Badger Meter Reports Record Second Quarter 2023 Financial Results
- Record sales performance with a 28% increase in total sales from the prior year
- Operating profit increased by 34% year-over-year
- Diluted EPS increased by 33% to $0.76
- Robust demand environment with a book to bill ratio greater than one
- Release of 2022 Sustainability Report highlighting strong ESG and financial performance
- None.
Second Quarter 2023 Highlights
-
Total sales of
$175.9 million 28% higher than the prior year’s$137.8 million -
Operating profit increased
34% year-over-year, with operating profit margins expanding 80 basis points to16.8% from16.0% . -
Diluted earnings per share (EPS) increased
33% to$0.76 $0.57 - Robust demand environment continued with book to bill ratio greater than one.
- Released 2022 Sustainability Report illustrating powerful combination of strong ESG and financial performance.
“As our record second quarter results demonstrate, Badger Meter continues to benefit from the adoption of our differentiated smart water solutions, favorable market conditions and sound execution. In addition to our record sales performance, we delivered strong operating profit margin expansion, record EPS and solid cash flow,” said Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer. “Another quarter of book to bill above one points to resilient demand within our markets, and we are confident in our ability to continue to capitalize on the constructive industry fundamentals. I want to thank our employees for their steadfast commitment to serving our customers.”
Second Quarter Operating Results
Utility water sales increased
Sales of flow instrumentation products increased
Gross margin dollars increased
Selling, engineering and administrative (SEA) expenses in the second quarter of 2023 were
Operating profit margin was
The tax rate for the second quarter of 2023 was
Outlook
Bockhorst continued, “Based on first half results, it’s clear we are on track for yet another year of exceptional performance. Our innovative and tailorable smart water solutions portfolio, which enables customers to be more efficient, resilient and sustainable, paired with our outstanding team focused on exceptional customer support, continues to build momentum.
“Our business model provides for durable growth despite macro-economic uncertainty given the support of our backlog, secular demand drivers and our technologically differentiated portfolio of solutions which address increasing water challenges. While we face tougher comparisons in the second half of 2023, we continue to expect benefits from stabilizing supply chain and inflation dynamics for the balance of the year.
“We issued our 2022 Sustainability Report last month highlighting our continuous improvement efforts across a variety of ESG matters. Among other accomplishments, we outlined our strong progress in reducing energy, greenhouse gas (GHG) emissions and water usage. We have surpassed our original GHG intensity reduction goal and have established a new goal along with a roadmap of tactics we believe will lead to further improvements. We remain proud of our track record of delivering both strong financial and ESG-related performance.”
Bockhorst concluded, “Badger Meter is well-positioned to sustain its pattern of profitable growth enhanced by our innovative offerings, end market resiliency and proven execution. Along with our strong balance sheet and exceptional team, we are poised to continue to improve shareholder value while furthering our vision to preserve and protect the world’s most precious resource.”
Conference Call and Webcast Information
Badger Meter management will hold a conference call to discuss the Company’s second quarter 2023 results today, Thursday July 20, 2023 at 10:00 AM Central/11:00 AM Eastern time. The webcast and related presentation can be accessed via the Investor section of our website. Individuals wishing to participate in the call should use this online registration link:
https://www.netroadshow.com/events/login?show=bf59de12&confld=52890
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 is a global provider of industry leading water solutions encompassing flow measurement, quality and other system parameters. These offerings provide our customers with the data and analytics essential to optimize their operations and contribute to the sustainable use and protection of the world’s most precious resource. For more information, visit www.badgermeter.com.
| BADGER METER, INC. | |||||||||||||
| CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||
| (in thousands, except share and earnings per share data) | |||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||
|
2023 |
|
|
2022 |
|
2023 |
|
|
2022 |
||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||||||
| Net sales | $ |
175,858 |
|
$ |
137,833 |
$ |
334,959 |
|
$ |
270,235 |
|||
| Cost of sales |
|
106,424 |
|
|
83,073 |
|
202,709 |
|
|
164,752 |
|||
| Gross margin |
|
69,434 |
|
|
54,760 |
|
132,250 |
|
|
105,483 |
|||
| Selling, engineering and administration |
|
39,932 |
|
|
32,672 |
|
77,702 |
|
|
64,533 |
|||
| Operating earnings |
|
29,502 |
|
|
22,088 |
|
54,548 |
|
|
40,950 |
|||
| Interest (income) expense, net |
|
(827 |
) |
|
9 |
|
(1,449 |
) |
|
22 |
|||
| Other pension and postretirement costs |
|
33 |
|
|
33 |
|
65 |
|
|
65 |
|||
| Earnings before income taxes |
|
30,296 |
|
|
22,046 |
|
55,932 |
|
|
40,863 |
|||
| Provision for income taxes |
|
7,803 |
|
|
5,382 |
|
14,024 |
|
|
9,839 |
|||
| Net earnings | $ |
22,493 |
|
$ |
16,664 |
$ |
41,908 |
|
$ |
31,024 |
|||
| Earnings per share: | |||||||||||||
| Basic | $ |
0.77 |
|
$ |
0.57 |
$ |
1.43 |
|
$ |
1.06 |
|||
| Diluted | $ |
0.76 |
|
$ |
0.57 |
$ |
1.42 |
|
$ |
1.06 |
|||
| Shares used in computation of earnings per share: | |||||||||||||
| Basic |
|
29,272,693 |
|
|
29,210,444 |
|
29,264,166 |
|
|
29,204,535 |
|||
| Diluted |
|
29,447,525 |
|
|
29,344,351 |
|
29,434,467 |
|
|
29,353,708 |
|||
| BADGER METER, INC. | |||||
| CONSOLIDATED CONDENSED BALANCE SHEETS | |||||
| (in thousands) | |||||
Assets |
June 30, |
December 31, |
|||
|
2023 |
|
2022 |
||
(Unaudited) |
|||||
| Cash and cash equivalents | $ |
141,805 |
$ |
138,052 |
|
| Receivables |
|
84,020 |
|
76,651 |
|
| Inventories |
|
144,749 |
|
119,856 |
|
| Other current assets |
|
18,013 |
|
13,273 |
|
| Total current assets |
|
388,587 |
|
347,832 |
|
| Net property, plant and equipment |
|
74,706 |
|
73,542 |
|
| Intangible assets, at cost less accumulated amortization |
|
57,512 |
|
53,607 |
|
| Other long-term assets |
|
24,650 |
|
26,805 |
|
| Goodwill |
|
113,797 |
|
101,261 |
|
| Total assets | $ |
659,252 |
$ |
603,047 |
|
Liabilities and Shareholders' Equity |
|||||
| Payables | $ |
81,104 |
$ |
71,440 |
|
| Accrued compensation and employee benefits |
|
17,491 |
|
20,513 |
|
| Other current liabilities |
|
20,319 |
|
18,359 |
|
| Total current liabilities |
|
118,914 |
|
110,312 |
|
| Deferred income taxes |
|
6,661 |
|
4,648 |
|
| Long-term employee benefits and other |
|
58,085 |
|
45,665 |
|
| Shareholders' equity |
|
475,592 |
|
442,422 |
|
| Total liabilities and shareholders' equity | $ |
659,252 |
$ |
603,047 |
|
| BADGER METER, INC. | |||||||||||||||
'CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
|||||||||||||||
'(in thousands) |
|||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||||||||
| Operating activities: | |||||||||||||||
| Net earnings | $ |
22,493 |
|
$ |
16,664 |
|
$ |
41,908 |
|
$ |
31,024 |
|
|||
| Adjustments to reconcile net earnings to net cash provided by operations: | |||||||||||||||
| Depreciation |
|
2,775 |
|
|
2,862 |
|
|
5,438 |
|
|
5,622 |
|
|||
| Amortization |
|
4,132 |
|
|
3,817 |
|
|
8,416 |
|
|
7,833 |
|
|||
| Deferred income taxes |
|
(366 |
) |
|
50 |
|
|
(376 |
) |
|
16 |
|
|||
| Noncurrent employee benefits |
|
(185 |
) |
|
48 |
|
|
(222 |
) |
|
(64 |
) |
|||
| Stock-based compensation expense |
|
1,601 |
|
|
851 |
|
|
2,607 |
|
|
1,466 |
|
|||
| Changes in: | |||||||||||||||
| Receivables |
|
340 |
|
|
481 |
|
|
(6,503 |
) |
|
(12,028 |
) |
|||
| Inventories |
|
(12,314 |
) |
|
(9,260 |
) |
|
(23,753 |
) |
|
(13,024 |
) |
|||
| Payables |
|
1,145 |
|
|
9,379 |
|
|
8,104 |
|
|
20,128 |
|
|||
| Prepaid expenses and other assets |
|
(2,847 |
) |
|
(5,249 |
) |
|
(4,980 |
) |
|
(8,153 |
) |
|||
| Other current liabilities |
|
5,995 |
|
|
59 |
|
|
10,100 |
|
|
(3,908 |
) |
|||
| Total adjustments |
|
276 |
|
|
3,038 |
|
|
(1,169 |
) |
|
(2,112 |
) |
|||
| Net cash provided by operations |
|
22,769 |
|
|
19,702 |
|
|
40,739 |
|
|
28,912 |
|
|||
| Investing activities: | |||||||||||||||
| Property, plant and equipment expenditures |
|
(2,664 |
) |
|
(1,631 |
) |
|
(6,935 |
) |
|
(2,773 |
) |
|||
| Acquisitions, net of cash acquired |
|
(75 |
) |
|
- |
|
|
(17,127 |
) |
|
- |
|
|||
| Net cash used for investing activities |
|
(2,739 |
) |
|
(1,631 |
) |
|
(24,062 |
) |
|
(2,773 |
) |
|||
| Financing activities: | |||||||||||||||
| Dividends paid |
|
(6,591 |
) |
|
(5,843 |
) |
|
(13,217 |
) |
|
(11,712 |
) |
|||
| Proceeds from exercise of stock options |
|
- |
|
|
- |
|
|
58 |
|
|
- |
|
|||
| Repurchase of treasury stock |
|
- |
|
|
(427 |
) |
|
- |
|
|
(427 |
) |
|||
| Net cash used for financing activities |
|
(6,591 |
) |
|
(6,270 |
) |
|
(13,159 |
) |
|
(12,139 |
) |
|||
| Effect of foreign exchange rates on cash |
|
5 |
|
|
(810 |
) |
|
235 |
|
|
(964 |
) |
|||
| Increase in cash and cash equivalents |
|
13,444 |
|
|
10,991 |
|
|
3,753 |
|
|
13,036 |
|
|||
| Cash and cash equivalents - beginning of period |
|
128,361 |
|
|
89,219 |
|
|
138,052 |
|
|
87,174 |
|
|||
| Cash and cash equivalents - end of period | $ |
141,805 |
|
$ |
100,210 |
|
$ |
141,805 |
|
$ |
100,210 |
|
|||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230720259704/en/
Karen Bauer
(414) 371-7276
kbauer@badgermeter.com
Source: Badger Meter, Inc.
FAQ
What were Badger Meter's Q2 2023 total sales?
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What was the diluted EPS for Badger Meter in Q2 2023?
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When is Badger Meter's conference call to discuss their Q2 2023 results?
