Slide 1: Second Quarter 2020 Earnings
BADGER METER SECOND QUARTER 2020 EARNINGS July 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 EBITDA Margin % * Q2 YTD • Navigated rapidly changing COVID-19 conditions and 20.4% 20.7% 20.6% 20.0% impact to market, customers, suppliers and employees • Second quarter sales of $91.1 million, down 12% year- over-year • Municipal water sales declined 9% with April low point due to stay
Slide 4: Second Quarter Financial Snapshot
SECOND QUARTER FINANCIAL SNAPSHOT (US$ in millions, except per share data) Q2 2020 Q2 2019 Change • Municipal water sales declined 9% with April trough in demand, improved Sales $91.1 $103.5 -12.0% thereafter. Build of backlog with manufacturing disruption. Mix favorable Gross Margin 35.9 40.3 -11.2
Slide 5: Current Environment
CURRENT ENVIRONMENT • Overall activity in end markets stabilized to varying degrees after April trough • Municipal projects/bids/orders proceeding, with some isolated delays as remote work and virtual approval processes impact timing • Flow instrumentation industrial markets “lower for longer” • Sup
Slide 6: Outlook
OUTLOOK • Economic environment stabilizing, solid backlog and bid pipeline • Continued uncertainty could weigh on demand and municipal budgets longer term • Focus on what we can control: • Investing in R&D / launch of new products – E-Series Ultrasonic Plus meter with integrated control valve • Adap
Slide 7: Q&A
Q&A Note: For your planning purposes, our Q3 2020 earnings release/call is tentatively scheduled for October 16, 2020 © 2020 Badger Meter, Inc. 7
Slide 8: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS EBITDA Free Cash Flow (US$ in millions) (US$ in millions) Q2 2020 Q2 2019 YTD 2020 YTD 2019 Q2 2020 Q2 2019 Net Earnings (GAAP) $9.5 $11.4 $21.4 $22.2 Cash from Ops (GAAP) $21.7 $23.1 Interest expense 0.1 0.1 0.1 0.2 Capital Expenditures (1.6) (2.3) Income tax provis