BURNHAM HOLDINGS, INC. ANNOUNCES FULL-YEAR 2022 FINANCIAL RESULTS

LANCASTER, Pa., Feb. 16, 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 we are seeing signs of improvement, 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 we continue to monitor the need for additional pricing actions to maintain margins.  We continue 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.