CARY, N.C., May 8, 2019 /PRNewswire/ -- NCI Building
Systems, Inc. (NYSE: NCS) ("NCI" or the "Company"),
the largest manufacturer of exterior building products in
North America, today reported
financial results for the quarter ended March 30, 2019. On April
11, 2019, the Company announced it will change its name to
Cornerstone Building Brands, Inc. and trade under the ticker symbol
"CNR" on the New York Stock Exchange, which is expected to become
effective following shareholder approval at the Company's annual
shareholder meeting being held on May 23,
2019.
First Quarter Financial and Operational Highlights:
- Net sales of $1,064.8
million
- Gross profit of $185.9 million,
or 17.5% of sales
- Net loss of $60.0 million and
adjusted net loss of $35.2
million
- Adjusted EBITDA of $71.7 million,
or 6.7% of net sales
"We are pleased to announce our first quarter results following
the public release of our new name, Cornerstone Building Brands,
which will become effective following the receipt of shareholder
approval at the Company's upcoming annual meeting," said the
Company's Chairman and Chief Executive Officer James S. Metcalf. "During the first quarter,
Cornerstone Building Brands made continued progress on our
strategic and operational financial objectives despite fluctuations
in both commercial and residential demand. While January and
February sales volumes were negatively impacted by poor weather
conditions across many of our key markets, demand improved
meaningfully as we moved through March. We have also successfully
taken pricing actions to offset higher raw material, freight and
labor costs. Coupled with our ongoing cost savings initiatives, we
expect to drive year-over-year margin improvement as we move into
the second and third quarters of the year."
Mr. Metcalf continued, "Our various cost saving initiatives,
including our merger synergies, remain on track. At the same time,
we continue to find new ways to take advantage of scale and
purchasing power, while providing a broader product offering to our
customers as demonstrated by our recent acquisition of
Environmental StoneWorks. We are also taking steps to improve our
working capital utilization, which we believe will further enhance
our free cash flow generation helping us achieve our leverage
targets and maximize the growth potential of the
Company."
First Quarter 2019 Results
In December 2018, the Company
announced a change to its fiscal year end from a four-four-five
week period ending in October to a calendar year end reporting
structure. As a result, the financial results for the first quarter
2019 are not comparable to the first quarter of fiscal year
2018.
Consolidated net sales in the three months ended March 30, 2019 were $1,064.8 million, increasing approximately
152.7%, compared to $421.3 million in
the three months ended January 28,
2018. The year-over-year improvement was primarily driven by
the addition of Ply Gem's sales.
Gross profit was $185.9 million in
the three months ended March 30, 2019
compared to $91.9 million in the
three months ended January 28, 2018.
Gross profit margins were 17.5% in the three months ended
March 30, 2019, compared to 21.8% in
the three months ended January 28,
2018. The decrease in the gross profit percentage is largely
attributed to $16.2 million of
non-cash charges associated with purchase accounting for inventory
related to the November 2018 merger
of Ply Gem Parent, LLC ("Ply Gem Merger") with and into the Company
and the February 2019 acquisition of
Environmental Materials, LLC ("Environmental StoneWorks" or "ESW",
such acquisition, the "ESW Acquisition").
Selling, general and administrative ("SG&A") expenses were
$154.3 million in the three months
ended March 30, 2019 compared to
$74.8 million in the three months
ended January 28, 2018. The increase
year-over-year reflects the addition of Ply Gem's SG&A expenses
in the three months ended March 30,
2019. As a percentage of net sales, SG&A expenses were
14.5% in the three months ended March 30,
2019 compared to 17.7% in the three months ended
January 28, 2018.
Operating loss in the three months ended March 30, 2019 was a loss of $27.4 million, compared to operating income of
$12.9 million in the three months
ended January 28, 2018. The operating
loss in the 2019 period was due to $14.1
million in acquisition costs, the $16.2 million non-cash charge of purchase price
allocated to inventories and $39.1
million in increased amortization expense associated with
the intangibles from the Ply Gem Merger and ESW Acquisition.
Adjusted Operating Income, a non-GAAP financial measure which
excludes certain special items, was $7.4
million in three months ended March
30, 2019, compared to $19.3
million in the three months ended January 28, 2018.
Net loss applicable to common shares in the three months ended
March 30, 2019 was $60.0 million, or $0.48 per diluted common share, compared to net
income of $5.2 million, or
$0.08 per diluted common share in the
three months ended January 28, 2018.
In addition to the acquisition and purchase accounting costs
already mentioned, net loss was impacted by the following;
$3.4 million in restructuring and
impairment charges, partially offset by $8.7
million for the associated tax effect of these items.
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 $71.7 million in the three
months ended March 30, 2019, compared
to $32.4 million in the three months
ended January 28, 2018. Please see
the reconciliation of Adjusted Operating Income (Loss), Adjusted
Net Income (Loss) and Adjusted EBITDA in the accompanying financial
tables.
Cash and cash equivalents as of March 30,
2019 were $103.6 million,
compared to $12.6 million as of
January 28, 2018. As of March 30, 2019, the Company had $220.0 million drawn on its $611.0 million asset-based lending ("ABL")
facility.
First Quarter 2019 Segment Performance
Net sales in the Commercial segment were $425.0 million in the three months ended
March 30, 2019 compared to
$421.3 million in the three months
ended January 28, 2018. The increase
was primarily a result of commercial price discipline and the pass
through of higher material costs. Gross profit was $90.4 million in the three months ended
March 30, 2019, compared to
$91.9 million in the three months
ended January 28, 2018. As a percent
of net sales, gross profit was 21.3%, a decrease of 50 basis
points, compared to 21.8% in the three months ended January 28, 2018. The decrease was driven by
lower tonnage volumes that resulted in lower leverage, partially
offset by commercial discipline across all business lines and
improved product mix. Operating income was $32.6 million during the three months ended
March 30, 2019, compared to
$37.8 million in the three months
ended January 28, 2018.
The Siding segment generated $218.3
million in net sales during the three months ended
March 30, 2019, which included
$19.4 million for ESW. Gross profit
in the three months ended March 30,
2019 was $33.2 million. Gross
profit was negatively impacted by $16.2
million of non-cash charge of purchase price allocated to
inventories associated with the Ply Gem Merger and ESW
acquisition in the three months ended March 30, 2019. Excluding the impact of the
inventory step-up, gross profit for the period would have been
$49.4 million. Operating loss was
$11.7 million in the three months
ended March 30, 2019 due to higher
intangible amortization and non-cash inventory charges.
Net sales in the Windows segment were $421.6 million during the three months ended
March 30, 2019, which included
$90.6 million and $81.9 million attributable to Silver Line and
Atrium, respectively. Ply Gem's acquisition of a portfolio of
products sold under the Silver Line and American Craftsman brands,
certain manufacturing plants and associated distribution and
support services was completed on October
14, 2018 and the Atrium acquisition was completed on
April 12, 2018. Excluding the
Silver Line and Atrium entities, net sales would have been
$249.1 million in the three months
ended March 30, 2019. Gross profit in
the three months ended March 30, 2019
was $62.3 million. As a percent of
net sales, the Window segment's gross profit was 14.8%. Operating
loss was $4.3 million in the three
months ended March 30, 2019 primarily
due to higher intangible amortization associated with the Ply Gem
merger.
Recent Developments
On February 20, 2019, NCI's
wholly-owned subsidiary, Ply Gem Industries, Inc. purchased 100% of
the outstanding limited liability company interests of ESW for a
total consideration of $182.6
million, subject to certain post-closing adjustments. The
transaction was financed through borrowings under the Company's
asset-based revolving credit facility. During fiscal 2018, ESW
generated $153.0 million in net
sales.
Conference Call Information
The Company's first quarter fiscal 2019 conference call is
scheduled for Wednesday, May 8, 2019
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.cornerstonebuildingbrands.com. To access the taped telephone
replay, please dial 1-201-612-7415 or 1-877-660-6853 (toll-free)
and the passcode 13690208# when prompted. The taped replay will be
available two hours after the call through May 15, 2019. 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 website
for approximately 90 days.
About Cornerstone Building Brands (NCI Building Systems, Inc.
and Ply Gem Holdings, Inc.)
Cornerstone Building Brands is the largest manufacturer of
exterior building products in North
America. Headquartered in Cary,
North Carolina, the organization serves residential and
commercial customers across new construction and repair &
remodel market. As the #1 manufacturer of windows, vinyl siding,
insulated metal panels, metal roofing and wall systems and metal
accessories, Cornerstone Building Brands combines a comprehensive
portfolio of products with an expansive national footprint that
includes more than 21,000 employees at manufacturing, distribution
and office locations throughout North
America. For more information, visit us at
www.cornerstonebuildingbrands.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 performance
expectations. Among the factors that could cause actual results to
differ materially include, but are not limited to, risks and
uncertainties relating to industry cyclicality and seasonality and
adverse weather conditions; challenging economic conditions
affecting the nonresidential construction industry; downturns in
the residential new construction and repair and remodeling end
markets, or the economy or the availability of consumer credit;
volatility in the United States
("U.S.") economy and abroad, generally, and in the credit markets;
inability to successfully develop new products or improve existing
products; the effects of manufacturing or assembly realignments;
changes in laws or regulations; the effects of certain external
domestic or international factors that we may not be able to
control, including war, civil conflict, terrorism, natural
disasters and public health issues; our ability to obtain financing
on acceptable terms; recognition of goodwill or asset impairment
charges; commodity price volatility and/or limited availability of
raw materials, including steel, PVC resin and aluminum; retention
and replacement of key personnel; increases in union organizing
activity and work stoppages at our facilities or the facilities of
our suppliers; our ability to employ, train and retain qualified
personnel at a competitive cost; enforcement and obsolescence of
our intellectual property rights; changes in foreign currency
exchange and interest rates; costs and liabilities related to
compliance with environmental laws and environmental clean-ups;
changes in building codes and standards; potential product
liability claims, including class action claims and warranties,
relating to products we manufacture; competitive activity and
pricing pressure in our industry; the credit risk of our customers;
the dependence on a core group of significant customers in our
Windows and Siding segments; operational problems or disruptions at
any of our facilities, including natural disasters; volatility of
the Company's stock price; our ability to make strategic
acquisitions accretive to earnings; to fully realize expected cost
savings and synergies, including those identified as a result of
the Ply Gem Merger; significant changes in factors and assumptions
used to measure certain of Ply Gem Parent LLC's ("Ply Gem") defined
benefit plan obligations and the effect of actual investment
returns on pension assets; volatility in transportation, energy and
freight prices; the adoption of climate change legislation;
limitations on our net operating losses and payments under the tax
receivable agreement; breaches of our information system security
measures; damage to our major information management systems;
necessary maintenance or replacements to our enterprise resource
planning technologies; potential personal injury, property damage
or product liability claims or other types of litigation;
compliance with certain laws related to our international business
operations; the effect of tariffs on steel imports; the cost and
difficulty associated with integrating and combining the businesses
of NCI and Ply Gem; potential write-downs or write-offs,
restructuring and impairment or other charges required in
connection with the merger of Ply Gem with and into the Company
with the Company continuing in its existence as a Delaware corporation; potential claims arising
from the operations of our various businesses arising from periods
prior to the dates they were acquired; substantial governance and
other rights held by our sponsor investors; the effect on our
common stock price caused by transactions engaged in by our sponsor
investors, our directors or executives; our substantial
indebtedness and our ability to incur substantially more
indebtedness; limitations that our debt agreements place on our
ability to engage in certain business and financial transactions;
the effect of increased interest rates on our ability to service
our debt; downgrades of our credit ratings and the results of the
Company's shareholder vote on May 23,
2019. See also the "Risk Factors" in the Company's Annual
Report on Form 10-K for the fiscal year ended October 28, 2018, our Transition Report on Form
10-QT for the transition period from October
29, 2018 to December 31, 2018
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)
|
|
Three Months
Ended
|
|
March 30,
2019
|
|
January 28,
2018
|
Net sales
|
$
|
1,064,832
|
|
$
|
421,349
|
Cost of
sales
|
878,915
|
|
329,432
|
Gross
profit
|
185,917
|
|
91,917
|
|
17.5%
|
|
21.8%
|
|
|
|
|
Selling, general and
administrative expenses
|
154,306
|
|
74,786
|
Intangible asset
amortization
|
41,463
|
|
2,412
|
Restructuring and
impairment charges, net
|
3,431
|
|
1,094
|
Strategic development
and acquisition related costs
|
14,082
|
|
727
|
Income (loss) from
operations
|
(27,365)
|
|
12,898
|
Interest
income
|
215
|
|
33
|
Interest
expense
|
(58,286)
|
|
(7,492)
|
Foreign exchange
gain
|
1,177
|
|
471
|
Other income,
net
|
345
|
|
457
|
Income (loss) before
income taxes
|
(83,914)
|
|
6,367
|
Provision (benefit)
for income taxes
|
(23,897)
|
|
1,118
|
|
28.5%
|
|
17.6%
|
|
|
|
|
Net income
(loss)
|
$
|
(60,017)
|
|
$
|
5,249
|
Net income allocated
to participating securities
|
—
|
|
(38)
|
Net income (loss)
applicable to common shares
|
$
|
(60,017)
|
|
$
|
5,211
|
|
|
|
|
Income (loss) per
common share:
|
|
|
|
Basic
|
$
|
(0.48)
|
|
$
|
0.08
|
Diluted
|
$
|
(0.48)
|
|
$
|
0.08
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
Basic
|
125,503
|
|
66,434
|
Diluted
|
125,503
|
|
66,546
|
|
|
|
|
Increase in net
sales
|
152.7%
|
|
7.6%
|
|
|
|
|
Selling, general and
administrative expenses percentage of net sales
|
14.5%
|
|
17.7%
|
NCI BUILDING
SYSTEMS, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
March 30,
2019
|
|
October 28,
2018
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
99,588
|
|
|
$
|
54,272
|
|
Restricted
cash
|
4,039
|
|
|
245
|
|
Accounts receivable,
net
|
499,438
|
|
|
233,297
|
|
Inventories,
net
|
516,957
|
|
|
254,531
|
|
Income taxes
receivable
|
13,597
|
|
|
1,012
|
|
Investments in debt
and equity securities, at market
|
3,722
|
|
|
5,285
|
|
Prepaid expenses and
other
|
78,926
|
|
|
34,821
|
|
Assets held for
sale
|
7,272
|
|
|
7,272
|
|
Total current
assets
|
1,223,539
|
|
|
590,735
|
|
|
|
|
|
Property, plant and
equipment, net
|
638,172
|
|
|
236,240
|
|
Lease right-of-use
assets
|
292,927
|
|
|
—
|
|
Goodwill
|
1,702,182
|
|
|
148,291
|
|
Intangible assets,
net
|
1,721,054
|
|
|
127,529
|
|
Deferred income
taxes
|
—
|
|
|
982
|
|
Other assets,
net
|
11,980
|
|
|
6,598
|
|
Total
assets
|
$
|
5,589,854
|
|
|
$
|
1,110,375
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Current portion of
long-term debt
|
$
|
25,600
|
|
|
$
|
4,150
|
|
Note
payable
|
—
|
|
|
497
|
|
Payable pursuant to a
tax receivable agreement
|
24,760
|
|
|
—
|
|
Accounts
payable
|
216,306
|
|
|
170,663
|
|
Accrued compensation
and benefits
|
73,955
|
|
|
65,136
|
|
Accrued
interest
|
59,814
|
|
|
1,684
|
|
Accrued income
taxes
|
5,824
|
|
|
11,685
|
|
Current portion of
lease liabilities
|
69,718
|
|
|
—
|
|
Other accrued
expenses
|
236,067
|
|
|
81,884
|
|
Total current
liabilities
|
712,044
|
|
|
335,699
|
|
|
|
|
|
Long-term
debt
|
3,301,248
|
|
|
403,076
|
|
Deferred income
taxes
|
282,886
|
|
|
2,250
|
|
Long-term lease
liabilities
|
228,010
|
|
|
—
|
|
Other long-term
liabilities
|
159,380
|
|
|
39,085
|
|
Total long-term
liabilities
|
3,971,524
|
|
|
444,411
|
|
|
|
|
|
Common
stock
|
1,256
|
|
|
663
|
|
Additional paid-in
capital
|
1,240,423
|
|
|
523,788
|
|
Accumulated
deficit
|
(325,856)
|
|
|
(186,291)
|
|
Accumulated other
comprehensive loss, net
|
(8,341)
|
|
|
(6,708)
|
|
Treasury stock, at
cost
|
(1,196)
|
|
|
(1,187)
|
|
Total stockholders'
equity
|
906,286
|
|
|
330,265
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
5,589,854
|
|
|
$
|
1,110,375
|
|
NCI BUILDING
SYSTEMS, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
March 30,
2019
|
|
January 28,
2018
|
Cash flows from
operating activities:
|
|
|
|
Net income
(loss)
|
$
|
(60,017)
|
|
|
$
|
5,249
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
Depreciation and
amortization
|
59,947
|
|
|
10,358
|
|
Non-cash interest
expense
|
2,672
|
|
|
435
|
|
Share-based
compensation expense
|
4,005
|
|
|
5,870
|
|
Non-cash fair value
premium on purchased inventory
|
16,249
|
|
|
—
|
|
Gains on asset sales,
net
|
—
|
|
|
(320)
|
|
Provision for
doubtful accounts
|
(189)
|
|
|
(20)
|
|
Deferred income
taxes
|
(7,434)
|
|
|
(1,676)
|
|
Changes in operating
assets and liabilities, net of effect of acquisitions:
|
|
|
|
Accounts
receivable
|
(43,635)
|
|
|
30,858
|
|
Inventories
|
16,704
|
|
|
(2,237)
|
|
Income
taxes
|
(34,090)
|
|
|
2,373
|
|
Prepaid expenses and
other
|
18,524
|
|
|
(2,567)
|
|
Accounts
payable
|
(7,216)
|
|
|
(31,205)
|
|
Accrued
expenses
|
(12,373)
|
|
|
(23,183)
|
|
Other, net
|
(1,869)
|
|
|
(515)
|
|
Net cash used in
operating activities
|
(48,722)
|
|
|
(6,580)
|
|
Cash flows from
investing activities:
|
|
|
|
Acquisitions, net of
cash acquired
|
(182,418)
|
|
|
—
|
|
Capital
expenditures
|
(27,190)
|
|
|
(8,109)
|
|
Proceeds from sale of
property, plant and equipment
|
—
|
|
|
2,249
|
|
Net cash used in
investing activities
|
(209,608)
|
|
|
(5,860)
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from stock
options exercised
|
—
|
|
|
1,040
|
|
Proceeds from ABL
facility
|
220,000
|
|
|
43,000
|
|
Payments on ABL
facilities
|
—
|
|
|
(33,000)
|
|
Payments on term
loan
|
(6,405)
|
|
|
—
|
|
Payments on note
payable
|
—
|
|
|
(441)
|
|
Payments of financing
costs
|
—
|
|
|
(275)
|
|
Payments related to
tax withholding for share-based compensation
|
(156)
|
|
|
(4,610)
|
|
Purchases of treasury
stock
|
—
|
|
|
(46,705)
|
|
Net cash provided by
(used in) financing activities
|
213,439
|
|
|
(40,991)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
911
|
|
|
237
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
(43,980)
|
|
|
(53,194)
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
147,607
|
|
|
65,794
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
103,627
|
|
|
$
|
12,600
|
|
NCI BUILDING
SYSTEMS, INC.
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATIONS
|
ADJUSTED NET
INCOME (LOSS) PER DILUTED COMMON SHARE AND
NET INCOME (LOSS)
COMPARISON
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
Three Months
Ended
|
|
March 30,
2019
|
|
January 28,
2018
|
Net income (loss)
per diluted common share, GAAP basis
|
$
|
(0.48)
|
|
|
$
|
0.08
|
|
Restructuring and
impairment charges, net
|
0.03
|
|
|
0.02
|
|
Strategic development
and acquisition related costs
|
0.11
|
|
|
0.01
|
|
Acceleration of CEO
retirement benefits
|
—
|
|
|
0.07
|
|
Non cash gain on
foreign currency transactions
|
(0.01)
|
|
|
(0.01)
|
|
Non cash charge of
purchase price allocated to inventories
|
0.13
|
|
|
—
|
|
Customer inventory
buybacks
|
—
|
|
|
—
|
|
Other, net
|
0.01
|
|
|
(0.01)
|
|
Tax effect of
applicable non-GAAP adjustments(1)
|
(0.07)
|
|
|
(0.02)
|
|
Adjusted net
income (loss) per diluted common share(2)
|
$
|
(0.28)
|
|
|
$
|
0.14
|
|
|
|
Three Months
Ended
|
|
March 30,
2019
|
|
January 28,
2018
|
Net income (loss)
applicable to common shares, GAAP basis
|
$
|
(60,017)
|
|
|
$
|
5,211
|
|
Restructuring and
impairment charges, net
|
3,431
|
|
|
1,094
|
|
Strategic development
and acquisition related costs
|
14,082
|
|
|
727
|
|
Acceleration of CEO
retirement benefits
|
—
|
|
|
4,600
|
|
Non cash gain on
foreign currency transactions
|
(1,177)
|
|
|
(471)
|
|
Non cash charge of
purchase price allocated to inventories
|
16,249
|
|
|
—
|
|
Customer inventory
buybacks
|
242
|
|
|
—
|
|
Other, net
|
724
|
|
|
(323)
|
|
Tax effect of
applicable non-GAAP adjustments(1)
|
(8,727)
|
|
|
(1,645)
|
|
Adjusted net
income (loss) applicable to common
shares(2)
|
$
|
(35,193)
|
|
|
$
|
9,193
|
|
|
|
(1)
|
The Company
calculated the tax effect of non-GAAP adjustments by applying the
applicable federal and state statutory tax rate for the period to
each applicable non-GAAP item.
|
|
|
(2)
|
The Company discloses
a tabular comparison of Adjusted net income (loss) per diluted
common share and Adjusted net income (loss) 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 (loss) per
diluted common share and Adjusted net income (loss) applicable to
common shares should not be considered in isolation or as a
substitute for net income (loss) per diluted common share and net
income (loss) applicable to common shares as reported on the face
of our consolidated statements of operations.
|
NCI BUILDING
SYSTEMS, INC.
|
NON-GAAP FINANCIAL
MEASURES AND RECONCILIATIONS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
March 30,
2019
|
|
January 28,
2018
|
Operating income
(loss), GAAP
|
$
|
(27,365)
|
|
|
$
|
12,898
|
|
Restructuring and
impairment
|
3,431
|
|
|
1,094
|
|
Strategic development
and acquisition related costs
|
14,082
|
|
|
727
|
|
Acceleration of CEO
retirement benefits
|
—
|
|
|
4,600
|
|
Non cash charge of
purchase price allocated to inventories
|
16,249
|
|
|
—
|
|
Customer inventory
buybacks
|
242
|
|
|
—
|
|
Other, net
|
724
|
|
|
—
|
|
Adjusted operating
income
|
7,363
|
|
|
19,319
|
|
|
|
|
|
Other income,
net
|
345
|
|
|
457
|
|
Depreciation and
amortization
|
59,947
|
|
|
10,358
|
|
Share-based
compensation expense
|
4,005
|
|
|
2,270
|
|
Adjusted
EBITDA
|
$
|
71,660
|
|
|
$
|
32,404
|
|
NCI BUILDING
SYSTEMS, INC.
|
BUSINESS
SEGMENTS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March 30,
2019
|
|
January 28,
2018
|
|
|
|
|
% of
Net Sales
|
|
|
% of
Net Sales
|
|
% Change
|
Net
Sales
|
|
|
|
|
|
|
|
Commercial
|
$
|
424,961
|
|
39.9%
|
|
$
|
421,349
|
|
100.0%
|
|
0.9%
|
Siding
|
218,277
|
|
20.5%
|
|
—
|
|
—%
|
|
100.0%
|
Windows
|
421,594
|
|
39.6%
|
|
—
|
|
—%
|
|
100.0%
|
Total net
sales
|
$
|
1,064,832
|
|
100.0%
|
|
$
|
421,349
|
|
100.0%
|
|
152.7%
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
|
|
|
|
|
Commercial
|
$
|
90,401
|
|
21.3%
|
|
$
|
91,917
|
|
21.8%
|
|
(1.6)%
|
Siding
|
33,176
|
|
15.2%
|
|
—
|
|
—%
|
|
100.0%
|
Windows
|
62,340
|
|
14.8%
|
|
—
|
|
—%
|
|
100.0%
|
Total gross
profit
|
$
|
185,917
|
|
17.5%
|
|
$
|
91,917
|
|
21.8%
|
|
102.3%
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
Commercial
|
$
|
32,628
|
|
7.7%
|
|
$
|
37,799
|
|
9.0%
|
|
(13.7)%
|
Siding
|
(11,654)
|
|
(5.3)%
|
|
—
|
|
—
|
|
(100.0)%
|
Windows
|
(4,319)
|
|
(1.0)%
|
|
—
|
|
—
|
|
(100.0)%
|
Corporate
|
(44,020)
|
|
—
|
|
(24,901)
|
|
—
|
|
(76.8)%
|
Total operating
income (loss)
|
$
|
(27,365)
|
|
(2.6)%
|
|
$
|
12,898
|
|
3.1%
|
|
(312.2)%
|
View original
content:http://www.prnewswire.com/news-releases/nci-building-systems-reports-first-quarter-2019-results-300845841.html
SOURCE NCI Building Systems, Inc.