Learning the Tricks From Trex's Turnaround

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Aug. 13 (Bloomberg) -- Trex CEO Ron Kaplan discusses the company's turnaround with Pimm Fox on "Taking Stock." (Source: Bloomberg)

Thank you for being here.

We were saying you and i got to meet about four years ago and a lot has happened since then.

Wondering if you could give people an overview for what it has gone through and where it is today.

We came together in january 2000 82 affect the turnaround.

It has been very successful, operationally, administratively.

We brought together a team of operators as of those two marketers.

As you and i have met our sales have grown.

We are selling in 38 countries around the world.

Exporting from the united states.

We have totally reinvigorated the product offering that we guarantee one stain.

-- one stain.

This enabled us to take major market share.

It was originally can thieves to prevent warp.

Now guaranteed not to stain or fade.

These were major rockets to propel the growth.

So we reduced the inventory dramatically by 75%. reduce capital employed, extended the margin 1100 basis points.

As a result, stock price has gone up several hundred percent.

Tell me about trex and the financing the company offers to the people who are looking to put the kinds of repairs into the home.

We do offer financing sponsored by ge credit.

We marry the finance company with the consumer.

To be honest with you, it is met with marginal success.

Most of those deck buyers continue to pay cash.

That is where i wanted to go because i want you to tell me about cash flow.

It has then for digits.

We started deeply in debt and then became debt-free.

We did a $75 million buyback over the past year.

A little revolver we are in seasonally, but we are now funding our own capital expenditures for the new industry we have entered an series -- essentially a debt-free company.

What would you like to see over the next 6-8 months?

That we continue to take market share.

340 million in sales.

Where would you like to go?

We only give out one guidance, 90 million four third quarter, which is up substantially.

So we're on the right path.

Not too concerned about the housing market.

Only five or 10% of sales going into new housing.

90 plus percent is repair and remodeling, people extending the living space of the house, refurbishing.

We have to leave it there,

This text has been automatically generated. It may not be 100% accurate.

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