<PAGE>

================================================================================

                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549
                            ______________________

                                   FORM 10-Q

          [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934
               For the quarterly period ended October 31, 2000.

                                      OR

          [_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934
                     For the transition period from    to

                        Commission file number: 0-21448


                          NATIONAL HOME CENTERS, INC.
            (Exact name of registrant as specified in its charter)

                Arkansas                             71-0403343
     (State or other jurisdiction of              (I.R.S. Employer
     incorporation or organization)             Identification No.)

                               Highway 265 North
                          Springdale, Arkansas 72765
         (Address of principal executive offices, including zip code)

                                (501) 756-1700
             (Registrant's telephone number, including area code)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such report(s), and (2) has been subject to such
filing requirements for the past 90 days. Yes  X   No_______.
                                             -----

     As of December 12, 2000 National Home Centers, Inc. had 7,142,251 shares of
$0.01 par value Common Stock outstanding.

================================================================================
<PAGE>

                        PART I - FINANCIAL INFORMATION
                         ITEM I - FINANCIAL STATEMENTS

                  NATIONAL HOME CENTERS, INC. AND SUBSIDIARY
                     CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
                                                           October 31,      January 31,
                                                               2000            2000
Assets                                                     (Unaudited)          (1)
---------------------------------------------------------------------------------------
<S>                                                       <C>               <C>
Current Assets:
   Cash                                                   $     36,947           43,847
   Accounts Receivable                                       9,530,509        9,994,939
   Inventories                                              13,484,346       14,675,988
   Other                                                       551,394          541,606
---------------------------------------------------------------------------------------

      Total Current Assets                                  23,603,196       25,256,380
---------------------------------------------------------------------------------------

Property, Plant and Equipment                               19,170,987       18,342,462
Less Accumulated Depreciation                               10,795,571       10,611,433
---------------------------------------------------------------------------------------

      Net Property, Plant and Equipment                      8,375,416        7,731,029
---------------------------------------------------------------------------------------

Other Assets, Net of Amortization                            2,953,115        2,908,675
---------------------------------------------------------------------------------------

                                                          $ 34,931,727       35,896,084
---------------------------------------------------------------------------------------

Liabilities and Stockholders' Equity
---------------------------------------------------------------------------------------
Current Liabilities:
   Current Installments of Long-Term Debt                 $    698,136          988,832
   Accounts Payable                                          6,899,824        6,491,277
   Accrued Expenses                                          1,981,675        3,079,971
---------------------------------------------------------------------------------------

      Total Current Liabilities                              9,579,635       10,560,080
---------------------------------------------------------------------------------------

Long-Term Debt, Excluding Current Installments              14,401,948       15,030,208
Stockholders' Equity                                        10,950,144       10,305,796
---------------------------------------------------------------------------------------

                                                          $ 34,931,727       35,896,084
---------------------------------------------------------------------------------------
</TABLE>

(1) January 31, 2000 balances are condensed from the audited consolidated
    balance sheet.

See accompanying notes to Condensed Consolidated Financial Statements.

                                       2
<PAGE>

                  NATIONAL HOME CENTERS, INC. AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                  Three Months Ended                   Nine Months Ended
                                                      October 31,                         October 31,
                                            ---------------------------------------------------------------
(Unaudited)                                       2000              1999             2000          1999
-----------------------------------------------------------------------------------------------------------
<S>                                         <C>                  <C>             <C>             <C>
Net Sales                                   $   25,230,850       29,968,492      77,876,456      83,788,200
Cost of Sales                                   19,014,433       23,588,025      59,350,070      65,514,855
-----------------------------------------------------------------------------------------------------------

     Gross Profit                                6,216,417        6,380,467      18,526,386      18,273,345
-----------------------------------------------------------------------------------------------------------

Selling, General and
  Administrative Expenses:
     Salaries and Benefits                       3,952,973        3,761,462      11,489,563      10,826,994
     Rent                                          327,075          292,354         922,871         855,477
     Depreciation and Amortization                 312,338          271,623         946,779         955,383
     Other                                       1,183,130        1,335,208       3,393,619       3,584,708
-----------------------------------------------------------------------------------------------------------
     Total Selling, General and
       Administrative Expenses                   5,775,516        5,660,647      16,752,832      16,222,562
-----------------------------------------------------------------------------------------------------------

         Operating Income                          440,901          719,820       1,773,554       2,050,783
Interest Expense                                   372,893          373,097       1,129,206       1,042,882
-----------------------------------------------------------------------------------------------------------

    Earnings Before Income Taxes                    68,008          346,723         644,348       1,007,901
Income Taxes                                             0                0               0               0
-----------------------------------------------------------------------------------------------------------

     Net Earnings                           $       68,008          346,723         644,348       1,007,901
-----------------------------------------------------------------------------------------------------------
Earnings Per Share
    (basic and diluted)                     $         0.01             0.05            0.09            0.14
-----------------------------------------------------------------------------------------------------------

Weighted Average Number of
     Common Shares Outstanding                   7,142,251        7,142,251       7,142,251       7,142,251
-----------------------------------------------------------------------------------------------------------
</TABLE>

See accompanying notes to Condensed Consolidated Financial Statements.

                                       3
<PAGE>

                  NATIONAL HOME CENTERS, INC. AND SUBSIDIARY
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                                                            Nine Months Ended
                                                                                                October 31,
                                                                                   -----------------------------------
(Unaudited)                                                                             2000                  1999
----------------------------------------------------------------------------------------------------------------------
<S>                                                                                <C>                      <C>
Cash Flows from Operating Activities:
  Net Earnings                                                                     $     644,348             1,007,901
  Adjustments to Reconcile Net Earnings to Net Cash
    Provided by (Used in) Operating Activities:
      Depreciation and Amortization                                                      946,779               955,383
      Loss (Gain) on Disposal of Property, Plant and Equipment                           (74,554)               91,742
      Decrease in Cash Surrender Value of Life Insurance                                       0                63,404
      Changes in Assets and Liabilities:
           Accounts Receivable                                                           464,430            (4,158,669)
           Inventories                                                                 1,191,642                24,271
           Other Current Assets                                                           (9,788)               31,385
           Accounts Payable                                                              408,547             2,266,611
           Accrued Expenses                                                           (1,098,296)           (1,368,021)
----------------------------------------------------------------------------------------------------------------------

             Net Cash Provided by (Used in) Operating Activities                       2,473,108            (1,085,993)
----------------------------------------------------------------------------------------------------------------------
Cash Flows from Investing Activities:
  Additions to Property, Plant and Equipment                                          (1,060,776)             (741,722)
  Proceeds from Sale of Property, Plant and Equipment                                     80,279                14,400
  Increase in Other Assets                                                              (180,075)             (359,134)
----------------------------------------------------------------------------------------------------------------------

             Net Cash Used in Investing Activities                                    (1,160,572)           (1,086,456)
----------------------------------------------------------------------------------------------------------------------
Cash Flows from Financing Activities:
  Proceeds from Long-Term Debt                                                         2,187,109             3,821,729
  Repayments of Long-Term Debt                                                        (3,506,545)           (1,658,300)
----------------------------------------------------------------------------------------------------------------------

             Net Cash Provided by (Used in) Financing Activities                      (1,319,436)            2,163,429
----------------------------------------------------------------------------------------------------------------------
Net Decrease in Cash                                                                      (6,900)               (9,020)
Cash at Beginning of Period                                                               43,847                57,984
----------------------------------------------------------------------------------------------------------------------

Cash at End of Period                                                              $      36,947                48,964
======================================================================================================================
Supplemental Disclosures:
======================================================================================================================
  Interest Paid                                                                    $   1,143,387             1,025,842
  Acquisition of equipment for notes payable                                             400,480                     0
======================================================================================================================
</TABLE>

See accompanying notes to Condensed Consolidated Financial Statements.

                                       4
<PAGE>

          NATIONAL HOME CENTERS, INC. ("THE COMPANY") AND SUBSIDIARY
                        NOTES TO CONDENSED CONSOLIDATED
                             FINANCIAL STATEMENTS

                               October 31, 2000

1.   Basis of Presentation
     ---------------------
     The accompanying unaudited condensed consolidated financial statements have
     been prepared in accordance with generally accepted accounting principles
     for interim financial information and with the instructions to Form 10-Q
     and Article 10 of Regulation S-X of the Securities and Exchange Commission.
     Accordingly, the financial statements do not include all of the information
     and notes required by generally accepted accounting principles for complete
     financial statements.  In the opinion of management, all adjustments
     (consisting of normal recurring accruals) considered necessary for a fair
     presentation have been included.  Results of operations for the three
     months and nine months ended October 31, 2000, are not necessarily
     indicative of the results to be expected for the fiscal year ending January
     31, 2001.  For further information, refer to the consolidated financial
     statements and related notes thereto included in the Company's Annual
                                                                    ------
     Report on Form 10-K filed with the Commission on May 1, 2000.
     -------------------

2.   Income Taxes
     ------------
     No income tax provision was recorded for the three months or nine months
     ended October 31, 2000 or 1999 due to the realization of previously
     unrecognized NOL carryforwards.

ITEM 2
------

              MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
              --------------------------------------------------
                      OPERATIONS AND FINANCIAL CONDITION
                      ----------------------------------

                                    General
                                    -------

National Home Centers, Inc., an Arkansas corporation, ("the Company") is a full
line retailer of home improvement products and building materials, with eight
locations in Arkansas.  The Company serves retail consumers and professional
contractors primarily in Arkansas and also in Oklahoma, Missouri and Kansas.

Over the past several years, the Company has experienced increased competition
in its markets from other national and/or regional chains that are seeking to
gain or retain market share by reducing prices.  This has continued to place
pressure on all of the Company's stores and their respective sales, gross
margins and operating income.

                                       5
<PAGE>

                             Results of Operations
                             ---------------------

Three Months Ended October 31, 2000 and 1999
--------------------------------------------

Net sales for the third quarter of fiscal 2000 decreased 16% to $25.2 million,
compared to $30.0 million for the third quarter of fiscal 1999.  Comparable
store sales in the third quarter of fiscal 2000 decreased 16% over the same
period of fiscal 1999. Deflation in the prices of lumber and other building
materials has adversely affected the Company's sales revenues, as it has most
companies in the industry.  For example, composite prices for framing lumber
fell approximately 30% in the third quarter.  In addition, higher mortgage
interest rates have slowed the growth of residential housing developments in
some markets.  Net income for the third quarter of fiscal 2000 was $68,000 or
$0.01 income per share, compared with net income for the third quarter of fiscal
1999 of $347,000 or $0.05 income per share. EBITDA (earnings before interest,
taxes, depreciation and amortization) was $753,000 versus $991,000 in the third
quarter last year.  The Company operated eight stores at the end of the quarter.
For the quarter, the Company's revenues consisted of 81% to professional
contractors and 19% to retail customers versus 83% and 17%, respectively, in the
third quarter last year.

Gross profit as a percentage of net sales for the third quarter of fiscal 2000
increased to 24.6% from 21.3% for the same period last year. Gross margins have
increased as a result of management's efforts to increase margins in all
categories of products.

Selling, general and administrative expenses increased to 22.9% of net sales for
the third quarter of fiscal 2000 compared to 18.9% of net sales for the same
period last year. Expenses as a percentage of sales were higher due to the lower
sales dollars.  However, certain expenses were lower as a percentage of net
sales for the period compared to last year, while certain others reflect
increases.  The increase in salaries and benefits reflects the higher costs
associated with the tight labor markets in which the Company operates.  In
addition, transportation expenses (included in other selling, general and
administrative expenses) were higher as a percentage of net sales due to the
large increase in fuel costs.

Net interest expense as a percentage of net sales was 1.5% for the quarter ended
October 31, 2000, compared to 1.2% for the same period last year, primarily due
to the increase in interest rates.

Nine Months Ended October 31, 2000 and 1999
-------------------------------------------

Net sales for the nine months ended October 31, 2000 were down 7% to $77.9
million, compared to $83.8 million for the same period of fiscal 1999.
Comparable store sales for the nine months ended October 31, 2000 were also down
7% over the same period of fiscal 1999.  Net income for the nine months ended
October 31, 2000 was $644,000 or $0.09 income per share, compared with net
income for the same period in 1999 of $1,008,000 or $0.14 income per share.
EBITDA (earnings before interest, taxes, depreciation and amortization) was
$2,720,000 versus $3,006,000 in the same period last year. For the nine months
ended October 31, 2000, the Company's revenues consisted of 80% to professional
contractors and 20% to retail customers versus 83% and 17%, respectively, in the
same period last year.

                                       6
<PAGE>

Gross profit as a percentage of net sales for the first nine months of fiscal
2000 increased to 23.8% from 21.8% for the same period last year.  Gross margins
have increased as a result of management's efforts to increase margins in all
categories of products.

Selling, general and administrative expenses increased to 21.5% of net sales for
the first nine months of fiscal 2000, compared to 19.4% of net sales for the
same period last year. Expenses as a percentage of sales were higher due to the
lower sales dollars.  Certain expenses were lower as a percentage of net sales
for the period compared to last year, while certain others reflect increases.
The increase in salaries and benefits reflects the higher costs associated with
the tight labor markets in which the Company operates.  In addition,
transportation expenses (included in other selling, general and administrative
expenses) were higher as a percentage of net sales due to the large increase in
fuel costs.

Net interest expense as a percentage of net sales was 1.5% for the nine months
ended October 31, 2000, compared to 1.2% for the same period last year,
primarily due to the increase in interest rates.


                        Liquidity and Capital Resources
                        -------------------------------

The Company's working capital at October 31, 2000 decreased to $14.0 million
from $14.7 million at January 31, 2000, primarily due to lower inventories and
lower accrued expenses.

The Company's primary capital needs are to finance operations.  During the nine
months ended October 31, 2000, operating activities provided net cash of $2.5
million.  Primary sources of cash from operating activities included
approximately $1.2 million from decreases in inventories and $1.6 million from
net income, adjusted for depreciation and amortization.

Net cash used in investing activities for the first nine months of fiscal 2000
was approximately $1.2 million, principally due to purchases of equipment.  Net
cash used by financing activities during the first nine months of fiscal 2000
totaled approximately $1.3 million, resulting from net repayments of long-term
debt.

On July 15, 1998, the Company entered into a loan and security agreement
providing a $20 million revolving line of credit. This agreement expires in July
2002.  On October 1, 2000, the bank providing the line of credit closed its
commercial lending division and transferred and assigned all rights and
obligations under the agreement to another lender.  All terms and conditions
continued as they were under the original agreement.  The agreement provides for
interest to be charged at .50% per annum in excess of the Prime Rate.  The
agreement limits availability to a borrowing base of 85% of eligible accounts
receivable and 65% of inventory, with each capped at $10 million. The agreement
does not contain any financial covenants.  The Company had additional available
borrowing capacity of approximately $1.3 million under the revolving line of
credit as of October 31, 2000.  On November 1, 2000, the Company entered into an
amendment to the agreement, which reduced the interest rate to 0.375% per annum
in excess of the Prime Rate.

As of October 31, 2000, the Company is generally current with all accounts
payable vendors and is utilizing discounts on payments made to vendors that
supply inventory to the Company.

                                       7
<PAGE>

                          Forward-looking Statements
                          --------------------------

Many issues discussed in this annual report are forward-looking statements made
under Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. These statements involve known
and unknown risks, uncertainties and other factors that may cause actual events
or results, levels of activity, growth, performance, earnings per share or
achievements to be materially different from any future results, levels of
activity, growth, performance, earning per share or achievements expressed or
implied by such forward-looking statements. Investors are cautioned that all
forward-looking statements involve risks and uncertainties. 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 in such statements 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 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; interest
rates; weather; and other factors described from time to time in the Company's
Securities and Exchange Commission filings.

                    Impact of Inflation and Changing Prices
                    ---------------------------------------

Although the Company cannot accurately determine the precise effect of inflation
on its operations, it does not believe inflation has had a material effect on
sales or results of operations.


ITEM 3
------

           Quantitative and Qualitative Disclosure about Market Risk
           ---------------------------------------------------------

The Company is exposed to changes in interest rates on a majority of its total
debt. Any increases in interest rates could also affect the ability of the
Company to collect accounts receivable from customers. The Company depends on
the market for favorable long-term mortgage rates to help generate sales and
create housing turnover. Should mortgage rates increase substantially, the
Company could have difficulty generating sales. The Company's exposure to
commodity markets for lumber, plywood and other building materials does
fluctuate in pricing but is limited to what is held in inventory as the Company
does not trade commodity futures or options. Quotes to customers for proposed
products to be sold are short-term and increases or decreases in commodity
pricing are generally passed on to the customer. The Company has no foreign
sales and accepts payment only in US dollars; therefore it is not subject to any
currency exchange rate risk.

                          PART II - OTHER INFORMATION


Item 1. Legal Proceedings.

On May 24, 2000, Raeleen Ann Barnes Matlock, acting as administratrix for the
estate of Jimmy Ray Barnes, filed a lawsuit in the Circuit Court of Pulaski
County, Arkansas against W.M. Barr

                                       8
<PAGE>

& Co., Inc., Ring Can Corporation, and the Company. The lawsuit alleges
negligence, breach of warranty, and product liability claims against the
defendants in connection with the manufacture, distribution, and sale of an
allegedly defective container of paint thinner. The plaintiff is seeking actual
damages in the amount of $6,000,000 and punitive damages in the same amount. On
June 20, 2000, the Company filed an answer to the complaint, generally denying
the allegations with regard to the Company and requesting that the court dismiss
the complaint as against the Company.

On November 3, 2000, a judgment was entered against the Company in the
Washington County, Arkansas Circuit Court, Case Number CIV 97-1553, in favor of
James and Patricia Larson in the amount of $235,000 for damages suffered in a
1997 accident. The Company, along with its insurance provider as surety, has
filed an appeal with the Arkansas Court of Appeals and has posted the
appropriate supersedeas bond. The final amount of any potential judgment will be
covered by insurance.

The Company is also, at times, a party to routine litigation incidental to its
business.  In the opinion of the Company's management, such proceedings should
not, individually or in the aggregate, have a material adverse effect on the
Company's results of operations or financial condition.  The Company maintains
insurance in such amounts and with such coverage and deductibles as management
believes are reasonable.

Item 2.   Changes in Securities.

Not applicable.

Item 3.   Defaults Upon Senior Securities.

Not applicable.

Item 4.   Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 5.   Other Information.

Not applicable.


Item 6.   Exhibits and Reports on Form 8K.

(a)  Exhibits

                                                                 Sequentially
                                                                 ------------
     Exhibits No.          Description of Exhibit               Numbered Page
     ------------          ----------------------               -------------

     10.1             Amendment No. 1 to Loan Documents             11-14
     27.1             Financial Data Schedule                       15-16

(b)  Reports on Form 8-K.
       Not applicable.

                                       9
<PAGE>

                                  SIGNATURES


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                        National Home Centers, Inc.


Date:  December 12, 2000                /s/ Dwain A. Newman
                                        -------------------
                                        Dwain A. Newman
                                        Chief Executive Officer and
                                        Chairman


Date:  December 12, 2000                /s/ Brent A. Hanby
                                        ------------------
                                        Brent A. Hanby
                                        Executive Vice President and
                                        Chief Financial Officer


                                       10