BMHC posts $32 million loss
Building Materials Holding Corp. (BMHC), the industry’s fifth largest pro dealer, reported sales of $385 million for its second quarter, a decline of 41 percent from sales of $656 million in the same quarter last year. The San Francisco-based company lost $31.9 million during the quarter, which ended June 30, 2008. This compares with a net gain of $19.4 million for the second quarter of 2007.
BMHC took a one-time charge of $14.3 million for closing and consolidating units, while the company saw a one-time gain of $9.4 million from discontinued operations.
Sales for the first six months of the fiscal year decreased 38 percent to $738 million from $1.2 billion. The six-month net loss was $65.8 million compared to net income of $14.5 million for the same period of 2007.
Company chairman and CEO Robert Mellor reported progress on the company’s restructuring initiatives, which have narrowed losses between the first and second quarters of 2008 by 6 percent. While sales were much lower than the year-ago figure, they rose 12 percent from revenues generated in the last quarter.
In a prepared statement, Mellor said that the company has taken a number of measures to generate cash in addition to closing and selling underperforming and excess assets. “We anticipate that these initiatives will reduce annualized SG&A expenses by $20 million to $25 million and result in one-time cash proceeds of approximately $50 million to the company over the next three to four quarters,” he said.