Trex Q1 Earnings Down - Quick Facts

(RTTNews) - Trex Co. Inc. (TREX) Monday reported a drop in net earnings for the first quarter, mainly reflecting a significantly higher income tax provision and lower sales.

Trex Co. uses recycled materials to manufacture wood-alternative decking, railings and other outdoor items.

"The severe weather experienced throughout the country during the first quarter delayed the start of outdoor living project activity," said Ronald Kaplan, CEO of Trex.

For the first quarter, net earnings decreased to $12.29 million or $0.73 per share, from $21.57 million or $1.25 per share a year earlier.

On average, 6 analysts polled by Thomson-Reuters estimated the company's earnings to be $0.93 for the quarter. Analysts' estimates typically exclude one-time items.

The company recorded a income tax provision of $7.33 million, higher than $198,000 a year ago, as the company returned to a more normal tax rate after the end of its tax valuation allowance in 2013.

Net sales for the 3-month period declined to $100.64 million from $107.88 million in the corresponding period last year.

For the second quarter, the company expects net sales of $125 million.