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) February
6, 2017
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 February 6, 2017, the Company issued a press release announcing its quarterly financial results for the 2016 fourth quarter ended December 31, 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: | February 6, 2017 | 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 February
6, 2017
Exhibit Number |
Description |
|
(99.1) |
Badger Meter, Inc. Press Release, dated February 6, 2017. |
-4-
Exhibit 99.1
Badger Meter Reports Record Sales, Earnings and Earnings Per Share for 2016
MILWAUKEE--(BUSINESS WIRE)--February 6, 2017--Badger Meter, Inc. (NYSE: BMI) today reported results for the fourth quarter and year ended December 31, 2016.
Fourth Quarter 2016 Highlights
Full Year 2016 Highlights
Operations Review
“The fourth quarter of 2016 capped off a record year for net sales and earnings. Strong municipal water domestic sales helped to offset lower international sales, which tend to be sporadic, as well as continued weakness in key flow instrumentation markets including oil and gas. The gross margin for the quarter was 36%, consistent with last year. Selling, engineering and administration expenses were down slightly as we controlled costs related particularly to flow instrumentation, while continuing to invest in innovation,” said Richard A. Meeusen, chairman, president and chief executive officer of Badger Meter. He added that fourth quarter net earnings and earnings per share were reduced by a non-cash pre-tax pension settlement charge of $770,000 or nearly $0.02 per diluted share.
Meeusen said the record 2016 annual net sales were driven by strong demand in the domestic municipal water market and the continued migration of many water utilities to the latest industry-leading Badger Meter technologies for meters, radios and software. These include the company’s ORION® cellular technology, E-Series® Ultrasonic meters and BEACON® Advanced Metering Analytics (AMA) software.
“We are very pleased with our record results for 2016. The higher net sales were primarily driven by double-digit increases in sales of our newest products, our E-Series® meters and ORION® cellular endpoints. The gross profit margin improved from 35.9% in 2015 to 38.2% for 2016. The increase was due to a more favorable product mix, with higher sales of newer products with stronger margins, the impact of higher volumes on plant utilization and favorable brass costs for much of the year. We finished the year with a solid 24.5% increase in net earnings,” said Meeusen. He noted that 2016 net earnings and earnings per share were reduced by a non-cash pre-tax pension settlement charges in the third and fourth quarters totaling $1.5 million or over $0.03 per diluted share.
“Badger Meter remains financially strong. Our debt-to-total capitalization ratio was 12.9% at year end, compared to 23.5% at the end of 2015. Cash generated from operations exceeded $55 million and set a new company record. We increased the quarterly cash dividend for the 24th consecutive year and also invested in new products, product enhancements and strategic acquisitions that position us for the future,” added Meeusen.
2017 Outlook
“Despite some headwinds in material costs, 2017 is off to a good start. We are optimistic about the continued growth of our successful new products in the municipal water market and believe the flow instrumentation market may be recovering. We look forward to executing on our long-term growth strategies in the year ahead,” said Meeusen.
Conference Call and Webcast
Badger Meter management will hold a conference call to discuss the company’s fourth quarter 2016 results on Tuesday, February 7, 2017, 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 46057671. 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, February 14, 2017, by dialing 1-855-859-2056 and entering the passcode 46057671. 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 and communicating 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, 2016 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 | Twelve Months Ended | |||||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||
Net sales | $ | 93,098 | $ | 95,770 | $ | 393,761 | $ | 377,698 | ||||||||||
Cost of sales | 59,576 | 61,313 | 243,185 | 241,922 | ||||||||||||||
Gross margin | 33,522 | 34,457 | 150,576 | 135,776 | ||||||||||||||
Selling, engineering and administration | 24,427 | 24,947 | 99,811 | 93,407 | ||||||||||||||
Operating earnings | 9,095 | 9,510 | 50,765 | 42,369 | ||||||||||||||
Interest expense, net | 210 | 276 | 921 | 1,217 | ||||||||||||||
Earnings before income taxes | 8,885 | 9,234 | 49,844 | 41,152 | ||||||||||||||
Provision for income taxes | 2,772 | 3,751 | 17,549 | 15,214 | ||||||||||||||
Net earnings | $ | 6,113 | $ | 5,483 | $ | 32,295 | $ | 25,938 | ||||||||||
Earnings per share: | ||||||||||||||||||
Basic | $ | 0.21 | $ | 0.19 | $ | 1.12 | $ | 0.90 | ||||||||||
Diluted | $ | 0.21 | $ | 0.19 | $ | 1.11 | $ | 0.90 | ||||||||||
Shares used in computation of earnings per share: | ||||||||||||||||||
Basic | 28,909,740 | 28,791,430 | 28,887,479 | 28,758,534 | ||||||||||||||
Diluted | 29,077,528 | 28,928,382 | 29,049,801 | 28,894,315 | ||||||||||||||
BADGER METER, INC. | ||||||||
CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||||
(in thousands) | ||||||||
Assets |
December 31, | December 31, | ||||||
2016 | 2015 | |||||||
(Unaudited) | ||||||||
Cash | $ | 7,338 | $ | 8,163 | ||||
Receivables | 59,818 | 56,643 | ||||||
Inventories | 77,701 | 78,596 | ||||||
Other current assets | 6,155 | 5,926 | ||||||
Total current assets | 151,012 | 149,328 | ||||||
Net property, plant and equipment | 90,194 | 90,920 | ||||||
Intangible assets, at cost less accumulated amortization | 51,872 | 57,348 | ||||||
Other long-term assets | 7,625 | 9,906 | ||||||
Goodwill | 49,314 | 47,978 | ||||||
Total assets | $ | 350,017 | $ | 355,480 | ||||
Liabilities and Shareholders' Equity |
||||||||
Short-term debt | $ | 37,950 | $ | 71,360 | ||||
Payables | 18,350 | 19,155 | ||||||
Accrued compensation and employee benefits | 13,861 | 9,663 | ||||||
Other liabilities | 5,677 | 4,366 | ||||||
Total current liabilities | 75,838 | 104,544 | ||||||
Deferred income taxes | 2,219 | 774 | ||||||
Long-term employee benefits and other | 15,751 | 17,887 | ||||||
Shareholders' equity | 256,209 | 232,275 | ||||||
Total liabilities and shareholders' equity | $ | 350,017 | $ | 355,480 | ||||
CONTACT:
Badger Meter, Inc.
Dawn O’Neill, (414) 371-7276