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

LANCASTER, Pa., Feb. 20, 2025 /PRNewswire/ — Burnham Holdings, Inc. (OTC: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.

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