Burnham Holdings, Inc., a leading manufacturer of boilers, furnaces, radiators, air conditioning systems, and related accessories for residential, commercial and industrial applications, today reported its financial results for the period ended September 28, 2008.

Third quarter and year-to-date sales were $62.9 million and $149.8 million, respectively. Prior year third quarter and year-to-date sales were $59.8 million and $154.2 million, respectively. Sales for the third quarter have increased as compared to a year ago. The residential portion of our business led that increase as it enters the heating season. The increase was achieved despite the ongoing economic conditions that continue to dominate the national news, namely declining housing and real estate markets, uncertainty in the financial markets, and tightening of credit. Our commercial businesses reported sales for the quarter similar to last year, which was a strong quarter. Although current conditions remain challenging, we are optimistic about longer-term prospects for the business. Existing boilers will continue to be replaced over time due to age or operating costs. Our many new high-efficiency product introductions, for both portions of our business, are considered some of the best on the market and have been well received by contractors, specifiers, and building owners. These are adding to our already powerful lineup of products across all our residential and commercial brands that position us well in the respective markets.

The income for the third quarter was $2.5 million or $0.56 per share, compared to prior year’s $1.7 million or $0.37 per share. Year-to-date income was $277 thousand or $0.06 per share, compared to prior year’s $1.2 million or $0.26 per share. As we have discussed in our prior reports, the Burnham group of companies, like most users of steel products in the United States, has experienced substantial cost increases for raw steel and steel related products this year, which has negatively impacted our gross margin. We have announced product price increases within all of our businesses to mitigate these cost impacts, while at the same time being cognizant of our need to remain cost competitive in this difficult market. Selling, administrative, and general expense was lower in dollars, and as a percentage of sales, compared to the prior year (both for the quarter and year-to-date) and is indicative of actions taken by Burnham to lower its cost structure. Other income (expense) is favorably lower for the quarter and year-to-date compared to last year because of our lower debt levels and borrowing rates, in addition to favorable mark-to-market adjustments on our interest rate agreements.

The Company’s balance sheet remains strong with high liquidity and working capital at a level consistent with the business activity. Inventory levels are lower than last year at this time despite the sharp increase in raw material costs, increases resulting from our new product introductions, and increases within our commercial businesses that have experienced growth. We are able to maintain adequate inventory levels, with a resulting stronger cash flow, because of the increased production flexibility provided by the facility expansions and equipment improvements made over the last several years. Total debt at September 28, 2008 is $43.4 million, or $6.0 million lower than at this point last year, and as a percentage of total capital (debt and equity) is 32.9% versus 38.1% last year. Burnham’s long-term financing arrangements are a combination of Industrial Revenue Bonds (”IRB’s”), State-assisted equipment loans, and a Revolving line of credit (committed through mid-2010). The IRB’s and line of credit are with multiple financial institutions and as of September 28, 2008, Burnham is in compliance with all covenants.

At its meeting on October 9, 2008, Burnham Holdings, Inc.’s Board of Directors declared a quarterly common stock dividend of $0.17 per share payable December 1, 2008, with a record date of November 7, 2008; and a semi-annual preferred stock dividend of $1.50 per share payable December 29, 2008 with a record date of December 8, 2008.

Tags: air-conditioning systems Burnham Corp Burnham Holdings Inc. Earnings Announcement industrial applications raw steel real estate markets steel products steel related products United States Incoming Search Terms: Machinery in building construction construction machinery in Africa realstats Jeddah Baldomero Falcones Jaquotot said improvement of machinery in construction industry Recent Searches: Archive Design Studio Animal Services Advisory Board Animal Services Advisory Board Tatiana Pogrebnyak (born in Ukraine living in Isra Keith Paskin