Burnham Holdings, Inc. Reports Second Quarter 2024 Financial Results and Declares Dividend

LANCASTER, Pa., July 25, 2024 /PRNewswire/ — Burnham Holdings, Inc. (OTC-Pink: BURCA), the parent company of multiple subsidiaries that are leading domestic manufacturers of boilers, furnaces and related HVAC products and accessories for residential, commercial, and industrial applications, today reported its consolidated financial results for the six months ended June 30, 2024, and announced a quarterly stock dividend.  Where noted, prior periods presented have been restated for a voluntary change in accounting principle related to our last-in, first-out (LIFO) inventory valuation as disclosed in our 2023 Annual Report. 

Burnham Holdings, Inc.’s (BHI) consolidated financial performance for the first half of 2024 included the following:

  • Net sales were $55.4 million for the second quarter of 2024, an increase of $3.2 million, or 6.2%, versus the second quarter of 2023. Year to date net sales were $111.4 million compared to $111.7 for the first half of 2023.
  • Gross profit margin was 21.0% and 22.2% for the second quarters of 2024 and 2023, respectively. Year to date gross profit margins were 23.0% for 2024 versus 22.9% for 2023. Product mix had a significant impact on second quarter 2024 gross profit margins.
  • Selling, general, and administrative expenses (SG&A) were higher by $0.5 million for both the second quarter 2024 and first half 2024 versus the same periods last year. On a year-to-date basis, SG&A was higher as a percentage of sales basis in 2024 versus 2023 but remained in line with expectations.
  • Net income for the second quarter of 2024 was $0.8 million versus net income of $1.0 million for the second quarter of 2023. Net income for the first half of 2024 was $3.8 million versus net income of $4.0 million for the first half of 2023.
  • EBITDA was $8.5 million, or 7.6%, for the first half of 2024 versus $8.9 million, or 7.9%, for the first half of 2023.
  • Diluted earnings per share were $0.18 and $0.20 for the second quarters of 2024 and 2023, respectively. For the first six months of 2024 and 2023, diluted earnings per share were $0.81 and $0.85.

For the second quarter of 2024, sales of residential products were lower by 6.1% versus the same period in 2023, while sales of commercial products were up 39.0% in 2024 versus 2023.  For the first half of 2024, residential sales were lower by 9.0% versus the prior year while commercial sales were higher by 23.3% versus the first half of 2023.  Service and Rentals businesses contributed $2.9 million of net sales in the second quarter of 2024 and $4.5M for the first half of 2024.  Market shares across our subsidiaries remain strong despite mixed segment results.  We continue to believe order patterns and our current backlogs are back in line with seasonal operating cycles. 

Average debt levels of the Company’s revolving credit facility for the second quarter of 2024 were approximately $6.4 million lower than the second quarter of 2023.  On a year over year basis, the average debt levels on the revolving credit facility were approximately $9.1 million lower.  We continue to evaluate our working capital needs, including inventory levels, to ensure we can appropriately meet production volumes and fund future growth initiatives.

At its meeting on July 25, 2024, the Burnham Holdings, Inc. Board of Directors declared a quarterly common stock dividend of $0.23 per share payable September 26, 2024, with a record date of September 19, 2024. 

Burnham Holdings, Inc.

Consolidated Statements of Income

(In thousands, except per share amounts)

(Unaudited)



Three Months Ended


Six Months Ended




June 30,


July 2,


June 30,


July 2,




2024


2023


2024


2023


Net sales 


$       55,391


$       52,167


$     111,394


$     111,701


Cost of goods sold


43,771


40,568


85,818


86,124


  Gross profit


11,620


11,599


25,576


25,577


Selling, general and administrative expenses


10,488


9,940


20,510


19,982


  Operating income


1,132


1,659


5,066


5,595


Other (expense) / income:










  Non-service related pension credit


113


138


250


275


  Interest and investment gain


379


207


489


489


  Interest expense


(533)


(687)


(829)


(1,186)


    Other expense


(41)


(342)


(90)


(422)


Income before income taxes


1,091


1,317


4,976


5,173


Income tax expense


250


303


1,144


1,190


  Net income


$            841


$         1,014


$         3,832


$         3,983












Earnings per share:










  Basic


$           0.18


$           0.20


$           0.82


$           0.85


  Diluted


$           0.18


$           0.20


$           0.81


$           0.85


Cash dividends per share


$           0.23


$           0.22


$           0.46


$           0.44


Burnham Holdings, Inc.

Consolidated Balance Sheets

(In thousands)





(Unaudited)




(Unaudited)





June 30,


December 31,


July 2,

ASSETS


2024


2023


2023

Current Assets








Cash and cash equivalents


$             6,519


$             5,880


$             6,733


Trade accounts receivable, net


22,919


31,023


24,496


Inventories, net


72,698


58,017


77,365


Costs in Excess of Billings


1,227


621



Prepaid expenses and other current assets


5,141


1,954


4,555



Total Current Assets


108,504


97,495


113,149

Property, plant and equipment, net


69,528


64,437


62,244

Lease assets


3,980


4,119


2,853

Other long-term assets


18,891


18,620


15,747



Total Assets


$         200,903


$         184,671


$         193,993










LIABILITIES AND SHAREHOLDERS’ EQUITY







Current Liabilities








Accounts payable & accrued expenses


$           31,266


$           35,365


$           25,070


Billings in excess of costs


659


137



Current portion of:








    Long-term liabilities


1,171


1,171


152


    Lease liabilities


989


1,051


810


    Long-term debt 


184


184




Total Current Liabilities


34,269


37,908


26,032

Long-term debt


45,454


27,232


56,642

Lease liabilities


2,991


3,068


2,043

Other long-term liabilities


5,599


5,933


6,148

Deferred income taxes


9,174


9,095


8,266

Shareholders’ Equity








Preferred Stock


530


530


530


Class A Common Stock 


3,633


3,633


3,626


Class B Convertible Common Stock


1,311


1,311


1,318


Additional paid-in capital


10,525


11,769


11,499


Retained earnings


122,917


121,291


117,893


Accumulated other comprehensive loss


(24,442)


(24,668)


(27,529)


Treasury stock, at cost 


(11,058)


(12,431)


(12,475)



Total Shareholders’ Equity


103,416


101,435


94,862



Total Liabilities and Shareholders’ Equity


$         200,903


$         184,671


$         193,993

Burnham Holdings, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)



Six Months Ended



June 30,


July 2,



2024


2023

Cash flows from operating activities:





  Net income


$             3,832


$             3,983

  Adjustments to reconcile net income to net cash provided





    by operating activities:





    Depreciation and amortization


2,709


2,511

    Deferred income taxes


12


(58)

    Provision for long-term employee benefits


(250)


(208)

    Share-based compensation expense


200


357

    Other reserves and allowances


194


(438)

    Changes in current assets and liabilities, net of acquisition:





      Decrease in accounts receivable, net


8,067


4,716

      Increase in inventories, net


(14,680)


(15,816)

      (Increase) / decrease in other current assets


(2,894)


262

      Decrease in accounts payable and accrued expenses


(4,692)


(9,542)

        Net cash used by operating activities


(7,502)


(14,233)






Cash flows from investing activities:





    Capital expenditures


(7,796)


(4,834)

    Other investing activities


(8)


(8)

        Net cash used by investing activities


(7,804)


(4,842)






Cash flows from financing activities:





    Net proceeds from revolver


18,314


20,947

    Repayment of term loan


(92)


    Share-based compensation activity


(71)


(44)

    Dividends paid


(2,206)


(2,089)

        Net cash provided by financing activities


15,945


18,814






Net increase (decrease) in cash and cash equivalents


$                639


$              (261)






Cash and cash equivalents, beginning of period


$             5,880


$             6,994

Net increase (decrease) in cash and cash equivalents


639


(261)

Cash and cash equivalents, end of period


$             6,519


$             6,733






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, 2023


$       530


$     3,633


$     1,311


$   11,769


$ 121,291


$          (24,668)


$ (12,431)


$      101,435


















Net income






2,991




2,991

Other comprehensive income,

















     net of tax







253



253

Cash dividends declared:

















    Common stock – ($0.88 per share)






(1,065)




(1,065)

Share-based compensation:

















    Expense recognition





100





100


















Balance at March 31, 2024


$       530


$     3,633


$     1,311


$   11,869


$ 123,217


$          (24,415)


$ (12,431)


$      103,714


















Net income






841




841

Other comprehensive income,

















     net of tax







(27)



(27)

Cash dividends declared:

















    Preferred stock – 6%






(9)




(9)

    Common stock – ($0.88 per share)






(1,132)




(1,132)

Share-based compensation:

















    Expense recognition





100





100

    Issuance of vested shares





(1,444)




1,373


(71)


















Balance at June 30, 2024


$       530


$     3,633


$     1,311


$   10,525


$ 122,917


$          (24,442)


$ (11,058)


$      103,416









































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 (as restated)


$       530


$     3,626


$     1,318


$   11,928


$ 115,999


$          (27,549)


$ (13,292)


$        92,560


















Net income






2,969




2,969

Other comprehensive income,

















     net of tax







(296)



(296)

Cash dividends declared:

















    Common stock – ($0.88 per share)






(1,012)




(1,012)

Share-based compensation:

















    Expense recognition





75





75


















Balance at April 2, 2023


$       530


$     3,626


$     1,318


$   12,003


$ 117,956


$          (27,845)


$ (13,292)


$        94,296


















Net income






1,014




1,014

Other comprehensive income,

















     net of tax







316



316

Cash dividends declared:

















    Preferred stock – 6%






(9)




(9)

    Common stock – ($0.88 per share)






(1,068)




(1,068)

Share-based compensation:

















    Expense recognition





357





357

    Issuance of vested shares





(861)




817


(44)


















Balance at July 2, 2023


$       530


$     3,626


$     1,318


$   11,499


$ 117,893


$          (27,529)


$ (12,475)


$        94,862

SOURCE Burnham Holdings, Inc.


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