Burnham Holdings, Inc. Reports Second Quarter 2024 Financial Results and Declares Dividend
- 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
Average debt levels of the Company's revolving credit facility for the second quarter of 2024 were approximately
At its meeting on
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Consolidated Statements of Income |
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(In thousands, except per share amounts) |
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(Unaudited) |
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Three Months Ended |
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Six Months Ended |
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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 |
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Earnings per share: |
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|
|
|
|
|
|
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 |
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Consolidated Balance Sheets |
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(In thousands) |
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(Unaudited) |
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(Unaudited) |
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ASSETS |
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2024 |
|
2023 |
|
2023 |
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Current Assets |
|
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|
|
|
||
|
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 |
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|
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Total Assets |
|
$ 200,903 |
|
$ 184,671 |
|
$ 193,993 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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|
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Current Liabilities |
|
|
|
|
|
|
||
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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 |
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Deferred income taxes |
|
9,174 |
|
9,095 |
|
8,266 |
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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) |
|
|
|
|
(11,058) |
|
(12,431) |
|
(12,475) |
|
|
|
Total Shareholders' Equity |
|
103,416 |
|
101,435 |
|
94,862 |
|
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Total Liabilities and Shareholders' Equity |
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$ 200,903 |
|
$ 184,671 |
|
$ 193,993 |
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Consolidated Statements of Cash Flows |
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(In thousands) |
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(Unaudited) |
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Six Months Ended |
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|
|
|
|
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|
2024 |
|
2023 |
Cash flows from operating activities: |
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|
|
|
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 |
|
|
|
|
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Consolidated Statements of Shareholders' Equity |
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(In thousands) |
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(Unaudited) |
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Class B |
|
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|
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Accumulated |
|
|
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|
|
|
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|
Class A |
|
Convertible |
|
Additional |
|
|
|
Other |
|
|
|
|
|
|
Preferred |
|
Common |
|
Common |
|
Paid-in |
|
Retained |
|
Comprehensive |
|
Stock, |
|
Shareholders' |
|
|
Stock |
|
Stock |
|
Stock |
|
Capital |
|
Earnings |
|
Loss |
|
at Cost |
|
Equity |
Balance at |
|
$ 530 |
|
$ 3,633 |
|
$ 1,311 |
|
$ 11,769 |
|
|
|
$ (24,668) |
|
|
|
$ 101,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
- |
|
- |
|
- |
|
- |
|
2,991 |
|
- |
|
- |
|
2,991 |
Other comprehensive income, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of tax |
|
- |
|
- |
|
- |
|
- |
|
- |
|
253 |
|
- |
|
253 |
Cash dividends declared: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock - ( |
|
- |
|
- |
|
- |
|
- |
|
(1,065) |
|
- |
|
- |
|
(1,065) |
Share-based compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense recognition |
|
- |
|
- |
|
- |
|
100 |
|
- |
|
- |
|
- |
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
$ 530 |
|
$ 3,633 |
|
$ 1,311 |
|
$ 11,869 |
|
|
|
$ (24,415) |
|
|
|
$ 103,714 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
- |
|
- |
|
- |
|
- |
|
841 |
|
- |
|
- |
|
841 |
Other comprehensive income, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of tax |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(27) |
|
- |
|
(27) |
Cash dividends declared: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock - 6% |
|
- |
|
- |
|
- |
|
- |
|
(9) |
|
- |
|
- |
|
(9) |
Common stock - ( |
|
- |
|
- |
|
- |
|
- |
|
(1,132) |
|
- |
|
- |
|
(1,132) |
Share-based compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense recognition |
|
- |
|
- |
|
- |
|
100 |
|
- |
|
- |
|
- |
|
100 |
Issuance of vested shares |
|
- |
|
- |
|
- |
|
(1,444) |
|
- |
|
- |
|
1,373 |
|
(71) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
$ 530 |
|
$ 3,633 |
|
$ 1,311 |
|
$ 10,525 |
|
|
|
$ (24,442) |
|
|
|
$ 103,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B |
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
Class A |
|
Convertible |
|
Additional |
|
|
|
Other |
|
|
|
|
|
|
Preferred |
|
Common |
|
Common |
|
Paid-in |
|
Retained |
|
Comprehensive |
|
Stock, |
|
Shareholders' |
|
|
Stock |
|
Stock |
|
Stock |
|
Capital |
|
Earnings |
|
Loss |
|
at Cost |
|
Equity |
Balance at |
|
$ 530 |
|
$ 3,626 |
|
$ 1,318 |
|
$ 11,928 |
|
|
|
$ (27,549) |
|
|
|
$ 92,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
- |
|
- |
|
- |
|
- |
|
2,969 |
|
- |
|
- |
|
2,969 |
Other comprehensive income, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of tax |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(296) |
|
- |
|
(296) |
Cash dividends declared: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock - ( |
|
- |
|
- |
|
- |
|
- |
|
(1,012) |
|
- |
|
- |
|
(1,012) |
Share-based compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense recognition |
|
- |
|
- |
|
- |
|
75 |
|
- |
|
- |
|
- |
|
75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
$ 530 |
|
$ 3,626 |
|
$ 1,318 |
|
$ 12,003 |
|
|
|
$ (27,845) |
|
|
|
$ 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 - ( |
|
- |
|
- |
|
- |
|
- |
|
(1,068) |
|
- |
|
- |
|
(1,068) |
Share-based compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense recognition |
|
- |
|
- |
|
- |
|
357 |
|
- |
|
- |
|
- |
|
357 |
Issuance of vested shares |
|
- |
|
- |
|
- |
|
(861) |
|
- |
|
- |
|
817 |
|
(44) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
$ 530 |
|
$ 3,626 |
|
$ 1,318 |
|
$ 11,499 |
|
|
|
$ (27,529) |
|
|
|
$ 94,862 |
View original content:https://www.prnewswire.com/news-releases/burnham-holdings-inc-reports-second-quarter-2024-financial-results-and-declares-dividend-302207005.html
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