NCI Building Systems Reports Fourth Quarter and Full Year Fiscal 2012 Results

Fourth Quarter 2012 Highlights -- Operating Income Doubled to $15.4 million on 28% Revenue Growth-- Adjusted EBITDA up 68% to $29.5 million -- Net Income was $6.3 million, or $0.08 per diluted common share -- Bookings Increased 6% in Dollars and 11% in Tonnage

Fiscal 2012 Highlights -- Revenues Increased 20% to $1.2 billion -- Adjusted EBITDA was $76.5 million, up 115% -- Cash Flow from Operations Reached $47.7 million -- Backlog at Fiscal Year-end was $262.2 million, up 22% from 2011 Levels

Dec 04, 2012, 16:01 ET from NCI Building Systems, Inc.

HOUSTON, Dec. 4, 2012 /PRNewswire/ -- NCI Building Systems, Inc. (NYSE: NCS) today reported financial results for the fourth quarter and fiscal year ended October 28, 2012.

Fourth Quarter 2012 Financial Results

"Our fourth quarter performance demonstrated the strength of NCI's market positions across key segments of the metal building industry and the significant operating leverage that has resulted from our restructuring and companywide efficiency programs," said Norman C. Chambers, Chairman, President and Chief Executive Officer. "In the fourth quarter, our total external volume was up 21% on a year-over-year basis, which drove revenue growth of 28%. Over the same time period, new starts in the nonresidential construction market measured in square footage declined 2%, based on McGraw-Hill data. Adjusted EBITDA increased 68% and operating income was up 98%, reflecting the positive impact of increased volume, our ability to leverage prior investments in equipment, systems, and training and a full quarter contribution from Metl-Span, which we acquired in mid-June 2012. While the overall nonresidential construction market remains lackluster, NCI continues to benefit from the competitive advantages of steel versus other building products as well as improved demand from certain sectors of our addressable market, specifically energy, manufacturing, agriculture and retail."

"Each of our business units posted double-digit year-over-year increases in operating profitability, thanks to higher utilization rates and a more efficient infrastructure. Consolidated ESG&A as a percentage of sales declined to 17.5%, the lowest level in the last 16 quarters. In our Buildings group, engineering costs per ton declined 15.6% from last year's levels, emblematic of the progress we have made in increasing this segment's productivity. Bookings increased 6% in dollars and 11% in tonnage in the fourth quarter, and our backlog at the end of the period was $262.2 million, up 22% on a year-over-year basis.

"As expected, our fourth quarter results outpaced those of the third quarter, representing the second consecutive year that we have seen a return to historical shipment patterns. On a sequential basis, fourth quarter revenues increased 21.2%, adjusted EBITDA was up 55.9% and operating income increased 119.3%. Additionally, our seasonally-stronger second half fiscal 2012 performance was markedly better than the comparable period last year, with revenues up 21%, adjusted EBITDA up 50% and operating income up 56.5%."

For the fourth fiscal quarter, sales were $362 million, up 28.4% from the $282 million reported in last year's fourth quarter. Gross profit margin increased to 21.8%, from the 21.0% reported in the year-ago fourth quarter.

Engineering, selling, general and administrative expenses were $63 million, or 17.5% of revenues, compared to $51 million, or 18.1% of revenues in last year's fourth quarter. Operating income reached $15.4 million, nearly twice the $7.8 million reported last year. Adjusted operating income, which excludes restructuring, impairment and acquisition charges, was $15.6 million compared to last year's fourth quarter adjusted operating income of $9.3 million.

Adjusted EBITDA, defined as earnings before interest, taxes, depreciation and amortization, and other cash and non-cash items, in accordance with the Company's bank credit agreement was $29.5 million compared to $17.5 million in last year's fourth quarter.

For the fourth fiscal quarter, the Company reported net income of $6.3 million. In last year's fourth quarter, the Company reported net income of $3.4 million, but incurred a net loss applicable to common shares of $4.4 million, which included the accrual of preferred stock dividends and accretion of $6.5 million and a non-cash beneficial conversion feature charge of $1.4 million.

For this year's fourth fiscal quarter, the Company reported earnings of $0.08 per diluted common share. This compares to an adjusted net loss per diluted common share, excluding the non-cash convertible preferred stock amendment charge and other special items, of $0.11 and a reported net loss per diluted common share of $0.24 in last year's fourth quarter.

The weighted average number of common shares used in the calculation of fourth fiscal quarter 2012 per share amounts was 19.5 million compared to 18.6 million last year. 

Inventory levels increased 19.7% over last year's fourth quarter to $106 million, due to the acquisition of Metl-Span. Annualized inventory turnover improved to 10.1 turns for the fourth quarter compared to 8.9 turns for the fourth quarter last year.

For full year 2012, capital expenditures were $28.2 million; net cash from operating activities was positive $47.7 million.

Fourth Quarter Segment Performance

"Each of our business segments generated year-over-year increases in volumes, revenues, and operating income," Mr. Chambers said.

The Coatings group grew their third party sales in the fourth quarter, as well as substantially completed the refurbishment of their Middletown, Ohio facility, which is expected to begin production in mid to late December 2012. Despite modest sales growth of 2.7%, operating income increased 43% year-over-year as a result of increased operating leverage on intercompany volume, supporting the growth of the Components and Buildings groups. 

In the Components group, third party sales increased 48%, while operating income improved 61%, benefiting from both the Metl-Span acquisition and organic year-over-year growth.

The Buildings group produced a 33% increase in operating profit on third party sales growth of 19% in the fourth quarter, benefiting from higher plant utilization and improved engineering efficiency.

Full Year 2012 Highlights

  • Revenues increased 20% to $1.2 billion from $960 million
  • Adjusted EBITDA was $76.5 million, more than twice the $35.6 million in fiscal 2011
  • Operating Profit was $31.7 million compared to an operating loss of $1.6 million in fiscal 2011
  • Cash Flow from Operations was $47.7 million up from $41.4 million
  • Net debt increased to $193.6 million, following the Metl-Span acquisition

"All three of our operating groups, Coatings, Components and Buildings, generated substantial year-over-year increases across key financial metrics, demonstrating the success of business development initiatives, the returns on investments to improve efficiencies and strength of our integrated business model," Mr. Chambers noted.

Market Commentary

In the fourth quarter of fiscal 2012, low-rise nonresidential construction starts measured in square feet declined by 2% from the comparable period in fiscal 2011, as reported by McGraw-Hill, which is net of an 11% increase in starts in the commercial and industrial sectors.

McGraw-Hill forecasts that nonresidential construction activity measured in square feet will be 744 million in calendar 2013, compared to 703 million in calendar 2012, including commercial and industrial sector growth of 11%. The American Institute of Architect's Architectural Billing Index published for October 2012 was 52.8 and the commercial and industrial component of the Index was 48.0.

Summary/Outlook

"NCI's performance in fiscal 2012 demonstrated the significant operating leverage that is built into our business model as a result of the streamlining of our manufacturing, engineering and supply chain operations that we have implemented over the past four years," Mr. Chambers said.

"Looking ahead, we are confident that NCI will continue to outperform the industry average, benefiting from the forecasted upturn in nonresidential construction starts, as well as company-specific growth initiatives and ongoing efficiencies in each of our business units.

"Based on industry indicators, our backlog levels and the strength of current quoting activity, fiscal 2013 should be a year of significant growth for NCI across all key financial metrics. We expect to report solid year-on-year growth in revenues, adjusted EBITDA, operating income and net income in both the first half and second half of fiscal 2013, despite the near-term effects of Hurricane Sandy, higher costs in our Coatings group during the ramp-up of production at Middletown and a temporary mix shift on our seasonally slowest first quarter performance," Mr. Chambers concluded.

The NCI Building Systems, Inc. fourth quarter conference call is scheduled for December 4, 2012, at 5:00 PM ET. Please call 1-800-860-2442 (International: 412-858-4600) to participate in the call. To listen to a live broadcast of the call over the Internet or to review the archived call, please visit the Company's website at www.ncigroup.com. To access the taped replay, please dial 1-877-344-7529 or 412-317-0088 and the passcode 10020411# when prompted. The Webcast archive and taped replay will both be available two hours after the call through December 11, 2012.

NCI Building Systems, Inc. is one of North America's largest integrated manufacturers of metal products for the nonresidential building industry. NCI is comprised of a family of companies operating manufacturing facilities across the United States and Mexico, with additional sales and distribution offices throughout the United States and Canada.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "guidance," "potential," "anticipate," "plan," "expect," "should," "will," "forecast" or similar expressions are intended to identify forward-looking statements in this press release. These forward-looking statements reflect our current expectations, assumptions and/or beliefs concerning future events. However, these forward-looking statements are subject to a number of risks and uncertainties that may cause the Company's actual performance to differ materially from that projected in such statements. Among the factors that could cause actual results to differ materially include, but are not limited to, our ability to integrate the acquisition of Metl-Span L.L.C. with the Company's business or to realize the anticipated benefits of such acquisition, industry cyclicality and seasonality and adverse weather conditions; ability to service the Company's debt; fluctuations in customer demand and other patterns; raw material pricing and supply; competitive activity and pricing pressure; general economic conditions affecting the construction industry; financial crises or fluctuations in the U.S. and abroad; changes in laws or regulations; and the volatility of the Company's stock price. See also the risk factors in the Company's Annual Report on Form 10-K for the fiscal year ended October 30, 2011 and in its subsequent quarterly reports on Form 10-Q, which identify other important factors, though not necessarily all such factors, that could cause future outcomes to differ materially from those set forth in the forward-looking statements. NCI expressly disclaims any obligation to release publicly any updates or revisions to these forward-looking statements, whether as a result of new information, future events, or otherwise.

 NCI BUILDING SYSTEMS, INC. 

 CONSOLIDATED STATEMENTS OF OPERATIONS 

 (Unaudited) 

 (In thousands, except per share data) 

 For the Three Months Ended 

 For the Fiscal Year Ended 

 October 28, 

 October 30, 

 October 28, 

 October 30, 

2012

2011

2012

2011

 Sales 

$        361,688

$        281,788

$     1,154,010

$        959,577

 Cost of sales, excluding asset impairments (recoveries) 

282,866

221,382

898,001

758,023

 Asset impairments (recoveries) 

13

1,214

(9)

1,121

      Gross profit 

78,809

59,192

256,018

200,433

21.8%

21.0%

22.2%

20.9%

 Engineering, selling, general and administrative expenses 

63,230

51,125

219,340

202,352

 Acquisition-related costs 

153

-

4,989

-

 Restructuring charges (recovery) 

-

283

-

(292)

      Income (loss) from operations 

15,426

7,784

31,689

(1,627)

 Interest income 

12

24

112

127

 Interest expense 

(6,238)

(3,709)

(16,827)

(15,723)

 Debt extinguishment costs, net 

-

-

(6,437)

-

 Other income (expense), net 

449

(290)

460

876

 Income (loss) before income taxes 

9,649

3,809

8,997

(16,347)

 Provision (benefit) for income taxes 

3,379

398

4,084

(6,397)

35.0%

10.4%

45.4%

39.1%

 Net income (loss) 

$            6,270

$            3,411

$            4,913

$           (9,950)

 Convertible preferred stock dividends and accretion 

-

6,454

16,352

28,120

 Convertible preferred stock beneficial conversion feature 

-

1,356

11,878

9,396

 Convertible preferred stock amendment  

-

-

48,803

-

 Net income (loss) applicable to common shares 

$            6,270

$           (4,399)

$         (72,120)

$         (47,466)

 Net Income (Loss) per common share: 

    Basic 

$              0.08

$             (0.24)

$             (3.81)

$             (2.58)

    Diluted 

$              0.08

$             (0.24)

$             (3.81)

$             (2.58)

 Weighted average number of common shares outstanding: 

    Basic 

19,159

18,632

18,932

18,369

    Diluted 

19,481

18,632

18,932

18,369

 Increase in sales 

28.4%

20.3%

 Gross profit percentage 

21.8%

21.0%

22.2%

20.9%

 Engineering, selling, general and administrative 

    expenses percentage 

17.5%

18.1%

19.0%

21.1%

 

 NCI BUILDING SYSTEMS, INC. 

 CONSOLIDATED BALANCE SHEETS 

 (In thousands) 

 October 28, 

 October 30, 

2012

2011

 (Unaudited) 

 ASSETS 

 Cash and cash equivalents 

$           55,158

$           78,982

 Restricted cash 

1,375

2,836

 Accounts receivable, net 

133,475

95,381

 Inventories, net 

106,015

88,531

 Deferred income taxes 

20,741

20,405

 Income tax receivable 

549

1,272

 Prepaid expenses and other 

16,864

14,847

 Investments in debt and equity securities, at market 

4,076

4,483

 Assets held for sale 

2,397

4,874

Total current assets

340,650

311,611

 Property plant and equipment, net 

268,875

208,514

 Goodwill  

74,844

5,200

 Intangible assets, net 

53,028

24,254

 Other assets 

11,000

11,575

 Total assets 

$         748,397

$         561,154

 LIABILITIES AND STOCKHOLDERS' DEFICIT  

 Current portion of long-term debt 

$             2,500

$                    -

 Note payable 

515

292

 Accounts payable 

113,177

88,158

 Accrued compensation and benefits 

43,066

34,616

 Accrued interest 

345

1,309

 Other accrued expenses 

57,368

49,668

 Total current liabilities 

216,971

174,043

 Long-term debt, net of current portion (and unamortized discount of $11,806 for 2012) 

234,444

130,699

 Deferred income taxes 

35,565

7,312

 Other long-term liabilities 

11,995

10,081

 Total long-term liabilities 

282,004

148,092

 Series B cumulative convertible participating preferred stock 

619,950

273,950

 Redeemable common stock  

-

759

 Common stock 

924

924

 Additional paid-in capital 

4,992

237,244

 Accumulated deficit 

(369,850)

(266,896)

 Accumulated other comprehensive loss 

(6,568)

(5,485)

 Treasury stock, at cost 

(26)

(1,477)

 Total stockholders' deficit 

(370,528)

(35,690)

 Total liabilities and stockholders' deficit 

$         748,397

$         561,154

 

NCI BUILDING SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

For the Fiscal Year Ended

 October 28, 2012 

 October 30, 2011 

Cash flows from operating activities:

      Net income (loss)

$                    4,913

$                   (9,950)

      Adjustments to reconcile net income (loss) to net cash provided by 

            operating activities:

            Depreciation and amortization

33,840

33,214

            Share-based compensation expense

9,297

6,908

            Non-cash debt extinguishment costs

6,437

-

            (Gain) loss on sale of property, plant and equipment

(556)

50

            Provision for doubtful accounts

270

1,844

            Provision (benefit) for deferred income taxes

2,177

(6,397)

            Asset impairments (recoveries)

(9)

1,121

      Changes in operating assets and liabilities, net of effect of acquisitions:

            Accounts receivable

(17,098)

(15,329)

            Inventories

(9,108)

(7,145)

            Income tax receivable

1,082

14,382

            Prepaid expenses and other

(2,075)

(247)

            Accounts payable

12,047

17,569

            Accrued expenses

6,255

5,668

            Other, net

250

(251)

Net cash provided by operating activities

47,722

41,437

Cash flows from investing activities:

      Acquisition, net of cash acquired

(140,991)

-

      Capital expenditures

(28,151)

(21,040)

      Proceeds from sale of property, plant and equipment

2,992

583

Net cash used in investing activities

(166,150)

(20,457)

Cash flows from financing activities:

Decrease in restricted cash

1,461

3

Proceeds from ABL Facility

15,098

43

Payments on ABL Facility

(15,096)

(43)

Excess tax benefits from share-based compensation arrangements

2

464

Proceeds from term loan

237,499

-

Payments on term loan

(131,950)

(5,605)

Payments on note payable

(1,536)

(1,543)

Payment of financing costs

(9,399)

(200)

Payment of cash dividends on Convertible Preferred Stock

-

(11,039)

Purchase of treasury stock

(1,529)

(1,477)

Net cash provided by (used in) financing activities

94,550

(19,397)

Effect of exchange rate changes on cash and cash equivalents

54

(20)

Net (decrease) increase in cash and cash equivalents

(23,824)

1,563

Cash and cash equivalents at beginning of period

78,982

77,419

Cash and cash equivalents at end of period

$                  55,158

$                  78,982

-

 

NCI BUILDING SYSTEMS, INC

BUSINESS SEGMENTS

(Unaudited)

(In thousands)

-

Three Months Ended

Three Months Ended

$

%

 October 28, 2012 

 October 30, 2011 

Inc/(Dec)

Change

% of 

% of 

Total

Total

Sales:

Sales

Sales

Metal coil coating

$        57,963

14

$      56,425

16

$       1,538

2.7%

Metal components

180,267

42

127,925

37

52,342

40.9%

Engineered building systems

190,195

44

162,346

47

27,849

17.2%

Total sales

428,425

100

346,696

100

81,729

23.6%

Less: Intersegment sales

66,737

16

64,908

19

1,829

2.8%

Total net sales

$      361,688

84

$    281,788

81

$     79,900

28.4%

-

-

 % of 

 % of 

Total

Total

Operating income (loss):

Sales

Sales

Metal coil coating

$          7,018

12

$        4,903

9

$       2,115

43.1%

Metal components

10,216

6

6,345

5

3,871

61.0%

Engineered building systems

14,182

7

10,698

7

3,484

32.6%

Corporate

(15,990)

-

(14,162)

-

(1,828)

-12.9%

Total operating income (loss) (% of net sales)

$        15,426

4

$        7,784

3

$       7,642

98.2%

-

-

-

Fiscal Year Ended

Fiscal Year Ended

$

%

 October 28, 2012 

 October 30, 2011 

Inc/(Dec)

Change

% of 

% of 

Total

Total

Sales:

Sales

Sales

Metal coil coating

$      210,227

15

$    201,098

17

$       9,129

4.5%

Metal components

534,853

39

437,655

37

97,198

22.2%

Engineered building systems

643,473

46

548,594

46

94,879

17.3%

Total sales

1,388,553

100

1,187,347

100

201,206

16.9%

Less: Intersegment sales

234,543

17

227,770

19

6,773

3.0%

Total net sales

$   1,154,010

83

$    959,577

81

$   194,433

20.3%

-

-

-

 % of 

 % of 

Total

Total

Operating income (loss):

Sales

Sales

Metal coil coating

$        22,322

11

$      17,944

9

$       4,378

24.4%

Metal components

34,147

6

20,643

5

13,504

65.4%

Engineered building systems

37,596

6

13,011

2

24,585

189.0%

Corporate

(62,376)

-

(53,225)

-

(9,151)

-17.2%

Total operating income (loss) (% of net sales)

$        31,689

3

$      (1,627)

(0)

$     33,316

2047.7%

-

-

 

NCI BUILDING SYSTEMS, INC.

BUSINESS SEGMENTS

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS) EXCLUDING SPECIAL CHARGES

FOR THE THREE MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011

(Unaudited)

(In thousands)

 For the Three Months Ended October 28, 2012 

 Metal Coil

Coating 

 Metal

Components 

 Engineered

Building

Systems 

 Corporate 

 Consolidated 

Operating income (loss), GAAP basis

$         7,018

$          10,216

$                   14,182

$    (15,990)

$            15,426

Acquisition-related costs

-

-

-

153

153

Asset impairment

-

13

-

-

13

"Adjusted" operating income (loss) (1)

$         7,018

$          10,229

$                   14,182

$    (15,837)

$            15,592

 For the Three Months Ended October 30, 2011 

 Metal Coil Coating 

 Metal Components 

 Engineered Building Systems 

 Corporate 

 Consolidated 

Operating income (loss), GAAP basis

$         4,903

$            6,345

$                   10,698

$    (14,162)

$              7,784

Asset impairments

-

9

958

247

1,214

Restructuring charges

-

-

283

-

283

"Adjusted" operating income (loss) (1)

$         4,903

$            6,354

$                   11,939

$    (13,915)

$              9,281

(1)  The Company discloses a tabular comparison of "Adjusted" operating income (loss), which is a non-GAAP measure because it is instrumental 

       in comparing the results from period to period.  "Adjusted" operating income (loss) should not be considered in isolation or as a substitute

       for operating income (loss) as reported on the face of our consolidated statement of operations.

 

NCI BUILDING SYSTEMS, INC.

BUSINESS SEGMENTS

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS) EXCLUDING SPECIAL CHARGES

FOR THE FISCAL YEAR ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011

(Unaudited)

(In thousands)

 For the Fiscal Year Ended October 28, 2012 

 Metal Coil

Coating 

 Metal

Components 

 Engineered

Building

Systems 

 Corporate 

 Consolidated 

Operating income (loss), GAAP basis

$       22,322

$          34,147

$                   37,596

$    (62,376)

$            31,689

Acquisition-related costs

-

-

-

4,989

4,989

Actuarial determined general liability self-insurance

     charges (recovery)

-

(1,929)

-

-

(1,929)

Executive retirement

-

-

-

508

508

Asset recovery

-

(9)

-

-

(9)

"Adjusted" operating income (loss) (1)

$       22,322

$          32,209

$                   37,596

$    (56,879)

$            35,248

 For the Fiscal Year Ended October 30, 2011 

 Metal Coil

Coating 

 Metal

Components 

 Engineered

Building

Systems 

 Corporate 

 Consolidated 

Operating income (loss), GAAP basis

$       17,944

$          20,643

$                   13,011

$    (53,225)

$            (1,627)

Asset impairments (recoveries)

-

(84)

958

247

1,121

Restructuring recovery

-

-

(292)

-

(292)

Pre-acquisition contingency adjustment

-

-

252

-

252

Actuarial determined general liability self-insurance

     charges (recovery)

-

2,398

-

-

2,398

"Adjusted" operating income (loss) (1)

$       17,944

$          22,957

$                   13,929

$    (52,978)

$              1,852

(1)  The Company discloses a tabular comparison of "Adjusted" operating income (loss), which is a non-GAAP measure because it is instrumental 

       in comparing the results from period to period.  "Adjusted" operating income (loss) should not be considered in isolation or as a substitute

       for operating income (loss) as reported on the face of our statement of operations.

 

 

NCI BUILDING SYSTEMS, INC.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

COMPUTATION OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,

AMORTIZATION AND OTHER NONCASH ITEMS ("ADJUSTED EBITDA")

(Unaudited)

(In thousands)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Trailing 12 Months

 January 29, 

 April 29, 

 July 29, 

 October 28, 

October 28,

2012

2012

2012

2012

2012

Net income (loss)

$                   589

$                1,321

$               (3,267)

$                6,270

$                             4,913

Add:

     Depreciation and amortization

6,158

5,841

7,248

10,355

29,602

     Consolidated interest expense, net

3,296

3,034

4,159

6,226

16,715

     Provision (benefit) for income taxes

426

942

(663)

3,379

4,084

     Acquisition-related costs

396

1,494

2,946

153

4,989

     Transaction costs

-

-

6,437

-

6,437

     Executive retirement

-

508

-

-

508

     Non-cash charges:

          Stock-based compensation

1,972

2,119

2,090

3,116

9,297

          Asset impairments (recoveries)

-

-

(22)

13

(9)

          Embedded derivative

(5)

(6)

(5)

(5)

(21)

     Adjusted EBITDA (1)

$              12,832

$              15,253

$              18,923

$              29,507

$                           76,515

(13,348)

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Trailing 12 Months

 January 30, 

 May 1, 

July 31,

 October 30, 

 October 30, 

2011

2011

2011

2011

2011

Net income (loss)

$             (12,725)

$               (3,229)

$                2,593

$                3,411

$                            (9,950)

Add:

     Depreciation and amortization

7,236

7,187

7,187

6,753

28,363

     Consolidated interest expense, net

4,177

3,870

3,864

3,685

15,596

     Provision (benefit) from income taxes

(5,009)

(1,786)

-

398

(6,397)

     Cash restructuring charges (recoveries)

-

-

(575)

283

(292)

     Non-cash charges:

          Stock-based compensation

1,685

1,671

1,776

1,776

6,908

          Asset impairments (recoveries)

-

-

(93)

1,214

1,121

          Embedded derivative

(7)

(6)

(6)

(6)

(25)

          Pre-acquisition contingency adjustment

252

-

-

-

252

     Adjusted EBITDA (1)

$               (4,391)

$                7,707

$              14,746

$              17,514

$                           35,576

(1)  The Company's Credit Agreement defines adjusted EBITDA.  Adjusted EBITDA excludes non-cash charges

       for goodwill and other asset impairments and stock compensation as well as certain non-recurring charges.   As such, the historical information is presented in

       accordance with the definition above.  Concurrent with the amendment and restatement of the Term Note facility, the Company entered into an Asset-Backed

       Lending facility which has substantially the same definition of adjusted EBITDA except that the ABL facility caps certain non-recurring charges.  The Company is

       disclosing adjusted EBITDA, which is a non-GAAP measure, because it is used by management and provided to investors to provide comparability of underlying

       operational results.

 

NCI BUILDING SYSTEMS, INC.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

"ADJUSTED" INCOME (LOSS) PER DILUTED COMMON SHARE AND NET INCOME (LOSS) COMPARISON 

(Unaudited)

Fiscal Three Months Ended

Fiscal Year Ended

 October 28, 

 October 30, 

 October 28, 

 October 30, 

2012

2011

2012

2011

Net income (loss) per diluted common share, GAAP basis

$                   0.08

$                    (0.24)

$             (3.81)

$             (2.58)

Convertible preferred stock beneficial conversion feature and amendment 

-

0.07

3.21

0.51

Restructuring charges (recovery), net of taxes

-

0.01

-

(0.01)

Acquisition-related costs, net of taxes

0.00

-

0.21

-

Debt extinguishment costs, net of taxes

-

-

0.21

-

Actuarial determined general liability self-insurance charges (recovery), net of taxes

-

-

(0.06)

0.08

Executive retirement, net of taxes

-

-

0.02

-

Asset impairments (recovery), net of taxes

0.00

0.04

(0.00)

0.04

Gain on embedded derivative, net of taxes

(0.00)

(0.00)

(0.00)

(0.00)

Pre-acquisition contingency adjustment, net of taxes

-

-

-

0.01

"Adjusted" income (loss) per diluted common share (1)

$                   0.08

$                    (0.11)

$             (0.23)

$             (1.96)

Fiscal Three Months Ended

Fiscal Year Ended

 October 28, 

 October 30, 

 October 28, 

 October 30, 

2012

2011

2012

2011

Net income (loss) applicable to common shares, GAAP basis

$                 6,270

$                  (4,399)

$         (72,120)

$         (47,466)

Convertible preferred stock beneficial conversion feature and amendment 

-

1,356

60,681

9,396

Restructuring charges (recovery), net of taxes

-

174

-

(180)

Acquisition-related costs, net of taxes

94

-

3,941

-

Debt extinguishment, net of taxes

-

-

3,965

-

Actuarial determined general liability self-insurance charges (recovery), net of taxes

-

-

(1,188)

1,477

Executive retirement, net of taxes

-

-

313

-

Asset impairments (recovery), net of taxes

8

748

(6)

691

Gain on embedded derivative, net of taxes

(3)

(4)

(13)

(16)

Pre-acquisition contingency adjustment, net of taxes

-

-

-

181

"Adjusted" net income (loss) applicable to common shares (1)

$                 6,369

$                  (2,125)

$           (4,427)

$         (35,917)

 (1)  The Company discloses a tabular comparison of "Adjusted" income (loss) per diluted common share and net loss, which are non-GAAP measures, 

        because they are referred to in the text of our press releases and are instrumental in comparing the results from period to period.  "Adjusted"

        income (loss) per diluted common share and net income (loss) should not be considered in isolation or as a substitute for income (loss) per diluted common share         and net income (loss) as reported on the face of our consolidated statement of operations.

 

 

 

 NCI Building Systems, Inc. 

 Reconciliation of Segment Sales to Third Party Segment Sales (Internal Information) 

(Unaudited)

(In thousands)

%

 4th Qtr 2012 

 4th Qtr 2011 

 Inc/(Dec) 

 Change 

 Metal Coil Coating 

 Total Sales 

$              57,963

14%

$              56,425

16%

$         1,538

3%

 Less:  Intersegment sales 

36,082

35,030

1,052

3%

 Third Party Sales 

21,881

6%

21,395

8%

486

2%

 Operating Income (Loss) 

7,018

32%

4,903

23%

2,115

43%

 Metal Components 

 Total Sales 

180,267

42%

127,925

36%

52,342

41%

 Less:  Intersegment sales 

25,981

23,758

2,223

9%

 Third Party Sales 

154,286

43%

104,167

35%

50,119

48%

 Operating Income (Loss) 

10,216

7%

6,345

6%

3,871

61%

 Engineered Building Systems 

 Total Sales 

190,195

44%

162,346

48%

27,849

17%

 Less:  Intersegment sales 

4,674

6,120

(1,446)

-24%

 Third Party Sales 

185,521

51%

156,226

57%

29,295

19%

 Operating Income (Loss) 

14,182

8%

10,698

7%

3,484

33%

 Consolidated 

 Total Sales 

428,425

100%

346,696

100%

81,729

24%

 Less:  Intersegment sales 

66,737

64,908

1,829

3%

 Third Party Sales 

361,688

100%

281,788

100%

79,900

28%

 Operating Income (Loss) 

$              15,426

4%

$                7,784

3%

$         7,642

98%

 YTD 

 YTD 

%

 4th Qtr 2012 

 4th Qtr 2011 

 Inc/(Dec) 

Change

 Metal Coil Coating 

 Total Sales 

$            210,227

15%

$            201,098

17%

$         9,129

5%

 Less:  Intersegment sales 

129,121

125,704

3,417

3%

 Third Party Sales 

81,106

7%

75,394

8%

5,712

8%

 Operating Income (Loss) 

22,322

28%

17,944

24%

4,378

24%

 Metal Components 

 Total Sales 

534,853

39%

437,655

37%

97,198

22%

 Less:  Intersegment sales 

88,133

83,858

4,275

5%

 Third Party Sales 

446,720

39%

353,797

37%

92,923

26%

 Operating Income (Loss) 

34,147

8%

20,643

6%

13,504

65%

 Engineered Building Systems 

 Total Sales 

643,473

46%

548,594

46%

94,879

17%

 Less:  Intersegment sales 

17,289

18,208

(919)

-5%

 Third Party Sales 

626,184

54%

530,386

55%

95,798

18%

 Operating Income (Loss) 

37,596

6%

13,011

2%

24,585

189%

 Consolidated 

 Total Sales 

1,388,553

100%

1,187,347

100%

201,206

17%

 Less:  Intersegment sales 

234,543

227,770

6,773

3%

 Third Party Sales 

1,154,010

100%

959,577

100%

194,433

20%

 Operating Income (Loss) 

$              31,689

3%

$               (1,627)

0%

$       33,316

2048%

 

SOURCE NCI Building Systems, Inc.



RELATED LINKS

http://www.ncigroup.com