HOUSTON, Aug. 28, 2018 /PRNewswire/ -- NCI Building
Systems, Inc. (NYSE: NCS) ("NCI" or the "Company")
today reported financial results for its third fiscal quarter ended
July 29, 2018.
Third Quarter 2018 Financial and Operational
Highlights:
- Sales rose 16.9% to $548.5
million for the quarter, compared to $469.4 million in the prior year's third
quarter
- Gross profit was $133.4 million
or 24.3% of sales, compared to $115.0
million or 24.5% of sales, in the prior year's third
quarter
- Net income was $36.0 million for
the quarter, compared to $18.2
million in the prior year's third quarter. Adjusted Net
Income was $33.9 million this
quarter, compared to $19.6 million in
the prior year's third quarter
- Net income per diluted common share for the quarter was
$0.54, compared to $0.25 in the prior year's third quarter. Adjusted
Net Income was $0.51 per diluted
common share, compared to $0.27 in
the prior year's third quarter
- Adjusted EBITDA was $63.3
million, or 11.5% of revenues, for the quarter, compared to
Adjusted EBITDA of $50.4 million, or
10.7% of revenues, in the prior year's third quarter
- Total consolidated backlog increased to $650.9 million, up 12.1% year-over-year
Commenting on the quarter, Donald R.
Riley, NCI's President and Chief Executive Officer, said,
"Our third quarter results continue to demonstrate our commitment
to maintaining commercial discipline across all of our businesses
in an environment of increasing input costs. Led by a solid
performance from our Buildings and Components segments, we are
pleased to have seen volume increases and the successful execution
of our adjacency strategy for Insulated Metal Panels and doors.
NCI's backlog and bookings continue to support our favorable
outlook for fiscal 2018 and beyond. We believe we are well
positioned to finish 2018 with positive year-over-year improvement
in both revenue and Adjusted EBITDA."
Third Quarter 2018 Results
Sales in the third quarter of fiscal 2018 increased to
$548.5 million, up 16.9%, from
$469.4 million in last year's third
fiscal quarter, primarily due to continued commercial discipline in
the pass-through of higher material costs across all the segments,
combined with volume growth in both the Engineered Metal Building
and Metal Components segments.
Gross profit increased 16.0% to $133.4
million in the quarter, compared to $115.0 million in the third quarter of fiscal
2017 and was up sequentially from $104.1
million in the second quarter of fiscal 2018. Gross profit
margins were 24.3% for the third quarter of fiscal 2018, compared
to 24.5% in the third quarter of fiscal 2017 and were up
sequentially 150 basis points from 22.8% in the second quarter of
fiscal 2018. Gross margins in the third quarter were lower than the
third quarter of the prior year primarily as a result of product
mix in the IMP segment.
Engineering, selling, general and administrative ("ESG&A")
expenses were $79.0 million for the
quarter, compared to $76.3 million in
the prior year's third fiscal quarter. As a percentage of revenues,
ESG&A expenses were 14.4% in the fiscal 2018 third quarter
compared to 16.3% in the prior year's third fiscal quarter. The
year-over-year increase in ESG&A expenses is primarily in
support of increase sales volumes during the period.
Operating income for the quarter was $54.5 million, compared to $34.1 million in the third quarter 2017. Adjusted
Operating Income, a non-GAAP financial measure which excludes
certain special items, increased 42.4% to $52.0 million in the current quarter, compared to
$36.5 million in the same period last
year.
Net income applicable to common shares in the quarter was
$35.8 million, or $0.54 per diluted common share, compared to net
income of $18.1 million, or
$0.25 per diluted common share in the
prior year's third quarter. Net income was impacted by the
following special items: a $4.7
million gain on insurance recovery; a $1.0 million gain of the disposition of a
non-strategic product line and a reduction of $0.4 million of restructuring and impairment
charges, partially offset by a $3.6
million charge related to strategic development and
acquisition related costs and $0.7
million associated tax effect of these items. Excluding the
impact of these special items, third quarter 2018 Adjusted Net
Income, a non-GAAP measure, was $33.9
million, or $0.51 per diluted
common share, compared to $19.6
million, or $0.27 per diluted
common share, in the prior year's third quarter.
Adjusted EBITDA, a non-GAAP measure, defined in accordance with
the Company's credit agreement as earnings before interest, taxes,
depreciation and amortization, and certain other cash and non-cash
items, was $63.3 million this
quarter, compared to $50.4 million in
the prior year's third quarter. Please see the reconciliation of
Adjusted Operating Income, Adjusted Net Income and Adjusted EBITDA
in the accompanying financial tables.
Cash and cash equivalents at the end of the third quarter were
$43.3 million, compared to
$45.9 million at the end of the third
quarter of fiscal 2017. Cash and cash equivalents increased
sequentially by $8.0 million from
$35.3 million at the end of the
second quarter of fiscal 2018 due to improved working capital
management year-over-year, lower taxes and lower interest rates.
NCI's net debt leverage ratio (net debt/Adjusted EBITDA) at the end
of the third quarter was 1.95x. As of July
29, 2018, the Company's $150.0
million asset-based lending (ABL) facility remained
undrawn.
Third Quarter 2018 Segment Performance
Sales in the Engineered Building Systems segment were
$230.1 million in the third quarter
of fiscal 2018, compared to $191.9
million in the prior year period, increasing primarily as a
result of commercial discipline passing through higher input costs
and increased tonnage volumes. Operating income increased 62.5% to
$24.3 million this quarter, compared
to $14.9 million in the prior year's
third quarter. Adjusted Operating Income, a non-GAAP measure,
increased 50.0% to $23.8 million this
quarter, compared to $15.9 million in
the third quarter 2017. Operating margins increased as a result of
reduced ESG&A costs and an emphasis on order profitability over
volumes.
The Metal Components segment generated $186.4 million in sales during the quarter, an
increase of 12.1% from $166.3 million
in the prior year's third quarter, led by the disciplined
pass-through of increasing input costs and higher external volumes
in the segment. Operating income was $28.7
million in the third fiscal quarter of 2018, compared to
$23.3 million in the same period last
year. Adjusted Operating Income was $28.7
million in the quarter, compared to $23.2 million in the prior year's third quarter.
The Metal Components segment's operating margins increased as a
result of improved operating leverage on higher external
volumes.
The Insulated Metal Panels ("IMP") segment generated
$133.7 million in sales during the
quarter, an increase of 11.7% from $119.7
million in the prior year's third quarter, as a result of
higher external volumes and commercial discipline emphasizing
project profitability over volumes. Operating income was
$17.9 million for the quarter,
compared to $11.5 million in the
third quarter of 2017. Adjusted Operating Income was $12.1 million, compared to $11.7 million in the same period last year. The
IMP segment's Adjusted Operating Income Margins decreased from the
prior year primarily as a result of a change in product mix.
Sales in the Metal Coil Coating segment were $116.4 million during the third quarter of fiscal
2018, an increase of 22.2% from $95.3
million in the prior year's third quarter, as a result of
higher volumes in package sales and the pass-through of rising
material costs. Operating income and Adjusted Operating Income were
both $9.1 million in the third
quarter of fiscal 2018 compared to $7.1
million in the third quarter of fiscal 2017, respectively.
Operating margins in the Metal Coil Coating segment improved as a
result of lower ESG&A costs and commercial discipline.
Market Commentary
The key leading indicators that NCI follows and that typically
have the most meaningful correlation to nonresidential low-rise
construction starts are the American Institute of Architects'
("AIA") Architecture Mixed Use Index, the Dodge Residential single
family starts and the Conference Board Leading Economic Index
("LEI"). Historically, there has been a very high correlation to
the volume of nonresidential low-rise construction starts when the
three leading indicators are combined and then seasonally adjusted.
Based on the combined forward projection of these metrics, and
assuming a 9- to 14-month historical lag for each metric, the
Company continues to expect new nonresidential low-rise
construction starts in the Company's addressable market for its
legacy businesses to grow 2.0% to 4.0% in fiscal 2018.
Guidance
Looking ahead, NCI's key economic indicators are tracking to
expectation and year-over-year growth in both bookings and backlog
support the Company's favorable outlook for fiscal 2018. For the
fourth quarter of fiscal 2018, NCI expects revenues to be in the
range of $550 to $570 million and Adjusted EBITDA to be in the
range of $60 to $70 million.
The Company has provided additional detailed financial guidance
in the quarterly supplemental presentation that can be found at
www.ncibuildingsystems.com under the "Investors" section.
Recent Developments
On July 17, 2018, NCI entered into
an Agreement and Plan of Merger (the "Merger Agreement") with Ply
GemParent, LLC, a Delaware limited
liability company ("Ply Gem"), and for certain limited purposes set
forth in the Merger Agreement, Clayton, Dubilier & Rice, LLC, a
Delaware limited liability company
(the "Sponsor"). Pursuant to the terms of the Merger Agreement, at
the closing of the merger, Ply Gem will be merged with and into the
Company with the Company continuing its existence as a Delaware corporation (the "Merger"). At the
closing of the Merger, all of Ply Gem's equity interests (the "Ply
Gem LLC Interests") as of immediately prior to the closing of the
Merger will be converted into the right of the holders of the Ply
Gem LLC Interests (the "Ply Gem Holders") to receive, in the
aggregate with respect to all such Ply Gem LLC Interests, 58.7
million shares of NCI common stock, par value $0.01 per share ("Common Stock") (collectively,
the "Aggregate Merger Consideration"), with each Ply Gem Holder
being entitled to receive its pro rata share of the Aggregate
Merger Consideration. The shares of NCI's Common Stock outstanding
prior to the Merger will remain outstanding after the closing of
the Merger. Upon the close of the Merger, the pre-Merger NCI
shareholders will own approximately 53% of the Company's common
equity, with the Ply Gem Holders owning approximately 47%.
A preliminary proxy detailing the Merger was filed with the
Securities and Exchange Commission (the "SEC") on August 9, 2018. The parties expect the Merger to
close in the fourth calendar quarter of 2018, subject to approval
by NCI shareholders and customary conditions, including regulatory
approvals.
On August 28, 2018 Ply Gem
announced it has entered into an agreement with Andersen
Corporation to acquire the Silver Line vinyl window and patio door
division, which had 2017 annual revenues of more than $440 million. The transaction, valued at
approximately $190 million, aligns
with Ply Gem's strategy of driving growth in revenues and earnings
in part through targeted acquisitions of highly complementary
businesses. Based upon 2018 estimated Adjusted EBITDA and giving
effect to anticipated cost savings and synergies, the transaction
is expected to result in a purchase price multiple of 4.4x and will
have a neutral impact on the leverage ratio of the pro forma NCI
and Ply Gem combination.
Conference Call Information
The NCI Building Systems, Inc. third quarter fiscal 2018
conference call is scheduled for Wednesday,
August 29, 2018, at 9:00 a.m.
ET (8:00 a.m. CT). Please dial
1-412-902-0003 or 1-877-407-0672 (toll-free) 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.ncibuildingsystems.com. To access the taped telephone
replay, please dial 1-201-612-7415 or 1-877-660-6853 (toll-free)
and the passcode 13681318# when prompted. The taped replay will be
available two hours after the call through September 12, 2018. A replay of the webcast will
be available on the Company's website under the Event Calendar,
Calls & Webcast section of the Investor Relations page of the
NCI website for approximately 90 days.
About NCI Building Systems
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, Canada and
Mexico with additional sales and
distribution offices throughout the
United States and Canada.
For more information visit www.ncibuildingsystems.com.
Contact:
K. Darcey Matthews
Vice President, Investor Relations
281-897-7785
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Words such as "believe," "anticipate," "guidance," "plan,"
"potential," "expect," "should," "will," "forecast" and similar
expressions are forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements reflect our
current expectations, assumptions and/or beliefs concerning future
events. As a result, these forward-looking statements rely on a
number of assumptions, forecasts, and estimates and, therefore,
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. Such
forward-looking statements may include, but are not limited to,
statements concerning our market commentary and expectations for
new nonresidential low-rise construction starts in fiscal 2018 and
our financial outlook and guidance, including the fourth quarter
fiscal 2018 forecasted revenues and Adjusted EBITDA and other
consolidated financial performance guidance. Among the factors that
could cause actual results to differ materially include, but are
not limited to, risks and uncertainties relating to the Merger,
including the possibility that the Merger does not close when
expected or at all because the conditions to closing are not
satisfied on a timely basis or at all; potential adverse reactions
or changes to business or employee relationships, including those
resulting from the announcement or completion of the Merger;
diversion of management's attention from ongoing business
operations and opportunities as a result of the pending Merger; our
ability to secure stockholder and regulatory approvals for the
Merger in a timely manner or on the terms desired or anticipated;
retention and replacement of key personnel in connection with the
pendency of the Merger; industry cyclicality and seasonality;
adverse weather conditions; challenging economic conditions
affecting the nonresidential construction industry; volatility in
the U.S. economy and abroad, generally, and in the credit markets;
our substantial indebtedness and our ability to incur substantially
more indebtedness; our ability to generate the significant cash
flow required to service or refinance our existing debt, and obtain
future financing; our ability to comply with the financial tests
and covenants in our existing and future debt obligations;
operational limitations or restrictions in connection with our
debt; increases in interest rates; recognition of asset impairment
charges; commodity price increases and/or limited availability of
raw materials, including steel; our ability to make strategic
acquisitions accretive to earnings; retention and replacement of
key personnel; our ability to carry out our restructuring plans and
to fully realize the expected cost savings; enforcement and
obsolescence of intellectual property rights; fluctuations in
customer demand; costs related to environmental clean-ups and
liabilities; competitive activity and pricing pressure; increases
in energy prices; volatility of the price of our Common Stock; the
dilutive effect on the Company's common stockholders of potential
sales of Common Stock held by our sponsor; substantial governance
and other rights held by our sponsor; breaches of our information
system security measures and damage to our major information
management systems; hazards that may cause personal injury or
property damage, thereby subjecting us to liabilities and possible
losses, which may not be covered by insurance; changes in laws or
regulations, including the Dodd-Frank Act; the timing and amount of
our stock repurchases; and costs and other effects of legal and
administrative proceedings, settlements, investigations, claims and
other matters. See also the "Risk Factors" in the Company's Annual
Report on Form 10-K for the fiscal year ended October 29, 2017, and other risks described in
documents subsequently filed by the Company from time to time with
the SEC, 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. The Company 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
|
(In
thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Three
Months Ended
|
|
Fiscal Nine Months
Ended
|
|
July
29,
|
|
July
30,
|
|
July
29,
|
|
July
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Sales
|
$
548,525
|
|
$
469,385
|
|
$
1,426,943
|
|
$
1,281,552
|
Cost of
sales
|
415,124
|
|
354,416
|
|
1,097,542
|
|
981,793
|
Gross
profit
|
133,401
|
|
114,969
|
|
329,401
|
|
299,759
|
|
24.3%
|
|
24.5%
|
|
23.1%
|
|
23.4%
|
|
|
|
|
|
|
|
|
Engineering, selling,
general and administrative expenses
|
79,039
|
|
76,309
|
|
228,231
|
|
220,473
|
Intangible asset
amortization
|
2,412
|
|
2,405
|
|
7,237
|
|
7,215
|
Restructuring and
impairment charges, net
|
(439)
|
|
1,009
|
|
1,143
|
|
3,587
|
Strategic development
and acquisition related costs
|
3,642
|
|
1,297
|
|
5,503
|
|
1,778
|
(Gain) loss on
disposition of business
|
(1,013)
|
|
-
|
|
5,673
|
|
-
|
Gain on insurance
recovery
|
(4,741)
|
|
(148)
|
|
(4,741)
|
|
(9,749)
|
Income from
operations
|
54,501
|
|
34,097
|
|
86,355
|
|
76,455
|
|
|
|
|
|
|
|
|
Interest
income
|
48
|
|
20
|
|
118
|
|
164
|
Interest
expense
|
(4,572)
|
|
(7,373)
|
|
(16,913)
|
|
(21,738)
|
Foreign exchange
(loss) gain
|
(258)
|
|
985
|
|
(92)
|
|
1,035
|
Loss on
extinguishment of debt
|
-
|
|
-
|
|
(21,875)
|
|
-
|
Other income,
net
|
345
|
|
337
|
|
1,072
|
|
1,045
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
50,064
|
|
28,066
|
|
48,665
|
|
56,961
|
Provision for income
taxes
|
14,078
|
|
9,845
|
|
13,114
|
|
19,727
|
|
28.1%
|
|
35.1%
|
|
26.9%
|
|
34.6%
|
|
|
|
|
|
|
|
|
Net
income
|
35,986
|
|
18,221
|
|
35,551
|
|
37,234
|
|
|
|
|
|
|
|
|
Net income allocated
to participating securities
|
(221)
|
|
(102)
|
|
(248)
|
|
(240)
|
|
|
|
|
|
|
|
|
Net income applicable
to common shares
|
$
35,765
|
|
$
18,119
|
|
$
35,303
|
|
$
36,994
|
|
|
|
|
|
|
|
|
Check
|
|
|
|
|
|
|
|
Income per common
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.54
|
|
$
0.26
|
|
$
0.53
|
|
$
0.52
|
Diluted
|
$
0.54
|
|
$
0.25
|
|
$
0.53
|
|
$
0.52
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
66,335
|
|
71,047
|
|
66,361
|
|
70,973
|
Diluted
|
66,438
|
|
71,183
|
|
66,477
|
|
71,134
|
|
|
|
|
|
|
|
|
Increase in
sales
|
16.9%
|
|
1.5%
|
|
11.3%
|
|
6.4%
|
|
|
|
|
|
|
|
|
Engineering, selling,
general and administrative expenses percentage
|
14.4%
|
|
16.3%
|
|
16.0%
|
|
17.2%
|
NCI BUILDING
SYSTEMS, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
July
29,
|
|
October
29,
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
43,322
|
|
$
65,658
|
|
Restricted
cash
|
180
|
|
136
|
|
Accounts
receivable, net
|
211,098
|
|
199,897
|
|
Inventories,
net
|
260,879
|
|
198,296
|
|
Income taxes
receivable
|
1,171
|
|
3,617
|
|
Investments in
debt and equity securities, at market
|
5,785
|
|
6,481
|
|
Prepaid
expenses and other
|
35,859
|
|
31,359
|
|
Assets held for
sale
|
7,272
|
|
5,582
|
|
|
Total current
assets
|
565,566
|
|
511,026
|
|
|
|
|
|
|
|
Property, plant
and equipment, net
|
230,851
|
|
226,995
|
|
Goodwill
|
148,291
|
|
148,291
|
|
Intangible
assets, net
|
129,933
|
|
137,148
|
|
Deferred income
taxes
|
1,701
|
|
2,544
|
|
Other assets,
net
|
5,352
|
|
5,108
|
|
|
Total
assets
|
$
1,081,694
|
|
$
1,031,112
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion
of long-term debt
|
$
4,150
|
|
$
-
|
|
Note
payable
|
994
|
|
440
|
|
Accounts
payable
|
179,700
|
|
147,772
|
|
Accrued
compensation and benefits
|
58,454
|
|
59,189
|
|
Accrued
interest
|
1,488
|
|
6,414
|
|
Accrued income
taxes
|
7,925
|
|
-
|
|
Other accrued
expenses
|
106,204
|
|
102,233
|
|
|
Total current
liabilities
|
358,915
|
|
316,048
|
|
|
|
|
|
|
|
Long-term debt,
net of deferred financing costs of $5,971 and
$6,857
|
403,842
|
|
387,290
|
|
Deferred income
taxes
|
1,740
|
|
4,297
|
|
Other long-term
liabilities
|
18,111
|
|
18,230
|
|
|
Total long-term
liabilities
|
423,693
|
|
409,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
663
|
|
687
|
|
Additional
paid-in capital
|
521,059
|
|
562,277
|
|
Accumulated
deficit
|
(213,846)
|
|
(248,046)
|
|
Accumulated
other comprehensive loss, net
|
(7,623)
|
|
(7,531)
|
|
Treasury stock,
at cost
|
(1,167)
|
|
(2,140)
|
|
|
Total
stockholders' equity
|
299,086
|
|
305,247
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
1,081,694
|
|
$
1,031,112
|
NCI BUILDING
SYSTEMS, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Fiscal Nine Months
Ended
|
|
July
29,
|
|
July
30,
|
|
2018
|
|
2017
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
35,551
|
|
$
37,234
|
Adjustments to
reconcile net income to net cash from operating
activities
|
|
|
|
Depreciation and amortization
|
30,974
|
|
30,656
|
Amortization of deferred financing costs
|
1,140
|
|
1,398
|
Loss on extinguishment of debt
|
21,875
|
|
-
|
Share-based compensation expense
|
8,909
|
|
8,146
|
Gain on insurance recovery
|
(4,741)
|
|
(9,749)
|
Loss on disposition of business, net
|
5,092
|
|
-
|
(Gains) losses on assets, net
|
(875)
|
|
438
|
Provision for doubtful accounts
|
(177)
|
|
1,145
|
(Benefit) provision for deferred income taxes
|
(1,676)
|
|
70
|
Changes in operating
assets and liabilities, net of effect of acquisitions and
dispositions:
|
|
|
|
Accounts receivable
|
(13,512)
|
|
(8,559)
|
Inventories
|
(64,882)
|
|
(25,909)
|
Income taxes
|
2,446
|
|
(1,284)
|
Prepaid expenses and other
|
(3,686)
|
|
1,069
|
Accounts payable
|
34,567
|
|
(22,212)
|
Accrued expenses
|
6,088
|
|
(10,499)
|
Other, net
|
(185)
|
|
(1,347)
|
|
|
|
|
Net cash provided by
operating activities
|
56,908
|
|
597
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(34,867)
|
|
(15,629)
|
Proceeds from sale of
property, plant and equipment
|
6,338
|
|
2,533
|
Business disposition,
net
|
(1,426)
|
|
-
|
Proceeds from
insurance
|
4,741
|
|
8,593
|
|
|
|
|
Net cash used in
investing activities
|
(25,214)
|
|
(4,503)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
(Deposit) refund of restricted cash
|
(44)
|
|
96
|
Proceeds from stock options
exercised
|
1,279
|
|
1,195
|
Proceeds from ABL facility
|
85,000
|
|
35,000
|
Payments on ABL
facility
|
(85,000)
|
|
(35,000)
|
Proceeds from term loan
|
415,000
|
|
-
|
Payments on term
loan
|
(145,184)
|
|
(10,180)
|
Payments on senior notes
|
(265,470)
|
|
-
|
Payments on note
payable
|
(1,245)
|
|
(1,096)
|
Payments of financing costs
|
(6,521)
|
|
-
|
Payments related to tax
withholding for share-based compensation
|
(5,048)
|
|
(2,389)
|
Purchases of treasury stock
|
(46,705)
|
|
(3,533)
|
|
|
|
|
Net cash used in
financing activities
|
(53,938)
|
|
(15,907)
|
Effect of exchange
rate changes on cash and cash equivalents
|
(92)
|
|
333
|
Net decrease in cash
and cash equivalents
|
(22,336)
|
|
(19,480)
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
65,658
|
|
65,403
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
43,322
|
|
$
45,923
|
NCI BUILDING
SYSTEMS, INC.
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATIONS
|
ADJUSTED NET
INCOME PER DILUTED COMMON SHARE AND NET INCOME
COMPARISON
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Fiscal Three
Months Ended
|
|
Fiscal Nine
Months Ended
|
|
July
29,
|
July
30,
|
|
July
29,
|
July
30,
|
|
2018
|
2017
|
|
2018
|
2017
|
Net income per
diluted common share, GAAP basis
|
$
0.54
|
$
0.25
|
|
$
0.53
|
$
0.52
|
Loss on
extinguishment of debt
|
-
|
-
|
|
0.33
|
-
|
(Gain) loss on
disposition of business
|
(0.02)
|
-
|
|
0.09
|
-
|
Restructuring
and impairment charges, net
|
(0.01)
|
0.01
|
|
0.01
|
0.05
|
Strategic
development and acquisition related costs
|
0.06
|
0.02
|
|
0.08
|
0.02
|
Acceleration
of CEO retirement benefits
|
-
|
-
|
|
0.07
|
-
|
Gain on
insurance recovery
|
(0.07)
|
0.00
|
|
(0.07)
|
(0.14)
|
Other,
net
|
-
|
0.00
|
|
0.00
|
0.01
|
Tax effect of
applicable non-GAAP adjustments (1)
|
0.01
|
(0.01)
|
|
(0.14)
|
0.02
|
Adjusted net income
per diluted common share (2)
|
$
0.51
|
$
0.27
|
|
$
0.90
|
$
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Three
Months Ended
|
|
Fiscal Nine Months
Ended
|
|
July
29,
|
July
30,
|
|
July
29,
|
July
30,
|
|
2018
|
2017
|
|
2018
|
2017
|
Net income applicable
to common shares, GAAP basis
|
$
35,765
|
$
18,119
|
|
$
35,303
|
$
36,994
|
Loss on
extinguishment of debt
|
-
|
-
|
|
21,875
|
-
|
(Gain) loss on
disposition of business
|
(1,013)
|
-
|
|
5,673
|
-
|
Restructuring
and impairment charges, net
|
(439)
|
1,009
|
|
1,143
|
3,587
|
Strategic
development and acquisition related costs
|
3,642
|
1,297
|
|
5,503
|
1,778
|
Acceleration
of CEO retirement benefits
|
-
|
-
|
|
4,600
|
-
|
Gain on
insurance recovery
|
(4,741)
|
(148)
|
|
(4,741)
|
(9,749)
|
Other,
net
|
-
|
235
|
|
(323)
|
563
|
Tax effect of
applicable non-GAAP adjustments (1)
|
696
|
(933)
|
|
(9,296)
|
1,490
|
Adjusted net income
applicable to common shares (2)
|
$
33,910
|
$
19,579
|
|
$
59,737
|
$
34,663
|
|
(1) The
Company calculated the tax effect of non-GAAP adjustments by
applying the applicable statutory tax rate for the period to each
applicable non-GAAP item.
|
(2) The
Company discloses a tabular comparison of Adjusted net income per
diluted common share and Adjusted net income applicable to common
shares, 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 net income per diluted
common share and Adjusted net income applicable to common shares
should not be considered in isolation or as a substitute for net
income per diluted common share and net income applicable to common
shares as reported on the face of our consolidated statements of
operations.
|
NCI BUILDING
SYSTEMS, INC.
|
Business
Segments
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Three
Months Ended
|
|
|
|
|
Fiscal Nine Months
Ended
|
|
|
|
|
July
29,
|
|
|
July
30,
|
|
|
|
|
July
29,
|
|
|
July
30,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of
Total
Sales
|
|
|
% of
Total
Sales
|
|
%
Change
|
|
|
% of
Total
Sales
|
|
|
% of
Total
Sales
|
|
%
Change
|
Total
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Building
Systems
|
$
230,098
|
35
|
|
$
191,910
|
33
|
|
19.9%
|
|
$
554,302
|
32
|
|
$
505,797
|
33
|
|
9.6%
|
Metal
Components
|
186,421
|
28
|
|
166,305
|
29
|
|
12.1%
|
|
501,709
|
29
|
|
455,373
|
29
|
|
10.2%
|
Insulated Metal
Panels
|
133,740
|
20
|
|
119,730
|
21
|
|
11.7%
|
|
357,947
|
21
|
|
317,862
|
21
|
|
12.6%
|
Metal Coil
Coating
|
116,440
|
17
|
|
95,261
|
17
|
|
22.2%
|
|
299,973
|
18
|
|
270,330
|
17
|
|
11.0%
|
Total sales
|
666,699
|
100
|
|
573,206
|
100
|
|
16.3%
|
|
1,713,931
|
100
|
|
1,549,362
|
100
|
|
10.6%
|
Less: Intersegment
sales
|
(118,174)
|
18
|
|
(103,821)
|
18
|
|
13.8%
|
|
(286,988)
|
17
|
|
(267,810)
|
17
|
|
7.2%
|
Total net
sales
|
$
548,525
|
82
|
|
$
469,385
|
82
|
|
16.9%
|
|
$
1,426,943
|
83
|
|
$
1,281,552
|
83
|
|
11.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External
Sales
|
|
% of
Sales
|
|
|
% of
Sales
|
|
|
|
|
% of
Sales
|
|
|
% of
Sales
|
|
|
Engineered Building
Systems
|
$
218,614
|
40
|
|
$
182,164
|
39
|
|
20.0%
|
|
$
524,038
|
37
|
|
$
481,641
|
38
|
|
8.8%
|
Metal
Components
|
165,697
|
30
|
|
140,639
|
30
|
|
17.8%
|
|
440,886
|
31
|
|
389,486
|
30
|
|
13.2%
|
Insulated Metal
Panels
|
106,605
|
19
|
|
98,026
|
21
|
|
8.8%
|
|
303,910
|
21
|
|
267,240
|
21
|
|
13.7%
|
Metal Coil
Coating
|
57,609
|
11
|
|
48,556
|
10
|
|
18.6%
|
|
158,109
|
11
|
|
143,185
|
11
|
|
10.4%
|
Total external
sales
|
$
548,525
|
100
|
|
$
469,385
|
100
|
|
16.9%
|
|
$
1,426,943
|
100
|
|
$
1,281,552
|
100
|
|
11.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
% of
Sales
|
|
|
% of
Sales
|
|
|
|
|
% of
Sales
|
|
|
% of
Sales
|
|
|
Engineered Building
Systems
|
$
24,296
|
11
|
|
$
14,948
|
8
|
|
62.5%
|
|
$
41,830
|
8
|
|
$
28,345
|
6
|
|
47.6%
|
Metal
Components
|
28,688
|
15
|
|
23,276
|
14
|
|
23.3%
|
|
67,859
|
14
|
|
55,649
|
12
|
|
21.9%
|
Insulated Metal
Panels
|
17,859
|
13
|
|
11,468
|
10
|
|
55.7%
|
|
26,470
|
7
|
|
33,037
|
10
|
|
-19.9%
|
Metal Coil
Coating
|
9,121
|
8
|
|
7,107
|
7
|
|
28.3%
|
|
21,626
|
7
|
|
20,040
|
7
|
|
7.9%
|
Corporate
|
(25,463)
|
-
|
|
(22,702)
|
-
|
|
12.2%
|
|
(71,430)
|
-
|
|
(60,616)
|
-
|
|
17.8%
|
Total operating
income
|
$
54,501
|
10
|
|
$
34,097
|
7
|
|
59.8%
|
|
$
86,355
|
6
|
|
$
76,455
|
6
|
|
12.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (1)
|
|
% of
Sales
|
|
|
% of
Sales
|
|
|
|
|
% of
Sales
|
|
|
% of
Sales
|
|
|
Engineered Building
Systems
|
$
23,832
|
10
|
|
$
15,889
|
8
|
|
50.0%
|
|
$
42,955
|
8
|
|
$
31,519
|
6
|
|
36.3%
|
Metal
Components
|
28,713
|
15
|
|
23,188
|
14
|
|
23.8%
|
|
66,601
|
13
|
|
55,575
|
12
|
|
19.8%
|
Insulated Metal
Panels
|
12,105
|
9
|
|
11,711
|
10
|
|
3.4%
|
|
29,135
|
8
|
|
24,290
|
8
|
|
19.9%
|
Metal Coil
Coating
|
9,121
|
8
|
|
7,107
|
7
|
|
28.3%
|
|
21,626
|
7
|
|
20,040
|
7
|
|
7.9%
|
Corporate
|
(21,821)
|
-
|
|
(21,405)
|
-
|
|
1.9%
|
|
(61,784)
|
-
|
|
(58,789)
|
-
|
|
5.1%
|
Total adjusted
operating income
|
$
51,950
|
9
|
|
$
36,490
|
8
|
|
42.4%
|
|
$
98,533
|
7
|
|
$
72,635
|
6
|
|
35.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
|
% of
Sales
|
|
|
% of
Sales
|
|
|
|
|
% of
Sales
|
|
|
% of
Sales
|
|
|
Engineered Building
Systems
|
$
25,558
|
11
|
|
$
19,435
|
10
|
|
31.5%
|
|
$
49,726
|
9
|
|
$
39,460
|
8
|
|
26.0%
|
Metal
Components
|
30,124
|
16
|
|
24,509
|
15
|
|
22.9%
|
|
71,152
|
14
|
|
59,612
|
13
|
|
19.4%
|
Insulated Metal
Panels
|
16,378
|
12
|
|
16,016
|
13
|
|
2.3%
|
|
42,081
|
12
|
|
37,620
|
12
|
|
11.9%
|
Metal Coil
Coating
|
11,218
|
10
|
|
9,170
|
10
|
|
22.3%
|
|
27,866
|
9
|
|
26,249
|
10
|
|
6.2%
|
Corporate
|
(20,026)
|
-
|
|
(18,756)
|
-
|
|
6.8%
|
|
(55,028)
|
-
|
|
(49,425)
|
-
|
|
11.3%
|
Total adjusted
EBITDA
|
$
63,252
|
12
|
|
$
50,374
|
11
|
|
25.6%
|
|
$
135,797
|
10
|
|
$
113,516
|
9
|
|
19.6%
|
|
(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 statements of operations.
|
|
(2) The
Company's Term Loan Credit Agreement defines Adjusted EBITDA.
Adjusted EBITDA excludes non-cash charges for goodwill and other
asset impairments and stock compensation as well as certain special
charges. As such, the historical information is presented in
accordance with the definition above. The Company's Asset-Based
Lending facility has substantially the same definition of Adjusted
EBITDA. 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
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Nine
|
|
Trailing
|
|
Fiscal Three
Months Ended
|
|
Months
Ended
|
|
Twelve
Months
|
|
October
29,
|
January
28,
|
April
29,
|
July
29,
|
|
July
29,
|
|
July
29,
|
|
2017
|
2018
|
2018
|
2018
|
|
2018
|
|
2018
|
Total Net
Sales
|
$
488,726
|
$
421,349
|
$ 457,069
|
$ 548,525
|
|
$
1,426,943
|
|
$
1,915,669
|
|
|
|
|
|
|
|
|
|
Operating Income,
GAAP
|
33,325
|
12,898
|
18,956
|
54,501
|
|
86,355
|
|
119,680
|
Restructuring
and impairment
|
1,709
|
1,094
|
488
|
(439)
|
|
1,143
|
|
2,852
|
Strategic
development and acquisition related costs
|
193
|
727
|
1,134
|
3,642
|
|
5,503
|
|
5,696
|
Loss (gain) on
disposition of business
|
-
|
-
|
6,686
|
(1,013)
|
|
5,673
|
|
5,673
|
Acceleration of
CEO retirement benefits
|
-
|
4,600
|
-
|
-
|
|
4,600
|
|
4,600
|
Gain on
insurance recovery
|
-
|
-
|
-
|
(4,741)
|
|
(4,741)
|
|
(4,741)
|
Unreimbursed
business interruption costs
|
28
|
-
|
-
|
-
|
|
-
|
|
28
|
Goodwill
impairment
|
6,000
|
-
|
-
|
-
|
|
-
|
|
6,000
|
Adjusted Operating
Income
|
41,255
|
19,319
|
27,264
|
51,950
|
|
98,533
|
|
139,788
|
|
|
|
|
|
|
|
|
|
Other income
and expense
|
(62)
|
928
|
(34)
|
87
|
|
981
|
|
919
|
Depreciation
and amortization
|
10,664
|
10,358
|
10,442
|
10,174
|
|
30,974
|
|
41,638
|
Share-based
compensation expense
|
2,084
|
2,270
|
1,998
|
1,041
|
|
5,309
|
|
7,393
|
Adjusted
EBITDA
|
$
53,941
|
$
32,875
|
$
39,670
|
$
63,252
|
|
$
135,797
|
|
$
189,738
|
|
|
|
|
|
|
|
|
|
Year over year
growth, Total Net Sales
|
1.8 %
|
7.6 %
|
8.7 %
|
16.9 %
|
|
11.3 %
|
|
8.7 %
|
Operating Income
Margin
|
6.8 %
|
3.1 %
|
4.1 %
|
9.9 %
|
|
6.1 %
|
|
6.2 %
|
Adjusted Operating
Income Margin
|
8.4 %
|
4.6 %
|
6.0 %
|
9.5 %
|
|
6.9 %
|
|
7.3 %
|
Adjusted EBITDA
Margin
|
11.0 %
|
7.8 %
|
8.7 %
|
11.5 %
|
|
9.5 %
|
|
9.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Nine
|
|
Trailing
|
|
Fiscal Three
Months Ended
|
|
Months
Ended
|
|
Twelve
Months
|
|
October
30,
|
January
29,
|
April
30,
|
July
30,
|
|
July
30,
|
|
July
30,
|
|
2016
|
2017
|
2017
|
2017
|
|
2017
|
|
2017
|
Total Net
Sales
|
$
480,314
|
$
391,703
|
$ 420,464
|
$ 469,385
|
|
$
1,281,552
|
|
$
1,761,866
|
|
|
|
|
|
|
|
|
|
Operating Income,
GAAP
|
39,391
|
9,886
|
32,472
|
34,097
|
|
76,455
|
|
115,846
|
Restructuring
and impairment
|
815
|
2,264
|
315
|
1,009
|
|
3,588
|
|
4,403
|
Strategic
development and acquisition related costs
|
590
|
357
|
124
|
1,297
|
|
1,778
|
|
2,368
|
Loss on sale of
assets and asset recovery
|
62
|
-
|
137
|
-
|
|
137
|
|
199
|
Gain on
insurance recovery
|
-
|
-
|
(9,601)
|
(148)
|
|
(9,749)
|
|
(9,749)
|
Unreimbursed
business interruption costs
|
-
|
-
|
191
|
235
|
|
426
|
|
426
|
Adjusted Operating
Income
|
40,858
|
12,507
|
23,638
|
36,490
|
|
72,635
|
|
113,493
|
|
|
|
|
|
|
|
|
|
Other income
and expense
|
(192)
|
309
|
449
|
1,322
|
|
2,080
|
|
1,888
|
Depreciation
and amortization
|
9,815
|
10,315
|
10,062
|
10,278
|
|
30,655
|
|
40,470
|
Share-based
compensation expense
|
3,181
|
3,042
|
2,820
|
2,284
|
|
8,146
|
|
11,327
|
Adjusted
EBITDA
|
$
53,662
|
$
26,173
|
$
36,969
|
$
50,374
|
|
$
113,516
|
|
$
167,178
|
|
|
|
|
|
|
|
|
|
Operating Income
Margin
|
8.2 %
|
2.5 %
|
7.7 %
|
7.3 %
|
|
6.0 %
|
|
6.6 %
|
Adjusted Operating
Income Margin
|
8.5 %
|
3.2 %
|
5.6 %
|
7.8 %
|
|
5.7 %
|
|
6.4 %
|
Adjusted EBITDA
Margin
|
11.2 %
|
6.7 %
|
8.8 %
|
10.7 %
|
|
8.9 %
|
|
9.5 %
|
NCI BUILDING
SYSTEMS, INC.
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATIONS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Engineered
Building Systems
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Nine
|
|
Trailing
|
|
Fiscal Three
Months Ended
|
|
Months
Ended
|
|
Twelve
Months
|
|
October
29,
|
January
28,
|
April
29,
|
July
29,
|
|
July
29,
|
|
July
29,
|
|
2017
|
2018
|
2018
|
2018
|
|
2018
|
|
2018
|
Total
Sales
|
$
188,183
|
$
156,964
|
$ 167,240
|
$ 230,098
|
|
$
554,302
|
|
$
742,485
|
External
Sales
|
178,222
|
148,288
|
157,136
|
218,614
|
|
524,038
|
|
702,260
|
|
|
|
|
|
|
|
|
|
Operating Income,
GAAP
|
13,043
|
8,263
|
9,271
|
24,296
|
|
41,830
|
|
54,873
|
Restructuring
and impairment
|
695
|
1,136
|
280
|
(464)
|
|
952
|
|
1,647
|
Strategic
development and acquisition related costs
|
-
|
173
|
-
|
-
|
|
173
|
|
173
|
Adjusted Operating
Income
|
13,738
|
9,572
|
9,551
|
23,832
|
|
42,955
|
|
56,693
|
|
|
|
|
|
|
|
|
|
Other income
and expense
|
(694)
|
733
|
(88)
|
(179)
|
|
466
|
|
(228)
|
Depreciation
and amortization
|
2,198
|
2,077
|
2,323
|
1,905
|
|
6,305
|
|
8,503
|
Adjusted
EBITDA
|
$
15,242
|
$
12,382
|
$
11,786
|
$
25,558
|
|
$
49,726
|
|
$
64,968
|
|
|
|
|
|
|
|
|
|
Year over year
growth, Total sales
|
(7.8)%
|
3.8 %
|
2.8 %
|
19.9 %
|
|
9.6 %
|
|
4.6 %
|
Year over year
growth, External Sales
|
(9.3)%
|
2.3 %
|
1.7 %
|
20.0 %
|
|
8.8 %
|
|
3.5 %
|
Operating Income
Margin
|
6.9 %
|
5.3 %
|
5.5 %
|
10.6 %
|
|
7.5 %
|
|
7.4 %
|
Adjusted Operating
Income Margin
|
7.3 %
|
6.1 %
|
5.7 %
|
10.4 %
|
|
7.7 %
|
|
7.6 %
|
Adjusted EBITDA
Margin
|
8.1 %
|
7.9 %
|
7.0 %
|
11.1 %
|
|
9.0 %
|
|
8.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Nine
|
|
Trailing
|
|
Fiscal Three
Months Ended
|
|
Months
Ended
|
|
Twelve
Months
|
|
October
30,
|
January
29,
|
April
30,
|
July
30,
|
|
July
30,
|
|
July
30,
|
|
2016
|
2017
|
2017
|
2017
|
|
2017
|
|
2017
|
Total
Sales
|
$
204,208
|
$
151,263
|
$ 162,624
|
$ 191,910
|
|
505,797
|
|
$
710,005
|
External
Sales
|
196,596
|
145,021
|
154,456
|
182,164
|
|
481,641
|
|
678,237
|
|
|
|
|
|
|
|
|
|
Operating Income,
GAAP
|
22,830
|
6,503
|
6,894
|
14,948
|
|
28,345
|
|
51,175
|
Restructuring
and impairment
|
211
|
1,910
|
186
|
941
|
|
3,037
|
|
3,248
|
Loss on sale of
assets and asset recovery
|
62
|
-
|
137
|
-
|
|
137
|
|
199
|
Adjusted Operating
Income
|
23,103
|
8,413
|
7,217
|
15,889
|
|
31,519
|
|
54,622
|
|
|
|
|
|
|
|
|
|
Other income
and expense
|
(362)
|
(41)
|
(125)
|
1,291
|
|
1,125
|
|
763
|
Depreciation
and amortization
|
2,399
|
2,276
|
2,285
|
2,255
|
|
6,816
|
|
9,215
|
Adjusted
EBITDA
|
$
25,140
|
$
10,648
|
$
9,377
|
$
19,435
|
|
$
39,460
|
|
$
64,600
|
|
|
|
|
|
|
|
|
|
Operating Income
Margin
|
11.2 %
|
4.3 %
|
4.2 %
|
7.8 %
|
|
5.6 %
|
|
7.2 %
|
Adjusted Operating
Income Margin
|
11.3 %
|
5.6 %
|
4.4 %
|
8.3 %
|
|
6.2 %
|
|
7.7 %
|
Adjusted EBITDA
Margin
|
12.3 %
|
7.0 %
|
5.8 %
|
10.1 %
|
|
7.8 %
|
|
9.1 %
|
NCI BUILDING
SYSTEMS, INC.
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATIONS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Metal
Components
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Nine
|
|
Trailing
|
|
Fiscal Three
Months Ended
|
|
Months
Ended
|
|
Twelve
Months
|
|
October
29,
|
January
28,
|
April
29,
|
July
29,
|
|
July
29,
|
|
July
29,
|
|
2017
|
2018
|
2018
|
2018
|
|
2018
|
|
2018
|
Total
Sales
|
$
181,288
|
$
146,832
|
$ 168,456
|
$ 186,421
|
|
$
501,709
|
|
$
682,997
|
External
Sales
|
155,183
|
127,528
|
147,661
|
165,697
|
|
440,886
|
|
596,069
|
|
|
|
|
|
|
|
|
|
Operating Income,
GAAP
|
23,119
|
17,089
|
22,082
|
28,688
|
|
67,859
|
|
90,978
|
Restructuring
and impairment
|
69
|
(1,403)
|
120
|
25
|
|
(1,258)
|
|
(1,189)
|
Adjusted Operating
Income
|
23,188
|
15,686
|
22,202
|
28,713
|
|
66,601
|
|
89,789
|
|
|
|
|
|
|
|
|
|
Other income
and expense
|
84
|
53
|
67
|
54
|
|
174
|
|
258
|
Depreciation
and amortization
|
1,422
|
1,576
|
1,444
|
1,357
|
|
4,377
|
|
5,799
|
Adjusted
EBITDA
|
$
24,694
|
$
17,315
|
$
23,713
|
$
30,124
|
|
$
71,152
|
|
$
95,846
|
|
|
|
|
|
|
|
|
|
Year over year
growth, Total sales
|
8.9 %
|
9.4 %
|
8.8 %
|
12.1 %
|
|
10.2 %
|
|
9.8 %
|
Year over year
growth, External Sales
|
10.9 %
|
10.4 %
|
10.8 %
|
17.8 %
|
|
13.2 %
|
|
12.6 %
|
Operating Income
Margin
|
12.8 %
|
11.6 %
|
13.1 %
|
15.4 %
|
|
13.5 %
|
|
13.3 %
|
Adjusted Operating
Income Margin
|
12.8 %
|
10.7 %
|
13.2 %
|
15.4 %
|
|
13.3 %
|
|
13.1 %
|
Adjusted EBITDA
Margin
|
13.6 %
|
11.8 %
|
14.1 %
|
16.2 %
|
|
14.2 %
|
|
14.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Nine
|
|
Trailing
|
|
Fiscal Three
Months Ended
|
|
Months
Ended
|
|
Twelve
Months
|
|
October
30,
|
January
29,
|
April
30,
|
July
30,
|
|
July
30,
|
|
July
30,
|
|
2016
|
2017
|
2017
|
2017
|
|
2017
|
|
2017
|
Total
Sales
|
$
166,532
|
$
134,173
|
$ 154,895
|
$ 166,305
|
|
$
455,373
|
|
$
621,905
|
External
Sales
|
139,968
|
115,557
|
133,290
|
140,639
|
|
389,486
|
|
529,454
|
|
|
|
|
|
|
|
|
|
Operating Income,
GAAP
|
21,254
|
12,376
|
19,997
|
23,276
|
|
55,649
|
|
76,903
|
Restructuring
and impairment
|
103
|
305
|
129
|
60
|
|
494
|
|
597
|
Gain on
insurance recovery
|
-
|
-
|
(420)
|
(148)
|
|
(568)
|
|
(568)
|
Adjusted Operating
Income
|
21,357
|
12,681
|
19,706
|
23,188
|
|
55,575
|
|
76,932
|
|
|
|
|
|
|
|
|
|
Other income
and expense
|
(27)
|
28
|
52
|
55
|
|
135
|
|
108
|
Depreciation
and amortization
|
1,406
|
1,334
|
1,302
|
1,266
|
|
3,902
|
|
5,308
|
Adjusted
EBITDA
|
$
22,736
|
$
14,043
|
$
21,060
|
$
24,509
|
|
$
59,612
|
|
$
82,348
|
|
|
|
|
|
|
|
|
|
Operating Income
Margin
|
12.8 %
|
9.2 %
|
12.9 %
|
14.0 %
|
|
12.2 %
|
|
12.4 %
|
Adjusted Operating
Income Margin
|
12.8 %
|
9.5 %
|
12.7 %
|
13.9 %
|
|
12.2 %
|
|
12.4 %
|
Adjusted EBITDA
Margin
|
13.7 %
|
10.5 %
|
13.6 %
|
14.7 %
|
|
13.1 %
|
|
13.2 %
|
NCI BUILDING
SYSTEMS, INC.
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATIONS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Insulated Metal
Panels
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Nine
|
|
Trailing
|
|
Fiscal Three
Months Ended
|
|
Months
Ended
|
|
Twelve
Months
|
|
October
29,
|
January
28,
|
April
29,
|
July
29,
|
|
July
29,
|
|
July
29,
|
|
2017
|
2018
|
2018
|
2018
|
|
2018
|
|
2018
|
Total
Sales
|
$
123,542
|
$
110,794
|
$ 113,413
|
$ 133,740
|
|
$
357,947
|
|
$
481,489
|
External
Sales
|
105,064
|
97,513
|
99,792
|
106,605
|
|
303,910
|
|
408,974
|
|
|
|
|
|
|
|
|
|
Operating Income,
GAAP
|
14,895
|
7,071
|
1,540
|
17,859
|
|
26,470
|
|
41,365
|
Restructuring
and impairment
|
683
|
1,284
|
88
|
-
|
|
1,372
|
|
2,055
|
Strategic
development and acquisition related costs
|
90
|
300
|
61
|
-
|
|
361
|
|
451
|
Loss (gain) on
disposition of business
|
-
|
-
|
6,686
|
(1,013)
|
|
5,673
|
|
5,673
|
Gain on
insurance recovery
|
-
|
-
|
-
|
(4,741)
|
|
(4,741)
|
|
(4,741)
|
Unreimbursed
business interruption costs
|
28
|
-
|
-
|
-
|
|
-
|
|
28
|
Adjusted Operating
Income
|
15,696
|
8,655
|
8,375
|
12,105
|
|
29,135
|
|
44,831
|
|
|
|
|
|
|
|
|
|
Other income
and expense
|
356
|
(273)
|
223
|
(51)
|
|
(101)
|
|
255
|
Depreciation
and amortization
|
4,742
|
4,388
|
4,335
|
4,324
|
|
13,047
|
|
17,789
|
Adjusted
EBITDA
|
$
20,794
|
$
12,770
|
$
12,933
|
$
16,378
|
|
$
42,081
|
|
$
62,875
|
|
|
|
|
|
|
|
|
|
Year over year
growth, Total sales
|
12.3 %
|
16.4 %
|
10.2 %
|
11.7 %
|
|
12.6 %
|
|
12.5 %
|
Year over year
growth, External Sales
|
13.4 %
|
18.3 %
|
15.0 %
|
8.8 %
|
|
13.7 %
|
|
13.6 %
|
Operating Income
Margin
|
12.1 %
|
6.4 %
|
1.4 %
|
13.4 %
|
|
7.4 %
|
|
8.6 %
|
Adjusted Operating
Income Margin
|
12.7 %
|
7.8 %
|
7.4 %
|
9.1 %
|
|
8.1 %
|
|
9.3 %
|
Adjusted EBITDA
Margin
|
16.8 %
|
11.5 %
|
11.4 %
|
12.2 %
|
|
11.8 %
|
|
13.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Nine
|
|
Trailing
|
|
Fiscal Three
Months Ended
|
|
Months
Ended
|
|
Twelve
Months
|
|
October
30,
|
January
29,
|
April
30,
|
July
30,
|
|
July
30,
|
|
July
30,
|
|
2016
|
2017
|
2017
|
2017
|
|
2017
|
|
2017
|
Total
Sales
|
$
110,001
|
$
95,195
|
$ 102,937
|
$ 119,730
|
|
$
317,862
|
|
$
427,863
|
External
Sales
|
92,648
|
82,441
|
86,773
|
98,026
|
|
267,240
|
|
359,888
|
|
|
|
|
|
|
|
|
|
Operating Income,
GAAP
|
7,513
|
2,192
|
19,377
|
11,468
|
|
33,037
|
|
40,550
|
Restructuring
and impairment
|
404
|
-
|
-
|
8
|
|
8
|
|
412
|
Gain on
insurance recovery
|
-
|
-
|
(9,181)
|
-
|
|
(9,181)
|
|
(9,181)
|
Unreimbursed
business interruption costs
|
-
|
-
|
191
|
235
|
|
426
|
|
426
|
Adjusted Operating
Income
|
7,917
|
2,192
|
10,387
|
11,711
|
|
24,290
|
|
32,207
|
|
|
|
|
|
|
|
|
|
Other income
and expense
|
270
|
35
|
340
|
(211)
|
|
164
|
|
434
|
Depreciation
and amortization
|
3,926
|
4,392
|
4,258
|
4,516
|
|
13,166
|
|
17,092
|
Adjusted
EBITDA
|
$
12,113
|
$
6,619
|
$
14,985
|
$
16,016
|
|
$
37,620
|
|
$
49,733
|
|
|
|
|
|
|
|
|
|
Operating Income
Margin
|
6.8 %
|
2.3 %
|
18.8 %
|
9.6 %
|
|
10.4 %
|
|
9.5 %
|
Adjusted Operating
Income Margin
|
7.2 %
|
2.3 %
|
10.1 %
|
9.8 %
|
|
7.6 %
|
|
7.5 %
|
Adjusted EBITDA
Margin
|
11.0 %
|
7.0 %
|
14.6 %
|
13.4 %
|
|
11.8 %
|
|
11.6 %
|
NCI BUILDING
SYSTEMS, INC.
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATIONS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Metal Coil
Coating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Nine
|
|
Trailing
|
|
Fiscal Three
Months Ended
|
|
Months
Ended
|
|
Twelve
Months
|
|
October
29,
|
January
28,
|
April
29,
|
July
29,
|
|
July
29,
|
|
July
29,
|
|
2017
|
2018
|
2018
|
2018
|
|
2018
|
|
2018
|
Total
Sales
|
$
98,550
|
$
88,343
|
$
95,190
|
$ 116,440
|
|
$
299,973
|
|
$
398,523
|
External
Sales
|
50,257
|
48,020
|
52,480
|
57,609
|
|
158,109
|
|
208,366
|
|
|
|
|
|
|
|
|
|
Operating Income,
GAAP
|
1,419
|
5,376
|
7,129
|
9,121
|
|
21,626
|
|
23,045
|
Goodwill
impairment
|
6,000
|
-
|
-
|
-
|
|
-
|
|
6,000
|
Adjusted Operating
Income
|
7,419
|
5,376
|
7,129
|
9,121
|
|
21,626
|
|
29,045
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
2,065
|
2,058
|
2,085
|
2,097
|
|
6,240
|
|
8,305
|
Adjusted
EBITDA
|
$
9,484
|
$
7,434
|
$
9,214
|
$
11,218
|
|
$
27,866
|
|
$
37,350
|
|
|
|
|
|
|
|
|
|
Year over year
growth, Total sales
|
2.7 %
|
0.0 %
|
9.8%
|
22.2 %
|
|
11.0 %
|
|
8.8 %
|
Year over year
growth, External Sales
|
(1.7)%
|
(1.4)%
|
14.2 %
|
18.6 %
|
|
10.4 %
|
|
7.2 %
|
Operating Income
Margin
|
1.4 %
|
6.1 %
|
7.5 %
|
7.8 %
|
|
7.2 %
|
|
5.8 %
|
Adjusted Operating
Income Margin
|
7.5 %
|
6.1 %
|
7.5 %
|
7.8 %
|
|
7.2 %
|
|
7.3 %
|
Adjusted EBITDA
Margin
|
9.6 %
|
8.4 %
|
9.7 %
|
9.6 %
|
|
9.3 %
|
|
9.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Nine
|
|
Trailing
|
|
Fiscal Three
Months Ended
|
|
Months
Ended
|
|
Twelve
Months
|
|
October
30,
|
January
29,
|
April
30,
|
July
30,
|
|
July
30,
|
|
July
30,
|
|
2016
|
2017
|
2017
|
2017
|
|
2017
|
|
2017
|
Total
Sales
|
$
95,987
|
$
88,340
|
$
86,729
|
$
95,261
|
|
$
270,330
|
|
$
366,317
|
External
Sales
|
51,102
|
48,684
|
45,945
|
48,556
|
|
143,185
|
|
194,287
|
|
|
|
|
|
|
|
|
|
Operating Income,
GAAP
|
9,310
|
6,706
|
6,227
|
7,107
|
|
20,040
|
|
29,350
|
Adjusted Operating
Income
|
9,310
|
6,706
|
6,227
|
7,107
|
|
20,040
|
|
29,350
|
|
|
|
|
|
|
|
|
|
Other income
and expense
|
-
|
31
|
-
|
-
|
|
31
|
|
31
|
Depreciation
and amortization
|
1,849
|
2,106
|
2,009
|
2,063
|
|
6,178
|
|
8,027
|
Adjusted
EBITDA
|
$
11,159
|
$
8,843
|
$
8,236
|
$
9,170
|
|
$
26,249
|
|
$
37,408
|
|
|
|
|
|
|
|
|
|
Operating Income
Margin
|
9.7 %
|
7.6 %
|
7.2 %
|
7.5 %
|
|
7.4 %
|
|
8.0 %
|
Adjusted Operating
Income Margin
|
9.7 %
|
7.6 %
|
7.2 %
|
7.5 %
|
|
7.4 %
|
|
8.0 %
|
Adjusted EBITDA
Margin
|
11.6 %
|
10.0 %
|
9.5 %
|
9.6 %
|
|
9.7 %
|
|
10.2 %
|
NCI BUILDING
SYSTEMS, INC.
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATIONS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Nine
|
|
Trailing
|
|
Fiscal Three
Months Ended
|
|
Months
Ended
|
|
Twelve
Months
|
|
October
29,
|
January
28,
|
April
29,
|
July
29,
|
|
July
29,
|
|
July
29,
|
|
2017
|
2018
|
2018
|
2018
|
|
2018
|
|
2018
|
Operating Loss,
GAAP
|
$
(19,151)
|
$
(24,901)
|
$
(21,066)
|
$
(25,463)
|
|
$
(71,430)
|
|
$
(90,581)
|
Restructuring
and impairment
|
262
|
77
|
-
|
-
|
|
77
|
|
339
|
Strategic
development and acquisition related costs
|
103
|
254
|
1,073
|
3,642
|
|
4,969
|
|
5,072
|
Acceleration of
CEO retirement benefits
|
-
|
4,600
|
-
|
-
|
|
4,600
|
|
4,600
|
Adjusted Operating
Loss
|
(18,786)
|
(19,970)
|
(19,993)
|
(21,821)
|
|
(61,784)
|
|
(80,570)
|
|
|
|
|
|
|
|
|
|
Other income
and expense
|
192
|
415
|
(236)
|
263
|
|
442
|
|
634
|
Depreciation
and amortization
|
237
|
259
|
255
|
491
|
|
1,005
|
|
1,242
|
Share-based
compensation expense
|
2,084
|
2,270
|
1,998
|
1,041
|
|
5,309
|
|
7,393
|
Adjusted
EBITDA
|
$
(16,273)
|
$
(17,026)
|
$
(17,976)
|
$
(20,026)
|
|
$
(55,028)
|
|
$
(71,301)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Nine
|
|
Trailing
|
|
Fiscal Three
Months Ended
|
|
Months
Ended
|
|
Twelve
Months
|
|
October
30,
|
January
29,
|
April
30,
|
July
30,
|
|
July
30,
|
|
July
30,
|
|
2016
|
2017
|
2017
|
2017
|
|
2017
|
|
2017
|
Operating Loss,
GAAP
|
$
(21,516)
|
$
(17,891)
|
$
(20,023)
|
$
(22,702)
|
|
$
(60,616)
|
|
$
(82,132)
|
Restructuring
and impairment
|
97
|
49
|
-
|
-
|
|
49
|
|
146
|
Strategic
development and acquisition related costs
|
590
|
357
|
124
|
1,297
|
|
1,778
|
|
2,368
|
Adjusted Operating
Loss
|
(20,829)
|
(17,485)
|
(19,899)
|
(21,405)
|
|
(58,789)
|
|
(79,618)
|
|
|
|
|
|
|
|
|
|
Other income
and expense
|
(73)
|
256
|
182
|
187
|
|
625
|
|
552
|
Depreciation
and amortization
|
235
|
207
|
208
|
178
|
|
593
|
|
828
|
Share-based
compensation expense
|
3,181
|
3,042
|
2,820
|
2,284
|
|
8,146
|
|
11,327
|
Adjusted
EBITDA
|
$
(17,486)
|
$
(13,980)
|
$
(16,689)
|
$
(18,756)
|
|
$
(49,425)
|
|
$
(66,911)
|
View original
content:http://www.prnewswire.com/news-releases/nci-building-systems-reports-third-quarter-2018-results-300703652.html
SOURCE NCI Building Systems, Inc.