Black Box Corporation Reports Record Revenues, Net Income, Earnings Per Share and Free Cash Flow for Fourth Quarter and Total Year.

Business Editors

PITTSBURGH--(BUSINESS WIRE)--May 9, 2001

Targets FY2002 Revenues of $1 Billion and 20-22% Operating EPS Growth

Black Box Corporation (Nasdaq:BBOX) today reported record revenues, net income, earnings per share and free cash flow for the fourth quarter and total year ended March 31, 2001.

Revenues for the fiscal year ended March 31, 2001 increased 63% to $827 million, up from $508 million for last year. Net income before intangibles amortization for the year was $77.0 million, or 9.3% of revenues, an increase of 39% from $55.3 million for last year. Earnings per share before intangibles amortization for the year were $3.86, an increase of 31% from $2.94 per share for last year. Reported net income for fiscal 2001 was $64.2 million, up 31% from last year's $48.9 million. Reported earnings per share for fiscal 2001 were $3.22, up 24% from $2.60 per share last year. Free cash flow for the year was $62 million, or 97% of net income, compared to last year's $38 million, or 78% of net income.

Revenues for the quarter ended March 31, 2001 increased 41% to $225 million, up from $159 million for the same period last year. Net income before intangibles amortization for the quarter was $20.7 million, an increase of 26% from $16.5 million for the same period last year. Earnings per share before intangibles amortization for the quarter were $1.03, an increase of 20% from 86 cents per share for the same period last year. Reported net income for the quarter was $17.1 million, up 19% from last year's fourth quarter of $14.3 million. Reported earnings per share were 85 cents, up 13% from last year's 75 cents per share. Free cash flow for the quarter was $22 million, or 129% of net income, compared to last year's $12.1M, or 85% of net income.

Commenting on FY2001 results, Fred C. Young, Chief Executive Officer of Black Box Corporation, said, "We are very pleased to report our sixth consecutive year of reported earnings per share growth at 20% or greater, with our two most recent years at 24%.

"More importantly, we grew our FY2001 operating EPS by 31%. We believe operating EPS growth is the clearest measurement of our economic earnings success, particularly when coupled with our 97% free cash flow to net income ratio.

"Our key to success continues to be great clients served by a great team. We have 154,000 clients in 132 countries throughout the world serviced by 5,000 Black Box team members. Our technical services remain the most extensive and reliable in the industry, ranging from quick answers on the phone to client-based on-site teams -- all 100% dedicated to designing, building and maintaining today's complicated network infrastructure systems.

"As we look forward, we will remain focused and disciplined in accomplishing our number one mission - consistent and profitable growth.

"Our primary operating objectives for FY2002 include:

- achieving further integration of phone and on-site services,

- increasing our on-site services profitability,

- continuing our aggressive on-site geographic expansion throughout the world,
and

- remaining conservative on revenue expectations, and thus our cost structure,
during these uncertain economic times.

"Our financial objectives for FY2002 are to achieve $1 billion in revenues; $4.62 to $4.72 in operating earnings per share; $3.90 to $4.00 in reported earnings per share; and 75-80% free cash flow to net income, or approximately $65-$70 million of free cash flow. These financial objectives exclude any positive impact of our geographic expansion program. We would expect, consistent with prior years, $100 to $150 million of additional annualized revenues from this program.

"In support of these objectives, we reduced our cost structure by approximately $7 million annually, or a 5 cents per share quarterly forward benefit. This reduction was implemented late in March to align our cost structure with future revenue expectations. The full impact of this reduction would have yielded EPS of approximately 89 cents to 90 cents at 4Q FY2001-level revenues."

Mr. Young went on to say, "We are conscious of the current business climate challenges. Although not immune to some level of impact to our business, we expect to demonstrate continued earnings growth as a result of the high quality clients we serve, the spectrum and nature of technical services we provide and our global diversity. We've put another record year in the history books and have Black Box positioned for FY2002 to be as equally impressive."

Black Box will conduct a conference call beginning at 10:45 a.m. Eastern time later today, May 9, 2001. Fred Young, Chief Executive Officer, will discuss the business and host a Q & A. To participate in the call, please dial 800-450-0788 approximately 10 minutes prior to the starting time and ask to be connected to the Black Box Earnings Call.

This release contains forward-looking statements, which are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. The statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of the date of this press release.

Black Box is the world's largest technical services company dedicated to designing, building and maintaining today's complicated network infrastructure systems. Black Box services clients of all sizes in 132 countries throughout the world.

                         BLACK BOX CORPORATION

                      CONSOLIDATED BALANCE SHEETS
                        (Dollars in thousands)




                                           March 31,    March 31,
ASSETS                                        2001         2000
                                           ---------    ---------
Current assets:
   Cash and cash equivalents               $   6,209    $   8,643
   Trade accounts receivable, net            160,917      115,958
   Inventories, net                           51,086       44,582
   Costs and estimated earnings in
     excess of billings on
     uncompleted contracts                    30,067        7,953
   Other current assets                       19,069       17,398
                                           ---------    ---------
     Total current assets                    267,348      194,534

Property, plant and equipment, net            44,661       40,445
Intangibles, net                             337,180      215,366
Other assets                                   3,741        1,944
                                           ---------    ---------
     Total assets                          $ 652,930    $ 452,289
                                           =========    =========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Current debt                            $   5,371    $     969
   Accounts payable                           70,255       38,374
   Billings in excess of costs and
    estimated earnings on
    uncompleted contracts                      6,013        3,655
   Accrued expenses                           33,137       27,087
   Accrued taxes                              13,650        8,468
                                           ---------    ---------
     Total current liabilities               128,426       78,553
                                           ---------    ---------


Long-term debt                               124,066      105,374
Other liabilities                             11,487       10,035

Stockholders' equity:
   Common stock                                   21           20
   Additional paid-in capital                248,053      144,828
   Retained earnings                         250,246      186,056
   Treasury stock, at cost                  (100,355)     (67,253)
   Cumulative foreign currency
    translation adjustment                    (9,014)      (5,324)
                                           ---------    ---------
     Total stockholders' equity              388,951      258,327
                                           ---------    ---------
     Total liabilities and
      stockholders' equity                 $ 652,930    $ 452,289
                                           =========    =========



                         BLACK BOX CORPORATION

                   CONSOLIDATED STATEMENTS OF INCOME
               (In thousands, except per share amounts)


                            (UNAUDITED)
                           Quarter Ended     Twelve Month Period Ended
                             March 31                March 31
                       ---------------------   ---------------------

                          2001        2000        2001        2000
                       ---------   ---------   ---------   ---------

Revenues                 225,157     159,376     826,993     508,340
  Cost of sales          135,515      92,250     493,861     288,813
                       ---------   ---------   ---------   ---------
Gross profit              89,642      67,126     333,132     219,527

  Selling, general
  and administrative
  expenses                54,560      39,947     203,377     129,874
                       ---------   ---------   ---------   ---------
Operating income
 before
 amortization             35,082      27,179     129,755      89,653

  Intangibles
   amortization            3,641       2,130      12,821       6,410
                       ---------   ---------   ---------   ---------
Operating income          31,441      25,049     116,934      83,243

  Interest expense,
   net                     2,821       1,557      11,312       3,243
  Other (income)/
   expenses, net             578        --           392         (77)
                       ---------   ---------   ---------   ---------
Income before income
 taxes                    28,042      23,492     105,230      80,077

  Provision for
   income taxes           10,936       9,162      41,040      31,225
                       ---------   ---------   ---------   ---------
Net income             $  17,106   $  14,330   $  64,190   $  48,852
                       =========   =========   =========   =========


Basic earnings per
 common share          $    0.89   $    0.79   $    3.40   $    2.74
                       =========   =========   =========   =========

Diluted earnings per
 common share          $    0.85   $    0.75   $    3.22   $    2.60
                       =========   =========   =========   =========

Weighted average
 common shares            19,273      18,188      18,904      17,835
                       =========   =========   =========   =========

Weighted average
 common and common
 equivalent shares
 outstanding              20,175      19,228      19,929      18,785
                       =========   =========   =========   =========

Earnings per common
 share before
 intangibles
 amortization          $    1.03   $    0.86   $    3.86   $    2.94
                       =========   =========   =========   =========