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Segment Information | 12 Months Ended
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Dec. 31, 2023
Segment Reporting [Abstract] |
Segment Information |
17. | SEGMENT INFORMATION
Through December 30, 2022, the Company operated in two reportable segments. On December 30, 2022, the Company completed the sale of its wholly-owned subsidiary and reportable segment, Trex Commercial. Subsequent to the sale of Trex Commercial, the Company operates in one reportable segment, Trex Residential.
| • |  | 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 designed, engineered, and marketed modular and architectural railing and staging systems for the commercial and multi-family market, including sports stadiums and performing arts venues. The segment’s products were sold through architects, specifiers, contractors, and others doing business within the segment’s commercial market. On December 30, 2022, the Company completed the sale of Trex Commercial. Refer to Note 3 to these consolidated financial statements for additional information on the sale of Trex Commercial.
The Company’s reportable segments are determined in accordance with its internal management structure, which, through December 30, 2022, was 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 (Loss) (1) |  |  | EBITDA |  |  | Depreciation and Amortization |  |  | Income Tax Expense / (Benefit) |  |  | Capital Expenditures |  |  | Total Assets |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trex Residential |  | $ | 1,094,837 |  |  | $ | 205,384 |  |  | $ | 326,393 |  |  | $ | 50,189 |  |  | $ | 70,815 |  |  | $ | 166,089 |  |  | $ | 932,885 |
Consolidated |  | $ | 1,094,837 |  |  | $ | 205,384 |  |  | $ | 326,393 |  |  | $ | 50,189 |  |  | $ | 70,815 |  |  | $ | 166,089 |  |  | $ | 932,885 |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trex Residential |  | $ | 1,059,536 |  |  | $ | 200,876 |  |  | $ | 311,259 |  |  | $ | 43,173 |  |  | $ | 67,313 |  |  | $ | 175,904 |  |  | $ | 933,705 |
Trex Commercial |  |  | 46,507 |  |  |  | (16,250 | ) |  |  | (20,226 | ) |  |  | 1,125 |  |  |  | (5,101 | ) |  |  | 324 |  |  |  | — |
Consolidated |  | $ | 1,106,043 |  |  | $ | 184,626 |  |  | $ | 291,033 |  |  | $ | 44,298 |  |  | $ | 62,212 |  |  | $ | 176,228 |  |  | $ | 933,705 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trex Residential |  | $ | 1,139,266 |  |  | $ | 247,059 |  |  | $ | 361,485 |  |  | $ | 34,941 |  |  | $ | 79,500 |  |  | $ | 157,568 |  |  | $ | 881,225 |
Trex Commercial |  |  | 57,686 |  |  |  | (38,322 | ) |  |  | (50,163 | ) |  |  | 1,005 |  |  |  | (12,846 | ) |  |  | 1,826 |  |  |  | 39,096 |
Consolidated |  | $ | 1,196,952 |  |  | $ | 208,737 |  |  | $ | 311,322 |  |  | $ | 35,946 |  |  | $ | 66,654 |  |  | $ | 159,394 |  |  | $ | 920,321 |
(1) | For the year ended December 31, 2022, consolidated net income and net loss at Trex Commercial includes a loss on sale of Trex Commercial on December 30, 2022, of $15.4 million. For the year ended December 31, 2021, consolidated net income and net loss at Trex Commercial includes a goodwill impairment charge of $54.2 million.
Reconciliation of Net Income (Loss) to EBITDA (in thousands):
|  | Net Income / (Loss) |  |  | Interest Expense / (Income), Net |  |  | Income Tax Expense / (Benefit) |  |  | Depreciation and Amortization |  |  | EBITDA |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trex Residential |  | $ | 205,384 |  |  | $ | 5 |  |  | $ | 70,815 |  |  | $ | 50,189 |  |  | $ | 326,393 |
Consolidated |  | $ | 205,384 |  |  | $ | 5 |  |  | $ | 70,815 |  |  | $ | 50,189 |  |  | $ | 326,393 |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trex Residential |  | $ | 200,876 |  |  | $ | (103 | ) |  | $ | 67,313 |  |  | $ | 43,173 |  |  | $ | 311,259 |
Trex Commercial |  |  | (16,250 | ) |  |  | — |  |  |  | (5,101 | ) |  |  | 1,125 |  |  |  | (20,226 | )
Consolidated |  | $ | 184,626 |  |  | $ | (103 | ) |  | $ | 62,212 |  |  | $ | 44,298 |  |  | $ | 291,033 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trex Residential |  | $ | 247,059 |  |  | $ | (15 | ) |  | $ | 79,500 |  |  | $ | 34,941 |  |  | $ | 361,485 |
Trex Commercial |  |  | (38,322 | ) |  |  | — |  |  |  | (12,846 | ) |  |  | 1,005 |  |  |  | (50,163 | )
Consolidated |  | $ | 208,737 |  |  | $ | (15 | ) |  | $ | 66,654 |  |  | $ | 35,946 |  |  | $ | 311,322 |

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