EXHIBIT 99.1
FOR IMMEDIATE RELEASE
- --------------------- Contact:
Friday, July 29, 2005 John F. Rebele
Senior Vice President
Chief Financial Officer and
Chief Administrative Officer
Building Materials
Corporation of America
(973) 628-4038
BUILDING MATERIALS CORPORATION OF AMERICA ANNOUNCES
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SECOND QUARTER OPERATING RESULTS
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Building Materials Corporation of America ("BMCA" or "the Company")
announced today second quarter of 2005 net income of $18.5 million compared to
net income of $18.8 million in the second quarter of 2004. The decrease in
second quarter of 2005 net income was primarily attributable to higher operating
income, offset by higher interest expense and slightly higher other expenses.
Operating income in the second quarter of 2005 was $48.5 million
compared to $46.3 million in the second quarter of 2004. Operating income in the
second quarter of 2005 was positively affected by increased net sales primarily
resulting from higher average selling prices and higher unit volumes 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 distribution costs, primarily resulting from higher sales volume and a
rise in fuel prices.
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Net sales for the second quarter of 2005 reached $497.6 million, a
10.2% increase over second quarter of 2004 net sales of $451.5 million, with the
increase primarily due to higher average selling prices and higher unit volumes
of both residential and commercial roofing products.
Interest expense for the second quarter of 2005 increased to $16.4
million from $14.5 million for the second quarter of 2004, primarily due to a
higher average interest rate. Other expense, net was $2.2 million for the second
quarter of 2005 compared with $1.8 million for the second quarter of 2004.
FIRST SIX MONTHS OPERATING RESULTS
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For the first six months of 2005, BMCA announced net income of $31.4
million compared to net income of $29.5 million in the first six months of 2004.
The increase in the first six months of 2005 net income was primarily
attributable to higher operating income, partially offset by higher interest
expense and slightly higher other expenses.
Operating income for the first six months of 2005 was $86.3 million
compared to $78.2 million for the first six months of 2004. Operating income for
the first six months of 2005 was positively affected by increased net sales
primarily resulting from higher average selling prices and higher unit volumes
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 distribution costs, primarily resulting from higher sales volume and a
rise in fuel prices.
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Net sales for the first six months of 2005 reached $976.4 million, a
15.8% increase over the first six months of 2004 net sales of $843.5 million,
with the increase primarily due to higher average selling prices and higher unit
volumes of both residential and commercial roofing products.
Interest expense for the first six months of 2005 increased to $32.5
million from $28.7 million for the first six months of 2004, primarily due to a
higher average interest rate and higher average borrowings. The higher interest
expense in the first six months of 2005 was 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 $3.2 million for the first six months of 2005 compared with $2.5 million
for the first six months of 2004.
OTHER MATTERS
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At July 3, 2005, cash and cash equivalents amounting to $57.1 million
was on hand and long-term debt including current maturities was $687.3 million,
with no amount outstanding under the Company's $350 million senior secured
revolving credit facility.
On July 15, 2005, the Company used cash and cash equivalents on hand
and proceeds from its senior secured revolving credit facility to repay its
7 3/4 % senior notes due 2005 at maturity, aggregating $150.0 million plus
accrued interest of $2.9 million.
* * * *
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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.
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BUILDING MATERIALS CORPORATION OF AMERICA
SALES AND EARNINGS DATA (Unaudited)
(Dollars in millions)
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Second Quarter Ended Six Months Ended
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July 3, 2005 July 4, 2004 July 3, 2005 July 4, 2004
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Net sales $ 497.6 $ 451.5 $ 976.4 $ 843.5
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Costs and expenses, net: (1)
Cost of products sold 341.5 306.6 677.2 580.7
Selling, general and administrative 107.6 98.6 212.9 184.6
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Total costs and expenses, net 449.1 405.2 890.1 765.3
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Operating income 48.5 46.3 86.3 78.2
Interest expense (16.4) (14.5) (32.5) (28.7)
Other expense, net (2.2) (1.8) (3.2) (2.5)
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Income before income taxes 29.9 30.0 50.6 47.0
Income tax expense (11.4) (11.2) (19.2) (17.5)
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Net income $ 18.5 $ 18.8 $ 31.4 $ 29.5
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(1) For the three and six month periods ended July 3, 2005 and July 4, 2004,
depreciation and amortization amounted to $11.7, $11.4, $23.2 and $22.0
million, respectively.