Trex Company, Inc.(TREX) has reported a 17.90 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $27.95 million, or $0.95 a share in the quarter, compared with $23.71 million, or $0.79 a share for the same period last year. Revenue during the quarter grew 9.97 percent to $144.81 million from $131.68 million in the previous year period. Gross margin for the quarter expanded 124 basis points over the previous year period to 45 percent. Total expenses were 71.06 percent of quarterly revenues, down from 71.89 percent for the same period last year. This has led to an improvement of 82 basis points in operating margin to 28.94 percent.
Operating income for the quarter was $41.90 million, compared with $37.02 million in the previous year period.
"This was another strong quarter for Trex, with double-digit sales growth, favorable gross margin impacts and relatively stable SG&A as a percent of revenue, resulting in record revenues and earnings," commented James E. Cline, president and chief executive officer.
For the second-quarter 2017, Trex Company, Inc. projects revenue to be $160 million.
Operating cash flow remains negative
Trex Company, Inc. has spent $86.44 million cash to meet operating activities during the quarter as against cash outgo of $84.12 million in the last year period. The company has spent $4.31 million cash to meet investing activities during the quarter as against cash inflow of $1.81 million in the last year period.
Cash flow from financing activities was $73.86 million for the quarter, down 7.81 percent or $6.26 million, when compared with the last year period.
Cash and cash equivalents stood at $1.77 million as on Mar. 31, 2017, down 53.55 percent or $2.04 million from $3.80 million on Mar. 31, 2016.
Working capital increases sharply
Trex Company, Inc. has recorded an increase in the working capital over the last year. It stood at $79.56 million as at Mar. 31, 2017, up 740.83 percent or $70.10 million from $9.46 million on Mar. 31, 2016. Current ratio was at 1.62 as on Mar. 31, 2017, up from 1.05 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 67 days for the quarter from 79 days for the last year period. Days sales outstanding went down to 68 days for the quarter compared with 70 days for the same period last year.
Days inventory outstanding has decreased to 17 days for the quarter compared with 30 days for the previous year period. At the same time, days payable outstanding went down to 18 days for the quarter from 21 for the same period last year.
Debt comes down significantly
Trex Company, Inc. has recorded a decline in total debt over the last one year. It stood at $77 million as on Mar. 31, 2017, down 45.58 percent or $64.50 million from $141.50 million on Mar. 31, 2016. Trex CompanyInc has recorded a decline in short-term debt over the last one year. It stood at $77 million as on Mar. 31, 2017, down 45.58 percent or $64.50 million from $141.50 million on Mar. 31, 2016. Total debt was 23.82 percent of total assets as on Mar. 31, 2017, compared with 45.25 percent on Mar. 31, 2016. Debt to equity ratio was at 0.48 as on Mar. 31, 2017, down from 1.62 as on Mar. 31, 2016. Interest coverage ratio improved to 205.39 for the quarter from 64.71 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
