COVID-19 forces BMC to take more action
BMC Stock Holdings reported that it has borrowed $144 million from its revolving cash credit facility.
The move provides the Raleigh, N.C.-based pro dealer and building services provider with about $285 million cash on hand as of March 31 with approximately $215 million of remaining borrowing capacity under its revolver. BMC noted that it does not have any significant long-term debt maturities until 2024.
The Raleigh, N.C.-based company also announced that it is postponing future growth-related capital projects and share repurchases until further notice, but will continue to invest in safety and productivity-related capital expenditures.
Additionally, the BMC said that it has taken steps to reduce operating expenses, including voluntary cash salary and retainer reductions by senior management and the board of directors, reductions in associate staffing levels and the elimination of some discretionary spending.
BMC has withdrawn its full-year 2020 outlook issued on Feb. 27. The pro dealer’s management said that the COVID-19 crisis will have a negative impact on single-family housing starts and the company’s financial results over the remaining months of the year.
The company said it does not expect a significant impact to its first quarter 2020 results as compared to its original expectations.
Due to COVID-19 related restrictions, the BMC has also significantly reduced operations in the Washington State, which represents about 5% ($180 million) of the company’s 2019 sales of $3.6 billion.
In most regions of the country, BMC said the company has been designated as “essential business” and continues to operate.
“At BMC, we are focused on supporting our associates, customers, partners and communities during this unprecedented time,” said Dave Flitman, President and CEO of BMC. “Due to the rapidly evolving nature and continued uncertainty surrounding COVID-19, we are taking actions to maintain the safety of our associates and increase our Company’s financial flexibility, including borrowing on our revolving credit facility and temporarily suspending our share repurchase program, while actively reducing our operating expenses and capital expenditures.”
BMC said that it continues to protect its associates, implementing detailed cleaning and disinfecting processes at BMC locations, adhering to social distancing protocols, suspending all air travel, and encouraging all associates to work from home when possible.
The dealer has launched a dedicated COVID-19 resource intranet page to keep associates up-to-date on company and health authority information, guidelines and policies, such as the guidelines set by the Centers for Disease Control and Prevention, which BMC associates are to follow as appropriate. The company also enacted an emergency sick pay leave policy for associates unable to report to work because of a COVID-19 disruption.
The move provides the Raleigh, N.C.-based pro dealer and building services provider with about $285 million cash on hand as of March 31 with approximately $215 million of remaining borrowing capacity under its revolver. BMC noted that it does not have any significant long-term debt maturities until 2024.
The Raleigh, N.C.-based company also announced that it is postponing future growth-related capital projects and share repurchases until further notice, but will continue to invest in safety and productivity-related capital expenditures.
Additionally, the BMC said that it has taken steps to reduce operating expenses, including voluntary cash salary and retainer reductions by senior management and the board of directors, reductions in associate staffing levels and the elimination of some discretionary spending.
BMC has withdrawn its full-year 2020 outlook issued on Feb. 27. The pro dealer’s management said that the COVID-19 crisis will have a negative impact on single-family housing starts and the company’s financial results over the remaining months of the year.
The company said it does not expect a significant impact to its first quarter 2020 results as compared to its original expectations.
Due to COVID-19 related restrictions, the BMC has also significantly reduced operations in the Washington State, which represents about 5% ($180 million) of the company’s 2019 sales of $3.6 billion.
In most regions of the country, BMC said the company has been designated as “essential business” and continues to operate.
“At BMC, we are focused on supporting our associates, customers, partners and communities during this unprecedented time,” said Dave Flitman, President and CEO of BMC. “Due to the rapidly evolving nature and continued uncertainty surrounding COVID-19, we are taking actions to maintain the safety of our associates and increase our Company’s financial flexibility, including borrowing on our revolving credit facility and temporarily suspending our share repurchase program, while actively reducing our operating expenses and capital expenditures.”
BMC said that it continues to protect its associates, implementing detailed cleaning and disinfecting processes at BMC locations, adhering to social distancing protocols, suspending all air travel, and encouraging all associates to work from home when possible.
The dealer has launched a dedicated COVID-19 resource intranet page to keep associates up-to-date on company and health authority information, guidelines and policies, such as the guidelines set by the Centers for Disease Control and Prevention, which BMC associates are to follow as appropriate. The company also enacted an emergency sick pay leave policy for associates unable to report to work because of a COVID-19 disruption.