Badger meter reports second quarter 2022 results
Milwaukee--(business wire)--badger meter, inc. (nyse: bmi) today reported results for the second quarter ended june 30, 2022. second quarter 2022 highlights total sales of $137.8 million increased 12% over the prior year’s $122.9 million. excluding the unfavorable impact of the stronger us dollar, sales increased nearly 14% diluted earnings per share (eps) increased 19% to $0.57 compared to $0.48 in the comparable prior year period operating profit margins expanded 80 basis points year-over-year robust demand environment continued with strong order pace and record backlog strong cash flow with $19.7 million in net cash provided by operations “record sales for the second quarter were the result of continued strong customer demand, effective supply chain management and continued price realization. operating margins improved year-over-year despite persistent cost inflation, and we continued to experience robust orders and correspondingly, a further expansion of our already record-high backlog,” said kenneth c. bockhorst, chairman, president and chief executive officer. “i want to thank the global badger meter team for their tireless commitment to serving our customers.” second quarter operating results utility water sales increased 14% year-over-year, representing the third consecutive quarter of mid-teens sales growth. the sales increase in the quarter was most notable in e-series® ultrasonic meters, orion® cellular endpoints and beacon® saas revenue. backlog grew as continued strong order momentum more than offset the recovering production output, as sporadic supply chain constraints limited the conversion of utility water orders to net sales. sales of flow instrumentation products increased 4% year-over-year, the result of strong order demand across most end market applications partially offset by supply chain constraints that impacted manufacturing output. operating margin was 16.0% in the second quarter of 2022, an 80 basis point improvement from the prior year’s 15.2%. gross margin as a percent of sales was 39.7%, an increase of 140 basis points sequentially, as the pacing of price realization and manufacturing output improved. gross margin as a percent of sales declined from the prior year’s 40.8%, as expected, as elevated material, logistics and other costs were partially offset by higher sales volumes and pricing gains. selling, engineering and administration (“sea”) expenses in the second quarter of 2022 were $32.7 million, or 23.7% as a percent of sales, compared to $31.4 million, and 25.6% in the comparable prior year quarter. the $1.3 million spending increase was due to higher personnel and travel expenses, while the year-over-year improvement in sea expense leverage is the result of effective spending controls and higher sales. the tax rate for the second quarter of 2022 was 24.4%, modestly lower than the prior year’s 25.0%. as a result of the above, eps increased 19% year-over-year, to $0.57 compared to $0.48 in the comparable prior year period. outlook bockhorst added, “we continue to experience strong demand for our digital water solutions coupled with modestly improving supply chain conditions. our supply chain execution, along with pricing actions aligned with the value we deliver, are working to mitigate the inflation pressures of the past year. our demonstrated capability to navigate external challenges and capitalize on the robust demand environment differentiates badger meter. the positive industry fundamentals driving demand, including customer requirements to enhance operational efficiency, security and sustainability, are resilient. badger meter solutions harness the power of our smart devices, advanced orion cellular communication technology and beacon software for the remote monitoring and management of water networks to address these customer challenges. we continue to advance our esg-related priorities and have highlighted our progress in the recently published 2020-2021 sustainability report. we are proud to have recently been recognized as a manufacturing industry top workplaces award recipient, which is especially meaningful given the employee survey feedback that garnered the award. bockhorst concluded, “while we are mindful of the uncertain macroeconomic conditions, our durable business model, increasing digital solutions mix, proven execution and our strong balance sheet position us well to deliver sustainable sales growth and 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 2022 results today, wednesday july 20, 2022 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. participants can also register to take part in the call using this online registration link: https://ige.netroadshow.com/registration/q4inc/11203/badger-meter-inc-second-quarter-2022-earnings/. the webcast will be archived on the company’s website until its next earnings release. 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. potential factors that could affect such forward-looking statements include the possible ongoing negative impacts of covid-19 on the global economy, the company’s operations and those of our customers and suppliers. in addition, 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 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. three months ended june 30, six months ended june 30, 2022 2021 2022 2021 $ 137,833 $ 122,869 $ 270,235 $ 240,711 83,073 72,767 164,752 141,247 54,760 50,102 105,483 99,464 32,672 31,427 64,533 63,042 22,088 18,675 40,950 36,422 9 7 22 14 33 29 65 60 22,046 18,639 40,863 36,348 5,382 4,667 9,839 8,595 $ 16,664 $ 13,972 $ 31,024 $ 27,753 $ 0.57 $ 0.48 $ 1.06 $ 0.95 $ 0.57 $ 0.48 $ 1.06 $ 0.95 29,210,444 29,114,346 29,204,535 29,105,429 29,344,351 29,312,174 29,353,708 29,313,392 assets june 30, december 31, 2022 2021 $ 100,210 $ 87,174 77,247 65,866 111,437 99,611 15,027 8,709 303,921 261,360 74,040 78,050 57,772 64,176 23,092 22,919 101,206 104,313 $ 560,031 $ 530,818 liabilities and shareholders' equity $ 61,597 $ 41,859 14,941 20,644 20,797 19,643 97,335 82,146 4,937 5,385 41,576 40,217 416,183 403,070 $ 560,031 $ 530,818 three months ended june 30, six months ended june 30, 2022 2021 2022 2021 (unaudited) (unaudited) (unaudited) (unaudited) $ 16,664 $ 13,972 $ 31,024 $ 27,753 2,862 2,990 5,622 5,863 3,817 4,022 7,833 8,088 50 7 16 45 48 79 (64 ) 160 851 573 1,466 947 481 (2,242 ) (12,028 ) 1,622 (9,260 ) (6,096 ) (13,024 ) (4,812 ) 9,379 1,075 20,128 5,366 (5,249 ) (831 ) (8,153 ) (1,259 ) 59 964 (3,908 ) 1,296 3,038 541 (2,112 ) 17,316 19,702 14,513 28,912 45,069 (1,631 ) (2,619 ) (2,773 ) (4,378 ) - 55 - (44,506 ) (1,631 ) (2,564 ) (2,773 ) (48,884 ) (5,843 ) (5,240 ) (11,712 ) (10,479 ) - - - 352 (427 ) (460 ) (427 ) (460 ) - 30 - 72 (6,270 ) (5,670 ) (12,139 ) (10,515 ) (810 ) (322 ) (964 ) (584 ) 10,991 5,957 13,036 (14,914 ) 89,219 51,402 87,174 72,273 $ 100,210 $ 57,359 $ 100,210 $ 57,359
