Trex Company Provides Update on Current Impact of COVID-19
Trex Company, Inc., provided an update on the current impact of the COVID-19 pandemic on its business.
Jim Cline, President and Chief Executive Officer, and Bryan Fairbanks, Executive Vice President and Chief Financial Officer, issued a joint statement noting, “We are actively managing our business to respond to the conditions of this health crisis and will continue to evaluate the nature and extent of its impact.
“Our facilities continue to operate and we are following all CDC and public officials’ guidelines, along with implementing local emergency response plans at each location. Our dedicated employees have risen to the challenge to continue production in a safe and effective manner to meet consumer demand for Trex products.
“The COVID-19 pandemic represents uncharted territory, but we believe that Trex has key strengths that will enable us to weather this crisis. From a financial perspective, we are in a strong cash position, with almost $150 million in cash at 2019 year-end, zero debt, and a new credit line that provides up to $250 million in liquidity. Additionally, Trex generates substantial free cash flow, and while we see no need to modify our current capital expansion program, it is modular and can be adjusted if necessary.
“As the industry’s low-cost producer, Trex has considerable financial and operational flexibility. At this time, we have no supply issues; however, we maintain inventories of materials sourced from diversified geographies, which allows Trex to better tolerate short term supply chain disruptions. From an end-market perspective, we have approximately 100 exclusive distribution locations and 6,700 channel partner outlets where consumers can purchase our products.
“Our financial strength and business advantages give us confidence in our long term strategy to convert an increased share of the wood market to Trex composite products. Our commitment to stakeholders is to take the appropriate actions to ensure the safety and well-being of our employees and partners, to leverage our strengths and ensure financial flexibility, while at the same time complying with any governmental orders relating to COVID-19. We look forward to discussing our first quarter results and second quarter outlook in early May.”
About Trex Company
Trex Company is the world’s largest manufacturer of high performance wood-alternative decking and railing with more than 25 years of product experience. Stocked in more than 6,700 retail locations worldwide, Trex outdoor living products offer a wide range of style options with fewer ongoing maintenance requirements than wood, as well as a truly environmentally responsible choice. Also, Trex is a leading national provider of custom-engineered railing and staging systems for the commercial and multi-family market, including performing arts venues and sports stadiums. For more information, visit trex.com.
Bryan Fairbanks – Executive Vice President & CFO – (540) 542-6300
Source: Trex Company, Inc.