NCI Building Systems Reports
Second Quarter Fiscal 2011 Results

— Q2 Revenues Increased 12% Year-Over-Year; Up 19% Sequentially —
— All Three Business Segments Posted Significant Improvement in Operating Profitability —
— Adjusted EBITDA of $7.7 Million, Markedly Ahead of Year-Ago and Sequential Levels —
— Buildings Group Backlog was $210 Million —

HOUSTON, June 7, 2011 /PRNewswire/ — NCI Building Systems, Inc. (NYSE: NCS) today reported financial results for the second quarter ended May 1, 2011.

Second Quarter 2011 Financial Results

“NCI’s second quarter improvement in operating profitability reflected significant year-over-year and sequential progress made by each of our business segments,” said Norman C. Chambers, NCI’s Chairman, President and Chief Executive Officer. “Despite the ongoing challenges of both a market that is experiencing only the early indications of a recovery, and the impact of rising steel prices on demand, we were able to respond effectively with record order-to-delivery times, more value-added services and continued realization of operating efficiencies across the organization.”

“As anticipated, the Buildings group demonstrated the most significant progress, posting double-digit year-over-year and sequential revenue growth and nearly reaching the breakeven level in operating income. Our Coatings and Components groups continued to report operating profits, which were solidly up on both a year-over-year and a sequential basis. Company-wide revenue growth over the comparable year-ago quarter of 12% was achieved in a market in which volumes declined 6.8% year-over-year as measured in square feet according to McGraw-Hill data; our 19% sequential revenue growth compares to McGraw-Hill data showing a market volume increase of 3.8% sequentially.”

“In the second quarter, we experienced an approximate 30% increase in the velocity of converting our backlog to production compared to similar periods in the last several years. This resulted from the increasing percentage of ‘book for production business’ and smaller buildings that we can produce and ship quickly as a result of our past investments in improved engineering, drafting and manufacturing processes. While backlog at the end of the second quarter was up only slightly, to $210 million, bookings for the period increased 16% sequentially in value and 4.3% in volume.”

Sales for the second quarter were $225.6 million, up 11.9% from the $201.6 million reported in last year’s second quarter and 18.7% ahead of first quarter levels. Gross profit margin expanded to 22.5% from 20.2% last year and showed marked improvement over the 17.6% reported for this year’s first quarter.

Engineering, selling, general and administrative expenses (“ESG&A”) were $52.7 million, or 23.3% of revenues, inclusive of $1.3 million in special charges. This compares to $49.0 million, or 24.3% of revenues in last year’s second quarter. In the first quarter of fiscal 2011, ESG&A was $47.7 million, or 25.1% of revenues. The Company narrowed its operating loss to $1.8 million, which was significantly below the operating losses of $9.2 million and $14.1 million incurred in the year-ago and prior quarters, respectively. 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 positive $7.7 million compared to positive $1.1 million in last year’s second quarter and negative $4.4 million in this year’s first quarter.

For the second quarter, the Company reported a net loss applicable to common shares of $9.2 million, which included the accrual of preferred stock dividends and accretion of $6.3 million and a non-cash beneficial conversion feature benefit of $0.2 million. This compares to a net loss of $257.3 million in the 2010 second quarter and a net loss of $20.7 million in the prior quarter.

The adjusted loss per diluted common share, excluding the non-cash beneficial conversion feature and other special charges presented in the attached tables, was $0.48; the reported net loss per diluted common share was $0.51. This compares to an adjusted loss per diluted common share of $0.86 and a reported net loss per diluted common share of $14.15 in last year’s second quarter and an adjusted net loss per diluted common share of $0.99 and a reported net loss per diluted common share of $1.14 for the prior quarter, each adjusted for the 1-for-5 reverse stock split that was effective at the close of market on March 5, 2010.

The weighted average number of common shares used in the calculation of second quarter 2011 per share amounts was 18.3 million compared to 18.2 million last year and 18.1 million in the 2011 first quarter.

Inventory levels increased 28.9% sequentially to $107.6 million, reflecting seasonal factors. Annualized inventory turnover was 7.3 turns for the second quarter compared to 7.5 turns for the 2011 first quarter.

Capital expenditures were $5.8 million; net cash from operating activities was positive $4.9 million.

Second Quarter Segment Performance

The Company reported an adjusted operating loss of $547,000, which is reconciled with the reported GAAP operating loss in the table below.

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
(Unaudited)
(In thousands)

		For the Three Months Ended May 1, 2011
		Metal								Engineered
		Coil				Metal				Building
		Coating				Components				Systems				Corporate				Consolidated
Operating income (loss), GAAP basis		$	4,378			$	7,400			$	(154	)		$	(13,468	)		$	(1,844	)
Increase in actuarial determined general liability self-insurance reserve			—				1,297				—				—				1,297
“Adjusted” operating income (loss) (1)		$	4,378			$	8,697			$	(154	)		$	(13,468	)		$	(547	)

“Each of our business segments took advantage of available market opportunities to achieve significantly improved results within what continues to be a very difficult operating environment,” Mr. Chambers noted. “Our integrated business model continues to provide us with important advantages that allow us to maintain and build market leadership while remaining price competitive.”

As expected, order pull-throughs in the first quarter of fiscal 2011 in advance of steel price increases caused our second quarter Coatings group revenues to be virtually flat on both a sequential and year-over-year basis. However, operating income was up 7% year-over-year and 27.1% sequentially, as the segment continues to benefit from successful end-market diversification programs and adherence to strict cost controls.

The Components group’s revenues increased 11.0% from last year’s second quarter levels and 11.6% sequentially. Operating income increased 32% from last year’s second quarter, despite a special charge of $1.3 million incurred in the period, and improved exponentially on a sequential basis. Commercial discipline and successful cost controls contributed to this significant operating leverage. Sales of retrofit roofing products and energy-efficient insulated metal panels continued to increase in the second quarter, and we are preparing two previously idled facilities for re-tooling in order to increase production capacity for these high-growth products.

The Buildings group’s revenues increased 14% year-over-year and were up 27.4% sequentially. Operating results showed a 97% improvement over year-ago and prior quarter levels and were just short of breakeven for the period. This segment benefitted from past investments in engineering, drafting and manufacturing efficiencies, which are providing a competitive edge in bidding for quick-turn projects. Additionally, the Buildings group’s mix is improving to include more design-build projects, which fit well with our custom engineered building solutions.

Market Commentary

In the second fiscal quarter of 2011, nonresidential construction activity measured in square feet declined 6.8% from the comparable period in fiscal 2010 as reported by McGraw-Hill.

The American Institute of Architect’s Architectural Billing Index published for April was 47.6 and the commercial and industrial component of the Index, which had remained above 50 for nine consecutive months, slipped to 49.9, just below the growth level of 50.

McGraw-Hill is currently forecasting that nonresidential construction activity measured in square feet will be 3% higher in calendar 2011 compared to calendar 2010, with most of the improvement expected to occur in the second half of the year.

Summary and Outlook

“The pick-up in quoting activity that began in December 2010 continued in the second quarter. While the business environment remains challenging, we are encouraged by our strong sequential bookings increase of 16% and the increasingly greater proportion of our backlog and bookings that is represented by commercial/industrial work. Additionally, we have succeeded in maintaining commercial and cost discipline in this period of steel price increases,” Mr. Chambers noted. “While the financial performance of our business is greatly influenced by the U.S. economy, we believe we will execute well during the second half of fiscal 2011, producing significantly better results than in the second half of fiscal 2010.”

The NCI Building Systems, Inc. second quarter conference call is scheduled for June 7, 2011, at 5:00 PM ET. Please call 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 1-412-317-0088 and the passcode 451170# when prompted. The Webcast archive and taped replay will both be available two hours after the call through June 15, 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.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act. These statements and other statements identified by words such as “believe,” “guidance,” “potential,” “expect,” “should,” “will” and similar expressions are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current expectations and/or beliefs concerning future events. As a result, these forward-looking statements rely on a number of assumptions, forecasts, and estimates and, as a result, 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 the 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. Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2010, identifies 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. NCI expressly disclaims any obligation to release publicly any updates or revisions to these forward-looking statements to reflect any changes in its expectations.

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

		For the Three Months Ended								For the Six Months Ended
		May 1,				May 2,				May 1,				May 2,
		2011				2010				2011				2010
Sales		$	225,565			$	201,573			$	415,651			$	383,780
Cost of sales, excluding asset impairments (recovery)			174,752				161,026				331,293				309,766
Asset impairments (recovery)			—				(116	)			—				913
Gross profit			50,813				40,663				84,358				73,101
			22.5	%			20.2	%			20.3	%			19.0	%
Engineering, selling, general and administrative expenses			52,657				48,991				100,338				93,637
Restructuring charges			—				829				—				1,353
Loss from operations			(1,844	)			(9,157	)			(15,980	)			(21,889	)
Interest income			30				12				77				37
Interest expense			(3,900	)			(4,682	)			(8,124	)			(9,214	)
Refinancing costs			—				—				—				(174	)
Other income, net			699				635				1,278				1,783
Loss before income taxes			(5,015	)			(13,192	)			(22,749	)			(29,457	)
Benefit from income taxes			(1,786	)			(5,536	)			(6,795	)			(11,315	)
			35.6	%			42.0	%			29.9	%			38.4	%
Net loss		$	(3,229	)		$	(7,656	)		$	(15,954	)		$	(18,142	)
Convertible preferred stock dividends and accretion			6,260				8,407				12,490				16,541
Convertible preferred stock beneficial conversion feature			(240	)			241,282				1,546				241,469
Net loss applicable to common shares		$	(9,249	)		$	(257,345	)		$	(29,990	)		$	(276,152	)
Loss per common share:
Basic		$	(0.51	)		$	(14.15	)		$	(1.65	)		$	(15.22	)
Diluted		$	(0.51	)		$	(14.15	)		$	(1.65	)		$	(15.22	)
Weighted average number of common shares outstanding:
Basic			18,275				18,184				18,215				18,138
Diluted			18,275				18,184				18,215				18,138
Increase in sales			11.9	%							8.3	%
Gross profit percentage			22.5	%			20.2	%			20.3	%			19.0	%
Engineering, selling, general and administrative expenses percentage			23.3	%			24.3	%			24.1	%			24.4	%

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

		May 1,				October 31,
		2011				2010
		(Unaudited)
ASSETS
Cash and cash equivalents		$	57,409			$	77,419
Restricted cash			2,842				2,839
Accounts receivable, net			70,395				81,896
Inventories, net			107,562				81,386
Deferred income taxes			15,055				15,101
Income tax receivable			278				15,919
Prepaid expenses and other			16,250				13,923
Investments in debt and equity securities, at market			4,190				3,738
Assets held for sale			6,133				6,114
Total current assets			280,114				298,335
Property plant and equipment, net			208,857				214,453
Goodwill			5,200				5,200
Intangible assets, net			25,283				26,312
Other assets			13,874				16,224
Total assets		$	533,328			$	560,524
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Note payable		$	1,167			$	289
Accounts payable			74,496				70,589
Accrued compensation and benefits			33,200				31,731
Accrued interest			1,458				1,546
Other accrued expenses			49,130				46,723
Total current liabilities			159,451				150,878
Long-term debt			132,557				136,305
Deferred income taxes			3,505				10,947
Other long-term liabilities			4,807				4,820
Total long-term liabilities			140,869				152,072
Series B cumulative convertible participating preferred stock			258,321				256,870
Redeemable common stock			1,821				3,418
Common stock			924				921
Additional paid-in capital			246,784				255,248
Accumulated deficit			(272,900	)			(256,946	)
Accumulated other comprehensive loss			(1,942	)			(1,937	)
Total stockholders’ deficit			(27,134	)			(2,714	)
Total liabilities and stockholders’ deficit		$	533,328			$	560,524

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

		For the Six Months Ended
		May 1, 2011				May 2, 2010
Cash flows from operating activities:
Net loss		$	(15,954	)		$	(18,142	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization			16,850				17,360
Share-based compensation expense			3,357				2,204
Gain on embedded derivative			(13	)			(923	)
Loss on sale of property, plant and equipment			11				112
Refinancing costs			—				174
Provision for doubtful accounts			690				(267	)
Asset impairments, net			—				913
Benefit from deferred income taxes			(6,978	)			(668	)
Changes in working capital:
Accounts receivable			10,811				9,990
Inventories			(26,176	)			(29,031	)
Income tax receivable			15,702				(9,653	)
Prepaid expenses and other			(1,133	)			(885	)
Accounts payable			3,907				(3,358	)
Accrued expenses			3,863				(12,144	)
Other, net			69				567
Net cash provided by (used in) operating activities			5,006				(43,751	)
Cash flows from investing activities:
Capital expenditures			(8,070	)			(3,868	)
Proceeds from sale of property, plant and equipment			143				65
Net cash used in investing activities			(7,927	)			(3,803	)
Cash flows from financing activities:
Payment of convertible notes			—				(59	)
Proceeds from ABL Facility			5				235
Payments on ABL Facility			(3	)			(44	)
Decrease (increase) of restricted cash			(3	)			10,143
Payment of cash dividends on Convertible Preferred Stock			(11,039	)			—
Payment on term loan			(3,750	)			(375	)
Payments on note payable			(667	)			(855	)
Payments on other long-term debt			—				(190	)
Payment of financing costs			(75	)			(50	)
Purchase of treasury stock			(1,477	)			(381	)
Net cash (used in) provided by financing activities			(17,009	)			8,424
Effect of exchange rate changes on cash and cash equivalents			(80	)			(16	)
Net decrease in cash and cash equivalents			(20,010	)			(39,146	)
Cash and cash equivalents at beginning of period			77,419				90,419
Cash and cash equivalents at end of period		$	57,409			$	51,273

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

		Three Months Ended								Three Months Ended								$				%
		May 1, 2011								May 2, 2010								Inc/(Dec)				Change
						% of								% of
						Total								Total
						Sales								Sales
Sales:
Metal coil coating		$	47,927				17			$	44,759				18			$	3,168				7.1	%
Metal components			103,375				37				95,069				37				8,306				8.7	%
Engineered building systems			129,790				46				113,403				45				16,387				14.5	%
Total sales			281,092				100				253,231				100				27,861				11.0	%
Less: Intersegment sales			55,527				20				51,658				20				3,869				7.5	%
Total net sales		$	225,565				80			$	201,573				80			$	23,992				11.9	%

						% of								% of
						Total								Total
						Sales								Sales
Operating income (loss):
Metal coil coating		$	4,378				9			$	4,092				9			$	286				7.0	%
Metal components			7,400				7				5,613				6				1,787				31.8	%
Engineered building systems			(154	)			(0	)			(5,649	)			(5	)			5,495				97.3	%
Corporate			(13,468	)			—				(13,213	)			—				(255	)			-1.9	%
Total operating income (loss) (% of net sales)		$	(1,844	)			(1	)		$	(9,157	)			(5	)		$	7,313				79.9	%

		Six Months Ended								Six Months Ended								$				%
		May 1, 2011								May 2, 2010								Inc/(Dec)				Change
						% of								% of
						Total								Total
						Sales								Sales
Sales:
Metal coil coating		$	90,201				17			$	83,790				17			$	6,411				7.7	%
Metal components			193,680				38				181,875				38				11,805				6.5	%
Engineered building systems			231,202				45				215,341				45				15,861				7.4	%
Total sales			515,083				100				481,006				100				34,077				7.1	%
Less: Intersegment sales			99,432				19				97,226				20				2,206				2.3	%
Total net sales		$	415,651				81			$	383,780				80			$	31,871				8.3	%

						% of								% of
						Total								Total
						Sales								Sales
Operating income (loss):
Metal coil coating		$	7,822				9			$	7,211				9			$	611				8.5	%
Metal components			7,753				4				7,404				4				349				4.7	%
Engineered building systems			(5,564	)			(2	)			(11,467	)			(5	)			5,903				51.5	%
Corporate			(25,991	)			—				(25,037	)			—				(954	)			-3.8	%
Total operating income (loss) (% of net sales)		$	(15,980	)			(4	)		$	(21,889	)			(6	)		$	5,909				27.0	%

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 MAY 1, 2011 AND MAY 2, 2010
(Unaudited)
(In thousands)

		For the Three Months Ended May 1, 2011
										Engineered
		Metal Coil				Metal				Building
		Coating				Components				Systems				Corporate				Consolidated
Operating income (loss), GAAP basis		$	4,378			$	7,400			$	(154	)		$	(13,468	)		$	(1,844	)
Increase in actuarial determined general liability self-insurance reserve			—				1,297				—				—				1,297
“Adjusted” operating income (loss) (1)		$	4,378			$	8,697			$	(154	)		$	(13,468	)		$	(547	)

		For the Three Months Ended May 2, 2010
										Engineered
		Metal Coil				Metal				Building
		Coating				Components				Systems				Corporate				Consolidated
Operating income (loss), GAAP basis		$	4,092			$	5,613			$	(5,649	)		$	(13,213	)		$	(9,157	)
Restructuring charges			—				156				673				—				829
Asset impairments (recovery)			—				4				(120	)			—				(116	)
“Adjusted” operating income (loss) (1)		$	4,092			$	5,773			$	(5,096	)		$	(13,213	)		$	(8,444	)

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 SIX MONTHS ENDED MAY 1, 2011 AND MAY 2, 2010
(Unaudited)
(In thousands)

		For the Six Months Ended May 1, 2011
										Engineered
		Metal Coil				Metal				Building
		Coating				Components				Systems				Corporate				Consolidated
Operating income (loss), GAAP basis		$	7,822			$	7,753			$	(5,564	)		$	(25,991	)		$	(15,980	)
Pre-acquisition contingency adjustment			—				—				252				—				252
Increase in actuarial determined general liability self-insurance reserve			—				2,398				—				—				2,398
“Adjusted” operating income (loss) (1)		$	7,822			$	10,151			$	(5,312	)		$	(25,991	)		$	(13,330	)

		For the Six Months Ended May 2, 2010
										Engineered
		Metal Coil				Metal				Building
		Coating				Components				Systems				Corporate				Consolidated
Operating income (loss), GAAP basis		$	7,211			$	7,404			$	(11,467	)		$	(25,037	)		$	(21,889	)
Restructuring charges			—				265				1,088				—				1,353
Asset impairments			—				4				909				—				913
“Adjusted” operating income (loss) (1)		$	7,211			$	7,673			$	(9,470	)		$	(25,037	)		$	(19,623	)

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)

		3rd Qtr				4th Qtr				1st Qtr				2nd Qtr				Trailing 12 Months
		August 1,				October 31,				January 30,				May 1,				May 1,
		2010				2010				2011				2011				2011
Net loss		$	(3,299	)		$	(5,436	)		$	(12,725	)		$	(3,229	)		$	(24,689	)
Add:
Depreciation and amortization			7,457				7,309				7,236				7,187				29,189
Consolidated interest expense, net			4,392				4,258				4,177				3,870				16,697
Benefit from income taxes			(221	)			(1,794	)			(5,009	)			(1,786	)			(8,810	)
Non-cash charges:
Stock-based compensation			1,374				1,375				1,685				1,671				6,105
Asset impairments (recovery)			(64	)			221				—				—				157
Embedded derivative			(7	)			(7	)			(7	)			(6	)			(27	)
Pre-acquisition contingency adjustment			—				178				252				—				430
Cash restructuring charges			551				1,628				—				—				2,179
Transaction costs			—				(250	)			—				—				(250	)
Adjusted EBITDA (1)		$	10,183			$	7,482			$	(4,391	)		$	7,707			$	20,981

		3rd Qtr				4th Qtr				1st Qtr				2nd Qtr				Trailing 12 Months
		August 2,				November 1,				January 31,				May 2,				May 2,
		2009				2009				2010				2010				2010
Net income (loss)		$	2,607			$	(101,851	)		$	(10,486	)		$	(7,656	)		$	(117,386	)
Add:
Depreciation and amortization			7,586				7,640				7,521				7,480				30,227
Consolidated interest expense, net			6,487				9,578				4,507				4,670				25,242
Provision (benefit) for income taxes			1,825				(7,495	)			(5,779	)			(5,536	)			(16,985	)
Non-cash charges:
Stock-based compensation			1,241				1,045				801				1,403				4,490
Asset impairments (recovery)			26				347				1,029				(116	)			1,286
Embedded derivative			—				—				(919	)			(4	)			(923	)
Cash restructuring charges			1,213				1,564				524				—				3,301
Transaction costs			401				107,718				174				829				109,122
Adjusted EBITDA (1)		$	21,386			$	18,546			$	(2,628	)		$	1,070			$	38,374

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 Six Months Ended
		May 1,				May 2,				May 1,				May 2,
		2011				2010				2011				2010
Loss per diluted common share, GAAP basis		$	(0.51	)		$	(14.15	)		$	(1.65	)		$	(15.22	)
Refinancing costs, net of taxes			—				—				—				0.01
Convertible preferred stock beneficial conversion feature			(0.01	)			13.27				0.08				13.31
Restructuring charges, net of taxes			—				0.03				—				0.05
Asset impairments (recovery), net of taxes			—				(0.01	)			—				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			0.04				—				0.08				—
Pre-acquisition contingency adjustment, net of taxes			—				—				0.01				—
“Adjusted” loss per diluted common share (1)		$	(0.48	)		$	(0.86	)		$	(1.48	)		$	(1.85	)

		Fiscal Three Months Ended								Fiscal Six Months Ended
		May 1,				May 2,				May 1,				May 2,
		2011				2010				2011				2010
Net loss applicable to common shares, GAAP basis		$	(9,249	)		$	(257,345	)		$	(29,990	)		$	(276,152	)
Refinancing costs, net of taxes			—				—				—				113
Convertible preferred stock beneficial conversion feature			(240	)			241,282				1,546				241,469
Restructuring charges, net of taxes			—				539				—				879
Asset impairments (recovery), net of taxes			—				(75	)			—				594
Gain on embedded derivative, net of taxes			(4	)			(3	)			(8	)			(600	)
Increase in actuarial determined general liability self-insurance reserve, net of taxes			799				—				1,477				—
Pre-acquisition contingency adjustment, net of taxes			—				—				181				—
“Adjusted” net loss applicable to common shares (1)		$	(8,694	)		$	(15,602	)		$	(26,794	)		$	(33,697	)

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

																						%
		2nd Qtr 2011								2nd Qtr 2010								Inc/(Dec)				Change
Metal Coil Coating
Total Sales			47,927				17	%			44,759				18	%			3,168				7	%
Less: Intersegment sales			30,942								27,663								3,279				12	%
Third Party Sales			16,985				7	%			17,096				8	%			(111	)			-1	%
Operating Income (Loss)			4,378				26	%			4,092				24	%			286				7	%
Metal Components
Total Sales			103,375				37	%			95,069				37	%			8,306				9	%
Less: Intersegment sales			20,762								20,693								69				0	%
Third Party Sales			82,613				37	%			74,376				37	%			8,237				11	%
Operating Income (Loss)			7,400				9	%			5,613				8	%			1,787				32	%
Engineered Building Systems
Total Sales			129,790				46	%			113,403				45	%			16,387				14	%
Less: Intersegment sales			3,823								3,302								521				16	%
Third Party Sales			125,967				56	%			110,101				55	%			15,866				14	%
Operating Income (Loss)			(154	)			0	%			(5,649	)			-5	%			5,495				97	%
Consolidated
Total Sales			281,092				100	%			253,231				100	%			27,861				11	%
Less: Intersegment sales			55,527								51,658								3,869				7	%
Third Party Sales			225,565				100	%			201,573				100	%			23,992				12	%
Operating Income (Loss)			(1,844	)			-1	%			(9,157	)			-5	%			7,313				80	%

		YTD								YTD												%
		2nd Qtr 2011								2nd Qtr 2010								Inc/(Dec)				Change
Metal Coil Coating
Total Sales			90,201				17	%			83,790				17	%			6,411				8	%
Less: Intersegment sales			56,023								53,886								2,137				4	%
Third Party Sales			34,178				8	%			29,904				8	%			4,274				14	%
Operating Income (Loss)			7,822				23	%			7,211				24	%			611				8	%
Metal Components
Total Sales			193,680				38	%			181,875				38	%			11,805				6	%
Less: Intersegment sales			37,051								37,361								(310	)			-1	%
Third Party Sales			156,629				38	%			144,514				38	%			12,115				8	%
Operating Income (Loss)			7,753				5	%			7,404				5	%			349				5	%
Engineered Building Systems
Total Sales			231,202				45	%			215,341				45	%			15,861				7	%
Less: Intersegment sales			6,358								5,979								379				6	%
Third Party Sales			224,844				54	%			209,362				54	%			15,482				7	%
Operating Income (Loss)			(5,564	)			-2	%			(11,467	)			-5	%			5,903				51	%
Consolidated
Total Sales			515,083				100	%			481,006				100	%			34,077				7	%
Less: Intersegment sales			99,432								97,226								2,206				2	%
Third Party Sales			415,651				100	%			383,780				100	%			31,871				8	%
Operating Income (Loss)			(15,980	)			-4	%			(21,889	)			-6	%			5,909				27	%