LANCASTER, PA — Burnham Holdings, Inc. (OTC-Pink: BURCA) recenlty reported its financial results for the twelve months that ended December 31, 2022. Further details of the results below, as well as complete audited financial statements and footnotes, will be provided in the Company’s Annual Report (expected to be available in late March 2023).
Burnham Holdings, Inc.’s financial performance for the year ended 2022 included the following:
- Net sales were $240.5 million for 2022, an increase of $22.0 million, or 10.1%, versus 2021 as demand remained strong across both the residential and commercial businesses.
- Gross profit margin was 19.0% for 2022 versus 16.0% for 2021, primarily as the result of pricing actions to offset inflation. Material inflation, supply chain and staffing challenges continue to remain headwinds.
- Selling, general and administrative expenses were up $2.4 million year over year but improved as a percentage of sales at 15.1% in 2022 versus 15.5% in 2021.
- Net income for 2022 was $5.1 million versus $1.0 million in 2021. Rising interest rates and higher working capital levels resulted in higher interest expense versus the same period last year.
- Earnings per share was $1.10 for 2022 versus $0.22 for 2021.
Sales of residential products increased by 6.6% in 2022 versus 2021, while sales of commercial products increased by 21.9% in 2022 versus 2021. Incoming orders were strong in 2022 as both the residential and commercial year-end backlogs were higher by $13.1 million and $7.9 million, respectively, versus the prior year.
While it is seeing signs of improvement, the Company stated that profitability continues to be pressured by significant challenges in hiring and retaining qualified employees as well as multiple supply chain issues. Additionally, production quantities and efficiencies for finished goods have been negatively impacted by the availability of both internally and externally sourced parts. Appropriate pricing actions were taken across all subsidiaries in response to continuing inflationary pressures and the Company continues to monitor the need for additional pricing actions to maintain margins. The Company stated that it continues to remain diligent and ready to respond to continued instability and uncertainty in the greater macro-economic environment.
The Company’s balance sheet continues to be strong, with adequate levels of working capital to support current and future business opportunities. Long-term debt of $33.7 million was $11.9 million higher than last year as a result of increased working capital levels. Approximately 46% of the increase was attributable to inflationary pressures impacting inventory valuations, with the balance of the increase versus December 31, 2021 resulting from increased working capital needed to support higher sales and production volumes.
At its meeting on February 16, 2023, Burnham Holdings, Inc.’s Board of Directors declared a quarterly common stock dividend of $0.22 per share, payable on March 10, 2023 with a record date of March 3, 2023; and has scheduled the 2023 Annual Meeting of Shareholders for Monday, April 24th with a shareholder record date of March 1, 2023. The meeting will be held at the Penn Square Marriott in Lancaster, Pennsylvania beginning at 11:30 A.M.
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Burnham Holdings, Inc. |
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Consolidated Statements of Income |
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Twelve months ended December 31, 2022 and 2021 |
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(In thousands, except per share amounts) |
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(Unaudited) |
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2022 |
2021 |
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Net sales |
$ 240,547 |
$ 218,508 |
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Cost of goods sold |
194,871 |
183,486 |
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Gross profit |
45,676 |
35,022 |
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Selling, general and administrative expenses |
36,245 |
33,891 |
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Operating income |
9,431 |
1,131 |
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Other income (expense): |
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Non-service related pension credit |
130 |
574 |
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Investment loss net of interest income |
(1,124) |
596 |
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Interest expense |
(1,690) |
(1,049) |
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Other (expense) income |
(2,684) |
121 |
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Income before income taxes |
6,747 |
1,252 |
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Income tax expense |
1,682 |
229 |
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Net income |
$ 5,065 |
$ 1,023 |
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Earnings per share |
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Basic |
$ 1.10 |
$ 0.22 |
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Diluted |
$ 1.10 |
$ 0.22 |
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Cash dividends per share |
$ 0.88 |
$ 0.88 |
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Burnham Holdings, Inc. |
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Consolidated Balance Sheets |
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December 31, 2022 and 2021 |
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(In thousands) |
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(Unaudited) |
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ASSETS |
2022 |
2021 |
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Current Assets |
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Cash and cash equivalents |
$ 6,994 |
$ 5,654 |
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Trade accounts receivable, net |
29,243 |
24,920 |
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Inventories, net |
59,635 |
51,066 |
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Prepaid expenses and other current assets |
3,747 |
4,717 |
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Total Current Assets |
99,619 |
86,357 |
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Property, plant and equipment, net |
59,980 |
57,496 |
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Lease assets |
1,793 |
2,065 |
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Other long-term assets |
14,866 |
21,551 |
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Total Assets |
$ 176,258 |
$ 167,469 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current Liabilities |
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Accounts payable & accrued expenses |
$ 36,047 |
$ 33,442 |
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Current portion of long-term liabilities |
152 |
152 |
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Current portion of operating lease liabilities |
854 |
765 |
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Total Current Liabilities |
37,053 |
34,359 |
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Long-term debt |
33,721 |
21,830 |
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Lease liabilities |
939 |
1,300 |
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Other postretirement liabilities |
5,636 |
6,062 |
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Deferred income taxes |
7,822 |
8,753 |
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Shareholders’ Equity |
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Preferred Stock |
530 |
530 |
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Class A Common Stock |
3,626 |
3,615 |
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Class B Convertible Common Stock |
1,318 |
1,329 |
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Additional paid-in capital |
16,565 |
16,317 |
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Retained earnings |
114,526 |
113,582 |
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Accumulated other comprehensive loss |
(27,549) |
(22,260) |
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Treasury stock, at cost |
(17,929) |
(17,948) |
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Total Shareholders’ Equity |
91,087 |
95,165 |
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Total Liabilities and Shareholders’ Equity |
$ 176,258 |
$ 167,469 |
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Burnham Holdings, Inc. |
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Consolidated Statements of Cash Flows |
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Twelve months ended December 31, 2022 and 2021 |
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(In thousands) |
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(Unaudited) |
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2022 |
2021 |
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Cash flows from operating activities: |
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Net income |
$ 5,065 |
$ 1,023 |
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Adjustments to reconcile net income to net cash provided |
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by operating activities: |
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Depreciation and amortization |
4,802 |
4,543 |
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Deferred income taxes |
(106) |
152 |
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Provision for long-term employee benefits |
(119) |
93 |
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Contributions to pension trust |
– |
(500) |
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Other reserves and allowances |
920 |
1,165 |
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Changes in current assets and liabilities: |
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(Increase) decrease in accounts receivable, net |
(4,318) |
3,734 |
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(Increase) decrease in inventories, net |
(8,569) |
(1,863) |
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Decrease (increase) in other current assets |
312 |
(591) |
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Increase (decrease) in accounts payable and accrued expenses |
3,212 |
2,772 |
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Net cash provided by operating activities |
1,199 |
10,528 |
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Cash flows from investing activities: |
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Capital expenditures |
(7,278) |
(9,534) |
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Investment in EnviroPower |
(611) |
(796) |
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Other investing activities |
(8) |
(8) |
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Net cash used by investing activities |
(7,897) |
(10,338) |
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Cash flows from financing activities: |
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Net proceeds from borrowings |
11,892 |
3,561 |
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Proceeds from share-based compensation activity |
248 |
202 |
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Repurchase of common and preferred stock |
19 |
16 |
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Dividends paid |
(4,121) |
(4,074) |
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Net cash provided by (used by) financing activities |
8,038 |
(295) |
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Net increase (decrease) in cash and cash equivalents |
$ 1,340 |
$ (105) |
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Cash and cash equivalents, beginning of period |
5,654 |
5,759 |
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Net increase in cash and cash equivalents |
1,340 |
(105) |
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Cash and cash equivalents, end of period |
$ 6,994 |
$ 5,654 |
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