Delaware | 1-14315 | 76-0127701 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
10943 North Sam Houston Parkway West Houston, Texas | 77064 |
(Address of principal executive offices) | (Zip Code) |
£ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
£ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
£ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
£ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits. |
Exhibit Number | Description | |
99.1 | ||
99.2 |
NCI BUILDING SYSTEMS, INC. | |||
By: | /s/ Bradley S. Little | ||
Name: | Bradley S. Little | ||
Title: | Vice President, Finance and Chief Accounting Officer, Interim Chief Financial Officer and Treasurer |
• | 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 |
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, 2018 | July 30, 2017 | July 29, 2018 | July 30, 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 | |||||||
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, 2018 | October 29, 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, 2018 | July 30, 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, 2018 | July 30, 2017 | July 29, 2018 | July 30, 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, 2018 | July 30, 2017 | July 29, 2018 | July 30, 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, 2018 | July 30, 2017 | July 29, 2018 | July 30, 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 | % | |||||||||
% of Sales | % of Sales | % of Sales | % of Sales | ||||||||||||||||||||||
External 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 | |||||||||||||||||||||||||
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) | |||||||||||||||||||||||||
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) | |||||||||||||||||||||||||
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 EBIDTA | $ | 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 Three Months Ended | Fiscal Nine Months Ended | Trailing Twelve Months | |||||||||||||||||||
October 29, 2017 | January 28, 2018 | April 29, 2018 | July 29, 2018 | July 29, 2018 | July 29, 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 Three Months Ended | Fiscal Nine Months Ended | Trailing Twelve Months | |||||||||||||||||||
October 30, 2016 | January 29, 2017 | April 30, 2017 | July 30, 2017 | July 30, 2017 | July 30, 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 Three Months Ended | Fiscal Nine Months Ended | Trailing Twelve Months | |||||||||||||||||||
October 29, 2017 | January 28, 2018 | April 29, 2018 | July 29, 2018 | July 29, 2018 | July 29, 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 Three Months Ended | Fiscal Nine Months Ended | Trailing Twelve Months | |||||||||||||||||||
October 30, 2016 | January 29, 2017 | April 30, 2017 | July 30, 2017 | July 30, 2017 | July 30, 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 Three Months Ended | Fiscal Nine Months Ended | Trailing Twelve Months | |||||||||||||||||||
October 29, 2017 | January 28, 2018 | April 29, 2018 | July 29, 2018 | July 29, 2018 | July 29, 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 Three Months Ended | Fiscal Nine Months Ended | Trailing Twelve Months | |||||||||||||||||||
October 30, 2016 | January 29, 2017 | April 30, 2017 | July 30, 2017 | July 30, 2017 | July 30, 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 Three Months Ended | Fiscal Nine Months Ended | Trailing Twelve Months | |||||||||||||||||||
October 29, 2017 | January 28, 2018 | April 29, 2018 | July 29, 2018 | July 29, 2018 | July 29, 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 Three Months Ended | Fiscal Nine Months Ended | Trailing Twelve Months | |||||||||||||||||||
October 30, 2016 | January 29, 2017 | April 30, 2017 | July 30, 2017 | July 30, 2017 | July 30, 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 Three Months Ended | Fiscal Nine Months Ended | Trailing Twelve Months | |||||||||||||||||||
October 29, 2017 | January 28, 2018 | April 29, 2018 | July 29, 2018 | July 29, 2018 | July 29, 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 Three Months Ended | Fiscal Nine Months Ended | Trailing Twelve Months | |||||||||||||||||||
October 30, 2016 | January 29, 2017 | April 30, 2017 | July 30, 2017 | July 30, 2017 | July 30, 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 Three Months Ended | Fiscal Nine Months Ended | Trailing Twelve Months | |||||||||||||||||||
October 29, 2017 | January 28, 2018 | April 29, 2018 | July 29, 2018 | July 29, 2018 | July 29, 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 Three Months Ended | Fiscal Nine Months Ended | Trailing Twelve Months | |||||||||||||||||||
October 30, 2016 | January 29, 2017 | April 30, 2017 | July 30, 2017 | July 30, 2017 | July 30, 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 | ) |
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