NCI Third Quarter Results Top Estimates

(RTTNews) - Metal products maker NCI Building Systems, Inc. (NCS) reported Monday a profit for the third quarter compared to a loss last year, reflecting improved margins, lower expenses and double-digit sales growth amid increases across its three operating segments. Both adjusted earnings per share and quarterly sales topped analysts' expectations.

The company noted that each segment achieved year-over-year double-digit growth in quarterly revenue and operating income as a result of its growth initiatives, commercial discipline and market growth.

"We delivered solid results in the third quarter, rebounding nicely after a weak first half as conditions improved and we entered our seasonally stronger second half. Importantly, we exceeded fiscal 2013's year to date revenue by 8% and realized an improvement in pricing due to the commercial discipline displayed across all of our divisions since last August," Chairman, President and CEO Norman Chambers said in a statement.

The Houston, Texas-based maker of metal products for the nonresidential construction industry posted net income to stockholders of $6.09 million or $0.08 per share for the third quarter, compared to a net loss of $12.19 million or $0.19 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $7.19 million or $0.10 per share, compared to $1.05 million or $0.02 per share in the year-ago quarter.

On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.09 per share for the quarter. Analysts' estimates typically exclude special items.

Total third party sales for the quarter grew 14.0 percent to $361.63 million from $317.20 million in the same quarter last year, and topped six Wall Street analysts' consensus estimate of $352.68 million.

Total sales were up 14.6 percent to $426.83 million from $375.86 million last year.

Gross margin for the quarter expanded 90 basis points to 22.0 percent, primarily driven by the impact of value pricing and increased operating leverage. Engineering, selling, general administrative as a percent of revenues improved 160 basis points to 18.2 percent from last year.

Quarter-end backlog grew 5.6 percent to $337.2 million from last year.

Looking ahead to fiscal 2014, the company continues to expect growth in new low rise nonresidential starts to be in the mid-single digits, and believes it will continue to build momentum that will take it into 2015.

"As growth in the nonresidential construction market continues to gain traction, we are committed to maintaining commercial discipline and operational efficiency to maximize the leverage inherent in our integrated business model," Chambers added.

NCI closed Monday's regular trading session at $20.09, down $0.11 or 0.54% on a volume of 0.44 million shares.