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

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