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Segment Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information
16.
SEGMENT INFORMATION
The Company operates in two reportable segments:
 
  •  
Trex Residential manufactures composite decking and railing and related products marketed under the brand name Trex
®
. The products are sold to its distributors and two national retailers who, in turn, sell primarily to the residential market, which includes replacement, remodeling and new construction related to outdoor living products.
 
  •  
Trex Commercial designs, engineers, and markets modular and architectural railing and staging systems for commercial and multi-family market, including sports stadiums and performing arts venues. The segment’s products are sold through architects, specifiers, contractors, and others doing business within the segment’s commercial market.
The Company’s reportable segments have been determined in accordance with its internal management structure, which is organized based on residential and commercial operations. The Company evaluates performance of each segment primarily based on net sales and earnings before interest, taxes, depreciation and amortization (EBITDA). The Company uses net sales to assess performance and allocate resources as this measure represents the amount of business the segment engaged in during a given period of time, is an indicator of market growth and acceptance of segment products and represents the segment’s customers’ spending habits along with the amount of product the segment sells relative to its competitors. The Company uses EBITDA to assess performance and allocate resources because it believes that EBITDA facilitates performance comparison between the segments by eliminating interest, taxes, and depreciation and amortization charges to income.
Segment Data (in thousands):
 
   
Net Sales
    
Net Income
    
EBITDA
    
Depreciation
and
Amortization
    
Income Tax
Expense
    
Capital
Expenditures
    
Total Assets
  
December 31, 2020
                                                        
Trex Residential
   $ 827,792     $ 171,197     $ 244,817     $ 17,131     $ 57,488     $ 171,784     $ 676,948  
Trex Commercial
     53,039       4,434       6,758       809       1,515       1,039       93,544  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   $ 880,831     $ 175,631     $ 251,575     $ 17,940     $ 59,003     $ 172,823     $ 770,492  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
December 31, 2019
                                                        
Trex Residential
   $ 694,267     $ 142,811     $ 199,020     $ 13,413     $ 44,292     $ 65,399     $ 503,883  
Trex Commercial
     51,080       1,927       3,210       618       672       1,866       88,356  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   $ 745,347     $ 144,738     $ 202,230     $ 14,031     $ 44,964     $ 67,265     $ 592,239  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
December 31, 2018
                                                        
Trex Residential
   $ 613,229     $ 131,823     $ 186,268     $ 13,216     $ 41,421     $ 31,392     $ 380,682  
Trex Commercial
     71,021       2,749       6,868       3,251       868       2,424       84,440  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   $ 684,250     $ 134,572     $ 193,136     $ 16,467     $ 42,289     $ 33,816     $ 465,122  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
Reconciliation of Net Income (Loss) to EBITDA (in thousands):
 
    
Net Income
     
Interest
(Income)
Expense, Net
     
Income Tax
Expense
     
Depreciation
and
Amortization
     
EBITDA
  
December 31, 2020
                                             
Trex Residential
    $ 171,197      $ (999 )     $ 57,488      $ 17,131      $ 244,817  
Trex Commercial
      4,434        —           1,515        809        6,758  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 175,631      $ (999 )     $ 59,003      $ 17,940      $ 251,575  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
December 31, 2019
                                             
Trex Residential
    $ 142,811      $ (1,496 )     $ 44,292      $ 13,413      $ 199,020  
Trex Commercial
      1,927        (7 )       672        618        3,210  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 144,738      $ (1,503 )     $ 44,964      $ 14,031      $ 202,230  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
December 31, 2018
                                             
Trex Residential
    $ 131,823      $ (192 )     $ 41,421      $ 13,216      $ 186,268  
Trex Commercial
      2,749        —           868        3,251        6,868  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 134,572      $ (192 )     $ 42,289      $ 16,467      $ 193,136