Five New PCI Builders Resources Stores Now in Operation
KANSAS CITY, Mo., Oct. 16 /PRNewswire/ -- Payless Cashways, Inc.
(OTC Bulletin Board: PCSH), a full-line building materials and finishing
products company, today announced several initiatives that will accelerate the
ongoing transition of the company's business model to focus on the
professional builder, remodel and repair contractor, institutional buyer and
project-oriented consumer, including the opening of PCI Builders Resource
stores and the closing of a number of other stores.
Five new PCI Builders Resources facilities have opened in Cincinnati,
Ohio; Lake Dallas and Duncanville, Texas; Denver, Colorado; and Kansas City,
Missouri. PCI Builders Resource facilities, one of the Company's new growth
initiatives, are primarily developed, inventoried, staffed, and equipped to
serve the professional homebuilder. Professional homebuilders currently
represent the largest segment of Payless Cashways' professional business.
These new locations will provide for more intense focus and better and more
complete services for the homebuilder, and allow the Company to benefit from
better leverage of resources in a lower cost non-retail facility capable of
higher volume capacity.
Millard Barron, President and CEO commented, "I continue to be pleased
with our developing business model and our improving profit model. These five
new PCI Builders Resource operations represent our commitment to become the
dominant and preeminent supplier for homebuilders in our markets. Our
experienced senior team is comprised of some of the best executives in the
industry, and together we are developing PCI Builders Resource facilities and
Contractor Supply stores, adding to our manufacturing capability, enhancing
and improving our full-line Payless Cashways, Inc. locations, and
strengthening our Company-wide sales organization in a very organized and
efficient manner."
The Company also announced that in coordination with the introduction of
these new outlets, 22 existing retail locations will be closed. As a result,
the Company presently anticipates that its fourth quarter 2000 results will
include non-recurring, special charges of approximately $13 to $15 million,
net of taxes, to provide for corporate and store staff eliminations, lease
commitments, and certain fixed asset and inventory disposal costs associated
with the consolidation and closure of these retail locations.
Mr. Barron continued, "In August, 2000, the Company retained Andersen
Consulting, as well as the Peter J. Solomon Company, a leading investment
banking firm providing financial and strategic advisory services to a select
group of public, private, and institutional clients. These groups have
assisted and partnered with management and the Board in reviewing and
considering the business model, the profit model, and appropriate financial
strategies. In that regard, we will continue to develop and implement
initiatives designed around our mission statement and our target customers,
which are in the best interests of our stockholders. While closing stores is
always a difficult decision, the continuing reallocation and redeployment of
our assets and resources is essential as we reposition our Company.
Additionally, these actions will allow us to significantly improve our balance
sheet through a debt reduction goal of $60 million, and better position us to
attract new investment for growth in the future."
About the Company
Payless Cashways, Inc. is a full-line building materials and finishing
products company focusing on the professional builder, remodel and repair
contractor, institutional buyer, and project-oriented consumer. The Company
operates 155 stores in 18 states located in the Midwestern, Southwestern,
Pacific Coast and Rocky Mountain areas. The stores operate under the names
Payless Cashways, Furrow, Lumberjack, Hugh M. Woods, Knox Lumber, PCI Builders
Resource and Contractor Supply.
Forward-Looking Statements
Forward-looking statements are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. There are certain
important factors that could cause results to differ materially from those
anticipated by the forward-looking statements made above. These statements
are based on the current plans and expectations of the Company. Investors are
cautioned that all forward-looking statements involve risks and uncertainty.
Among the factors that could cause actual results to differ materially are the
following: commodity prices; the strength of the commercial real estate
market, competitor activities; interest rates; supplier support; stability of
customer demand; stability of the work force; consumer spending and debt
levels; new and existing housing activity; product mix; growth of certain
market segments; weather; an excess of retail space devoted to the sale of
building materials; and continued vendor and financial institutional support.
Additional information concerning these and other factors is contained in the
Company's SEC filings, which are available by contacting the Company or on the
Company's website, payless.cashways.com .
SOURCE Payless Cashways, Inc.
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Related links:
http://www.payless.cashways.com
CONTACT:
Richard B. Witaszak, Sr. V.P. Finance & CFO
of Payless Cashways, Inc., 816-347-6974,
web.investor@payless.cashways.com
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