NCI (NCS) Incurs Q1 Loss, Forms Cornerstone Building Brands
Zacks Investment Research | May 08, 2019 10:30PM ET
NCI Building Systems, Inc. (NYSE:NCS) incurred a loss of 28 cents (on an adjusted basis) in first-quarter 2019 (ended Mar 30). This compares unfavorably with earnings of 14 cents in the three months ended Jan 28, 2018.
Notably, post the competition of the Ply Gem merger, the combined company moved to a calendar year-end reporting schedule. As a result, the financial results for first-quarter 2019 are not comparable with first-quarter fiscal 2018.
On Apr 11, 2019, NCI announced that it will operate as “Cornerstone Building Brands” and trade under the ticker symbol "CNR" on the New York Stock Exchange beginning May 24, 2019.
First-Quarter Highlights
The company generated $1,064.8 million of total revenues in the quarter under review. Although January and February sales volumes were negatively impacted by poor weather conditions across many of the key markets served by the company, demand improved as it moved through March. Sales rose 152.7% from $421.3 million recorded in the three months ended Jan 28, 2018. This improvement was driven by the addition of Ply Gem's sales.
Gross margin was 17.5% in the quarter versus 21.8% in the three months ended Jan 28, 2018, owing to $16.2 million of non-cash charges associated with purchase accounting for inventory related to the November 2018 merger of Ply Gem and the February 2019 acquisition of Environmental Materials, LLC.
Adjusted operating income was $7.4 million in first-quarter 2019 compared with $19.3 million in first-quarter fiscal 2018.
Adjusted EBITDA came in at $71.7 million compared with $32.4 million in the first quarter of fiscal 2018.
NCI Building Systems, Inc. Price, Consensus and EPS Surprise
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