Badger Meter Reports Fourth Quarter and Full Year 2024 Financial Results
Fourth Quarter 2024 Highlights
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Total sales of
,$205.2 million 13% higher than the prior year’s .$182.4 million -
Operating profit increased
22% year-over-year, with operating profit margins expanding 150 basis points to19.1% from17.6% . -
Diluted earnings per share (EPS) increased
24% to , up from$1.04 in the comparable prior year quarter.$0.84 -
Record cash flow with
in net cash provided by operations, increasing$52.1 million 37% over the prior year.
Full Year 2024 Highlights
-
Record total sales of
,$826.6 million 18% higher than the prior year’s .$703.6 million -
Software sales of over
, increasing approximately$56 million 30% year-over-year. -
Operating profit margins improved 230 basis points over the prior year to
19.1% . -
Diluted EPS increased
35% to a record , up from$4.23 in the prior year.$3.14 -
Record cash flow with
in net cash provided by operations.$155 million - Introduced BlueEdge™, the platform brand aimed at simplifying the Badger Meter suite of scalable solutions for efficient water management.
Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer, stated, “We finished 2024 with yet another quarter of excellent results, including solid performance across a variety of operating metrics with continued strong sales growth, expanding operating profit margins, robust EPS growth and record cash flow from operations. We utilized our strong balance sheet and cash flows to expand on the breadth of our BlueEdge suite of solutions, adding real-time monitoring of water collection systems with the acquisition of SmartCover® Systems (SmartCover) which we announced today. Lastly, I’m grateful for the hard work and commitment of the entire Badger Meter team in supporting our customers and delivering on our strategic growth goals and I want to welcome the employees of SmartCover to the Badger Meter team.”
Fourth Quarter Operating Results
Utility water sales increased
Sales of flow instrumentation products increased
Operating earnings increased a robust
Selling, engineering and administration (SEA) expenses in the fourth quarter of 2024 were
The tax rate for the fourth quarter of 2024 was
Full Year Recap and Outlook
Bockhorst continued, “I’m incredibly proud of our performance in 2024, delivering
“These industry-leading solutions deliver efficiency, resiliency, and sustainability for customers to address the variety of persistent challenges facing the water industry, including the impacts from more frequent and severe flooding on municipalities. The acquisition of SmartCover, with its focus on sewer line and lift station monitoring solutions, aids customers in visualizing and optimally managing their wastewater systems. We will continue to explore opportunities for value-creating acquisitions like SmartCover, to further amplify our growth and generate enhanced returns.
“As we enter 2025, the demand environment for our end-to-end smart water offerings remains resilient. We remain committed to our strategic goals, including delivering high single-digit sales growth rates over the cycle, noting the usual unevenness common in the industry, generating modest year-over-year operating profit margin expansion and achieving free cash flow conversion above
Bockhorst concluded, “In summary, we will continue to execute on the blueprint that has driven our success, namely our relentless focus on customer outcomes, our effective delivery of innovative solutions, and our differentiated operational acumen which we believe collectively results in strong shareholder returns and the protection of the world’s most precious resource.”
Conference Call and Webcast Information
Badger Meter management will hold a conference call to discuss the Company’s fourth quarter and full year 2024 results today, Friday, January 31, 2025 at 10:00 AM Central/11:00 AM Eastern time. The webcast and related presentation can be accessed via the Investor section of the Company’s website. Individuals wishing to participate in the call should use this online registration link: https://www.netroadshow.com/events/login?show=a5367bfa&confId=76111.
Safe Harbor Statement
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 statements. The Company’s results are subject to general economic conditions, variation in demand from customers, continued market acceptance of new products, the successful integration of acquisitions, competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, tax reform and foreign currency risk. See the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission for further information regarding risk factors, which are incorporated herein by reference. Badger Meter disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.
About Badger Meter
With more than a century of water technology innovation, Badger Meter provides comprehensive water management solutions through its BlueEdge™ suite. This tailorable portfolio of smart measurement hardware, reliable communications, data visualization and analytics software and ongoing support and industry expertise give customers the edge in optimizing their operations and contributing to the sustainable use and protection of the world’s most precious resource. For more information, visit www.badgermeter.com.
BADGER METER, INC. |
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CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS |
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(in thousands, except share and earnings per share data) |
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Three Months Ended December 31, |
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Twelve Months Ended December 31, |
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2024 |
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2023 |
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2024 |
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2023 |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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Net sales |
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$ |
205,182 |
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$ |
182,440 |
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$ |
826,558 |
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$ |
703,592 |
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Cost of sales |
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122,422 |
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110,975 |
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497,374 |
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427,154 |
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Gross margin |
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82,760 |
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71,465 |
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329,184 |
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276,438 |
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Selling, engineering and administration |
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43,537 |
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39,386 |
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171,248 |
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158,389 |
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Operating earnings |
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39,223 |
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32,079 |
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157,936 |
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118,049 |
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Interest income, net |
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(2,924 |
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(1,398 |
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(8,613 |
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(4,047 |
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Other pension and postretirement costs |
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12 |
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33 |
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49 |
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130 |
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Earnings before income taxes |
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42,135 |
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33,444 |
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166,500 |
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121,966 |
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Provision for income taxes |
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11,418 |
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8,723 |
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41,558 |
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29,368 |
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Net earnings |
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$ |
30,717 |
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$ |
24,721 |
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$ |
124,942 |
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$ |
92,598 |
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Earnings per share: |
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Basic |
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$ |
1.05 |
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$ |
0.84 |
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$ |
4.26 |
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$ |
3.16 |
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Diluted |
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$ |
1.04 |
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$ |
0.84 |
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$ |
4.23 |
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$ |
3.14 |
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Shares used in computation of earnings per share: |
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Basic |
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29,368,656 |
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29,305,864 |
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29,355,741 |
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29,284,396 |
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Diluted |
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29,559,950 |
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29,471,418 |
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29,533,543 |
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29,455,557 |
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BADGER METER, INC. |
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CONSOLIDATED CONDENSED BALANCE SHEETS |
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(in thousands) |
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Assets |
December 31, |
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December 31, |
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2024 |
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2023 |
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(Unaudited) |
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Cash and cash equivalents |
$ |
295,305 |
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$ |
191,782 |
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Receivables |
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84,325 |
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83,507 |
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Inventories |
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143,408 |
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153,674 |
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Other current assets |
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17,078 |
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13,214 |
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Total current assets |
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540,116 |
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442,177 |
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Net property, plant and equipment |
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74,260 |
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73,878 |
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Intangible assets, at cost less accumulated amortization |
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45,066 |
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53,737 |
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Other long-term assets |
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45,201 |
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33,964 |
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Goodwill |
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111,770 |
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113,163 |
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Total assets |
$ |
816,413 |
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$ |
716,919 |
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Liabilities and Shareholders' Equity |
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Payables |
$ |
55,659 |
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$ |
81,807 |
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Accrued compensation and employee benefits |
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34,912 |
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29,871 |
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Other current liabilities |
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27,634 |
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20,270 |
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Total current liabilities |
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118,205 |
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131,948 |
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Deferred income taxes |
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3,652 |
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5,061 |
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Long-term employee benefits and other |
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88,324 |
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63,428 |
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Shareholders' equity |
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606,232 |
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516,482 |
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Total liabilities and shareholders' equity |
$ |
816,413 |
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$ |
716,919 |
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BADGER METER, INC. |
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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
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(in thousands) |
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Three Months Ended December 31, |
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Twelve Months Ended December 31, |
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2024 |
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2023 |
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2024 |
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2023 |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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Operating activities: |
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Net earnings |
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$ |
30,717 |
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$ |
24,721 |
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$ |
124,942 |
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$ |
92,598 |
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Adjustments to reconcile net earnings to net cash provided by operations: |
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Depreciation |
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2,773 |
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2,837 |
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11,103 |
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10,937 |
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Amortization |
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5,295 |
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4,353 |
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21,082 |
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17,173 |
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Deferred income taxes |
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(11,074 |
) |
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(9,249 |
) |
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(11,074 |
) |
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(9,650 |
) |
Noncurrent employee benefits |
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(141 |
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(64 |
) |
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(153 |
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(338 |
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Stock-based compensation expense |
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1,587 |
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1,225 |
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6,182 |
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5,188 |
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Changes in: |
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Receivables |
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8,370 |
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5,504 |
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(1,444 |
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(6,351 |
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Inventories |
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13,687 |
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(4,839 |
) |
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10,320 |
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(32,467 |
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Payables |
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(6,919 |
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(3,776 |
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(12,161 |
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8,506 |
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Prepaid expenses and other assets |
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(7,540 |
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267 |
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(15,312 |
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(7,012 |
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Other liabilities |
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15,312 |
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16,966 |
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21,549 |
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31,533 |
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Total adjustments |
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21,350 |
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13,224 |
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30,092 |
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17,519 |
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Net cash provided by operations |
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52,067 |
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37,945 |
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155,034 |
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110,117 |
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Investing activities: |
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Property, plant and equipment expenditures |
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(4,669 |
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(2,054 |
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(12,818 |
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(12,003 |
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Acquisitions, net of cash acquired |
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- |
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- |
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(3,000 |
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(17,127 |
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Net cash used for investing activities |
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(4,669 |
) |
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(2,054 |
) |
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(15,818 |
) |
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(29,130 |
) |
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Financing activities: |
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Dividends paid |
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(9,985 |
) |
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(7,918 |
) |
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(35,847 |
) |
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(29,052 |
) |
Proceeds from exercise of stock options |
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- |
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- |
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|
751 |
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|
967 |
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Net cash used for financing activities |
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(9,985 |
) |
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(7,918 |
) |
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(35,096 |
) |
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(28,085 |
) |
Effect of foreign exchange rates on cash |
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(1,063 |
) |
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|
899 |
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(597 |
) |
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|
828 |
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Increase in cash and cash equivalents |
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36,350 |
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28,872 |
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|
103,523 |
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|
53,730 |
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Cash and cash equivalents - beginning of period |
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|
258,955 |
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|
162,910 |
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|
191,782 |
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|
138,052 |
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Cash and cash equivalents - end of period |
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$ |
295,305 |
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$ |
191,782 |
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$ |
295,305 |
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$ |
191,782 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250131987609/en/
Karen Bauer
(414) 371-7276
kbauer@badgermeter.com
Source: Badger Meter, Inc.