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Burnham Holdings, Inc. Announces Third Quarter And Nine Months Results

Mittwoch, 19.10.2016 22:05 von

PR Newswire

LANCASTER, Pa., Oct. 19, 2016 /PRNewswire/ -- Burnham Holdings, Inc., (OTC-PINK: BURCA), the parent company of multiple subsidiaries that are leading domestic manufacturers of boilers, and related HVAC products and accessories (including furnaces, radiators, and air conditioning systems), for residential, commercial and industrial applications, today reported its financial results for the period ended September 25, 2016.

Highlights of our third quarter and year-to-date (YTD) operations include the following:

  • Net sales in the third quarter and YTD were $42.1 million and $109.9 million, respectively, compared to $53.8 million and $128.7 million in the same periods last year.
  • Gross profit as a percent of sales was 20.5% on a year-to-date (YTD) basis in 2016 compared to 21.8% on a YTD basis in 2015.
  • Net income was $0.23 million in the first nine months of 2016 compared to $2.26 million in the first nine months of 2015.
  • Our U.S. Boiler, Velocity and New Yorker subsidiaries all introduced new energy efficient residential products in the first half of this year. These new products, along with others now in development, further strengthen our ability to service every sector of the residential hydronic heating market.

The combined impact of low energy prices, unseasonably mild temperatures, and excess product inventory in the distribution supply chain has adversely impacted short term demand for our residential boiler products as consumers have less incentive to upgrade and/or replace older, lower efficiency heating equipment with new, replacement products.  As a result, our residential boiler unit sales were lower compared to the same period last year, leading the decline in overall sales. Third quarter sales in 2016 declined by $11.6 million compared to the third quarter of 2015.  On a YTD basis in 2016, overall sales dropped by $18.9 million, or 14.6% compared to 2015 results.  Net income in the third quarter was $0.46 million, compared to $2.22 million last year.  Our 2016 YTD net income was $23 thousand, compared to $2.26 million in 2015.

Cost of goods sold ("COGS") as a percentage of sales for the third quarter and YTD in 2016 was 81.1% and 79.5%, respectively, compared to 77.9% and 78.2% for the same periods in 2015.  The increase in cost of goods sold was mainly the result of the mix of products being sold as well as negative cost impacts due to lower operating levels in our various manufacturing operations. Selling, general and administrative expenses were lower in dollar terms in the third quarter and YTD 2016 compared to 2015, but higher when measured as a percentage of sales as a result of the significant decline in sales volume.  Other expenses through nine months of 2016 are lower by $154 thousand compared to the same period in 2015.  This was mainly due to lower interest expenses that resulted from reduced interest rates on our various borrowing facilities in 2016 when compared to last year.

The Company's balance sheet has adequate levels of working capital based on our expected level of business activity as we move into the fourth quarter of the year.  Long-term debt is basically flat compared to last year ($30.4 million vs. $30.3 million), and represents a manageable level when measured as a percentage of total capital. 

Also, Christopher Drew, Executive Vice President for Burnham Holdings, will be appointed as Chairman of the Air Conditioning Heating and Refrigeration Institute (AHRI) during AHRI's Annual Meeting this November.  We would like to congratulate Chris on his appointment and wish him success as he assumes this role on behalf of the HVAC industry.

 





Consolidated Statements of Operations

Three Months Ended


Nine Months Ended

(In thousands, except per share data)

Sep 25,


Sep 27,


Sep 25,


Sep 27,

(Data is unaudited (see Notes))

2016


2015


2016


2015

Net sales 

$  42,114


$  53,760


$109,859


$128,715

Cost of goods sold

34,154


41,871


87,332


100,629



Gross profit

7,960


11,889


22,527


28,086

Selling, general and administrative expenses

6,977


8,113


21,801


23,706



Operating income 

983


3,776


726


4,380











Other income (expense):









Interest income

16


12


47


37


Interest expense

(280)


(313)


(736)


(880)



Other income (expense)

(264)


(301)


(689)


(843)











Income before income taxes

719


3,475


37


3,537

Income tax expense (benefit)

260


1,251


14


1,273


NET INCOME

$       459


$    2,224


$         23


$    2,264


BASIC & DILUTED INCOME (LOSS) PER SHARE

$      0.10


$      0.49


$            -


$      0.50


DIVIDENDS PAID

$      0.22


$      0.22


$      0.66


$      0.66





















Consolidated Balance Sheets








(in thousands and data is unaudited (see Notes))





Sep 25,


Sep 27,



ASSETS





2016


2015

CURRENT ASSETS









Cash and cash equivalents





$    5,698


$    5,670


Trade accounts receivable, less allowances





23,744


25,091


Inventories





56,962


54,573


Prepaid expenses and other current assets





1,439


2,319



TOTAL CURRENT ASSETS





87,843


87,653

PROPERTY, PLANT AND EQUIPMENT, net





46,838


47,736

DEFERRED INCOME TAXES (4)







104

OTHER ASSETS, net





22,142


22,324



TOTAL ASSETS





$156,823


$157,817



LIABILITIES AND STOCKHOLDERS' EQUITY





2016


2015

CURRENT LIABILITIES









Accounts and taxes payable & accrued expenses





$  21,674


$  22,756


Current portion of long-term liabilities





1,264


232



TOTAL CURRENT LIABILITIES





22,938


22,988

LONG-TERM DEBT





32,184


31,361

OTHER POSTRETIREMENT LIABILITIES (4)(5)





23,076


25,865

DEFERRED INCOME TAXES





495


-

STOCKHOLDERS' EQUITY









Preferred Stock





530


530


Class A Common Stock 





3,484


3,466


Class B Convertible Common Stock





1,461


1,478


Additional paid-in capital





15,684


15,552


Retained earnings





108,474


106,993


Accumulated other comprehensive income (loss) (4)




(33,505)


(32,411)


Treasury stock, at cost 





(17,998)


(18,005)



TOTAL STOCKHOLDERS' EQUITY





78,130


77,603



TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY




$156,823


$157,817

 

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SOURCE Burnham Holdings, Inc.