Burnham Holdings, Inc. Reports First Quarter Results

LANCASTER, Pa., April 24, 2023

Burnham Holdings, Inc.'s financial performance for the first quarter 2023 included the following:

• Net sales were $59.5 million for 2023, an increase of $7.1 million, or 13.5%, versus 2022 as demand remained strong across both the residential and commercial businesses.
• Gross profit margin was 23.5% versus 15.9% for 2022, 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 lower as a percentage of sales at 16.9% in 2023 versus 17.2% in 2022.
• Interest expense for the first quarter of 2023 was higher versus the prior year due to rising interest rates and higher working capital levels. Interest rates on the revolving credit facility as of April 2, 2023 and April 3, 2022 were 6.60% and 2.19%, respectively.
• Net income for 2023 was $3.0 million versus net loss of ($0.8) million in 2022.
• Earnings per share was $0.64 for 2023 versus a loss per share of ($0.16) for 2022.

Sales of residential products increased by 7.8% in 2023 versus 2022, while sales of commercial products increased by 33.6% in 2023 versus 2022. Residential backlogs were flat compared to the prior year while commercial backlogs increased by $3.7 million over 2022. 

Overall, we are pleased with the results of the first quarter of 2023. The multiple pricing actions undertaken throughout 2022 across all subsidiaries in response to continuing inflationary pressures had a positive impact resulting in improved price realization in the first quarter of 2023 and subsequent strong financial performance. However, supply chain issues for certain components persist and hiring and retaining qualified employees is an ongoing headwind. We continue to monitor the need for additional pricing actions to maintain margins as well as remaining diligent and ready to respond to continued instability and uncertainty in the greater macro-economic environment. Accordingly, we advise caution when using the first quarter financial results as an indicator of future performance or full year results.

The Company's balance sheet is strong, with adequate levels of working capital to support current and future business opportunities. Long-term debt was $10.1 million higher than last year due to a combination of increased working capital levels and inflationary pressures impacting inventory valuations. Given the seasonal nature of our business, we continue to evaluate our working capital needs, including inventory levels, to ensure we can appropriately meet production volumes.

The Burnham Holdings, Inc. 2023 Annual Meeting of Shareholders is being held today in Lancaster, PA at 11:30 a.m. A press release regarding today's shareholder voting and the Board of Directors determination regarding declaration of a quarterly dividend will be released later this afternoon.