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 quarterlycommon 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 2023Net sales $ 94,102 $ 81,576 $ 270,185 $ 252,982Cost of goods sold 71,116 59,610 209,151 193,223Gross profit 22,986 21,966 61,034 59,759Selling, general and administrative expenses 12,415 12,973 44,530 43,137Investment impairment loss – 2,298 – 2,298Operating income 10,571 6,695 16,504 14,324Other (expense) / income:Non-service related pension credit (5) (355) 369 57Interest and investment gain (loss) (20) 605 892 872Interest expense (543) (626) (2,069) (2,733)Other expense (568) (376) (808) (1,804)Income before income taxes 10,003 6,319 15,696 12,520Income tax expense 2,435 1,668 3,744 3,094Net income $ 7,568 $ 4,651 $ 11,952 $ 9,426Earnings per share:Basic $ 1.63 $ 1.01 $ 2.57 $ 2.04Diluted $ 1.60 $ 0.99 $ 2.53 $ 2.02 $ 0.23 $ 0.22 $ 0.92 $ 0.88
Burnham Holdings, Inc.Consolidated Balance SheetsDecember 31, 2024 and 2023(In thousands) (Unaudited)ASSETS 2024 2023Current 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 97,495Property, plant and equipment, net 70,144 64,437Lease assets 6,578 4,119Other long-term assets 23,756 18,620 Total Assets $ 194,909 $ 184,671LIABILITIES AND SHAREHOLDERS' EQUITYCurrent 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 37,908Long-term debt 22,273 27,232Lease liabilities 5,268 3,068Other long-term liabilities 4,823 5,933Deferred income taxes 9,793 9,095Shareholders' 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 FlowsYears ended December 31, 2024 and 2023(In thousands) (Unaudited) 2024 2023Cash flows from operating activities:Net income $ 11,952 $ 9,426Adjustments to reconcile net income to net cash providedby operating activities:Depreciation and amortization 5,445 4,984Investment impairment loss – 2,298Deferred income taxes (451) (161)Provision for long-term employee benefits (434) (22)Share-based compensation expense 474 702Other 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) 1,733Decrease in other current liabilities (523) (870)Net cash provided by operating activities 22,110 21,122Cash 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 6,994Net 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' EquityYears 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 EquityBalance at December 31, 2022 (as restated) $ 530 $ 3,626 $ 1,318 $ 11,928 $ 115,999 $ (27,549) $ (13,292) $ 92,560Net income – – – – 9,426 – – 9,426Other comprehensive income,net of tax – – – – – 2,881 – 2,881Cash dividends declared:Preferred stock – 6% – – – – (18) – – (18)Common stock – ($0.88 per share) – – – – (4,116) – – (4,116)Share-based compensation:Expense recognition – – – 702 – – – 702Issuance 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) $ 101,435Net income – – – – 11,952 – – 11,952Other comprehensive income,net of tax – – – – – 3,848 – 3,848Cash dividends declared:Preferred stock – 6% – – – – (18) – – (18)Common stock – ($0.92 per share) – – – – (4,341) – – (4,341)Share-based compensation:Expense recognition – – – 474 – – – 474Issuance 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 AdjustedSelling, general and administrative expenses $ 12,415 $ (2,841) $ 9,574 $ 44,530 $ (4,377) $ 40,153Net sales $ 94,102 $ – $ 94,102 $ 270,185 $ – $ 270,185SG&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 2023Net sales $ 94,102 $ 81,576 $ 270,185 $ 252,982Net income $ 7,568 $ 4,651 $ 11,952 $ 9,426Exclude:Income tax expense 2,435 1,668 3,744 3,094Interest expense 543 626 2,069 2,733Depreciation and amortization 1,414 1,254 5,445 4,984EBITDA $ 11,960 $ 8,199 $ 23,210 $ 20,237EBITDA as a percent of net sales 12.7% 10.1% 8.6% 8.0%EBITDA $ 11,960 $ 8,199 $ 23,210 $ 20,237Adjustments 2,841 – 4,377 -Adjusted EBITDA $ 14,801 $ 8,199 $ 27,587 $ 20,237Adjusted 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 2023Net income $ 7,568 $ 4,651 $ 11,952 $ 9,426Adjustments, net of tax 2,150 – 3,333 -Adjusted net income $ 9,718 $ 4,651 $ 15,285 $ 9,426Diluted weighted-average shares outstanding 4,732 4,629 4,723 4,659Diluted earnings per share $ 1.60 $ 0.99 $ 2.53 $ 2.02Adjusted diluted earnings per share $ 2.05 $ 0.99 $ 3.23 $ 2.02
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