Brenda Lovcik
SVP & CFO at Trex
The strategic investments this quarter included onetime railing conversion costs of approximately $1,400,000 and one time start up costs related to Arkansas facility of approximately $1,300,000 Excluding these items, adjusted gross profit was 161,000,000 Selling, general and administrative expenses were $56,000,000 or 14.4% of net sales compared to $51,000,000 or 13.6% of net sales. The increase is primarily due to the additional investments in branding, which we are delivering positive returns as we saw an increase in dealer and contractor searches, product samples sold, and new leads. One time expenses related to the start up of the Arkansas facility and digital transformation activities were approximately $1,100,000 Excluding these one time expenses, SG and A expenses were 55,000,000 Net income was $76,000,000 or $0.71 per diluted share, a decrease of 13% from $87,000,000 or $0.80 per diluted share. Excluding the aforementioned expenses, adjusted net income was $79,000,000 or $0.73 per diluted share. Adjusted EBITDA was $122,000,000 down 6% compared to 130,000,000 From a year to date perspective, net sales for the 2025 totaled $728,000,000 a 3% decrease compared to $750,000,000 in the first six months of twenty twenty four.