Trex posts $15.3 million net loss
Winchester, Va.-based Trex Co. posted a third-quarter net loss of $15.3 million for the period ended Sept. 30, 2013 — that compares with a loss of $14.3 million in the same quarter last year.
The losses were the result of non-operating charges, the company said. The consisted of a $1.8 million charge related to resetting its prices for certain products as the company transitions its product offerings exclusively to Transcend technology; a $20.0 million increase to its warranty reserve for decking material manufactured at its Nevada plant prior to 2007; and a $1.1 million charge related to subleased office space in Dulles, Va. During the 2012 third quarter, the company recognized a $20 million increase to its warranty reserve and $0.5 million related tax charge.
Net sales for the third quarter of 2013 totaled $72.2 million compared with net sales of $70.8 million for the 2012 third quarter, an increase of 2%.
“Operationally, it was another solid quarter for Trex,” said CEO Ronald Kaplan. “Our operating gross margin was strong despite operating at seasonally lower levels of capacity utilization, and our underlying EPS was better than anticipated at $0.45 per share.
“To further advance our industry-leading market share, we are continuing to expand our distribution network,” he added. “In the last couple of weeks, we added three major East Coast distributors, significantly increasing our presence in this strategically important region. We expect sales growth from our expansion strategies with all classes of customers to occur over the next several years with 2014 benefiting by $40 million to $60 million.”
Home Depot Canada pledges $10 million for homeless youth
Supplementing a $10 million three-year commitment aimed at helping homeless youth in Canada, Home Depot Canada has released a whitepaper on breaking the cycle of youth homelessness.
The funds will go toward renovation and repair projects, life skill development programs and research initiatives aimed at addressing the needs of the tens of thousands of Canadian youth who are affected by homelessness each year.
Additionally, the company will collaborate with stakeholders to help create access to safe housing for homeless youth, establish a thought leadership advisory council, support new research and create a youth advisory council based on parameters that are defined by homeless youth.
"Research shows that reaching homeless youth early with housing and life skills support solutions will decrease the likelihood they will become chronically homeless adults," said Peg Hunter, chair of the board with The Home Depot Canada Foundation. "By focusing our efforts on youth and housing, we can maximize our resources, help youth realize their potential and build brighter futures."
Home Depot Canada has been tackling the issue of affordable housing since the inception of the Home Depot Canada Foundation in 2009.
Construction in Southwest metro regions up 11.3%
The BidClerk Construction Index (BCI) registered an 11.3% year-over-year increase in construction activity for major-metro regions in the Southwest U.S.
There was a vast disparity in the rate of progress depending on the type of construction, however; the uptick rides entirely on the shoulders of the public sector. Private construction was down 6.3%, while public construction increased 23.9%.
There is also great geographic disparity within the region itself. Combined public and private projects that were actively bidding in Phoenix were down 6.2%, while those in Las Vegas increased 22.6% and those in Albuquerque were up by as much as 50%.
The metros in question include Phoenix-Mesa-Glendale, Prescott, Tucson, Yuma, Las Vegas-Paradise, Reno-Sparks, Albuquerque and Santa Fe.
The total value of all projects in the region (of those bidding in the third quarter of 2013) was $1.6 billion, down from Q2’s $2 billion total contract value. According to the organization, this reflects seasonal trends.