EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO

 

Contact:    Norman C. Chambers
   Chairman, President and Chief Executive Officer
   (281) 897-7788

NCI BUILDING SYSTEMS REPORTS FOURTH QUARTER FISCAL 2008 RESULTS

— Operating Income Up 6.7% to $51.0 million, or 10% of Sales —

— Earnings per Diluted Share of $1.26 —

— Recently-Implemented Cost Reductions to Produce

Annualized Savings of Approximately $34 Million —

HOUSTON (December 10, 2008) – NCI Building Systems Inc., (NYSE: NCS) today announced financial results for the fourth quarter and fiscal year ended November 2, 2008.

Sales for the fourth quarter increased 9.8% to $508.9 million, from the $463.6 million reported for last year’s fourth quarter. Operating income was up 6.7% to $51.0 million from the $47.8 million in the comparable year-ago period. Operating margin stood at 10%, slightly below the 10.3% reported for the 2007 fourth quarter. Net income was $24.6 million, or $1.26 per diluted share, and included a $2.7 million charge for cost of goods sold related to an inventory write-down and a $2.1 million charge for foreign currency exchange losses due to unusual fourth quarter fluctuations in the value of the Canadian dollar and Mexican peso relative to the U.S. dollar. For last year’s fourth quarter, the Company reported net income of $25.4 million, or $1.27 per diluted share. The fourth quarter of 2008 includes one additional week when compared to the fourth quarter of 2007.

Commenting on fourth quarter results, Norman C. Chambers, Chairman, President and Chief Executive Officer of NCI, noted, “Fourth quarter 2008 earnings came in above our guidance range, reflecting an almost 120 basis point year-over-year reduction in selling, general and administrative expenses as a percentage of sales and the better-than-expected operating performance of our Coil Coatings and Components groups. Higher transaction prices resulted in a 9.8% sales increase in the 2008 fourth quarter, despite a 14.2% decrease in volume of tons shipped,” Mr. Chambers said.

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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 Fourth-Quarter Results

Page 2

December 10, 2008

 

“Within a period of very difficult market conditions for the nonresidential construction industry and record high steel prices, NCI’s solid financial performance speaks to the size and scope of our operations, the benefits of our integrated business model, our ability to effectively serve a broad range of markets, and our focus on cost reductions,” Mr. Chambers noted.

Fourth Quarter Segment Performance

The Coatings group’s external sales declined 2.9% on a year-over-year basis, but operating profit increased 31.3%, as a result of the mix shift from tolling to package sales, the Company’s disciplined approach to steel pricing and supply, and the benefits of higher intercompany sales related to the RCC acquisitions.

The Components group posted a 32.3% increase in operating profit on 5.1% external sales growth. This substantial operating leverage resulted from both continued commercial discipline and the successful implementation of operating efficiencies.

The Buildings group’s external sales increased 13.5%, reflecting the effect of higher steel prices, but operating profit decreased 12.5%, resulting from margin compression caused by rapidly rising raw material costs. Backlog for the Buildings group was $330 million at the end of the fourth quarter, reflecting the high production rates of the 2008 fourth quarter and the impact of recently-reduced steel prices, which are causing customers to postpone near term purchasing decisions.

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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 Fourth-Quarter Results

Page 3

December 10, 2008

 

Full Year Fiscal 2008 Results

For the year, sales increased 8.6% to $1.76 billion from the $1.63 billion reported for 2007. Operating income was $154.7 million, or 8.8% of sales up from $131.7 million, or 8.1% of sales in 2007. Net income was $78.9 million, an increase of 24% over the $63.7 million earned in 2007. Full year 2008 earnings per diluted share were $4.05, up 32% from the $3.06 reported last year.

Mr. Chambers noted, “We completed a difficult year with record earnings results, gaining share by growing our customer base across multiple end markets, while implementing continuous improvements in our production processes and reducing companywide costs.”

Outlook

“Uncertain economic conditions combined with recent steel price declines and production curtailments have caused a significant reduction in visibility. As a result, we have taken important measures to ensure NCI’s continued leadership and reasonable profitability levels,” Mr. Chambers said.

A combination of cost reduction initiatives taken from late October through mid-November, which included an approximate 20% reduction in NCI’s workforce as well as four plant closings, are expected to result in annualized cost savings of approximately $34 million. The Company will incur charges of approximately $3.0 million in the first quarter of fiscal 2009 related to severance and plant closing costs.

“The seasonality that historically affects our first quarter results will be exacerbated in fiscal 2009 by the continued impact of the economic downturn on our markets and order push-outs in anticipation of steel price reductions. Based upon current projections of an approximate 40% sequential decline in volume of tonnage shipped, we expect to report a modest loss for the first

 

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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 Fourth-Quarter Results

Page 4

December 10, 2008

 

quarter of fiscal 2009, exclusive of special charges. EBITDA and cash flow from operations, however, is expected to be positive, benefiting from the shift in seasonality that occurred in fiscal 2008 as well as lower steel prices.

“NCI’s market leadership, effective business model and built-in flexibility position us to weather the current economic storm and emerge in a stronger position than most,” Mr. Chambers noted. “While causing some short term dislocation, lower steel prices increase the cost effectiveness of our products compared to the traditional building materials against which we compete. Importantly, we continue to effectively execute on our strategic plan, which includes further implementation of technological advances, increasing manufacturing efficiencies and extending our hub-and-spoke delivery system.”

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 at www.ncilp.com beginning at 10:30 a.m. (Eastern Time) on Thursday, December 11, 2008. The online replay will be available at approximately 12:30 p.m. (Eastern Time) and continue for one week.

 

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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 Fourth-Quarter Results

Page 5

December 10, 2008

 

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 28, 2007, 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. NCI is comprised of a family of companies operating 39 manufacturing facilities across the United States and Mexico, with additional sales and distribution offices throughout the nation and Canada.

 

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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 Fourth-Quarter Results

Page 6

December 10, 2008

 

NCI BUILDING SYSTEMS, INC.

STATEMENTS OF INCOME

(In thousands, except per share data)

 

     For the Three Months Ended     For the Year Ended  
   November 2,     October 28,     November 2,     October 28,  
   2008     2007     2008     2007  
   (Unaudited)     (Unaudited)     (Unaudited)        

Sales

    $ 508,931     $ 463,574     $ 1,764,159     $ 1,625,068  

Cost of sales

      384,792       343,454       1,325,624       1,221,463  
                                

Gross profit

      124,139       120,120       438,535       403,605  
     24.4 %     25.9 %     24.9 %     24.8 %

Selling, general and administrative expenses

      73,152       72,341       283,825       271,871  
                                

Income from operations

      50,987       47,779       154,710       131,734  

Interest income

      168       492       1,085       725  

Interest expense

      (5,676 )     (6,911 )     (23,535 )     (28,829 )

Other income (expense), net

      (2,902 )     391       (1,880 )     1,195  
                                

Income before income taxes

      42,577       41,751       130,380       104,825  

Provision for income taxes

      17,963       16,313       51,499       41,096  
                                
     42.2 %     39.1 %     39.5 %     39.2 %

Net income

    $ 24,614     $ 25,438     $ 78,881     $ 63,729  
                                

Net income per share:

         

Basic

    $ 1.27     $ 1.31     $ 4.08     $ 3.25  

Diluted

    $ 1.26     $ 1.27     $ 4.05     $ 3.06  

Average shares outstanding:

         

Basic

      19,404       19,345       19,332       19,582  

Diluted

      19,594       20,077       19,486       20,793  

Depreciation/amortization expense

      8,535       9,514       35,588       35,535  

Increase in sales

      9.8 %       8.6 %  

Increase (decrease) in diluted earnings per share

      -0.8 %       32.4 %  

Gross profit percentage

      24.4 %     25.9 %     24.9 %     24.8 %

Selling, general and administrative expenses percentage

      14.4 %     15.6 %     16.1 %     16.7 %

Income from operations percentage

      10.0 %     10.3 %     8.8 %     8.1 %

 

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NCI Building Systems Reports Fourth-Quarter Results

Page 7

December 10, 2008

 

NCI BUILDING SYSTEMS, INC.

CONDENSED BALANCE SHEETS

(In thousands)

 

     November 2,
2008		    October 28,
2007
     (Unaudited)     

ASSETS

      

Cash and cash equivalents

    $ 68,201    $ 75,054

Accounts receivable, net

      163,005      158,967

Inventories

      192,011      137,725

Deferred income taxes

      24,259      23,439

Prepaid expenses and other

      18,374      15,727
             

Total current assets

      465,850      410,912
             

Property and equipment, net

      251,163      261,994

Goodwill

      616,626      616,400

Other assets

      47,062      53,752
             

Total assets

    $ 1,380,701    $ 1,343,058
             

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current portion of long-term debt

    $ 920    $ 22,312

Accounts payable

      104,348      130,161

Accrued expenses

      128,745      129,298
             

Total current liabilities

      234,013      281,771
             

Long-term debt

      473,480      474,725

Deferred income taxes

      45,451      43,638

Other long-term liabilities

      3,928      3,228

Shareholders’ equity

      623,829      539,696
             

Total liabilities and shareholders’ equity

    $ 1,380,701    $ 1,343,058
             

 

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NCI Building Systems Reports Fourth-Quarter Results

Page 8

December 10, 2008

 

NCI BUILDING SYSTEMS, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

 

     For the Year Ended  
     November 2, 2008     October 28, 2007  
     (Unaudited)        

Net cash provided by operating activities

    $ 39,355     $ 137,625  
                

Cash flows from investing activities:

     

Acquisitions, net of cash acquired

      —         (20,086 )

Capital expenditures

      (24,803 )     (42,041 )

Other

      6,113       5,764  
                

Net cash used in investing activities

      (18,690 )     (56,363 )
                

Cash flows from financing activities:

     

Payments on revolving line of credit

      —         (90,500 )

Borrowings on revolving line of credit

      —         90,500  

Payments on long-term debt

      (22,637 )     (947 )

Payments on note payable

      (3,892 )     —    

Proceeds from stock option exercises

      698       3,923  

Excess tax benefits from stock-based compensation arrangements

      215       1,596  

Payment of financing costs

      (75 )     (75 )

Purchase of treasury stock

      (2,226 )     (36,122 )
                

Net cash used in financing activities

      (27,917 )     (31,625 )
                

Effect of exchange rate changes on cash and cash equivalents

      399       379  
                

Net (decrease) increase in cash

      (6,853 )     50,016  

Cash at beginning of period

      75,054       25,038  
                

Cash at end of period

    $ 68,201     $ 75,054  
                

 

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NCI Building Systems Reports Fourth-Quarter Results

Page 9

December 10, 2008

 

NCI Building Systems, Inc.

Business Segments

(Unaudited)

(In thousands)

 

     Three Months Ended
November 2, 2008 *		     Three Months Ended
October 28, 2007
(As reclassified)*		     $
Inc/(Dec)		     %
Change		  
           % of
Total
Sales		           % of
Total
Sales		              

Sales:

             

Metal coil coating

    $ 72,479     14     $ 77,205     16     $ (4,726 )   -6.1 %

Metal components

      201,878     40       189,242     41       12,636     6.7 %

Engineered building systems

      331,767     65       291,363     63       40,404     13.9 %

Intersegment sales

      (97,193 )   (19 )     (94,236 )   (20 )     (2,957 )   3.1 %
                                          

Total net sales

    $ 508,931     100     $ 463,574     100     $ 45,357     9.8 %
                                          
           % of
Sales		           % of
Sales		              

Operating income:

             

Metal coil coating

    $ 8,621     12     $ 6,567     9     $ 2,054     31.3 %

Metal components

      25,227     12       19,069     10       6,158     32.3 %

Engineered building systems

      33,607     10       38,427     13       (4,820 )   -12.5 %

Corporate

      (16,468 )   —         (16,284 )   —         (184 )   1.1 %
                                  

Total operating income (% of sales)

    $ 50,987     10     $ 47,779     10     $ 3,208     6.7 %
                                  
     Year Ended
November 2, 2008 *		     Year Ended
October 28, 2007
(As reclassified)*		     $
Inc/(Dec)		     %
Change		  
           % of
Total
Sales		           % of
Total
Sales		              

Sales:

             

Metal coil coating

    $ 305,657     17     $ 272,543     16     $ 33,114     12.2 %

Metal components

      715,255     41       663,331     41       51,924     7.8 %

Engineered building systems

      1,110,534     63       1,021,544     63       88,990     8.7 %

Intersegment sales

      (367,287 )   (21 )     (332,350 )   (20 )     (34,937 )   10.5 %
                                          

Total net sales

    $ 1,764,159     100     $ 1,625,068     100     $ 139,091     8.6 %
                                          
           % of
Sales		           % of
Sales		              

Operating income:

             

Metal coil coating

    $ 29,381     10     $ 25,136     9     $ 4,245     16.9 %

Metal components

      82,094     11       49,609     7       32,485     65.5 %

Engineered building systems

      107,851     10       113,265     11       (5,414 )   -4.8 %

Corporate

      (64,616 )   —         (56,276 )   —         (8,340 )   14.8 %
                                  

Total operating income (% of sales)

    $ 154,710     9     $ 131,734     8     $ 22,976     17.4 %
                                  

 

* During the fourth quarter of fiscal 2008, we changed reporting structure and management team responsibilities to better align certain of NCI’s products to respond effectively to current market opportunities. As a result of the change, we have transferred certain segment activities within the Metal components and Engineered building systems segments in fiscal 2008. Segment information for fiscal 2007 has been reclassified to conform to the fiscal 2008 segment designations.

 

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NCI Building Systems Reports Fourth-Quarter Results

Page 10

December 10, 2008

 

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
     November 2,
2008		    October 28,
2007
     

Net income

    $ 78,881    $ 63,729

Add:

      

Provision for income taxes

      51,499      41,096

Interest expense

      23,307      28,600

Depreciation and amortization

      34,736      34,683

Non-cash FAS 123(R)

      9,504      8,610
             

Adjusted EBITDA (1)

    $ 197,927    $ 176,718
             

 

(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 at the respective dates presented herein. 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.

 

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NCI Building Systems Reports Fourth-Quarter Results

Page 11

December 10, 2008

 

NCI BUILDING SYSTEMS, INC.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

“ADJUSTED” EARNINGS PER SHARE COMPARISON

(Unaudited)

 

     Fiscal Three Months
Ended		  
     November 2,
2008		     October 28,
2007		  
    

Earnings per diluted share, GAAP basis

    $ 1.26     $ 1.27  

Effect of convertible notes

      —    (1)     0.03  (1)
                

“Adjusted” diluted earnings per share (A)

    $ 1.26     $ 1.30  
                

 

     Fiscal Year Ended  
     November 2,
2008		     October 28,
2007		  
    

Earnings per diluted share, GAAP basis

    $ 4.05     $ 3.06  

Effect of convertible notes

      —    (1)     0.15  (1)
                

“Adjusted” diluted earnings per share (A)

    $ 4.05     $ 3.21  
                

 

(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) Dilutive impact for the three months ended October 28, 2007 of 489,336 shares and for the year ended October 28, 2007 of 922,123 shares of the Company’s convertible notes as if they were converted during the period.

 

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NCI Building Systems Reports Fourth-Quarter Results

Page 12

December 10, 2008

 

NCI Building Systems, Inc.

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

(Unaudited)

(In thousands)

 

     4th Qtr 2008     *     4th Qtr 2007
(As reclassified)		     *     Inc/(Dec)     %
Change		     YTD
4th Qtr 2008		     *     YTD
4th Qtr 2007
(As reclassified)		     *     Inc/(Dec)     %
Change		  

Metal Coil Coating

                         

Total Sales

    72,479     12 %   77,205     14 %   (4,726 )   -6 %   305,657     14 %   272,543     14 %   33,114     12 %

Intersegment

    (50,082 )     (54,140 )     4,058     -7 %   (208,700 )     (188,960 )     (19,740 )   10 %
                                        

Third Party Sales

    22,397     4 %   23,065     5 %   (668 )   -3 %   96,957     5 %   83,583     5 %   13,374     16 %

Operating Income

    8,621     38 %   6,567     28 %   2,054     31 %   29,381     30 %   25,136     30 %   4,245     17 %

Metal Components

                         

Total

    201,878     33 %   189,242     34 %   12,636     7 %   715,255     34 %   663,331     34 %   51,924     8 %

Intersegment

    (33,043 )     (28,646 )     (4,397 )   15 %   (115,245 )     (101,709 )     (13,536 )   13 %
                                        

Third Party Sales

    168,835     33 %   160,596     35 %   8,239     5 %   600,010     34 %   561,622     35 %   38,388     7 %

Operating Income

    25,227     15 %   19,069     12 %   6,158     32 %   82,094     14 %   49,609     9 %   32,485     65 %

Engineered Building Systems

                         

Total

    331,767     55 %   291,363     52 %   40,404     14 %   1,110,534     52 %   1,021,544     52 %   88,990     9 %

Intersegment

    (14,068 )     (11,450 )     (2,618 )   23 %   (43,342 )     (41,681 )     (1,661 )   4 %
                                        

Third Party Sales

    317,699     63 %   279,913     60 %   37,786     13 %   1,067,192     61 %   979,863     60 %   87,329     9 %

Operating Income

    33,607     11 %   38,427     14 %   (4,820 )   -13 %   107,851     10 %   113,265     12 %   (5,414 )   -5 %

Consolidated

                         

Total

    606,124     100 %   557,810     100 %   48,314     9 %   2,131,446     100 %   1,957,418     100 %   174,028     9 %

Intersegment

    (97,193 )     (94,236 )     (2,957 )   3 %   (367,287 )     (332,350 )     (34,937 )   11 %
                                        

Third Party Sales

    508,931     100 %   463,574     100 %   45,357     10 %   1,764,159     100 %   1,625,068     100 %   139,091     9 %

Operating Income

    50,987     10 %   47,779     10 %   3,208     7 %   154,710     9 %   131,734     8 %   22,976     17 %

 

* During the fourth quarter of fiscal 2008, we changed reporting structure and management team responsibilities to better align certain of NCI’s products to respond effectively to current market opportunities. As a result of the change, we have transferred certain segment activities within the Metal components and Engineered building systems segments in fiscal 2008. Segment information for fiscal 2007 has been reclassified to conform to the fiscal 2008 segment designations.

 

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NCI Building Systems Reports Fourth-Quarter Results

Page 13

December 10, 2008

 

NCI Building Systems, Inc.

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

(Unaudited)

(In thousands)

 

     3rd Qtr 2008
(As reclassified)		     *     3rd Qtr 2007
(As reclassified)		     *     Inc/(Dec)     %
Change		     YTD
3rd Qtr 2008
(As reclassified)		     *     YTD
3rd Qtr 2007
(As reclassified)		     *     Inc/(Dec)     %
Change		  

Metal Coil Coating

                         

Total Sales

    90,732     15 %   72,275     14 %   18,457     26 %   233,178     15 %   195,338     14 %   37,840     19 %

Intersegment

    (62,842 )     (49,013 )     (13,829 )   28 %   (158,618 )     (134,820 )     (23,798 )   18 %
                                        

Third Party Sales

    27,890     6 %   23,262     5 %   4,628     20 %   74,560     6 %   60,518     5 %   14,042     23 %

Operating Income

    11,360     41 %   8,165     35 %   3,195     39 %   20,760     28 %   18,569     31 %   2,191     12 %

Metal Components

                         

Total

    202,826     35 %   178,312     34 %   24,514     14 %   513,377     34 %   474,089     34 %   39,288     8 %

Intersegment

    (34,367 )     (26,849 )     (7,518 )   28 %   (82,202 )     (73,063 )     (9,139 )   13 %
                                        

Third Party Sales

    168,459     35 %   151,463     35 %   16,996     11 %   431,175     34 %   401,026     35 %   30,149     8 %

Operating Income

    32,174     19 %   14,153     9 %   18,021     127 %   56,867     13 %   30,540     8 %   26,327     86 %

Engineered Building Systems

                         

Total

    292,715     50 %   271,151     52 %   21,564     8 %   778,767     51 %   730,181     52 %   48,586     7 %

Intersegment

    (11,468 )     (11,795 )     327     -3 %   (29,274 )     (30,231 )     957     -3 %
                                        

Third Party Sales

    281,247     59 %   259,356     60 %   21,891     8 %   749,493     60 %   699,950     60 %   49,543     7 %

Operating Income

    28,514     10 %   33,575     13 %   (5,061 )   -15 %   74,244     10 %   74,838     11 %   (594 )   -1 %

Consolidated

                         

Total

    586,273     100 %   521,738     100 %   64,535     12 %   1,525,322     100 %   1,399,608     100 %   125,714     9 %

Intersegment

    (108,677 )     (87,657 )     (21,020 )   24 %   (270,094 )     (238,114 )     (31,980 )   13 %
                                        

Third Party Sales

    477,596     100 %   434,081     100 %   43,515     10 %   1,255,228     100 %   1,161,494     100 %   93,734     8 %

Operating Income

    55,715     12 %   42,247     10 %   13,468     32 %   103,723     8 %   83,955     7 %   19,768     24 %

 

* During the fourth quarter of fiscal 2008, we changed reporting structure and management team responsibilities to better align certain of NCI’s products to respond effectively to current market opportunities. As a result of the change, we have transferred certain segment activities within the Metal components and Engineered building systems segments in fiscal 2008. Segment information for fiscal 2007 has been reclassified to conform to the fiscal 2008 segment designations.

 

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NCI Building Systems Reports Fourth-Quarter Results

Page 14

December 10, 2008

 

NCI Building Systems, Inc.

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

(Unaudited)

(In thousands)

 

     2nd Qtr 2008
(As reclassified)		     *     2nd Qtr 2007
(As reclassified)		     *     Inc/(Dec)     %
Change		     YTD
2nd Qtr 2008
(As reclassified)		     *     YTD
2nd Qtr 2007
(As reclassified)		     *     Inc/(Dec)     %
Change		  

Metal Coil Coating

                         

Total Sales

    80,171     16 %   63,844     14 %   16,327     26 %   142,446     15 %   123,063     14 %   19,383     16 %

Intersegment

    (52,883 )     (43,019 )     (9,864 )   23 %   (95,776 )     (85,807 )     (9,969 )   12 %
                                        

Third Party Sales

    27,288     7 %   20,825     6 %   6,463     31 %   46,670     6 %   37,256     5 %   9,414     25 %

Operating Income

    6,705     25 %   5,761     28 %   944     16 %   9,400     20 %   10,404     28 %   (1,004 )   -10 %

Metal Components

                         

Total

    165,384     33 %   149,684     34 %   15,700     10 %   310,551     33 %   295,777     34 %   14,774     5 %

Intersegment

    (26,031 )     (23,376 )     (2,655 )   11 %   (47,835 )     (46,214 )     (1,621 )   4 %
                                        

Third Party Sales

    139,353     33 %   126,308     34 %   13,045     10 %   262,716     34 %   249,563     34 %   13,153     5 %

Operating Income

    15,171     11 %   7,548     6 %   7,623     101 %   24,693     9 %   16,387     7 %   8,306     51 %

Engineered Building Systems

                         

Total

    259,653     51 %   229,861     52 %   29,792     13 %   486,052     52 %   459,030     52 %   27,022     6 %

Intersegment

    (10,151 )     (9,082 )     (1,069 )   12 %   (17,806 )     (18,436 )     630     -3 %
                                        

Third Party Sales

    249,502     60 %   220,779     60 %   28,723     13 %   468,246     60 %   440,594     61 %   27,652     6 %

Operating Income

    25,292     10 %   17,315     8 %   7,977     46 %   45,730     10 %   41,263     9 %   4,467     11 %

Consolidated

                         

Total

    505,208     100 %   443,389     100 %   61,819     14 %   939,049     100 %   877,870     100 %   61,179     7 %

Intersegment

    (89,065 )     (75,477 )     (13,588 )   18 %   (161,417 )     (150,457 )     (10,960 )   7 %
                                        

Third Party Sales

    416,143     100 %   367,912     100 %   48,231     13 %   777,632     100 %   727,413     100 %   50,219     7 %

Operating Income

    29,512     7 %   17,475     5 %   12,037     69 %   48,008     6 %   41,708     6 %   6,300     15 %

 

* During the fourth quarter of fiscal 2008, we changed reporting structure and management team responsibilities to better align certain of NCI’s products to respond effectively to current market opportunities. As a result of the change, we have transferred certain segment activities within the Metal components and Engineered building systems segments in fiscal 2008. Segment information for fiscal 2007 has been reclassified to conform to the fiscal 2008 segment designations.

 

- MORE -

NCI Building Systems Reports Fourth-Quarter Results

Page 15

December 10, 2008

 

NCI Building Systems, Inc.

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

(Unaudited)

(In thousands)

 

     1st Qtr 2008
(As reclassified)		     *     1st Qtr 2007
(As reclassified)		     *     Inc/(Dec)     %
Change		  

Metal Coil Coating

             

Total Sales

    62,275     14 %   59,219     14 %   3,056     5 %

Intersegment

    (42,893 )     (42,788 )     (105 )   0 %
                    

Third Party Sales

    19,382     5 %   16,431     5 %   2,951     18 %

Operating Income

    2,695     14 %   4,643     28 %   (1,948 )   -42 %

Metal Components

             

Total

    145,167     34 %   146,093     33 %   (926 )   -1 %

Intersegment

    (21,804 )     (22,838 )     1,034     -5 %
                    

Third Party Sales

    123,363     34 %   123,255     34 %   108     0 %

Operating Income

    9,522     8 %   8,839     7 %   683     8 %

Engineered Building Systems

             

Total

    226,399     52 %   229,169     53 %   (2,770 )   -1 %

Intersegment

    (7,655 )     (9,354 )     1,699     -18 %
                    

Third Party Sales

    218,744     61 %   219,815     61 %   (1,071 )   0 %

Operating Income

    20,438     9 %   23,948     11 %   (3,510 )   -15 %

Consolidated

             

Total

    433,841     100 %   434,481     100 %   (640 )   0 %

Intersegment

    (72,352 )     (74,980 )     2,628     -4 %
                    

Third Party Sales

    361,489     100 %   359,501     100 %   1,988     1 %

Operating Income

    18,496     5 %   24,233     7 %   (5,737 )   -24 %

 

* During the fourth quarter of fiscal 2008, we changed reporting structure and management team responsibilities to better align certain of NCI’s products to respond effectively to current market opportunities. As a result of the change, we have transferred certain segment activities within the Metal components and Engineered building systems segments in fiscal 2008. Segment information for fiscal 2007 has been reclassified to conform to the fiscal 2008 segment designations.

 

- END -