Rebuilding your backyard deck takes time, but rebuilding a decking company requires even more patience. Investors are reaping the rewards of one such turnaround.
Composite decking company Trex announced fourth quarter results on Tuesday morning with net sales of $74.2 million and earnings per share of $0.16. Both results beat analyst expectations and catapulted the stock to a new all-time high over $49 per share (up 6.5% on the day).
For the full year, Trex reported sales of $391.7 million, up from $343 million in 2013, and earnings per share of $1.27, up from $1.01 in 2013. Both earnings and revenue figures were record highs for the manufacturer, which has recovered from near death in 2008.
“Our record results reflect continued strong execution across our four guiding principles for enhancing shareholder value – our superior product platform, unsurpassed branding, enhanced global distribution presence and efficient manufacturing processes. We are pleased with our successful market share advancement initiatives in 2014," CEO Ron Kaplan said in a statement.
Kaplan took over Trex in January 2008, when the company was on the verge of bankruptcy, suffering from quality problems, cost overruns, and mounting debt. But his turnaround plan has been one of the most successful the industry has ever seen. Trex stock is now up 1050% since the beginning of 2008.
Read more about Trex's turnaround in Forbes' recent feature on the company.
