Stock Monitor: Apogee Enterprises Post Earnings Reporting
LONDON, UK / ACCESSWIRE / January 05, 2018 / Active-Investors.com has just released a free earnings report on NCI Building Systems, Inc. (NYSE: NCS) ("NCI Building"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=NCS. The Company reported its fourth quarter and full fiscal year 2017 operating results on December 06, 2017. The maker of products used in commercial buildings surpassed earnings expectations and provided guidance for the upcoming quarter. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Apogee Enterprises, Inc. (NASDAQ: APOG), which also belongs to the Industrial Goods sector as the Company NCI Building Systems. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, NCI Building Systems most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=NCS
Earnings Highlights and Summary
For the fourth quarter ended October 29, 2017, NCI Building's sales grew 1.8% to $488.7 million from $480.3 million in Q4 FY16, primarily due to a continued commercial discipline in the pass-through of higher material costs.
The Company's tonnage volumes for the Buildings segment were significantly lower on a y-o-y basis in the reported quarter, resulting from the impact of hurricanes-related disruptions, customers' access to job sites, and transportation delays. NCI Building estimated that sales were reduced due to the hurricanes by approximately $16.0 million for Q4 FY17.
NCI Building's gross profit was $116.3 million in Q4 FY17, down from $120.8 million in Q4 FY16. The Company's gross profit margins declined to 23.8% for the reported quarter from 25.2% in the year-earlier same quarter, primarily as a result of lower volumes in the Buildings segment, an uneven production flow, and increased transportation costs. The Company estimated that gross profits were impacted by the hurricanes by approximately $8.3 million for the reported quarter.
During Q4 FY17, NCI Building's operating income was $33.3 million compared to $39.4 million in Q4 FY16. The Company's adjusted operating income was $41.3 million in the reported quarter versus $40.9 million in the year-earlier comparable quarter. The Company estimated that adjusted operating income was impacted by the hurricanes by approximately $8.5 million for the reported quarter.
NCI Building's net income applicable to common shares was $17.4 million, or $0.25 per diluted common share, in Q4 FY17 compared to $19.0 million, or $0.27 per diluted common share, in Q4 FY16. The Company reported an adjusted net income of $22.3 million, or $0.32 per diluted common share, compared to $19.8 million, or $0.28 per diluted common share, in the year-earlier corresponding quarter, topping analysts' expectations of $0.27 per share.
Segment Performance
During Q4 FY17, the Company's Buildings segment's third-party sales were $178.2 million compared to $196.6 million in Q4 FY16, as a result of significantly lower volumes during the reported period, which were largely driven by hurricane-related disruptions. The segment's operating income decreased to $13.0 million in Q4 FY17 compared to $22.8 million in Q4 FY16, while its adjusted operating income decreased to $13.7 million in the reported quarter compared to $23.1 million in the year-earlier same quarter. The y-o-y drop in the Building segment's operating margins was largely related to lower plant utilization, driven by lower volumes during the period, uneven production flow, and increased transportation costs.
For Q4 FY17, NCI Building's Components segment generated $281.3 million in third-party sales, reflecting a growth of 10.3% from $255.1 million in Q4 FY16, and which was led by growth in the insulated panel product lines, as well as commercial pricing discipline and higher volumes across the segment. During Q4 FY17, the segment's operating income was $32.8 million compared to $31.1 million in Q4 FY16. The segment's adjusted operating income was $39.7 million versus $31.6 million in the year-earlier comparable quarter. The Components segment's profitability was improved by higher volumes and capacity utilization across the legacy single skin product lines and a strong product mix in insulated panel sales.
NCI Building's Coatings segment's third-party sales were $29.2 million in Q4 FY17 compared to $28.6 million in Q4 FY16. The segment's operating income was $6.6 million for the reported quarter compared to $7.0 million in the year-earlier corresponding quarter. The Coatings segment's operating margins were impacted by lower third-party volumes, offset by improved commercial discipline and higher internal volumes.
Cash Matters
NCI Building's cash and cash equivalents were $65.7 million at the end of Q4 FY17 compared to $65.4 million at the end of Q4 FY16. The Company's cash and cash equivalents increased sequentially from $45.9 million at the end of Q3 FY17 as a result of a strong operating cash flow, offset by $37.6 million of share repurchases during the period. NCI Building's net debt leverage ratio (net debt/EBITDA) was 2.0x at the end of the reported quarter.
Cost Initiatives and Guidance
NCI Building stated that its two cost savings initiatives in manufacturing and ESG&A were ahead of schedule at the end of Q4 FY17. The Company is targeting an additional $40 million to $50 million in cost savings reductions and efficiencies by the end of 2020.
For the first quarter of the fiscal year 2018, NCI Building is forecasting revenues to be in the range of $390 million to $410 million, and adjusted EBITDA to be in the band of $24 million to $34 million.
Stock Performance Snapshot
January 04, 2018 - At Thursday's closing bell, NCI Building Systems' stock rose 1.04%, ending the trading session at $19.50.
Volume traded for the day: 456.88 thousand shares.
Stock performance in the last month - up 18.90%; previous three-month period - up 22.64%; past twelve-month period - up 21.12%; and year-to-date - up 1.04%
After yesterday's close, NCI Building Systems' market cap was at $1.31 billion.
Price to Earnings (P/E) ratio was at 25.36.
The stock is part of the Industrial Goods sector, categorized under the General Building Materials industry. This sector was up 0.7% at the end of the session.
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