Building Materials Holding Corp. (BMHC) recorded a $6.9 million net loss in its first two weeks under Chapter 11 protection from creditors, while its long-term plans call for a return to an operating profit next spring, documents filed with U.S. Bankruptcy Court show.
BMHC, the No. 6 company on the 2009 ProSales 100, filed in Wilmington, Del., on June 16 for protection from creditors under Chapter 11 of the federal bankruptcy code. The next major hearing is expected to take place on Sept. 10, when Chief U.S. Bankruptcy Judge Kevin J. Carey is slated to consider BMHC's reorganization plan. Carey also has yet to rule on a request to reject a number leases on properties that BMHC no longer needs.
According to a July 30 court filing, BMHC said it incurred an operating loss of $4.8 million in the period from June 16 through June 30. Of that, about $2.9 million was attributed to BMC West, BMHC's lumberyard and component manufacturing operations, and the rest was linked to SelectBuild, the company's turnkey framing business. The net deficit was $2.1 million deeper almost completely because of professional fees BMHC paid that were related to its Chapter 11 status.
In May, BMHC reported net loss deepened in the first quarter 2009 to $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.
In 2008, BMHC recorded a net loss of $215 million on a 39% drop in sales to $1.3 billion. For this year, it has forecast a pretax loss of $43 million this year on sales of $748.5 million. Next year--assuming, it says, that it emerges from Chapter 11 in 2009--BMHC expects to move into the black starting in the second quarter and ended this year with $21.2 million in earnings before interest, taxes, depreciation and amortization on sales of $943.6 million. (Details.)
On July 6, the U.S. Bankruptcy Court in Wilmington gave final approval to BMHC access $80 million in debtor-in-possession financing from Wells Fargo and other lenders.