Badger Meter Reports Record Sales and Earnings for 1999.Business Editors MILWAUKEE--(BUSINESS WIRE)--Feb. 1, 2000 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 record sales and earnings for the fourth quarter and year ended December 31, 1999. 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 1999 were $150,877,000, a 4.9% increase from sales of $143,813,000 in 1998. Net earnings for the year rose 17.6% to $9,700,000 from earnings of $8,247,000 in the prior year. 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 $2.60 in 1999, a 22.6% increase from earnings of $2.12 per share in 1999. The higher percentage increase in earnings per share than in earnings reflects the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 304,000 common shares in August 1999 by the company. For the fourth quarter of 1999, net sales were $36,417,000, a 5.5% increase from sales of $34,514,000 for the same period in 1998. Net earnings were $2,295,000 for the fourth quarter of 1999, a 17.6% increase from earnings of $1,951,000 for the comparable prior period. Diluted earnings per share were $0.65 for the fourth quarter of 1999, up 30.0% from earnings of $0.50 per share for the same period in 1998. &uot;This is our 14th consecutive year of record sales and our sixth consecutive year of record earnings,&uot; said James L. Forbes, chairman and chief executive officer of Badger Meter. &uot;Sales of products to water utility customers were up substantially in 1999, more than offsetting reduced sales of industrial products due to a general softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. in these markets.&uot; Product lines contributing to the higher 1999 sales were residential metering products including the company's TRACE(R) radio frequency automated meter reading system, commercial and industrial meters, electromagnetic electromagnetic /elec·tro·mag·net·ic/ (-mag-net´ik) involving both electricity and magnetism. electromagnetic pertaining to or emanating from electromagnetism. flowmeters, and meters and dispensing dispensing provision of drugs or medicines as set out properly on a lawful prescription. A prescription can only be filled, the drugs supplied, by a registered pharmacist, veterinarian, dentist or member of the medical profession. systems for the concrete market. Sales of automotive fluid meters increased in Europe. Forbes attributed the increased 1999 earnings to the higher sales, improved profit margins, increased manufacturing efficiency and carefully controlled 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. . &uot;We are pleased with the results of 1999 and our continuing trend of improvement, especially in view of several unusual challenges we faced during the year including a fire in September 1999 at the facility of one of our principal vendors. Earnings were not adversely impacted by the fire due to an after-tax payment of $400,000 as part of our business interruption insurance Noun 1. business interruption insurance - insurance that provides protection for the loss of profits and continuing fixed expenses resulting from a break in commercial activities due to the occurrence of a peril coverage. In addition, a freeze on radio frequency licenses by the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. affected sales to new customers of residential water meters equipped with our RTR RTR Ready To Run RTR Rundfunk & Telekom Regulierungs Gmbh RTR Rotor RTR Radio e Televisiun Rumantscha (Romansh Radio and Television, Switzerland) RTR Response Time Reporter RTR Ready To Race RTR Ready to Roll (R) digital interface device in conjunction with two alliance companies. Now that the freeze has been lifted, we are resuming our sales activities for these products.&uot; Forbes said capital expenditures of $9,981,000 in 1999 included completion of the company's new technology center and expanded manufacturing capacity at the Milwaukee facility. &uot;We also continued to invest in engineering and marketing, adding experienced employees who strengthen our capabilities in these areas,&uot; he said. He noted that the company expanded its international activities with the purchase in January 2000 of the assets of the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. company that assembled and tested the company's line of electromagnetic flowmeters. In addition, a new sales office opened in Singapore in 1999. &uot;Our broad product line offerings, commitment to technology and ability to interface our products with our own 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. systems as well as those of other companies provide opportunities for continuing growth in the years ahead,&uot; Forbes said. Badger Meter is a leading marketer and manufacturer of products using flow measurement and control technology serving utility and industrial markets worldwide. Certain statements in this news release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. The words &uot;anticipate,&uot; &uot;believe,&uot; &uot;estimate,&uot; &uot;expect,&uot; &uot;think,&uot; and &uot;objective&uot; 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 developments; the actions of competitors; changes in the domestic economic 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. Badger Meter, Inc. company news is available 24 hours a day, on-line at: http://www.badgermeter.com --FINANCIAL TABLES TO FOLLOW--
BADGER METER, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
Twelve Months Ended December 31,
1999 1998
---- ----
Net sales $150,877,000 $143,813,000
Gross margin $59,155,000 $57,311,000
Earnings before income taxes $15,659,000 $13,364,000
Provision for income taxes $5,959,000 $5,117,000
Net earnings $9,700,000 $8,247,000
Earnings per share:
Basic $2.78 $2.28
Diluted $2.60 $2.12
Shares used in computation of:
Basic 3,494,409 3,623,648
Diluted 3,728,468 3,895,957
Three Months Ended December 31,
1999 1998
---- ----
Net sales $36,417,000 $34,514,000
Gross margin $14,020,000 $13,858,000
Earnings before income taxes $3,619,000 $3,248,000
Provision for income taxes $1,324,000 $1,297,000
Net earnings $2,295,000 $1,951,000
Earnings per share:
Basic $0.70 $0.54
Diluted $0.65 $0.50
Shares used in computation of:
Basic 3,299,356 3,621,806
Diluted 3,510,032 3,882,382
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