Dec 31, 2020

Badger Meter Q4 2020 Earnings Report

Badger Meter reported a strong fourth quarter, marked by a 4% increase in sales and strategic acquisitions.

Key Takeaways

Badger Meter reported a 4% increase in sales for Q4 2020, reaching $112.3 million. The company's net earnings were $13.1 million, with diluted EPS at $0.45. The acquisition of s::can GmbH contributed to the sales increase, while utility water sales also saw growth. The company is confident in its growth plans and the long-term drivers of its offerings.

Total sales increased by 4% to $112.3 million compared to the prior year quarter.

Net earnings reached $13.1 million, with diluted EPS at $0.45.

The acquisition of s::can GmbH added online water quality monitoring solutions.

Utility water sales increased by 8%, with s::can contributing approximately 3% of the increase.

Total Revenue
$112M
Previous year: $108M
+4.4%
EPS
$0.45
Previous year: $0.42
+7.1%
Operating Margin
15.1%
Previous year: 15.2%
-0.7%
SEA as % of Sales
24.1%
Previous year: 23%
+4.8%
Gross Profit
$44.1M
Previous year: $41.1M
+7.1%
Cash and Equivalents
$72.3M
Previous year: $48.9M
+47.9%
Free Cash Flow
$12.7M
Previous year: $17.7M
-28.1%
Total Assets
$468M
Previous year: $422M
+11.0%

Badger Meter

Badger Meter

Forward Guidance

Badger Meter anticipates the overall economic environment will remain uncertain but is confident in its strategic growth plans and the fundamental long-term drivers of its offerings. Strategic pricing initiatives have and continue to be implemented, the recent rapid and significant escalation in brass costs may be an impediment to near-term margin expansion opportunities.

Positive Outlook

  • Confident in strategic growth plans.
  • Leveraging industry-leading ORION® Cellular endpoints.
  • Creating robust digital solutions to operationalize real-time data.
  • Inclusion of s::can and ATi portfolio of water quality monitoring solutions.
  • Order backlog, sales momentum, and encouraging pipeline of potential business gives us confidence as we start the new year.

Challenges Ahead

  • Overall economic environment will remain uncertain.
  • Recent rapid and significant escalation in brass costs may be an impediment to near-term margin expansion opportunities.
  • COVID-19 pandemic may have potential negative impacts on the global economy.
  • General economic conditions may affect results.
  • Variation in demand from customers may affect results.