BMHC sustains heavy losses

Building Materials Holding Corp. (BMHC), in a delayed filing with the Securities and Exchange Commission, revealed continued losses for its last fiscal quarter, recording a $103.8 million loss for the three-month period that ended Dec. 31, 2008. This compares to a loss of $331.3 million in the company’s fourth quarter last year.

Fourth-quarter sales were $232.6 million, a 42% drop from sales of $402.8 million in the corresponding period of 2007.

Full-year financial results indicated a net loss of $215 million for 2008, compared to a loss of $313 million for 2007. Sales for fiscal 2008 were $1.32 billion, a 39% decrease from sales of $2.17 billion in fiscal 2007.

The company noted that single-family housing starts fell 46% in its markets during 2008, which greatly affected its results. To mitigate this impact, BMHC underwent a number of restructuring moves in 2008, including the combination of its distribution and construction services divisions; closure of 42 business units and consolidation of 15 locations in underperforming markets; and a 42% reduction in head count in operations and a 12% cutback in administration.

BMHC also moved its headquarters from San Francisco to Boise, Idaho. Its shares, which were dropped from the New York Stock Exchange in October 2008, now trade on the OTC Bulletin Board.

The company fell out of compliance with the terms of its credit agreement in February and is now operating on a limited waiver through June 1, 2009, as it continues negotiations with its lenders.

The SEC documents also noted that BMHC’s governing documents, along with certain provisions of Delaware law, where the company is incorporated, “could delay, prevent or allow our board of directors to resist an acquisition of our company even if a majority of our shareholders favored the proposed transaction.”