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Badger Meter Reports Fourth Quarter and Full Year 2018 Results
MILWAUKEE--(BUSINESS WIRE)--February 5, 2019--Badger Meter, Inc. (NYSE: BMI) today reported results for the fourth quarter and full year ended December 31, 2018.
Fourth Quarter 2018 Highlights
- Net sales for the fourth quarter were $104.4 million, representing an 8.0% increase from sales of $96.7 million in the fourth quarter of 2017.
- GAAP net earnings and diluted earnings per share (EPS) were $11.2 million and $0.39, respectively, compared to $7.2 million and $0.25 in the comparable prior year period.
- Excluding the impact of executive retirement charges, 2018 adjusted EPS was $0.40, representing a 60% increase from EPS of $0.25 in the fourth quarter of 2017.
Full Year 2018 Highlights
- Net sales were $433.7 million for the year ended December 31, 2018, a 7.8% increase from sales of $402.4 million in 2017.
- GAAP net earnings and EPS were $27.8 million and $0.95, respectively, compared to $34.6 million and $1.19 in the comparable prior year period.
- Excluding the impact of pension termination settlement and executive retirement charges, adjusted EPS was $1.54 for the year ended December 31, 2018, a 29% increase from EPS of $1.19 in 2017.
Fourth Quarter Operating Results
“We finished the year with outstanding results, delivering another strong quarter of sales and EPS growth. The positive momentum we have seen during the past several quarters continued into the fourth quarter, with high single-digit sales growth across our product lines in the municipal and flow instrumentation end-markets coupled with favorable sales mix and good spending leverage,” said Kenneth C. Bockhorst, President and Chief Executive Officer of Badger Meter.
Water utility sales grew 8% with increased commercial and residential activity, bolstered by accelerating acceptance of industry leading E-Series® Ultrasonic water meters and ORION® Cellular endpoints. Sales of flow instrumentation products increased 9% with further channel penetration in key target markets, such as water and wastewater and oil and gas.
Adjusted operating earnings, excluding executive retirement charges, was $15.3 million or 14.6% of sales, which improved 20 basis points year-over-year from 14.4% in the prior year’s fourth quarter. Gross profit margins were strong at 38.5%, although they moderated from the prior year’s robust level. Gross profit benefited from the higher sales volumes and positive price/cost dynamics. While the overall favorable trends in water utility sales mix continued, the prior year’s fourth quarter mix created a difficult comparison.
Adjusted selling, engineering and administration (“SEA”) expenses in the fourth quarter of 2018 were slightly lower than the prior year, and as a percent of sales, SEA leverage improved to 23.8% of sales from 26.0% in the prior year comparable quarter.
The fourth quarter included a $0.5 million ($0.4 million, or $0.01 per share after-tax) non-cash charge for the immediate vesting of equity awards in conjunction with the previously announced upcoming executive retirements.
Bockhorst continued, “Overall, I am extremely pleased with our results and execution which positions us well to continue to be able to capitalize on the favorable market momentum and our leading technology offerings. The entire Badger Meter team is doing a great job executing our customer-focused strategy and I want to thank them for their efforts.”
The following information was filed by Badger Meter Inc (BMI) on Tuesday, February 5, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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