Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Badger Meter Reports Fourth Quarter and Full Year 2022 Financial Results By: Badger Meter, Inc. via Business Wire January 27, 2023 at 08:30 AM EST Badger Meter, Inc. (NYSE: BMI) today reported results for the fourth quarter and full year ended December 31, 2022. Fourth Quarter 2022 Highlights Total sales of $147.3 million, 8.5% higher than the prior year’s $135.7 million. Excluding the unfavorable impact of the stronger US dollar, sales increased approximately 10%. Delivered diluted earnings per share (EPS) of $0.60, an increase from $0.59 last year despite difficult prior year comparisons. Strong cash flow with $29.7 million in net cash provided by operations. Full Year 2022 Highlights Record total sales of $565.6 million, 11.9% higher than the prior year’s $505.2 million. Excluding the unfavorable impact of the strong US dollar, sales increased approximately 13%. Software sales reached a record $33.8 million, representing 6% of consolidated revenues. Operating profit increased 11% over the prior year. EPS increased 9% to $2.26, up from $2.08 in the prior year. Strong cash flow with $82.5 million in net cash provided by operations. “Badger Meter finished the year with strong financial results which reflect the differentiated execution and customer focus our team exhibited throughout fiscal 2022. Sales for the quarter increased 8.5% reflecting positive industry fundamentals and the competitive advantages of our smart water solutions, which continued to fuel sales and order momentum. We continued to actively manage inflation and supply chain dynamics, as well as working capital which led to robust cash flow generation in the quarter. Shortly after year-end, we deployed approximately $18 million to acquire Syrinix, Ltd., a provider of pressure monitoring solutions, demonstrating our ongoing strategic growth focus on enhancing our smart water offerings,” said Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer. “I am extremely proud of our team’s accomplishments in 2022 and remain excited about the opportunities ahead.” Fourth Quarter Operating Results Utility water sales increased 9% year-over-year, which was notable given the more difficult year-over-year comparison after double digit sales growth in the preceding four quarters. Sales growth was again broad-based, reflecting the growing adoption of our cellular AMI solution, with higher ORION® Cellular endpoint and BEACON® SaaS revenues coupled with increased meter volumes including E-Series® Ultrasonic meters. Backlog expanded further as record order rates in the quarter exceeded sales. Sales of flow instrumentation products increased 8% year-over-year, with solid order demand across the water-focused end markets and modestly improving supply chain dynamics which aided manufacturing output. Excluding the unfavorable impact of the strong US dollar, flow instrumentation sales increased 10% year-over-year. Gross margin as a percent of sales was 38.7%, consistent with the prior quarter and in the middle of the Company’s normalized range as the benefit of strong orders, sales mix and pricing pull-through continued to offset persistent inflationary pressures and intermittent supply chain disruptions. Selling, engineering and administration (SEA) expenses in the fourth quarter of 2022 were $34.5 million, or 23.4% as a percent of sales, compared to $32.0 million, and 23.6% in the comparable prior year quarter. The $2.5 million increase in SEA expenses year-over-year was due to higher personnel and incentive compensation costs, R&D investments and travel. The tax rate for the fourth quarter of 2022 was 23.4%, modestly lower than the prior year’s 24.5%. As a result of the above, EPS was $0.60 compared to $0.59 in the comparable prior year period. Full Year Recap and Outlook Bockhorst continued, “Badger Meter’s 2022 results provide a clear demonstration of how our ongoing strategic actions position the company to perform well throughout economic cycles, generating superior value for shareholders. Amid persistent volatility in the operating environment, Badger Meter delivered double digit revenue growth, SEA operating leverage, EPS expansion, robust working capital management and strong cash flow. This in turn enabled the strategic execution of our capital allocation priorities including a dividend increase and the recently announced acquisition of Syrinix, Ltd. These accomplishments are a testament to the resiliency of our business model and world-class Badger Meter team.” “As we enter 2023, the demand environment remains robust, aided by favorable secular growth trends for digital smart water solutions delivering efficiency, resiliency and sustainability. Our value proposition has supported our ability to drive price realization, which will provide continuing benefits to our results. While macro challenges have not dissipated, we do expect pockets of inflationary leveling along with continual supply chain improvements as the year progresses. In summary, we believe we are well positioned regardless of the macro environment, as our comprehensive offerings, exceptional execution and the strength of our balance sheet remain competitive advantages.” Bockhorst concluded, “Badger Meter has an unwavering focus on innovation, serving customers and operational execution. Our exceptional team and durable business model uniquely position us to deliver 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 fourth quarter and full year 2022 results today, Friday January 27, 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. Participants can also register to take part in the call using this online registration link: https://www.netroadshow.com/events/login?show=fb45eb35&confId=45700 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. 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 December 31, Twelve Months Ended December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) Net sales $ 147,324 $ 135,748 $ 565,568 $ 505,198 Cost of sales 90,359 80,913 345,598 299,714 Gross margin 56,965 54,835 219,970 205,484 Selling, engineering and administration 34,491 31,975 132,675 126,761 Operating earnings 22,474 22,860 87,295 78,723 Interest income, net (465 ) (49 ) (552 ) (20 ) Other pension and postretirement costs 33 30 130 120 Earnings before income taxes 22,906 22,879 87,717 78,623 Provision for income taxes 5,367 5,603 21,221 17,739 Net earnings $ 17,539 $ 17,276 $ 66,496 $ 60,884 Earnings per share: Basic $ 0.60 $ 0.59 $ 2.28 $ 2.09 Diluted $ 0.60 $ 0.59 $ 2.26 $ 2.08 Shares used in computation of earnings per share: Basic 29,230,963 29,194,121 29,218,486 29,144,160 Diluted 29,406,499 29,367,693 29,376,077 29,337,586 BADGER METER, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) Assets December 31, December 31, 2022 2021 (Unaudited) Cash and cash equivalents $ 138,052 $ 87,174 Receivables 76,651 65,866 Inventories 119,856 99,611 Other current assets 13,273 8,709 Total current assets 347,832 261,360 Net property, plant and equipment 73,542 78,050 Intangible assets, at cost less accumulated amortization 53,607 64,176 Other long-term assets 26,805 22,919 Goodwill 101,261 104,313 Total assets $ 603,047 $ 530,818 Liabilities and Shareholders' Equity Payables $ 71,440 $ 41,859 Accrued compensation and employee benefits 20,513 20,644 Other current liabilities 18,359 19,643 Total current liabilities 110,312 82,146 Deferred income taxes 4,648 5,385 Long-term employee benefits and other 45,665 40,217 Shareholders' equity 442,422 403,070 Total liabilities and shareholders' equity $ 603,047 $ 530,818 BADGER METER, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) Operating activities: Net earnings $ 17,539 $ 17,276 $ 66,496 $ 60,884 Adjustments to reconcile net earnings to net cash provided by operations: Depreciation 2,677 2,672 11,090 11,291 Amortization 3,403 4,213 15,151 16,571 Deferred income taxes (5,643 ) (3,066 ) (5,619 ) (3,055 ) Noncurrent employee benefits (510 ) (466 ) (648 ) (234 ) Stock-based compensation expense 978 793 3,148 2,330 Changes in: Receivables 7,532 7,745 (11,328 ) (1,240 ) Inventories (4,814 ) (7,948 ) (21,021 ) (13,633 ) Payables 4,137 (415 ) 28,007 7,005 Prepaid expenses and other assets (1,152 ) 3,367 (10,557 ) (8,281 ) Other liabilities 5,561 2,906 7,732 15,872 Total adjustments 12,169 9,801 15,955 26,626 Net cash provided by operations 29,708 27,077 82,451 87,510 Investing activities: Property, plant and equipment expenditures (1,201 ) (903 ) (5,891 ) (6,746 ) Proceeds from company owned life insurance plans - - - 596 Acquisitions, net of cash acquired - - - (45,273 ) Net cash used for investing activities (1,201 ) (903 ) (5,891 ) (51,423 ) Financing activities: Dividends paid (6,589 ) (5,839 ) (24,881 ) (22,155 ) Proceeds from exercise of stock options 642 - 703 2,036 Repurchase of treasury stock - - (427 ) (460 ) Issuance of treasury stock - - - 72 Net cash used for financing activities (5,947 ) (5,839 ) (24,605 ) (20,507 ) Effect of foreign exchange rates on cash 705 (199 ) (1,077 ) (679 ) Increase in cash and cash equivalents 23,265 20,136 50,878 14,901 Cash and cash equivalents - beginning of period 114,787 67,038 87,174 72,273 Cash and cash equivalents - end of period $ 138,052 $ 87,174 $ 138,052 $ 87,174 View source version on businesswire.com: https://www.businesswire.com/news/home/20230127005019/en/Contacts Karen Bauer (414) 371-7276 kbauer@badgermeter.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Badger Meter Reports Fourth Quarter and Full Year 2022 Financial Results By: Badger Meter, Inc. via Business Wire January 27, 2023 at 08:30 AM EST Badger Meter, Inc. (NYSE: BMI) today reported results for the fourth quarter and full year ended December 31, 2022. Fourth Quarter 2022 Highlights Total sales of $147.3 million, 8.5% higher than the prior year’s $135.7 million. Excluding the unfavorable impact of the stronger US dollar, sales increased approximately 10%. Delivered diluted earnings per share (EPS) of $0.60, an increase from $0.59 last year despite difficult prior year comparisons. Strong cash flow with $29.7 million in net cash provided by operations. Full Year 2022 Highlights Record total sales of $565.6 million, 11.9% higher than the prior year’s $505.2 million. Excluding the unfavorable impact of the strong US dollar, sales increased approximately 13%. Software sales reached a record $33.8 million, representing 6% of consolidated revenues. Operating profit increased 11% over the prior year. EPS increased 9% to $2.26, up from $2.08 in the prior year. Strong cash flow with $82.5 million in net cash provided by operations. “Badger Meter finished the year with strong financial results which reflect the differentiated execution and customer focus our team exhibited throughout fiscal 2022. Sales for the quarter increased 8.5% reflecting positive industry fundamentals and the competitive advantages of our smart water solutions, which continued to fuel sales and order momentum. We continued to actively manage inflation and supply chain dynamics, as well as working capital which led to robust cash flow generation in the quarter. Shortly after year-end, we deployed approximately $18 million to acquire Syrinix, Ltd., a provider of pressure monitoring solutions, demonstrating our ongoing strategic growth focus on enhancing our smart water offerings,” said Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer. “I am extremely proud of our team’s accomplishments in 2022 and remain excited about the opportunities ahead.” Fourth Quarter Operating Results Utility water sales increased 9% year-over-year, which was notable given the more difficult year-over-year comparison after double digit sales growth in the preceding four quarters. Sales growth was again broad-based, reflecting the growing adoption of our cellular AMI solution, with higher ORION® Cellular endpoint and BEACON® SaaS revenues coupled with increased meter volumes including E-Series® Ultrasonic meters. Backlog expanded further as record order rates in the quarter exceeded sales. Sales of flow instrumentation products increased 8% year-over-year, with solid order demand across the water-focused end markets and modestly improving supply chain dynamics which aided manufacturing output. Excluding the unfavorable impact of the strong US dollar, flow instrumentation sales increased 10% year-over-year. Gross margin as a percent of sales was 38.7%, consistent with the prior quarter and in the middle of the Company’s normalized range as the benefit of strong orders, sales mix and pricing pull-through continued to offset persistent inflationary pressures and intermittent supply chain disruptions. Selling, engineering and administration (SEA) expenses in the fourth quarter of 2022 were $34.5 million, or 23.4% as a percent of sales, compared to $32.0 million, and 23.6% in the comparable prior year quarter. The $2.5 million increase in SEA expenses year-over-year was due to higher personnel and incentive compensation costs, R&D investments and travel. The tax rate for the fourth quarter of 2022 was 23.4%, modestly lower than the prior year’s 24.5%. As a result of the above, EPS was $0.60 compared to $0.59 in the comparable prior year period. Full Year Recap and Outlook Bockhorst continued, “Badger Meter’s 2022 results provide a clear demonstration of how our ongoing strategic actions position the company to perform well throughout economic cycles, generating superior value for shareholders. Amid persistent volatility in the operating environment, Badger Meter delivered double digit revenue growth, SEA operating leverage, EPS expansion, robust working capital management and strong cash flow. This in turn enabled the strategic execution of our capital allocation priorities including a dividend increase and the recently announced acquisition of Syrinix, Ltd. These accomplishments are a testament to the resiliency of our business model and world-class Badger Meter team.” “As we enter 2023, the demand environment remains robust, aided by favorable secular growth trends for digital smart water solutions delivering efficiency, resiliency and sustainability. Our value proposition has supported our ability to drive price realization, which will provide continuing benefits to our results. While macro challenges have not dissipated, we do expect pockets of inflationary leveling along with continual supply chain improvements as the year progresses. In summary, we believe we are well positioned regardless of the macro environment, as our comprehensive offerings, exceptional execution and the strength of our balance sheet remain competitive advantages.” Bockhorst concluded, “Badger Meter has an unwavering focus on innovation, serving customers and operational execution. Our exceptional team and durable business model uniquely position us to deliver 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 fourth quarter and full year 2022 results today, Friday January 27, 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. Participants can also register to take part in the call using this online registration link: https://www.netroadshow.com/events/login?show=fb45eb35&confId=45700 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. 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 December 31, Twelve Months Ended December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) Net sales $ 147,324 $ 135,748 $ 565,568 $ 505,198 Cost of sales 90,359 80,913 345,598 299,714 Gross margin 56,965 54,835 219,970 205,484 Selling, engineering and administration 34,491 31,975 132,675 126,761 Operating earnings 22,474 22,860 87,295 78,723 Interest income, net (465 ) (49 ) (552 ) (20 ) Other pension and postretirement costs 33 30 130 120 Earnings before income taxes 22,906 22,879 87,717 78,623 Provision for income taxes 5,367 5,603 21,221 17,739 Net earnings $ 17,539 $ 17,276 $ 66,496 $ 60,884 Earnings per share: Basic $ 0.60 $ 0.59 $ 2.28 $ 2.09 Diluted $ 0.60 $ 0.59 $ 2.26 $ 2.08 Shares used in computation of earnings per share: Basic 29,230,963 29,194,121 29,218,486 29,144,160 Diluted 29,406,499 29,367,693 29,376,077 29,337,586 BADGER METER, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) Assets December 31, December 31, 2022 2021 (Unaudited) Cash and cash equivalents $ 138,052 $ 87,174 Receivables 76,651 65,866 Inventories 119,856 99,611 Other current assets 13,273 8,709 Total current assets 347,832 261,360 Net property, plant and equipment 73,542 78,050 Intangible assets, at cost less accumulated amortization 53,607 64,176 Other long-term assets 26,805 22,919 Goodwill 101,261 104,313 Total assets $ 603,047 $ 530,818 Liabilities and Shareholders' Equity Payables $ 71,440 $ 41,859 Accrued compensation and employee benefits 20,513 20,644 Other current liabilities 18,359 19,643 Total current liabilities 110,312 82,146 Deferred income taxes 4,648 5,385 Long-term employee benefits and other 45,665 40,217 Shareholders' equity 442,422 403,070 Total liabilities and shareholders' equity $ 603,047 $ 530,818 BADGER METER, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) Operating activities: Net earnings $ 17,539 $ 17,276 $ 66,496 $ 60,884 Adjustments to reconcile net earnings to net cash provided by operations: Depreciation 2,677 2,672 11,090 11,291 Amortization 3,403 4,213 15,151 16,571 Deferred income taxes (5,643 ) (3,066 ) (5,619 ) (3,055 ) Noncurrent employee benefits (510 ) (466 ) (648 ) (234 ) Stock-based compensation expense 978 793 3,148 2,330 Changes in: Receivables 7,532 7,745 (11,328 ) (1,240 ) Inventories (4,814 ) (7,948 ) (21,021 ) (13,633 ) Payables 4,137 (415 ) 28,007 7,005 Prepaid expenses and other assets (1,152 ) 3,367 (10,557 ) (8,281 ) Other liabilities 5,561 2,906 7,732 15,872 Total adjustments 12,169 9,801 15,955 26,626 Net cash provided by operations 29,708 27,077 82,451 87,510 Investing activities: Property, plant and equipment expenditures (1,201 ) (903 ) (5,891 ) (6,746 ) Proceeds from company owned life insurance plans - - - 596 Acquisitions, net of cash acquired - - - (45,273 ) Net cash used for investing activities (1,201 ) (903 ) (5,891 ) (51,423 ) Financing activities: Dividends paid (6,589 ) (5,839 ) (24,881 ) (22,155 ) Proceeds from exercise of stock options 642 - 703 2,036 Repurchase of treasury stock - - (427 ) (460 ) Issuance of treasury stock - - - 72 Net cash used for financing activities (5,947 ) (5,839 ) (24,605 ) (20,507 ) Effect of foreign exchange rates on cash 705 (199 ) (1,077 ) (679 ) Increase in cash and cash equivalents 23,265 20,136 50,878 14,901 Cash and cash equivalents - beginning of period 114,787 67,038 87,174 72,273 Cash and cash equivalents - end of period $ 138,052 $ 87,174 $ 138,052 $ 87,174 View source version on businesswire.com: https://www.businesswire.com/news/home/20230127005019/en/Contacts Karen Bauer (414) 371-7276 kbauer@badgermeter.com
Badger Meter, Inc. (NYSE: BMI) today reported results for the fourth quarter and full year ended December 31, 2022. Fourth Quarter 2022 Highlights Total sales of $147.3 million, 8.5% higher than the prior year’s $135.7 million. Excluding the unfavorable impact of the stronger US dollar, sales increased approximately 10%. Delivered diluted earnings per share (EPS) of $0.60, an increase from $0.59 last year despite difficult prior year comparisons. Strong cash flow with $29.7 million in net cash provided by operations. Full Year 2022 Highlights Record total sales of $565.6 million, 11.9% higher than the prior year’s $505.2 million. Excluding the unfavorable impact of the strong US dollar, sales increased approximately 13%. Software sales reached a record $33.8 million, representing 6% of consolidated revenues. Operating profit increased 11% over the prior year. EPS increased 9% to $2.26, up from $2.08 in the prior year. Strong cash flow with $82.5 million in net cash provided by operations. “Badger Meter finished the year with strong financial results which reflect the differentiated execution and customer focus our team exhibited throughout fiscal 2022. Sales for the quarter increased 8.5% reflecting positive industry fundamentals and the competitive advantages of our smart water solutions, which continued to fuel sales and order momentum. We continued to actively manage inflation and supply chain dynamics, as well as working capital which led to robust cash flow generation in the quarter. Shortly after year-end, we deployed approximately $18 million to acquire Syrinix, Ltd., a provider of pressure monitoring solutions, demonstrating our ongoing strategic growth focus on enhancing our smart water offerings,” said Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer. “I am extremely proud of our team’s accomplishments in 2022 and remain excited about the opportunities ahead.” Fourth Quarter Operating Results Utility water sales increased 9% year-over-year, which was notable given the more difficult year-over-year comparison after double digit sales growth in the preceding four quarters. Sales growth was again broad-based, reflecting the growing adoption of our cellular AMI solution, with higher ORION® Cellular endpoint and BEACON® SaaS revenues coupled with increased meter volumes including E-Series® Ultrasonic meters. Backlog expanded further as record order rates in the quarter exceeded sales. Sales of flow instrumentation products increased 8% year-over-year, with solid order demand across the water-focused end markets and modestly improving supply chain dynamics which aided manufacturing output. Excluding the unfavorable impact of the strong US dollar, flow instrumentation sales increased 10% year-over-year. Gross margin as a percent of sales was 38.7%, consistent with the prior quarter and in the middle of the Company’s normalized range as the benefit of strong orders, sales mix and pricing pull-through continued to offset persistent inflationary pressures and intermittent supply chain disruptions. Selling, engineering and administration (SEA) expenses in the fourth quarter of 2022 were $34.5 million, or 23.4% as a percent of sales, compared to $32.0 million, and 23.6% in the comparable prior year quarter. The $2.5 million increase in SEA expenses year-over-year was due to higher personnel and incentive compensation costs, R&D investments and travel. The tax rate for the fourth quarter of 2022 was 23.4%, modestly lower than the prior year’s 24.5%. As a result of the above, EPS was $0.60 compared to $0.59 in the comparable prior year period. Full Year Recap and Outlook Bockhorst continued, “Badger Meter’s 2022 results provide a clear demonstration of how our ongoing strategic actions position the company to perform well throughout economic cycles, generating superior value for shareholders. Amid persistent volatility in the operating environment, Badger Meter delivered double digit revenue growth, SEA operating leverage, EPS expansion, robust working capital management and strong cash flow. This in turn enabled the strategic execution of our capital allocation priorities including a dividend increase and the recently announced acquisition of Syrinix, Ltd. These accomplishments are a testament to the resiliency of our business model and world-class Badger Meter team.” “As we enter 2023, the demand environment remains robust, aided by favorable secular growth trends for digital smart water solutions delivering efficiency, resiliency and sustainability. Our value proposition has supported our ability to drive price realization, which will provide continuing benefits to our results. While macro challenges have not dissipated, we do expect pockets of inflationary leveling along with continual supply chain improvements as the year progresses. In summary, we believe we are well positioned regardless of the macro environment, as our comprehensive offerings, exceptional execution and the strength of our balance sheet remain competitive advantages.” Bockhorst concluded, “Badger Meter has an unwavering focus on innovation, serving customers and operational execution. Our exceptional team and durable business model uniquely position us to deliver 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 fourth quarter and full year 2022 results today, Friday January 27, 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. Participants can also register to take part in the call using this online registration link: https://www.netroadshow.com/events/login?show=fb45eb35&confId=45700 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. 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 December 31, Twelve Months Ended December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) Net sales $ 147,324 $ 135,748 $ 565,568 $ 505,198 Cost of sales 90,359 80,913 345,598 299,714 Gross margin 56,965 54,835 219,970 205,484 Selling, engineering and administration 34,491 31,975 132,675 126,761 Operating earnings 22,474 22,860 87,295 78,723 Interest income, net (465 ) (49 ) (552 ) (20 ) Other pension and postretirement costs 33 30 130 120 Earnings before income taxes 22,906 22,879 87,717 78,623 Provision for income taxes 5,367 5,603 21,221 17,739 Net earnings $ 17,539 $ 17,276 $ 66,496 $ 60,884 Earnings per share: Basic $ 0.60 $ 0.59 $ 2.28 $ 2.09 Diluted $ 0.60 $ 0.59 $ 2.26 $ 2.08 Shares used in computation of earnings per share: Basic 29,230,963 29,194,121 29,218,486 29,144,160 Diluted 29,406,499 29,367,693 29,376,077 29,337,586 BADGER METER, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) Assets December 31, December 31, 2022 2021 (Unaudited) Cash and cash equivalents $ 138,052 $ 87,174 Receivables 76,651 65,866 Inventories 119,856 99,611 Other current assets 13,273 8,709 Total current assets 347,832 261,360 Net property, plant and equipment 73,542 78,050 Intangible assets, at cost less accumulated amortization 53,607 64,176 Other long-term assets 26,805 22,919 Goodwill 101,261 104,313 Total assets $ 603,047 $ 530,818 Liabilities and Shareholders' Equity Payables $ 71,440 $ 41,859 Accrued compensation and employee benefits 20,513 20,644 Other current liabilities 18,359 19,643 Total current liabilities 110,312 82,146 Deferred income taxes 4,648 5,385 Long-term employee benefits and other 45,665 40,217 Shareholders' equity 442,422 403,070 Total liabilities and shareholders' equity $ 603,047 $ 530,818 BADGER METER, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) Operating activities: Net earnings $ 17,539 $ 17,276 $ 66,496 $ 60,884 Adjustments to reconcile net earnings to net cash provided by operations: Depreciation 2,677 2,672 11,090 11,291 Amortization 3,403 4,213 15,151 16,571 Deferred income taxes (5,643 ) (3,066 ) (5,619 ) (3,055 ) Noncurrent employee benefits (510 ) (466 ) (648 ) (234 ) Stock-based compensation expense 978 793 3,148 2,330 Changes in: Receivables 7,532 7,745 (11,328 ) (1,240 ) Inventories (4,814 ) (7,948 ) (21,021 ) (13,633 ) Payables 4,137 (415 ) 28,007 7,005 Prepaid expenses and other assets (1,152 ) 3,367 (10,557 ) (8,281 ) Other liabilities 5,561 2,906 7,732 15,872 Total adjustments 12,169 9,801 15,955 26,626 Net cash provided by operations 29,708 27,077 82,451 87,510 Investing activities: Property, plant and equipment expenditures (1,201 ) (903 ) (5,891 ) (6,746 ) Proceeds from company owned life insurance plans - - - 596 Acquisitions, net of cash acquired - - - (45,273 ) Net cash used for investing activities (1,201 ) (903 ) (5,891 ) (51,423 ) Financing activities: Dividends paid (6,589 ) (5,839 ) (24,881 ) (22,155 ) Proceeds from exercise of stock options 642 - 703 2,036 Repurchase of treasury stock - - (427 ) (460 ) Issuance of treasury stock - - - 72 Net cash used for financing activities (5,947 ) (5,839 ) (24,605 ) (20,507 ) Effect of foreign exchange rates on cash 705 (199 ) (1,077 ) (679 ) Increase in cash and cash equivalents 23,265 20,136 50,878 14,901 Cash and cash equivalents - beginning of period 114,787 67,038 87,174 72,273 Cash and cash equivalents - end of period $ 138,052 $ 87,174 $ 138,052 $ 87,174 View source version on businesswire.com: https://www.businesswire.com/news/home/20230127005019/en/