Burnham Holdings, Inc. Reports Third Quarter and Nine Months Results

LANCASTER, Pa., Oct. 19, 2023 /PRNewswire/ — Burnham Holdings, Inc. (OTC-Pink: BURCA), the parent company of multiple subsidiaries that are leading domestic manufacturers of boilers, and related HVAC products and accessories (including furnaces, radiators, and air conditioning systems) for residential, commercial, and industrial applications, today reported its financial results for the third quarter and nine months ended October 1, 2023.

Burnham Holdings, Inc.’s financial performance for the first nine months of 2023 included the following:

Net sales were $59.7 million for the third quarter of 2023, essentially flat with the third quarter of 2022. Year to date net sales were $171.4 million, an increase of 4.1% over the first nine months of 2022.
Gross profit margin was 20.5% and 18.1% for the third quarters of 2023 and 2022, respectively, primarily due to continued realization of pricing actions to offset inflation. Year to date gross profit margins were 22.0% for 2023 versus 16.3% for 2022.
Selling, general and administrative expenses (SG&A) were up as a percentage of sales to 17.1% in the third quarter of 2023 versus 15.6% in the third quarter of 2022. Prior year spend was lower than historical norms as we slowly returned to pre-Covid staffing, travel, and administrative spending levels. For the first nine months of 2023 and 2022, SG&A as a percentage of sales was 17.6% and 16.4%, respectively.
Net income for the third quarter 2023 was $0.8 million, flat to the third quarter of 2022. Through nine months of 2023, net income was $4.8 million versus net loss of ($1.1) million in 2022.
Earnings per share were $0.17 for the third quarter of 2023 versus $0.16 for the third quarter of 2022. For the first nine months of 2023 and 2022, earnings per share and loss per share was $1.03 and ($0.23), respectively.

For the first nine months of 2023, sales of residential products were higher by 2.9% versus the same period in 2022, while sales of commercial products increased by 7.5% in 2023 versus 2022.  We are seeing an expected adjustment to seasonal ordering patterns as supply chain issues mitigate and product availability is back within standard lead times.  Order velocity for 2023 remains strong, and we believe current backlog levels are in line with seasonal operating cycles.

As noted in previous releases, the multiple pricing actions undertaken throughout 2022 across all subsidiaries in response to continuing inflationary pressures had a positive impact resulting in improved price realization during the first nine months of 2023.  Component part and commodity inflation continued through the first nine months of 2023, and we continue to monitor the need for additional pricing actions to maintain margins as well as remaining diligent and ready to respond to continued instability and uncertainty in the greater macro-economic environment. 

Debt levels remain in line with expectations due to increased working capital needs and inflationary pressures impacting inventory valuations.  Accordingly, interest expense for both the third quarter and year to date 2023 was higher versus the same periods in 2022.  We will continue to evaluate our working capital needs, including inventory levels, to ensure we can appropriately meet production volumes.  

Burnham Holdings, Inc.

Consolidated Statements of Income

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

Nine Months Ended

October 1,

October 2,

October 1,

October 2,

2023

2022

2023

2022

Net sales 

$       59,705

$       59,656

$     171,406

$     164,594

Cost of goods sold

47,489

48,844

133,613

137,828

Gross profit

12,216

10,812

37,793

26,766

Selling, general and administrative expenses

10,182

9,299

30,164

27,017

Operating income (loss)

2,034

1,513

7,629

(251)

Other expense:

Non-service related pension credit

137

106

412

319

Interest and investment gain (loss)

(222)

(129)

267

(347)

Interest expense

(921)

(512)

(2,107)

(1,117)

Other expense

(1,006)

(535)

(1,428)

(1,145)

Income (loss) before income taxes

1,028

978

6,201

(1,396)

Income tax expense (benefit)

236

225

1,426

(321)

Net income (loss)

$            792

$            753

$         4,775

$        (1,075)

Earnings (loss) per share

Basic

$           0.17

$           0.16

$           1.03

$          (0.23)

Diluted

$           0.17

$           0.16

$           1.03

$          (0.23)

Cash dividends per share

$           0.22

$           0.22

$           0.66

$           0.66

Burnham Holdings, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)

(Unaudited)

October 1,

December 31,

October 2,

ASSETS

2023

2022

2022

Current Assets

Cash and cash equivalents

$             6,638

$             6,994

$             6,151

Trade accounts receivable, net

27,704

29,243

24,569

Inventories, net

70,131

59,635

65,384

Prepaid expenses and other current assets

5,905

3,747

4,717

Total Current Assets

110,378

99,619

100,821

Property, plant and equipment, net

63,728

59,980

58,866

Lease assets

4,171

1,793

1,928

Other long-term assets

15,600

14,866

23,828

Total Assets

$         193,877

$         176,258

$         185,443

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current Liabilities

Accounts payable & accrued expenses

$           28,574

$           36,047

$           29,374

Current portion of long-term liabilities

152

152

152

Current portion of operating lease liabilities

1,036

854

837

Total Current Liabilities

29,762

37,053

30,363

Long-term debt

53,713

33,721

46,034

Lease liabilities

3,135

939

1,091

Other postretirement liabilities

6,026

5,636

6,015

Deferred income taxes

7,984

7,822

9,110

Shareholders’ Equity

Preferred Stock

530

530

530

Class A Common Stock 

3,630

3,626

3,623

Class B Convertible Common Stock

1,314

1,318

1,321

Additional paid-in capital

16,826

16,565

16,564

Retained earnings

116,194

114,526

109,410

Accumulated other comprehensive loss

(27,331)

(27,549)

(20,690)

Treasury stock, at cost 

(17,906)

(17,929)

(17,928)

Total Shareholders’ Equity

93,257

91,087

92,830

Total Liabilities and Shareholders’ Equity

$         193,877

$         176,258

$         185,443

Burnham Holdings, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Nine Months Ended

October 1,

October 2,

2023

2022

Net income (loss)

$             4,775

$           (1,075)

Depreciation and amortization

3,730

3,546

Pension and postretirement liabilities expense

(375)

(28)

Changes in operating assets and liabilities

(18,033)

(18,205)

Net cash used by operating activities

(9,903)

(15,762)

Purchase of property, plant and equipment

(7,622)

(5,114)

Net proceeds from borrowings

19,992

24,203

Share-based and treasury activity, net

284

267

Dividends paid

(3,107)

(3,097)

Net (decrease) increase in cash and cash equivalents

$              (356)

$                497

Cash and cash equivalents, beginning of period

$             6,994

$             5,654

Net (decrease) increase in cash and cash equivalents

(356)

497

Cash and cash equivalents, end of period

$             6,638

$             6,151

Burnham Holdings, Inc.

Consolidated Statements of Shareholders’ Equity

(In thousands)

(Unaudited)

Class B

Accumulated

Class A

Convertible

Additional

Other

Treasury

Preferred

Common

Common

Paid-in

Retained

Comprehensive

Stock,

Shareholders’

Stock

Stock

Stock

Capital

Earnings

Loss

at Cost

Equity

Balance at December 31, 2022

$       530

$     3,626

$     1,318

$   16,565

$ 114,526

$          (27,549)

$ (17,929)

$        91,087

Cash dividends declared:

Common stock – ($0.22 per share)

–

–

–

–

(1,012)

–

–

(1,012)

Net income for the period

–

–

–

–

2,969

–

–

2,969

Other comprehensive loss,

     net of tax ($88)

–

–

–

–

–

(296)

–

(296)

Balance at April 2, 2023

$       530

$     3,626

$     1,318

$   16,565

$ 116,483

$          (27,845)

$ (17,929)

$        92,748

Share-based compensation

–

–

–

259

–

–

23

282

Cash dividends declared:

Preferred stock – 6%

–

–

–

–

(9)

–

–

(9)

Common stock – ($0.22 per share)

–

–

–

–

(1,068)

–

–

(1,068)

Net income for the period

–

–

–

–

1,014

–

–

1,014

Other comprehensive income,

     net of tax ($94)

–

–

–

–

–

316

–

316

Balance at July 2, 2023

$       530

$     3,626

$     1,318

$   16,824

$ 116,420

$          (27,529)

$ (17,906)

$        93,283

Share-based compensation

–

–

–

2

–

–

–

2

Conversion of common stock

–

4

(4)

–

–

–

–

–

Cash dividends declared:

Common stock – ($0.22 per share)

–

–

–

–

(1,018)

–

–

(1,018)

Net income for the period

–

–

–

–

792

–

–

792

Other comprehensive income,

     net of tax ($59)

–

–

–

–

–

198

–

198

Balance at October 1, 2023

$       530

$     3,630

$     1,314

$   16,826

$ 116,194

$          (27,331)

$ (17,906)

$        93,257

Class B

Accumulated

Class A

Convertible

Additional

Other

Treasury

Preferred

Common

Common

Paid-in

Retained

Comprehensive

Stock,

Shareholders’

Stock

Stock

Stock

Capital

Earnings

Loss

at Cost

Equity

Balance at December 31, 2021

$       530

$     3,615

$     1,329

$   16,317

$ 113,582

$          (22,260)

$ (17,948)

$        95,165

Share-based compensation

–

–

–

37

–

–

3

40

Cash dividends declared:

Common stock – ($0.22 per share)

–

–

–

–

(1,011)

–

–

(1,011)

Net loss for the period

–

–

–

–

(755)

–

–

(755)

Other comprehensive income,

     net of tax ($211)

–

–

–

–

–

751

–

751

Balance at April 3, 2022

$       530

$     3,615

$     1,329

$   16,354

$ 111,816

$          (21,509)

$ (17,945)

$        94,190

Share-based compensation

–

–

–

210

–

–

17

227

Conversion of common stock

–

8

(8)

–

–

–

–

–

Cash dividends declared:

Preferred stock – 6%

–

–

–

–

(9)

–

–

(9)

Common stock – ($0.22 per share)

–

–

–

–

(1,066)

–

–

(1,066)

Net loss for the period

–

–

–

–

(1,073)

–

–

(1,073)

Other comprehensive income,

     net of tax ($65)

–

–

–

–

–

218

–

218

Balance at July 3, 2022

$       530

$     3,623

$     1,321

$   16,564

$ 109,668

$          (21,291)

$ (17,928)

$        92,487

Cash dividends declared:

Preferred stock – 6%

–

–

–

–

–

–

–

–

Common stock – ($0.22 per share)

–

–

–

–

(1,011)

–

–

(1,011)

Net income for the period

–

–

–

–

753

–

–

753

Other comprehensive income,

     net of tax ($180)

–

–

–

–

–

601

–

601

Balance at October 2, 2022

$       530

$     3,623

$     1,321

$   16,564

$ 109,410

$          (20,690)

$ (17,928)

$        92,830

SOURCE Burnham Holdings, Inc.


Go to Source