NCI Building Systems Posts Loss In Q1 - Quick Facts

(RTTNews) - NCI Building Systems, Inc. (NCS), a manufacturer of exterior building products in North America, on Wednesday reported financial results for the quarter ended March 30, 2019.

In December 2018, NCI Building Systems announced a change to its fiscal year end from a four-four-five week period ending in October to a calendar year end reporting structure. As a result, the financial results for the first quarter 2019 are not comparable to the first quarter of fiscal year 2018.

Net loss applicable to common shares in the first quarter of 2019 was $60.0 million or $0.48 per share, compared to net income of $5.2 million or $0.08 per share in the three months ended January 28, 2018.

In addition to the acquisition and purchase accounting costs, net loss was impacted by $3.4 million in restructuring and impairment charges, partially offset by $8.7 million for the associated tax effect of these items.

Excluding items, adjusted net loss for the quarter was $0.28, compared to adjusted earnings of $0.14 per share in the quarter ended January 28, 2018.

Consolidated net sales for the quarter surged 152.7 percent to $1.06 billion from $421.3 million in the quarter ended January 28, 2018. The year-over-year improvement was primarily driven by the addition of Ply Gem's sales.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $0.03 per share for the quarter on revenues of $1.02 billion. Analysts' estimates typically exclude special items.

NCI Chairman and Chief Executive Officer James Metcalf said, "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."

On April 11, 2019, NCI Building Systems said it will change its name to Cornerstone Building Brands, Inc. and trade under the ticker symbol "CNR" on the New York Stock Exchange.

The change is expected to become effective following shareholder approval at the company's annual shareholder meeting being held on May 23, 2019.