NCI Building Systems Achieves Earnings Guidance for First-Quarter Fiscal 2007.

Publication: PR Newswire

Bookmark this article Print this article Link to this article Email this article Digg It! Add to del.icio.us RSS

COPYRIGHT 2007 PR Newswire Association LLC

Affirms Fiscal 2007 Earnings Guidance in Range of $4.55 to $4.80

Announces Board Authorization of New Stock Repurchase Plan of up to 1 Million Shares

HOUSTON, Feb. 28 /PRNewswire-FirstCall/ -- NCI Building Systems, Inc. today announced financial results for the first quarter ended January 28, 2007. Sales increased 23% for the quarter to $359.3 million from $293.3 million for the first quarter of fiscal 2006. Net income for the first quarter of fiscal 2007 was $10.5 million, or $0.49 per diluted share, which included a $0.03 dilutive impact from NCI's 2.125% Convertible Senior Subordinated Notes (the "Notes"). Excluding the impact of the Notes, adjusted net income per diluted share was $0.52, within the Company's range of guidance for the quarter. Net income for the first quarter of fiscal 2006 was $12.9 million, or $0.62 per diluted share, which included a $0.02 dilutive impact from the Notes.

Norm Chambers, President and Chief Executive Officer of NCI, commented, "We were pleased to achieve our earnings guidance for the first quarter, a period about which we were correct to be cautious. Our Engineered Building Systems segment drove our results for the quarter, with sales growth of more than 80% and a more than doubling of operating income. This growth supported increased intersegment sales with both the Metal Components and Metal Coil Coating segments, which was more than offset by the impact of lower third- party sales at both of these businesses.

"While the business outlook for fiscal 2007 remains attractive, we now expect the combination of excess industry inventory and winter weather will affect our second quarter as it did the first, producing similar operating results. Consistent with our long-term focus on cost control and the value of a strong financial position, we have initiated an overhead expense reduction program targeting $15 million to $20 million for fiscal 2007. We are also reducing our capital expenditure plan for fiscal 2007 to approximately $50 million from our original budget of approximately $60 million. This latter decision reflects our determination to achieve our debt reduction goals, while maintaining stock repurchase flexibility and our commitment to the major manufacturing and engineering automation projects primarily being funded by our fiscal...

Read the full article for free courtesy of your local library.