NCI Building Systems Inc.
) rose nearly 5% on Jan 10, as it declared the pricing of its
previously announced underwritten public offering of its common
shares. The stock closed at $18.67 at the close of trading.
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NCI Building is seeking to issue an underwritten public offering
of 8.5 million shares at $18 per share. The offering has
been made by investment funds associated with Clayton, Dubilier
& Rice, LLC (CD&R). The company also granted underwriters
the option to buy up to 1,275,000 shares from CD&R within 30
days. CD&R will receive all of the proceeds from the
In addition, NCI Building entered into a separate agreement with
CD&R to repurchase 1.15 million shares at the same price per
share to be paid by underwriters to CD&R in the underwritten
offering. This buyback is non-underwritten. As announced before,
the closing of stock repurchase is contingent with completion of
the underwritten offering and subject to other conditions.
As of Nov 3, 2013, the company had cash and cash equivalents of
$77.4 million, up from $55.1 million as of Oct 28, 2012. Cash
flow from operating activities was $64 million in fiscal 2013
compared with $47.7 million in the prior year.
However, management did not provide any specific guidance for
fiscal 2014. Business conditions at architectural firms have
steadily improved in the past several quarters, which point
toward an upper single-digit year-over-year growth in
non-residential new construction in 2014.
Headquartered in Texas, NCI Building is one of the major
integrated manufacturers of metal products for the North American
non-residential construction industry. Currently, NCI Building
carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector include
James Hardie Industries plc
United Rentals, Inc.
). While James Hardie Industries sports a Zacks Rank #1 (Strong
Buy), Masco and United Rentals hold a Zacks Rank #2 (Buy).