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
|
View original content:https://www.prnewswire.com/news-releases/burnham-holdings-inc-reports-first-quarter-results-301804884.html
SOURCE Burnham Holdings, Inc.
