Badger Meter Reports Record Third Quarter Earnings.MILWAUKEE Milwaukee (mĭlwŏk`ē), city (1990 pop. 628,088), seat of Milwaukee co., SE Wis., at the point where the Milwaukee, Menominee, and Kinnickinnic rivers enter Lake Michigan; inc. 1846. -- 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 meter, unit of measure meter, abbr. m, fundamental unit of length in the metric system. The meter was originally defined as 1/10,000,000 of the distance between the equator and either pole; however, the original survey was inaccurate and the meter was later , 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 earnings for the third quarter ended September September: see month. 30, 2004. 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 2004 were $53,340,000, a 9.7% increase from sales of $48,613,000 for the third quarter of 2003. Net earnings were a record $3,389,000 or $0.99 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 third quarter of 2004, a 23.8% increase from net earnings of $2,644,000 or $0.80 per diluted share for the same period in 2003. For the first nine months of 2004, net sales were $156,492,000, a 15.3% increase from net sales of $135,704,000 for the same period in the prior year. Net earnings for the first nine months of 2004 were $8,816,000 or $2.60 per diluted share, a 43.6% increase from earnings of $5,956,000 or $1.81 per diluted share for the comparable prior period. "Increased sales of 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. (AMR (1) (Adaptive Multi-Rate) A variable rate speech codec selected by the 3GPP for the 3G evolution of the GSM cellphone system (WCDMA). Using the Algebraic CELP (ACELP) compression technology, AMR provides toll quality sound at transmission rates from 4.75 to 12. ) systems for the water utility market drove our strong third quarter performance. Sales of residential AMR systems grew at a double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. rate, due to the continuing success of Orion Orion, in Greek mythology Orion (ōrī`ən), in Greek mythology, Boeotian hunter. When Oenopion delayed giving his daughter Merope to him, Orion, when drunk, violated her. (R), our proprietary mobile radio frequency AMR system, along with increased sales of residential water meters equipped with AMR systems supplied by Itron, Inc.," said Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a A. Meeusen, chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Badger Meter. He also noted that net earnings for the third quarter were negatively affected by continuing operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. related to the company's operation in France. "We are broadening broad·en tr. & intr.v. broad·ened, broad·en·ing, broad·ens To make or become broad or broader. broad our AMR product line through recently announced alliances with companies that will use power lines to transmit To send data over a communications line. See transfer. data from water and gas meters to the utility. This builds on our existing ability to provide digital connectivity A generic term for connecting devices to each other in order to transfer data back and forth. It often refers to network connections, which embraces bridges, routers, switches and gateways as well as backbone networks. to our own and other AMR systems using radio frequency, telephone and satellite technology," said Meeusen. "Different utilities prefer different AMR solutions. Our goal is to meet the needs of our utility customers with a broad range of AMR products and technologies." "As existing meter replacements come due, more utilities are evaluating the benefits of converting to automatic meter reading. With only 15% of residential water meters in the U.S. currently converted to AMR, we believe Badger Meter is well positioned to benefit from long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth opportunities in this market," said Meeusen. Badger Meter is a leading marketer and manufacturer of flow measurement and control technology, developed both internally and with other companies, as well as the leader in providing digital connectivity to leading AMR technologies. Its products are used to measure and control the flow of liquids in a variety of applications. Certain statements contained in this news release 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. All such forward looking statements are based on the Company's then current views and assumptions and involve risks and uncertainties that include, among other things:
-- the continued shift in the Company's business from lower cost,
local-read meters towards more expensive, value-added
automatic meter reading (AMR) systems;
-- the success or failure of new Company products, including the
Orion(R) radio frequency drive-by AMR meter, the absolute
digital encoder (ADE) and the proposed Galaxy(TM) fixed
network AMR system;
-- changes in competitive pricing and bids in the marketplace,
and particularly continued intense price competition on
government bid contracts for lower cost, local read meters;
-- the actions (or lack thereof) of the Company's competitors;
-- the Company's relationships with its alliance partners,
particularly its alliance partners that provide AMR
connectivity solutions;
-- the general health of the United States economy, particularly
including housing starts and the overall industrial activity;
-- increases in the cost and/or availability of needed raw
materials and parts, including recent increases in the cost of
brass housings as a result of increases in the commodity
prices for copper and zinc at the supplier level;
-- changes in foreign economic conditions, including currency
fluctuations such as the recent increase in the euro versus
the United States dollar; and
-- changes in laws and regulations, particularly laws dealing
with the use of lead (which can be used in the manufacture of
certain meters incorporating brass housings) and Federal
Communications Commission rules affecting the use and/or
licensing of radio frequencies necessary for AMR products.
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 in this document are made only as of the date of this document and the Company assumes no obligation, and disclaims any obligation, to update any 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
(Unaudited)
Nine Months Ended September 30,
2004 2003
Net sales $156,492,000 $135,704,000
Gross margin $51,510,000 $45,064,000
Earnings before income taxes $14,943,000 $9,638,000
Provision for income taxes $6,127,000 $3,682,000
Net earnings $8,816,000 $5,956,000
Earnings per share:
Basic $2.68 $1.85
Diluted $2.60 $1.81
Shares used in computation of:
Basic 3,290,027 3,216,267
Diluted 3,388,944 3,285,966
Three Months Ended September 30,
2004 2003
Net sales $53,340,000 $48,613,000
Gross margin $17,903,000 $16,097,000
Earnings before income taxes $6,060,000 $4,289,000
Provision for income taxes $2,671,000 $1,645,000
Net earnings $3,389,000 $2,644,000
Earnings per share:
Basic $1.02 $0.82
Diluted $0.99 $0.80
Shares used in computation of:
Basic 3,306,633 3,237,605
Diluted 3,428,639 3,317,478
BADGER METER, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
Assets September 30 December 31
2004 2003
(Unaudited)
Cash $ 2,015,000 $ 2,089,000
Receivables 31,024,000 26,304,000
Inventories 32,215,000 29,654,000
Other current assets 5,428,000 4,951,000
Total current assets 70,682,000 62,998,000
Net property, plant and equipment 41,401,000 42,838,000
Prepaid pension 17,526,000 16,236,000
Other long-term assets 4,746,000 4,690,000
Goodwill 6,754,000 7,089,000
------------- -------------
Total assets $ 141,109,000 $ 133,851,000
Liabilities and Shareholders' Equity
Short-term debt and current
portion long-term debt $ 14,572,000 $ 9,188,000
Payables 13,841,000 14,895,000
Accrued compensation and employee
benefits 6,593,000 6,619,000
Warranty and other liabilities 7,387,000 6,350,000
------------- -------------
Total current liabilities 42,393,000 37,052,000
Deferred income taxes 5,764,000 5,699,000
Long-term employee benefits 10,901,000 11,479,000
Long-term debt 19,797,000 24,450,000
Shareholders' equity 62,254,000 55,171,000
------------- -------------
Total liabilities and
shareholders' equity $ 141,109,000 $ 133,851,000
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