Burnham Declares Dividends and Releases Nine Months Results
26 October 1999
Burnham Declares Dividends and Releases Nine Months Results
LANCASTER, Pa., Oct. 25 -- 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
September 30, 1999 and announced common and preferred stock dividends.
The company reported record sales of $62.7 million for the third quarter
and $150.1 million for nine months. For the quarter, sales were up
$12.6 million, a 25% increase from the prior year. For nine months, sales were
up $27.3 million, an increase of 22% from 1998. Burnham's residential product
sales increased by 10% as the company achieved record market share levels.
With the addition of Bryan Steam to the Burnham group of companies, commercial
products also achieved record market share with a 58% growth in sales from
1998.
Net income for the quarter grew by $1.4 million, or 55% over the prior
year, to a record $4.0 million. As a result, year-to-date earnings reached
$5.2 million, an increase of $2.0 million, or 64% over 1998. Basic earnings
per share of $1.76 for the quarter were a record for the period.
The company's record quarter was fueled by growing residential boiler and
furnace sales, an outstanding performance by its foundry division and the
additional sales from its newest acquisition, Bryan Steam. As the only
company in the industry offering a complete line of products for all
residential and commercial markets, Burnham expects on-going growth in its
market shares through the continual introduction of new products and its
innovative marketing programs.
Despite the effect of three consecutive mild winters on the residential
heating market and a downturn in the industrial market caused by international
economic conditions, Burnham recorded its fourth consecutive quarter of sales
and earnings growth.
Burnham expects increased sales for the balance of the year from market
penetration and from the normal seasonal pattern for heating products.
Overall, the company is forecasting record sales with strong earnings growth
in 1999.
On October 14, 1999, the Company declared a regular quarterly dividend of
$0.45 per share for both classes of common stock payable December 1, 1999 with
a record date of November 13, 1999. A regular semi-annual dividend of
$1.50 per share was declared payable December 31, 1999 with a record date of
December 15, 1999.
FINANCIAL HIGHLIGHTS
(In thousands of dollars, except per share amounts)
1999 1998 1999 1998
3 Months 3 Months 9 Months 9 Months
Ended Ended Ended Ended
Sept 30 Sept 30 Sept 30 Sept 30
Net sales $62,726 $50,161 $150,053 $122,725
Cost of goods sold 42,984 36,550 106,028 90,964
19,742 13,611 44,025 31,761
Selling, administrative
and general expense 12,402 9,073 33,442 25,863
Income from operations 7,340 4,538 10,583 5,898
Other income (expense)
Interest income 30 45 295 334
Interest expense (742) (310) (2,229) (956)
(712) (265) (1,934) (622)
Income before
income taxes 6,628 4,273 8,649 5,276
Income taxes 2,652 1,710 3,459 2,110
Net income for period $3,976 $2,563 $5,190 $3,166
Per common share:
Basic Earnings $1.76 $1.13 $2.29 $1.40
Diluted earnings $1.73 $1.11 $2.25 $1.37
Dividends $0.45 $0.43 $1.35 $1.29
Basic earnings per share are based upon weighted average shares
outstanding for the period. Diluted earnings per share assume the conversion
of outstanding rights into common stock.
Consolidated Balance Sheets
($ thousands)
September 30
1999 1998
ASSETS
Current Assets
Cash and cash equivalents $3,679 $3,998
Trade and other accounts
receivable, net 43,016 34,456
Inventories 40,232 33,449
Prepayments and other
assets 1,900 1,645
Total current assets 88,827 73,548
Property, plant and equipment,
net 57,135 48,633
Other assets, net 20,297 6,133
$166,259 $128,314
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable & accrued
expenses $29,687 $24,676
Short term borrowings 1,500 --
Accrued taxes 2,095 1,633
Current long term debt 4,834 1,705
Total current
liabilities 38,116 28,014
Long term liabilities 36,187 16,490
Other postretirement benefit
obligations 5,291 5,054
Deferred income taxes 11,200 7,909
Stockholders' equity
Preferred stock 530 530
Class A common stock 1,615 1,587
Class B common stock 1,024 1,044
Additional paid-in capital 12,690 12,502
Retained earnings 75,165 69,750
Treasury stock, at cost (15,559) (14,566)
Total stockholders'
equity 75,465 70,847
$166,259 $128,314