Burnham Holdings reported its financial results for the first quarter ended March 29, 2015. Net sales increased $2.8 million, or 8%, to $38.5 million compared to $35.7 million in Q1 2014.
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Gross profit as a % of sales increased to 19.6% vs. 19.4% in last year's first quarter.
Net loss for the quarter was $(0.6) million, an improvement from the $(0.8) million loss recorded in the first quarter last year.
First quarter 2015 sales were $38.5 million, an increase of 8% over the first quarter of 2014. Improvements in sales were experienced in our residential businesses (up 9%) as well as our commercial businesses (up 6%).
Net loss in the first quarter was $(588) thousand, or $(0.13) per share, compared to a net loss of $(786) thousand, or $(0.17) per share, reported for the first quarter of 2014.
The first quarter 2014 net loss was favorably impacted by a $451 thousand gain resulting from the settlement of a multiemployer pension withdrawal liability as explained in Note 3 of the attached financial statements. Excluding the impact of this one-time favorable item from 2014 results, net loss in the first quarter of 2015 would have been $649 thousand better than the first quarter of 2014.
Cost of goods sold (COGS) as a percentage of sales for the current quarter was 80.4%, compared to first quarter 2014 of 80.6%. Excluding the first quarter of 2013 that was favorably impacted by the unusual demand from Super Storm Sandy, the COGS percentage of sales in 2015 is the lowest achieved over the last six years.
Selling, general and administrative expenses were lower in the current quarter in both dollar terms ($8.2 million vs. $8.4 million) and as a percentage of sales (21.3% vs. 23.4%) compared to the first quarter of 2014. Other income (expense) was expense of $(248) thousand compared to income of $207 thousand in the first quarter of 2014 which was favorably influenced by the $451 thousand gain from the multiemployer pension withdrawal liability noted above.
Excluding this non-recurring item would result in 2014 expense of $(244) which is comparable to the current year total.
The company's balance sheet has appropriate levels of working capital to support current business activity. Long-term debt was higher this quarter at $16 million, but remains at a very favorable percentage of total capital.
Net cash used in operations was higher by $2.3 million as inventory and accounts receivable increased to support the higher sales volume achieved in the first quarter of 2015. ■