Building Materials Holding Corporation Reports Record First Quarter Net Income.Business Editors SAN FRANCISCO--(BUSINESS WIRE)--April 18, 2000 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) ), a leading provider of 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 . and services to professional contractors and builders, today announced for the first quarter ended March 31, 2000, a 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 increase of 8.3% to $233.5 million from $215.6 million in the same period one year ago. This increase reflects 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. growth of 8.2% as well as a 4.7% increase from de novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. expansion and acquisitions made during the past year. Prior to a one-time gain of approximately $1.4 million, net of tax, from the sale of the Company's real estate in Beaverton, Oregon Beaverton is a city in Washington County, Oregon, United States, seven miles west of Portland in the Tualatin River Valley. As of May 2006, its population is estimated to be 84,270,[1] 9.1% more than the 2000 census figure of 76,129. , net income was $3.1 million and earnings per share were $0.24 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. common share. This is an increase of 23.5% over net income of $2.5 million and an increase of 20.0% over earnings per diluted common share of $0.20 in the first quarter of 1999. Net income including the one time gain was $4.5 million and earnings per share were $0.35 per diluted common share. Weighted average number of diluted common shares for the quarter were 12,793,329 compared to 12,780,483 one year ago. Gross margin in the first quarter expanded to 25.7% from 25.1% in the corresponding quarter last year, primarily due to the Company's ongoing efforts to increase sales of value-added products including roof and floor trusses, wall panels, pre-hung doors and millwork. Selling, general and administrative expenses were up slightly in the first quarter of 2000 to 22.7% of net sales compared with 22.2% a year ago, reflecting the higher costs associated with value-added products as well as the cost of integrating acquired operations. "During the quarter BMHC held the official opening for its Sherwood facility, a new full-service center built to serve the greater Portland, Oregon area," said Mr. Robert E. Mellor, President and Chief Executive Officer of Building Materials Holding Corporation. "The new facility enables BMHC to take advantage of the growth opportunities in this area. A central part of our growth strategy is to evaluate and optimize our operations to meet each market's needs. In preparation for the opening of Sherwood, certain facilities in the area were consolidated into the new location. Though we sold our real estate in Beaverton, we are maintaining a presence in that market at a smaller, leased property." "In addition to the consolidation and de novo expansion that was completed during the quarter, our continued focus on increasing value-added products and services also contributed to our growth. Value-added products and services accounted for 40.4% of total sales during the quarter, compared to 36.2% in the same period last year. We remain confident that our strategy for growth through increasing value-added sales, as well as expansion through acquisitions and construction of new centers in strong, targeted building markets will bring value to our shareholders. As we recently announced, Knipp Brothers Industries, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , in which we hold a minority interest, is expanding its framing business to service the growing building market in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, ." Building Materials Holding Corporation, through its wholly-owned subsidiaries 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 and BMHC Framing, 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 52 building materials centers in California, Colorado, Idaho, Montana, Nevada, Oregon, Texas, Utah, Washington, and Wyoming. In addition, BMHC Framing owns a minority interest in a framing and a distribution business in Arizona, 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 factors 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.
BUILDING MATERIALS HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in Thousands, Except Per Share Data)
Three Months Ended
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March 31 March 31
2000 1999
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Net Sales $233,467 $215,625
Cost of Sales 173,466 161,514
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Gross Profit 60,001 54,111
Selling, General and
Administrative Expense 52,905 47,954
Interest Expense 4,373 2,544
Other Income 4,541 487
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Income Before
Income Taxes 7,264 4,100
Income Taxes 2,797 1,579
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Net Income $ 4,467 $ 2,521
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Net Income Per
Diluted Common Share $ 0.35 $ 0.20
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Weighted Average Number
of Diluted Common Shares 12,793,329 12,780,483
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