NCI Building Systems (NYSE: NCS) reported Q3 EPS of $0.27, $0.05 worse than the analyst estimate of $0.32. Revenue for the quarter came in at $469.4 million versus the consensus estimate of $495.18 million.

Outlook and Guidance

The Company\'s two ongoing cost savings initiatives in manufacturing consolidation and ESG&A are expected to generate $30 to $40 million in cost savings by the end of 2018, of which $12 million was realized in fiscal 2016. During fiscal 2017, these two initiatives are anticipated to generate an incremental $10.0 million in realized cost savings. During the fourth quarter of fiscal 2017, management accelerated $7 to $9 million in annualized cost savings originally planned for fiscal 2018, both accelerating and further ensuring the achievement of the total cost savings range anticipated for these programs.

For the fourth quarter of fiscal 2017, NCI expects revenues to be in the range of $470 to $500 million and Adjusted EBITDA to be in the range of $48 - $62 million. The fourth quarter EBITDA range includes an estimated impact of $3 to $8 million related to potential temporary disruptions from Hurricane Harvey, primarily resulting from the impact to customer job sites and their readiness for product delivery. For the full year fiscal 2017, the Company is revising its expected revenue range to $1.75 to $1.78 billion and expects fiscal 2017 Adjusted EBITDA to be $162 to $176 million for the year. The downward revisions to the fourth quarter, as well as annual revenues and Adjusted EBITDA are a result of the softer market activity seen in the third quarter, which is expected to continue into the fourth quarter, particularly in the legacy Components segment and the impact of Hurricane Harvey.

GUIDANCE:

NCI Building Systems sees FY2017 revenue of $1.75-1.78 billion, versus the consensus of $1.83 billion.

Third Quarter 2017 Financial and Operational Highlights:

• Sales rose 1.5% to $469.4 million for the quarter, compared to $462.4 million in the prior year\'s third quarter, driven by the successful pass-through of higher materials costs
• Gross profit for the quarter was $115.0 million or 24.5% of revenues, compared to $128.0 million or 27.7% of revenues in the prior year's third quarter
• Net income was $18.2 million for the quarter, compared to $23.7 million in last year's third quarter. Adjusted Net Income was $19.6 million this quarter, compared to $24.5 million in the prior year\'s third quarter
• Net income per diluted common share for the quarter was $0.25 compared to $0.32 in the prior year's third quarter. Adjusted Net Income was $0.27 per diluted common share, compared to $0.33 in the prior year's third quarter
• Adjusted EBITDA was $50.4 million or 10.7% of revenue for the quarter, compared to Adjusted EBITDA of $57.8 million or 12.5% of revenue in the prior year\'s third quarter
• Total consolidated backlog increased to $580.7 million, up 4.2% year-over-year

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