Badger Meter, Inc. (NYSE:BMI) Q3 2023 Results Conference Call October 19, 2023 11:00 AM ET

Company Participants

Karen Bauer - VP, IR, Corporate Strategy and Treasurer

Ken Bockhorst - Chairman, President and CEO

Bob Wrocklage - CFO

Conference Call Participants

Rob Mason - Baird

Adam Farley - Stifel

Andrew Krill - Deutsche Bank

Tate Sullivan - Maxim Group

Operator

Ladies and gentlemen, welcome to the Third Quarter 2023 Badger Meter Earnings Conference Call. [Operator Instructions] As a reminder, today’s conference is being recorded.

It is now my pleasure to turn the conference over to Karen Bauer, Vice President of Investor Relations, Corporate Strategy and Treasurer.

Karen Bauer

Good morning and thank you for joining the Badger Meter third quarter 2023 earnings conference call.

On the call with me today are Ken Bockhorst, Chairman, President and Chief Executive Officer; and Bob Wrocklage, Chief Financial Officer. The earnings release and related slide presentation are available on our website.

Quickly, I will cover the safe harbor, reminding you that any forward-looking statements made during this call are subject to various risks and uncertainties, the most important of which are outlined in our press release and SEC filings. On today’s call, we will refer to certain non-GAAP financial metrics. Our earnings slides provide a reconciliation of the GAAP to non-GAAP financial metrics used.

With that, I’ll turn the call over to Ken.

Ken Bockhorst

Thanks, Karen, and thank you for joining our third quarter earnings call.

The Badger Meter team delivered another record quarter with continued strong sales, operating profit and EPS growth year-over-year. Demand for our differentiated and tailorable digital smart water solutions remains robust and improving supply chain dynamics allowed us to make modest headway into the elevated backlog. I want to thank all of our employees for their focused efforts in serving our customers.

I’ll provide an update on the macro environment and market outlook later in the call. For now, I’ll turn it over to Bob to go through the details of the quarter.

Bob Wrocklage

Thanks, Ken, and good morning everyone.

Turning to slide 4, our total sales in the third quarter reached yet another record at $186.2 million, an increase of 26%, compared to $148 million in the same period last year. This increase was on top of 15% year-over-year growth in Q3 last year, and 13% in the prior year.

To put our multi-year organic sales trend line into perspective. Third quarter 2023 sales are more than 60% above pre-COVID-19 2019 levels, which equates to about 13% compounded annual growth on an organic basis.