Trex(TREX) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 net sales were $168 million, a decrease of 14.4% compared to $196 million in the prior-year quarter, impacted by a reduction in channel inventory of approximately $45 million[9] - Full year 2024 net income was $226 million, or $2.09 per share, representing a 10.2% growth from $205 million, or $1.89 per share, in 2023[15] - Full year consolidated net sales increased 5.2% to $1.2 billion from $1.1 billion in the year-ago period[14] - EBITDA for full year 2024 was $360 million, up 10.4% from $326 million in the prior year, with an EBITDA margin expanding by 150 basis points to 31.3%[15] - Net sales for the year ended December 31, 2024, were $1,151,449,000, an increase of 5.2% from $1,094,837,000 in 2023[35] - Gross profit for the year ended December 31, 2024, was $485,668,000, compared to $452,407,000 in 2023, reflecting a gross margin improvement[35] - Net income for the year ended December 31, 2024, was $226,392,000, up from $205,384,000 in 2023, representing a growth of 10.2%[35] - Basic earnings per share for the year ended December 31, 2024, increased to $2.09 from $1.89 in 2023, a rise of 10.6%[35] Future Outlook - The company anticipates 5-7% revenue growth for 2025, with adjusted EBITDA margin expected to exceed 31%[1] - The company expects first quarter 2025 revenues to be between $325 million and $330 million, with a shift of approximately $40 million in sales timing compared to the prior year[20] Product Development and Market Strategy - Products launched within the last 36 months represented approximately 18% of 2024 revenues, indicating strong consumer response to new product innovations[6] - The company plans to introduce new railing products to significantly increase penetration of the $3.3 billion railing market[7] Shareholder Returns and Financial Position - Trex repurchased 1.6 million shares of outstanding common stock for $100 million in 2024, demonstrating confidence in long-term outlook[21] - The company reported a net cash provided by operating activities of $143,929,000 for the year ended December 31, 2024, down from $389,420,000 in 2023[39] - The company invested $232,337,000 in property, plant, and equipment during the year ended December 31, 2024, compared to $166,089,000 in 2023, reflecting ongoing expansion efforts[39] - Total liabilities increased to $474,156,000 as of December 31, 2024, from $216,214,000 in 2023, indicating increased leverage[37] - The company repurchased $105,940,000 of common stock during the year ended December 31, 2024, compared to $18,450,000 in 2023, signaling confidence in its financial position[39] Recognition and Awards - Trex was named "America's Most Trusted Outdoor Decking" for the fifth consecutive year and topped rankings in Builder Magazine's annual Brand Use Study[17] Asset Management - Total assets as of December 31, 2024, were $1,324,298,000, a significant increase from $932,885,000 in 2023, indicating strong growth in asset base[37] - Cash and cash equivalents decreased to $1,292,000 at the end of 2024 from $1,959,000 at the end of 2023[39]