Company Overview & Strategy - Trex has over 30 years of leadership in the outdoor living industry, focusing on sustainable product innovation and driving conversion from wood [3] - The company's strategic growth drivers include leveraging the Trex brand, consumer engagement, channel support, licensing, and wood conversion [5] - Trex is expanding its reach through unparalleled distribution networks, targeting contractors, DIY enthusiasts, and international markets [5] - The company optimizes operations through a unique recycling business model, vertical integration, cost reduction, and consistent improvement in manufacturing throughput [5] - Trex is expanding with a 3rd production site in Arkansas, providing proximity to raw materials, a strong labor market, and key growth regions for wood conversion [7] Market & Product - The decking & railing market is valued at $8 billion, with composite share for 2021 at approximately 25%, up over 300 bps compared to 2020 [6] - A 1% gain in wood market share is worth $80 million in annual composite sales [6, 8] - Trex's new product introductions include Trex Lineage, setting a new standard for style in outdoor living [11, 15] Financial Performance & Capital Allocation - Trex has attractive long-term financial performance with a 14% CAGR in consolidated adjusted sales [28] - The company's capital allocation strategy involves reinvesting in the business, capacity expansion, and share repurchases, with over $630 million in capital expenditures since 2016 [5, 25] - Trex anticipates $400 million in plant expenditures for the Arkansas site through a modular building approach, with spending occurring into 2026 [25] - The company spent $395 million in FY 2022 on share repurchases [26]

Financial Data and Key Metrics Changes - Consolidated net sales for Q4 2022 were $192 million, exceeding expectations, with Trex Residential and Trex Commercial net sales at $181 million and $11 million respectively [14][18] - Q4 2022 consolidated gross margin increased to 34.1% from 38.9% in the previous year, while Trex Residential gross margin rose to 36.1% from 39.7% [15][18] - Full year 2022 net income was $185 million or $1.65 per diluted share, down from $209 million or $1.80 per diluted share in 2021 [19] Business Line Data and Key Metrics Changes - Trex Residential net sales for 2022 were $1.1 billion, while Trex Commercial contributed $47 million [18] - The sale of Trex Commercial resulted in a $15.4 million loss in Q4 2022, reflecting a strategic focus on the more profitable residential segment [16][18] Market Data and Key Metrics Changes - The company reported steady consumer demand for Trex decking and railing, with a broad-based appeal in the outdoor living category [5][9] - The pro channel inventory correction was completed by year-end 2022, allowing for better alignment with market expectations [14][15] Company Strategy and Development Direction - The company is focusing on accelerating the conversion from wood to composite materials, emphasizing innovation as a key competitive advantage [7][62] - Trex plans to invest in brand development and new product commercialization while maintaining a conservative approach to full-year planning [12][21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic backdrop, noting that homeowners are likely to invest in renovations rather than moving [9][10] - The company anticipates first quarter 2023 net sales to be in the range of $230 million to $240 million, with a full-year EBITDA margin expected to be between 26% and 27% [21] Other Important Information - The company completed a significant share buyback program, returning approximately $395 million to shareholders in 2022 [20] - The build-out of the new manufacturing facility in Arkansas is expected to extend beyond the originally planned 2024 timeline, with production estimated to start in early 2026 [12][20] Q&A Session Summary Question: Clarification on channel inventory and revenue guidance - Management clarified that the decline in revenue guidance is more about channel conservatism rather than a significant decline in sell-through [22] Question: Details on the $1 billion revenue guide - The $1 billion figure is a production rate assumption, not a full-year revenue guide, reflecting a conservative approach to market conditions [28][29] Question: Expectations for sell-through and contractor confidence - Sell-through in Q4 was flat year-over-year, with contractor backlogs normalizing to 4-6 weeks, indicating confidence heading into the selling season [26][36] Question: Impact of pricing on revenue - Pricing contributed approximately 10.7% in Q4, with expectations for continued pricing opportunities in the first half of 2023 [44][45] Question: Insights on distribution expansion - The company is focusing on expanding retail outlets rather than adding new distributors, particularly in high-growth markets like Texas [50]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐ 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 Trex Company, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incor ...

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 ...