NCI Building Systems Inc.’s (NCS) adjusted loss for the first quarter of fiscal 2011 remained unchanged compared with the year-ago level of 99 cents per share. But the loss exceeded the Zacks Consensus Estimate of a loss of 92 cents.

The loss per share excluded a non-cash conversion charge and other special charges. Including these charges, reported loss per share was $1.14 versus $1.04 during the corresponding period of 2010.

The company’s sales were $190.1 million, up 4.3% from $182.2 million during the prior-year period. This improvement came on the back of strong Coatings and Components groups, despite a decline in nonresidential construction activity. However, gross margin for the period deteriorated to 17.6% from 17.8% last year.

Segment Performance

The Engineered Building segment’s revenue dropped marginally to $101.4 million from prior-year’s $101.9 million due to lower volumes. The segment reported an operating loss of $5.4 million in the quarter compared with $5.8 million a year ago as the segment realized year-over-year bookings growth of 27%. Due to the improvement in bookings, the company expects a strong second half for the current fiscal year.

Revenue from the Metal Coil Coating segment increased 8.5% year over year to $42.3 million from $39 million during the same period in 2010. Operating profit improved 10.4% to $3.4 million in the quarter, despite volatile steel prices and numerous deferred projects due to bad weather.

The Metal Component segment generated revenues of $90.3 million, up 4% year over year from $86.8 million. Demand for retrofit roofing products and energy-efficient insulated metal panels contributed to the improvement in sales. However, profit for the segment declined by almost 80% to $353,000.

Financial Update

As of January 30, 2011, NCI Building Systems had cash and cash equivalents of $65.2 million, down from $77.4 million as of October 31, 2010. The company generated cash flow of $132,000 from operating activities during the quarter versus a cash outflow of $19.2 million during the same quarter of 2010. NCI Building Systems incurred $2.2 million of capital expenditure during the quarter.

 
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