Trex Company, Inc. (TREX) has reported a 41.06 percent jump in profit for the year ended Dec. 31, 2016. The company has earned $67.85 million, or $2.29 a share in the year, compared with $48.10 million, or $1.52 a share for the last year.
Revenue during the year grew 8.80 percent to $479.62 million from $440.80 million in the previous year.
Operating income for the year was $103.96 million, compared with $77.41 million in the previous year.
"Fourth quarter sales performance was above our guidance and represented broad based, year-on-year growth across our product lines and geographies. The high single-digit sales growth achieved in the fourth quarter is noteworthy given the difficult comparisons to last year's record fourth quarter, when unusually warm weather contributed to a 20% year-on-year sales increase. Gross margin expansion and cost discipline resulted in operating income as a percentage of net sales, operating income margin, of over 20%, substantially ahead of the 15% reported in the prior year," said James E. Cline, president and chief executive officer.
For the first-quarter 2017, Trex Company, Inc.projects revenue to be $144 million.
Operating cash flow improves significantly
Trex Company, Inc. has generated cash of $85.29 million from operating activities during the year, up 36.18 percent or $22.66 million, when compared with the last year.
The company has spent $10.20 million cash to meet investing activities during the year as against cash outgo of $23.33 million in the last year. It has incurred net capital expenditure of $10.20 million on net basis during the year, down 56.21 percent or $13.10 million from year ago.
The company has spent $62.42 million cash to carry out financing activities during the year as against cash outgo of $42.85 million in the last year period.
Cash and cash equivalents stood at $18.66 million as on Dec. 31, 2016, up 211.33 percent or $12.67 million from $6 million on Dec. 31, 2015.
Working capital increases sharply
Trex Company, Inc. has recorded an increase in the working capital over the last year. It stood at $54.26 million as at Dec. 31, 2016, up 40.65 percent or $15.68 million from $38.58 million on Dec. 31, 2015. Current ratio was at 2.06 as on Dec. 31, 2016, up from 1.64 on Dec. 31, 2015.
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