Statements in this presentation that are not historical are
forward-looking statements and are subject to change. These
statements are subject to risks and uncertainties that could cause
the Companys actual operating results to differ materially from
those contemplated by the forward-looking statements. Certain
non-GAAP financial measures may also be used. For further
information on risk factors affecting the Companys business, or
reconciliation to appropriate GAAP measures, please refer to our
most recent annual and quarterly reports available on our website
at www.burnhamholdings.com. The company expressly disclaims any
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise. Burnham Holdings, Inc. (BHI) is a holding company
owning multiple, separate subsidiaries that each do business in the
HVAC industry. All products, services and related activities
referred to herein are the products, services and related
activities of the applicable subsidiary, and not of BHI. Cautionary
Statements
Slide 4
Our Vision To be leaders in providing thermal solutions for
residential, commercial, and industrial applications, through
highly efficient, dependable products and services Our Principles
Performance Create shareholder value through industry leadership
and operational excellence Innovation Create customer solutions by
applying advanced technology to create superior products and
services Engagement Committed to the success of our customers,
colleagues and community Integrity We keep our promises
Slide 5
2014 Performance 2014 Financial Highlights: Net Sales increased
5% to $200.4mm Residential Sales up 2.6% Commercial Sales up 13.8%
Continued Strong Gross Profit Margin $48mm, or 24% of Sales Net
income of $8.6mm, or $1.90 per share Dividends of $0.84, 5%
increase over 2013 Year End Debt of $10.5mm, well below 10 yr.
average
Slide 6
Residential Products Commercial BoilersVertical Integration
Boiler Furnace/AC/Heat Pumps Crown Boiler Thermo Products Bryan
Steam Casting Solutions New Yorker Boiler Burnham Commercial
Lancaster Metal Manufacturing US Boiler Thermal Solutions Norwood
Manufacturing Inc. Velocity Boiler Works ABOUT BHI
Slide 7
Growth Opportunities Growth in Both Residential and Commercial
Markets US Residential Boiler Units 2002 - 2014 US Commercial
Boiler Units 2002-2014. Grow Market Share of Cyclical Markets with
Large Installed Base
Slide 8
Growth Opportunities However, Non-Condensing Product Unit
Growth has Been Flat US Residential Non- Condensing Boiler Units
2002 - 2014 US Commercial Non-Condensing Boiler Units 2002-2014.
Understanding Product Segmentation Critical to Success.
Slide 9
Growth Opportunities Strengthen the Base, Broaden the Product
Offering to Capture Market Share in All Product Segments US Market
shift to high efficiency, higher priced condensing units US
Residential Boiler Units 2002 - 2014 US Commercial Boiler Units
2002-2014.
Slide 10
Growth Opportunities 2014 High Efficiency Residential Product
Launches:
Slide 11
Growth Opportunities 2014 High Efficiency Commercial Product
Launches:
Slide 12
Product Development Investment Continued Product Innovation and
Process Improvement is Key to Our Success USB Developing
Sophisticated Product Development Lab in Lancaster
Slide 13
Manufacturing Innovation Seeking Continuous Improvement to
Safety, Quality and Productivity
Slide 14
Employee Engagement Bryan SteamCasting Solutions United Way of
Miami County United Way Fund Miami County Community Foundation Ohio
Cast Metals Associate Sponsor Junior Achievement of Miami County
Falls Township Fire Department Circus City Festival Officer Phil -
Keeping Children Drug Free Miami County YMCA South Zanesville
Police Auxiliary Zanesville Fraternal Order of Police Lancaster
Based Companies Children's Wish Foundation American Cancer Society
Miscellaneous Contributions Compass Mark Fulton Opera House Thermo
Products Hospice of Lancaster Stark County United Way Junior
Achievement of Lancaster/Lebanon Scholarship Foundation Lancaster
City Alliance South Davidson Booster Club Lancaster General Health
Project Junior Achievement Manheim Township Ambulance Davidson
County Rescue Rees Scholarship Foundation Toys for Tots Rohrerstown
Volunteer Fire Co Stevens Trade School United Way of Lancaster
County Schreiber Pediatric Center Aligning Community Engagement
with Employees Passions
Slide 15
Net Sales increased 8% over 2014 Residential Sales up 9%
Commercial Sales up 6% Gross Profit as percent of sales increased
from 19.4% to 19.6% Net lossImprovement of $198k; $649k improvement
if exclude Q1 2014 Pension gain of $451 Fourth Straight Year of
Increased Dividends Q1 2015 Results First Quarter Results 20142015
Net Sales ($mm)$35.7$38.5 Net Income ($000) -$786-$588
EPS-$0.17-$0.13 Dividend/SH$0.21$0.22