BMHC reports $104 million Q4 loss

Building Materials Holding Corp. (BMHC), one of the nation’s largest chains of lumberyards, has released preliminary results for its fourth quarter and fiscal year, indicating a steep decline in sales for both periods. The Boise, Idaho-based pro dealer reported $233 million in sales for the fourth quarter of 2008, a 42% drop from $403 million the previous year. For the full year, sales decreased 39%, from $2.2 billion in fiscal 2007 to $1.3 billion in fiscal 2008.

Net loss for the fourth quarter was approximately $104 million, compared to a net loss of $331 million for the corresponding period of 2007. The company recorded a preliminary loss of $215 million for fiscal 2008, versus a loss of $313 million for the previous year.

Employee head count in operations was reduced 42% during 2008; in administration, a 12% cutback was realized. The company, which ranked fifth on the 2008 Home Channel News Pro Dealer Scoreboard, closed 42 outlets and consolidated 15 locations last year.

BMHC also announced that it has obtained a temporary waiver of certain conditions on its credit agreement following a review “during which [BMHC] determined that it may be out of compliance” with a covenant relating to minimum earnings. Under the waiver, the company can borrow up to $20 million through April 15 while it continues to negotiate credit terms with its lenders.

BMHC has obtained at least one other waiver in the past six months. In July 2008, the company defaulted on one of its loans, necessitating a waiver and a temporary amendment to borrow up to $60 million through Sept. 30.

As of Feb. 28, 2009, there were no borrowings on the revolver, and the outstanding balance on the company’s term note was $320 million.