Interim Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2012

Interim Financial Data (Unaudited) [Abstract]

INTERIM FINANCIAL DATA (Unaudited)

13. INTERIM FINANCIAL DATA (Unaudited)

	Three Months Ended
	December 31, 2012			September 30, 2012 (a)			June 30, 2012		March 31, 2012		December 31, 2011 (b)			September 30, 2011			June 30, 2011		March 31, 2011
	(In thousands, except per share data)
Net sales		46,155			70,819			94,279		96,100		51,462			67,916			78,405		69,006
Gross profit (loss)		13,426			2,146			33,590		35,419		(1,052	)		17,272			23,542		23,029
Net income (loss)		(3,619	)		(14,312	)		8,339		12,311		(18,255	)		(496	)		2,106		5,057
Basic net income (loss) per share	$	(0.22	)	$	(0.86	)	$	0.54	$	0.80	$	(1.18	)	$	(0.03	)	$	0.14	$	0.33
Diluted net income (loss) per share	$	(0.22	)	$	(0.86	)	$	0.48	$	0.74	$	(1.18	)	$	(0.03	)	$	0.12	$	0.30

The Company’s net sales, gross profit and income from operations have historically varied from quarter to quarter. Such variations are principally attributable to seasonal trends in the demand for Trex. The Company has historically experienced lower net sales during the fourth quarter because holidays and adverse weather conditions in certain regions reduce the level of home improvement and new construction activity.

(a) Three months ended September 30, 2012 was materially affected by a pre-tax increase of $20.0 million to the warranty reserve.

(b) Three months ended December 31, 2011 was materially affected by a pre-tax increase of $10.0 million to the warranty reserve.