Building Materials Holding (BLGM) 8-K BMHC Announces First Quarter 2006 Financial Results

Exhibit 99.1

BMHC ANNOUNCES FIRST QUARTER 2006 FINANCIAL RESULTS

Sales Increase to a Record $885 Million

Record Net Income of $28 million for the Quarter

SAN FRANCISCO (April 25, 2006) - Building Materials Holding Corporation (Nasdaq: BMHC), a leading provider of construction services and building materials to professional residential builders and contractors, today reported sales for the first quarter of 2006 increased 54% to a record $885 million, compared to $573 million in the same quarter a year ago. Net income for the first quarter of 2006 increased 33% to $28.1 million or $0.95 per share compared to $21.1 million or $0.73 per share in the same quarter a year ago. All per share information has been adjusted to reflect the Company’s March 2006 two-for-one stock split.

Robert E. Mellor, Chairman, President and Chief Executive Officer, stated, “We are very pleased with our ability to achieve record sales in the first quarter and grow net income by 33%. We completed a number of acquisitions in the last four quarters, which helped drive our record financial performance. While some of our markets have shown softness during the quarter, including parts of California and Colorado, our results also reflect continued strong homebuilding activity in most of our markets, particularly in the Southwest and Texas.

“During the quarter we continued to execute our business strategy focused on broadening our range of construction services and expanding geographically. The additions of Benedetti Construction Management, MWB Building Contractors and Home Lumber to our operations position us to capture additional market share in California and Texas. The high quality of our construction services combined with our ability to reduce construction cycle time add value to the homebuilding process. A significant component of BMHC’s recent success has been the increasing market acceptance of our integrated construction services.”

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Segment Financial Performance

(thousands)

BMC Construction

	Three Months Ended March 31
		2006		2005
Sales	$	498,298	$	242,242
Income from operations	$	46,075	$	28,532

Sales at BMC Construction increased by $256 million to $498 million, which is more than twice the $242 million reported in the same quarter a year ago. Sales were particularly strong in the Southwest region. Approximately $224 million of the increase reflects acquisitions of construction service businesses that were not present in the first quarter of 2005. Sales from comparable operations increased 13% or $32 million for the quarter.

Income from operations increased $17.5 million to $46.1 million, up 61% from $28.5 million in the same quarter of the prior year. The increase resulted primarily from acquisitions not present in the first quarter of 2005, as income from comparable operations was approximately level with the first quarter of last year.

BMC West

	Three Months Ended March 31
		2006		2005
Sales	$	386,259	$	330,686
Income from operations	$	30,546	$	28,875

Sales at BMC West increased by $56 million to $386 million, up 17% compared to $331 million in the same quarter a year ago, primarily reflecting strong sales of building products and manufactured components in Texas as well as the Intermountain and Northwest regions. Sales from comparable operations increased by $48 million, up 15% for the quarter.

Income from operations increased by $1.7 million to $30.5 million, up 6% from $28.9 million in the same quarter a year ago. The increase was principally due to year over year increases at comparable operations.

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Corporate

	Three Months Ended March 31
		2006		2005
Corporate general and administrative	$	22,235	$	17,099

Corporate general and administrative expenses support the operations of our business segments, BMC Construction and BMC West. Although these expenses were $5.1 million higher, they represented only 2.5% of sales compared to 3.0% in the same period a year ago. The first quarter of 2006 included the non-cash impact of $2.2 million of share-based compensation expense as a result of adopting a new accounting principle, various integration expenses related to recent acquisitions and increased incentive compensation.

Credit Facility

The Company also announced that is has exercised an existing option in its syndicated credit facility to add $150 million in borrowing capacity to its revolver. The expansion of the credit facility provides additional flexibility to support the Company’s continued growth.

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 first quarter ended March 31, 2006. The conference call may be accessed by dialing 866-277-1181 (Domestic), or 617-597-5358 (International). The required pass code for the live conference call is “BMHC”. A replay will be available through Tuesday, May 2, 2006 by dialing 888-286-8010 (Domestic), or 617-801-6888 (International).  The required pass code for the replay is 33345697.  The live conference call and replay can also be accessed via audio webcast at BMHC’s website at 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 www.bmhc.com.

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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 1A of our most recent Form 10-K. These risks and uncertainties may include, however are not limited to:

· demand for homebuilding which is influenced by changes in the overall condition of the U.S. economy, including interest rates, job formation, consumer confidence and other important factors;

· changes in our business model;

· integration of acquired businesses may not result in anticipated cost savings and revenue synergies being fully realized or 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;

· implementation of cost structures that align with revenue growth;

· changes in the business models of our customers;

· fluctuations in our costs and availability of sourcing channels for commodity wood products, concrete, steel and other building materials;

· intense competition;

· weather conditions, including natural catastrophic events;

· construction defect and product liability claims as well as other legal proceedings;

· disruptions in our information systems;

· 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.

Risks related to our shares include, however are not limited to:

· share price fluctuations and

· potential share price limitations due to anti-takeover defenses in our governing documents and certain provisions under Delaware law.

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, however 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.

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CONTACTS:

Bill Smartt	Mark Kailer
Senior Vice President and	Vice President, Treasurer and
Chief Financial Officer	Investor Relations Officer
(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)

(unaudited)

	Three Months Ended
	March 31
		2006			2005
Sales
Construction services	$	548,905		$	280,045
Building products		335,652			292,883
Total sales		884,557			572,928
Costs and operating expenses
Cost of goods sold
Construction services		448,300			227,484
Building products		246,792			215,648
Selling, general and administrative expenses		136,866			89,993
Other income, net		(1,787	)		(505	)
Total costs and operating expenses		830,171			532,620
Income from operations		54,386			40,308
Interest expense		5,590			3,198
Income before income taxes and minority interests		48,796			37,110
Income taxes		17,810			12,961
Minority interests income, net of income taxes		(2,917	)		(3,001	)
Net income	$	28,069		$	21,148
Net income per share:
Basic	$	0.98		$	0.76
Diluted	$	0.95		$	0.73

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Building Materials Holding Corporation

Consolidated Balance Sheets

(thousands, except share data)

(unaudited)

		March 31		December 31					March 31	December 31
		2006		2005					2006	2005
Assets							Liabilities, Minority Interests and Shareholders’ Equity
Cash and cash equivalents	$	30,270		$	30,078
Marketable securities		8,025			3,645		Accounts payable	$	191,189	$	146,627
Receivables, net of allowances of $4,534							Accrued compensation		51,370		65,928
and $3,756		412,581			363,527		Insurance deductible reserves		24,816		21,872
Inventory		193,663			168,282		Other accrued liabilities		95,458		51,579
Unbilled receivables		86,378			56,128		Billings in excess of costs and
Deferred income taxes		7,440			5,768		estimated earnings		40,454		33,799
Prepaid expenses and other		9,292			6,967		Current portion of long-term debt		11,939		10,131
Total current assets		747,649			634,395		Total current liabilities		415,226		329,936
Property and equipment							Deferred income taxes		8,375		6,911
Land		48,201			47,328		Insurance deductible reserves		25,125		20,753
Buildings and improvements		124,363			118,556		Long-term debt		356,151		278,169
Equipment		176,625			166,633		Other long-term liabilities		34,601		30,689
Construction in progress		10,345			9,485		Total liabilities		839,478		666,458
Accumulated depreciation		(127,606	)		(121,525	)
Marketable securities		24,613			28,875		Minority interests		10,770		14,006
Deferred loan costs		3,408			3,616
Other long-term assets		26,270			20,465		Commitments and contingent liabilities		―		―
Other intangibles, net		78,269			55,227
Goodwill		238,162			187,470		Shareholders’ equity
Total assets	$	1,350,299		$	1,150,525		Common shares, $0.001 par value:
							authorized 50 million shares;
							issued and outstanding 28,939,776
							and 28,758,580 shares		29		29
							Additional paid-in capital		145,022		143,780
							Unearned compensation		―		(2,698)
							Retained earnings		353,638		328,463
							Accumulated other comprehensive income, net		1,362		487
							Total shareholders’ equity		500,051		470,061
							Total liabilities, minority interests and shareholders’ equity	$	1,350,299	$	1,150,525

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Building Materials Holding Corporation

Segment Information

(thousands)

(unaudited)

	Three Months Ended
	March 31
		2006			2005			$ Δ		% Δ
Sales
BMC Construction	$	498,298		$	242,242		$	256,056		106	%
BMC West		386,259			330,686			55,573		17	%
	$	884,557		$	572,928		$	311,629		54	%
Income from operations
BMC Construction	$	46,075		$	28,532		$	17,543		61	%
BMC West		30,546			28,875			1,671		6	%
Corporate general and administrative		(22,235	)		(17,099	)		(5,136	)	30	%
	$	54,386		$	40,308		$	14,078		35	%

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, 2006 and 2005 is provided in the following table:

	Three Months Ended
	March 31
		2006			2005			$ Δ		% Δ
Sales
BMC Construction	$	498,298		$	242,242		$	256,056		106	%
Less: Acquisitions		(223,764	)		―			(223,764	)	―
	$	274,534		$	242,242		$	32,292		13	%
BMC West		386,259			330,686			55,573		17	%
Less: Acquisitions		(7,551	)		―			(7,551	)	―
		378,708			330,686			48,022		15	%
	$	653,242		$	572,928		$	80,314		14	%
Income from operations
BMC Construction	$	46,075		$	28,532		$	17,543		61	%
Less: Acquisitions		(17,823	)		―			(17,823	)	―
		28,252			28,532			(280	)	(1	)%
BMC West		30,546			28,875			1,671		6	%
Less: Acquisitions		(282	)		―			(282	)	―
		30,264			28,875			1,389		5	%
Corporate general and administrative		(22,235	)		(17,099	)		(5,136	)	30	%
	$	36,281		$	40,308		$	(4,027	)	(10	)%

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