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

July, 25 2024 03:01 PM Burnham Hldgs Inc A

PR Newswire

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

SOURCE Burnham Holdings, Inc.

Company Name:	Burnham Hldgs Inc A
Stock Symbol:	BURCA
Market:	OTC
Website:	burnhamholdings.com

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