Slide 1: Fourth Quarter/Full Year 2019 Earnings
BADGER METER FOURTH QUARTER/FULL YEAR 2019 EARNINGS February 5, 2020 © 2020 Badger Meter, Inc. 1
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements contained in this presentation as well as other information provided from time to time by the Company or its employees, may contain forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from
Slide 3: Highlights
HIGHLIGHTS Adj. EBITDA Margin % * Q4 2019 • Fourth quarter sales growth of 3% 20.2% 20.7% 20.3% 19.3% • Municipal water sales increase of 8%; strong interest in new technology products and solutions • Flow instrumentation sales decline of 11%; 2018 2019 sluggish industrial demand globally Free Cash
Slide 4: Fourth Quarter Financial Snapshot
FOURTH QUARTER FINANCIAL SNAPSHOT (US$ in millions, except per share data) Q4 2019 Q4 2018* Change • Municipal water sales increased 8%; Sales $107.6 $104.4 3.0% favorable mix to higher technology products and services Gross Margin 41.1 40.2 2.4% 38.2% 38.5% (30) bps • Flow instrumentation sales dec
Slide 5: Advantages of Cellular Radio Offerings Continue to Gain Momentum
ADVANTAGES OF CELLULAR RADIO OFFERINGS CONTINUE TO GAIN MOMENTUM Consumer Electronics Show Honoring the 50 most Panel - Network Infrastructure transformative smart Is Key to Smart Cities projects each year 70% of IoT devices will use cellular connections by 2022 • Award Winner - City of Columbia, SC
Slide 6: Outlook / Strategic Initiatives
OUTLOOK / STRATEGIC INITIATIVES • Build on leading market position with comprehensive and tailorable solutions across our differentiated metering, communication and data analytics offerings • Invest in further development of software and actionable intelligence to help customers reduce costs, improv
Slide 7: Q&A
Q&A Note: For your planning purposes, our Q1 2020 earnings release/call is tentatively scheduled for April 16, 2020 © 2020 Badger Meter, Inc. 7
Slide 8: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Adjusted EBITDA Free Cash Flow (US$ in millions) (US$ in millions) Q4 2019 Q4 2018 2019 2018 Q4 2019 Q4 2018 Net Earnings (GAAP) $12.3 $11.2 $47.2 $27.8 Cash from Ops (GAAP) $19.6 $20.4 Pension settlement charge 0.0 0.0 0.0 19.9 Capital Expenditures (1.9) (1.4) Execu
Slide 9: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS (US$ in millions except per share data) Q4 2018 Full Year 2018 GAAP Adjustments Adjusted GAAP Adjustments Adjusted Sales $104.4 $104.4 $433.7 $433.7 Gross margin 40.2 40.2 162.4 162.4 SEA 25.3 (0.5) 24.9 105.5 (2.6) 102.9 Operating income 14.8 0.5 15.3 56.9 2.6 59.4