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INVESTOR Q&A 6.16.09

Business Overview

BMHC is one of the largest providers of building materials and residential construction services in the United States. We serve the homebuilding industry in the western and southern states through two recognized brands: as BMC West, we distribute building materials and manufacture building components for professional builders and contractors; as SelectBuild, we provide construction services to high-volume production homebuilders in key markets.

Both BMC West and SelectBuild maintain leadership in the market by ensuring that their customers consistently receive superior service, by expanding the breadth of offerings and by increasing productivity in the residential construction supply chain. Industry expertise and commitment to customers enable BMC West and SelectBuild to continue to strengthen their reputation and increase market share in targeted homebuilding markets across the United States.

Services and Products Offered Through Our Subsidiaries

  • Turnkey Construction Services. For high-volume production homebuilders, houses are built on-site, using integrated services that include labor and risk management, materials procurement, component manufacturing, and in certain markets, skilled labor crews that pour foundations, frame, set and anchor wood or concrete block walls, fasten roof trusses and sheath roofs, as well as install total plumbing and HVAC systems.
  • Component Manufacturing. Roof trusses, floor trusses and wall panels are designed and manufactured. In certain markets, the high-throughput needs of production homebuilders are served with dedicated component manufacturing.
  • Materials Handling. A broad range of building materials is supplied. Procurement, handling and distribution are streamlined, providing customized packages sequenced for job site requirements. On-time delivery is coordinated with a fleet of more than 2,000 handling and delivery vehicles.
  • Millwork Installation. Assembly, delivery and installation of pre-hung doors and windows, stairs, custom cabinets, and interior and exterior trim.
  • Value Engineering. Builders' plans are analyzed with recommendations to minimize materials usage, reduce construction cycle time and improve the quality of the finished home.

Key Investment Points

  • Focus on Construction Services and Manufactured Building Components. The expansion of construction services and manufactured building components - which include framing, shell construction, installation, millwork, trusses and wall panels - continues to be a core focus of BMHC's business strategy.
  • Execution of Growth Strategy. Using strict financial criteria and targeting companies that will complement our business strategy, we look for acquisitions that extend existing operations in growing building markets and those that provide entry into fast-growing, attractive new markets. In regions where we already have a presence and see additional growth opportunities, we may engage in de novo operations to expand our facilities and meet our objectives.
  • Optimizing Existing Operations. The subsidiaries of BMHC are dedicated to efficient, cost-effective and profitable performance in each market. To respond effectively to changes in markets, ongoing evaluations of the business units are conducted to assess productivity, profitability and strategic fit with the organization.


BMC Construction
BMC West