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
