Slide 1: First Quarter 2020 Earnings
BADGER METER FIRST QUARTER 2020 EARNINGS April 16, 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 Badger Meter, Inc. (the “company”) or its employees, may contain forward looking statements that involve risks and uncertainties that could cause actual results to
Slide 3: Highlights
HIGHLIGHTS Q1 EBITDA Margin % 20.5% 19.6% • Rapidly implemented health, safety and business continuity plans to operate in support of our essential industries • First quarter sales growth of 3% • Municipal water sales increased 6% with strong 2019 2020 interest in new technology products and solutio
Slide 4: First Quarter Financial Snapshot
FIRST QUARTER FINANCIAL SNAPSHOT (US$ in millions, except per share data) Q1 2020 Q1 2019 Change • Municipal water sales increased 6%; Sales $108.5 $104.9 3.4% favorable mix to higher technology products and services Gross Margin 43.3 40.5 6.9% 39.9% 38.6% 130 bps • Flow instrumentation sales declin
Slide 5: Current State / Actions
CURRENT STATE / ACTIONS Meters in northern US • Overall activity in end markets slowing are in basements. • Project delays, order deferrals and channel inventory destocking However, in the south and west, they are in • Potential supply disruption, cargo capacity constraints, component front yard pit
Slide 6: Outlook
OUTLOOK Solid Financial Position At 3/31/2020 (in millions) • Near-term business outlook remains highly uncertain – length and severity of economic impact unknown Cash $70.4 Debt ($ 4.4) • What we do know: Net Cash $66.0 • Record first quarter 2020 – across all financial metrics • Strong bid pipelin
Slide 7: Q&A
Q&A Note: For your planning purposes, our Q2 2020 earnings release/call is tentatively scheduled for July 16, 2020 © 2020 Badger Meter, Inc. 7
Slide 8: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS EBITDA Free Cash Flow (US$ in millions) (US$ in millions) Q1 2020 Q1 2019 Q1 2020 Q1 2019 Net Earnings (GAAP) $11.9 $10.8 Cash from Ops (GAAP) $30.5 $17.8 Interest expense 0.0 0.1 Capital Expenditures (1.9) (2.2) Income tax provision 4.1 3.3 Free Cash Flow $28.6 $15.