Badger Meter Reports Record Sales.Business Editors MILWAUKEE--(BUSINESS WIRE)--Oct. 13, 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 results for the third quarter and nine months ended September 30, 2000. 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 third quarter of 2000 were $39,508,000, the highest of any quarter in the company's history. The third quarter sales were up 5.2% from sales of $37,551,000 for the third quarter of 1999. Net earnings for the third quarter of 2000 were $1,948,000, a 19.5% decrease from earnings of $2,420,000 for the same period in 1999. 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 decreased 13.8% to $0.56 from earnings of $0.65 per share for the comparable prior period. The smaller percentage decrease in earnings per share than in earnings reflects the purchase by the company of common shares in August 1999. For the first nine months of 2000, net sales were $112,260,000, a 1.9% decrease from sales of $114,460,000 for the first nine months of 1999. Net earnings were $5,839,000 for the first nine months of 2000, a 21.1% decrease from earnings of $7,405,000 for the same period in 1999. Diluted earnings per share were $1.67 for the first nine months of 2000, a 14.4% decrease from earnings of $1.95 per share for the same period in the prior year. "While we are pleased that our third quarter sales surpassed all company records, we are not satisfied with the decline in earnings, which is inconsistent with our past record of earnings growth. We continue to focus on the long term by investing in new products and technologies, sales and marketing, and other opportunities. We recently released new products that strengthen our commercial and industrial water meter line. In addition, new residential and industrial products are scheduled to be introduced later in the year and in early 2001," said James L. Forbes, chairman and chief executive officer of Badger Meter. Sales of residential, commercial and industrial water meters increased in the third quarter. The increased water meter sales more than offset lower sales of the company's industrial products, which continue to be affected by competitive pressures and the impact of the weak euro on foreign currency translations. Forbes said the decline in earnings was due to a higher mix of international water meter sales with lower profit margins and reduced manufacturing capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. compared to the same time last year. "A year ago, our manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. approached 100% capacity and we expanded our facilities to meet the growing demand for residential water metering Water metering is the process of measuring water use through water meters. Prevalence Water metering is common for residential and commercial drinking water supply in many countries, as well as for industrial self-supply with water. products. While we are currently utilizing some of this added capacity, we have planned for long-term growth and as a result, our current utilization rate is lower than it was in the third quarter of 1999," Forbes said. "New technology entrants contributed to a lengthening lengthening (lengkˑ·the·ning), n the use of various massage or muscle energy techniques to relax and stretch muscle and connective tissue. of our sales cycle in 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. , in addition to continuing factors which include the problems of several fixed-base network providers, the lingering lin·ger v. lin·gered, lin·ger·ing, lin·gers v.intr. 1. To be slow in leaving, especially out of reluctance; tarry. See Synonyms at stay1. 2. effects of the FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. license issue and the uncertainties associated with utility industry deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. in general. However, we continue to believe that this market offers excellent future growth for Badger Meter as utilities invest in the benefits of automatic meter reading," said Forbes. Badger Meter is a leading marketer and manufacturer of products using flow measurement and control technology serving utility and industrial markets worldwide.
BADGER METER, INC.
CONSOLIDATED STATEMENT OF OPERATIONS(1)
Nine Months Ended September 30,
2000 1999
---- ----
Net sales $ 112,260,000 $ 114,460,000
Gross margin $ 40,762,000 $ 45,135,000
Earnings before income taxes $ 9,316,000 $ 12,040,000
Provision for income taxes $ 3,477,000 $ 4,635,000
Net earnings $ 5,839,000 $ 7,405,000
Earnings per share:
Basic $ 1.76 $ 2.08
Diluted $ 1.67 $ 1.95
Shares used in computation of:
Basic 3,319,026 3,562,166
Diluted 3,494,790 3,800,437
Three Months Ended September 30,
2000 1999
---- ----
Net sales $ 39,508,000 $ 37,551,000
Gross margin $ 14,479,000 $ 14,891,000
Earnings before income taxes $ 3,091,000 $ 3,935,000
Provision for income taxes $ 1,143,000 $ 1,515,000
Net earnings $ 1,948,000 $ 2,420,000
Earnings per share:
Basic $ 0.59 $ 0.70
Diluted $ 0.56 $ 0.65
Shares used in computation of:
Basic 3,323,071 3,471,997
Diluted 3,479,481 3,708,275
(1)Unaudited
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