Chief Executive Officer
Fiscal 2018 was a year of improvements on a number of fronts for our company. Our financial
results demonstrated significant operating leverage, driving a 38% increase in net income
over year, with top line sales growth in our two largest product lines. New product
developments have positioned the company for additional sales through 2019 and beyond.
Our balance sheet remains strong, which allows us to pursue our ongoing commitment to
deliver shareholder value through our repurchase program, which, in combination with this
year’s strong operational performance, delivered a 48% increase in earnings per share. We
anticipate another year of gains for our product segments in 2019, as well as continued strong
Our consolidated sales increased 6% for 2018 due to gains in both our Building Supply
and Disposable Protective Apparel segments. The Building Supply segment benefited from new
products and a strong
building market, which drove a 6% year over year increase. Sales of
housewrap, including our REX™ Wrap Fortis product that was introduced in the latter part of 2017,
enjoyed a record year in 2018. Synthetic roof underlayment sales were lower in 2018 than in 2017, but with
the introduction of two new products in 2019, discussed below, synthetic roof underlayment
sales should significantly improve. The Disposable Protective Apparel segment
grew by 10% as a result of a strong year with our major international supply chain partner,
as solid demand from our national distributors.
Our product development team has worked both internally and collaboratively with our joint
venture partner to create new materials, which has improved our competitive position in the
markets that we serve. We maintain a long-term commitment to continue advancing our products
to drive our market share.
2 ANNUAL REPORT 2018