EXHIBIT 99.1
FOR IMMEDIATE RELEASE Contact:
Friday, April 28, 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
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FIRST QUARTER RESULTS
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Building Materials Corporation of America ("BMCA" or "the Company")
announced today first quarter of 2006 net income of $10.4 million compared to
net income of $12.8 million in the first quarter of 2005. The decrease in first
quarter 2006 net income was primarily attributable to lower income before
interest expense and income taxes, partially offset by lower interest expense.
Income before interest expense and income taxes in the first quarter of
2006 was $31.2 million compared to $36.8 million in the first quarter of 2005.
Income before interest expense and income taxes in the first quarter of 2006 was
positively affected by increased net sales of both residential and commercial
roofing products primarily resulting from higher average selling prices, which
was more than offset by 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 first quarter of 2006 decreased to $14.5 million
from $16.1 million for the first quarter of 2005, primarily due to lower average
borrowings.
Net sales for the first quarter of 2006 reached $505.0 million, a 5.5%
increase over first quarter of 2005 net sales of $478.8 million, with the
increase due to higher net sales of both residential and commercial roofing
products primarily resulting from higher average selling prices.
OTHER MATTERS
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At April 2, 2006, cash and cash equivalents amounting to $8.1 million were
on hand, and long-term debt including current maturities was $687.6 million,
which amount includes $152.0 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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First Quarter Ended
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April 2, 2006 April 3, 2005
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Net sales $ 505.0 $ 478.8
Costs and expenses, net: (1)
Cost of products sold 359.5 335.7
Selling, general and administrative 114.6 105.3
Other (income) expense, net (0.3) 1.0
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Total costs and expenses, net 473.8 442.0
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Income before interest expense and income
taxes 31.2 36.8
Interest expense (14.5) (16.1)
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Income before income taxes 16.7 20.7
Income tax expense (6.3) (7.9)
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Net income $ 10.4 $ 12.8
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(1) For the three month periods ended April 2, 2006 and April 3, 2005,
depreciation and amortization amounted to $12.5 and $11.5 million,
respectively.