Turns out 2020 was a good year for Azek Co. Inc. to go public.
The maker of plastic composite decking and railing reported its first quarterly results as a public company on Aug. 13 and said net sales for its residential business was up 5.5 percent compared to the same time in 2019, with sales in June alone up 15 percent.
"As the quarter progressed, we saw momentum improve within our residential segment as channels reopened, new construction restarted, stay-at-home orders were eased in certain regions and homeowners continued to invest in home improvement and their outdoor living spaces," CEO Jesse Singh said in written comments.
While the costs related to Azek's initial public offering led to a net loss of $52.1 million for the quarter, sales were strong and look even stronger going forward, the company said. Azek's outlook for the fourth quarter expects sales growth of 12-17 percent.
Azek's stock prices, which debuted at $27.15 on June 12 when public trading began, were at $35.11 on Aug. 13.
Azek's sales growth echoes that of competitor Trex Co. Inc., which reported 7 percent sales growth in its second quarter as consumers invested in home improvement projects.