Bison Building Materials and its related units reported today a net loss of $563,323 in October, its fourth full month under Chapter 11 protection from creditors. That pushes to $2.4 million the Houston-based company's net loss since filing for bankruptcy-law reorganization.
Bison's main legal entity and its seven related units reported $9.3 million in revenue and $10.9 million in disbursements during the month. Its gross margin of $2.8 million represented 30.4% of revenues, up from 28.7% in September. General and administrative expenses held steady at just under $3 million, and there were nearly $82,000 in payments to insiders, but Bison did manage to sell $110,373 in assets--two vehicles--producing a $3,000 gain.
Roughly $1.4 million of its $12.9 million in accounts receivables were more than 91 days past due. That's 10.7% of the total AR, up from 10.3% in September.
Bison---America's 14th-biggest LBM operation, according to the 2009 ProSales 100--filed for Chapter 11 protection on June 28. It recorded a loss of $16.1 million in $214 million in revenue during the fiscal year ended last April 30. It had been forecasting a negative net cash flow through Halloween of $2.2 million.
In court filings, Bison said its problems came after it began to expand along the Interstate 35 corridor in 2005 and then into Nevada, Arizona, Colorado, Ohio and New Mexico. "However, when the housing downturn occurred, the Debtors instituted a downsizing program and retrenched to its core Texas business" in metro Houston, one motion states. But even after it left the other markets, it still had to make lease payments on the locations that it closed.