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Badger Meter Reports Record Second Quarter 2017 Results

MILWAUKEE--(BUSINESS WIRE)--Badger Meter, Inc. (NYSE: BMI) today reported record second quarter results for the quarter ended June 30, 2017.

Second Quarter 2017 Highlights

  • Net sales of $104,176,000 for the second quarter of 2017 were a record for any quarter and increased 0.3% from sales of $103,820,000 for the second quarter of 2016.
  • Net earnings of $10,614,000 for the second quarter of 2017 were a record for any quarter and increased 12.9% from net earnings of $9,400,000 for the second quarter of 2016.
  • Diluted earnings per share of $0.36 for the second quarter of 2017 were a record for any quarter and increased 12.5% from diluted earnings per share of $0.32 for the second quarter of 2016.

First Half 2017 Highlights

  • Net sales were $205,782,000 for the first half of 2017, a 0.7% increase from sales of $204,390,000 for the first half of 2016.
  • Net earnings were $19,363,000 for the first half of 2017, an 11.3% increase from net earnings of $17,390,000 for the first half of 2016.
  • Diluted earnings per share were $0.67 for the first half of 2017, an 11.7% increase from diluted earnings per share of $0.60 for the first half of 2016.

Operations Review

“We are pleased that we set new all-time records for net sales, net earnings and diluted earnings per share, especially coming after a record second quarter performance last year,” said Richard A. Meeusen, chairman, president and chief executive officer of Badger Meter.

“Our second quarter domestic residential and commercial municipal water product sales were essentially flat year-over-year as some customers delayed orders to take advantage of the latest advancement in our ORION® Cellular technology, the ORION Cellular Long-Term Evolution (LTE) endpoint, which we began shipping in June 2017. This first-to-market LTE cellular endpoint not only provides the latest cellular technology to new customers, but also enables the company’s existing ORION® Cellular customers to continue building out their system with the newer LTE networks,” explained Meeusen.

“Our new ORION Cellular LTE endpoint is the latest example of how Badger Meter is always working to be at the forefront of advanced metering technology and analytics that will ensure our customers remain current with the latest advances in cellular communications,” said Meeusen.

Meeusen also said domestic sales of flow instrumentation products increased in the second quarter, but were partially offset by fewer international projects. “We were pleased to see the long-awaited recovery of our oil and gas business during this quarter,” commented Meeusen.

The company further strengthened its presence in the ultrasonic flowmeter market with the acquisition of D-Flow Technology AB of Luleå, Sweden in the second quarter. D-Flow Technology specializes in the design and development of ultrasonic technology, primarily for use in flow measurement. The acquisition will allow Badger Meter to further enhance its successful E-Series® Ultrasonic product line, lower production costs and provide a platform for further advancement of its ultrasonic capabilities. D-Flow Technology’s facilities in Sweden will become a Badger Meter Technology Center.

“The integration of D-Flow Technology’s operations is on schedule and we have begun an accelerated project to develop E-Series® Ultrasonic meters for commercial applications, which will extend our family of ultrasonic meters into larger sizes. We are already seeing the benefits of this ultrasonic technology expertise,” said Meeusen.

Meeusen said the gross profit margin was 39.4% in the second quarter of 2017 compared to 37.9% in the prior year quarter. Pricing discipline, manufacturing cost controls and the company’s strategy to acquire or consolidate much of its distribution network helped to offset the headwinds of higher brass costs.

Selling, engineering and administration expenses were essentially the same as the second quarter of 2016, primarily due to staffing reductions in the flow...


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