Burnham Holdings, Inc. Reports Third Quarter and Nine Months Results
- Net sales for the third quarter of 2023 were $59.7 million, flat compared to the same period in 2022. Year-to-date net sales increased by 4.1% to $171.4 million. Gross profit margin improved to 20.5% in Q3 2023 compared to 18.1% in Q3 2022. Net income for Q3 2023 was $0.8 million, the same as Q3 2022. Earnings per share were $0.17 for Q3 2023, up from $0.16 in Q3 2022. Sales of residential products increased by 2.9% in the first nine months of 2023, while sales of commercial products increased by 7.5%.
- Selling, general and administrative expenses (SG&A) increased as a percentage of sales in Q3 2023 compared to Q3 2022. Interest expense for Q3 and YTD 2023 was higher compared to the same periods in 2022. Debt levels remain in line with expectations.
Burnham Holdings, Inc.'s financial performance for the first nine months of 2023 included the following:
- Net sales were
$59.7 million $171.4 million 4.1% over the first nine months of 2022. - Gross profit margin was
20.5% and18.1% for the third quarters of 2023 and 2022, respectively, primarily due to continued realization of pricing actions to offset inflation. Year to date gross profit margins were22.0% for 2023 versus16.3% for 2022. - Selling, general and administrative expenses (SG&A) were up as a percentage of sales to
17.1% in the third quarter of 2023 versus15.6% in the third quarter of 2022. Prior year spend was lower than historical norms as we slowly returned to pre-Covid staffing, travel, and administrative spending levels. For the first nine months of 2023 and 2022, SG&A as a percentage of sales was17.6% and16.4% , respectively. - Net income for the third quarter 2023 was
$0.8 million $4.8 million ( in 2022.$1.1) million - Earnings per share were
$0.17 $0.16 $1.03 $0.23
For the first nine months of 2023, sales of residential products were higher by
As noted in previous releases, 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 during the first nine months of 2023. Component part and commodity inflation continued through the first nine months of 2023, and 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.
Debt levels remain in line with expectations due to increased working capital needs and inflationary pressures impacting inventory valuations. Accordingly, interest expense for both the third quarter and year to date 2023 was higher versus the same periods in 2022. We will continue to evaluate our working capital needs, including inventory levels, to ensure we can appropriately meet production volumes.
Burnham Holdings, Inc. | ||||||||||
Consolidated Statements of Income | ||||||||||
(In thousands, except per share amounts) | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
October 1, | October 2, | October 1, | October 2, | |||||||
2023 | 2022 | 2023 | 2022 | |||||||
Net sales | $ 59,705 | $ 59,656 | $ 171,406 | $ 164,594 | ||||||
Cost of goods sold | 47,489 | 48,844 | 133,613 | 137,828 | ||||||
Gross profit | 12,216 | 10,812 | 37,793 | 26,766 | ||||||
Selling, general and administrative expenses | 10,182 | 9,299 | 30,164 | 27,017 | ||||||
Operating income (loss) | 2,034 | 1,513 | 7,629 | (251) | ||||||
Other expense: | ||||||||||
Non-service related pension credit | 137 | 106 | 412 | 319 | ||||||
Interest and investment gain (loss) | (222) | (129) | 267 | (347) | ||||||
Interest expense | (921) | (512) | (2,107) | (1,117) | ||||||
Other expense | (1,006) | (535) | (1,428) | (1,145) | ||||||
Income (loss) before income taxes | 1,028 | 978 | 6,201 | (1,396) | ||||||
Income tax expense (benefit) | 236 | 225 | 1,426 | (321) | ||||||
Net income (loss) | $ 792 | $ 753 | $ 4,775 | $ (1,075) | ||||||
Earnings (loss) per share | ||||||||||
Basic | $ 0.17 | $ 0.16 | $ 1.03 | $ (0.23) | ||||||
Diluted | $ 0.17 | $ 0.16 | $ 1.03 | $ (0.23) | ||||||
Cash dividends per share | $ 0.22 | $ 0.22 | $ 0.66 | $ 0.66 | ||||||
Burnham Holdings, Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
(In thousands) | ||||||||
(Unaudited) | (Unaudited) | |||||||
October 1, | December 31, | October 2, | ||||||
ASSETS | 2023 | 2022 | 2022 | |||||
Current Assets | ||||||||
Cash and cash equivalents | $ 6,638 | $ 6,994 | $ 6,151 | |||||
Trade accounts receivable, net | 27,704 | 29,243 | 24,569 | |||||
Inventories, net | 70,131 | 59,635 | 65,384 | |||||
Prepaid expenses and other current assets | 5,905 | 3,747 | 4,717 | |||||
Total Current Assets | 110,378 | 99,619 | 100,821 | |||||
Property, plant and equipment, net | 63,728 | 59,980 | 58,866 | |||||
Lease assets | 4,171 | 1,793 | 1,928 | |||||
Other long-term assets | 15,600 | 14,866 | 23,828 | |||||
Total Assets | $ 193,877 | $ 176,258 | $ 185,443 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable & accrued expenses | $ 28,574 | $ 36,047 | $ 29,374 | |||||
Current portion of long-term liabilities | 152 | 152 | 152 | |||||
Current portion of operating lease liabilities | 1,036 | 854 | 837 | |||||
Total Current Liabilities | 29,762 | 37,053 | 30,363 | |||||
Long-term debt | 53,713 | 33,721 | 46,034 | |||||
Lease liabilities | 3,135 | 939 | 1,091 | |||||
Other postretirement liabilities | 6,026 | 5,636 | 6,015 | |||||
Deferred income taxes | 7,984 | 7,822 | 9,110 | |||||
Shareholders' Equity | ||||||||
Preferred Stock | 530 | 530 | 530 | |||||
Class A Common Stock | 3,630 | 3,626 | 3,623 | |||||
Class B Convertible Common Stock | 1,314 | 1,318 | 1,321 | |||||
Additional paid-in capital | 16,826 | 16,565 | 16,564 | |||||
Retained earnings | 116,194 | 114,526 | 109,410 | |||||
Accumulated other comprehensive loss | (27,331) | (27,549) | (20,690) | |||||
Treasury stock, at cost | (17,906) | (17,929) | (17,928) | |||||
Total Shareholders' Equity | 93,257 | 91,087 | 92,830 | |||||
Total Liabilities and Shareholders' Equity | $ 193,877 | $ 176,258 | $ 185,443 | |||||
Burnham Holdings, Inc. | |||||
Consolidated Statements of Cash Flows | |||||
(In thousands) | |||||
(Unaudited) | |||||
Nine Months Ended | |||||
October 1, | October 2, | ||||
2023 | 2022 | ||||
Net income (loss) | $ 4,775 | $ (1,075) | |||
Depreciation and amortization | 3,730 | 3,546 | |||
Pension and postretirement liabilities expense | (375) | (28) | |||
Changes in operating assets and liabilities | (18,033) | (18,205) | |||
Net cash used by operating activities | (9,903) | (15,762) | |||
Purchase of property, plant and equipment | (7,622) | (5,114) | |||
Net proceeds from borrowings | 19,992 | 24,203 | |||
Share-based and treasury activity, net | 284 | 267 | |||
Dividends paid | (3,107) | (3,097) | |||
Net (decrease) increase in cash and cash equivalents | $ (356) | $ 497 | |||
Cash and cash equivalents, beginning of period | $ 6,994 | $ 5,654 | |||
Net (decrease) increase in cash and cash equivalents | (356) | 497 | |||
Cash and cash equivalents, end of period | $ 6,638 | $ 6,151 | |||
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, 2022 | $ 530 | $ 3,626 | $ 1,318 | $ 16,565 | $ (27,549) | $ 91,087 | |||||||||||
Cash dividends declared: | |||||||||||||||||
Common stock - ( | - | - | - | - | (1,012) | - | - | (1,012) | |||||||||
Net income for the period | - | - | - | - | 2,969 | - | - | 2,969 | |||||||||
Other comprehensive loss, | |||||||||||||||||
net of tax ( | - | - | - | - | - | (296) | - | (296) | |||||||||
Balance at April 2, 2023 | $ 530 | $ 3,626 | $ 1,318 | $ 16,565 | $ (27,845) | $ 92,748 | |||||||||||
Share-based compensation | - | - | - | 259 | - | - | 23 | 282 | |||||||||
Cash dividends declared: | |||||||||||||||||
Preferred stock - | - | - | - | - | (9) | - | - | (9) | |||||||||
Common stock - ( | - | - | - | - | (1,068) | - | - | (1,068) | |||||||||
Net income for the period | - | - | - | - | 1,014 | - | - | 1,014 | |||||||||
Other comprehensive income, | |||||||||||||||||
net of tax ( | - | - | - | - | - | 316 | - | 316 | |||||||||
Balance at July 2, 2023 | $ 530 | $ 3,626 | $ 1,318 | $ 16,824 | $ (27,529) | $ 93,283 | |||||||||||
Share-based compensation | - | - | - | 2 | - | - | - | 2 | |||||||||
Conversion of common stock | - | 4 | (4) | - | - | - | - | - | |||||||||
Cash dividends declared: | |||||||||||||||||
Common stock - ( | - | - | - | - | (1,018) | - | - | (1,018) | |||||||||
Net income for the period | - | - | - | - | 792 | - | - | 792 | |||||||||
Other comprehensive income, | |||||||||||||||||
net of tax ( | - | - | - | - | - | 198 | - | 198 | |||||||||
Balance at October 1, 2023 | $ 530 | $ 3,630 | $ 1,314 | $ 16,826 | $ (27,331) | $ 93,257 | |||||||||||
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, 2021 | $ 530 | $ 3,615 | $ 1,329 | $ 16,317 | $ (22,260) | $ 95,165 | |||||||||||
Share-based compensation | - | - | - | 37 | - | - | 3 | 40 | |||||||||
Cash dividends declared: | |||||||||||||||||
Common stock - ( | - | - | - | - | (1,011) | - | - | (1,011) | |||||||||
Net loss for the period | - | - | - | - | (755) | - | - | (755) | |||||||||
Other comprehensive income, | |||||||||||||||||
net of tax ( | - | - | - | - | - | 751 | - | 751 | |||||||||
Balance at April 3, 2022 | $ 530 | $ 3,615 | $ 1,329 | $ 16,354 | $ (21,509) | $ 94,190 | |||||||||||
Share-based compensation | - | - | - | 210 | - | - | 17 | 227 | |||||||||
Conversion of common stock | - | 8 | (8) | - | - | - | - | - | |||||||||
Cash dividends declared: | |||||||||||||||||
Preferred stock - | - | - | - | - | (9) | - | - | (9) | |||||||||
Common stock - ( | - | - | - | - | (1,066) | - | - | (1,066) | |||||||||
Net loss for the period | - | - | - | - | (1,073) | - | - | (1,073) | |||||||||
Other comprehensive income, | |||||||||||||||||
net of tax ( | - | - | - | - | - | 218 | - | 218 | |||||||||
Balance at July 3, 2022 | $ 530 | $ 3,623 | $ 1,321 | $ 16,564 | $ (21,291) | $ 92,487 | |||||||||||
Cash dividends declared: | |||||||||||||||||
Preferred stock - | - | - | - | - | - | - | - | - | |||||||||
Common stock - ( | - | - | - | - | (1,011) | - | - | (1,011) | |||||||||
Net income for the period | - | - | - | - | 753 | - | - | 753 | |||||||||
Other comprehensive income, | |||||||||||||||||
net of tax ( | - | - | - | - | - | 601 | - | 601 | |||||||||
Balance at October 2, 2022 | $ 530 | $ 3,623 | $ 1,321 | $ 16,564 | $ (20,690) | $ 92,830 | |||||||||||
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SOURCE Burnham Holdings, Inc.
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