EXHIBIT 99.1
FOR IMMEDIATE RELEASE
- --------------------- CONTACT:
THURSDAY, MARCH 9, 2006 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
FOURTH QUARTER AND FULL YEAR RESULTS
Building Materials Corporation of America ("BMCA" or "the Company")
announced today fourth quarter of 2005 net income of $8.6 million compared to
net income of $8.4 million in the fourth quarter of 2004. The increase in fourth
quarter 2005 net income was primarily attributable to lower interest expense,
partially offset by lower income before interest and income taxes.
Income before interest and income taxes in the fourth quarter of 2005
was $28.6 million compared to $29.2 million in the fourth quarter of 2004.
Income before interest and income taxes in the fourth quarter of 2005 was
positively affected by increased net sales of both residential and commercial
roofing products primarily resulting from higher average selling prices and a
decline in other expense, net. Partially offsetting these improvements in income
before interest and income taxes in the fourth quarter of 2005, were higher raw
material costs, including asphalt, higher energy costs and higher selling,
general and administrative expenses mostly due to higher distribution costs,
primarily resulting from a rise in fuel prices.
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Interest expense for the fourth quarter of 2005 decreased to $14.8
million from $15.8 million for the fourth quarter of 2004, primarily due to
lower average borrowings, partially offset by a slightly higher average interest
rate.
Net sales for the fourth quarter of 2005 reached $483.0 million, a
4.7% increase over fourth quarter of 2004 net sales of $461.1 million, with the
increase due to higher net sales of both residential and commercial roofing
products primarily resulting from higher average selling prices.
FULL YEAR RESULTS
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For the full year of 2005, BMCA announced net income of $61.0 million
compared to net income of $54.9 million for the full year of 2004. The increase
in the net income for the full year of 2005 was primarily attributable to higher
income before interest and income taxes and slightly lower interest expense.
Income before interest and income taxes for the full year of 2005 was
$160.6 million compared to $150.2 million for the full year of 2004. Income
before interest and income taxes for the full year of 2005 was positively
affected by increased net sales of both residential and commercial roofing
products primarily resulting from higher average selling prices and higher unit
volumes and a decline in other expense, net. Partially offsetting these
improvements in income before interest and income taxes for the full year of
2005, were higher raw material costs, including asphalt, higher energy costs 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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Interest expense for the full year of 2005 decreased to $62.3 million
from $62.7 million for the full year of 2004, primarily due to lower average
borrowings, partially offset by a slightly higher average interest rate.
Net sales for the full year of 2005 reached $1,955.8 million, a 10.3%
increase over the full year of 2004 net sales of $1,773.4 million, with the
increase primarily due to higher average selling prices and higher unit volumes
of both residential and commercial roofing products.
OTHER MATTERS
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At December 31, 2005, cash and cash equivalents amounting to $6.9
million was on hand and long-term debt including current maturities was $553.2
million, including $17.0 million outstanding under the Company's $350 million
senior secured revolving credit facility.
* * * *
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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 2005 approximating $2.0 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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FOURTH QUARTER ENDED TWELVE MONTHS ENDED
-------------------- -------------------
DEC. 31, 2005 DEC. 31, 2004 DEC. 31, 2005 DEC. 31, 2004
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Net sales $ 483.0 $ 461.1 $ 1,955.8 $ 1,773.4
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Costs and expenses, net: (1)
Cost of products sold 340.1 325.6 1,359.6 1,225.8
Selling, general and administrative 113.9 104.8 431.4 391.3
Other expense, net 0.4 1.5 4.2 6.1
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Total costs and expenses, net 454.4 431.9 1,795.2 1,623.2
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Income before interest and income taxes 28.6 29.2 160.6 150.2
Interest expense (14.8) (15.8) (62.3) (62.7)
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Income before income taxes 13.8 13.4 98.3 87.5
Income tax expense (5.2) (5.0) (37.3) (32.6)
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Net income $ 8.6 $ 8.4 $ 61.0 $ 54.9
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(1) For the three and twelve month periods ended December 31, 2005 and December
31, 2004, depreciation and amortization amounted to $12.6, $12.4, $47.8 and
$46.2 million, respectively.