Building Materials Holding Corporation Reports RecordFirst Quarter Net Income.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--April 18, 2000

Building Materials Holding Corporation (Nasdaq: BMHC), a leading provider of building materials and services to professional contractors and builders, today announced for the first quarter ended March 31, 2000, a

net sales 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 growth of 8.2% as well as a 4.7% increase from de novo 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, net income was $3.1 million and earnings per share were $0.24 per diluted 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."