NCI Building Systems Reports Third Quarter Fiscal 2011 Results

— Revenues Up 6.9% Year-Over-Year; Operating Income Up 6.1 Times —
— Operating Profitability Achieved by All Three Groups: Coatings, Components and Buildings —
— Adjusted EBITDA was $14.7 Million; Net Income was $2.6 Million —
— Bookings Were Up 42% Year-on-Year; Buildings Group Backlog Increased to $225 Million —

HOUSTON, TX — September 7, 2011 — NCI Building Systems, Inc. (NYSE: NCS) today reported financial results for the third quarter ended July 31, 2011.

Third Quarter 2011 Financial Results

“Our third quarter performance demonstrated our ability to drive significant earnings improvement from a relatively modest pick-up in demand from certain of our market sectors. Operating income increased more than six-fold on 6.9% year-over-year revenue growth, reflecting the strength of our integrated business model, which provides important efficiency advantages and resilience to fluctuations in material costs,” said Norman C. Chambers, Chairman, President and Chief Executive Officer. “This was the best quarterly performance that we have reported in the last two years, and it was achieved in a market in which volumes declined 15% as measured in square feet, according to McGraw-Hill data.”

Mr. Chambers continued, “Each of our business units achieved operating profitability in the third quarter. As anticipated, the Buildings group posted the greatest year-over-year progress benefitting from our continued emphasis on commercial discipline and our prior investments to upgrade our drafting and engineering processes. Bookings grew 24% sequentially and 42% year-over-year, and our backlog increased 7% sequentially to $225 million. For the first time in nearly three years, our Buildings group began to see a return of the more complex, higher-value projects that were previously an integral part of our business.

“Similar to the prior period, we experienced an approximate 30% increase in the velocity of converting our backlog to production in the third quarter, compared to the last several years. This resulted from the increasing percentage of ’book for production business‘ as well as our shortened delivery times.”

For the third quarter, sales were $262 million, up 6.9% from the $245 million reported in last year’s third quarter and a 16.2% sequential increase over the $226 million reported in the prior quarter. Gross profit margin was 21.7% compared to 20.5% in the year-ago third quarter and 22.5% in the prior quarter.

Engineering, selling, general and administrative expenses were $50.9 million, or 19.4% of revenues. This compares to $48.7 million, or 19.9% of revenues in last year’s third quarter, and $52.7 million, or 23.3% of revenues in the prior quarter. The Company posted an adjusted operating profit of $5.9 million compared to last year’s third quarter adjusted operating profit of $1.6 million and an adjusted operating loss of $0.5 million in the second quarter of fiscal 2011. Adjusted EBITDA, defined as earnings before interest, taxes, depreciation and amortization, and cash and other non-cash items, in accordance with the Company’s bank credit agreement was $14.7 million compared to $10.2 million in last year’s third quarter and $7.7 million for the 2011 second quarter.

For the third quarter, the Company reported net income of $2.6 million. The net loss applicable to common shares was $13.1 million, which included the accrual of preferred stock dividends and accretion of $9.2 million and a non-cash beneficial conversion feature charge of $6.5 million. This compares to a net loss of $16.5 million in the 2010 third quarter, which included the accrual of preferred stock dividends and accretion of $8.6 million and a non-cash beneficial conversion feature

charge of $4.6 million. In the 2011 second quarter, the net loss applicable to common shares was $9.2 million, which included the accrual of convertible preferred stock dividends and accretion of $6.3 million and a non-cash beneficial conversion feature benefit of $0.2 million.

For this year’s third quarter, the adjusted loss per diluted share, excluding the non-cash beneficial conversion charge, was $0.38; the reported net loss per diluted share was $0.71. This compares to an adjusted net loss per diluted share of $0.64 and a reported net loss per diluted share of $0.90 in last year’s third quarter, and an adjusted net loss per diluted share of $0.48 and a reported net loss per diluted share of $0.51 in the 2011 second quarter.

The weighted average number of common shares used in the calculation of third quarter 2011 per share amounts was 18.5 million compared to 18.3 million last year.

Inventory levels increased 10.5% over last year’s third quarter to $116.3 million, reflecting a lower volume of steel offset by higher prices. Annualized inventory turnover was 7.0 turns for the third quarter compared to 7.2 turns for the third quarter last year.

Capital expenditures were $14.7 million for the 9 month period, inclusive of $6.7 million associated with retooling two plants for the Insulated Metal Panel (IMP) product line. Net cash from operating activities was positive $5.4 million.

Third Quarter Segment Performance

The Company reported an adjusted operating profit of $5.9 million, which is reconciled with the reported GAAP operating income (loss) in the table below.

		For the Three Months Ended July 31, 2011
										Engineered
		Metal Coil				Metal				Building
		Coating				Components				Systems				Corporate				Consolidated
Operating income (loss), GAAP basis		$	5,219			$	6,545			$	7,877			$	(13,072	)		$	6,569
Asset recovery			—				93				—								(93	)
Restructuring recovery			—				—				(575	)			—				(575	)
“Adjusted” operating income (loss)(1)		$	5,219			$	6,452			$	7,302			$	(13,072	)		$	5,901

(1)		The Company discloses a tabular comparison of “Adjusted” operating income (loss), which is a non-GAAP measure because it is instrumental in comparing the results from period to period. “Adjusted” operating income (loss) should not be considered in insolation or as a substitute for operating income (loss) as reported on the face of our statement of operations.

although tonnage shipped declined compared to last year’s third quarter as a result of lower nonresidential starts. Through commercial discipline and cost containment, this segment maintained a reasonable operating margin despite lower operating leverage.

The Coatings group continued to successfully sell its products to end users outside of the nonresidential construction industry and posted an 11% increase in third-party sales. Operating income was essentially flat with the prior year as a result of margin pressures due to lower steel sales prices.

The Buildings group’s revenues increased 10% year-over-year, and operating profit was $7.9 million, representing a 353% improvement over the prior year. Performance resulted from the cost reduction initiatives and efficiency measures taken by the Company as well as commercial discipline in a rapidly changing steel price environment.

Market Commentary

Nonresidential construction activity measured in square feet declined significantly from the comparable period in 2010. McGraw-Hill reported that new construction activity measured in square feet was down 15% in the third quarter of the Company’s fiscal 2011 compared to the same period of 2010. For the first seven months of calendar 2011, however, NCI’s traditionally strong manufacturing market increased 21% compared to a 9% decline for the overall nonresidential market, as reported in McGraw-Hill’s July data.

After nine consecutive months of growth above 50, the American Institute of Architect’s Architectural Billing Index for the commercial and industrial sector has been below 50 for four months through July 2011. The momentum from the nine months of growth, coupled with the increase in demand for the manufacturing and warehousing buildings which often have less architectural involvement than other building types, should positively impact future recovery.

Recent Development

As previously reported, the Company’s ability to pay cash dividends on its Series B Cumulative Convertible Participating Preferred Stock is limited by the terms of the Company’s credit facility. If not paid in cash at an 8% rate, the Company has the option to pay the dividend in-kind (or “PIK”) at 12%. With respect to the upcoming dividend payment on September 15, 2011, the Company has successfully negotiated an agreement with the holders of the preferred stock to pay the dividend in-kind at the lower rate of 8%. The determination of cash payment versus PIK of the preferred dividends will be made each quarter, and there is no assurance that the holders of preferred stock will agree to this lower rate of 8% in future periods.

Outlook

“We are encouraged by our third quarter performance, which was achieved within a business environment that remains very challenging, and by the activity that we are seeing in our Buildings group, especially in the more complex design/build projects where we excel,” Mr. Chambers said. “We expect our fourth quarter operating profitability to exceed that of the third, similar to the normal seasonal patterns that we have experienced in the past. As a result, we reaffirm our expectation that we will produce significantly better results in the second half of fiscal 2011 than in the comparable 2010 period, and we believe we are well-positioned to demonstrate incremental improvement in our financial results driven by improved commercial discipline and the potential for continued operating leverage,” concluded Mr. Chambers.

The NCI Building Systems, Inc. third quarter conference call is scheduled for September 7, 2011, at 5:00 PM ET. Please call 1-800-860-2442 or 1-412-858-4600 to participate in the call. To listen to a live broadcast of the call over the Internet or to review the archived call, please visit the Company’s website at www.ncilp.com. To access the taped replay, please dial 1-877-344-7529 or 1-412-317-0088 and the

passcode 10003446# when prompted. The Webcast archive and taped replay will both be available two hours after the call through September 14, 2011.

NCI Building Systems, Inc. is one of North America’s largest integrated manufacturers of metal products for the nonresidential building industry. NCI is comprised of a family of companies operating manufacturing facilities across the United States and Mexico, with additional sales and distribution offices throughout the United States and Canada.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable federal securities law. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believe,” “guidance,” “potential,” “expect,” “should,” “will” and similar expressions. These forward-looking statements reflect our current expectations and/or beliefs concerning future events. The Company has made every reasonable effort to ensure that the information, estimates, forecasts and assumptions on which these statements are based are current, reasonable and complete. However, these forward-looking statements are subject to a number of risks and uncertainties that may cause the Company’s actual performance to differ materially from that projected in such statements. Among the factors that could cause actual results to differ materially include, but are not limited to industry cyclicality and seasonality and adverse weather conditions; ability to service the Company’s debt; failure to comply with financial covenants contained in the Company’s debt instruments; fluctuations in customer demand and other patterns; raw material pricing and supply; competitive activity and pricing pressure; general business and economic conditions affecting markets we serve; current economic and financial crises in the U.S. and abroad; pending legal proceedings, claims and governmental proceedings; changes in laws or regulations; and the volatility of the Company’s stock price. See also the “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2010, and in its subsequent Quarterly Reports on Form 10-Q which identify other important factors, though not necessarily all such factors, that could cause future outcomes to differ materially from those set forth in the forward-looking statements. The Company expressly disclaims any obligation to release publicly any updates or revisions to these forward-looking statements, whether as a result of new information, future events, or otherwise.

NCI BUILDING SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)

		For the Three Months Ended								For the Nine Months Ended
		July 31,				August 1,				July 31,				August 1,
		2011				2010				2011				2010
Sales		$	262,138			$	245,292			$	677,789			$	629,072
Cost of sales, excluding asset impairments (recovery)			205,348				194,999				536,641				504,765
Asset impairments (recovery)			(93	)			(64	)			(93	)			849
Gross profit			56,883				50,357				141,241				123,458
			21.7	%			20.5	%			20.8	%			19.6	%
Engineering, selling, general and administrative expenses			50,889				48,730				151,227				142,367
Restructuring charges (recovery)			(575	)			551				(575	)			1,904
Income (loss) from operations			6,569				1,076				(9,411	)			(20,813	)
Interest income			26				32				103				69
Interest expense			(3,890	)			(4,424	)			(12,014	)			(13,638	)
Refinancing costs			—				—				—				(174	)
Other income (expense), net			(112	)			(204	)			1,166				1,579
Income (loss) before income taxes			2,593				(3,520	)			(20,156	)			(32,977	)
Benefit from income taxes			—				(221	)			(6,795	)			(11,536	)
			0.0	%			6.3	%			33.7	%			35.0	%
Net income (loss)		$	2,593			$	(3,299	)		$	(13,361	)		$	(21,441	)
Convertible preferred stock dividends and accretion			9,176				8,637				21,666				25,178
Convertible preferred stock beneficial conversion feature			6,494				4,583				8,040				246,052
Net loss applicable to common shares		$	(13,077	)		$	(16,519	)		$	(43,067	)		$	(292,671	)
Loss per common share:
Basic		$	(0.71	)		$	(0.90	)		$	(2.35	)		$	(16.10	)
Diluted		$	(0.71	)		$	(0.90	)		$	(2.35	)		$	(16.10	)
Weighted average number of common shares outstanding:
Basic			18,467				18,274				18,292				18,184
Diluted			18,467				18,274				18,292				18,184
Increase in sales			6.9	%							7.7	%
Gross profit percentage			21.7	%			20.5	%			20.8	%			19.6	%
Engineering, selling, general and administrative
expenses percentage			19.4	%			19.9	%			22.3	%			22.6	%

NCI BUILDING SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)

		July 31,				October 31,
		2011				2010
		(Unaudited)
ASSETS
Cash and cash equivalents		$	49,675			$	77,419
Restricted cash			2,843				2,839
Accounts receivable, net			91,884				81,896
Inventories, net			116,324				81,386
Deferred income taxes			20,908				15,101
Income tax receivable			1,445				15,919
Prepaid expenses and other			15,555				13,923
Investments in debt and equity securities, at market			4,070				3,738
Assets held for sale			5,804				6,114
Total current assets			308,508				298,335
Property plant and equipment, net			208,783				214,453
Goodwill			5,200				5,200
Intangible assets, net			24,768				26,312
Other assets			12,686				16,224
Total assets		$	559,945			$	560,524
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Note payable		$	730			$	289
Accounts payable			91,839				70,589
Accrued compensation and benefits			32,514				31,731
Accrued interest			1,416				1,546
Other accrued expenses			49,961				46,723
Total current liabilities			176,460				150,878
Long-term debt			131,056				136,305
Deferred income taxes			10,275				10,947
Other long-term liabilities			4,801				4,820
Total long-term liabilities			146,132				152,072
Series B cumulative convertible participating preferred stock			267,497				256,870
Redeemable common stock			1,063				3,418
Common stock			924				921
Additional paid-in capital			240,141				255,248
Accumulated deficit			(270,307	)			(256,946	)
Accumulated other comprehensive loss			(1,965	)			(1,937	)
Total stockholders’ deficit			(31,207	)			(2,714	)
Total liabilities and stockholders’ deficit		$	559,945			$	560,524

NCI BUILDING SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)

		For the Nine Months Ended
		July 31, 2011				August 1, 2010
Cash flows from operating activities:
Net loss		$	(13,361	)		$	(21,441	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization			25,249				26,017
Share-based compensation expense			5,132				3,578
Gain on embedded derivative			(19	)			(930	)
Loss on sale of property, plant and equipment			41				166
Refinancing costs			—				174
Provision for doubtful accounts			1,452				131
Asset impairments, net			(93	)			849
Benefit from deferred income taxes			(6,227	)			(580	)
Changes in working capital:
Accounts receivable			(11,440	)			924
Inventories			(34,938	)			(33,774	)
Income tax receivable			14,209				15,016
Prepaid expenses and other			(57	)			1,424
Accounts payable			21,250				649
Accrued expenses			3,966				(13,868	)
Other, net			283				920
Net cash provided by (used in) operating activities			5,447				(20,745	)
Cash flows from investing activities:
Capital expenditures			(14,735	)			(11,258	)
Proceeds from sale of property, plant and equipment			582				760
Net cash used in investing activities			(14,153	)			(10,498	)
Cash flows from financing activities:
Payment of convertible notes			—				(59	)
Proceeds from ABL Facility			43				241
Payments on ABL Facility			(43	)			(246	)
Decrease (increase) of restricted cash			(4	)			10,141
Payment of cash dividends on Convertible Preferred Stock			(11,039	)			—
Payments on term loan			(5,250	)			(13,695	)
Payments on note payable			(1,105	)			(1,289	)
Payments on other long-term debt			—				(190	)
Payment of financing costs			(100	)			(50	)
Purchase of treasury stock			(1,477	)			(381	)
Net cash used in financing activities			(18,975	)			(5,528	)
Effect of exchange rate changes on cash and cash equivalents			(63	)			(5	)
Net decrease in cash and cash equivalents			(27,744	)			(36,776	)
Cash and cash equivalents at beginning of period			77,419				90,419
Cash and cash equivalents at end of period		$	49,675			$	53,643

NCI BUILDING SYSTEMS, INC.
BUSINESS SEGMENTS
(Unaudited)
(In thousands)

		Three Months Ended								Three Months Ended								$				%
		July 31, 2011								August 1, 2010								Inc/(Dec)				Change
						% of								% of
						Total								Total
						Sales								Sales
Sales:
Metal coil coating		$	54,472				16			$	51,200				17			$	3,272				6.4	%
Metal components			116,050				36				115,507				37				543				0.5	%
Engineered building systems			155,046				48				141,446				46				13,600				9.6	%
Total sales			325,568				100				308,153				100				17,415				5.7	%
Less: Intersegment sales			63,430				19				62,861				20				569				0.9	%
Total net sales		$	262,138				81			$	245,292				80			$	16,846				6.9	%

						% of Total								% of Total
						Sales								Sales
Operating income (loss):
Metal coil coating		$	5,219				10			$	5,201				10			$	18				0.3	%
Metal components			6,545				6				10,567				9				(4,022	)			-38.1	%
Engineered building systems			7,877				5				(3,112	)			(2	)			10,989				353.1	%
Corporate			(13,072	)			—				(11,580	)			—				(1,492	)			-12.9	%
Total operating income (loss) (% of net sales)		$	6,569				3			$	1,076				0			$	5,493				510.5	%

		Nine Months Ended								Nine Months Ended								$				%
		July 31, 2011								August 1, 2010								Inc/(Dec)				Change
						% of								% of
						Total								Total
						Sales								Sales
Sales:
Metal coil coating		$	144,673				17			$	134,990				17			$	9,683				7.2	%
Metal components			309,730				37				297,382				38				12,348				4.2	%
Engineered building systems			386,248				46				356,787				45				29,461				8.3	%
Total sales			840,651				100				789,159				100				51,492				6.5	%
Less: Intersegment sales			162,862				19				160,087				20				2,775				1.7	%
Total net sales		$	677,789				81			$	629,072				80			$	48,717				7.7	%

						% of								% of
						Total								Total
						Sales								Sales
Operating income (loss):
Metal coil coating		$	13,041				9			$	12,412				9			$	629				5.1	%
Metal components			14,298				5				17,971				6				(3,673	)			-20.4	%
Engineered building systems			2,313				1				(14,579	)			(4	)			16,892				115.9	%
Corporate			(39,063	)			—				(36,617	)			—				(2,446	)			-6.7	%
Total operating income (loss) (% of net sales)		$	(9,411	)			(1	)		$	(20,813	)			(3	)		$	11,402				54.8	%

NCI BUILDING SYSTEMS, INC.
BUSINESS SEGMENTS
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS)
 EXCLUDING SPECIAL CHARGES
FOR THE THREE MONTHS ENDED JULY 31, 2011 AND AUGUST 1, 2010
(Unaudited)
(In thousands)

		For the Three Months Ended July 31, 2011
										Engineered
		Metal Coil				Metal				Building
		Coating				Components				Systems				Corporate				Consolidated
Operating income (loss), GAAP basis		$	5,219			$	6,545			$	7,877			$	(13,072	)		$	6,569
Asset recovery			—				(93	)			—				—				(93	)
Restructuring recovery			—				—				(575	)			—				(575	)
“Adjusted” operating income (loss) (1)		$	5,219			$	6,452			$	7,302			$	(13,072	)		$	5,901

		For the Three Months Ended August 1, 2010
										Engineered
		Metal Coil				Metal				Building
		Coating				Components				Systems				Corporate				Consolidated
Operating income (loss), GAAP basis		$	5,201			$	10,567			$	(3,112	)		$	(11,580	)		$	1,076
Restructuring charges			—				150				401				—				551
Asset impairments (recovery)			—				(78	)			14				—				(64	)
“Adjusted” operating income (loss) (1)		$	5,201			$	10,639			$	(2,697	)		$	(11,580	)		$	1,563

NCI BUILDING SYSTEMS, INC.
BUSINESS SEGMENTS
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS)
 EXCLUDING SPECIAL CHARGES
FOR THE NINE MONTHS ENDED JULY 31, 2011 AND AUGUST 1, 2010
(Unaudited)
(In thousands)

		For the Nine Months Ended July 31, 2011
										Engineered
		Metal Coil				Metal				Building
		Coating				Components				Systems				Corporate				Consolidated
Operating income (loss), GAAP basis		$	13,041			$	14,298			$	2,313			$	(39,063	)		$	(9,411	)
Asset recovery			—				(93	)			—				—				(93	)
Restructuring recovery			—				—				(575	)			—				(575	)
Pre-acquisition contingency adjustment			—				—				252				—				252
Increase in actuarial determined general liability self-insurance reserve			—				2,398				—				—				2,398
“Adjusted” operating income (loss) (1)		$	13,041			$	16,603			$	1,990			$	(39,063	)		$	(7,429	)

		For the Nine Months Ended August 1, 2010
										Engineered
		Metal Coil				Metal				Building
		Coating				Components				Systems				Corporate				Consolidated
Operating income (loss), GAAP basis		$	12,412			$	17,971			$	(14,579	)		$	(36,617	)		$	(20,813	)
Restructuring charges			—				415				1,489				—				1,904
Asset impairments (recovery)			—				(74	)			923				—				849
“Adjusted” operating income (loss) (1)		$	12,412			$	18,312			$	(12,167	)		$	(36,617	)		$	(18,060	)

NCI BUILDING SYSTEMS, INC.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
COMPUTATION OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION,
AMORTIZATION AND OTHER NONCASH ITEMS (“ADJUSTED EBITDA”)
(Unaudited)
(In thousands)

		4th Qtr				1st Qtr				2nd Qtr				3rd Qtr				Trailing 12 Months
		October 31,				January 30,				May 1,				July 31,				July 31,
		2010				2011				2011				2011				2011
Net income (loss)		$	(5,436	)		$	(12,725	)		$	(3,229	)		$	2,593			$	(18,797	)
Add:
Depreciation and amortization			7,309				7,236				7,187				7,187				28,919
Consolidated interest expense, net			4,258				4,177				3,870				3,864				16,169
Benefit from income taxes			(1,794	)			(5,009	)			(1,786	)			—				(8,589	)
Non-cash charges:
Stock-based compensation			1,375				1,685				1,671				1,776				6,507
Asset impairments (recovery)			221				—				—				(93	)			128
Embedded derivative			(7	)			(7	)			(6	)			(6	)			(26	)
Pre-acquisition contingency adjustment			178				252				—				—				430
Cash restructuring charges (recovery)			1,628				—				—				(575	)			1,053
Transaction costs			(250	)			—				—				—				(250	)
Adjusted EBITDA (1)		$	7,482			$	(4,391	)		$	7,707			$	14,746			$	25,544

		4th Qtr				1st Qtr				2nd Qtr				3rd Qtr				Trailing 12 Months
		November 1,				Jan 31,				May 2,				August 1,				August 1,
		2009				2010				2010				2010				2010
Net income (loss)		$	(101,851	)		$	(10,486	)		$	(7,656	)		$	(3,299	)		$	(123,292	)
Add:
Depreciation and amortization			7,640				7,521				7,480				7,457				30,098
Consolidated interest expense, net			9,578				4,507				4,670				4,392				23,147
Benefit from income taxes			(7,495	)			(5,779	)			(5,536	)			(221	)			(19,031	)
Non-cash charges:
Stock-based compensation			1,045				801				1,403				1,374				4,623
Asset impairments (recovery)			347				1,029				(116	)			(64	)			1,196
Embedded derivative			—				(919	)			(4	)			(7	)			(930	)
Cash restructuring charges			1,564				524				829				551				3,468
Transaction costs			107,718				174				—				—				107,892
Adjusted EBITDA (1)		$	18,546			$	(2,628	)		$	1,070			$	10,183			$	27,171

NCI BUILDING SYSTEMS, INC.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
“ADJUSTED” LOSS PER DILUTED COMMON SHARE AND NET LOSS COMPARISON

(Unaudited)

		Fiscal Three Months Ended								Fiscal Nine Months Ended
		July 31,				August 1,				July 31,				August 1,
		2011				2010				2011				2010
Loss per diluted common share, GAAP basis		$	(0.71	)		$	(0.90	)		$	(2.35	)		$	(16.10	)
Refinancing costs, net of taxes			—				—				—				0.01
Convertible preferred stock beneficial conversion feature			0.35				0.25				0.44				13.53
Restructuring charges (recovery), net of taxes			(0.02	)			0.01				(0.02	)			0.07
Asset impairments (recovery), net of taxes			(0.00	)			(0.00	)			(0.00	)			0.03
Gain on embedded derivative, net of taxes			(0.00	)			(0.00	)			(0.00	)			(0.03	)
Increase in actuarial determined general liability self-insurance reserve, net of taxes			—				—				0.08				—
Pre-acquisition contingency adjustment, net of taxes			—				—				0.01				—
“Adjusted” loss per diluted common share (1)		$	(0.38	)		$	(0.64	)		$	(1.85	)		$	(2.49	)

		Fiscal Three Months Ended								Fiscal Nine Months Ended
		July 31,				August 1,				July 31,				August 1,
		2011				2010				2011				2010
Net loss applicable to common shares, GAAP basis		$	(13,077	)		$	(16,519	)		$	(43,067	)		$	(292,671	)
Refinancing costs, net of taxes			—				—				—				113
Convertible preferred stock beneficial conversion feature			6,494				4,583				8,040				246,052
Restructuring charges (recovery), net of taxes			(354	)			358				(354	)			1,237
Asset impairments (recovery), net of taxes			(57	)			(42	)			(57	)			552
Gain on embedded derivative, net of taxes			(4	)			(5	)			(12	)			(605	)
Increase in actuarial determined general liability self-insurance reserve, net of taxes			—				—				1,477				—
Pre-acquisition contingency adjustment, net of taxes			—				—				181				—
“Adjusted” net loss applicable to common shares (1)		$	(6,998	)		$	(11,625	)		$	(33,792	)		$	(45,322	)

NCI Building Systems, Inc.
Reconciliation of Segment Sales to Third Party Segment Sales (Internal Information)
(Unaudited)
(In thousands)

		3rd Qtr 2011								3rd Qtr 2010								Inc/(Dec)				% Change
Metal Coil Coating
Total Sales			54,472				16	%			51,200				17	%			3,272				6	%
Less: Intersegment sales			34,651								33,315								1,336				4	%
Third Party Sales			19,821				8	%			17,885				7	%			1,936				11	%
Operating Income (Loss)			5,219				26	%			5,201				29	%			18				0	%
Metal Components
Total			116,050				36	%			115,507				37	%			543				0	%
Less: Intersegment sales			23,049								26,090								(3,041	)			-12	%
Third Party Sales			93,001				35	%			89,417				37	%			3,584				4	%
Operating Income (Loss)			6,545				7	%			10,567				12	%			(4,022	)			-38	%
Engineered Building Systems
Total			155,046				48	%			141,446				46	%			13,600				10	%
Less: Intersegment sales			5,730								3,456								2,274				66	%
Third Party Sales			149,316				57	%			137,990				56	%			11,326				8	%
Operating Income (Loss)			7,877				5	%			(3,112	)			-2	%			10,989				353	%
Consolidated
Total			325,568				100	%			308,153				100	%			17,415				6	%
Less: Intersegment sales			63,430								62,861								569				1	%
Third Party Sales			262,138				100	%			245,292				100	%			16,846				7	%
Operating Income (Loss)			6,569				3	%			1,076				0	%			5,493				511	%

		YTD								YTD												%
		3rd Qtr 2011								3rd Qtr 2010								Inc/(Dec)				Change
Metal Coil Coating
Total Sales			144,673				17	%			134,990				17	%			9,683				7	%
Less: Intersegment sales			90,674								87,201								3,473				4	%
Third Party Sales			53,999				8	%			47,789				8	%			6,210				13	%
Operating Income (Loss)			13,041				24	%			12,412				26	%			629				5	%
Metal Components
Total			309,730				37	%			297,382				38	%			12,348				4	%
Less: Intersegment sales			60,100								63,451								(3,351	)			-5	%
Third Party Sales			249,630				37	%			233,931				37	%			15,699				7	%
Operating Income (Loss)			14,298				6	%			17,971				8	%			(3,673	)			-20	%
Engineered Building Systems
Total			386,248				46	%			356,787				45	%			29,461				8	%
Less: Intersegment sales			12,088								9,435								2,653				28	%
Third Party Sales			374,160				55	%			347,352				55	%			26,808				8	%
Operating Income (Loss)			2,313				1	%			(14,579	)			-4	%			16,892				116	%
Consolidated
Total			840,651				100	%			789,159				100	%			51,492				7	%
Less: Intersegment sales			162,862								160,087								2,775				2	%
Third Party Sales			677,789				100	%			629,072				100	%			48,717				8	%
Operating Income (Loss)			(9,411	)			-1	%			(20,813	)			-3	%			11,402				55	%