NCI Building Systems (NCS) Misses Q1 EPS by 31c, Revenues Beat

NCI Building Systems (NYSE: NCS) reported Q1 EPS of ($0.28), $0.31 worse than the analyst estimate of $0.03. Revenue for the quarter came in at $1.06 billion versus the consensus estimate of $1.02 billion.

• Net sales of $1,064.8 million
• Gross profit of $185.9 million, or 17.5% of sales
• Net loss of $60.0 million and adjusted net loss of $35.2 million
• Adjusted EBITDA of $71.7 million, or 6.7% of net sales

"We are pleased to announce our first quarter results following the public release of our new name, Cornerstone Building Brands, which will become effective following the receipt of shareholder approval at the Company's upcoming annual meeting," said the Company's Chairman and Chief Executive Officer James S. Metcalf. "During the first quarter, Cornerstone Building Brands made continued progress on our strategic and operational financial objectives despite fluctuations in both commercial and residential demand. While January and February sales volumes were negatively impacted by poor weather conditions across many of our key markets, demand improved meaningfully as we moved through March. We have also successfully taken pricing actions to offset higher raw material, freight and labor costs. Coupled with our ongoing cost savings initiatives, we expect to drive year-over-year margin improvement as we move into the second and third quarters of the year."

Mr. Metcalf continued, "Our various cost saving initiatives, including our merger synergies, remain on track. At the same time, we continue to find new ways to take advantage of scale and purchasing power, while providing a broader product offering to our customers as demonstrated by our recent acquisition of Environmental StoneWorks. We are also taking steps to improve our working capital utilization, which we believe will further enhance our free cash flow generation helping us achieve our leverage targets and maximize the growth potential of the Company."

For earnings history and earnings-related data on NCI Building Systems (NCS) click here.

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