NCI Building Systems (NCS) Boosts Q3 Outlook

As of May 31, 2016

As of July 18, 2016

Revenue

$435 - $455 million

$458 - $469 million

Gross Profit Margin

23.0% - 25.5%

26.5% - 28.0%

ESG&A Expenses

$74.5 - $77.5 million

$78.5 - $81.0 million

Adjusted EBITDA(1)

N/A

$53.0 - $63.0 million

Intangible Asset Amortization (Included in total D&A below)

$2.3 - $2.5 million

$2.3 - $2.5 million

Total Depreciation and Amortization

$10.5 - $11.5 million

$10.5 - $11.5 million

Interest Expense

$7.3 - $7.8 million

$7.3 - $7.8 million

Effective Tax Rate

32.0% – 35.0%

32.0% – 35.0%

Diluted Shares(2)

73.1 million

73.7 million

Capital Expenditures (annual)

$27 - $30 million

$27 - $30 million

Note: Information in the table above excludes special charges, if any, related to certain restructuring programs and similar matters.

(1) Adjusted EBITDA is not prepared in accordance with U.S. GAAP and should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax expense (benefit) and depreciation and amortization, adjusted for items broadly consisting of selected items which management does not consider representative of our ongoing operations and certain non-cash items of the Company. Management believes the use of Adjusted EBITDA assists investors in understanding the ongoing operating performance of the Company by presenting the financial results between periods on a more comparable basis. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as, or similar to, some of the adjustments in Adjusted EBITDA.

A reconciliation of the forecasted range for Adjusted EBITDA for the third quarter of fiscal 2016 is not included in this release due to the number of variables in the projected range for the third quarter of fiscal 2016 Adjusted EBITDA and because we are currently unable to quantify accurately certain amounts that would be required to be included in the GAAP measure or the individual adjustments for such reconciliation. In addition, we believe such reconciliation would imply a degree of precision that would be confusing or misleading to investors.

(2) The diluted common share guidance does not give effect to any potential share repurchase (or issuances) occurring after the date of this release.