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BUILDERS WAREHOUSE RELEASES RESULTS FOR FISCAL YEAR 1993

 CONWAY, Ark., Oct. 1 /PRNewswire/ -- Builders Warehouse Association, Inc. (NASDAQ: BWAI) today released its financial results for the fiscal year ended May 31, 1993. Joe McCartney, Builders Warehouse's president, commented: "The company continued its rapid expansion with the acquisition and conversion of four more lumberyards during the year. There now are eight Builders Warehouse stores including the two additional locations acquired since May 31. The company's balance sheet today is much stronger than at any time in the past." Mr. McCartney went on to explain: "The disappointing loss for fiscal year 1993 was, to a large extend, due to several large, one-time expenses incurred to position the company for future growth. However, we project earnings to rebound and sales to continue rapidly growing throughout fiscal year 1994."
 Net sales increased approximately 59 percent to $17.1 million from $10.8 million in fiscal year 1992. Excluding sales to its affiliate, net sales increased approximately 106 percent from $5.9 million to $12.2 million during this period. The increased sales resulted from growth by existing locations as well as the addition of four new locations in Arkansas.
 The company had a net loss for fiscal year 1993 of approximately $1.28 million, or 43 cents per share, vs. a net profit of $0.1 million, or 4 cents per share, for the prior fiscal year. Management stated that approximately $1.0 million of 1993s loss was due to the costs of opening four new stores, installing a companywide computer system, and various investment banking, legal and consulting services. Non of these expenses, other than opening costs for future store locations, should affect the company's financial results after the first quarter of fiscal year 1994.
 As previously mentioned, the company's balance sheet was strengthened during the year. Shareholders' equity increased approximately $1.5 million to $2.1 million at May 31, 1993, from $0.6 million at May 31, 1992. Most of this equity growth was due to the issuance of common stock which was utilized to finance the company's rapid growth and acquisitions. In addition, the company accessed a new $600,000 bank line of credit to finance its growth. Another indicator of the company's financial strength was its increase in working capital by approximately $1.7 million to $2.2 million as of May 31, 1993, from $0.5 million as of May 31, 1992. This increase was due to the large growth in accounts receivable and inventory associated with the company's new locations and sales growth while accounts payable grew more modestly.
 -0- 10/1/93
 /CONTACT: Joe McCartney, president of Builders Warehouse Association, Inc., 501-336-8136/
 (BWAI)


CO: Builders Warehouse Association, Inc. ST: Arkansas IN: REA SU: ERN

TW -- NY053 -- 7814 10/01/93 13:02 EDT
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Publication:PR Newswire
Date:Oct 1, 1993
Words:459
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