market. Though, after its price change turned positive, HBPI couldn’t get higher and kept its previous day value of $0.88 per share. Now the question is, what will the next move of HBPI?According to the records, Huttig has not released any news recently, though the stock price rose up unexpectedly. Apparently, something is going to happen with the company that is still about to be seen.
Huttig Building Products, Inc. is a domestic distributor of millwork, building materials and wood products used in new residential construction and in home improvement, remodeling and repair work. The last news about the company came up on Nov 22, reporting that GE Capital had become an agent for a $120m asset-based credit facility to Huttig. The loan is to refinance the facility and support the working capital needs for the company’s products.[BANNER]
Since the time this news was published, nobody is familiar with Huttig’s activities.
According to the company’s latest 10-Q report, its revenues have decreased, while the net loss has increased. Total assets of Huttig are a bit higher than its liabilities, though the stockholders’ equity and its cash on hand have got lower. Besides, the company hasn’t paid its long-term debt yet.
The management team claims that HBPI depends on cash flows from operations and funds available under its revolving credit facility to finance seasonal working capital needs, capital expenditures and acquisitions.
As of end-September, Huttig has amended and restated its existing credit agreement and currently believes its capital resources are sufficient for the operations. However, it looks like the credit is the only thing HBPI can rely on, unless the lenders terminate the loan commitments and foreclose on the company’s assets that secure it.
