Building Materials Holding Corporation Reports Fourth Quarter and Year-End 2000 Results.Business Editors SAN FRANCISCO--(BUSINESS WIRE)--Jan. 30, 2001 Building Materials Holding Corporation Building Materials Holding Corporation (NYSE: BLG) located in San Francisco, California is a holding company engaged, through its wholly owned subsidiaries, BMC West and SelectBuild Construction in the distribution and usage of building materials, selling primarily to (Nasdaq:BMHC BMHC Bear Mountain Hockey Club (New York) ) today announced financial results for its fourth quarter and year ended December 31, 2000. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $238.6 million for the fourth quarter of 2000 compared with $246.8 million in the same period one year ago. Same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. decreased 4.5% compared with the fourth quarter of 1999 due primarily to deflation deflation: see inflation. deflation Contraction in the volume of available money or credit that results in a general decline in prices. A less extreme condition is known as disinflation. of commodity wood product prices. Gross margin expanded to 28.1% from 25.9% in the fourth quarter last year. This increase is primarily due to continued growth in value-added product sales, as well as an increase in gross margins in other building materials Building materials used in the construction industry to create . These categories of materials and products are used by and construction project managers to specify the materials and methods used for . . Selling, general and administrative expenses were 24.9% of net sales compared with 22.4% a year ago, due mainly to the continued deflation in commodity wood product prices which impacted sales. Net income for the quarter was $1.4 million, or $0.11 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, a 21.1% increase over net income of $1.2 million, or $0.09 per diluted share, in the fourth quarter of 1999. Net income in the fourth quarter of 1999 included an extraordinary charge of $3.4 million, after tax, resulting from the early repayment of certain senior notes. Net income in the fourth quarter of 2000 was reduced to reflect the signing of a definitive purchase and sale agreement for the sale of the Company's business unit in Grand Junction Grand Junction, city (1990 pop. 29,034), seat of Mesa co., W Colo., at the junction of the Gunnison and Colorado rivers; inc. 1891. The shipping and processing center of a large ranch and irrigated farm region, it also serves the area's uranium, oil shale, gas, and , Colo. This transaction combined with other consolidation activities resulted in incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. operating charges totaling $2.1 million, after tax, or $0.16 per diluted share. "One of the major reasons for BMHC's leading position in the building materials industry is a strong focus on providing our professional contractor customers with outstanding service," said Robert E. Mellor, president and chief executive officer. "One way we achieve this is through ongoing evaluation of the performance of our facilities and improving the efficiency of our operations. During the fourth quarter, as a result of our continuing assessment of our operations, we made the decision to sell our business unit in Grand Junction, Colo. This unit is located in an area that offers limited additional growth potential for value-added sales and therefore, does not fit our strategic goals. "BMHC's fourth quarter results reflect the continuing deflation of commodity wood product prices. We have maintained our strategy of marketing and cross-selling BMHC's value-added and believe we are increasing our market share. Value-added products as a percent of total sales increased to 43.5% in the fourth quarter from 37.0% for the same period in 1999. Our framing investment turned in a solid performance during the quarter and we expect this trend to continue in the coming year. "We anticipate that 2001 will be a strong year for the Company, but expect commodity wood product prices to remain at current levels and have a continued negative impact on sales and earnings. Looking forward, we plan to focus on the continuing growth of the framing business, as well as increasing value-added and installed sales. We will continue to evaluate growth opportunities in new and existing markets, balancing acquisitions that complement BMHC's strategy and culture with expansion and construction of our own facilities. We remain committed to exploring methods of using technology and the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the to enhance our business and to communicate more effectively with customers and suppliers on building projects. BMHC will also continue to evaluate the efficiency of its locations to provide our customers with superior service in their construction supply needs." For the year ended December 31, 2000, net sales totaled $1.0 billion. Same-store sales for the year decreased 1.2% compared to 1999. Gross margin expanded to 26.7% from 25.0% in 1999. Net income for 2000 was $19.7 million and earnings per diluted share for the year were $1.54 per share, unchanged from 1999. Building Materials Holding Corporation, through its wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. BMC (BMC Software, Inc., Houston, TX, www.bmc.com) A leading supplier of software that supports and improves the availability, performance, and recovery of applications in complex computing environments. West Corporation and BMC Framing, Inc., is a leading provider of building materials and services to professional new residential, commercial and industrial contractors and builders as well as professional repair and remodel re·mod·el tr.v. re·mod·eled also re·mod·elled, re·mod·el·ing also re·mod·el·ling, re·mod·els also re·mod·els To make over in structure or style; reconstruct. contractors. The Company currently operates 56 building materials centers in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Colorado, Idaho, Montana, Nevada, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. , Texas, Utah, Washington, and Wyoming. In addition, BMC Framing owns minority interests in framing and distribution businesses operating in Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , California and Nevada. Additional information on Building Materials Holding Corporation can be found at its website, located at www.bmhc.com. Certain statements made in this news release constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks or uncertainties may include, but are not limited to, changes in costs of materials sold; changes in selling prices; competition within the building materials supply industry; changes in economic conditions and interest rates; increases in raw materials and labor costs; consumer confidence; government regulation; and general economic, business and competitive factors, all or each of which may cause actual results to differ from the statements made in this press release. These risks and uncertainties are discussed in detail in Building Materials Holding Corporation's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 31, 1999. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained in the Annual Report on Form 10-K or this news release.
(Tables Follow)
BUILDING MATERIALS HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in Thousands, Except Per Share Data)
Three Months Ended Twelve Months Ended
Dec. 31 Dec. 31 Dec. 31 Dec. 31
2000 1999 2000 1999
----------- ----------- ----------- -----------
Net Sales $ 238,561 $ 246,763 $ 1,013,968 $ 1,007,108
Cost of Sales 171,579 182,873 743,523 755,137
----------- ----------- ----------- -----------
Gross Profit 66,982 63,890 270,445 251,971
Selling, General
and Administrative
Expenses 59,275 55,322 229,861 208,775
Other Income 103 2,699 10,373 7,444
Interest Expense 4,342 3,930 17,722 13,184
----------- ----------- ----------- -----------
Income Before
Income Taxes And
Extraordinary
Charge 3,468 7,337 33,235 37,456
Income Taxes 2,063 2,825 13,523 14,421
----------- ----------- ----------- -----------
Income Before
Extraordinary
Charge 1,405 4,512 19,712 23,035
Extraordinary
Charge, net of tax -- (3,352) -- (3,352)
----------- ----------- ----------- -----------
Net Income $ 1,405 $ 1,160 $ 19,712 $ 19,683
=========== =========== =========== ===========
Income Per Diluted
Common Share Before
Extraordinary
Charge $ 0.11 $ 0.35 $ 1.54 $ 1.80
Extraordinary
Charge -- (0.26) -- (0.26)
----------- ----------- ----------- -----------
Net Income Per
Diluted Common
Share $ 0.11 $ 0.09 $ 1.54 $ 1.54
=========== =========== =========== ===========
Weighted Average
Number of Diluted
Common Shares 12,860 12,788 12,822 12,793
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