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Badger Meter Inc Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: April 27, 2011 09:39PM
Badger Meter Inc (BMI) filed Quarterly Report for the period ended 2011-03-31. Badger Meter Inc. has a market cap of $547.5 million; its shares were traded at around $36.38 with a P/E ratio of 20.6 and P/S ratio of 2. The dividend yield of Badger Meter Inc. stocks is 1.5%. Badger Meter Inc. had an annual average earning growth of 44.8% over the past 10 years. GuruFocus rated Badger Meter Inc. the business predictability rank of 3.5-star.
Highlight of Business Operations:
On January 26, 2011, the Company purchased Remag of Berne, Switzerland for $4.9 million. Remag distributes a line of precision flow measurement products, some of which they manufacture, for the global industrial market. Their small turbine meters complement and expand the Companys existing line of specialty application products. The Companys preliminary purchase price allocation at March 31, 2011 included $0.9 million of cash, plus approximately $0.4 million of receivables, $0.4 million of inventory, $0.3 million of other assets, $1.9 million of property, plant and equipment, $1.7 million of intangibles, and $0.7 million of liabilities.
The Companys net sales for the three months ended March 31, 2011 decreased $4.4 million, or 7.2%, to $57.4 million compared to $61.8 million during the same period in 2010. The decline was due to lower sales of water application products, offset somewhat by higher sales of specialty application products. Also included in the first quarter of 2011 results were approximately $1.8 million of sales related to Cox Flow Measurement (Cox), which was acquired in April 2010, and $0.5 million of sales related to Remag that were not included in the prior year amounts.
Specialty application products represented 26.7% of sales for the three months ended March 31, 2011 compared with 14.4% for the same period in 2010. These sales increased $6.5 million in the first quarter of 2011, or 73.0%, to $15.4 million from $8.9 million during the same period in 2010. The increase in sales included $2.3 million for Cox and Remag. The remainder of the increase was due to increased sales of radio technology to natural gas customers for connection to their gas meters and higher sales of automotive fluid meters and valves, both domestically and internationally.
As a result of the overall lower sales and higher costs, operating earnings declined $3.5 million, or 40.1%, to $5.2 million compared to $8.7 million in 2010.
As a result of the above mentioned items, net earnings for the three months ended March 31, 2011 were $3.3 million, or $0.22 per diluted share, compared to $5.4 million, or $0.36 per diluted share, in 2010.
Inventories at March 31, 2011 increased $4.2 million to $52.5 million from $48.3 million at December 31, 2010. The increase was due to higher material costs, particularly castings of which copper is a main component, increased lead times for electronics and lower than anticipated sales in the first quarter of 2011.
Stocks Discussed: BMI,