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Badger Meter Inc Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: April 26, 2012 08:17PM
Badger Meter Inc (BMI) filed Quarterly Report for the period ended 2012-03-31. Badger Meter has a market cap of $550.4 million; its shares were traded at around $38.07 with a P/E ratio of 23.2 and P/S ratio of 2.1. The dividend yield of Badger Meter stocks is 1.7%. Badger Meter had an annual average earning growth of 14.8% over the past 10 years.
Highlight of Business Operations:The Companys net sales for the three months ended March 31, 2012 increased nearly $18.8 million, or 32.8%, to $76.2 million compared to $57.4 million during the same period in 2011. The increase was due in part to the inclusion in the first quarter of 2012 of Racine Federateds sales as a result of the acquisition on January 31, 2012. Racine Federateds sales for the two months since the acquisition date were $7.4 million. The remainder of the increase was due primarily to higher municipal water product sales, offset by lower sales of specialty product sales due to fewer radios sold to natural gas utilities.
Municipal water sales increased $13.4 million, or 34.4%, from $38.9 million in the first quarter of 2011 to $52.3 million in the first quarter of 2012. These sales represented 68.6% of sales for the three months ended March 31, 2012. The increase was due principally to higher sales of residential meters sold with technology and higher commercial meter sales. Sales of the Companys ORION AMR technology products increased 36.1%, while sales of the Itron related products increased 18.3%. In the most recent period, ORION related products outsold Itron related products by a ratio of 3.1 to 1. In both cases, the sales increases were due to higher volumes of product sold. Manual residential meter sales declined due to somewhat lower volumes. Commercial meter sales increased 51.0% in this period over the same period in 2011 due to higher volumes of products sold. Sales of Galaxy fixed network related products increased 80.2% on significantly higher volumes. The Company believes the net overall volume increases represent a return to more normal buying patterns following a period of uncertainty about a number of factors, including municipal spending concerns that had been delaying ordering
Industrial flow products represented 23.3% of sales for the three months ended March 31, 2012. These sales increased $8.1 million, or 84.4%, to $17.7 million from $9.6 million in the same period last year. As noted above, Racine Federated was acquired on January 31, 2012 and their sales were included from that point forward. Within this product grouping, Racine Federateds sales were $5.9 million. The remainder of the increase was due to higher sales in nearly all product lines due to higher volumes.
Specialty application products represented 8.1% of sales for the three months ended March 31, 2012. These sales decreased $2.7 million in the first quarter of 2012, or 30.3%, to $6.2 million from $8.9 million during the same period in 2011. Included in this product grouping was $1.5 million in sales from Racine Federated, which mitigated the overall decline in this group. The decrease in sales was due to an 83% decline in sales of radios into the natural gas market. The first quarter of 2011 included significant sales of radios to one particular natural gas customer that did not recur this quarter. This decline was also offset slightly by higher sales of the Companys valve products.
Operating earnings for the first quarter of 2012 increased $5.0 million, or 94.5%, to $10.2 million compared to $5.2 million in 2011, due to higher sales of municipal water products, the addition of Racine Federated and slightly lower product costs.
Stocks Discussed: BMI,