Building Materials Holding Corporation Reports Second Quarter 2002 Results.Business Editors SAN FRANCISCO--(BUSINESS WIRE)--July 23, 2002 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 construction services and products to professional builders Professional Builder (ISSN-1072-0561) is a trade publication and web site owned by Reed Business Information serving the information needs of the housing and light construction marketplace. and contractors, today announced that its 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 for the second quarter of 2002 increased 12.0% to $300.5 million compared to $268.4 million in the second quarter of 2001. Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of for the second quarter decreased 3.8% compared to the same period in 2001. Net income for the second quarter was $7.3 million, or $0.55 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. This is a 3.2% increase from net income of $7.1 million, or $0.54 per diluted share, in the second quarter of 2001. The results for the quarter reflect the consolidation of KBI KBI Kansas Bureau of Investigation KBI Key Business Indicators KBI Knowledge Based Information KBI Knowledge-Based Industry KBI Key Buying Influence (marketing) KBI Key Business Initiative , which was accounted for under the equity method until July July: see month. 1, 2001. BMHC's sales of construction services and manufactured building components for the second quarter increased 35.3% to $152.6 million compared to $112.8 million in the same period a year ago. Sales of construction services and manufactured building components were 50.8% of total sales for the quarter compared to 42.0% in the second quarter last year. Gross margin increased to 28.4% from 27.5% in the second quarter of 2001. This increase is primarily due to the Company's continued focus on sales of construction services and manufactured building components, such as framing, roof and floor trusses, wall panels, pre-hung doors and millwork. Selling, general and administrative expenses were 23.7% of net sales compared with 23.3% in the same period last year, which is due mainly to higher costs associated with the increase in sales of services and manufactured components. "In light of overall economic conditions, we are pleased with our results for the quarter, which were in line with our expectations," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. E. Mellor Mellor - Schlaer-Mellor , chairman and chief executive officer of Building Materials Holding Corporation. "While building permit activity in some of our markets remained somewhat soft and affected our same store sales, the ongoing focus of our management team on increasing sales of construction services and manufactured components enabled us to turn in solid top line growth for the quarter. KBI has continued its excellent performance and we have been pleased with the overall success of our framing business. "As we previously announced, we are continuing to expand our framing business into new markets. Subsequent to the end of the quarter, we completed our transaction with the owners of Sanburn Construction and formed our new business unit, KBI Norcal. We are now able to serve Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern homebuilding markets through KBI Norcal's turnkey See turnkey system. framing installation services. We look forward to significant growth opportunities in this operation." About BMHC Building Materials Holding Corporation is a leader in the construction services and 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 . industry. The Company specializes in providing high quality products, as well as engineering, manufacturing and installation services to professional residential builders and contractors. BMHC operates through its 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 Corporation and BMC Framing Inc., with 131 facilities organized into 59 business units in 12 Western and Southern states Southern States U.S. Confederacy government of 11 Southern states that left the Union in 1860. [Am. Hist.: EB, III: 73] Dixie popular name for Southern states in U.S. and for song. [Am. Hist. . Keys to the Company's long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. success include concentration on housing markets where growth outpaces national averages, and a strong management structure that keeps BMHC close to local market trends and to the service needs of its customers. Business Risks and 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. Certain statements made in this news release constitute "forward-looking statements" 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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 and construction services industry; changes in economic conditions and interest rates; integration of acquired businesses; increases in raw materials and labor costs; retention of key management personnel; consumer confidence; household and job formation; 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 December: see month. 31, 2001. 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 announce publicly the results of any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. 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)
(Unaudited)
Three Months Ended Six Months Ended
------------------- -----------------
June 30 June 30 June 30 June 30 2002 2001 2002 2001
------- ------- ------- -------
Net Sales $300,528 $268,416 $547,663 $491,565
Cost of Sales 215,028 194,621 390,936 354,103
--------- --------- --------- ---------
Gross Profit 85,500 73,795 156,727 137,462
Operating Expense 71,224 62,532 139,277 121,274
Other Income, net -- 318 365 890
--------- -------- -------- --------
Income from
Operations 14,276 11,581 17,815 17,078
Equity in Earnings
of Unconsolidated
Companies, net of
Amortization -- 2,970 -- 4,817
Interest Expense 2,421 3,063 4,955 6,870
--------- -------- -------- --------
Income before Income
Taxes and change in
accounting
principle 11,855 11,488 12,860 15,025
Income Taxes 4,564 4,423 4,951 5,785
--------- -------- -------- --------
Income before change
in accounting
principle 7,291 7,065 7,909 9,240
Change in
accounting
principle, net of
tax -- -- (11,650) --
--------- -------- -------- --------
Net Income $ 7,291 $ 7,065 $ (3,741) $ 9,240
========= ======== ======== ========
Income before change
in accounting
principle per common
share:
Basic $ 0.56 $ 0.55 $ 0.61 $ 0.72
========= ======== ======== ========
Diluted: $ 0.55 $ 0.54 $ 0.60 $ 0.72
========= ======== ======== ========
Net Income/Loss Per
Diluted Common
Share $ 0.55 $ 0.54 $ (0.28) $ 0.72
========= ======== ======== ========
Weighted Average
Number of Diluted
Common Shares 13,276 12,984 13,227 12,922
========= ======== ======== ========
Building Materials Holding Corporation
Condensed Consolidated Balance Sheets
(Amounts in Thousands, Except Share Data)
(UNAUDITED)
June 30, December 31,
2002 2001
----------- ------------
ASSETS
Current assets
Cash $ 6,961 $ 5,182
Receivables, net 133,594 112,557
Inventories 98,560 85,826
Deferred income tax benefit 5,301 4,657
Prepaid expenses and other
current assets 4,112 10,802
--------- ---------
Total current assets 248,528 219,024
Property, plant and equipment,
net 175,909 177,554
Goodwill 50,737 68,339
Other intangibles, net 10,386 10,513
Deferred loan costs 3,454 4,387
Other long-term assets 7,223 5,925
--------- ---------
Total assets $ 496,237 $ 485,742
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
expenses $ 78,559 $ 58,120
--------- ---------
Total current liabilities 78,559 58,120
Long-term debt 165,201 167,417
Deferred income taxes 2,093 7,803
Other long-term liabilities 10,181 9,508
--------- ---------
Total liabilities 256,034 242,848
--------- ---------
Shareholders' equity
Common stock, $0.001 par
value, 20,000,000
shares authorized; 13,133,267
and 12,984,284 shares
issued and outstanding,
respectively 13 13
Additional paid-in capital 111,711 110,661
Retained earnings 128,479 132,220
--------- ---------
Total shareholders' equity 240,203 242,894
--------- ---------
Total liabilities and
shareholders' equity $ 496,237 $ 485,742
========= =========
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