EXHIBIT 99.1
FOR IMMEDIATE RELEASE Contact:
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Wednesday, April 21, 2004 John F. Rebele
Senior Vice President
and Chief Financial Officer
Building Materials Corporation
of America
(973) 628-4038
BUILDING MATERIALS CORPORATION OF AMERICA ANNOUNCES
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RECORD FIRST QUARTER OPERATING RESULTS
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Wayne, NJ -- Building Materials Corporation of America ("BMCA" or "the
Company"), announced today record first quarter of 2004 net income of $10.6
million compared with net income of $3.6 million in the first quarter of 2003.
The increase in first quarter of 2004 net income was primarily attributable to
higher operating income, together with lower other expenses, partially offset by
higher interest expense.
Operating income in the first quarter of 2004 was a record $31.9
million compared with $20.7 million in the first quarter of 2003, representing
an increase of $11.2 million or 54.1%. Operating results were positively
affected by record net sales of residential and commercial roofing products,
partially offset by higher selling, general and administrative expenses due to
higher volume related expenses and transportation costs.
Net sales for the first quarter of 2004 reached a record of $392.0
million, a 15.7% increase over first quarter of 2003 net sales of $338.9
million, with the increase primarily due to higher unit volumes and higher
average selling prices of both residential and commercial roofing products.
Interest expense for the first quarter of 2004 increased to $14.2
million from $13.5 million for the same period in 2003, primarily due to higher
average borrowings partially offset by a lower
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average interest rate. Other expense, net was $0.8 million for the first quarter
of 2004 compared with $1.6 million for the same period in 2003, primarily due to
a decline in financing costs in connection with the termination of the Accounts
Receivable Securitization Agreement in July 2003.
OTHER MATTERS
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On Friday, April 16, 2004, BMCA issued a news release announcing that
the Company has reached an agreement to acquire a manufacturing facility in
Quakertown, Pennsylvania from Atlas Roofing Corporation. The Quakertown
manufacturing facility provides BMCA with immediate production capacity to keep
pace with the growing demand for its products in the North American markets,
plus the potential for additional capacity expansion, as well as saturated felt
products. The transaction is expected to close on May 7, 2004. With the
acquisition of this manufacturing facility, BMCA has decided it will not
construct the new shingle manufacturing facility in the Northeast, the
anticipated construction of which had been announced on February 9, 2004.
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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 2003 exceeding $1.6 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 4, 2004 March 30, 2003
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Net Sales $ 392.0 $ 338.9
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Costs and expenses, net: (1)
Cost of products sold 274.1 245.9
Selling, general and administrative 86.0 72.3
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Total costs and expenses, net 360.1 318.2
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Operating income 31.9 20.7
Interest expense (14.2) (13.5)
Other expense, net (0.8) (1.6)
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Income before income taxes 16.9 5.6
Income tax provision (6.3) (2.0)
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Net income $ 10.6 $ 3.6
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(1) For the three month periods ended April 4, 2004 and March 30, 2003,
depreciation and amortization amounted to $10.6 and $10.0 million,
respectively.