segments: Trex Residential, manufacturing wood-alternative decking, and Trex Commercial, providing custom railing systems - Trex operates through two main segments: **Trex Residential**, its principal business, which manufactures wood-alternative decking and railing, and **Trex Commercial**, which provides custom railing and staging systems[22](index=22&type=chunk) [Basis of Presentation](index=7&type=section&id=2.%20BASIS%20OF%20PRESENTATION) Financial statements are prepared under U.S. GAAP, noting reduced demand and inventory drawdown impacting Q3 and Q4 2022 sales - A reduction in demand from distribution partners began in late June 2022 due to concerns over rising interest rates and a slowing economy. This led to channel partners reducing their inventory levels, which negatively impacted **Q3 2022 sales** and is expected to affect **Q4 2022 sales**[24](index=24&type=chunk) [Debt](index=9&type=section&id=9.%20DEBT) The company established a new **$400 million** revolving credit facility in May 2022, with **$76 million** outstanding and **$324 million** available as of September 30, 2022 - The company established a new **$400 million** revolving credit facility on May 18, 2022, which matures in 2027[35](index=35&type=chunk)[36](index=36&type=chunk) - As of September 30, 2022, there was **$76 million** outstanding under the revolving credit facility, with **$324 million** of available borrowing capacity[43](index=43&type=chunk) [Stockholders' Equity](index=11&type=section&id=12.%20STOCKHOLDERS%27%20EQUITY) This section details EPS computation and the stock repurchase program, with **9.0 million** shares repurchased out of **11.6 million** authorized - Under its stock repurchase program, Trex has repurchased **9.0 million** of the **11.6 million** authorized shares as of September 30, 2022[51](index=51&type=chunk) [Revenue from Contracts with Customers](index=12&type=section&id=13.%20REVENUE%20FROM%20CONTRACTS%20WITH%20CUSTOMERS) Trex Residential revenue is recognized upon shipment, while Trex Commercial revenue from fixed-price contracts is recognized over time, with a **$42.5 million** backlog - Trex Residential revenue is recognized at a point in time upon product shipment[52](index=52&type=chunk) - Trex Commercial had a backlog of **$42.5 million** in remaining performance obligations as of September 30, 2022, expected to be recognized over the next 24 months[53](index=53&type=chunk) [Segment Information](index=15&type=section&id=16.%20SEGMENT%20INFORMATION) The company reports on two segments, Trex Residential and Trex Commercial, detailing their respective net sales and EBITDA performance Segment Performance - Nine Months Ended Sep 30, 2022 (In thousands) | Segment | Net Sales (in thousands) | Net Income (Loss) (in thousands) | EBITDA (in thousands) | | :--- | :--- | :--- | :--- | | **Trex Residential** | $878,892 | $176,939 | $267,725 | | **Trex Commercial** | $35,058 | ($2,390) | ($2,344) | | **Total** | $913,950 | $174,549 | $265,381 | Segment Performance - Three Months Ended Sep 30, 2022 (In thousands) | Segment | Net Sales (in thousands) | Net Income (Loss) (in thousands) | EBITDA (in thousands) | | :--- | :--- | :--- | :--- | | **Trex Residential** | $177,776 | $15,287 | $31,692 | | **Trex Commercial** | $10,696 | ($864) | ($876) | | **Total** | $188,472 | $14,423 | $30,816 | [Commitments and Contingencies](index=16&type=section&id=18.%20COMMITMENTS%20AND%20CONTINGENCIES) This section discusses product warranty obligations, particularly for pre-2007 products, and plans for a new **$400 million** manufacturing facility - The company continues to manage warranty claims for surface flaking on products made before 2007. In the first nine months of 2022, the number of claims received was lower than in 2021, but the average cost per claim was significantly higher[72](index=72&type=chunk)[76](index=76&type=chunk) - A **10%** change in the expected number or cost of remaining surface flaking claims could change the warranty reserve by approximately **$1.6 million**[77](index=77&type=chunk) - The company began construction on a new manufacturing facility in Little Rock, Arkansas in **Q2 2022**, with an anticipated cost of approximately **$400 million**[81](index=81&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a significant Q3 2022 downturn, with net sales down **43.9%** due to channel inventory reduction, while year-to-date sales increased **2.3%** [Overview](index=19&type=section&id=OVERVIEW) The company operates in two segments and began construction on a new **$400 million** manufacturing facility in Arkansas in **Q2 2022** - Construction began in **Q2 2022** on a new Trex Residential manufacturing facility in Arkansas, with an anticipated total investment of approximately **$400 million**[90](index=90&type=chunk) - In August 2022, the company launched the NexTrex Grassroots Movement, a new initiative to expand its plastic film recycling program to communities and organizations[91](index=91&type=chunk) [Results of Operations](index=22&type=section&id=RESULTS%20OF%20OPERATIONS) Q3 2022 net sales decreased **43.9%** to **$188.5 million**, primarily due to channel inventory reduction, while year-to-date net sales increased **2.3%** - Towards the end of June, Trex Residential experienced a reduction in demand from distribution partners due to concerns over rising interest rates and a slowing economy, leading to an inventory drawdown that negatively impacted **Q3** and is expected to impact **Q4 sales**[98](index=98&type=chunk) Q3 2022 vs Q3 2021 Performance (in thousands) | Metric | Q3 2022 (in thousands) | Q3 2021 (in thousands) | $ Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Net Sales** | $188,472 | $335,872 | $(147,400) | (43.9)% | | **Trex Residential Sales** | $177,776 | $319,207 | $(141,431) | (44.3)% | | **Gross Profit** | $46,208 | $128,250 | $(82,042) | (64.0)% | | **Gross Margin** | 24.5% | 38.2% | - | - | Nine Months 2022 vs 2021 Performance (in thousands) | Metric | YTD 2022 (in thousands) | YTD 2021 (in thousands) | $ Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Net Sales** | $913,950 | $892,991 | $20,959 | 2.3% | | **Trex Residential Sales** | $878,892 | $850,909 | $27,983 | 3.3% | | **Gross Profit** | $338,498 | $342,323 | $(3,825) | (1.1)% | | **Gross Margin** | 37.0% | 38.3% | - | - | [Liquidity and Capital Resources](index=26&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Cash from operations significantly increased to **$244.4 million** in the first nine months of 2022, with **$348 million** used for stock repurchases and **$107.9 million** for capital expenditures - Cash provided by operations increased to **$244.4 million** in the first nine months of 2022, up from **$113.1 million** in the same period of 2021[120](index=120&type=chunk)[121](index=121&type=chunk) - During the first nine months of 2022, the company used **$348 million** to repurchase common stock and had net borrowings of **$76 million**[123](index=123&type=chunk) - Capital expenditure guidance for the full year 2022 is set at **$170 million** to **$180 million**[138](index=138&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risk exposure during the nine months ended September 30, 2022 - There were no material changes to the Company's market risk exposure during the nine months ended September 30, 2022[147](index=147&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2022, with no material changes to internal controls - Management concluded that the Company's disclosure controls and procedures were effective as of September 30, 2022[148](index=148&type=chunk) [PART II OTHER INFORMATION](index=31&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine litigation and claims not expected to materially affect its financial condition or operations - Pending lawsuits and claims are considered ordinary and are not expected to have a material effect on the Company's financial condition or operations[151](index=151&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases during Q3 2022, totaling approximately **1.71 million** shares Common Stock Purchases - Q3 2022 | Period | Total Shares Purchased | Average Price Paid per Share ($) | | :--- | :--- | :--- | | July 2022 | 1,709,785 | $58.47 | | August 2022 | 891 | $64.51 | | September 2022 | 57 | $47.40 | | **Total Q3 2022** | **1,710,733** | **N/A** | - As of September 30, 2022, there were **2,628,667** shares remaining for purchase under the authorized stock repurchase program[152](index=152&type=chunk) [Other Information](index=31&type=section&id=Item%205.%20Other%20Information) Trex Company was recognized as one of the 50 Best U.S. Manufacturers by Industry Week magazine in July 2022 - In July 2022, Trex was named one of the **50 Best U.S. Manufacturers** by Industry Week magazine, ranking **6th** on the list[153](index=153&type=chunk) [Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section provides an index of exhibits filed with the Form 10-Q, including corporate governance documents and certifications

INVESTOR PRESENTATION NYSE : TREX NYSE:TREX August 2022 SAFE HARBOR / NON-GAAP MEASURES This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause the Company's actual operating results to differ materially from those contemplated by the forward-looking statements. For further information on risk factors affecting the Co ...

Trex Company, Inc. (NYSE:TREX) Q2 2022 Earnings Conference Call August 8, 2022 5:00 PM ET Company Participants Viktoriia Nakhla - IR Amy Fernandez - VP, General Counsel & Assistant Secretary Bryan Fairbanks - President, CEO & Director Dennis Schemm - SVP & CFO Conference Call Participants John Lovallo - UBS Ryan Merkel - William Blair & Company Keith Hughes - Truist Securities Timothy Wojs - Robert W. Baird & Co. Michael Rehaut - JPMorgan Chase & Co. Reuben Garner - The Benchmark Company Daniel Oppenheim - ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-14649 (Former name, former address and former fiscal year, if changed since last report) | Title of each class | Trading ...

Company Overview and Strategy - Trex is a leader in outdoor living products, emphasizing sustainable product innovation and driving conversion from wood [5] - The company's strategic growth drivers include leveraging the Trex brand, expanding reach, optimizing operations, and capital allocation [9, 10, 11] - Trex is expanding its production capacity with a new site in Little Rock, AR, slated to begin production in mid-2024 [15] - The company focuses on cost reduction and continuous improvement initiatives through automation, modernization, energy utilization, and material processing [17] Market and Product Expansion - The core market size for decking and railing is $8 billion and growing [19] - Composite decking market share for 2021 was approximately 25%, an increase of over 200 basis points compared to 2020 [14] - Trex is expanding internationally, with 61% year-over-year growth and sales in 42 countries outside the U S [14] - Trex is launching the next generation of Transcend decking with refined aesthetics and enhanced performance features [7] Financial Performance and Capital Allocation - Trex has shown strong double-digit revenue growth [51] - The company has allocated over $450 million in capital expenditures since 2016 [49] - Trex has repurchased $425 million in shares over the past 10 years, including $74 million in FY21 and $75 million in Q1'22 [49]

INVESTOR PRESENTATION NYSE : TREX N Y S E : T R E X May 2022 1 SAFE HARBOR / NON-GAAP MEASURES This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause the Company's actual operating results to differ materially from those contemplated by the forward-looking statements. For further information on risk factors affecting ...