<PAGE> 1
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
----------------------
Commission file number: 1-14315
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
NCI 401(k) PROFIT SHARING PLAN
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
NCI BUILDING SYSTEMS, INC.
7301 FAIRVIEW
HOUSTON, TEXAS 77041
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<PAGE> 2
NCI 401(K) PROFIT SHARING PLAN
Table of Contents
<TABLE>
<S> <C>
Independent Auditors' Report.............................................................................1
Statement of Net Assets Available for Benefits...........................................................2
Statement of Changes in Net Assets Available for Benefits..............................................3-4
Notes to Financial Statements..........................................................................5-8
Supplemental Schedules:..................................................................................9
Schedule of Assets Held for Investment Purposes................................................10
Schedule of Reportable Transactions............................................................11
</TABLE>
i
<PAGE> 3
INDEPENDENT AUDITORS' REPORT
Board of Trustees
NCI 401(k) Profit Sharing Plan
Houston, Texas
We have audited the accompanying statements of net assets available for
benefits of NCI 401(k) Profit Sharing Plan as of December 31, 1998 and 1997,
and the related statement of changes in net assets available for benefits for
the year ended December 31, 1998. These financial statements are the
responsibility of Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by the management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 1998 and 1997, and the changes in net assets available for
benefits for the year ended December 31, 1998, in conformity with generally
accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying Supplemental Schedules of (1)
Assets Held for Investment Purposes and (2) Reportable Transactions are
presented to comply with the Department of Labor Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974 and are not a required part of the financial statements. The supplemental
schedules have been subjected to the same auditing procedures applied in our
audit of the basic financial statements and, in our opinion, are fairly stated,
in all material respects, in relation to the basic financial statements taken
as a whole.
/s/ KOLKHORST & KOLKHORST
Kolkhorst & Kolkhorst
Houston, Texas
June 21, 1999
1
<PAGE> 4
NCI 401(K) PROFIT SHARING PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1998 and 1997
ASSETS
<TABLE>
<CAPTION>
December 31,
---------------------------
1998 1997
----------- -----------
<S> <C> <C>
INVESTMENTS - at fair value
American Express Trust Income Fund II $ 1,664,922 $ --
IDS Bond Fund 880,890 --
Founders Balanced Fund 1,415,043 --
IDS Blue Chip Advantage Fund 337,139 --
Janus Worldwide Fund 338,331 --
Neuberger & Berman Partners Trust 243,128 --
Baron Asset Fund 385,762 --
IDS Growth Fund 3,296,957 --
NCI Common Stock Fund 21,061,732 12,249,232
Loan Fund 1,250,286 --
Nationsbank Stable Capital Fund -- 1,058,172
Nations Balanced Assets Fund -- 1,404,714
Nations Capital Growth Fund -- 2,931,868
Nations Strategic Fixed Income Fund -- 694,021
----------- -----------
30,874,190 18,338,007
CONTRIBUTIONS RECEIVABLE -- --
CASH AND CASH EQUIVALENTS 205,918 83,549
----------- -----------
TOTAL ASSETS 31,080,108 18,421,556
LIABILITIES
Accounts payable -- --
----------- -----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $31,080,108 $18,421,556
=========== ===========
</TABLE>
See independent auditors' report and accompanying notes to the
financial statements.
2
<PAGE> 5
NCI 401(k) PROFIT SHARING PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year Ended December 31, 1998
<TABLE>
<CAPTION>
Participant Directed
---------------------------------------------------------------------------------
Nationsbank Nations Nations Nations NCI
Stable Balanced Capital Growth Strategic Fixed Common
Fund Assets Fund Income Fund Stock Fund Other
----------- ----------- -------------- -------------- ----------- --------
ADDITIONS TO NET ASSETS
<S> <C> <C> <C> <C> <C> <C>
Contributions
Employer $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Participant 0 0 0 0 14,991 0
Rollovers 0 0 0 0 0 0
----------- ----------- ----------- --------- ----------- --------
Total contributions 0 0 0 0 14,991 0
Interest and dividend income 0 0 0 3,324 0 341
Net unrealized appreciation (depreciation)
of investments and net realized gain on
sale of investments 5,634 3,968 74,322 3,449 (61,551) 0
----------- ----------- ----------- --------- ----------- --------
Total earnings 5,634 3,968 74,322 6,774 (61,551) 341
----------- ----------- ----------- --------- ----------- --------
TOTAL ADDITIONS 5,634 3,968 74,322 6,774 (46,560) 341
DEDUCTIONS FROM NET ASSETS
Benefits paid to terminated participants 0 0 0 0 (14,465) 0
Administrative/other expenses 0 0 0 0 0 (11,147)
----------- ----------- ----------- --------- ----------- --------
TOTAL DEDUCTIONS 0 0 0 0 (14,465) (11,147)
NET INTERFUND TRANSFERS 0 0 0 0 0 0
Loan activity
Loan withdrawals 0 0 0 0 0 0
Loan repayments 0 0 0 0 0 0
Forfeiture activity 0 0 0 0 0 0
----------- ----------- ----------- --------- ----------- --------
Total loan activity 0 0 0 0 0 0
----------- ----------- ----------- --------- ----------- --------
NET INCREASE/(DECREASE) 5,634 3,968 74,322 6,774 (61,025) (10,806)
NET ASSETS AVAILABLE FOR
BENEFITS
Beginning of year 1,058,172 1,404,714 2,931,868 694,021 4,532,770 83,549
Converted from NationsBank (1,063,806) (1,408,682) (3,006,190) (700,795) (4,471,745) (72,743)
----------- ----------- ----------- --------- ----------- --------
End of year $ 0 $ 0 $ 0 $ (0) $ 0 $ 0
=========== =========== =========== ========= =========== ========
</TABLE>
<TABLE>
<CAPTION>
Non-
Participant
Directed
-----------
NCI
Common
Stock Fund Total
---------- -----------
ADDITIONS TO NET ASSETS
<S> <C> <C>
Contributions
Employer $ 0 $ 0
Participant 0 14,991
Rollovers 0 0
---------- -----------
Total contributions 0 14,991
Interest and dividend income 0 3,665
Net unrealized appreciation (depreciation)
of investments and net realized gain on
sale of investments 0 25,822
---------- -----------
Total earnings 0 29,488
---------- -----------
TOTAL ADDITIONS 0 44,479
DEDUCTIONS FROM NET ASSETS
Benefits paid to terminated participants 0 (14,465)
Administrative/other expenses 0 (11,147)
---------- -----------
TOTAL DEDUCTIONS 0 (25,612)
NET INTERFUND TRANSFERS 0 0
Loan activity
Loan withdrawals 0 0
Loan repayments 0 0
Forfeiture activity 0 0
---------- -----------
Total loan activity 0 0
---------- -----------
NET INCREASE/(DECREASE) 0 18,867
NET ASSETS AVAILABLE FOR
BENEFITS
Beginning of year 7,716,462 18,421,556
Converted from NationsBank (7,716,462) (18,440,423)
---------- -----------
End of year $ 0 $ (0)
========== ===========
</TABLE>
See independent auditors' report and accompanying notes
to the financial statements.
3
<PAGE> 6
<TABLE>
<CAPTION>
Participant Directed
---------------------------------------------------------------------------------------
American Express IDS Founders IDS Blue Janus Neuberger&Berman
Trust Income Bond Balanced Chip Advantage Worldwide Partners
Fund II Fund Fund Fund Fund Trust
------------- --------- ----------- -------------- --------- ----------------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS
Contributions
Employer $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Participant 509,209 185,822 327,508 69,528 65,081 62,916
Rollovers 12,044 15,494 13,148 21,811 20,173 5,558
------------ --------- ----------- --------- --------- ---------
Total contributions 521,253 201,316 340,656 91,339 85,254 68,474
Interest and dividend income 0 53,699 79,684 6,013 1,376 6,011
Net unrealized appreciation (depreciation)
of investments and net realized gain on
sale of investments 70,877 (21,094) 39,625 24,216 8,609 (15,108)
------------ --------- ----------- --------- --------- ---------
Total earnings 70,877 32,605 119,309 30,229 9,985 (9,098)
------------ --------- ----------- --------- --------- ---------
TOTAL ADDITIONS 592,130 233,921 459,965 121,568 95,239 59,376
DEDUCTIONS FROM NET ASSETS
Benefits paid to terminated participants (127,249) (26,943) (65,924) (1,657) (8,506) (15,062)
Administrative/other expenses (65,370) 0 0 0 0 0
------------ --------- ----------- --------- --------- ---------
TOTAL DEDUCTIONS (192,620) (26,943) (65,924) (1,657) (8,506) (15,062)
NET INTERFUND TRANSFERS 49,174 68,985 (327,907) 217,626 257,038 204,741
Loan activity
Loan withdrawals (147,600) (110,538) (73,497) (4,453) (10,661) (8,264)
Loan repayments 25,565 14,670 13,724 4,054 5,221 2,337
Forfeiture activity 201,722 0 0 0 0 0
------------ --------- ----------- --------- --------- ---------
Total loan activity 79,687 (95,868) (59,773) (399) (5,440) (5,927)
------------ --------- ----------- --------- --------- ---------
NET INCREASE/(DECREASE) 528,372 180,094 6,361 337,139 338,330 243,129
NET ASSETS AVAILABLE FOR
BENEFITS
Beginning of year 0 0 0 0 0 0
Converted from NationsBank 1,136,550 700,795 1,408,682 0 0 0
------------ --------- ----------- --------- --------- ---------
End of year $ 1,664,922 $ 880,889 $ 1,415,043 $ 337,139 $ 338,330 $ 243,129
============ ========= =========== ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
Non-Participant
Directed
-----------------------------------------------------------------------
Baron IDS Money NCI NCI
Asset Growth Market Loan Common Common
Fund Fund Fund Fund Stock Fund Stock Fund Total
-------- ---------- -------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS
Contributions
Employer $ 0 $ 0 $ 0 $ 0 $ 0 $ 2,427,687 $ 2,427,687
Participant 84,178 689,690 0 0 1,029,992 0 3,038,914
Rollovers 2,848 12,871 0 0 32,271 0 136,217
-------- ---------- -------- ----------- ----------- ------------ ------------
Total contributions 87,026 702,561 0 0 1,062,263 2,427,687 5,602,819
Interest and dividend income 318 143,660 17,200 0 0 0 311,626
Net unrealized appreciation (depreciation)
of investments and net realized gain on
sale of investments (268) 438,850 2,181 0 2,633,676 4,482,436 7,689,822
-------- ---------- -------- ----------- ----------- ------------ ------------
Total earnings 50 582,510 19,381 0 2,633,676 4,482,436 8,001,448
-------- ---------- -------- ----------- ----------- ------------ ------------
TOTAL ADDITIONS 87,076 1,285,071 19,381 0 3,695,939 6,910,123 13,604,267
DEDUCTIONS FROM NET ASSETS
Benefits paid to terminated participants (7,269) (104,924) 0 (65,000) (180,597) (307,443) (925,040)
Administrative/other expenses 0 0 0 0 0 0 (76,517)
-------- ---------- -------- ----------- ----------- ------------ ------------
TOTAL DEDUCTIONS (7,269) (104,924) 0 (65,000) (180,597) (307,443) (1,001,557)
NET INTERFUND TRANSFERS 312,168 (668,746) 186,538 0 (110,872) (188,746) (0)
Loan activity
Loan withdrawals (10,970) (257,498) 0 1,478,933 (316,557) (538,897) (0)
Loan repayments 4,758 36,864 0 (163,647) 41,555 70,742 55,843
Forfeiture activity 0 0 0 0 (74,646) (127,076) (0)
-------- ---------- -------- ----------- ----------- ------------ ------------
Total loan activity (6,212) (220,634) 0 1,315,286 (349,648) (595,231) 55,843
-------- ---------- -------- ----------- ----------- ------------ ------------
NET INCREASE/(DECREASE) 385,762 290,767 205,919 1,250,286 3,054,822 5,818,703 12,658,552
NET ASSETS AVAILABLE FOR
BENEFITS
Beginning of year 0 0 0 0 0 0 18,421,556
Converted from NationsBank 0 3,006,190 0 0 4,510,188 7,678,018 0
-------- ---------- -------- ----------- ----------- ------------ ------------
End of year $385,762 $3,296,957 $205,919 $ 1,250,286 $ 7,565,009 $ 13,496,722 $ 31,080,108
======== ========== ======== =========== =========== ============ ============
</TABLE>
4
<PAGE> 7
NCI 401(k) PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
NOTE A - DESCRIPTION OF PLAN
The following description of the NCI 401(k) Profit Sharing Plan (Plan) provides
only general information. Participants should refer to the Plan agreement for a
more complete description of the Plan's provisions.
General
The Plan is a defined contribution plan covering all employees of NCI Building
Systems, Inc. and its affiliates (Company) who have completed one year of
service, six months of service effective in 1999, and have attained the age of
18. The Plan is subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA) and subsequent related amendments and revisions.
Effective for 1998, the Plan changed plan trustee from NationsBank, N.A. to
American Express Trust Company.
Allocation Provision
Qualified participants may elect to defer a percent of their salary at each pay
period. The amount of deferral may not exceed 15% of compensation for the plan
year and must equal at least 1% of compensation. Elective deferrals may not
exceed the amount determined by the IRS for the plan year.
Participants may direct that their contributions be invested in any of the Plan
investment options.
Contributions
The Plan provides for a matching contribution on an equal basis to all
participants, with a maximum Company contribution. For the years ended December
31, 1998 and 1997, the Company made a matching contribution equal to 100
percent of the participant's contribution, up to 6 percent of the participant's
eligible compensation. The employer contribution totaled $2,427,687 and
$1,959,813 for the years ended December 31, 1998 and 1997, respectively.
Participant Accounts
Each participant's account is credited with the participant's contribution and
allocation of (a) the Company's contribution, if any, (b) Plan earnings, and
(c) forfeitures of terminated participants' nonvested accounts in excess of
expenses. Allocations are based on participant earnings or account balances.
The benefit to which a participant is entitled is the benefit that can be
provided from the participant's account.
5
<PAGE> 8
NCI 401(k) PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
NOTE A - DESCRIPTION OF PLAN (CONTINUED)
Vesting
Participants are immediately vested in their voluntary contributions, plus
actual earnings thereon. Vesting in the remainder of their accounts, as of
1999, is based on years of continuous service as follows:
<TABLE>
<CAPTION>
Years of Service Vested Percentage
- --------------------------------------- -----------------------
<S> <C>
Less than one year 0%
One year 10%
Two years 20%
Three years 30%
Four years 40%
Five years 60%
Six years 80%
Seven or more years 100%
</TABLE>
Expenses
The Company has paid a premium to acquire a $10,000,000 fidelity bond and also
incurs expenses for administration, audit and tax return preparation for the
Plan. The Plan may reimburse the Company for these expenses through the
allocation of forfeitures.
Payment of Benefits
Subsequent to termination of service, a participant may request to receive
payment either in a lump sum amount equal to the value of his or her vested
account balance or to continue in the trust in such a manner as though the
employee had not terminated his eligibility if the participant's account
balance is greater than $5,000.
Disposition of Forfeitures
The Plan stipulates that forfeitures are first used to reduce the Plan's normal
administrative fees, and then should be treated as additional discretionary
matching contributions for the plan year in which the forfeitures occur.
Investment Options
The Plan offers nine investment options in which the employees may elect to
participate. Eight of the options are mutual funds, and the ninth option is the
NCI Company Stock Fund. The Company's matching contribution is made in Company
stock.
6
<PAGE> 9
NCI 401(k) PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
NOTE B - SUMMARY OF ACCOUNTING POLICIES
Plan assets are stated at fair market value. If available, quoted market prices
are used to value investments.
Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires the plan administrator to make estimates and
assumptions that affect the reported amounts and disclosures. Accordingly,
actual results may differ from those estimates.
NOTE C - INVESTMENTS
The Plan's investments are held by a financial services company-administered
trust fund. The following table presents the fair values of investments.
Investments that represent 5 percent or more of the Plan's net assets are
separately identified.
Investments at fair value as determined by quoted market price:
<TABLE>
<CAPTION>
December 31,
--------------------------
1998 1997
----------- -----------
<S> <C> <C>
American Express Trust Income Fund II $ 1,664,922 $ --
IDS Bond Fund 880,890 --
Founders Balanced Fund 1,415,043 --
IDS Blue Chip Advantage Fund 337,139 --
Janus Worldwide Fund 338,331 --
Neuberger & Berman Partners Trust 243,128 --
Baron Asset Fund 385,762 --
IDS Growth Fund 3,296,957 --
NCI Common Stock Fund 21,061,732 12,249,232
Money Market Fund 205,918 --
Loan Fund 1,250,286 --
Nationsbank Stable Capital Fund -- 1,058,172
Nations Balanced Assets Fund -- 1,404,714
Nations Strategic Fixed Income Fund -- 694,021
Nations Capital Growth Fund -- 2,931,868
----------- -----------
$31,080,108 $18,338,007
=========== ===========
</TABLE>
7
<PAGE> 10
NCI 401(k) PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
NOTE D - PLAN TERMINATION
Although the Company has expressed no such intention, the Plan can be
terminated at the Company's election. In the event of Plan termination, all
Plan benefits would become 100 percent vested and payable to the participants.
NOTE E - TAX STATUS
The Plan obtained its latest determination letter on December 28, 1998, in
which the Internal Revenue Service stated that the Plan, as then designed, was
in compliance with the applicable requirements of the Internal Revenue Code.
The Plan has been amended since receiving the determination letter. However,
the Plan administrator believes that the Plan is currently designed and being
operated in compliance with the applicable requirements of the Internal Revenue
Code.
8
<PAGE> 11
SUPPLEMENTAL SCHEDULES
9
<PAGE> 12
NCI 401(k) PROFIT SHARING PLAN
FINANCIAL STATEMENTS
December 31, 1998
Item 27a - Schedule of Assets Held for Investments Purposes for the Year Ended
December 31, 1998
<TABLE>
<CAPTION>
(a) (b) (c) (d) (e)
- ------------------------------------------------------------------------------------------------------------------------------------
Identity of Issue Description of Cost Current
Borrower, Lessor, Including Maturity date, Rate Value
or Similar Party of Interest, Collateral, Par
or Maturity Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
American Express Trust Income Fund II Mutual Fund $ 1,612,610 $ 1,664,922
IDS Bond Fund Mutual Fund 897,147 880,890
Founders Balanced Fund Mutual Fund 1,383,469 1,415,043
IDS Blue Chip Advantage Fund Mutual Fund 315,657 337,139
Janus Worldwide Fund Mutual Fund 325,273 338,331
Neuberger & Berman Partners Trust Mutual Fund 252,327 243,128
Baron Asset Fund Mutual Fund 382,405 385,762
IDS Growth Fund Mutual Fund 2,949,739 3,296,957
Loan Fund Mutual Fund 1,250,286 1,250,286
NCI Common Stock Fund Qualified Employer Securities 14,209,400 21,061,732
</TABLE>
10
<PAGE> 13
NCI 401(k) PROFIT SHARING PLAN
FINANCIAL STATEMENTS
Year ended December 31, 1998
Item 27d - Schedule of Reportable Transactions for the Year Ended December 31,
1998
<TABLE>
<CAPTION>
(a) (b) (c) (d) (e) (f) (g)
Identity Description Purchase Selling Lease Expense Cost of
of Party of Assets Price Price Expense Incurred Asset
Involved
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Founders Balanced Fund $ - $1,408,682
IDS Growth Fund - 3,006,190
NCI Common Stock Fund - 2,427,696
American Express Trust Income Fund II - 1,136,560
Loan Fund - 1,707,706
American Express Trust Income Fund II - 3,230,938
American Express Trust Money Market Fund - 6,948,930
Founders Balanced Fund - 2,319,444
IDS Bond Fund - 2,164,572
IDS Growth Fund - 4,965,564
NCI Common Stock Fund 1,069 3,506,927
Nations Balanced Assets Fund - 1,479,918
Nations Balanced Assets Fund - 3,113,392
Nationsbank Stable Capital Fund - 973,059
NCI Common Stock Fund - 7,676,054
American Express Trust Income Fund II - 3,230,938
American Express Trust Money Market Fund - 6,948,930
</TABLE>
<TABLE>
<CAPTION>
(a) (b) (h) (i)
Identity Description Current Net Gain
of Party of Assets Value of (Loss)
Involved Assets on
Transaction
Date
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Founders Balanced Fund $ 1,408,682 $ -
IDS Growth Fund 3,006,190 -
NCI Common Stock Fund 2,427,696 -
American Express Trust Income Fund II 1,136,560 -
Loan Fund 1,707,706 -
American Express Trust Income Fund II 3,255,873 24,935
American Express Trust Money Market Fund 6,948,930 -
Founders Balanced Fund 2,328,689 9,245
IDS Bond Fund 2,159,167 (5,405)
IDS Growth Fund 5,066,748 101,184
NCI Common Stock Fund 4,024,913 517,986
Nations Balanced Assets Fund 1,408,682 (71,236)
Nations Balanced Assets Fund 3,006,190 (107,202)
Nationsbank Stable Capital Fund 1,063,806 90,747
NCI Common Stock Fund 12,188,207 4,512,153
American Express Trust Income Fund II 3,255,873 24,935
American Express Trust Money Market Fund 6,948,930 -
</TABLE>
There were no category (i), (ii) or (iv) reportable transactions during the
year ended December 31, 1998.
11
<PAGE> 14
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange
Act of 1934, NCI Building Systems Inc., as administrator for the NCI 401(k)
Profit Sharing Plan, has duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
NCI BUILDING SYSTEMS INC.
(AS ADMINISTRATOR OF THE NCI 401(k) PROFIT SHARING PLAN)
DATE: June 28, 1999 By: /s/ Robert J. Medlock
------------------------------------------
Robert J. Medlock
Executive Vice President and Chief Financial Officer
12
<PAGE> 15
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit Description of Exhibit
------- ----------------------
<S> <C>
23.1 Consent of Independent Auditors
</TABLE>
<PAGE> 1
Exhibit 23.1
CONSENT OF INDEPENDENT AUDITORS
We consent to the use of our report included herein and to the
references to our firm included in the Annual Report on Form 11-K for the NCI
401(k) Profit Sharing Plan.
We also consent to the incorporation by reference in the
Registration Statements on Form S-8 (No. 333-14957 and No. 33-52078) pertaining
to the NCI 401(k) Profit Sharing Plan of our report dated June 21, 1999 with
respect to the statements of net assets available for benefits of the NCI
401(k) Profit Sharing Plan as of December 31, 1998 and 1997, and the related
statement of changes in net assets available for benefits for the year ended
December 31, 1998, included in this Annual Report on Form 11-K.
/s/ KOLKHORST & KOLKHORST
Kolkhorst & Kolkhorst
Houston, Texas
June 28, 1999
