Burnham Holdings, Inc. Reports First Quarter Results

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April 24, 2023 11:30 AM EDT

LANCASTER, Pa., April 24, 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 quarter ended April 2, 2023.

Burnham Holdings, Inc.'s financial performance for the first quarter 2023 included the following:

  • Net sales were $59.5 million for 2023, an increase of $7.1 million, or 13.5%, versus 2022 as demand remained strong across both the residential and commercial businesses.
  • Gross profit margin was 23.5% versus 15.9% for 2022, primarily as the result of pricing actions to offset inflation. Material inflation, supply chain and staffing challenges continue to remain headwinds.
  • Selling, general and administrative expenses were lower as a percentage of sales at 16.9% in 2023 versus 17.2% in 2022.
  • Interest expense for the first quarter of 2023 was higher versus the prior year due to rising interest rates and higher working capital levels. Interest rates on the revolving credit facility as of April 2, 2023 and April 3, 2022 were 6.60% and 2.19%, respectively.
  • Net income for 2023 was $3.0 million versus net loss of ($0.8) million in 2022.
  • Earnings per share was $0.64 for 2023 versus a loss per share of ($0.16) for 2022.

Sales of residential products increased by 7.8% in 2023 versus 2022, while sales of commercial products increased by 33.6% in 2023 versus 2022. Residential backlogs were flat compared to the prior year while commercial backlogs increased by $3.7 million over 2022. 

Overall, we are pleased with the results of the first quarter of 2023. 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 in the first quarter of 2023 and subsequent strong financial performance. However, supply chain issues for certain components persist and hiring and retaining qualified employees is an ongoing headwind. 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. Accordingly, we advise caution when using the first quarter financial results as an indicator of future performance or full year results.

The Company's balance sheet is strong, with adequate levels of working capital to support current and future business opportunities. Long-term debt was $10.1 million higher than last year due to a combination of increased working capital levels and inflationary pressures impacting inventory valuations. Given the seasonal nature of our business, we continue to evaluate our working capital needs, including inventory levels, to ensure we can appropriately meet production volumes.

The Burnham Holdings, Inc. 2023 Annual Meeting of Shareholders is being held today in Lancaster, PA at 11:30 a.m. A press release regarding today's shareholder voting and the Board of Directors determination regarding declaration of a quarterly dividend will be released later this afternoon.

Burnham Holdings, Inc.

Consolidated Statements of Income

(In thousands, except per share amounts)

(Unaudited)





Three Months Ended





April 2,


April 3,





2023


2022

Net sales 


$            59,534


$            52,438

Cost of goods sold


45,556


44,078



Gross profit


13,978


8,360

Selling, general and administrative expenses


10,042


9,038



Operating income (loss)


3,936


(678)

Other expense:






Non-service related pension credit


137


106


Interest and investment gain (loss)


282


(133)


Interest expense


(499)


(275)



Other expense


(80)


(302)

Income (loss) before income taxes


3,856


(980)

Income tax expense (benefit)


887


(225)


Net income (loss)


$              2,969


$                (755)









Earnings (loss) per share







Basic


$                0.64


$               (0.16)



Diluted


$                0.64


$               (0.16)


Cash dividends per share


$                0.22


$                0.22

 

 

Burnham Holdings, Inc.

Consolidated Balance Sheets

(In thousands)





(Unaudited)




(Unaudited)





April 2,


December 31,


April 3,

ASSETS


2023


2022


2022

Current Assets








Cash and cash equivalents


$              6,382


$              6,994


$              5,711


Trade accounts receivable, net


23,280


29,243


19,342


Inventories, net


69,954


59,635


56,951


Prepaid expenses and other current assets


3,050


3,747


5,204



Total Current Assets


102,666


99,619


87,208

Property, plant and equipment, net


60,950


59,980


57,739

Lease assets


2,827


1,793


2,203

Other long-term assets


14,717


14,866


22,466



Total Assets


$          181,160


$          176,258


$          169,616










LIABILITIES AND STOCKHOLDERS' EQUITY







Current Liabilities








Accounts payable & accrued expenses


$            30,768


$            36,047


$            27,145


Current portion of long-term liabilities


152


152


152


Current portion of operating lease liabilities


784


854


827



Total Current Liabilities


31,704


37,053


28,124

Long-term debt


41,029


33,721


30,940

Lease liabilities


2,043


939


1,376

Other postretirement liabilities


5,890


5,636


6,052

Deferred income taxes


7,746


7,822


8,934

Shareholders' Equity








Preferred Stock


530


530


530


Class A Common Stock 


3,626


3,626


3,615


Class B Convertible Common Stock


1,318


1,318


1,329


Additional paid-in capital


16,565


16,565


16,354


Retained earnings


116,483


114,526


111,816


Accumulated other comprehensive loss


(27,845)


(27,549)


(21,509)


Treasury stock, at cost 


(17,929)


(17,929)


(17,945)



Total Shareholders' Equity


92,748


91,087


94,190



Total Liabilities and Shareholders' Equity


$          181,160


$          176,258


$          169,616

 

 

Burnham Holdings, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)




Three Months Ended




April 2,


April 3,




2023


2022


Net income (loss)


$              2,969


$                (755)


Depreciation and amortization


1,255


1,182


Pension and postretirement liabilities expense


(125)


43


Other net adjustments


(975)


(937)


Changes in operating assets and liabilities


(7,801)


(6,184)

Net cash used by operating activities


(4,677)


(6,651)


Purchase of property, plant and equipment


(2,231)


(1,431)


Proceeds from borrowings


7,308


9,110


Proceeds from stock option exercise and treasury activity, net


-


40


Dividends paid


(1,012)


(1,011)

Net (decrease) increase in cash and cash equivalents


$                (612)


$                   57







Cash and cash equivalents, beginning of period


$              6,994


$              5,654

Net (decrease) increase in cash and cash equivalents


(612)


57

Cash and cash equivalents, end of period


$              6,382


$              5,711

 

 

Burnham Holdings, Inc.

Consolidated Statements of Stockholders' Equity

(In thousands)

(Unaudited)


























Class B






Accumulated










Class A


Convertible


Additional




Other


Treasury






Preferred


Common


Common


Paid-in


Retained


Comprehensive


Stock,


Stockholders'




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



















Exercise of stock options


-


-


-


-


-


-


-


-

Conversion of common stock


-


-


-


-


-


-


-


-

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












































Class B






Accumulated










Class A


Convertible


Additional




Other


Treasury






Preferred


Common


Common


Paid-in


Retained


Comprehensive


Stock,


Stockholders'




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



















Exercise of stock options


-


-


-


37


-


-


3


40

Conversion of common stock


-


-


-


-


-


-


-


-

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 ($166)


-


-


-


-


-


751


-


751



















Balance at April 3, 2022


$        530


$      3,615


$      1,329


$    16,354


$  111,816


$           (21,509)


$   (17,945)


$         94,190

 

 

Cision View original content:https://www.prnewswire.com/news-releases/burnham-holdings-inc-reports-first-quarter-results-301804884.html

SOURCE Burnham Holdings, Inc.


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