Building Materials Holding Corp. reported in preliminary results today a net loss of $104 million in the fourth quarter, pushing its net loss for all 2008 to $215 million.
Sales for the No. 5 LBM operation on the Prosales 100 fell 42% for the quarter to $233 million from $403 million in 2007's fourth quarter. For the year, BMHC sales decreased 39% to $1.3 billion from $2.2 billion.
While severe, this year's fourth-quarter net loss was far lighter than the $331 million loss in the final three months of 2007. Likewise, the $215 million loss for the year was a sharp improvement from 2007's loss of $313 million.
During the year, the company moved its headquarters from San Francisco to Boise, Idaho, closed 42 locations and consolidated 15 business units that were "deemed underperforming." BMHC also reduced its total headcount by 42% in its field operations and 12% in its administration department.
The company's loss from continuing operations for 2008 improved to $193 million from $266 million for 2007.
BMHC also revealed it has obtained a temporary waiver "of certain conditions to borrowing" under its credit agreement. The waiver will allow BMHC to borrow up to $20 million through April 15 while it continues to hammer out a permanent amendment to its credit agreement.
As of Feb. 28, there were no outstanding borrowings on the revolver and the outstanding balance on the term note was $320 million, the company said. BMHC says it wants to amend the credit agreement to reflect "current and anticipated market conditions."
"The significant and ongoing correction in the homebuilding industry as well as costs associated with closing underperforming business units have continued to negatively affect our operating performance," Robert Mellor, BMHC chairman and CEO, said in a statement. "As a result, we continue to assess the performance of our business units and relentlessly drive improvements in cost efficiencies."
BMHC ranked fifth on the 2008 ProSales 100.