NCI Building Systems Announces New $50 Million Stock Repurchase Program

HOUSTON, March 7, 2018 /PRNewswire/ -- NCI Building Systems, Inc. (NYSE: NCS) (the "Company") announced today that its Board of Directors has authorized a new stock repurchase program for up to an aggregate of $50 million of the Company's outstanding common stock. As of January 28, 2018, the Company had repurchased approximately $46.7 million of its common stock (2.7 million shares) under the previously announced October 2017 stock repurchase program.  

Mr. Donald R. Riley, President and Chief Executive Officer, commented, "Our Board of Directors and Management team remain committed to returning value to our shareholders, as well as the prudent management of our capital structure. We continue to generate strong cash flow from our operations and have three areas of focus for investing this capital – funding our growth initiatives both organic and inorganic, repayment of debt and share repurchases. Over the last two years, we have utilized over $100 million of our cash flow to repurchase shares. We believe it is good corporate policy to continually have an approved repurchase program available."

Under the stock repurchase program, the Company may repurchase shares in open-market purchases in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended, in privately negotiated purchases or otherwise.  The Company may commence such repurchases immediately, subject to compliance with applicable securities laws. The Company may enter into a pre-arranged stock trading plan in accordance with the guidelines specified under Rule 10b5-1 to effectuate the Company's new stock repurchase plan. The Company expects to finance any repurchases from a combination of cash on hand and cash provided by operating activities.  The timing and method of any repurchases, which will depend on a variety of factors, including market conditions, are subject to results of operations, financial conditions, cash requirements and other factors, and may be suspended or discontinued at any time. 

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "anticipate," "plan," "intend," "foresee," "guidance," "potential," "expect," "should," "will" "continue," "could," "estimate," "forecast," "goal," "may," "objective," "predict," "projection," or similar expressions are intended to identify forward-looking statements in this press release. These forward-looking statements reflect the Company's current expectations and/or beliefs concerning future events. The forward-looking statements in this press release are subject to a number of risks and uncertainties that may cause the Company's actual performance to differ materially from that projected in such statements. Such forward looking statements include, but are not limited to, the Company's belief in its strong operational and financial performance, as well as its expected ability to generate significant cash flow. Among the factors that could cause actual results to differ materially include, but are not limited to, industry cyclicality and seasonality and adverse weather conditions; challenging economic conditions affecting the nonresidential construction industry; volatility in the U.S. economy and abroad, generally, and in the credit markets; substantial indebtedness and our ability to incur substantially more indebtedness; our ability to generate significant cash flow required to service our indebtedness; our ability to comply with the financial tests and covenants in our existing and future debt obligations; operational limitations or restrictions in connection with our debt; increases in interest rates; recognition of asset impairment charges; commodity price increases and/or limited availability of raw materials, including steel; costs related to maintenance or replacement of our ERP system; our ability to make strategic acquisitions accretive to earnings; retention and replacement of key personnel; our ability to carry out our restructuring plans and to fully realize the expected cost savings; enforcement and obsolescence of intellectual property rights; fluctuations in customer demand; costs related to environmental clean-ups and liabilities; competitive activity and pricing pressure; increases in energy prices; volatility of the Company's stock price; dilutive effect on the Company's common stockholders of potential future sales of the Company's common stock held by our sponsor; substantial governance and other rights held by our sponsor; breaches of our information system security measures and damage to our major information management systems; hazards that may cause personal injury or property damage, thereby subjecting us to liabilities and possible losses, which may not be covered by insurance; changes in laws or regulations, including the Dodd-Frank Act; the timing and amount of our stock repurchases; and costs and other effects of legal and administrative proceedings, settlements, investigations, claims and other matters. See also the "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended October 29, 2017 and other filings we make with the SEC, which identify 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. The Company expressly disclaims any obligation to release publicly any updates or revisions to these forward-looking statements, whether as a result of new information, future events, or otherwise.

About NCI Building Systems

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 manufacturing facilities across the United States, Canada, and Mexico with additional sales and distribution offices throughout the United States and Canada. For more information visit www.ncibuildingsystems.com.

Contact:
K. Darcey Matthews
Vice President, Investor Relations
281-897-7785

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SOURCE NCI Building Systems, Inc.