Full Year 2005 Sales Increase 39% to Reach Record $2.9 Billion SAN
FRANCISCO, Feb. 7 /PRNewswire-FirstCall/ -- Building Materials
Holding Corporation (NASDAQ:BMHC), a leading provider of
construction services and building materials to professional
residential builders and contractors, today reported sales
increased 52% to $818 million, compared to $539 million in the same
quarter a year ago. For the year ended December 31, 2005, sales
increased 39% to $2.9 billion compared to $2.1 billion in 2004. Net
income was $33.5 million or $2.25 per share compared to $19.0
million or $1.34 per share in the same quarter a year ago. Net
income for the year was $129.5 million or $8.82 per share compared
to $53.9 million or $3.87 per share in 2004. "We generated the best
results in BMHC's history in 2005," stated Mr. Robert E. Mellor,
Chairman, President and Chief Executive Officer of Building
Materials Holding Corporation. "We are very pleased to have
achieved record sales and net income for the year, which resulted
from outstanding performances at both BMC Construction and BMC
West. Our results reflect continued success in meeting the
construction service and building product needs of both custom and
high-volume production homebuilders, as well as ongoing strong
demand in our markets. "During the year, we further expanded BMHC
through the completion of seven acquisitions. Most of our
acquisitions completed during the year were focused on
strengthening our service offerings, increasing our framing
capabilities and adding trades such as concrete and plumbing. We
continue to adhere to two key objectives within our acquisition
strategy, which are expanding our breadth of services for
homebuilders and providing value through an integrated service
offering." Segment Financial Performance (thousands) BMC
Construction Three Months Ended Twelve Months Ended December 31
December 31 2005 2004 2005 2004 Sales $445,609 $216,185 $1,393,886
$753,701 Income from operations $48,551 $21,681 $160,957 $59,689
Sales at BMC Construction increased to $446 million from $216
million in the same quarter a year ago. For the year, sales
increased 85% to $1.4 billion from the prior year of $754 million.
Sales increased due to recent acquisitions not present in same
quarter and period a year ago, as well as strong homebuilding
activity, particularly in our Las Vegas and Phoenix markets. Income
from operations increased to $48.6 million from $21.7 million in
the same quarter of the prior year. Income from operations was
$161.0 million compared to $59.7 million in the same period a year
ago. Acquisitions and margin improvements due to strong demand for
our services in the Las Vegas, Phoenix and Florida markets,
contributed to the increase in operating income. BMC West Three
Months Ended Twelve Months Ended December 31 December 31 2005 2004
2005 2004 Sales $372,274 $323,124 $1,518,274 $1,337,324 Income from
operations $37,481 $23,954 $151,030 $96,083 Sales at BMC West
increased 15% to $372 million compared to $323 million in the same
quarter a year ago. For the year, sales increased 14% to $1.5
billion compared to $1.3 billion a year ago. Sales increased in
each region of our operations as construction activity remained
strong, especially in our Texas, Northwest and Intermountain
regions. Income from operations increased to $37.5 million from
$24.0 million in the same quarter a year ago. Income from
operations was $151.0 million for the year compared to $96.1
million in 2004. Improvements in margins as well as selling,
general and administrative expenses as a percentage of sales were
responsible for the increase in operating income. Conference Call
and Webcast BMHC will host a conference call and audio webcast
today at 9 a.m. Pacific Time (12:00 noon Eastern Time) to discuss
financial results for the fourth quarter ended December 31, 2005.
The conference call may be accessed by dialing 800-659-1966
(Domestic), or 617-614-2711 (International). The required pass code
for the live conference call is 57557729. A replay will be
available through Tuesday, February 14, 2006 by dialing
888-286-8010 (Domestic), or 617-801-6888 (International). The
required pass code for the replay is 20530744. The live conference
call and replay can also be accessed via audio webcast at BMHC's
website at http://www.bmhc.com/. The archive of the webcast will be
available for 90 days following the conclusion of the
teleconference. About BMHC BMHC, a Fortune 1000 company, is one of
the largest providers of residential construction services and
building materials in the United States. We serve the homebuilding
industry through two subsidiaries: BMC Construction provides
construction services to high-volume production homebuilders in key
growth markets across the country; BMC West distributes building
materials and manufactures building components for professional
builders and contractors in the western and southern states. BMHC
was recently named to the Forbes Platinum 400, also known as
America's Best Big Companies, and was selected Pro Dealer of the
Year by Home Channel News. To learn more about BMHC, visit our
website at http://www.bmhc.com/. BUSINESS RISKS AND FORWARD-LOOKING
STATEMENTS There are a number of business risks and uncertainties
that affect our operations and therefore could cause future results
to differ from past performance or expected results. Additional
information regarding business risks and uncertainties is contained
in Item 1 of our most recent Form 10-K. These risks and
uncertainties may include, but are not limited to: -- demand for
homebuilding which is influenced by changes in the overall
condition of the U.S. economy, including job formation, interest
rates, consumer confidence and other important factors; --
fluctuations in our costs and availability of sourcing channels for
commodity wood products and building materials; -- changes in the
business models of our customers; -- intense competition; --
integration of acquired businesses may not result in anticipated
cost savings and revenue synergies being fully realized or it may
take longer to realize than expected; -- our ability to identify
suitable acquisition candidates; -- availability of and our ability
to attract, train and retain qualified individuals; -- weather
conditions including natural catastrophic events; -- implementation
of cost structures that align with revenue growth; -- actual and
perceived vulnerabilities as a result of terrorist activities and
armed conflict; and -- numerous other matters of a local and
regional scale, including those of a political, economic, business,
competitive or regulatory nature. Certain statements made in this
news release constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Statements that are not historical or current facts, including
statements about our expectations, anticipated financial results
and future business prospects are forward-looking statements. While
these statements represent our current judgment on what the future
may hold and we believe these judgments are reasonable, these
statements involve risks and uncertainties that could cause our
actual results to differ materially from those in forward-looking
statements. These factors include, but are not limited to the risks
and uncertainties cited in the above paragraph. Undue reliance
should not be placed on such forward-looking statements, as such
statements speak only as of the date of this news release. We
undertake no obligation to update forward-looking statements.
Building Materials Holding Corporation Consolidated Statements of
Income (thousands, except per share data) (unaudited) Three Months
Ended Twelve Months Ended December 31 December 31 2005 2004 2005
2004 Sales Construction services $489,949 $255,096 $1,586,509
$904,362 Building products 327,934 284,213 1,325,651 1,186,663
Total sales 817,883 539,309 2,912,160 2,091,025 Costs and operating
expenses Cost of goods sold Construction services 396,613 209,635
1,285,949 768,407 Building products 237,066 211,825 967,877 897,725
Impairment of assets 857 1,001 1,320 2,274 Selling, general and
administrative expenses 121,436 81,459 420,862 317,002 Other
income, net (425) (515) (3,204) (2,491) Total costs and operating
expenses 755,547 503,405 2,672,804 1,982,917 Income from operations
62,336 35,904 239,356 108,108 Interest expense 4,243 3,376 14,420
13,560 Income before income taxes and minority interests 58,093
32,528 224,936 94,548 Income taxes 21,060 12,435 79,915 35,198
Minority interests income (3,552) (1,047) (15,514) (5,440) Net
income $33,481 $19,046 $129,507 $53,910 Net income per share: Basic
$2.35 $1.39 $9.22 $4.00 Diluted $2.25 $1.34 $8.82 $3.87 Building
Materials Holding Corporation Consolidated Balance Sheets
(thousands, except share data) (unaudited) December 31 2005 2004
ASSETS Cash and cash equivalents $30,078 $19,496 Marketable
securities 3,645 2,216 Receivables, net of $3,756 and $4,367
363,527 238,071 Inventory 168,282 153,391 Unbilled receivables
56,128 17,196 Deferred income taxes 5,768 11,913 Prepaid expenses
and other 6,967 7,317 Total current assets 634,395 449,600 Property
and equipment Land 47,328 37,036 Buildings and improvements 118,556
102,321 Equipment 166,633 124,451 Construction in progress 9,485
4,956 Accumulated depreciation (121,525) (104,453) Marketable
securities 28,875 16,760 Deferred loan costs 3,616 2,084 Other
long-term assets 20,465 16,281 Other intangibles, net 55,227 13,692
Goodwill 187,470 80,316 Total assets $1,150,525 $743,044 December
31 2005 2004 LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS'
EQUITY Accounts payable $146,627 $77,591 Accrued compensation
65,928 34,078 Insurance deductible reserves 21,872 12,903 Other
accrued liabilities 51,579 26,177 Billings in excess of costs and
estimated earnings 33,799 11,274 Current portion of long-term debt
10,131 3,404 Total current liabilities 329,936 165,427 Deferred
income taxes 6,911 297 Insurance deductible reserves 20,753 13,736
Long-term debt 278,169 206,419 Other long-term liabilities 30,689
23,162 Total liabilities 666,458 409,041 Minority interests 14,006
6,325 Commitments and contingent liabilities -- -- Shareholders'
equity Common stock, $0.001 par value: authorized 50,000,000
shares; issued and outstanding 14,379,290 and 13,852,683 shares 14
14 Additional paid-in capital 143,795 124,594 Unearned compensation
(2,698) (1,383) Retained earnings 328,463 205,812 Accumulated other
comprehensive income (loss), net 487 (1,359) Total shareholders'
equity 470,061 327,678 Total liabilities, minority interests and
shareholders' equity $1,150,525 $743,044 Building Materials Holding
Corporation Segment Information (thousands) (unaudited) Three
Months Ended Twelve Months Ended December 31 December 31 2005 2004
2005 2004 Sales BMC Construction $445,609 $216,185 $1,393,886
$753,701 BMC West 372,274 323,124 1,518,274 1,337,324 $817,883
$539,309 $2,912,160 $2,091,025 Income from operations BMC
Construction $48,551 $21,681 $160,957 $59,689 BMC West 37,481
23,954 151,030 96,083 Corporate and other (23,696) (9,731) (72,631)
(47,664) $62,336 $35,904 $239,356 $108,108 We evaluate our results
of operations including and excluding acquisitions. We believe a
presentation of sales and income from operations excluding recent
acquisitions enhances an understanding of the acquisitions as well
as comparable operations for the respective periods. A
reconciliation of sales and income from operations before recent
acquisitions for the three and twelve months ended December 31,
2005 and 2004 is provided in the following table: Three Months
Ended Twelve Months Ended December 31 December 31 2005 2004 2005
2004 Sales BMC Construction $445,609 $216,185 $1,393,886 $753,701
Less: Acquisitions (190,775) -- (384,578) -- 254,834 216,185
1,009,308 753,701 BMC West 372,274 323,124 1,518,274 1,337,324
Less: Acquisitions (285) -- (19,340) -- 371,989 323,124 1,498,934
1,337,324 $626,823 $539,309 $2,508,242 $2,091,025 Income from
operations BMC Construction $48,551 $21,681 $160,957 $59,689 Less:
Acquisitions income (15,153) -- (31,380) -- 33,398 21,681 129,577
59,689 BMC West 37,481 23,954 151,030 96,083 Less: Acquisitions
income 28 -- (208) -- 37,509 23,954 150,822 96,083 Corporate and
other (23,696) (9,731) (72,631) (47,664) $47,211 $35,904 $207,768
$108,108 DATASOURCE: Building Materials Holding Corporation
CONTACT: Bill Smartt, Senior Vice President and Chief Financial
Officer, or Mark Kailer, Vice President, Treasurer and Investor
Relations, both of BMHC, +1-415-627-9100 Web site:
http://www.bmhc.com/
Copyright
Building Materials (NASDAQ:BMHC)
Historical Stock Chart
From Jul 2024 to Aug 2024
Building Materials (NASDAQ:BMHC)
Historical Stock Chart
From Aug 2023 to Aug 2024