Building Materials Holding (BLGM) 8-K BMHC Announces Exceptional First Quarter 2005 Financial Results

Exhibit 99.1

BMHC ANNOUNCES EXCEPTIONAL FIRST QUARTER 2005 FINANCIAL RESULTS

Sales Exceed $500 Million for the Fourth Consecutive Quarter

Record Net Income of $21.1 Million for the Quarter

SAN FRANCISCO (April 26, 2005) – Building Materials Holding Corporation (Nasdaq: BMHC), a leading provider of building products and construction services to professional residential builders and contractors, today reported sales for the first quarter of 2005 increased 37% to $572.9 million, compared to $416.8 million in the first quarter of 2004.

Net income for the first quarter of 2005 was $21.1 million or $1.47 per diluted share, compared to $4.2 million or $0.31 per diluted share for the first quarter of 2004.

Robert E. Mellor, Chairman, President and Chief Executive Officer, stated, “The very strong momentum from our performance last year has continued into 2005. Both BMC West and BMC Construction achieved record-setting increases in sales and operating income for the quarter. We are very pleased to have generated sales in excess of one-half billion for the fourth consecutive quarter and net income in the first quarter that was the highest quarterly net income in our history. We continue to expand geographically and broaden our construction services offerings to strengthen our market share. Increased scale and management’s focus on excellence in delivering value-added products and construction services, combined with favorable long-term housing trends in many of our markets, continue to drive our excellent financial performance.” 

BMC West

Sales for the quarter increased 20% to $330.7 million compared to $275.4 million in the same period a year ago. The increase in sales was due to growth in sales at existing business units from strong housing construction and strategic initiatives in certain target markets.

Income from operations more than doubled to $28.9 million from $14.2 million in the same quarter a year ago. Gross margins improved as a result of continued effective management of inventory. Also, operating expenses as a percent of sales were lower than the same period a year ago.

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BMC Construction 

Sales for the quarter increased over $100 million or 71% to $242.2 million compared to $141.4 million in the same quarter a year ago. Sales from existing operations accounted for 75% of the increase while the remaining portion was from acquisitions not present in the first quarter of 2004. New home construction was strong in most of our markets, particularly in the Southwest region, Florida and Northern California.

Income from operations quadrupled to $28.5 million from $6.7 million in the first quarter of 2004. Gross margins increased as the result of favorable changes in customer mix, improved construction contract estimating and efficiencies. Operating expenses as a percent of sales were consistent with the first quarter of 2004.

Teleconference and Webcast

BMHC will host a conference call and audio webcast today at 9 a.m. Pacific Time to discuss financial results for the first quarter ended March 31, 2005. The conference call can be accessed by dialing 877-223-0437 (Domestic) or 706-643-0552 (International). A replay will be available through May 3, 2005 by dialing 800-642-1687 (Domestic) or 706-645-9291 (International). The required passcode for the replay is 3348776. The conference call and replay can be accessed via audio webcast at BMHC’s website atwww.bmhc.com. An 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 suppliers of residential building materials and construction services in the United States. We compete in the homebuilding industry through two subsidiaries, BMC West and BMC Construction. With locations in the western and southern states, BMC West distributes building materials and manufactures building components for professional builders and contractors. BMC Construction provides construction services to high-volume production homebuilders in key growth markets in western, southern and east coast states. To learn more about BMHC, visit our website atwww.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 2004 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 and consumer confidence, as well as 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;

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·   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;

·   unanticipated weather conditions including natural catastrophic events such as earthquakes, fire, flood, hurricanes, tornadoes, etc.;

·   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.

CONTACTS:	Bill Smartt	Ellis Goebel
	Senior Vice President and	Senior Vice President,
	Chief Financial Officer	Business Development and Investor Relations
	(415) 627-9100	(415) 627-9100

(Tables Follow)

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Building Materials Holding Corporation

Consolidated Statements of Income

(thousands, except per share data)

	Three Months Ended March 31
	2005			2004
Sales
Building products	$	292,031		$	247,357
Construction services		280,897			169,486
Total sales		572,928			416,843
Costs and operating expenses
Cost of goods sold
Building products		215,004			186,219
Construction services		228,128			148,581
Impairment of assets		―			1,273
Selling, general and administrative expenses		89,993			70,626
Other income, net		(505	)		(507	)
Total costs and operating expenses		532,620			406,192
Income from operations		40,308			10,651
Interest expense		3,198			2,754
Income before income taxes and minority interests		37,110			7,897
Income taxes		12,961			2,734
Minority interests income, net		(3,001	)		(975	)
Net income	$	21,148		$	4,188
Net income per share:
Basic	$	1.53		$	0.31
Diluted	$	1.47		$	0.31

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Building Materials Holding Corporation

Consolidated Balance Sheets

(thousands, except share data)

	March 31		December 31			March 31			December 31
	2005		2004			2005			2004
ASSETS					LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS’ EQUITY
Cash and cash equivalents	$	33,466	$	19,496	Accounts payable	$	105,403		$	77,591
Marketable securities		1,250		2,216	Accrued liabilities
Receivables, net		270,252		238,071	Accrued compensation		35,935			34,078
Inventory		185,347		153,391	Insurance deductible reserves		32,571			26,639
Unbilled receivables		25,973		17,196	Other		33,810			26,177
Deferred income taxes		15,137		11,913	Billings in excess of costs and estimated    earnings		19,000			11,274
Prepaid expenses and other    current assets		3,371		7,317	Current portion of long-term debt		2,882			3,404
Total current assets		534,796		449,600	Total current liabilities		229,601			179,163
Property and equipment, net		168,565		164,311	Deferred income taxes		2,347			297
Marketable securities		17,630		16,760	Long-term debt		223,604			206,419
Deferred loan costs		2,295		2,084	Other long-term liabilities		20,281			23,162
Other long-term assets		19,148		16,281	Total liabilities		475,833			409,041
Other intangibles, net		14,066		13,692
Goodwill		82,631		80,316	Minority interests		11,000			6,325
Total assets	$	839,131	$	743,044
					Commitments and contingent liabilities		―			―
					Shareholders’ equity
					Common stock, $0.001 par value,       20,000,000 shares authorized;       14,028,775 and 13,852,683 shares       issued and outstanding, respectively		14			14
					Additional paid-in capital		130,210			124,594
					Unearned compensation		(3,725	)		(1,383	)
					Retained earnings		225,838			205,812
					Accumulated other comprehensive loss, net		(39	)		(1,359	)
					Total shareholders’ equity		352,298			327,678
					Total liabilities, minority interests and        shareholders’ equity	$	839,131		$	743,044

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Building Materials Holding Corporation

Segment Information

(thousands)

(unaudited)

	Three Months Ended March 31
	2005			2004
Sales
BMC West	$	330,686		$	275,446
BMC Construction		242,242			141,397
	$	572,928		$	416,843
Income from Operations
BMC West	$	28,875		$	14,182
BMC Construction		28,532			6,729
Corporate and other		(17,099	)		(10,260	)
	$	40,308		$	10,651

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 months ended March 31, 2005 and 2004 is provided in the following table:

	Three Months Ended March 31
	2005			2004
Sales
BMC West	$	330,686		$	275,446
Less: Acquisitions		(10,081	)		―
		320,605			275,446
BMC Construction		242,242			141,397
Less: Acquisitions		(25,876	)		―
		216,366			141,397
	$	536,971		$	416,843
Income from Operations
BMC West	$	28,875		$	14,182
Less: Acquisitions (income) loss		(139	)		―
		28,736			14,182
BMC Construction		28,532			6,729
Less: Acquisitions (income) loss		(1,061	)		―
		27,471			6,729
Corporate and other		(17,099	)		(10,260	)
	$	39,108		$	10,651

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