Strategic Portfolio Adjustments Drive Strong Growth and Enhanced Focus for Long-Term Value Creation
Burnham Holdings, Inc. (OTC-Pink: BURCA) (“BHI”, the “Company”, “we” or “our”) today reported its consolidated financial results for the second quarter of 2025, demonstrating robust growth driven by strategic portfolio adjustments aimed at strengthening its core boiler business and expanding high-growth commercial and industrial service offerings. The financial statement presentation has been adjusted to reflect the previously announced divestiture of its subsidiaries Thermo Pride, LLC (TP) and Norwood Manufacturing, Inc. (NMI) as discontinued operations.
— Strong Top-Line Growth: Net sales for the second quarter of 2025 reached $53.0 million, an 8.5% increase ($4.1 million) over the second quarter of 2024. Year-to-date net sales climbed to $108.7 million, up from $97.7 million in the first half of 2024.
— Solid Gross Profit Margins: The Company maintained strong gross profit margins of 21.6% in the second quarter of 2025, reflecting operational efficiencies in the Commercial businesses.
— Strategic SG&A Investment: Selling, general, and administrative expenses (SG&A) increased by 18.3% in the second quarter and 18.2% in the first half of 2025, aligning with planned initiative spending to support long-term growth.
— Enhanced Profitability Metrics: Adjusted EBITDA for the first half of 2025 reached $9.0 million (7.5% of net sales), an increase from $8.5 million in the first half of 2024. Adjusted net income for Q2 2025 rose to $1.1 million (vs. $0.8 million prior year), with first-half adjusted net income at $4.5 million (vs. $3.8 million). These adjusted figures exclude the gain from the sale of TP and NMI, as well as impairment losses from the previously announced wind down of production activities at Crown Boiler.
— Increased Shareholder Value: Adjusted diluted earnings per share for the second quarter of 2025 improved to $0.23, up from $0.18 in 2024. Year-to-date adjusted diluted earnings per share were $0.95, compared to $0.81 for the first half of 2024.
“Burnham Holdings' second quarter results reflect not only strong operational performance across our continuing businesses, but also the positive impact of critical strategic decisions made to sharpen our focus and enhance financial flexibility,” statedChris Drew, President and CEO of Burnham Holdings.”Our strategic portfolio adjustments, including the divestiture of Thermo Pride and Norwood Manufacturing and the wind down of Crown Boiler operations, are pivotal steps in our unified strategy to build an even more agile, focused, and financially robust company, ultimately creating enhanced long-term value for our shareholders. These decisive actions underscore our commitment to optimizing performance and seizing future growth opportunities.”
As previously announced on April 7, 2025, BHI initiated a plan to strategically wind down operations at Crown Boiler. This forward-looking decision is integral to driving manufacturing efficiency, improving production flexibility, and directly supports the Company's long-term growth objectives. This further enables BHI and its subsidiaries to enhance product integration, streamline operations, and standardize offerings across its portfolio. While this strategic realignment involved recorded impairment charges totaling $3.1 million in the second quarter, it was a necessary step to optimize BHI's operational footprint and focus resources towards its most promising growth avenues. These charges included $1.5 million of goodwill relating to the acquisition of Crown in 2003, $0.2 million of accelerated depreciation and $1.4 million of inventory reserves.
Building on this strategic momentum, BHI also substantially divested all of the assets of TP and NMI, as announced on May 5, 2025. This significant transaction aligns with the holding company's long-term vision to strengthen its core boiler business while expanding its commercial and industrial rental and service operations. The transaction successfully closed for $27.3 million, yielding net cash proceeds of $23.7 million after accounting for customary adjustments and transaction expenses. A book gain of $8.1 million ($6.2 million net of tax) was realized in the second quarter. Importantly, the proceeds were applied to outstanding debt on our revolving credit facility, which significantly drove down total debt and resulted in a substantial year-over-year decrease in interest expense. Through rigorous discipline around working capital management, average debt levels continue to sharply decrease on a year-over-year basis. 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.
These key strategic actions – the divestiture of TP and NMI, along with planned wind down of manufacturing operations at Crown Boiler – underscores BHI's commitment to its core boiler operations. The company's strategic longer-term focus remains firmly on growing and developing its commercial and industrial boiler service and installation business, including expansion of its mobile boiler room offerings. The enhanced debt capacity resulting from these initiatives provides valuable flexibility, allowing BHI to pursue alternative funding avenues in support of its strategic growth goals.
Further demonstrating our commitment to shareholder returns, the Burnham Holdings, Inc. Board of Directors, at its meeting on July 24, 2025, declared a quarterly common stock dividend of $0.23 per share. This dividend is payable on September 25, 2025, to shareholders of record as of September 18, 2025.
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 Six Months Ended June 29, June 30, June 29, June 30, 2025 2024 2025 2024Net sales $ 52,971 $ 48,840 $ 108,708 $ 97,746Cost of goods sold 41,519 38,541 83,622 75,102Gross profit 11,452 10,299 25,086 22,644Selling, general and administrative expenses 10,755 9,090 20,908 17,688Impairment loss 3,137 – 3,137 -Operating (loss) income (2,440) 1,209 1,041 4,956Other (expense) / income:Non-service related pension credit 50 113 100 250Interest and investment gain 498 379 492 489Interest expense (105) (533) (344) (829)Other income (expense) 443 (41) 248 (90)(Loss) income from continuing operations before income tax (1,997) 1,168 1,289 4,866Income tax (benefit) expense (459) 268 295 1,119(Loss) income from continuing operations (1,538) 900 994 3,747Income (loss) from discontinued operations, net of tax 227 (59) 1,066 85Gain on sale of discontinued operations, net of tax 6,227 – 6,227 -Income (loss) from discontinued operations, net of tax 6,454 (59) 7,293 85Net income $ 4,916 $ 841 $ 8,287 $ 3,832Earnings per share (EPS):Basic(Loss) income from continuing operations $ (0.33) $ 0.19 $ 0.21 $ 0.81Income (loss) from discontinued operations 1.38 (0.01) 1.56 0.01Basic EPS $ 1.05 $ 0.18 $ 1.77 $ 0.82Diluted(Loss) income from continuing operations $ (0.33) $ 0.19 $ 0.21 $ 0.80Income (loss) from discontinued operations 1.37 (0.01) 1.55 0.01Diluted EPS $ 1.04 $ 0.18 $ 1.76 $ 0.81Cash dividends per share $ 0.23 $ 0.23 $ 0.46 $ 0.46
Burnham Holdings, Inc.Consolidated Balance Sheets(In thousands) (Unaudited) (Unaudited) June 29, December 31, June 30,ASSETS 2025 2024 2024Current Assets Cash and cash equivalents $ 7,032 $ 6,329 $ 6,497 Trade accounts receivable, net 21,371 23,858 20,764 Inventories, net 54,126 46,962 60,777 Costs in Excess of Billings 202 141 1,227 Prepaid expenses and other current assets 3,210 4,394 5,120 Current assets of discontinued operations – 12,747 14,119 Total Current Assets 85,941 94,431 108,504 Property, plant and equipment, net 69,049 65,972 65,122Lease assets 5,851 6,005 3,980Other long-term assets 20,455 22,261 17,396Long-term assets of discontinued operations – 5,667 5,901 Total Assets $ 181,296 $ 194,336 $ 200,903 LIABILITIES AND SHAREHOLDERS' EQUITYCurrent Liabilities Accounts payable & accrued expenses $ 31,761 $ 32,264 $ 29,106 Billings in excess of costs 803 1,698 659 Current liabilities of discontinued operations – 3,245 2,160 Current portion of: Long-term liabilities 772 772 1,171 Lease liabilities 1,398 1,348 989 Long-term debt 184 184 184 Total Current Liabilities 34,918 39,511 34,269 Long-term debt 8,955 22,273 45,454Lease liabilities 4,453 4,657 2,991Other long-term liabilities 4,210 4,823 5,599Deferred income taxes 9,668 9,352 8,506Long-term liabilities of discontinued operations – 441 668Shareholders' 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 9,685 10,799 10,525 Retained earnings 134,943 128,884 122,917 Accumulated other comprehensive loss (21,237) (20,820) (24,442) Treasury stock, at cost (9,773) (11,058) (11,058) Total Shareholders' Equity 119,092 113,279 103,416 Total Liabilities and Shareholders' Equity $ 181,296 $ 194,336 $ 200,903
Burnham Holdings, Inc.Consolidated Statements of Cash Flows(In thousands)(Unaudited) Six Months Ended June 29, June 30, 2025 2024Cash flows from operating activities:Net income $ 8,287 $ 3,832Income from discontinued operations, net of tax 7,293 85Income from continuing operations $ 994 $ 3,747Adjustments to reconcile income from continuing operationsto net cash provided by operating activities:Depreciation and amortization 2,472 2,462Impairment loss 3,137 -Deferred income taxes 28 12Provision for long-term employee benefits (156) (250)Share-based compensation expense 279 200Other reserves and allowances (1,445) 232Changes in current assets and liabilities:Decrease in accounts receivable, net 2,460 6,231Increase in inventories, net (8,613) (12,838)Decrease (increase) in other current assets 1,006 (2,899)Decrease in accounts payable and accrued expenses (1,761) (4,626)Net cash used by operating activities of continuing operations (1,599) (7,729)Net cash (used) provided by operating activities of discontinued operations (9) 228Net cash used by operating activities (1,608) (7,501)Cash flows from investing activities:Capital expenditures (5,729) (7,567)Proceeds from sale of discontinued operations 23,687 -Other investing activities – (8)Net cash provided (used) by investing activities of continuing operations 17,958 (7,575)Net cash provided (used) by investing activities of discontinued operations 7 (229)Net cash provided (used) by investing activities 17,965 (7,804)Cash flows from financing activities:Net activity from revolving credit facility (13,226) 18,314Repayment of term loan (92) (92)Proceeds from share-based compensation activity – -Share-based compensation activity (108) (71)Dividends paid (2,228) (2,206)Net cash (used) provided by financing activities (15,654) 15,945Net increase in cash and cash equivalents $ 703 $ 640Cash and cash equivalents, beginning of period $ 6,329 $ 5,857Net increase in cash and cash equivalents 703 640Cash and cash equivalents, end of period $ 7,032 $ 6,497
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 EquityBalance at December 31, 2023 $ 530 $ 3,633 $ 1,311 $ 11,769 $ 121,291 $ (24,668) $ (12,431) $ 101,435Net income – – – – 2,991 – – 2,991Other comprehensive income,net of tax – – – – – 253 – 253Cash dividends declared:Common stock – ($0.23 per share) – – – – (1,065) – – (1,065)Share-based compensation:Expense recognition – – – 100 – – – 100Balance at March 31, 2024 $ 530 $ 3,633 $ 1,311 $ 11,869 $ 123,217 $ (24,415) $ (12,431) $ 103,714Net income – – – – 841 – – 841Other comprehensive loss,net of tax – – – – – (27) – (27)Cash dividends declared:Preferred stock – 6% – – – – (9) – – (9)Common stock – ($0.23 per share) – – – – (1,132) – – (1,132)Share-based compensation:Expense recognition – – – 100 – – – 100Issuance of vested shares – – – (1,444) – – 1,373 (71)Balance at June 30, 2024 $ 530 $ 3,633 $ 1,311 $ 10,525 $ 122,917 $ (24,442) $ (11,058) $ 103,416 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, 2024 $ 530 $ 3,633 $ 1,311 $ 10,799 $ 128,884 $ (20,820) $ (11,058) $ 113,279Net income – – – – 3,371 – – 3,371Other 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 – – – 119Conversion of common stock – 9 (9) – – – – -Balance at March 30, 2025 $ 530 $ 3,642 $ 1,302 $ 10,918 $ 131,183 $ (21,028) $ (11,058) $ 115,489Net income – – – – 4,916 – – 4,916Other comprehensive loss,net of tax – – – – – (209) – (209)Cash dividends declared:Preferred stock – 6% – – – – (9) – – (9)Common stock – ($0.22 per share) – – – – (1,147) – – (1,147)Share-based compensation:Expense recognition – – – 160 – – – 160Issuance of vested shares – – – (1,393) – – 1,285 (108)Balance at June 29, 2025 $ 530 $ 3,642 $ 1,302 $ 9,685 $ 134,943 $ (21,237) $ (9,773) $ 119,092
Burnham Holdings, Inc.Non-GAAP Reconciliation(In thousands, except per share amounts)(Unaudited) Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2025 2024 2025 2024Net sales of continuing operations $ 52,971 $ 48,840 $ 108,708 $ 97,746Net sales of discontinued operations 2,420 6,551 11,518 13,648Total net sales $ 55,391 $ 55,391 $ 120,226 $ 111,394Net income $ 4,916 $ 841 $ 8,287 $ 3,832Exclude:Income tax expense 1,469 250 2,474 1,144Interest expense 105 533 344 829Depreciation and amortization 1,433 1,339 2,826 2,709EBITDA $ 7,923 $ 2,963 $ 13,931 $ 8,514EBITDA as a percent of net sales 14.3% 5.3% 11.6% 7.6%EBITDA $ 7,923 $ 2,963 $ 13,931 $ 8,514Adjustments:Gain on sale of discontinued operation (8,087) – (8,087) -Impairment loss 3,137 – 3,137 -Adjusted EBITDA $ 2,973 $ 2,963 $ 8,981 $ 8,514Adjusted EBITDA as a percent of net sales 5.4% 5.3% 7.5% 7.6% Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, 2025 2024 2025 2024Net income $ 4,916 $ 841 $ 8,287 $ 3,832Adjustments, net of tax (3,811) – (3,811) -Adjusted net income $ 1,105 $ 841 $ 4,476 $ 3,832Diluted weighted-average shares outstanding 4,720 4,714 4,705 4,701Diluted earnings per share $ 1.04 $ 0.18 $ 1.76 $ 0.81Adjusted diluted earnings per share $ 0.23 $ 0.18 $ 0.95 $ 0.81
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