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Badger Meter Inc Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: April 27, 2010 01:35PM
Badger Meter Inc (BMI) filed Quarterly Report for the period ended 2010-03-31. Badger Meter Inc has a market cap of $636.6 million; its shares were traded at around $42.51 with a P/E ratio of 25.2 and P/S ratio of 2.5. The dividend yield of Badger Meter Inc stocks is 1.1%. Badger Meter Inc had an annual average earning growth of 19.3% over the past 10 years. GuruFocus rated Badger Meter Inc the business predictability rank of 3-star.BMI is in the portfolios of Bill Frels of MAIRS & POWER INC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
The Companys net sales for the three months ended March 31, 2010 decreased $3.5 million, or 5.4%, to $61.8 million from $65.3 million in the same period in 2009. The decline was due primarily to lower sales volumes of water application products, offset somewhat by higher volumes of specialty application products and higher prices.
Water application products represented 85.6% of sales for the three months ended March 31, 2010 compared to 90.2% for the same period in 2009. Sales declined $6.0 million, or 10.2%, to $52.9 million compared to $58.9 million in the same period in 2009. The decline was attributable to lower volumes of meters sold, both with and without technologies. Sales of the Companys ORION AMR technology products decreased 11.1% from the first quarter of 2009, while sales of the Itron related products declined nearly 28.0%. In the most recent period, Orion related products outsold Itron related products by a ratio of 3.3 to 1. Commercial sales decreased 5.0%. The slowdown experienced in 2009 due to economic conditions and delayed purchasing decisions caused by uncertainties over the availability of funds under U.S. government stimulus programs continued into 2010. The Company believes stimulus spending decisions made in mid-February 2010 helped ease the uncertainties and caused some of the delayed purchases to begin to resume.
Specialty products represented 14.4% of sales for the first three months of 2010 compared with 9.8% for the same period in 2009. These sales increased nearly $2.5 million, or 39.1%, to $8.9 million from $6.4 million in the first quarter of 2009. Most of the increase was due to increased sales of radio technology to natural gas utilities for connection to their gas meters. Other specialty products showed modest increases over first quarter 2009 levels, which were low due to economic conditions.
As a result of the above mentioned items, net earnings for the three months ended March 31, 2010 were $5.4 million compared to $7.0 million in the three month period ended March 31, 2009. On a diluted basis, earnings per share were $0.36 for the first quarter of 2010 compared to $0.47 for the same period in 2009.
Short-term debt at March 31, 2010 decreased slightly to $2.3 million compared to the balance at December 31, 2009 of $2.6 million as cash provided from operations during the three months ended March 31, 2010 was used to pay down short-term debt. During the same period, current maturities of long-term debt decreased by $2.5 million to $2.9 million at March 31, 2010 due to regularly scheduled payments. All of the Companys debt is unsecured and does not carry any financial covenants.
Payables increased to $14.3 million at March 31, 2010 from $10.8 million at December 31, 2009 primarily due to the timing of payments. Accrued compensation and employee benefits at March 31, 2010 increased to $6.3 million from $6.1 million at December 31, 2009 due to the current year accruals for employee incentive compensation, offset somewhat by the payment of employee incentive compensation amounts earned at December 31, 2009.
Stocks Discussed: BMI,