Badger Meter Reports Second Quarter Results
Milwaukee, Wis., July 19, 2012….. Badger Meter, Inc. (NYSE: BMI) today reported increased sales and comparable earnings per share for the second quarter ended June 30, 2012.
Second Quarter 2012 Highlights
Net sales were $81,974,000 for the second quarter of 2012, a 9.1% increase from sales of
$75,148,000 for the second quarter of 2011.
Net earnings were $7,442,000 for the second quarter of 2012, a 5.0% decrease from net earnings of
$7,834,000 for the second quarter of 2011.
Diluted earnings per share were $0.52 for both the second quarter of 2012 and the second quarter of
2011.
First Half 2012 Highlights
Net sales were $158,207,000 for the first half of 2012, a 19.4% increase from sales of $132,507,000
for the first half of 2011.
Net earnings were $13,691,000 for the first half of 2012, a 23.4% increase from net earnings of
$11,094,000 for the first half of 2011.
Diluted earnings per share were $0.94 for the first half of 2012, a 27.0% increase from diluted
earnings per share of $0.74 for the first half of 2011.
Operations Review
“This was a good quarter for Badger Meter, in spite of a difficult comparison against last year’s record
second quarter sales,” said Richard A. Meeusen, chairman, president and chief executive officer of
Badger Meter.
Meeusen said the increase in second quarter sales was due primarily to Racine Federated, Inc., which was
acquired on January 31, 2012, partially offset by lower sales of ORION® radio transmitters for natural gas
meters as a result of the completion of a large contract in 2011. Excluding these factors, sales of the
company’s utility, industrial and specialty products were comparable to the second quarter of
last year.
“While our overall sales levels are similar to what they have been in previous second quarters, we are seeing
a lingering uncertainty in the industry about municipal financing capabilities. Housing starts also remain at
record lows. We believe these factors are slowing the growth of the industry over the short term. Long term,
we continue to believe the fundamentals of water scarcity and our customers’ need for information to better
manage their operations provide good growth opportunities for the industry and for Badger Meter,” said
Meeusen.
The gross profit margin was 36.8% for the second quarter of 2012, up slightly from 36.2% in the second quarter of 2011. “The improvement was due to lower copper costs and a favorable product mix, with higher overall margins on the Racine Federated products,” said Meeusen. He noted that the increased selling, engineering and administration expenses in the second quarter reflected the addition of Racine Federated, increased investments in research & development and higher incentive accruals.
“Racine Federated contributed to earnings in the second quarter and is exceeding our expectations. The integration continues to go well and we are beginning to benefit from the many synergies between the two companies,” said Meeusen.
Meeusen said the company completed its previously announced $30 million stock repurchase program in the second quarter. Approximately 888,000 shares were repurchased year-to-date at an average price of $33.78 per share.
“We believe we are continuing to maintain market share. Our new products, including the ORION® SE advanced metering analytics system and the electronic E-Series meter, are being well received by customers. Despite the concerns over municipal financing and the general economy, we are cautiously optimistic about the remainder of the year,” said Meeusen.
To read the entire press release, please see http://www.badgermeter.com/getdoc/bdb32e93-124b-420a-94f5-59addc1b766a/News-Release_7-19-12.aspx.
Source: http://www.badgermeter.com.