NCI Building Systems Inc. ( NCS ) 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.
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 offering.
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 ( JHX ), Masco Corp. ( MAS ) and United Rentals, Inc. ( URI ). While James Hardie Industries sports a Zacks Rank #1 (Strong Buy), Masco and United Rentals hold a Zacks Rank #2 (Buy).