Business Wire 17-Apr-2018 4:13 PM
First Quarter 2018 Highlights
"Our first quarter net sales were a record for any quarter, helped by increased BEACON® Advanced Metering Analytics (AMA) revenue and the recent D-Flow® and Carolina Meter acquisitions," said Richard A. Meeusen, chairman, president and chief executive officer of Badger Meter. In addition, this was another strong quarter for flow instrumentation product sales, despite the planned shutdown of our Scottsdale, Arizona location and transition of those operations to our Racine, Wisconsin facility," added Meeusen.
However, domestic municipal water meter sales were flat, caused in part by a delay in several expected orders due to poor weather conditions in a number of our key markets. We expect these delayed orders to be shipped in the second and third quarters. Continued growth in international sales helped offset the slow start in the domestic market, including a sizable municipal water order received from the Middle East. In addition, price increases on many products took effect at the beginning of the year and will be fully realized over the next several quarters.
As a result of the lower volumes' impact on capacity utilization costs, higher brass expenses and the Scottsdale shutdown costs, gross profit margin was 35.0%, down from 38.0% in the first quarter of 2017. Selling, engineering and administration costs were up 6.7% compared to the prior year period, largely due to inclusion of expenses from the two acquisitions made after the first quarter of 2017. As anticipated, the company benefitted from a lower effective corporate tax rate.
"Despite the lower first quarter results, we remain optimistic about 2018, especially given the strength of our E-Series ultrasonic water meters and the ORION Cellular endpoint radios, the positive sales momentum going into the second quarter and the residual benefits we expect to see from our price increases," added Meeusen.
Conference Call and Webcast
Badger Meter management will hold a conference call to discuss the company's first quarter results on Wednesday, April 18, 2018, at 10:00 AM Central/11:00 AM Eastern time.
Interested parties can listen to the call live on the Internet through the company's website: www.badgermeter.com or by dialing 1-844-281-9843 and entering the passcode 6482009. Listeners should dial in to the call at least 5-10 minutes prior to the start of the call or should go to the website at least 15 minutes prior to the call to download and install any necessary audio software.
A telephone replay of the conference call will be available through Wednesday, April 25, 2018, by dialing 1-855-859-2056 and entering the passcode 6482009. The webcast will be archived on the company's website until its next earnings release.
About Badger Meter
Badger Meter is an innovator in flow measurement, control and communications solutions, serving water utilities, municipalities, and commercial and industrial customers worldwide. The Company's products measure water, oil, chemicals, and other fluids, and are known for accuracy, long-lasting durability and for providing valuable and timely measurement data. For more information, visit www.badgermeter.com.
Certain statements contained in this news release, as well as other information provided from time to time by Badger Meter, Inc. (the "Company") or its employees, may contain forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. The words "anticipate," "believe," "estimate," "expect," "think," "should," "could" and "objective" or similar expressions are intended to identify forward looking statements. All such forward looking statements are based on the Company's then current views and assumptions and involve risks and uncertainties. Some risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward looking statements include those described in Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2017 that include, among other things:
All of these factors are beyond the Company's control to varying degrees. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward looking statements contained in this news release and are cautioned not to place undue reliance on such forward looking statements. The forward looking statements made in this document are made only as of the date of this document and the Company assumes no obligation, and disclaims any obligation, to update any such forward looking statements to reflect subsequent events or circumstances.
Badger Meter company news is available 24 hours a day, on-line at: http://www.badgermeter.com.
|BADGER METER, INC.|
|CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS|
|(in thousands, except share and earnings per share data)|
|Three Months Ended|
|March 31,||March 31,|
|Cost of sales||68,293||62,956|
|Selling, engineering and administration||26,774||25,085|
|Interest expense, net||290||178|
|Other pension benefits (costs)||(19)||96|
|Earnings before income taxes||9,703||13,291|
|Provision for income taxes||2,157||4,542|
|Earnings per share:|
|Shares used in computation of earnings per share:|
|BADGER METER, INC.|
|CONSOLIDATED CONDENSED BALANCE SHEETS|
|March 31,||December 31,|
|Other current assets||4,728||4,077|
|Total current assets||166,760||158,623|
|Net property, plant and equipment||93,533||93,601|
|Intangible assets, at cost less accumulated amortization||57,468||59,326|
|Other long-term assets||10,081||12,753|
Liabilities and Shareholders' Equity
|Accrued compensation and employee benefits||9,375||15,509|
|Total current liabilities||88,550||93,109|
|Deferred income taxes||1,546||3,434|
|Long-term employee benefits and other||24,448||17,732|
|Total liabilities and shareholders' equity||$||395,266||$||391,727|
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