Building Materials Holding Corporation expects to return to profitability as early as this year, according to "first day" motions filed today under the company's Chapter 11 reorganization plan.
The company's projected reorganization income statement includes a gross profit of $158.5 million for 2009, followed by a profit of $209.5 million in 2010, and $289.7 million in 2011.
In contrast, BMHC reported a first quarter 2009 net loss of $45.2 million from a net loss of $33.9 million in the same three-month period a year ago. The dealer also reported first quarter sales plummeted 51% to $167 million from sales of $343 million in the first period 2008.
New sales projections, according to court document, project a 2009 revenue of $748.5 million, following the reorganization. For 2010, BMHC predicts total revenue of $943.6 million: nearly a 30% increase.
BMHC's EBITA projections - earnings before interest, taxes and amortization - call for a $20 million loss in 2009, but a profit of $21.2 million in 2010, followed by profits of $66.6 million in 2011 and $126.4 million in 2012.
In this year's ProSales 100, BMHC posted the largest sales decline in 2008 of any dealer on the list: down nearly 41% to $1.3 billion.
The dealer also slashed about 5,800 jobs last year, about a third of its total workforce. Court documents state that BMHC employed 22,824 employees as of June 2006 and is now down to 5,500 total employees. More than 78 yards and facilities were closed down or consolidated in the past year-and-a-half.
After filing for Chapter 11 in U.S. Bankruptcy Court in Wilmington, Del., BMHC said no additional job cuts or yard closings are on the immediate horizon, although the company revealed that it "engaged in extensive efforts to explore" the sale of itself. BMHC also promised no interruptions of service to customers.
The company has received backing for $80 million in debtor-in-possession financing from Wells Fargo Bank and other existing lenders, as part of its reorganization effort. About $40 million will be immediately available to the company upon interim court approval, which is an increase of $20 million from the company's current credit revolver.
Under the proposed reorganization plan, the company's existing secured lenders will convert their interests into equity in the newly private BMHC and will receive interests in $135 million in newly issued long-term notes.
BMHC's unsecured creditors will receive a cash distribution and the right to receive future payments based upon the performance of the company. However, BMHC's current shareholders will not be paid out at all.
As of Tuesday morning, BMHC's stock was trading at eight cents per share.