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Mar 31, 2021

Badger Meter Q1 2021 Earnings Report

Badger Meter reported a strong quarter with sales, margin, EPS, and cash flow increasing.

Key Takeaways

Badger Meter reported a strong first quarter with total sales of $117.8 million, a 9% increase compared to the prior year. Diluted EPS increased by 15% to $0.47, and the company generated $30.6 million in cash from operations. The company also deployed $44 million to acquire Analytical Technologies, Inc (ATi).

Total sales increased by 9% to $117.8 million compared to the prior year.

Diluted earnings per share (EPS) increased by 15% to $0.47.

Cash from operations was robust at $30.6 million.

Acquired Analytical Technologies, Inc (ATi) for $44 million to enhance water quality monitoring offerings.

Total Revenue
$118M
Previous year: $109M
+8.6%
EPS
$0.47
Previous year: $0.41
+14.6%
Operating Margin
15.1%
Previous year: 14.8%
+2.0%
Gross Margin
41.9%
Previous year: 39.9%
+5.0%
Gross Profit
$49.4M
Previous year: $43.3M
+13.9%
Cash and Equivalents
$51.4M
Previous year: $70.4M
-27.0%
Free Cash Flow
$28.8M
Previous year: $28.6M
+0.7%
Total Assets
$486M
Previous year: $431M
+12.8%

Badger Meter

Badger Meter

Forward Guidance

The company is confident in its short and long-term growth trajectory, despite electronics shortages and logistics bottlenecks.

Positive Outlook

  • Strong operational agility will support customers through effective sourcing and supply chain management.
  • Fundamental long-term drivers supporting offerings are clear.
  • Well-positioned to capitalize on the growing momentum in demand.
  • Robust order rates, record backlog and expanding pipeline of potential business
  • Capturing and providing real-time data empowers customers to make smarter operational decisions with positive sustainability benefits.

Challenges Ahead

  • Universal electronics shortages continue to present challenges.
  • Logistics bottlenecks continue to present challenges.
  • Navigating intermittent disruptions are likely to add to the traditionally “uneven” sales patterns during the year.
  • Rising brass input costs
  • Short-term margin impact from the fair value step-up of acquired inventory at s::can and ATi.