Burnham Holdings Reports Record Earnings and Strong Growth
Burnham Holdings Achieves Record Financial Milestones
Burnham Holdings, Inc. (OTC: BURCA), also known as BHI, has successfully released its impressive financial results for the year, demonstrating a significant increase in net sales, net income, and earnings per share. The company has recalibrated its figures from previous years based on a voluntary change in accounting principles, particularly related to their inventory valuation method. These new adjustments provide a clearer view of the company's robust performance.
Outstanding Growth in Net Sales
In the fourth quarter of 2024, Burnham Holdings reported net sales reaching $94.1 million, showcasing a remarkable increase of $12.5 million or 15.4% compared to the previous year. Throughout the year, the company achieved a total net sales figure of $270.2 million, a jump of $17.2 million or 6.8% from 2023. This achievement eclipses the previous year’s record and sets a new benchmark for future growth.
Profit Margins and Strategic Management
The gross profit margin during the fourth quarters of 2024 and 2023 stood at 24.4% and 26.9%, respectively. The cumulative gross profit margin for the year was recorded at 22.6%. Factors such as product mix shifts and temporary operational inefficiencies accounted for the slight decrease, yet the company proactively manages its operations to bolster efficiency.
Administrative Expenses and Earnings Performance
Burnham Holdings managed to reduce its selling, general, and administrative expenses (SG&A) by $0.6 million in the last quarter, while witnessing a marginal increase of $1.4 million over the entire year. When factoring in reserve adjustments, the SG&A as a percentage of sales significantly improved, dropping to 10.2% in Q4 2024, down from 15.9% in Q4 2023. Additionally, the company’s Adjusted EBITDA rose to $27.6 million, translating to 10.2% of total revenue for 2024, compared to $20.2 million and 8.0% in 2023.
Record Net Income
For 2024, net income soared to a record $12.0 million, an increase from $9.4 million in 2023. Similarly, adjusted net income—excluding certain reserve adjustments—amassed $15.3 million compared to a steady $9.4 million from the previous year. The adjusted diluted earnings per share for 2024 and 2023 respectively reflected $3.23 and $2.02, highlighting a solid earnings progression.
Segment Performance and Future Outlook
Residential product sales increased by 3% compared to 2023, while commercial products surged by 8.8%. The innovative Thermal InMotion service continues to lay the groundwork for Burnham Holdings to penetrate previously uncharted territories in the HVAC market. The results from service and rentals also showed substantial growth, accumulating $8.8 million in 2024 compared to $2.6 million in 2023. The company remains optimistic about aligning order flows and projections in line with seasonal patterns moving into the year ahead.
Financial Management and Capital Returns
Throughout 2024, Burnham Holdings maintained an average debt level of approximately $2.3 million lower than Q4 2023 and $7.8 million lower year over year. This responsibility underscores their focus on careful capital management, ensuring sufficient liquidity for operations and new growth initiatives. During a recent Board meeting, Burnham Holdings declared a quarterly common stock dividend of $0.23, payable with a future record date to reward shareholders and demonstrate confidence in ongoing operational success.
Upcoming Events and Shareholder Engagement
The Annual Meeting of Shareholders is scheduled and will be held virtually, with shareholders receiving notifications via email. This strategy aims to enhance participation in such critical discussions concerning the company’s strategy and future direction.
Frequently Asked Questions
What were Burnham Holdings' key financial achievements in 2024?
Burnham Holdings reported record net sales of $270.2 million, a net income of $12 million, and a significant increase in earnings per share.
How much did Burnham Holdings declare for its quarterly dividend?
The company declared a quarterly common stock dividend of $0.23 per share, payable soon.
What factors contributed to the changes in Burnham's SG&A expenses?
SG&A expenses were impacted by adjustments for litigation reserves, with the management focusing on reducing costs which led to an overall decline in SG&A alongside sales growth.
How did Burnham Holdings manage its debt position in 2024?
The company reduced its average debt by approximately $2.3 million in Q4 2024 compared to the previous year.
What are the projections for Burnham Holdings in 2025?
Management is optimistic about the order flow and backlog being aligned with seasonal patterns, predicting the same operational trends for 2025.
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