BURNHAM HOLDINGS, INC. REPORTS FIRST HALF RESULTS AND DECLARES DIVIDEND

LANCASTER, Pa., July 21, 2022

Burnham Holdings, Inc.'s financial performance in the first half of 2022 included the following:

• Net sales increased by approximately 20% for the second quarter and first half of 2022 versus 2021 as demand remained strong across both the residential and commercial businesses.
• Gross profit was 14.5% and 10.0% for the second quarters of 2022 and 2021, respectively, primarily as the result of pricing actions to offset inflation. Year to date gross profit was 15.2% and 13.0% for 2022 and 2021, respectively.
• Selling, general and administrative expenses were up year over year but remained flat as a percentage of sales at approximately 17% for the second quarter and first half of 2022 versus 2021.
• Net loss for the second quarter of 2022 was $1.1 million compared to net loss of $2.5 million in the second quarter of 2021. First half 2022 net loss was $1.8 million versus first half 2021 net loss of $3.1 million. Material inflation and staffing challenges continue to impact profitability. Rising interest rates and higher debt levels resulted in higher interest expense versus the same period last year.

For the first half of 2022, sales of residential products increased by 20.5% while sales of commercial products increased by 18.7% compared to the first half of 2021.  We are seeing strong momentum from incoming orders as both the residential and commercial backlogs have increased by $12.6 million and $9.9 million versus the prior year, respectively. 

As we've noted in several of our recent financial results releases, profitability continues to be pressured by significant challenges in hiring and retaining qualified employees as well as multiple supply chain issues.  Production capacity and efficiencies continue to be hampered by parts availability and shortages of critical materials.  Appropriate pricing actions have been taken across all subsidiaries in response to continuing inflationary pressures.  Although there are signs of improvement, we 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 $37.8 million was $5.2 million higher than last year, with the increase mostly attributable to inflationary pressures impacting working capital needs.  The increase versus December 31, 2021 is consistent with past years due to the seasonality and operating cycle of our business.

At its meeting on July 21, 2022, the Burnham Holdings, Inc. Board of Directors declared a regular quarterly common stock dividend of $0.22 per share payable August 17, 2022, with a record date of August 11, 2022.