BMHC's credit agreement provides a
As previously reported, BMHC's credit agreement requires monthly compliance with financial covenants including minimum liquidity and adjusted earnings before interest, taxes, depreciation and amortization (monthly Adjusted EBITDA) at least through 2010. Based on financial information for
BMHC is in the process of finalizing its financial statements for the fourth quarter and full year 2008 and completing its year-end audit. The Company expects to file its Form 10-K annual report on or before
About BMHC
BMHC is one of the largest providers of building materials and residential construction services in
BUSINESS RISKS AND FORWARD-LOOKING STATEMENTS
There are a number of business risks and uncertainties that affect our operations and therefore could cause future results to differ from past performance or expected results. Additional information regarding business risks and uncertainties is contained in Part 1 Item 1A of Form 10-K. These risks and uncertainties may include, however are not limited to:
-- substantial doubt about our ability to continue as a going concern; -- demand for and supply of single-family homes which is influenced by changes in the overall condition of the U.S. economy, including interest rates, consumer confidence, job formation, availability of credit and other important factors; -- our ability to maintain adequate liquidity, reduce operating costs and increase market share in an industry that has experienced and continues to experience a significant reduction in average annual housing starts; -- our dependence upon operating performance, an efficient cash conversion cycle and compliance with financial covenants for our liquidity; -- our ability to implement and maintain cost structures that align with sales trends; -- loss of customers as well as changes in the business models of our customers which may limit our ability to provide building products and construction services; -- additional impairment charges and costs to close or consolidate additional business units in underperforming markets; -- intense competition; -- availability of and our ability to attract, train and retain qualified individuals; -- fluctuations in our costs and availability of sourcing channels for commodity wood products, concrete, steel and other building materials; -- weather conditions including natural catastrophic events; -- exposure to product liability and construction defect claims as well as other legal proceedings; -- disruptions in our information systems; -- actual and perceived vulnerabilities as a result of widespread credit and liquidity concerns, terrorist activities and armed conflict; -- costs and/or restrictions associated with federal, state and other regulations and -- numerous other matters of a local and regional scale, including those of a political, economic, business, competitive or regulatory nature.
Risks related to our shares may include, however are not limited to:
-- price for our shares may fluctuate significantly; -- our shares may be less attractive as they are not traded on a large, more well-known exchange and -- anti-takeover defenses and certain provisions could prevent an acquisition of our company or limit share price.
Certain statements in this news release, including those related to expectations about our ability to reach agreement with our lenders on an appropriate amendment to our credit agreement, the ability to continue to borrow under our credit agreement, our anticipated liquidity, the impact on our business operations from any non-compliance with financial covenants, the timing of the filing of our Form 10-K, and the receipt of any tax refunds, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements about our expectations, anticipated financial results and future business prospects are forward-looking statements. While these statements represent our current judgment on what the future may hold and we believe these judgments are reasonable, these statements involve risks and uncertainties that are important factors that could cause our actual results to differ materially from those in forward-looking statements. These factors include, however are not limited to the risks and uncertainties cited in the above paragraph, as well as the risks that: we may not be able to reach agreement with our lenders with respect to amendments and waivers to our credit agreement on terms acceptable to us and our lenders; our non-compliance with the financial covenant may adversely affect our liquidity and our business; our efforts to maintain preferred supplier status and focus on cost efficiencies may not be sufficient to allow us to weather the downturn in the housing industry; and we may not be able to timely and successfully implement our restructuring program and realignment of our business and achieve the benefits that they are designed to provide. Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date of this news release. We undertake no obligation to update forward-looking statements.
SOURCE Building Materials Holding Corporation