UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of
Report (Date of earliest event reported) October
17, 2016
Badger
Meter, Inc.
(Exact
name of Registrant as Specified in Charter)
Wisconsin |
1-6706 |
39-0143280 |
(State or Other Jurisdiction of Incorporation) |
(Commission File |
(IRS Employer Identification No.) |
4545 W. Brown Deer Rd., Milwaukee, Wisconsin |
53223 |
(Address of Principal Executive Offices) | (Zip Code) |
Registrant’s
telephone number, including area code: (414) 355-0400
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On October 17, 2016, the Company issued a press release announcing its quarterly financial results for the 2016 third quarter ended September 30, 2016.
A copy of the press release issued by the Company announcing the foregoing is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(a) Financial Statements of Business Acquired.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Shell Company Transactions.
Not applicable.
(d) Exhibits.
The exhibit filed herewith is as listed in the accompanying Exhibit Index.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
BADGER METER, INC. |
||
|
|||
Date: | October 17, 2016 | By: |
/s/ Richard E. Johnson |
Richard E. Johnson |
|||
Senior Vice President – Finance and Treasurer |
|||
Chief Financial Officer |
Exhibit Index to Current Report on Form 8-K
Dated October
17, 2016
Exhibit Number |
Description |
|
(99.1) |
Badger Meter, Inc. Press Release, dated October 17, 2016. |
-3-
Exhibit 99.1
Badger Meter Reports Third Quarter Results
MILWAUKEE--(BUSINESS WIRE)--October 17, 2016--Badger Meter, Inc. (NYSE: BMI) today reported results for the third quarter ended September 30, 2016.
Third Quarter 2016 Highlights
First Nine Months of 2016 Highlights
Operations Review
“Our third quarter performance was in line with our expectations. The gross margin increased more than 7% and net earnings were up nearly 6% compared to the prior year quarter. The decrease in third quarter sales reflected a softening of order input early in the third quarter, however sales in the remainder of the quarter came in as anticipated,” said Richard A. Meeusen, chairman, president and chief executive officer of Badger Meter. He noted that third quarter net earnings and earnings per share were reduced by a non-cash pension settlement charge of $740,000 or nearly $0.02 per diluted share.
“Our sales of residential and commercial municipal water products into the Middle East were lower than in the third quarter of last year. Also, a backlog in integrating our BEACON® Advanced Metering Analytics (AMA) solution with customer billing systems, as discussed in last quarter’s conference call, delayed some shipments. We have allocated additional resources to address this issue and are making good progress in working through the backlog,” said Meeusen.
“The gross profit margin improved from 36.3% in the third quarter of 2015 to 40.1% in the third quarter of 2016. This was due in part to lower costs and margin contributions from Badger Meter’s company-owned distribution network. We are pleased with the growth of our distribution network and recently opened a new warehouse in Texas to support the continued expansion of this business,” he said.
“Customer response to our flagship municipal water products, including our E-Series® Ultrasonic meters and our BEACON AMA solution with ORION® cellular technology, continues to be very positive. This helped offset decreased sales of flow instrumentation products due to the continued weakness in the industrial markets we serve,” said Meeusen.
“Our year-to-date sales, earnings and earnings per share have increased substantially, driven primarily by our record first and second quarter performance. We anticipate a fourth quarter that is consistent with prior years, which would result in a strong 2016 for Badger Meter,” added Meeusen.
Conference Call
Badger Meter management will host a conference call to discuss the company’s 2016 third quarter results on Tuesday, October 18, 2016, at 10:00 AM Central/11:00 AM Eastern time.
Interested parties can listen to the call live on the Internet through the company’s website: www.badgermeter.com or by dialing 1-844-281-9843 and entering the passcode 80598215. Listeners should dial in to the call at least 5-10 minutes prior to the start of the call or should go to the website at least 15 minutes prior to the call to download and install any necessary audio software.
A telephone replay of the conference call will be available through Tuesday, October 25, 2016, by dialing 1-855-859-2056 and entering the passcode 80598215. The webcast will be archived on the company’s website until its next earnings release.
About Badger Meter
Badger Meter is an innovator in flow measurement, control and communications solutions, serving water utilities, municipalities, and commercial and industrial customers worldwide. The Company’s products measure water, oil, chemicals, and other fluids, and are known for accuracy, long-lasting durability and for providing valuable and timely measurement data. For more information, visit www.badgermeter.com.
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 in the forward looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “think,” “should,” “could” 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. Some risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward looking statements include those described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 that include, among other things:
All of these factors are beyond the Company's control to varying degrees. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward looking statements contained in this news release 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.
Badger Meter company news is available
24 hours a day, on-line at: http://www.badgermeter.com.
BADGER METER, INC. | ||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||||||||
(in thousands, except share and earnings per share data) | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | September 30, | September 30, | |||||||
2016 | 2015 | 2016 | 2015 | |||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
Net sales | $96,273 | $99,388 | $300,663 | $281,928 | ||||||
Cost of sales | 57,626 | 63,287 | 183,609 | 180,609 | ||||||
Gross margin | 38,647 | 36,101 | 117,054 | 101,319 | ||||||
Selling, engineering and administration | 24,705 | 22,477 | 75,384 | 68,460 | ||||||
Operating earnings | 13,942 | 13,624 | 41,670 | 32,859 | ||||||
Interest expense, net | 213 | 305 | 711 | 941 | ||||||
Earnings before income taxes | 13,729 | 13,319 | 40,959 | 31,918 | ||||||
Provision for income taxes | 4,937 | 4,992 | 14,777 | 11,463 | ||||||
Net earnings | $8,792 | $8,327 | $26,182 | $20,455 | ||||||
Earnings per share: | ||||||||||
Basic | $0.30 | $0.29 | $0.91 | $0.71 | ||||||
Diluted | $0.30 | $0.29 | $0.90 | $0.71 | ||||||
Shares used in computation of earnings per share: | ||||||||||
Basic | 28,898,526 | 28,785,034 | 28,879,307 | 28,746,940 | ||||||
Diluted | 29,060,832 | 28,913,242 | 29,039,807 | 28,882,331 | ||||||
|
BADGER METER, INC. | |||||||||
CONSOLIDATED CONDENSED BALANCE SHEETS | |||||||||
(in thousands) | |||||||||
Assets |
September 30, | December 31, | |||||||
2016 | 2015 | ||||||||
(Unaudited) | |||||||||
Cash | $ | 10,669 | $ | 8,163 | |||||
Receivables | 57,969 | 56,643 | |||||||
Inventories | 82,437 | 78,596 | |||||||
Other current assets | 5,672 | 5,926 | |||||||
Total current assets | 156,747 | 149,328 | |||||||
Net property, plant and equipment | 90,159 | 90,920 | |||||||
Intangible assets, at cost less accumulated amortization | 52,810 | 57,348 | |||||||
Other long-term assets | 9,433 | 9,906 | |||||||
Goodwill | 47,978 | 47,978 | |||||||
Total assets | $ | 357,127 | $ | 355,480 | |||||
Liabilities and Shareholders' Equity |
|||||||||
Short-term debt | $ | 49,730 | $ | 71,360 | |||||
Payables | 19,296 | 19,155 | |||||||
Accrued compensation and employee benefits | 12,802 | 9,663 | |||||||
Other liabilities | 5,827 | 4,366 | |||||||
Total current liabilities | 87,655 | 104,544 | |||||||
Long-term employee benefits and other | 16,963 | 18,661 | |||||||
Shareholders' equity | 252,509 | 232,275 | |||||||
Total liabilities and shareholders' equity | $ | 357,127 | $ | 355,480 | |||||
|
CONTACT:
Badger Meter, Inc.
Dawn O’Neill (414) 371-7276