Badger Meter Q3 Report 2022

 Highlights

• Record total sales of $148.0 million, 15% higher than the prior year’s $128.7 million. Excluding the unfavorable impact of the stronger US dollar, sales increased nearly 17%
• Operating profit increased 23% with operating profit margins expanding 100 basis points year-over-year
• Diluted earnings per share (EPS) increased 13% to $0.61, up from $0.54 in the comparable prior year period
• Strong cash flow with $23.8 million in net cash provided by operations
• Announced the 30^th consecutive increase in the annual dividend rate

Operating earnings increased 23% year-over-year, with operating profit margins expanding 100 basis points to 16.1% in the third quarter of 2022 up from the prior year’s 15.1%.

• • Gross margin as a percent of sales was 38.9%, in the middle of the Company’s normalized range, yet as anticipated, below the prior year’s 39.8%. The cumulative impact of input cost inflation across various electronic and other components, logistics and other categories were partially offset by higher sales volumes and ongoing pricing gains.

Selling, engineering and administration (SEA) expenses in the third quarter of 2022 were $33.7 million, or 22.7% as a percent of sales, compared to $31.7 million, and 24.7% in the comparable prior year quarter.