NCI Building Systems Reports Second Quarter Fiscal 2012 Results

-- Revenues Increased 11% to $250 Million --

-- Adjusted EBITDA Was Up 98% to $15 Million; Net Income Was $1.3 million --

-- Operating Profitability Achieved by All Three Business Segments; Cash Flow from Operations Was $14.2 million --

-- Bookings Increased 39%; Backlog Up 23% to $259 Million --

30 May, 2012, 16:01 ET from NCI Building Systems, Inc.

HOUSTON, May 30, 2012 /PRNewswire/ -- NCI Building Systems, Inc. (NYSE: NCS) today reported financial results for the second quarter ended April 29, 2012.

Second Quarter 2012 Financial Results   

"Our strong second quarter results demonstrated solid execution across each of our business segments and the success of NCI's external and internal initiatives to generate profitable growth in a market that continues to be very challenging," commented Norman C. Chambers, Chairman, President and Chief Executive Officer. "Revenue growth was led by the strong performance of our Buildings and Coating groups and operating profitability benefitted from a more favorable business mix as well as ongoing efficiency improvements in our manufacturing, engineering and supply chain operations." 

"Bookings were up 39% over last year's second quarter, and our backlog reached $259 million, increases of 23% year-over-year and 16% sequentially, both positive indicators as we enter the seasonally stronger second half of fiscal 2012. The velocity in converting our backlog to production continued at high levels in the second quarter, up from both last year's and historical levels.

"In addition to posting much improved financial results for the second quarter that significantly exceeded the rate of market growth as reported by McGraw-Hill, we successfully negotiated two transactions, one that will strengthen our position as a fully-integrated supplier of building products to the nonresidential construction market, and another that eliminates the dividend obligation on our convertible preferred shares. These transactions are aligned with our objective of enhancing NCI's prospects for continued growth and increased profitability as our markets recover," Mr. Chambers said.

For the second quarter, sales were $250.2 million, up 11% from the $225.6 million reported in last year's second quarter. The gross profit margin expanded to 23.2% from 22.5%.

Engineering, selling, general and administrative expenses were $51.6 million, or 20.6% of revenues, compared to $52.7 million, or 23.3% of revenues, in last year's second quarter. Included in this year's ESG&A was an unusual benefit of $1.9 million related to the recovery of self-insured general liability costs previously expended. This unusual benefit was offset by $0.5 million in executive retirement charges, and $1.5 million in costs related to the recently-announced acquisition. The Company reported an operating profit of $4.9 million, a significant improvement over the operating loss of $1.8 million incurred in the comparable 2011 period. Adjusted EBITDA, defined as earnings before interest, taxes, depreciation and amortization, and cash and other non-cash items, in accordance with the Company's credit agreement, reached $15.3 million, up from $7.7 million in last year's second quarter.

For the second quarter of 2012, the Company reported net income of $1.3 million as compared to a net loss of $3.2 million in last year's second quarter. Including the accrual of preferred stock dividends and accretion of $9.7 million and a non-cash beneficial conversion feature charge of $7.9 million, the net loss applicable to common shares was $16.3 million. In last year's second quarter, the Company incurred a net loss applicable to common shares of $9.2 million, which included the accrual of preferred stock dividends and accretion of $6.3 million and a non-cash beneficial conversion feature benefit of $240,000.

The adjusted loss per diluted common share, excluding the non-cash beneficial conversion charge and other special items, was $0.45; the reported net loss per diluted share was $0.86. This compares to an adjusted net loss per diluted share of $0.48 and a reported net loss per diluted share of $0.51 in last year's second quarter. The weighted average number of common shares used in the calculation of second quarter 2012 per share amounts was 18.8 million compared to 18.3 million last year.

Inventory levels decreased 1% from the same period of the prior year to $106.9 million, reflecting similar steel costs and volumes between the two periods. Annualized inventory turnover was 7.2 turns for the second quarter compared to 7.3 turns in the second quarter of last year and 7.9 turns in the first quarter of 2012.

Capital expenditures were $8.1 million; net cash from operating activities was $14.2 million.

Second Quarter Segment Performance

"All three of our business segments posted operating profits in the second quarter, led by the strong recovery of our Buildings group," Mr. Chambers said.

The Coatings group remained focused on building share in their traditional markets and growing their business in new markets. Third party sales increased 15% and operating profit was up 12%. Refurbishment of the new Middletown, Ohio facility is proceeding on schedule, and the plant is expected to begin operating by the end of calendar 2012, providing important access to new geographic markets and enhanced logistical efficiencies for internal coating demands.

In the Components group, strong demand for insulated metal panels and improved conditions in the manufacturing and agricultural markets offset sluggish conditions in certain commercial and industrial sectors. Third party sales increased 3%, while operating income improved 22%, benefitting from an unusual recovery of self-insured general liability costs of $1.9 million.

The Buildings group's revenues increased 15% year-over-year, and operating profit was $6.7 million, compared to the prior year's operating loss of $154,000. Revenue gains were driven by improved demand from the manufacturing, warehousing and retail sectors, and operating profitability reflected an improved mix of higher and lower complexity projects.

Market Commentary

In the second quarter of our fiscal 2012, low-rise nonresidential construction starts measured in square feet decreased by 13.5% from the comparable period in fiscal 2011, as reported by McGraw-Hill.

McGraw-Hill forecasts that nonresidential construction activity measured in square feet will be 2% higher in calendar 2012 compared to calendar 2011. McGraw-Hill projects calendar year 2012 square footage at 690 million, up from 678 million in 2011, with most of the increase taking place in the second half of the calendar year. 

The American Institute of Architect's Architectural Billing Index published for April 2012 was 48.4, but the more relevant commercial and industrial component of the Index was 53.8 and has indicated growth for the last eight months.

Recent Developments

  • On May 2, 2012, the Company announced it had entered into a definitive agreement to purchase Metl-Span LLC, a $170 million revenue insulated panel manufacturer, for $145 million in cash. The transaction is expected to be accretive to NCI's earnings in fiscal 2012, excluding initial acquisition related costs. In connection with the transaction, the Company also secured a new fully committed asset-based lending facility and term loan that will be used with cash on hand to fund the acquisition and refinance and extend maturities on the existing capital structure. On May 24, 2012, the Company was notified that it had passed regulatory review and has been granted early termination of the waiting period under the Hart-Scott-Rodino Act. The Company expects to close the transaction by the end of June 2012.
  • On May 2, 2012, the Company announced it had reached an agreement with the holders of NCI's convertible preferred shares, Clayton, Dubilier & Rice and affiliates (CD&R), to eliminate NCI's quarterly dividend obligation on the preferred shares. In exchange, the Company agreed to make a one-time, non-cash payment of 37,834 additional shares of convertible preferred stock. This payment to CD&R will be reflected in NCI's third quarter 2012 financial statements and will eliminate all future charges relating to "convertible preferred stock dividends and accretion" and the "convertible preferred stock beneficial conversion feature" in subsequent quarters.

Summary/Outlook

"For the first six months of 2012, revenues increased 19% to $494 million; operating income grew 158% to $9.2 million; and Adjusted EBITDA was $28 million, a more than 8-fold increase over last year's levels. First half 2012 demonstrated our ability to capitalize on modest improvements in market conditions to drive double-digit revenue growth and achieve improved operating leverage. We expect our results for the seasonally stronger 2012 second half to be markedly ahead of the comparable period in 2011, benefitting from the initiatives at each of our business units to generate revenue growth and reduce costs," Mr. Chambers concluded.

The NCI Building Systems, Inc. second quarter conference call is scheduled for May 30, 2012, at 5:00 PM ET. Please call 1-412-858-4600 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.ncilp.com. To access the taped replay, please dial 1-412-317-0088 and the passcode 10013303# when prompted. The Webcast archive and taped replay will both be available two hours after the call through June 7, 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 consummate the transactions contemplated in the definitive agreement to purchase Metl-Span, LLC and to realize the anticipated benefits of such acquisition ("Acquisition"), industry cyclicality and seasonality and adverse weather conditions; ability to service the Company's debt, including additional debt to finance the Acquisition; 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 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 Six Months Ended 

April 29,

 May 1, 

April 29,

 May 1, 

2012

2011

2012

2011

 Sales 

$    250,231

$      225,565

$    493,834

$       415,651

 Cost of sales 

192,229

174,752

382,210

331,293

      Gross profit 

58,002

50,813

111,624

84,358

23.2%

22.5%

22.6%

20.3%

 Engineering, selling, general and administrative expenses 

51,564

52,657

100,505

100,338

 Acquisition-related costs 

1,494

-

1,890

-

      Income (loss) from operations 

4,944

(1,844)

9,229

(15,980)

 Interest income 

28

30

56

77

 Interest expense 

(3,062)

(3,900)

(6,386)

(8,124)

 Other income, net 

353

699

379

1,278

 Income (loss) before income taxes 

2,263

(5,015)

3,278

(22,749)

 Provision (benefit) for income taxes 

942

(1,786)

1,368

(6,795)

41.6%

35.6%

41.7%

29.9%

 Net income (loss) 

$        1,321

$        (3,229)

$        1,910

$       (15,954)

 Convertible preferred stock dividends and accretion 

9,744

6,260

16,352

12,490

 Convertible preferred stock beneficial conversion feature 

7,858

(240)

11,878

1,546

 Net loss applicable to common shares 

$    (16,281)

$        (9,249)

$    (26,320)

$       (29,990)

 Loss per common share: 

    Basic 

$        (0.86)

$          (0.51)

$        (1.40)

$           (1.65)

    Diluted 

$        (0.86)

$          (0.51)

$        (1.40)

$           (1.65)

 Weighted average number of common shares outstanding: 

    Basic 

18,832

18,275

18,760

18,215

    Diluted 

18,832

18,275

18,760

18,215

 Increase in sales 

10.9%

18.8%

 Gross profit percentage 

23.2%

22.5%

22.6%

20.3%

 Engineering, selling, general and administrative 

    expenses percentage 

20.6%

23.3%

20.4%

24.1%

 

 NCI BUILDING SYSTEMS, INC. 

 CONSOLIDATED BALANCE SHEETS 

 (In thousands) 

 April 29, 

 October 30, 

2012

2011

 (Unaudited) 

 ASSETS 

 Cash and cash equivalents 

$           73,856

$           78,982

 Restricted cash 

-

2,836

 Accounts receivable, net 

83,051

95,381

 Inventories, net 

106,904

88,531

 Deferred income taxes 

19,313

20,405

 Income tax receivable 

1,591

1,272

 Prepaid expenses and other 

18,820

14,847

 Investments in debt and equity securities, at market 

4,494

4,483

 Assets held for sale 

4,875

4,874

 Total current assets 

312,904

311,611

 Property plant and equipment, net 

211,346

208,514

 Goodwill  

5,200

5,200

 Intangible assets, net 

23,313

24,254

 Other assets 

9,898

11,575

 Total assets 

$         562,661

$         561,154

 LIABILITIES AND STOCKHOLDERS' DEFICIT  

 Note payable 

$             1,648

$                292

 Accounts payable 

85,259

88,158

 Accrued compensation and benefits 

35,382

34,616

 Accrued interest 

340

1,309

 Other accrued expenses 

50,579

49,668

 Total current liabilities 

173,208

174,043

 Long-term debt 

128,499

130,699

 Deferred income taxes 

7,377

7,312

 Other long-term liabilities 

10,070

10,081

 Total long-term liabilities 

145,946

148,092

 Series B cumulative convertible participating preferred stock 

290,304

273,950

 Redeemable common stock  

-

759

 Common stock 

924

924

 Additional paid-in capital 

222,773

237,244

 Accumulated deficit 

(264,986)

(266,896)

 Accumulated other comprehensive loss 

(5,501)

(5,485)

 Treasury stock, at cost 

(7)

(1,477)

 Total stockholders' deficit 

(46,797)

(35,690)

 Total liabilities and stockholders' deficit 

$         562,661

$         561,154

 

NCI BUILDING SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

For the Six Months Ended

 April 29, 2012 

 May 1, 2011 

Cash flows from operating activities:

      Net income (loss)

$           1,910

$      (15,954)

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

            operating activities:

            Depreciation and amortization

14,427

16,850

            Share-based compensation expense

4,093

3,357

            Loss on sale of property, plant and equipment

13

11

            Provision for doubtful accounts

(692)

690

            Provision (benefit) from deferred income taxes

1,147

(6,978)

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

            Accounts receivable

12,561

10,811

            Inventories

(18,373)

(26,176)

            Income tax receivable

169

15,702

            Prepaid expenses and other

(2,972)

(1,133)

            Accounts payable

(2,899)

3,907

            Accrued expenses

656

3,863

            Other, net

(51)

(408)

Net cash provided by operating activities

9,989

4,542

Cash flows from investing activities:

      Capital expenditures

(13,899)

(8,070)

      Proceeds from sale of property, plant and equipment

37

143

Net cash used in investing activities

(13,862)

(7,927)

Cash flows from financing activities:

Decrease (increase) in restricted cash

2,836

(3)

Proceeds from ABL Facility

-

5

Payments on ABL Facility

-

(3)

Excess tax benefits from share-based compensation arrangements

1

464

Payments on term loan

(2,200)

(3,750)

Payments on note payable

(403)

(667)

Payment of financing costs

(50)

(75)

Payment of cash dividends on Convertible Preferred Stock

-

(11,039)

Purchase of treasury stock

(1,510)

(1,477)

Net cash used in financing activities

(1,326)

(16,545)

Effect of exchange rate changes on cash and cash equivalents

73

(80)

Net decrease in cash and cash equivalents

(5,126)

(20,010)

Cash and cash equivalents at beginning of period

78,982

77,419

Cash and cash equivalents at end of period

$         73,856

$        57,409

 

NCI BUILDING SYSTEMS, INC

BUSINESS SEGMENTS

(Unaudited)

(In thousands)

Three Months Ended

Three Months Ended

$

%

 April 29, 2012 

 May 1, 2011 

Inc/(Dec)    

Change

% of 

% of 

Total

Total

Sales:

Sales

Sales

Metal coil coating

$     48,839

16

$       47,927

17

$           912

1.9%

Metal components

106,742

35

103,375

37

3,367

3.3%

Engineered building systems

148,715

49

129,790

46

18,925

14.6%

   Total sales

304,296

100

281,092

100

23,204

8.3%

Less: Intersegment sales

54,065

18

55,527

20

(1,462)

-2.6%

   Total net sales

$    250,231

82

$     225,565

80

$      24,666

10.9%

 % of 

 % of 

Total

Total

Operating income (loss):

Sales

Sales

Metal coil coating

$        4,890

10

$         4,378

9

$           512

11.7%

Metal components

9,018

8

7,400

7

1,618

21.9%

Engineered building systems

6,740

5

(154)

(0)

6,894

4476.6%

Corporate

(15,704)

-

(13,468)

-

(2,236)

-16.6%

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

$        4,944

2

$        (1,844)

(1)

$        6,788

368.1%

Six Months Ended

Six Months Ended

$

%

 April 29, 2012 

 May 1, 2011 

Inc/(Dec)

Change

% of 

% of 

Total

Total

Sales:

Sales

Sales

Metal coil coating

$      97,922

16

$       90,201

17

$        7,721

8.6%

Metal components

212,494

36

193,680

38

18,814

9.7%

Engineered building systems

289,013

48

231,202

45

57,811

25.0%

Total sales

599,429

100

515,083

100

84,346

16.4%

Less: Intersegment sales

105,595

18

99,432

19

6,163

6.2%

    Total net sales

$   493,834

82

$    415,651

81

$      78,183

 

18.8%

 % of 

 % of 

Total

Total

Operating income (loss):

Sales

Sales

Metal coil coating

$     10,192

10

$         7,822

9

$        2,370

30.3%

Metal components

14,559

7

7,753

4

6,806

87.8%

Engineered building systems

14,336

5

(5,564)

(2)

19,900

357.7%

Corporate

(29,858)

-

(25,991)

-

(3,867)

14.9%

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

$        9,229

2

$     (15,980)

(4)

$      25,209

157.8%

 

 

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 April 29, 2012 and May 1, 2011

(Unaudited)

(In thousands)

 For the Three Months Ended April 29, 2012 

 Metal Coil Coating 

 Metal Components 

 Engineered Building Systems 

 Corporate 

 Consolidated 

Operating income (loss), GAAP basis                       

$         4,890

$          9,018

$         6,740

$     (15,704)

$          4,944

Acquisition-related costs

-

-

-

1,494

1,494

Actuarial determined general liability self-insurance

    charges (recovery)

-

(1,929)

-

-

(1,929)

Executive retirement

-

-

-

508

508

"Adjusted" operating income (loss) (1)

$         4,890

$          7,089

$         6,740

$     (13,702)

$          5,017

 For the Three Months Ended May 1, 2011 

 Metal Coil Coating 

 Metal Components 

 Engineered Building Systems 

 Corporate 

 Consolidated 

Operating income (loss), GAAP basis

$         4,378

$          7,400

$          (154)

$     (13,468)

$        (1,844)

Actuarial determined general liability self-insurance

    charges (recovery)

-

1,297

-

-

1,297

"Adjusted" operating income (loss) (1)

$         4,378

$          8,697

$          (154)

$     (13,468)

$           (547)

(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 SIX MONTHS ENDED APRIL 29, 2012 AND MAY 1, 2011 (Unaudited)  (In thousands)

 For the Six Months Ended April 29, 2012 

 Metal Coil Coating 

 Metal Components 

 Engineered Building Systems 

 Corporate 

 Consolidated 

Operating income (loss), GAAP basis 

$       10,192

$        14,559

$         14,336

$  (29,858)

$                9,229

Acquisition-related costs

-

-

-

1,890

1,890

Actuarial determined general liability self-insurance

     charges (recovery)

-

(1,929)

-

-

(1,929)

Executive retirement

-

-

-

508

508

"Adjusted" operating income (loss) (1)              

$       10,192

$        12,630

$         14,336

$  (27,460)

$                9,698

 For the Six Months Ended May 1, 2011 

 Metal Coil Coating 

 Metal Components 

 Engineered Building Systems 

 Corporate 

 Consolidated 

Operating income (loss), GAAP basis

$         7,822

$          7,753

$         (5,564)

$  (25,991)

$            (15,980)

Pre-acquisition contingency adjustment

-

-

252

-

252

Actuarial determined general liability self-insurance

     charges (recovery)

-

2,398

-

-

2,398

"Adjusted" operating income (loss) (1)

$         7,822

$        10,151

$         (5,312)

$  (25,991)

$            (13,330)

(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)

3rd Qtr

4th Qtr

1st Qtr

2nd Qtr

Trailing 12 Months

 July 31, 

 October 30, 

 January 29, 

 April 29, 

April 29,

2011

2011

2012

2012

2012

Net income 

$       2,593

$        3,411

$           589

$        1,321

$                     7,914

Add:

     Depreciation and amortization

7,187

6,753

6,158

5,841

25,939

     Consolidated interest expense, net

3,864

3,685

3,296

3,034

13,879

     Provision (benefit) for income taxes

-

398

426

942

1,766

     Acquisition-related costs

-

-

396

1,494

1,890

    Cash restructuring charges (recovery)

(575)

283

-

-

(292)

     Executive retirement

-

-

-

508

508

     Non-cash charges:

         Stock-based compensation

1,776

1,776

1,972

2,119

7,643

         Asset impairments (recoveries)

(93)

1,214

-

-

1,121

         Embedded derivative

(6)

(6)

(5)

(6)

(23)

     Adjusted EBITDA (1)

$      14,746

$      17,514

$      12,832

$      15,253

$                   60,345

3rd Qtr

4th Qtr

1st Qtr

2nd Qtr

Trailing 12 Months

 August 1, 

 October 31, 

January 30, 

 May 1, 

 May 1, 

2010

2010

2011

2011

2011

Net loss

$       (3,299)

$       (5,436)

$     (12,725)

$       (3,229)

$                  (24,689)

Add:

     Depreciation and amortization

7,457

7,309

7,236

7,187

29,189

     Consolidated interest expense, net 

4,392

4,258

4,177

3,870

16,697

     Benefit from income taxes

(221)

(1,794)

(5,009)

(1,786)

(8,810)

     Cash restructuring charges

551

1,628

-

-

2,179

     Transaction costs

-

(250)

-

-

(250)

     Non-cash charges:

         Stock-based compensation

1,374

1,375

1,685

1,671

6,105

         Asset impairments (recoveries)                      

(64)

221

-

-

157

         Embedded derivative

(7)

(7)

(7)

(6)

(27)

         Pre-acquisition contingency adjustment

-

178

252

-

430

     Adjusted EBITDA (1)

$      10,183

$        7,482

$       (4,391)

$        7,707

$                   20,981

(1)  On October 20, 2009, the Company amended and restated its Term Note facility which 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" LOSS PER DILUTED COMMON SHARE AND NET LOSS COMPARISON (Unaudited)

Fiscal Three Months Ended

Fiscal Six Months Ended

 April 29, 

 May 1, 

 April 29, 

 May 1, 

2012

2011

2012

2011

Loss per diluted common share, GAAP basis

$              (0.86)

$                (0.51)

$            (1.40)

$            (1.65)

Convertible preferred stock beneficial conversion feature

0.42

(0.01)

0.63

0.08

Acquisition-related costs, net of taxes

0.05

-

0.06

-

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

(0.06)

0.04

(0.06)

0.08

Executive retirement, net of taxes

0.02

-

0.02

-

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" loss per diluted common share (1)

$              (0.45)

$                (0.48)

$            (0.75)

$            (1.48)

Fiscal Three Months Ended

Fiscal Six Months Ended

 April 29, 

 May 1, 

 April 29, 

 May 1, 

2012

2011

2012

2011

Net loss applicable to common shares, GAAP basis

$          (16,281)

$              (9,249)

$        (26,320)

$        (29,990)

Convertible preferred stock beneficial conversion feature

7,858

(240)

11,878

1,546

Acquisition-related costs, net of taxes

920

-

1,164

-

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

(1,188)

799

(1,188)

1,477

Executive retirement, net of taxes

313

-

313

-

Gain on embedded derivative, net of taxes

(4)

(4)

(7)

(8)

Pre-acquisition contingency adjustment, net of taxes

-

-

-

181

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

$            (8,382)

$              (8,694)

$        (14,160)

$        (26,794)

 (1) The Company discloses a tabular comparison of "Adjusted" 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" loss per diluted common share and net loss should not be considered in isolation

       or as a substitute for loss per diluted common share and net 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)

%

 2nd Qtr 2012 

 2nd Qtr 2011 

 Inc/(Dec) 

 Change 

 Metal Coil Coating 

 Total Sales 

48,839

16%

47,927

17%

912

2%

 Less:  Intersegment sales 

29,267

30,942

(1,675)

-5%

 Third Party Sales 

19,572

8%

16,985

7%

2,587

15%

 Operating Income (Loss) 

4,890

25%

4,378

26%

512

12%

 Metal Components 

 Total Sales 

106,742

35%

103,375

37%

3,367

3%

 Less:  Intersegment sales 

21,418

20,762

656

3%

 Third Party Sales 

85,324

34%

82,613

37%

2,711

3%

 Operating Income (Loss) 

9,018

11%

7,400

9%

1,618

22%

 Engineered Building Systems 

 Total Sales 

148,715

49%

129,790

46%

18,925

15%

 Less:  Intersegment sales 

3,380

3,823

(443)

-12%

 Third Party Sales 

145,335

58%

125,967

56%

19,368

15%

 Operating Income (Loss) 

6,740

5%

(154)

0%

6,894

4477%

 Consolidated 

 Total Sales 

304,296

100%

281,092

100%

23,204

8%

 Less:  Intersegment sales 

54,065

55,527

(1,462)

-3%

 Third Party Sales 

250,231

100%

225,565

100%

24,666

11%

 Operating Income (Loss) 

4,944

2%

(1,844)

-1%

6,788

368%

 YTD 

 YTD 

%

 2nd Qtr 2012 

 2nd Qtr 2011 

 Inc/(Dec) 

Change

 Metal Coil Coating 

 Total Sales 

97,922

16%

90,201

17%

7,721

9%

 Less:  Intersegment sales 

58,112

56,023

2,089

4%

 Third Party Sales 

39,810

8%

34,178

8%

5,632

16%

 Operating Income (Loss) 

10,192

26%

7,822

23%

2,370

30%

 Metal Components 

 Total Sales 

212,494

36%

193,680

38%

18,814

10%

 Less:  Intersegment sales 

39,874

37,051

2,823

8%

 Third Party Sales 

172,620

35%

156,629

38%

15,991

10%

 Operating Income (Loss) 

14,559

8%

7,753

5%

6,806

88%

 Engineered Building Systems 

 Total Sales 

289,013

48%

231,202

45%

57,811

25%

 Less:  Intersegment sales 

7,609

6,358

1,251

20%

 Third Party Sales 

281,404

57%

224,844

54%

56,560

25%

 Operating Income (Loss) 

14,336

5%

(5,564)

-2%

19,900

358%

 Consolidated 

 Total Sales 

599,429

100%

515,083

100%

84,346

16%

 Less:  Intersegment sales 

105,595

99,432

6,163

6%

 Third Party Sales 

493,834

100%

415,651

100%

78,183

19%

 Operating Income (Loss) 

9,229

2%

(15,980)

-4%

25,209

158%

SOURCE NCI Building Systems, Inc.



RELATED LINKS

http://www.ncilp.com