Burnham Releases Six Months Results
29 July 1999
Burnham Releases Six Months Results
LANCASTER, Pa., July 29 -- Burnham Corporation
(OTC Bulletin Board: BURCA), a major manufacturer of boilers, furnaces,
radiators and related equipment for domestic and international residential,
commercial and industrial markets, today reported results for the period ended
June 30, 1999 and announced a common stock dividend.
Second quarter sales were $45.6 million, an increase of $8.4 million, or
23%, over last year's $37.2 million. Sales for six months were a record
$87.3 million, up $14.8 million, or 20%, over 1998. Sales of residential
products increased 8% over the same period of 1998. Bryan Steam Corporation,
acquired in November 1998, had sales of $6.7 million for the quarter and $13.0
million for six months. With the addition of Bryan commercial product sales
were up 50% in the first six months of 1999.
Net income for the quarter was slightly less than $1.2 million, more than
doubling the $554 thousand earned in 1998. For six months income exceeded
$1.2 million versus $0.6 million last year. Basic earnings per share of $0.51
for the second quarter were a record for the period.
Residential boiler and furnace sales have recovered significantly for the
quarter and six month periods after slumping for the prior two years due to
mild winter weather. The company grew its market share for the quarter and
expects this growth to continue for the year.
Commercial sales of smaller low-pressure steel-firetube, copper-fin and
water-tube boilers for heating applications are at record levels. Sales of
large, high-pressure steam boilers for industrial applications remain soft,
especially for international orders due to worldwide economic conditions. It
is does not appear that there will be any recovery in the industrial market in
1999. Despite these conditions Burnham's market position in commercial
boilers has improved because of the Bryan Steam acquisition.
The company expects increased sales in the second half of the year from
the normal seasonal pattern for heating products. Overall, the company is
forecasting record sales with strong earnings growth in 1999.
On July 27, 1999, the Board of Directors declared a regular quarterly
dividend of $0.45 per share for both classes of common stock payable September
1, 1999 with a record date of August 13, 1999.
FINANCIAL HIGHLIGHTS
(In thousands of dollars, except per share amounts)
1999 1998 1999 1998
3 Months 3 Months 6 Months 6 Months
Ended Ended Ended
June 30 June 30 June 30 June 30
Net sales $45,616 $37,184 $87,327 $72,564
Cost of goods sold 32,156 27,622 63,044 54,414
18,087 18,478 49,848 50,839
Selling, administrative
and general expense 10,092 8,639 21,040 16,790
Income from operations 2,558 923 3,243 1,360
Other income (expense)
Interest income 99 106 265 289
Interest expense (726) (324) (1,487) (646)
(627) (218) (1,222) (357)
Income before
income taxes 1,931 922 2,021 1,003
Income taxes 771 369 807 401
Net income for period $1,160 $554 $1,214 $602
Per common share*:
Basic Earnings $0.51 $0.24 $0.53 $0.26
Diluted earnings $0.50 $0.24 $0.52 $0.26
Dividends $0.45 $0.43 $0.90 $0.86
* Basic earnings per share are based upon weighted average shares
outstanding for the period. Diluted earnings per share assume the conversion
of outstanding rights into common stock.
Consolidated Balance Sheets
($ thousands)
June 30
1999 1998
ASSETS
Current Assets
Cash and cash equivalents $5,108 $6,040
Trade and other accounts
receivable, net 32,470 26,155
Inventories 40,346 34,582
Prepayments and other assets 2,420 2,536
Total current assets 80,344 69,313
Property, plant and equipment,
net 57,410 48,894
Other assets, net 20,000 6,110
$157,754 $124,317
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable & accrued
expenses $25,641 $22,006
Short term borrowings 1,000 1,000
Accrued taxes 654 679
Current long term debt 2,694 1,737
Total current liabilities 29,989 25,422
Long term liabilities 38,609 16,785
Other postretirement benefit
obligations 5,141 4,929
Deferred income taxes 10,979 7,909
Stockholders' equity
Preferred stock 530 530
Class A common stock 1,607 1,586
Class B common stock 1,031 1,045
Additional paid-in capital 12,688 12,502
Retained earnings 72,203 68,161
Treasury stock, at cost (15,023) (14,552)
Total stockholders' equity 73,036 69,272
$157,754 $124,317