All launched within the last 18 months, these additions to our portfolio have extended the appeal of Trex products to a broader consumer base, expanding our addressable market opportunity.
Product launches in 2024 include Trexs new color matched fastener system and innovative cable and glass railing systems that add two new specialty options to our premium railing line, continued Mr. Fairbanks.
Our full year performance demonstrates the resilience of Trex-branded products during periods of economic uncertainty and the positive impact of the
Trex continuous improvement program, which were key to the margin improvement achieved in 2023. Throughout the year, we worked closely with our channel partners to optimize inventory levels and lead times to address the dynamic market environment.
Additionally, we increased our investment in sales, marketing, and branding programs, along with new product development to drive our future growth. These expenditures are aligned with our strategy to take full advantage of the strong long-term
secular trends that have made the Outdoor Living category one of the fastest-growing segments of the Repair & Remodel sector, said Mr. Fairbanks.
Fourth Quarter 2023 Results
Fourth quarter 2023 consolidated net sales were $196 million, compared to $192 million reported in the prior-year quarter and 8.4% above Trex
Residential net sales of $181 million in the year ago quarter. The growth in net sales was due primarily to increased volume and the absence of the residual channel inventory drawdown that occurred in the 2022 fourth quarter.
Gross margin was 36.1% in the fourth quarter of 2023 compared, to reported consolidated gross margin of 34.1% and Trex Residential gross margin of 36.1% in
the same quarter last year.
Selling, general and administrative expenses were $43 million, or 21.7% of net sales. This compares to $35 million,
or 18.5% of net sales, in the 2022 fourth quarter. In the 2023 fourth quarter, the Company elevated spending on branding and merchandising related to new products launching in 2024, increased R&D to drive growth and returned to normalized
personnel and incentive costs.
Net income for the 2023 fourth quarter was $22 million, or $0.20 per diluted share, compared to $10 million, or
$0.09 per diluted share, reported in the 2022 fourth quarter. EBITDA was $41 million, compared to $26 million and EBITDA margin was 21.0%, compared to 13.4%.