PR Newswire
LANCASTER, Pa., July 25, 2024
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.
