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

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Burnham Holdings, Inc. (OTC-Pink: BURCA) reported its Q2 2024 financial results and declared a quarterly dividend. Net sales increased 6.2% to $55.4 million in Q2 2024 compared to Q2 2023. Year-to-date net sales were $111.4 million, slightly down from $111.7 million in H1 2023. Gross profit margin decreased to 21.0% in Q2 2024 from 22.2% in Q2 2023, impacted by product mix. Net income for Q2 2024 was $0.8 million, down from $1.0 million in Q2 2023. Diluted EPS for Q2 2024 was $0.18, compared to $0.20 in Q2 2023. Commercial product sales increased 39.0% in Q2 2024, while residential product sales decreased 6.1%. The company declared a quarterly dividend of $0.23 per share.

Positive

• Net sales increased 6.2% to $55.4 million in Q2 2024
• Commercial product sales increased 39.0% in Q2 2024
• Average debt levels decreased by $6.4 million compared to Q2 2023
• Declared quarterly dividend of $0.23 per share

Negative

• Net income decreased to $0.8 million in Q2 2024 from $1.0 million in Q2 2023
• Gross profit margin decreased to 21.0% in Q2 2024 from 22.2% in Q2 2023
• Residential product sales decreased 6.1% in Q2 2024
• Diluted EPS decreased to $0.18 in Q2 2024 from $0.20 in Q2 2023

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

 

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SOURCE Burnham Holdings, Inc.

FAQ

What was Burnham Holdings' (BURCA) net sales for Q2 2024?

Burnham Holdings' net sales for Q2 2024 were $55.4 million, an increase of 6.2% compared to Q2 2023.

How did Burnham Holdings' (BURCA) commercial product sales perform in Q2 2024?

Burnham Holdings' commercial product sales increased by 39.0% in Q2 2024 compared to the same period in 2023.

What was Burnham Holdings' (BURCA) net income for Q2 2024?

Burnham Holdings' net income for Q2 2024 was $0.8 million, down from $1.0 million in Q2 2023.

What dividend did Burnham Holdings (BURCA) declare for Q2 2024?

Burnham Holdings declared a quarterly common stock dividend of $0.23 per share, payable on September 26, 2024.