Badger Meter Half-Year Report 2022

Highlights

• Total sales of $137.8 million increased 12% over the prior year’s $122.9 million. Excluding the unfavorable impact of the stronger US dollar, sales increased nearly 14%
• Diluted earnings per share (EPS) increased 19% to $0.57 compared to $0.48 in the comparable prior year period
• Operating profit margins expanded 80 basis points year-over-year
• Robust demand environment continued with a strong order pace and record backlog
• Strong cash flow with $19.7 million in net cash provided by operations

Operating margin was 16.0% in the second quarter of 2022, an 80 basis point improvement from the prior year’s 15.2%.

• • Gross margin as a percent of sales was 39.7%, an increase of 140 basis points sequentially, as the pacing of price realization and manufacturing output improved.
  • Gross margin as a percent of sales declined from the prior year’s 40.8%, as expected, as elevated material, logistics, and other costs were partially offset by higher sales volumes and pricing gains.

Selling, engineering, and administration (“SEA”) expenses in the second quarter of 2022 were $32.7 million, or 23.7% as a percent of sales, compared to $31.4 million, and 25.6% in the comparable prior-year quarter.