Exhibit 99.1
| Contact: | Norman C. Chambers |
| | President & Chief Operating Officer |
NCI BUILDING SYSTEMS EXCEEDS 3RD-QUARTER GUIDANCE AS
EARNINGS GROW 43% TO $1.00 PER DILUTED SHARE,
ADJUSTED EARNINGS INCREASE 61% TO $1.06
SALES INCREASE 54%; BACKLOG MORE THAN DOUBLES TO $436 MILLION
HOUSTON (August 30, 2006) – NCI Building Systems, Inc. (NYSE: NCS) today announced financial results for the third quarter ended July 30, 2006. Sales were a record $449.4 million for the quarter, up 54% from $292.7 million for the third quarter of fiscal 2005. Net income for the third quarter of fiscal 2006 was $21.7 million, or $1.00 per diluted share, which included a $0.02 expense related to the adoption of FAS 123(R) and a $0.06 dilutive impact from NCI’s 2.125% Convertible Senior Subordinated Notes (the “Notes”). Excluding the impact of the Notes, net income per diluted share was $1.06. Net income for the third quarter last year was $14.7 million, or $0.70 per diluted share. Pro forma net income per diluted share for the third quarter of fiscal 2005, reflecting the impact of FAS 123 (R) had it been applicable, was $0.66.
A. R. Ginn, Chairman and Chief Executive Officer of NCI, said, “We are very pleased with NCI’s sales and margin performance for the third quarter of fiscal 2006. With a 54% increase in sales for the quarter, we have now produced four consecutive quarters of accelerating comparable-quarter sales growth. As we anticipated, this growth primarily reflected the continuing expansion of the nonresidential construction industry, our increasing industry market share and the acquisition of Robertson-Ceco Corporation (RCC) in April 2006.
“Our tons shipped for the third quarter increased approximately 40% compared with the third quarter of fiscal 2005, with our existing operations accounting for approximately 10% growth and the addition of RCC’s sales accounting for the remainder. With increased costs for the third quarter of fiscal 2006 related to the assimilation of RCC, rising steel prices and FAS 123 (R), our income from operations totaled 9.2% of sales for the third quarter of fiscal 2006, even with the third quarter of fiscal 2005.
“The impact of RCC was evident in the 97% increase in sales for the Buildings segment for the third quarter and the more than doubling of the Company’s backlog, to $436 million at the quarter end from $204 million at the end of the third quarter of fiscal 2005. Our quarter-end backlog also increased 14% from the end of the second quarter of fiscal 2006, as we continued to increase share in an expanding market. The segment’s operating income rose 36% for the
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10943 N. Sam Houston Parkway W. • Houston, Texas 77064
P.O. Box 692055 • Houston, Texas 77269-2055 • Telephone: (281) 897-7788 • Fax: (281) 477-9675
NCI Building Systems Reports Third-Quarter Results
Page 2
August 30, 2006
quarter to $19.4 million, or 8% of Buildings sales, from $14.3 million, or 11% of Buildings sales, for the third quarter of fiscal 2005. The segment’s operating margin increased sequentially from 7% for the second quarter of fiscal 2006.
“The Company’s Components segment sales increased 23% for the third quarter to $206 million from $168 million for the third quarter of the prior fiscal year. A stronger pricing environment combined with volume-driven improvements in operating leverage generated a 57% increase in Components operating income, which also increased as a percentage of Components sales to 14% from 11% for the third quarter of fiscal 2005 and 11% for the second quarter of fiscal 2006.
“Strong internal demand and continued steady expansion of third party sales produced 31% growth in Coatings segment sales for the third quarter to $75 million from $57 million for the third quarter of fiscal 2005. The segment’s operating margin increased to 11% for the latest quarter, as operating income increased 146% from the third quarter of fiscal 2005. The Coatings operating margin on third-party sales increased to 29% for the third quarter compared with 13% for the third quarter of fiscal 2005.
“Our substantial profitable growth for the quarter enabled us to continue the incremental strengthening of our financial position, in spite of stock repurchases during the third quarter totaling approximately $17 million. On a net debt (total debt minus cash and cash equivalents) basis, our debt to total capitalization improved 120 basis points sequentially to 51.5% at the quarter end from 52.7% at the end of the second quarter of fiscal 2006. In addition, the ratio of quarter-end net debt to our trailing 12 months adjusted EBITDA improved to 3.1 at the end of the third quarter from 3.6 at the end of the second quarter.
“Based on our strong results for the third quarter and first nine months of fiscal 2006, as well as our record backlog and market outlook for the remainder of the fiscal year, we are today refining our established guidance for fiscal 2006 earnings per diluted share to a range of $3.55 to $3.60, from our previous range of $3.50 to $3.60. Our guidance includes an expense of $0.10 related to the adoption of FAS 123(R) but excludes any potential share dilution related to NCI’s Notes, because that amount, if any, will be dependent upon the future price of the Company’s stock. Among the other assumptions on which this guidance is based, we expect 6% growth in square footage in the nonresidential construction industry for 2006, which, combined with the RCC acquisition, is expected to produce 25% growth in our total tons shipped for fiscal 2006. Our guidance for fiscal 2006 also assumes an increase in the weighted average cost of our steel supplies of approximately 16%, as well as an estimated income tax rate of 39%.
“Consistent with this guidance, we have today established our guidance for earnings per diluted share for the fourth quarter of fiscal 2006 in a range of $1.35 to $1.40, which includes an expense of $0.03 related to the adoption of FAS 123(R) but excludes any potential share dilution related to NCI’s Notes. Earnings per diluted share for the fourth quarter of 2005 were $0.96, and pro forma earnings per diluted share for the fourth quarter of 2005, reflecting the impact of FAS 123 (R) had it been applicable, were $0.83.”
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NCI Building Systems Reports Third-Quarter Results
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August 30, 2006
Mr. Ginn added, “Our confidence in NCI’s near-term prospects for growth is supported by the progress we are making in our initiatives designed to create greater synergies from the acquisition of RCC. Among these initiatives, our efforts to mitigate potential lost sales resulting from the acquisition have succeeded well beyond our assumptions. We also remain on schedule to consolidate our procurement activities and are now painting all of the light gauge coil for RCC. In addition, we are progressing more quickly than expected in migrating RCC’s engineering systems to NCI’s Buildings segment, which will significantly strengthen our ability to implement our ‘hub and spoke’ delivery system throughout our combined 44 plants. Longer-term, we expect to continue growing market share by building on our position of industry leadership within the metal buildings and metal building components industry, which continues to account for an increasing portion of an expanding market for nonresidential construction. We have tangibly demonstrated our confidence in NCI’s short-term and long-term growth prospects through the repurchase of 323 thousand shares of the Company’s common stock during the third quarter and 410 thousand shares to date during the fourth quarter.”
NCI will provide an online, real-time webcast and rebroadcast of its conference call tomorrow to discuss this announcement. The live broadcast of this conference call will be available online atwww.ncilp.com orwww.earnings.com beginning at 10:30 a.m. (Eastern Time) on Thursday, August 31, 2006. The online replay will be available at approximately 12:30 p.m. (Eastern Time) and continue for one week.
This release contains forward-looking statements concerning NCI’s business and operations and industry conditions, including among others industry trends, steel pricing, growth expectations and margin expansion. These statements and other statements identified by words such as “guidance,” “potential,” “expect,” “should” 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 are subject to a number of risks and uncertainties that may cause NCI’s actual performance to differ materially from that projected in such statements. Among the factors that could cause actual results to differ materially are the possibility that the anticipated benefits from the RCC acquisition cannot be fully realized; the possibility that costs or difficulties related to the integration of the RCC operations into the Company’s operations will be greater than expected; industry cyclicality and seasonality; fluctuations in demand and prices for steel; the financial condition of NCI’s raw material suppliers; competitive activity and pricing pressure; ability to execute NCI’s acquisition strategy; and general economic conditions affecting the construction industry. Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended October 29, 2005, identifies 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 to reflect any changes in its expectations.
NCI Building Systems, Inc. is one of North America’s largest integrated manufacturers of metal products for the nonresidential building industry. The Company operates 44 manufacturing and distribution facilities located in 17 states, as well as Mexico and Canada.
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NCI Building Systems Reports Third-Quarter Results
Page 4
August 30, 2006
NCI BUILDING SYSTEMS, INC.
STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
| | | | | | | | | | | | | | | | |
| | | For the Three Months Ended | | | For the Nine Months Ended | |
| | | July 30,
2006 | | | July 30,
2005 | | | July 30, 2006 | | | July 30,
2005 | |
Sales | | $ | 449,393 | | | $ | 292,734 | | | $ | 1,072,007 | | | $ | 788,544 | |
Cost of sales | | | 335,731 | | | | 221,572 | | | | 810,386 | | | | 597,113 | |
| | | | | | | | | | | | | | | | |
Gross profit | | | 113,662 | | | | 71,162 | | | | 261,621 | | | | 191,431 | |
| | | 25.3 | % | | | 24.3 | % | | | 24.4 | % | | | 24.3 | % |
Selling, general and administrative expenses | | | 72,187 | | | | 44,130 | | | | 175,574 | | | | 124,198 | |
| | | | | | | | | | | | | | | | |
Income from operations | | | 41,475 | | | | 27,032 | | | | 86,047 | | | | 67,233 | |
| | | | |
Interest income | | | 799 | | | | 1,407 | | | | 4,806 | | | | 3,171 | |
Interest expense | | | (8,026 | ) | | | (3,993 | ) | | | (17,627 | ) | | | (10,712 | ) |
Other income, net | | | 82 | | | | 330 | | | | 614 | | | | 1,020 | |
| | | | | | | | | | | | | | | | |
Income before income taxes | | | 34,330 | | | | 24,776 | | | | 73,840 | | | | 60,712 | |
Provision for income taxes | | | 12,655 | | | | 10,087 | | | | 28,093 | | | | 24,569 | |
| | | | | | | | | | | | | | | | |
| | | 36.9 | % | | | 40.7 | % | | | 38.0 | % | | | 40.5 | % |
Net income | | $ | 21,675 | | | $ | 14,689 | | | $ | 45,747 | | | $ | 36,143 | |
| | | | | | | | | | | | | | | | |
Net income per share: | | | | | | | | | | | | | | | | |
Basic | | $ | 1.08 | | | $ | 0.71 | | | $ | 2.28 | | | $ | 1.76 | |
Diluted | | $ | 1.00 | | | $ | 0.70 | | | $ | 2.13 | | | $ | 1.73 | |
| | | | |
Average shares outstanding: | | | | | | | | | | | | | | | | |
Basic | | | 20,065 | | | | 20,738 | | | | 20,079 | | | | 20,565 | |
Diluted | | | 21,718 | | | | 21,012 | | | | 21,479 | | | | 20,919 | |
| | | | |
Increase in sales | | | 53.5 | % | | | | | | | 35.9 | % | | | | |
| | | | |
Increase in diluted earnings per share | | | 42.9 | % | | | | | | | 23.1 | % | | | | |
| | | | |
Gross profit percentage | | | 25.3 | % | | | 24.3 | % | | | 24.4 | % | | | 24.3 | % |
| | | | |
Selling, general and administrative expenses percentage | | | 16.1 | % | | | 15.1 | % | | | 16.4 | % | | | 15.8 | % |
| | | | |
Income from operations percentage | | | 9.2 | % | | | 9.2 | % | | | 8.0 | % | | | 8.5 | % |
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NCI Building Systems Reports Third-Quarter Results
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August 30, 2006
NCI BUILDING SYSTEMS, INC.
CONDENSED BALANCE SHEETS
(In thousands)
| | | | | | |
| | | July 30, 2006 | | October 29,
2005 |
| | | (Unaudited) | | |
ASSETS | | | | | | |
Cash and cash equivalents | | $ | 57,744 | | $ | 200,716 |
Accounts receivable, net | | | 160,223 | | | 110,094 |
Inventories | | | 175,307 | | | 113,421 |
Deferred income taxes | | | 23,812 | | | 15,470 |
Prepaid expenses | | | 7,129 | | | 2,963 |
| | | | | | |
Total current assets | | | 424,215 | | | 442,664 |
| | | | | | |
Property and equipment, net | | | 247,522 | | | 185,278 |
| | |
Goodwill | | | 612,208 | | | 339,157 |
Other assets | | | 58,342 | | | 23,120 |
| | | | | | |
Total assets | | $ | 1,342,287 | | $ | 990,219 |
| | | | | | |
| | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | |
Current portion of long-term debt | | $ | 5,044 | | $ | 2,000 |
Accounts payable | | | 106,632 | | | 55,874 |
Accrued expenses | | | 113,996 | | | 91,739 |
| | | | | | |
Total current liabilities | | | 225,672 | | | 149,613 |
| | | | | | |
Long-term debt | | | 569,187 | | | 371,000 |
Deferred income taxes | | | 50,866 | | | 25,462 |
Pension liability | | | 8,713 | | | — |
Other long-term liability | | | 1,093 | | | — |
| | |
Shareholders’ equity | | | 486,756 | | | 444,144 |
| | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,342,287 | | $ | 990,219 |
| | | | | | |
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NCI Building Systems Reports Third-Quarter Results
Page 6
August 30, 2006
NCI BUILDING SYSTEMS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
| | | | | | | | |
| | | For the Nine Months Ended | |
| | | July 30,
2006 | | | July 30,
2005 | |
Net income | | $ | 45,747 | | | $ | 36,143 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
Depreciation and amortization | | | 22,183 | | | | 18,115 | |
Stock-based compensation expense | | | 6,145 | | | | 2,501 | |
(Gain) loss on sale of fixed assets | | | (7 | ) | | | 135 | |
Inventory obsolescence | | | (510 | ) | | | 93 | |
Provision for doubtful accounts | | | 1,450 | | | | 27 | |
Deferred income tax benefit | | | (317 | ) | | | 3,612 | |
(Increase) decrease in current assets | | | (33,230 | ) | | | 54,082 | |
Increase (decrease) in current liabilities | | | 13,540 | | | | (44,530 | ) |
Other, net | | | (457 | ) | | | — | |
| | | | | | | | |
Net cash provided by operating activities | | | 54,544 | | | | 70,178 | |
| | | | | | | | |
Cash flows from investing activities: | | | | | | | | |
Acquisitions, net of cash acquired | | | (366,490 | ) | | | (27,145 | ) |
Capital expenditures | | | (19,364 | ) | | | (14,555 | ) |
Other | | | (203 | ) | | | 1,418 | |
| | | | | | | | |
Net cash used in investing activities | | | (386,057 | ) | | | (40,282 | ) |
| | | | | | | | |
Cash flows from financing activities: | | | | | | | | |
Proceeds from stock option exercises | | | 5,492 | | | | 4,957 | |
Excess tax benefits from stock-based compensation arrangements | | | 3,361 | | | | — | |
Issuance of convertible debt | | | — | | | | 180,000 | |
Issuance of long-term debt | | | 200,000 | | | | — | |
Net payments on revolving lines of credit | | | — | | | | (16,700 | ) |
Payments on long-term debt | | | (2,264 | ) | | | (6,500 | ) |
Payment of refinancing costs | | | (594 | ) | | | (4,790 | ) |
Purchase of treasury stock | | | (17,580 | ) | | | — | |
| | | | | | | | |
Net cash provided by financing activities | | | 188,415 | | | | 156,967 | |
| | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | | | 126 | | | | — | |
| | | | | | | | |
Net (decrease) increase in cash | | | (142,972 | ) | | | 186,863 | |
| | |
Cash at beginning of period | | | 200,716 | | | | 8,222 | |
| | | | | | | | |
Cash at end of period | | $ | 57,744 | | | $ | 195,085 | |
| | | | | | | | |
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NCI Building Systems Reports Third-Quarter Results
Page 7
August 30, 2006
NCI BUILDING SYSTEMS, INC.
BUSINESS SEGMENTS
(Unaudited)
(In thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
July 30, 2006 | | | Three Months Ended
July 30, 2005 | | | $ Inc/(Dec) | | | %
Change | |
| | | | | | % of
Total
Sales | | | | | | % of
Total
Sales | | | | | | | |
Sales: | | | | | | | | | | | | | | | | | | | | | |
Metal components | | $ | 206,270 | | | 46 | | | $ | 167,750 | | | 57 | | | $ | 38,520 | | | 23.0 | % |
Engineered building systems | | | 250,907 | | | 55 | | | | 127,446 | | | 44 | | | | 123,461 | | | 96.9 | % |
Metal coil coating | | | 74,813 | | | 17 | | | | 57,254 | | | 19 | | | | 17,559 | | | 30.7 | % |
Intersegment sales | | | (82,597 | ) | | (18 | ) | | | (59,716 | ) | | (20 | ) | | | (22,881 | ) | | 38.3 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total net sales | | $ | 449,393 | | | 100 | | | $ | 292,734 | | | 100 | | | $ | 156,659 | | | 53.5 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | | | | % of
Sales | | | | | | % of
Sales | | | | | | | |
Operating income: | | | | | | | | | | | | | | | | | | | | | |
Metal components | | $ | 28,663 | | | 14 | | | $ | 18,229 | | | 11 | | | $ | 10,434 | | | 57.2 | % |
Engineered building systems | | | 19,396 | | | 8 | | | | 14,288 | | | 11 | | | | 5,108 | | | 35.8 | % |
Metal coil coating | | | 8,435 | | | 11 | | | | 3,430 | | | 6 | | | | 5,005 | | | 145.9 | % |
Corporate | | | (15,019 | ) | | — | | | | (8,915 | ) | | — | | | | (6,104 | ) | | 68.5 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total operating income (% of sales) | | $ | 41,475 | | | 9 | | | $ | 27,032 | | | 9 | | | $ | 14,443 | | | 53.4 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | Nine Months Ended
July 30, 2006 | | | Nine Months Ended
July 30, 2005 | | | $ Inc/(Dec) | | | %
Change | |
| | | | | | % of
Total
Sales | | | | | | % of
Total
Sales | | | | | | | |
Sales: | | | | | | | | | | | | | | | | | | | | | |
Metal components | | $ | 555,167 | | | 52 | | | $ | 452,302 | | | 57 | | | $ | 102,865 | | | 22.7 | % |
Engineered building systems | | | 524,221 | | | 48 | | | | 332,085 | | | 42 | | | | 192,136 | | | 57.9 | % |
Metal coil coating | | | 199,169 | | | 19 | | | | 164,154 | | | 21 | | | | 35,015 | | | 21.3 | % |
Intersegment sales | | | (206,550 | ) | | (19 | ) | | | (159,997 | ) | | (20 | ) | | | (46,553 | ) | | 29.1 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total net sales | | $ | 1,072,007 | | | 100 | | | $ | 788,544 | | | 100 | | | $ | 283,463 | | | 35.9 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | | | | % of
Sales | | | | | | % of
Sales | | | | | | | |
Operating income: | | | | | | | | | | | | | | | | | | | | | |
Metal components | | $ | 68,203 | | | 12 | | | $ | 52,399 | | | 12 | | | $ | 15,804 | | | 30.2 | % |
Engineered building systems | | | 39,386 | | | 8 | | | | 31,337 | | | 9 | | | | 8,049 | | | 25.7 | % |
Metal coil coating | | | 18,421 | | | 9 | | | | 11,537 | | | 7 | | | | 6,884 | | | 59.7 | % |
Corporate | | | (39,963 | ) | | — | | | | (28,040 | ) | | — | | | | (11,923 | ) | | 42.5 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total operating income (% of sales) | | $ | 86,047 | | | 8 | | | $ | 67,233 | | | 9 | | | $ | 18,814 | | | 28.0 | % |
| | | | | | | | | | | | | | | | | | | | | |
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NCI Building Systems Reports Third-Quarter Results
Page 8
August 30, 2006
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)
| | | | | | |
| | | Trailing 12 Months |
| | | July 30,
2006 | | July 30,
2005 |
Net income | | $ | 65,555 | | $ | 59,177 |
Add: | | | | | | |
Provision for income taxes | | | 43,784 | | | 38,345 |
Interest expense | | | 21,071 | | | 13,046 |
Depreciation and amortization | | | 27,970 | | | 23,880 |
401(k) noncash contributions | | | — | | | 5,699 |
Loss on debt refinancing | | | — | | | — |
Non-cash FAS 123(R) | | | 7,327 | | | 2,848 |
| | | | | | |
Adjusted EBITDA (1) | | $ | 165,707 | | $ | 142,995 |
| | | | | | |
| (1) | The Company discloses adjusted EBITDA, which is a non-GAAP measure, because it is a widely accepted financial indicator in the metal construction industry of a company’s profitability, ability to finance its operations, and meet its growth plans. This measure is also used by NCI internally to make acquisition and investment decisions. Adjusted EBITDA is calculated based on the terms contained in the Company’s credit agreement. Results of operations of businesses acquired are included in this measure for periods subsequent to the acquisition and are not included on a pro forma basis. Adjusted EBITDA should not be considered in isolation or as a substitute for net income determined in accordance with generally accepted accounting principles in the United States. |
NCI BUILDING SYSTEMS, INC.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
RECONCILIATION OF TOTAL DEBT TO NET DEBT
(Unaudited)
(In thousands)
| | | | | | | | |
| | | July 30,
2006 | | | April 30,
2006 | |
Total debt | | $ | 574,231 | | | $ | 575,491 | |
Less: cash | | | (57,744 | ) | | | (39,769 | ) |
| | | | | | | | |
Total net debt | | $ | 516,487 | | | $ | 535,722 | |
| | | | | | | | |
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NCI Building Systems Reports Third-Quarter Results
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August 30, 2006
NCI BUILDING SYSTEMS, INC.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
“ADJUSTED” EARNINGS PER SHARE COMPARISON
(Unaudited)
| | | | | | | | |
| | | Fiscal Three Months Ended | |
| | | July 30,
2006 | | | July 30,
2005 | |
Earnings per diluted share, excluding impact of FAS 123R | | $ | 1.02 | | | $ | 0.70 | (1) |
FAS 123R Expense | | | (0.02 | ) | | | (0.04 | )(2) |
| | | | | | | | |
Earnings per diluted share, including impact of FAS 123R | | $ | 1.00 | (1) | | $ | 0.66 | |
Effect of convertible notes | | $ | 0.06 | (3) | | | — | |
| | | | | | | | |
“Adjusted” diluted earnings per share (A) | | $ | 1.06 | | | $ | 0.66 | |
| | | | | | | | |
| |
| | | Fiscal Nine Months Ended | |
| | | July 30,
2006 | | | July 30,
2005 | |
Earnings per diluted share, excluding impact of FAS 123R | | $ | 2.21 | | | $ | 1.73 | (1) |
FAS 123R Expense | | | (0.08 | ) | | | (0.13 | )(2) |
| | | | | | | | |
Earnings per diluted share, including impact of FAS 123R | | $ | 2.13 | (1) | | $ | 1.60 | |
Effect of convertible notes | | | 0.11 | (3) | | | — | |
Gain on health care cost | | | — | | | | (0.06 | )(4) |
| | | | | | | | |
“Adjusted” diluted earnings per share (A) | | $ | 2.24 | | | $ | 1.54 | |
| | | | | | | | |
| (A) | The Company discloses a tabular comparison of “Adjusted” earnings per diluted share, which is a non-GAAP measure because it is referred to in the text of our press releases and is instrumental in comparing the results from period to period. “Adjusted” earnings per share should not be considered in isolation or as a substitute for earnings per share as reported on the face of our statement of income. |
| (1) | Earnings per diluted share, GAAP basis |
| (2) | Pro forma share-based compensation expense, as if the Company had adopted FAS 123R in 2005 |
| (3) | Dilutive impact of the Company’s convertible notes as if they were converted during the period. |
| (4) | In the first quarter of 2005, the Company recognized a benefit related to health care costs which did not occur in 2006. |
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NCI Building Systems Reports Third-Quarter Results
Page 10
August 30, 2006
NCI Building Systems, Inc.
Reconciliation of Segment Sales to Third Party Segment Sales
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 3rd Qtr 2006 | | | | | | 3rd Qtr 2005 | | | | | | Inc/(Dec) | | | %
Change | | | YTD 3rd Qtr 2006 | | | | | | YTD 3rd Qtr 2005 | | | | | | Inc/(Dec) | | | %
Change | |
Metal Components | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Sales | | 206,270 | | | 39 | % | | 167,750 | | | 48 | % | | 38,520 | | | 23 | % | | 555,167 | | | 43 | % | | 452,302 | | | 48 | % | | 102,865 | | | 23 | % |
Intersegment | | (25,055 | ) | | | | | (23,342 | ) | | | | | (1,713 | ) | | 7 | % | | (68,616 | ) | | | | | (59,154 | ) | | | | | (9,462 | ) | | 16 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Third Party Sales | | 181,215 | | | 40 | % | | 144,408 | | | 49 | % | | 36,807 | | | 25 | % | | 486,551 | | | 46 | % | | 393,148 | | | 50 | % | | 93,403 | | | 24 | % |
| | | | | | | | | | | | |
Operating Income | | 28,663 | | | 16 | % | | 18,229 | | | 13 | % | | 10,434 | | | 57 | % | | 68,203 | | | 14 | % | | 52,399 | | | 13 | % | | 15,804 | | | 30 | % |
| | | | | | | | | | | | |
Engineered Building Systems | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 250,907 | | | 47 | % | | 127,446 | | | 36 | % | | 123,461 | | | 97 | % | | 524,221 | | | 41 | % | | 332,085 | | | 35 | % | | 192,136 | | | 58 | % |
Intersegment | | (11,346 | ) | | | | | (5,538 | ) | | | | | (5,808 | ) | | 105 | % | | (29,290 | ) | | | | | (14,883 | ) | | | | | (14,407 | ) | | 97 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Third Party Sales | | 239,561 | | | 54 | % | | 121,908 | | | 42 | % | | 117,653 | | | 97 | % | | 494,931 | | | 46 | % | | 317,202 | | | 40 | % | | 177,729 | | | 56 | % |
| | | | | | | | | | | | |
Operating Income | | 19,396 | | | 8 | % | | 14,288 | | | 12 | % | | 5,108 | | | 36 | % | | 39,386 | | | 8 | % | | 31,337 | | | 10 | % | | 8,049 | | | 26 | % |
| | | | | | | | | | | | |
Metal Coil Coating | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 74,813 | | | 14 | % | | 57,254 | | | 16 | % | | 17,559 | | | 31 | % | | 199,169 | | | 16 | % | | 164,154 | | | 17 | % | | 35,015 | | | 21 | % |
Intersegment | | (46,196 | ) | | | | | (30,836 | ) | | | | | (15,360 | ) | | 50 | % | | (108,644 | ) | | | | | (85,960 | ) | | | | | (22,684 | ) | | 26 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Third Party Sales | | 28,617 | | | 6 | % | | 26,418 | | | 9 | % | | 2,199 | | | 8 | % | | 90,525 | | | 8 | % | | 78,194 | | | 10 | % | | 12,331 | | | 16 | % |
| | | | | | | | | | | | |
Operating Income | | 8,435 | | | 29 | % | | 3,430 | | | 13 | % | | 5,005 | | | 146 | % | | 18,421 | | | 20 | % | | 11,537 | | | 15 | % | | 6,884 | | | 60 | % |
| | | | | | | | | | | | |
Consolidated | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 531,990 | | | 100 | % | | 352,450 | | | 100 | % | | 179,540 | | | 51 | % | | 1,278,557 | | | 100 | % | | 948,541 | | | 100 | % | | 330,016 | | | 35 | % |
Intersegment | | (82,597 | ) | | | | | (59,716 | ) | | | | | (22,881 | ) | | 38 | % | | (206,550 | ) | | | | | (159,997 | ) | | | | | (46,553 | ) | | 29 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Third Party Sales | | 449,393 | | | 100 | % | | 292,734 | | | 100 | % | | 156,659 | | | 54 | % | | 1,072,007 | | | 100 | % | | 788,544 | | | 100 | % | | 283,463 | | | 36 | % |
| | | | | | | | | | | | |
Operating Income | | 41,475 | | | 9 | % | | 27,032 | | | 9 | % | | 14,443 | | | 53 | % | | 86,047 | | | 8 | % | | 67,233 | | | 9 | % | | 18,814 | | | 28 | % |
-END-
