Badger Meter Reports First Quarter Results.Business Editors MILWAUKEE--(BUSINESS WIRE)--April 12, 2001 Anticipates improved performance in the last half of 2001 Badger badger, name for several related members of the weasel family. Most badgers are large, nocturnal, burrowing animals, with broad, heavy bodies, long snouts, large, sharp claws, and long, grizzled fur. Meter, Inc. (AMEX AMEX See: American Stock Exchange : BMI BMI body mass index. BMI abbr. body mass index Body mass index (BMI) A measurement that has replaced weight as the preferred determinant of obesity. ) today reported results for the first quarter ended March 31, 2001 and said it expects results to improve in the last half of the year. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the first quarter were $35,454,000, down 3.9% from sales of $36,907,000 for the same period in 2000. Net earnings were $934,000 for the first quarter of 2001, a 60.4% decrease from earnings of $2,357,000 for the first quarter of 2000. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.28 for the first quarter of 2001, a 58.2% decrease from earnings of $0.67 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the comparable prior period. "Although first quarter sales were lower than for the same period a year ago, they are up sequentially from the fourth quarter of 2000. While this improvement did not carry over into earnings, we made significant progress in reducing both operating and interest expenses, developing new products and strengthening marketing alliances which we anticipate will contribute to improved results in future quarters," said James L. Forbes, chairman, president and chief executive officer of Badger Meter. Forbes said the decrease in first quarter sales reflects lower sales of residential water meters due to the continued market slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the rate of conversion to automatic meter reading Automatic meter reading, or AMR, is the technology of automatically collecting data from water meter or energy metering devices (water, gas, electric) and transferring that data to a central database for billing and/or analyzing. . Sales of commercial and industrial meters were down slightly, while sales of automotive fluid meters and Research Control(R) valves increased for the period. "Many customers are delaying the decision-making process for automatic meter reading while they evaluate new entrants to the market. We believe our product offers the highest quality and reliability and the lowest total life cycle cost in the industry. While water utilities are not converting to automatic meter reading as quickly as we would like, we believe the strength of our product line continues to position us for long-term growth in this market," said Forbes. Forbes said the decrease in first quarter earnings reflects the lower sales and reduced profit margins. He noted that results for the first quarter of the prior year included $750,000 of insurance proceeds relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a fire at one of the company's major suppliers. The profit margin declined to 33.9% in the first quarter of 2001 from 38.7% in the first quarter of the prior year. Forbes said the decrease in the margin was due to several large lower-margin projects during the quarter, the mix of residential water meters and higher costs associated with increased manufacturing capacity. "We continue to focus on reducing operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Selling, engineering and administration expenses were decreased 4.6% for the quarter, and we expect further reductions in future quarters. Interest expense also declined during the first quarter due to lower interest rates and a reduction in both short- and long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. ," Forbes said. "Looking ahead, we expect improved performance in the second half of the year due to the introduction of new products, improved market conditions, enhanced alliance relationships and increased efficiencies resulting from the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of several product lines," said Forbes. "In the new product area, we recently introduced a new electronic pre-set meter for the automotive fluid meter market. We anticipate introducing a new commercial and industrial compound meter Compound Meter may refer to:
tr.v. in·ter·ro·gat·ed, in·ter·ro·gat·ing, in·ter·ro·gates 1. To examine by questioning formally or officially. See Synonyms at ask. 2. for our TRACE(R) radio frequency automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. meter reading system in the second quarter, which are expected to drive future sales," said Forbes. "In addition, we strengthened our alliance with Itron, Inc. to include joint marketing efforts. A new contract for 73,000 residential water meters in Long Island, NY is the first project developed through this expanded relationship, with others in development. We also have excellent opportunities to expand our services business through our alliance with Honeywell DMC DMC Devil May Cry (video game) DMC Detroit Medical Center DMC Darryl McDaniels (rapper) DMC Destination Management Company DMC Del Mar College (Corpus Christi, TX) Services," he said. "Together, we believe these new initiatives position us for increased sales and earnings in the last six months of 2001," said Forbes. Badger Meter is a leading marketer and manufacturer of products using flow measurement and control technology serving utility and industrial markets worldwide. Certain statements contained in the pages of this document, as well as other information provided from time to time by 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 in the forward looking statements. The words "anticipate," "believe," "estimate," "expect," "think," "should" and "objective" or similar expressions are intended to identify forward looking statements. The forward looking statements are based on the Company's current views and assumptions and involve risks and uncertainties that include, among other things: - the success or failure of new product offerings - the actions and financial condition of competitors and alliance partners - changes in competitive pricing and bids in the marketplace - changes in domestic conditions, including housing starts - changes in foreign economic conditions, including currency fluctuations - changes in laws and regulations - changes in customer demand and fluctuations in the prices of and availability of purchased raw materials and parts. Some or all of these factors are beyond the Company's control. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward looking statements and are cautioned not to place undue reliance on such forward looking statements. The forward looking statements made herein are made only as of the date of this document and the Company undertakes no obligation to publicly update such forward looking statements to reflect subsequent events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Badger Meter company news is available 24 hours a day, on-line at: http://www.badgermeter.com
BADGER METER, INC.
CONSOLIDATED STATEMENT OF OPERATIONS(a)
Three Months Ended March 31,
2001 2000
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Net sales $35,454,000 $36,907,000
Gross margin $12,027,000 $14,289,000
Earnings before income taxes $1,415,000 $3,789,000
Provision for income taxes $481,000 $1,432,000
Net earnings $934,000 $2,357,000
Earnings per share:
Basic $0.29 $0.71
Diluted $0.28 $0.67
Shares used in computation of:
Basic 3,210,104 3,310,517
Diluted 3,331,126 3,507,053
(a) Unaudited
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