EXHIBIT 99.1
FOR IMMEDIATE RELEASE Contact: John F. Rebele
Wednesday, April 27, 2005 Senior Vice President
and Chief Financial Officer
Building Materials Corporation
of America
(973) 628-4038
BUILDING MATERIALS CORPORATION OF AMERICA ANNOUNCES
---------------------------------------------------
FIRST QUARTER OPERATING RESULTS
-------------------------------
Building Materials Corporation of America ("BMCA" or "the Company")
announced today first quarter of 2005 net income of $12.8 million compared to
net income of $10.6 million in the first quarter of 2004. The increase in first
quarter of 2005 net income was primarily attributable to higher operating
income, partially offset by higher interest expense.
Operating income in the first quarter of 2005 was $37.8 million
compared to $31.9 million in the first quarter of 2004. Operating income in the
first quarter of 2005 was positively affected by increased net sales primarily
resulting from higher unit volumes and, to a lesser extent, higher average
selling prices of both residential and commercial roofing products. Partially
offsetting these improvements in operating results were higher raw material
costs, including asphalt, and higher selling, general and administrative
expenses mostly due to higher volume related distribution costs and higher
transportation costs, principally due to a rise in fuel costs.
- continued -
Net sales for the first quarter of 2005 reached $478.8 million, a
22.1% increase over first quarter of 2004 net sales of $392.0 million, with the
increase primarily due to higher unit volumes and, to a lesser extent, higher
average selling prices of both residential and commercial roofing products.
Interest expense for the first quarter of 2005 increased to $16.1
million from $14.2 million for the first quarter of 2004, primarily due to
higher average borrowings and a higher average interest rate. The higher average
borrowings in the first quarter of 2005 were primarily due to the issuance, in
July 2004, of $200 million 7 3/4% senior notes due 2014 together with an
issuance, in November 2004, of an additional $50 million of 7 3/4% senior notes
due 2014, partially offset by the redemption of the Company's $100 million
8 5/8% senior notes due 2006 and a reduction in the amount outstanding under the
Company's $350 million senior secured revolving credit facility. Other expense,
net was $1.0 million for the first quarter of 2005 compared with $0.8 million
for the first quarter of 2004.
OTHER MATTERS
At April 3, 2005, long-term debt including current maturities was
$688.0 million, including no amount outstanding under the Company's $350 million
senior secured revolving credit facility.
* * * *
- continued -
Building Materials Corporation of America, which operates under the
name of GAF Materials Corporation, is an indirect subsidiary of G-I Holdings
Inc., with annual sales in 2004 approximating $1.8 billion, and is North
America's largest manufacturer of residential and commercial roofing products
and specialty building products.
This press release contains "forward looking statements" within the
meaning of the federal securities laws with respect to the Company's financial
results and future operations and, as such, concerns matters that are not
historical facts. These statements are subject to risks and uncertainties that
could cause actual results to differ materially from those expressed in such
statements. Important factors that could cause such differences are discussed in
the Company's filings with the U.S. Securities and Exchange Commission and are
incorporated herein by reference.
- continued -
BUILDING MATERIALS CORPORATION OF AMERICA
SALES AND EARNINGS DATA (Unaudited)
(Dollars in millions)
- --------------------------------------------------------------------------------
First Quarter Ended
-------------------
April 3, 2005 April 4, 2004
------------- -------------
Net Sales $ 478.8 $ 392.0
-------- --------
Costs and expenses, net: (1)
Cost of products sold 335.7 274.1
Selling, general and administrative 105.3 86.0
-------- --------
Total costs and expenses, net 441.0 360.1
-------- --------
Operating income 37.8 31.9
Interest expense (16.1) (14.2)
Other expense, net (1.0) (0.8)
-------- --------
Income before income taxes 20.7 16.9
Income tax expense (7.9) (6.3)
-------- --------
Net income $ 12.8 $ 10.6
======== ========
- --------------------------------------------------------------------------------
(1) For the three month periods ended April 3, 2005 and April 4, 2004,
depreciation and amortization amounted to $11.5 and $10.6 million,
respectively.