National Home Centers, Inc. Announces Fourth Quarter and Year End Results

Apr 02, 2001, 01:00 ET from National Home Centers, Inc.

    SPRINGDALE, Ark., April 2 /PRNewswire/ --
 National Home Centers, Inc. (Nasdaq:   NHCI), today announced results for its
 fourth quarter ending January 31, 2001.  Harsh winter weather contributed to a
 net loss of $419,000, or $0.06 loss per share, compared with net income of
 $107,000 or $0.02 income per share in the fourth quarter last year.  Net sales
 decreased to $18.7 million compared with $26.3 million in the fourth quarter a
 year ago.  Comparable store sales for stores open more than one year decreased
 29%.  EBITDA (earnings before interest, taxes, depreciation and amortization)
 for the fourth quarter of fiscal 2000 was $318,000 versus $782,000 in the
 fourth quarter last year.  The Company finished the quarter operating the same
 eight stores which were operating a year ago.  For the fourth quarter, the
 Company's revenues consisted of 77% to professional contractors and 23% to
 retail customers versus 83% and 17%, respectively, in the fourth quarter last
 year.
     Net income for the full fiscal year ending January 31, 2001, was $226,000,
 or $0.03 per share, compared to net income of $1,115,000 or $0.16 per share
 last year.  Net sales for the twelve months decreased to $96.6 million
 compared to $110.0 million a year ago.  Comparable sales for stores open more
 than one year decreased 12% for the same period.  EBITDA for the fiscal year
 of 2000 was $3,039,000 versus $3,788,000 for the fiscal 1999.  For the year,
 the Company's revenues consisted of 79% to professional contractors and 21% to
 retail customers versus 83% and 17%, respectively, in the same full fiscal
 year last year.
     Commenting on the results, Dwain A. Newman, chairman and chief executive
 officer, said, "In light of the slowdown in the second half of the year, we
 are pleased to report our second consecutive year of profits.  The highly
 documented snow and icy weather began much earlier than normal, postponing
 most construction projects in all areas we serve during the fourth quarter and
 we delivered only limited amounts of building materials.  Our comparable store
 sales were also lower because of severe lumber deflation.  Sales prices and
 costs for our two largest sales categories, lumber and plywood, have been down
 as much as 40% during the last half of the year, which in turn produced lower
 revenue, even though in many cases, we were selling the same or higher
 quantities of items.  Most of these commodities are at their lowest prices in
 over six years.  In addition, we didn't sell as many of the larger multi-
 family construction projects during fiscal 2000 as we did the year before.
 Higher interest rates and elevated fuel costs contributed to the lower net
 income for the year as well.  We remain cautiously optimistic regarding the
 new year.  We hope to see more of the recent interest rate reductions to help
 stimulate the economy."
 
     National Home Centers is a supplier of home improvement products and
 building materials to retail customers and professional contractors.  Also as
 reported in the annual report and press releases, the Company has
 significantly upgraded its corporate internet website at www.nhci.com which
 features extensive product information.  The Company currently operates eight
 stores in Arkansas.  The common stock of National Home Centers is traded on
 the Nasdaq SmallCap Market under the symbol NHCI.
     Forward-looking statements in this press release are made pursuant to the
 safe harbor provision of the Private Securities Litigation Reform Act of 1995.
 There are various factors that could cause results to differ materially from
 those anticipated by some statements made in this press release.  Investors
 are cautioned that all forward-looking statements involve risks and
 uncertainty.  The Company does not undertake to publicly update or revise its
 forward-looking statements even if experience or future changes make it clear
 that any projected results expressed or implied therein will not be realized.
 Factors that could cause actual results to differ materially include, but are
 not limited to the following: the strength and extent of new and existing
 competition; the Company's ability to maintain competitive pricing in its
 markets; the Company's ability to maintain its management information systems;
 the Company's ability to maintain adequate levels of vendor support; the
 Company's ability to maintain adequate levels of lender support; the ability
 of the Company to increase sales; the Company's ability to attract, train and
 retain experienced, quality employees; the Company's ability to dispose of
 excess real estate and other assets; general economic conditions; housing
 turnover; attractive long-term interest rates; weather; and other factors
 described from time to time in the Company's Securities and Exchange
 Commission filings.
 
 
                          NATIONAL HOME CENTERS, INC.
                              Financial Highlights
                  (In thousands, except for per share amounts)
 
                                              Fourth Quarter Ended
                                                  January 31,
                                                  (unaudited)
                                              2001            2000
 
     Net sales                              $ 18,728        $ 26,252
     Net income (loss)                      $   (419)       $    107
     Income (loss) per share                $  (0.06)       $   0.02
     Average shares outstanding                7,142           7,142
 
                                                Fiscal Year Ended
                                                  January 31,
                                                   (Audited)
                                              2001            2000
 
     Net sales                              $ 96,604        $110,041
     Net income                             $    226        $  1,115
     Income per share                       $   0.03        $   0.16
     Average shares outstanding                7,142           7,142
 
 

SOURCE National Home Centers, Inc.
    SPRINGDALE, Ark., April 2 /PRNewswire/ --
 National Home Centers, Inc. (Nasdaq:   NHCI), today announced results for its
 fourth quarter ending January 31, 2001.  Harsh winter weather contributed to a
 net loss of $419,000, or $0.06 loss per share, compared with net income of
 $107,000 or $0.02 income per share in the fourth quarter last year.  Net sales
 decreased to $18.7 million compared with $26.3 million in the fourth quarter a
 year ago.  Comparable store sales for stores open more than one year decreased
 29%.  EBITDA (earnings before interest, taxes, depreciation and amortization)
 for the fourth quarter of fiscal 2000 was $318,000 versus $782,000 in the
 fourth quarter last year.  The Company finished the quarter operating the same
 eight stores which were operating a year ago.  For the fourth quarter, the
 Company's revenues consisted of 77% to professional contractors and 23% to
 retail customers versus 83% and 17%, respectively, in the fourth quarter last
 year.
     Net income for the full fiscal year ending January 31, 2001, was $226,000,
 or $0.03 per share, compared to net income of $1,115,000 or $0.16 per share
 last year.  Net sales for the twelve months decreased to $96.6 million
 compared to $110.0 million a year ago.  Comparable sales for stores open more
 than one year decreased 12% for the same period.  EBITDA for the fiscal year
 of 2000 was $3,039,000 versus $3,788,000 for the fiscal 1999.  For the year,
 the Company's revenues consisted of 79% to professional contractors and 21% to
 retail customers versus 83% and 17%, respectively, in the same full fiscal
 year last year.
     Commenting on the results, Dwain A. Newman, chairman and chief executive
 officer, said, "In light of the slowdown in the second half of the year, we
 are pleased to report our second consecutive year of profits.  The highly
 documented snow and icy weather began much earlier than normal, postponing
 most construction projects in all areas we serve during the fourth quarter and
 we delivered only limited amounts of building materials.  Our comparable store
 sales were also lower because of severe lumber deflation.  Sales prices and
 costs for our two largest sales categories, lumber and plywood, have been down
 as much as 40% during the last half of the year, which in turn produced lower
 revenue, even though in many cases, we were selling the same or higher
 quantities of items.  Most of these commodities are at their lowest prices in
 over six years.  In addition, we didn't sell as many of the larger multi-
 family construction projects during fiscal 2000 as we did the year before.
 Higher interest rates and elevated fuel costs contributed to the lower net
 income for the year as well.  We remain cautiously optimistic regarding the
 new year.  We hope to see more of the recent interest rate reductions to help
 stimulate the economy."
 
     National Home Centers is a supplier of home improvement products and
 building materials to retail customers and professional contractors.  Also as
 reported in the annual report and press releases, the Company has
 significantly upgraded its corporate internet website at www.nhci.com which
 features extensive product information.  The Company currently operates eight
 stores in Arkansas.  The common stock of National Home Centers is traded on
 the Nasdaq SmallCap Market under the symbol NHCI.
     Forward-looking statements in this press release are made pursuant to the
 safe harbor provision of the Private Securities Litigation Reform Act of 1995.
 There are various factors that could cause results to differ materially from
 those anticipated by some statements made in this press release.  Investors
 are cautioned that all forward-looking statements involve risks and
 uncertainty.  The Company does not undertake to publicly update or revise its
 forward-looking statements even if experience or future changes make it clear
 that any projected results expressed or implied therein will not be realized.
 Factors that could cause actual results to differ materially include, but are
 not limited to the following: the strength and extent of new and existing
 competition; the Company's ability to maintain competitive pricing in its
 markets; the Company's ability to maintain its management information systems;
 the Company's ability to maintain adequate levels of vendor support; the
 Company's ability to maintain adequate levels of lender support; the ability
 of the Company to increase sales; the Company's ability to attract, train and
 retain experienced, quality employees; the Company's ability to dispose of
 excess real estate and other assets; general economic conditions; housing
 turnover; attractive long-term interest rates; weather; and other factors
 described from time to time in the Company's Securities and Exchange
 Commission filings.
 
 
                          NATIONAL HOME CENTERS, INC.
                              Financial Highlights
                  (In thousands, except for per share amounts)
 
                                              Fourth Quarter Ended
                                                  January 31,
                                                  (unaudited)
                                              2001            2000
 
     Net sales                              $ 18,728        $ 26,252
     Net income (loss)                      $   (419)       $    107
     Income (loss) per share                $  (0.06)       $   0.02
     Average shares outstanding                7,142           7,142
 
                                                Fiscal Year Ended
                                                  January 31,
                                                   (Audited)
                                              2001            2000
 
     Net sales                              $ 96,604        $110,041
     Net income                             $    226        $  1,115
     Income per share                       $   0.03        $   0.16
     Average shares outstanding                7,142           7,142
 
 SOURCE  National Home Centers, Inc.