Burnham Holdings, Inc. Announces First Quarter 2025 Financial Results

Rhea-AI Summary

Burnham Holdings reported strong Q1 2025 financial results with net sales reaching $64.8 million, a 15.8% increase from Q1 2024. The company's residential product sales grew by 20.1%, commercial products by 2.6%, and service/rentals business surged by 40.1%.

Key financial highlights:

• Gross profit margin improved to 25.4% (from 24.9% in Q1 2024)
• EBITDA reached $6.0 million (9.3% of net sales)
• Net income increased to $3.4 million (vs $3.0 million in Q1 2024)
• Diluted earnings per share rose to $0.72 (from $0.64)

The company demonstrated strong financial management by reducing total debt by $8.2 million and lowering inventory levels by $8.1 million year-over-year. A strategic decision to wind down production at Crown Boiler in Philadelphia aims to improve manufacturing efficiency. The company maintains a positive outlook, with order flow and backlogs following expected seasonal patterns for 2025.

Positive

• Net sales increased 15.8% to $64.8M in Q1 2025 vs Q1 2024
• Gross profit margin improved to 25.4% from 24.9% year-over-year
• Net income grew to $3.4M from $3.0M in Q1 2024
• Residential product sales up 20.1%, commercial products up 2.6%
• Service and Rentals business sales increased 40.1%
• Total debt reduced by $8.2M compared to Q1 2024
• Inventory levels decreased by $8.1M year-over-year, improving cash flow

Negative

• SG&A expenses increased as percentage of sales to 18.4% from 17.9%
• EBITDA margin declined to 9.3% from 9.9% year-over-year
• Temporary inefficiencies reported at some manufacturing facilities
• Winddown of Crown Boiler production in Philadelphia indicates consolidation costs
• Other expenses increased to $195K from $49K in Q1 2024

LANCASTER, Pa., April 28, 2025 /PRNewswire/ -- Burnham Holdings, Inc. (OTC-Pink: BURCA) ("BHI", the "Company", "we" or "our") today reported its consolidated financial results for the quarter ended March 30, 2025. 

• Net sales were $64.8 million for the first quarter of 2025, an increase of $8.8 million, or 15.8%, versus the first quarter of 2024.
• Gross profit margin was 25.4% and 24.9% for the first quarters of 2025 and 2024, respectively. Operating efficiencies in the Commercial businesses were offset by product mix and temporary inefficiencies at certain of our vertically integrated manufacturing facilities.
• Selling, general, and administrative expenses (SG&A) were flat versus the prior year. SG&A as a percentage of sales in the first quarter of 2025 was 18.4% compared to 17.9% for the first quarter of 2024. Although higher on a percentage basis quarter over quarter, SG&A spend for 2025 was in line with expectations of planned initiative spending.
• Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) was $6.0 million, or 9.3% of net sales, for the first quarter of 2025 versus $5.6 million, or 9.9% of net sales, for the first quarter of 2024.
• Net income for the first quarter of 2025 was $3.4 million compared to $3.0 million in the first quarter of 2024.
• Diluted earnings per share were $0.72 and $0.64 for the first quarters of 2025 and 2024, respectively.

For the first quarter of 2025, net sales of residential products were higher by 20.1% versus 2024, and net sales of commercial products were up 2.6% versus 2024.  Net sales of Service and Rentals businesses were up 40.1% for the first quarter of 2025 versus the first quarter of 2024.  Overall, we continue to believe order flow and our current backlogs are in line with seasonal operating patterns and 2025 is expected to follow the same manner. 

Average debt levels of the Company's revolving credit facility for the first quarter of 2025 were approximately $3.3 million lower than the first quarter of 2024.  On an absolute basis, total debt was down $8.2 million for the first quarter of 2025 versus the first quarter of 2024.  Through rigorous discipline, we are focused on reducing working capital needs in an effort to operate on a leaner basis.  These efforts have led to $8.1 million lower year-over-year inventories which has a direct correlation to debt, as well as improving operating cash flow. We continue to evaluate our working capital needs, including inventory levels, to ensure we can appropriately meet production volumes and fund future growth initiatives.

Earlier this month, we announced the winddown of production efforts at Crown Boiler in Philadelphia, PA.  This strategic decision is expected to drive manufacturing efficiency, improve production flexibility, and support the Company's long-term growth objectives.

Burnham Holdings, Inc.'s 2025 Annual Meeting of Shareholders is being held today virtually via a secure website meeting platform at 11:30 a.m. Eastern Time.  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.

About Burnham Holdings, Inc.: BHI is the parent company of multiple subsidiaries that are leading domestic manufacturers of boilers, furnaces and related HVAC products and accessories for residential, commercial, and industrial applications.  BHI is listed on the OTC Exchange under the ticker symbol "BURCA".  For more information, please visit www.burnhamholdings.com.

Safe Harbor Statement: This Press Release contains forward-looking statements. Other reports, letters, press releases and investor presentations distributed or made available by the Company may also contain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates, and projections, and you should therefore not place undue reliance on them.  Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.  Forward-looking statements involve inherent risks and uncertainties.  We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, variations in weather, changes in the regulatory environment, litigation, customer preferences, general economic conditions, technology, product performance, raw material costs, and increased competition.

Non-GAAP Financial Information: This press release may contain certain non-GAAP financial measures, including, but not limited to, adjusted SG&A, EBITDA, Adjusted EBITDA, Adjusted Net Income and adjusted diluted earnings per share.  These non-GAAP financial measures do not provide investors with an accurate measure of, and should not be used as a substitute for, the comparable financial measures as determined in accordance with accounting principles generally accepted in the United States ("GAAP").  The Company believes these non-GAAP financial measures, when read in conjunction with the comparable GAAP financial measures, give investors a useful tool to assess and understand the Company's overall financial performance, because they exclude items of income or expense that the Company believes are not reflective of its ongoing operating performance, allowing for a better period-to-period comparison of operations of the Company.  The Company acknowledges that there are many items that impact a company's reported results, and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results.  In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.

Burnham Holdings, Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
		Three Months Ended
		March 30,		March 31,
		2025		2024
Net sales		$         64,834		$         56,003
Cost of goods sold		48,334		42,047
Gross profit		16,500		13,956
Selling, general and administrative expenses		11,929		10,022
Investment impairment loss		-		-
Operating income		4,571		3,934
Other (expense) / income:
Non-service related pension credit		50		137
Interest and investment gain (loss)		(6)		110
Interest expense		(239)		(296)
Other expense		(195)		(49)
Income before income taxes		4,376		3,885
Income tax expense		1,005		894
Net income		$           3,371		$           2,991
Earnings per share:
Basic		$             0.72		$             0.65
Diluted		$             0.72		$             0.64
Cash dividends per share		$             0.23		$             0.23

 

Burnham Holdings, Inc.
Consolidated Balance Sheets
(In thousands)
				(Unaudited)				(Unaudited)
				March 30,		December 31,		March 31,
ASSETS				2025		2024		2024
Current Assets
	Cash and cash equivalents			$              6,284		$              6,350		$              5,930
	Trade accounts receivable, net			21,667		28,606		19,188
	Inventories, net			59,171		54,908		67,297
	Costs in excess of billings			203		141		790
	Prepaid expenses and other current assets			2,949		4,426		5,080
		Total Current Assets		90,274		94,431		98,285
Property, plant and equipment, net				71,691		70,144		66,203
Lease assets				5,633		6,005		4,060
Other long-term assets				23,296		23,756		19,063
		Total Assets		$          190,894		$          194,336		$          187,611
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
	Accounts payable & accrued expenses			$            29,312		$            35,509		$            31,046
	Billings in excess of costs			1,304		1,698		218
	Current portion of:
	Long-term liabilities			772		772		1,171
	Lease liabilities			1,312		1,348		1,043
	Long-term debt			184		184		184
		Total Current Liabilities		32,884		39,511		33,662
Long-term debt				23,883		22,273		32,125
Lease liabilities				4,321		4,657		3,017
Other long-term liabilities				4,581		4,823		5,907
Deferred income taxes				9,736		9,793		9,186
Shareholders' Equity
	Preferred Stock			530		530		530
	Class A Common Stock			3,642		3,633		3,633
	Class B Convertible Common Stock			1,302		1,311		1,311
	Additional paid-in capital			10,918		10,799		11,869
	Retained earnings			131,183		128,884		123,217
	Accumulated other comprehensive loss			(21,028)		(20,820)		(24,415)
	Treasury stock, at cost			(11,058)		(11,058)		(12,431)
		Total Shareholders' Equity		115,489		113,279		103,714
		Total Liabilities and Shareholders' Equity		$          190,894		$          194,336		$          187,611

 

Burnham Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
		Three Months Ended
		March 30,		March 31,
		2025		2024
Cash flows from operating activities:
Net income		$              3,371		$              2,991
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization		1,393		1,370
Deferred income taxes		5		17
Provision for long-term employee benefits		(50)		(125)
Share-based compensation expense		119		100
Other reserves and allowances		(2,206)		(1,226)
Changes in current assets and liabilities, net of acquisition:
Decrease in accounts receivable, net		6,920		11,817
Increase in inventories, net		(4,263)		(9,279)
Decrease (increase) in other current assets		726		(3,214)
Decrease in other current liabilities		(3,666)		(3,087)
Net cash provided by (used by) operating activities		2,349		(636)
Cash flows from investing activities:
Capital expenditures		(2,953)		(3,134)
Other investing activities		-		(8)
Net cash used by investing activities		(2,953)		(3,142)
Cash flows from financing activities:
Net proceeds from revolver		1,656		4,939
Repayment of term loan		(46)		(46)
Dividends paid		(1,072)		(1,065)
Net cash provided by financing activities		538		3,828
Net (decrease) increase in cash and cash equivalents		$                  (66)		$                   50
Cash and cash equivalents, beginning of period		$              6,350		$              5,880
Net increase (decrease) in cash and cash equivalents		(66)		50
Cash and cash equivalents, end of period		$              6,284		$              5,930

 

Burnham Holdings, Inc.
Consolidated Statements of Shareholders' Equity
(In thousands)
(Unaudited)
						Class B						Accumulated
				Class A		Convertible		Additional				Other		Treasury
		Preferred		Common		Common		Paid-in		Retained		Comprehensive		Stock,		Shareholders'
		Stock		Stock		Stock		Capital		Earnings		Loss		at Cost		Equity
Balance at December 31, 2023		$        530		$      3,633		$      1,311		$    11,769		$  121,291		$           (24,668)		$   (12,431)		$       101,435
Net income		-		-		-		-		2,991		-		-		2,991
Other comprehensive income,
net of tax		-		-		-		-		-		253		-		253
Cash dividends declared:
Common stock - ($0.23 per share)		-		-		-		-		(1,065)		-		-		(1,065)
Share-based compensation:
Expense recognition		-		-		-		100		-		-		-		100
Balance at March 31, 2024		$        530		$      3,633		$      1,311		$    11,869		$  123,217		$           (24,415)		$   (12,431)		$       103,714
						Class B						Accumulated
				Class A		Convertible		Additional				Other		Treasury
		Preferred		Common		Common		Paid-in		Retained		Comprehensive		Stock,		Shareholders'
		Stock		Stock		Stock		Capital		Earnings		Loss		at Cost		Equity
Balance at December 31, 2024		$        530		$      3,633		$      1,311		$    10,799		$  128,884		$           (20,820)		$   (11,058)		$       113,279
Net income		-		-		-		-		3,371		-		-		3,371
Other comprehensive loss,
net of tax		-		-		-		-		-		(208)		-		(208)
Cash dividends declared:
Common stock - ($0.22 per share)		-		-		-		-		(1,072)		-		-		(1,072)
Share-based compensation:
Expense recognition		-		-		-		119		-		-		-		119
Conversion of common stock		-		9		(9)		-		-		-		-		-
Balance at March 30, 2025		$        530		$      3,642		$      1,302		$    10,918		$  131,183		$           (21,028)		$   (11,058)		$       115,489
The accompanying notes are integral to the consolidated financial statements.

 

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SOURCE Burnham Holdings, Inc.

FAQ

How much did Burnham Holdings (BURCA) sales grow in Q1 2025?

Burnham Holdings' net sales grew by 15.8%, reaching $64.8 million in Q1 2025 compared to Q1 2024, with residential products up 20.1% and commercial products up 2.6%.

What is Burnham Holdings (BURCA) earnings per share for Q1 2025?

Burnham Holdings reported diluted earnings per share of $0.72 for Q1 2025, up from $0.64 in Q1 2024, representing a 12.5% increase.

How much debt did Burnham Holdings (BURCA) reduce in Q1 2025?

Burnham Holdings reduced its total debt by $8.2 million in Q1 2025 compared to Q1 2024, with average debt levels in their revolving credit facility down by $3.3 million.

What is happening to the Crown Boiler facility in Philadelphia?

Burnham Holdings announced the winddown of production at the Crown Boiler facility in Philadelphia, PA, as part of a strategic decision to improve manufacturing efficiency and production flexibility.

How did Burnham Holdings (BURCA) inventory levels change in Q1 2025?

Burnham Holdings reduced inventory levels by $8.1 million year-over-year in Q1 2025, improving operating cash flow and contributing to lower debt levels.