Burnham Holdings, Inc. Announces Record 2024 Financial Results and Declares Dividend

Rhea-AI Summary

Burnham Holdings (BURCA) reported record financial results for Q4 and full-year 2024. Net sales reached $94.1 million in Q4 2024, up 15.4% year-over-year, while full-year sales hit $270.2 million, increasing 6.8% from 2023.

The company achieved record net income of $12.0 million in 2024, compared to $9.4 million in 2023. Adjusted net income, excluding reserve adjustments, was $15.3 million. Adjusted EBITDA improved to $27.6 million (10.2% margin) from $20.2 million (8.0% margin) in 2023.

Residential product sales grew 3.0% and commercial products increased 8.8% in 2024. The service and rentals business contributed $8.8 million, up from $2.6 million in 2023. The Board declared a quarterly dividend of $0.23 per share, payable March 27, 2025.

Positive

• Record net sales of $270.2 million, up 6.8% YoY
• Record net income of $12.0 million, up from $9.4 million in 2023
• Adjusted EBITDA increased to $27.6 million from $20.2 million
• Service and rentals revenue grew to $8.8 million from $2.6 million
• Average debt levels decreased by $7.8 million year-over-year

Negative

• Gross profit margin declined to 22.6% from 23.6% in 2023
• Unplanned downtime caused temporary inefficiencies
• SG&A expenses increased by $1.4 million for full-year 2024

LANCASTER, Pa., Feb. 20, 2025 /PRNewswire/ -- Burnham Holdings, Inc. (OTC-Pink: BURCA) ("BHI", the "Company", "we" or "our") today reported its consolidated financial results for the fourth quarter and full year of 2024, setting new all-time highs in net sales, net income and earnings per share.  Where noted, prior periods presented have been restated for a voluntary change in accounting principle related to our last-in, first-out (LIFO) inventory valuation as disclosed in our 2023 Annual Report. 

• Net sales were $94.1 million for the fourth quarter of 2024, an increase of $12.5 million, or 15.4%, versus the fourth quarter of 2023. Year to date net sales were $270.2 million, an increase of $17.2 million, or 6.8%, versus 2023. The net sales figure for 2024 eclipses last year's previous record high net sales number.
• Gross profit margin was 24.4% and 26.9% for the fourth quarters of 2024 and 2023, respectively. Year to date gross profit margins were 22.6% for 2024 versus 23.6% for 2023. Product mix and temporary inefficiencies from unplanned downtime adversely impacted both fourth quarter and full year 2024 gross profit margins.
• Selling, general, and administrative expenses (SG&A) were lower by $0.6 million and higher by $1.4 million for the fourth quarter 2024 and the full year 2024, respectively, versus the same periods last year. Included within SG&A expenses were adjustments to reserves related to uninsured litigation settlements and fees. Excluding these impacts, adjusted SG&A as a percentage of sales in the fourth quarter of 2024 was 10.2% compared to 15.9% for the fourth quarter of 2023.
• Adjusted EBITDA was $27.6 million, or 10.2%, for the year ended 2024 versus $20.2 million, or 8.0%, for the year ended 2023. Adjusted EBITDA excludes the impact of the reserve adjustments noted above.
• Net income for 2024 was $12.0 million, a new consolidated record, compared to $9.4 million in 2023. Adjusted net income, excluding reserve adjustments, for 2024 was $15.3 million versus net income of $9.4 million for 2023.
• Adjusted diluted earnings per share for 2024 and 2023 were $3.23 and $2.02, respectively. Adjusted diluted earnings per share excludes $0.70 per share related to the reserve adjustments noted above for 2024.

For 2024, sales of residential products were higher by 3.0% versus 2023, while sales of commercial products were up 8.8% in 2024 versus 2023.  Thermal InMotion continues to expand BHI's capabilities into previously unserved segments of the HVAC industry, and we are pleased with the results.  The service and rentals businesses contributed $8.8 million in 2024 compared to $2.6 million in 2023.  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 fourth quarter of 2024 were approximately $2.3 million lower than the fourth quarter of 2023.  On a year over year basis, the average debt levels on the revolving credit facility were approximately $7.8 million lower.  We continue to evaluate our working capital needs, including inventory levels, to ensure we can appropriately meet production volumes and fund future growth initiatives.

At its meeting on February 20, 2025, Burnham Holdings, Inc.'s Board of Directors declared a quarterly common stock dividend of $0.23 per share payable March 27, 2025, with a record date of March 20, 2025.  Additionally, the Board of Directors amended the bylaws to confirm the ability to provide notice to shareholders and/or directors via electronic mail.

Burnham Holdings, Inc.'s Annual Meeting, with a shareholder record date of March 3, 2025, will be held virtually via a secure website meeting platform on Monday, April 28, 2025, beginning at 11:30 a.m. eastern.

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.

Non-GAAP Financial Information: This press release contains certain non-GAAP financial measures, including 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)				(Unaudited)
		Three Months Ended				Year Ended
		December 31,		December 31,		December 31,		December 31,
		2024		2023		2024		2023
Net sales		$        94,102		$        81,576		$      270,185		$      252,982
Cost of goods sold		71,116		59,610		209,151		193,223
Gross profit		22,986		21,966		61,034		59,759
Selling, general and administrative expenses		12,415		12,973		44,530		43,137
Investment impairment loss		-		2,298		-		2,298
Operating income		10,571		6,695		16,504		14,324
Other (expense) / income:
Non-service related pension credit		(5)		(355)		369		57
Interest and investment gain (loss)		(20)		605		892		872
Interest expense		(543)		(626)		(2,069)		(2,733)
Other expense		(568)		(376)		(808)		(1,804)
Income before income taxes		10,003		6,319		15,696		12,520
Income tax expense		2,435		1,668		3,744		3,094
Net income		$          7,568		$          4,651		$        11,952		$          9,426
Earnings per share:
Basic		$            1.63		$            1.01		$            2.57		$            2.04
Diluted		$            1.60		$            0.99		$            2.53		$            2.02
		$            0.23		$            0.22		$            0.92		$            0.88

 

Burnham Holdings, Inc. Consolidated Balance Sheets December 31, 2024 and 2023 (In thousands)
				(Unaudited)
ASSETS				2024		2023
Current Assets
	Cash and cash equivalents			$             6,350		$             5,880
	Trade accounts receivable, net			28,606		31,023
	Inventories, net			54,908		58,017
	Costs in Excess of Billings			141		621
	Prepaid expenses and other current assets			4,426		1,954
		Total Current Assets		94,431		97,495
Property, plant and equipment, net				70,144		64,437
Lease assets				6,578		4,119
Other long-term assets				23,756		18,620
		Total Assets		$         194,909		$         184,671
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
	Accounts payable & accrued expenses			$           35,509		$           35,365
	Billings in excess of costs			1,698		137
	Current portion of:
	Long-term liabilities			772		1,171
	Lease liabilities			1,310		1,051
	Long-term debt			184		184
		Total Current Liabilities		39,473		37,908
Long-term debt				22,273		27,232
Lease liabilities				5,268		3,068
Other long-term liabilities				4,823		5,933
Deferred income taxes				9,793		9,095
Shareholders' Equity
	Preferred Stock			530		530
	Class A Common Stock			3,633		3,633
	Class B Convertible Common Stock			1,311		1,311
	Additional paid-in capital			10,799		11,769
	Retained earnings			128,884		121,291
	Accumulated other comprehensive loss			(20,820)		(24,668)
	Treasury stock, at cost			(11,058)		(12,431)
		Total Shareholders' Equity		113,279		101,435
		Total Liabilities and Shareholders' Equity		$         194,909		$         184,671

 

Burnham Holdings, Inc. Consolidated Statements of Cash Flows Years ended December 31, 2024 and 2023 (In thousands)
		(Unaudited)
		2024		2023
Cash flows from operating activities:
Net income		$           11,952		$             9,426
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization		5,445		4,984
Investment impairment loss		-		2,298
Deferred income taxes		(451)		(161)
Provision for long-term employee benefits		(434)		(22)
Share-based compensation expense		474		702
Other reserves and allowances		1,758		(64)
Changes in current assets and liabilities, net of acquisition:
Decrease (increase) in accounts receivable, net		2,393		(695)
Decrease in inventories, net		3,109		3,791
(Increase) decrease in other current assets		(1,613)		1,733
Decrease in other current liabilities		(523)		(870)
Net cash provided by operating activities		22,110		21,122
Cash flows from investing activities:
Capital expenditures		(11,152)		(9,370)
Investment in EnviroPower		-		(141)
Purchase of CSI		(1,100)		(2,277)
Other investing activities		-		(9)
Net cash used by investing activities		(12,252)		(11,797)
Cash flows from financing activities:
Net proceeds from revolver		(4,774)		(6,305)
Repayment of term loan		(184)		-
Share-based compensation activity		(71)		-
Dividends paid		(4,359)		(4,134)
Net cash used by financing activities		(9,388)		(10,439)
Net increase (decrease) in cash and cash equivalents		$                470		$            (1,114)
Cash and cash equivalents, beginning of period		5,880		6,994
Net increase (decrease) in cash and cash equivalents		470		(1,114)
Cash and cash equivalents, end of period		$             6,350		$             5,880

 

Burnham Holdings, Inc. Consolidated Statements of Shareholders' Equity Years ended December 31, 2024 and 2023 (In thousands except per share amounts)
						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, 2022 (as restated)		$       530		$      3,626		$      1,318		$   11,928		$  115,999		$           (27,549)		$  (13,292)		$        92,560
Net income		-		-		-		-		9,426		-		-		9,426
Other comprehensive income,
net of tax		-		-		-		-		-		2,881		-		2,881
Cash dividends declared:
Preferred stock - 6%		-		-		-		-		(18)		-		-		(18)
Common stock - ($0.88 per share)		-		-		-		-		(4,116)		-		-		(4,116)
Share-based compensation:
Expense recognition		-		-		-		702		-		-		-		702
Issuance of vested shares		-		-		-		(861)		-		-		861		-
Conversion of common stock		-		7		(7)		-		-		-		-		-
Balance at December 31, 2023		$       530		$      3,633		$      1,311		$   11,769		$  121,291		$           (24,668)		$  (12,431)		$      101,435
Net income		-		-		-		-		11,952		-		-		11,952
Other comprehensive income,
net of tax		-		-		-		-		-		3,848		-		3,848
Cash dividends declared:
Preferred stock - 6%		-		-		-		-		(18)		-		-		(18)
Common stock - ($0.92 per share)		-		-		-		-		(4,341)		-		-		(4,341)
Share-based compensation:
Expense recognition		-		-		-		474		-		-		-		474
Issuance of vested shares		-		-		-		(1,444)		-		-		1,373		(71)
Balance at December 31, 2024 (Unaudited)		$       530		$      3,633		$      1,311		$   10,799		$  128,884		$           (20,820)		$  (11,058)		$      113,279

 

Burnham Holdings, Inc. Non-GAAP Reconciliations (In thousands, except per share amounts) (Unaudited)
		Three Months Ended,						Year Ended
		December 31, 2024						December 31, 2024
		GAAP		Adjustments		Adjusted		GAAP		Adjustments		Adjusted
Selling, general and administrative expenses		$        12,415		$        (2,841)		$          9,574		$        44,530		$        (4,377)		$        40,153
Net sales		$        94,102		$                  -		$        94,102		$      270,185		$                  -		$      270,185
SG&A as percent of sales		13.2 %				10.2 %		16.5 %				14.9 %

 

		Three Months Ended				Year Ended
		December 31,		December 31,		December 31,		December 31,
		2024		2023		2024		2023
Net sales		$        94,102		$        81,576		$      270,185		$      252,982
Net income		$          7,568		$          4,651		$        11,952		$          9,426
Exclude:
Income tax expense		2,435		1,668		3,744		3,094
Interest expense		543		626		2,069		2,733
Depreciation and amortization		1,414		1,254		5,445		4,984
EBITDA		$        11,960		$          8,199		$        23,210		$        20,237
EBITDA as a percent of net sales		12.7 %		10.1 %		8.6 %		8.0 %
EBITDA		$        11,960		$          8,199		$        23,210		$        20,237
Adjustments		2,841		-		4,377		-
Adjusted EBITDA		$        14,801		$          8,199		$        27,587		$        20,237
Adjusted EBITDA as a percent of net sales		15.7 %		10.1 %		10.2 %		8.0 %

 

		Three Months Ended				Year Ended
		December 31,		December 31,		December 31,		December 31,
		2024		2023		2024		2023
Net income		$          7,568		$          4,651		$        11,952		$          9,426
Adjustments, net of tax		2,150		-		3,333		-
Adjusted net income		$          9,718		$          4,651		$        15,285		$          9,426
Diluted weighted-average shares outstanding		4,732		4,629		4,723		4,659
Diluted earnings per share		$            1.60		$            0.99		$            2.53		$            2.02
Adjusted diluted earnings per share		$            2.05		$            0.99		$            3.23		$            2.02

 

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SOURCE Burnham Holdings, Inc.

FAQ

What were Burnham Holdings (BURCA) record-breaking financial results in 2024?

BURCA achieved record net sales of $270.2 million, record net income of $12.0 million, and adjusted earnings per share of $3.23 in 2024.

How much did BURCA's service and rentals business grow in 2024?

The service and rentals business grew significantly, contributing $8.8 million in 2024 compared to $2.6 million in 2023.

What dividend did Burnham Holdings declare for Q1 2025?

The Board declared a quarterly dividend of $0.23 per share, payable March 27, 2025, with a record date of March 20, 2025.

How did BURCA's commercial and residential sales perform in 2024?

Residential product sales increased by 3.0% while commercial product sales grew by 8.8% compared to 2023.

What was BURCA's adjusted EBITDA margin in 2024?

The adjusted EBITDA margin improved to 10.2% ($27.6 million) in 2024, up from 8.0% ($20.2 million) in 2023.