Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 12, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BMI | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity Registrant Name | BADGER METER, INC. | |
Entity Central Index Key | 0000009092 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 29,411,720 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-06706 | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-0143280 | |
Entity Address, Address Line One | 4545 W. Brown Deer Road | |
Entity Address, City or Town | Milwaukee | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53233 | |
City Area Code | (414) | |
Local Phone Number | 355-0400 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 226,212 | $ 191,782 |
Receivables | 106,229 | 83,507 |
Inventories: | ||
Finished goods | 38,867 | 34,764 |
Work in process | 39,315 | 41,261 |
Raw materials | 83,084 | 77,649 |
Total inventories | 161,266 | 153,674 |
Prepaid expenses and other current assets | 15,510 | 13,214 |
Total current assets | 509,217 | 442,177 |
Property, plant and equipment, at cost | 229,409 | 225,988 |
Less accumulated depreciation | (156,955) | (152,110) |
Net property, plant and equipment | 72,454 | 73,878 |
Intangible assets, at cost less accumulated amortization | 50,178 | 53,737 |
Other assets | 13,350 | 11,249 |
Deferred income taxes | 22,706 | 22,715 |
Goodwill | 113,355 | 113,163 |
Total assets | 781,260 | 716,919 |
Current liabilities: | ||
Payables | 96,011 | 81,807 |
Accrued compensation and employee benefits | 21,768 | 29,871 |
Warranty and after-sale costs | 13,849 | 11,102 |
Other current liabilities | 6,491 | 9,168 |
Total current liabilities | 138,119 | 131,948 |
Long-term deferred revenue | 59,449 | 49,763 |
Deferred income taxes | 4,838 | 5,061 |
Accrued non-pension postretirement benefits | 3,798 | 3,614 |
Other accrued employee benefits | 6,016 | 5,293 |
Other long-term liabilities | 5,902 | 4,758 |
Commitments and contingencies (Note 5) | ||
Shareholders’ equity: | ||
Common stock, $1 par, authorized 80,000,000, issued 37,221,098 at June 30, 2024 and December 31, 2023 | 37,221 | 37,221 |
Capital in excess of par value | 62,915 | 59,185 |
Reinvested earnings | 505,040 | 458,719 |
Accumulated other comprehensive loss | (5,343) | (1,646) |
Less: Treasury stock, at cost, 7,809,378 shares at June 30, 2024 and 7,873,781 shares at December 31, 2023 | (36,695) | (36,997) |
Total shareholders’ equity | 563,138 | 516,482 |
Total liabilities and shareholders’ equity | $ 781,260 | $ 716,919 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 37,221,098 | 37,221,098 |
Treasury stock, shares (in shares) | 7,809,378 | 7,873,781 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 216,658 | $ 175,858 | $ 412,938 | $ 334,959 |
Cost of sales | 131,290 | 106,424 | 250,392 | 202,709 |
Gross margin | 85,368 | 69,434 | 162,546 | 132,250 |
Selling, engineering and administration | 43,856 | 39,932 | 84,456 | 77,702 |
Operating earnings | 41,512 | 29,502 | 78,090 | 54,548 |
Interest income, net | (1,862) | (827) | (3,389) | (1,449) |
Other pension and postretirement costs | 12 | 33 | 25 | 65 |
Earnings before income taxes | 43,362 | 30,296 | 81,454 | 55,932 |
Provision for income taxes | 10,306 | 7,803 | 19,267 | 14,024 |
Net earnings | $ 33,056 | $ 22,493 | $ 62,187 | $ 41,908 |
Earnings per share: | ||||
Basic | $ 1.13 | $ 0.77 | $ 2.12 | $ 1.43 |
Diluted | 1.12 | 0.76 | 2.11 | 1.42 |
Dividends declared per common share | $ 0.27 | $ 0.23 | $ 0.54 | $ 0.45 |
Shares used in computation of earnings per share: | ||||
Basic | 29,361,034 | 29,272,693 | 29,341,407 | 29,264,166 |
Impact of dilutive securities | 167,904 | 174,832 | 170,955 | 170,301 |
Diluted | 29,528,938 | 29,447,525 | 29,512,362 | 29,434,467 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 33,056 | $ 22,493 | $ 62,187 | $ 41,908 |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | (44) | 88 | (3,633) | 1,845 |
Pension and postretirement benefits, net of tax | (31) | (33) | (64) | (65) |
Comprehensive income | $ 32,981 | $ 22,548 | $ 58,490 | $ 43,688 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating activities: | ||
Net earnings | $ 62,187 | $ 41,908 |
Adjustments to reconcile net earnings to net cash provided by operations: | ||
Depreciation | 5,741 | 5,438 |
Amortization | 10,360 | 8,416 |
Deferred income taxes | 0 | (376) |
Noncurrent employee benefits | (21) | (222) |
Stock-based compensation expense | 3,281 | 2,607 |
Changes in: | ||
Receivables | (23,217) | (6,503) |
Inventories | (7,256) | (23,753) |
Payables | 13,339 | 8,104 |
Prepaid expenses and other assets | (8,489) | (4,980) |
Other liabilities | 1,954 | 10,100 |
Total adjustments | (4,308) | (1,169) |
Net cash provided by operations | 57,879 | 40,739 |
Investing activities: | ||
Property, plant and equipment expenditures | (5,017) | (6,935) |
Acquisitions, net of cash acquired | (3,000) | (17,127) |
Net cash used for investing activities | (8,017) | (24,062) |
Financing activities: | ||
Dividends paid | (15,876) | (13,217) |
Proceeds from exercise of stock options | 751 | 58 |
Net cash used for financing activities | (15,125) | (13,159) |
Effect of foreign exchange rates on cash | (307) | 235 |
Increase in cash and cash equivalents | 34,430 | 3,753 |
Cash and cash equivalents - beginning of period | 191,782 | 138,052 |
Cash and cash equivalents - end of period | $ 226,212 | $ 141,805 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock at $1 par value | [1] | Capital in excess of par value | Reinvested earnings | Accumulated other comprehensive income (loss) | Treasury stock (at cost) |
Balance at beginning of period at Dec. 31, 2022 | $ 442,422 | $ 37,221 | $ 53,282 | $ 395,155 | $ (5,983) | $ (37,253) | |
Net earnings | 41,908 | 41,908 | |||||
Pension and postretirement benefits (net of tax effect) | (65) | (65) | |||||
Foreign currency translation | 1,845 | 1,845 | |||||
Cash dividends | (13,186) | (13,186) | |||||
Stock options exercised | 58 | 50 | 8 | ||||
Stock-based compensation | 2,607 | 2,607 | |||||
Issuance of treasury stock | 3 | (106) | 109 | ||||
Balance at end of period at Jun. 30, 2023 | 475,592 | 37,221 | 55,833 | 423,877 | (4,203) | (37,136) | |
Balance at beginning of period at Mar. 31, 2023 | 458,037 | 37,221 | 54,245 | 407,979 | (4,258) | (37,150) | |
Net earnings | 22,493 | 22,493 | |||||
Pension and postretirement benefits (net of tax effect) | (33) | (33) | |||||
Foreign currency translation | 88 | 88 | |||||
Cash dividends | (6,595) | (6,595) | |||||
Stock-based compensation | 1,601 | 1,601 | |||||
Issuance of treasury stock | 1 | (13) | 14 | ||||
Balance at end of period at Jun. 30, 2023 | 475,592 | 37,221 | 55,833 | 423,877 | (4,203) | (37,136) | |
Balance at beginning of period at Dec. 31, 2023 | 516,482 | 37,221 | 59,185 | 458,719 | (1,646) | (36,997) | |
Net earnings | 62,187 | 62,187 | |||||
Pension and postretirement benefits (net of tax effect) | (64) | (64) | |||||
Foreign currency translation | (3,633) | (3,633) | |||||
Cash dividends | (15,866) | (15,866) | |||||
Stock options exercised | 751 | 646 | 105 | ||||
Stock-based compensation | 3,281 | 3,281 | |||||
Issuance of treasury stock | (197) | 197 | |||||
Balance at end of period at Jun. 30, 2024 | 563,138 | 37,221 | 62,915 | 505,040 | (5,343) | (36,695) | |
Balance at beginning of period at Mar. 31, 2024 | 535,567 | 37,221 | 60,468 | 479,925 | (5,268) | (36,779) | |
Net earnings | 33,056 | 33,056 | |||||
Pension and postretirement benefits (net of tax effect) | (31) | (31) | |||||
Foreign currency translation | (44) | (44) | |||||
Cash dividends | (7,941) | (7,941) | |||||
Stock options exercised | 521 | 450 | 71 | ||||
Stock-based compensation | 2,010 | 2,010 | |||||
Issuance of treasury stock | (13) | 13 | |||||
Balance at end of period at Jun. 30, 2024 | $ 563,138 | $ 37,221 | $ 62,915 | $ 505,040 | $ (5,343) | $ (36,695) | |
[1] Each common share of stock equals $ 1 par value; therefore, the number of common shares is the same as the dollar value. |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Tax effect on employee benefit funded status adjustment | $ 11 | $ 11 | $ 21 | $ 22 |
Cash dividends (in dollars per share) | $ 0.27 | $ 0.23 | $ 0.54 | $ 0.45 |
Issuance of treasury stock (in shares) | 18 | 4 | 64 | 24 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 | $ 1 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 33,056 | $ 22,493 | $ 62,187 | $ 41,908 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 Basis of Presentation In the opinion of management, the accompanying unaudited consolidated condensed financial statements of Badger Meter contain all adjustments (consisting only of normal recurring accruals except as otherwise discussed) necessary to present fairly the Company's consolidated condensed financial position at June 30, 2024 and December 31, 2023, results of operations, comprehensive income, and statements of shareholders’ equity for the three and six-month periods ended June 30, 2024 and 2023, and cash flows for the six-month period ended June 30, 2024 and 2023. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Additional Financial Informatio
Additional Financial Information Disclosures | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Financial Information Disclosures | Note 2 Additional Financial Information Disclosures The consolidated condensed balance sheet at December 31, 2023 was derived from amounts included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 . Refer to the notes to consolidated financial statements included in that report for a description of the Company's accounting policies and for additional details of the Company's financial condition. The details in those notes have not changed except as discussed below and as a result of normal adjustments in the interim. Cash Equivalents The Company considers all highly liquid investments with original maturities of ninety days or less to be cash equivalents. Warranty and After-Sale Costs The Company estimates and records provisions for warranties and other after-sale costs in the period in which the sale is recorded, based on a lag factor and historical warranty claim experience. After-sale costs represent a variety of activities outside of the written warranty policy, such as investigation of unanticipated problems after the customer has installed the product or analysis of water quality issues. Changes in the Company's warranty and after-sale costs reserve are as follows: Three months ended Six months ended June 30, June 30, (In thousands) 2024 2023 2024 2023 Balance at beginning of period $ 12,425 $ 9,569 $ 11,102 $ 9,606 Net additions charged to earnings 3,359 3,468 6,598 4,879 Costs incurred ( 1,935 ) ( 1,992 ) ( 3,851 ) ( 3,440 ) Balance at end of period $ 13,849 $ 11,045 $ 13,849 $ 11,045 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 3 Accumulated Other Comprehensive Loss Components of and changes in accumulated other comprehensive loss at June 30, 2024 are as follows: (In thousands) Unrecognized Foreign currency Total Balance at beginning of period $ 920 $ ( 2,566 ) $ ( 1,646 ) Other comprehensive loss before reclassifications - ( 3,633 ) ( 3,633 ) Amounts reclassified from accumulated other comprehensive loss, net of tax of ($ 21 ) ( 64 ) - ( 64 ) Net current period other comprehensive loss, net of tax ( 64 ) ( 3,633 ) ( 3,697 ) Accumulated other comprehensive loss $ 856 $ ( 6,199 ) $ ( 5,343 ) Components of and changes in accumulated other comprehensive loss at June 30, 2023 are as follows: (In thousands) Unrecognized Foreign currency Total Balance at beginning of period $ 994 $ ( 6,977 ) $ ( 5,983 ) Other comprehensive income before reclassifications - 1,845 1,845 Amounts reclassified from accumulated other comprehensive loss, net of tax of ($ 22 ) ( 65 ) - ( 65 ) Net current period other comprehensive income, net of tax ( 65 ) 1,845 1,780 Accumulated other comprehensive loss $ 929 $ ( 5,132 ) $ ( 4,203 ) Details of reclassifications out of accumulated other comprehensive loss during the six months ended June 30, 2024 and 2023 are immaterial. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2024 | |
Business Combinations [Abstract] | |
Acquisitions | Note 4 Acquisition s Acquisitions are accounted for under the purchase method, and accordingly, the results of operations were included in the Company's financial statements from the date of acquisition. The acquisitions did not have a material impact on the Company's consolidated financial statements or the notes thereto. Effective January 1, 2024 , the Company acquired select remote water monitoring hardware and software, inclusive of the Telog® product line and Unity Remote Monitoring software as a service (the "Telog/Unity Assets"). The total purchase consideration for the Telog/Unity Assets was $ 3.0 million in cash. The preliminary allocation of purchase price to the assets acquired was based upon the estimated fair values at the date of acquisition. As of June 30, 2024, the Company has not completed its analysis for estimating the fair value of the assets acquired. Effective January 1, 2023 , the Company acquired 100 % of the outstanding stock of Syrinix Ltd. ("Syrinix"), headquartered in the United Kingdom, a provider of high-frequency pressure monitoring and leak detection solutions. The total purchase consideration for Syrinix, net of cash acquired, w as $ 17.1 m illion. The Company's allocation of the purchase price at December 31, 2023 included $ 0.6 million of receivables, $ 0.7 million of inventories, $ 2.1 million of other assets, $ 7.7 million of intangible assets and $ 10.3 million of goodwill. The intangible assets acquired were primarily developed technology, customer relationships and trademarks with estimated average useful lives of 13 to 15 years. The Company also assumed $ 1.9 million of payables, $ 2.0 million of deferred income taxes and $ 0.4 million of other liabilities as part of the acquisition. As of December 31, 2023, the Company had completed its analysis for estimating the fair value of the assets acquired. |
Contingencies, Litigation and C
Contingencies, Litigation and Commitments | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Litigation and Commitments | Note 5 Contingencies, Litigation and Commitments In the normal course of business, the Company is named in legal proceedings. There are currently no material legal proceedings pending with respect to the Company. The Company is subject to contingencies related to environmental laws and regulations. A future change in circumstances with respect to specific matters or with respect to sites formerly or currently owned or operated by the Company, off-site disposal locations used by the Company, and property owned by third parties that is near such sites, could result in future costs to the Company and such amounts could be material. Expenditures for compliance with environmental control provisions and regulations during 2023 and the first half of 2024 were not material. The Company relies on single suppliers for most brass castings and certain resin and electronic subassemblies in several of its product lines. The Company believes these items would be available from other sources, but that the loss of certain suppliers could result in a higher cost of materials, delivery delays, short-term increases in inventory and higher quality control costs in the short term. The Company attempts to mitigate these risks by working closely with key suppliers, purchasing minimal amounts from alternative suppliers and by purchasing business interruption insurance where appropriate. The Company reevaluates its exposures on a periodic basis and makes adjustments to reserves as appropriate. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 Income Taxes The Company is subject to income taxes in the United States and numerous foreign jurisdictions. The Company's income tax positions are based on interpretations of income tax laws and rulings in each of the jurisdictions that the Company operates. Significant judgment is required in determining the worldwide provision for income taxes and recording the related deferred tax assets and liabilities. The Company's deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income for the years in which the assets or liabilities are expected to be realized or settled. Interim provisions are tied to an estimate of the overall annual rate which can vary due to the relationship of foreign and domestic earnings, state taxes and available deductions, credits and discrete items. The Company's earnings before incomes taxes, provision for income taxes, and effective income tax rate are as follows: Three months ended June 30, Six months ended June 30, (In thousands) 2024 2023 2024 2023 Earnings before income taxes $ 43,362 $ 30,296 $ 81,454 $ 55,932 Provision for income taxes 10,306 7,803 19,267 14,024 Effective income tax rate 23.8 % 25.8 % 23.7 % 25.1 % |
Fair Value Measurements of Fina
Fair Value Measurements of Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Financial Instruments | Note 7 Fair Value Measurements of Financial Instruments The Company applies the accounting standards for fair value measurements and disclosures for its financial assets and financial liabilities. The carrying amounts of cash and cash equivalents, receivables and payables in the financial statements approximate their fair values due to the short-term nature of these financial instruments. Included in other assets are insurance policies on various individuals who were previously employed by the Company. The carrying amounts of these insurance policies approximate their fair value. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 8 Subsequent Events The Company evaluates subsequent events at the date of the balance sheet as well as conditions that arise after the balance sheet date but before the financial statements are issued. The effects of conditions that existed at the balance sheet date are recognized in the financial statements. Events and conditions arising after the balance sheet date but before the financial statements are issued are evaluated to determine if disclosure is required to keep the financial statements from being misleading. To the extent such events and conditions exist, if any, disclosures are made regarding the nature of events and the estimated financial effects for those events and conditions. For purposes of preparing the accompanying consolidated financial statements and the notes to these financial statements, the Company evaluated subsequent events through the date that the accompanying financial statements were issued, and has determined that no material subsequent events exist through the date of this filing. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 9 Revenue Recognition Revenue for sales of products and services is derived from contracts with customers. The products and services promised in contracts include the sale of measurement hardware, communication devices, data and analytics software and other ancillary services. Contracts generally state the terms of sale, including the description, quantity and price of each product or service. Since the customer typically agrees to a stated rate and price in the contract that does not vary over the life of the contract, the majority of the Company's contracts do not contain variable consideration. The Company establishes a provision for estimated warranty and returns as well as certain after sale costs as discussed in Note 2 "Additional Financial Information Disclosures" in the Notes to Unaudited Consolidated Condensed Financial Statements. The Company disaggregates revenue from contracts with customers into geographical regions and by the timing of when goods and services are transferred. The Company determined that disaggregating revenue into these categories depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by regional economic factors. Information regarding revenues disaggregated by geographic area is as follows: Three months ended Six months ended June 30, June 30, (In thousands) 2024 2023 2024 2023 Revenues: United States $ 193,963 $ 157,863 $ 371,153 $ 296,449 Foreign: Asia 2,735 3,369 5,648 6,561 Canada 3,015 3,024 5,193 6,506 Europe 9,410 8,612 18,819 18,144 Mexico 1,431 452 2,052 1,487 Middle East 5,463 2,022 9,074 4,700 Other 641 516 999 1,112 Total $ 216,658 $ 175,858 $ 412,938 $ 334,959 Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows: Three months ended Six months ended June 30, June 30, (In thousands) 2024 2023 2024 2023 Revenue recognized over time $ 14,345 6.6 % $ 10,932 6.2 % $ 27,078 6.6 % $ 20,669 6.2 % Revenue recognized at a point in time 202,313 93.4 % 164,926 93.8 % 385,860 93.4 % 314,290 93.8 % Total $ 216,658 100.0 % $ 175,858 100.0 % $ 412,938 100.0 % $ 334,959 100.0 % The majority of the Company's revenue that is recognized over time relates to the BEACON® software as a service ("SaaS"), but also includes training, certain installation and other revenues. The majority of the Company's revenue recognized at a point in time is for the sale of utility and flow instrumentation products. Revenue from these contracts is recognized when the customer is able to direct the use of and obtain substantially all of the benefits from the product which generally coincides with title transfer during shipping. The Company performs its obligations under a contract by shipping products or performing services in exchange for consideration. The Company typically invoices its customers as soon as control of an asset is transferred and a receivable to the Company is established. The Company, however, recognizes a contract liability when a customer prepays for goods or services and the Company has not transferred control of the goods or services. The Company's receivables and contract liabilities are as follows: June 30, December 31, (In thousands) Receivables $ 106,229 $ 83,507 Contract liabilities 71,782 59,970 Contract liabilities are included in payables and long-term deferred revenue on the Company's Consolidated Condensed Balance Sheets. The balance of contract assets was immaterial as the Company did not have a significant amount of uninvoiced receivables as of June 30, 2024 and December 31, 2023. A performance obligation is a promise to transfer a distinct good or service to the customer. At contract inception, the Company assesses the products and services promised in its contracts with customers. The Company then identifies performance obligations to transfer distinct products or services to the customer. In order to identify performance obligations, the Company considers all of the products or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. The Company's performance obligations are satisfied at a point in time or over time as work progresses. The majority of the Company's revenue recognized at a point in time is for the sale of utility and flow instrumentation products. Revenue from these contracts is recognized when the customer is able to direct the use of and obtain substantially all of the benefits from the product which generally coincides with title transfer during the shipping process. The majority of the Company's revenue that is recognized over time relates to the BEACON SaaS. As of June 30, 2024, the Company had certain contracts with unsatisfied performance obligations. For contracts recorded as contract liabilities, $ 71.8 million was the aggregate amount of the transaction price allocated to performance obligations that were unsatisfied or partially unsatisfied as of the end of the reporting period. The Company estimates that revenue recognized from satisfying those performance obligations will be approximately $ 7.9 million in 2024 , $ 8.5 million in 2025 , $ 7.4 million in 2026 , $ 5.9 million in 2027 , $ 4.9 million in 2028 , $ 4.1 million in 2029 and $ 33.1 million thereafter . |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Note 10 Leases The Company rents facilities, equipment and vehicles under operating leases, some of which contain renewal options. Upon inception of a rent agreement, the Company determines whether the arrangement contains a lease based on the unique conditions present. Leases that have a term over a year are recognized on the balance sheet as right-of-use assets and lease liabilities. Right-of-use assets are included in other assets on the Company's Consolidated Condensed Balance Sheets. Lease liabilities are included in other current liabilities and other long-term liabilities on the Company's Consolidated Condensed Balance Sheets. Information regarding the Company's right-of-use assets and the corresponding lease liabilities are as follows: June 30, December 31, (In thousands) Right-of-use assets $ 6,478 $ 5,522 Lease liabilities 6,673 5,758 The Company's operating lease agreements have lease and non-lease components that require payments for common area maintenance, property taxes and insurance. The Company has elected to account for both lease and non-lease components as one lease component. The fixed and in-substance fixed consideration in the Company's rent agreements constitute operating lease expense that is included in the capitalized right-of-use assets and lease liabilities. The variable and short-term lease expense payments are not included in the present value of the right-of use-assets and lease liabilities on the Consolidated Condensed Balance Sheets. The Company's rent expense is as follows: Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 (In thousands) Operating lease expense $ 898 $ 867 $ 1,756 $ 1,700 Variable and short-term lease expense 28 31 103 76 Rent expense $ 926 $ 898 $ 1,859 $ 1,776 The Company records right-of-use assets and lease liabilities based upon the present value of lease payments over the expected lease term. The Company's lease agreements typically do not have implicit interest rates that are readily determinable. As a result, the Company utilizes an incremental borrowing rate that would be incurred to borrow on a collateralized basis over a similar term in a comparable economic environment. As of June 30, 2024 and December 31, 2023, the remaining lease term on the Company's lea ses was 6.6 and 5.3 years, respectively. As of June 30, 2024 and December 31, 2023 , the discount rate was 5.0 %. The future min imum lease payments to be paid under operating leases are as follows: June 30, (In thousands) 2024 (remaining six months) $ 1,436 2025 2,298 2026 1,153 2027 475 2028 370 Thereafter 2,194 Total future lease payments 7,926 Present value adjustment ( 1,253 ) Present value of future lease payments $ 6,673 |
Additional Financial Informat_2
Additional Financial Information Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Changes in Warranty and After-Sale Costs Reserve | Changes in the Company's warranty and after-sale costs reserve are as follows: Three months ended Six months ended June 30, June 30, (In thousands) 2024 2023 2024 2023 Balance at beginning of period $ 12,425 $ 9,569 $ 11,102 $ 9,606 Net additions charged to earnings 3,359 3,468 6,598 4,879 Costs incurred ( 1,935 ) ( 1,992 ) ( 3,851 ) ( 3,440 ) Balance at end of period $ 13,849 $ 11,045 $ 13,849 $ 11,045 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Components of and Changes in Accumulated Other Comprehensive Loss | Components of and changes in accumulated other comprehensive loss at June 30, 2024 are as follows: (In thousands) Unrecognized Foreign currency Total Balance at beginning of period $ 920 $ ( 2,566 ) $ ( 1,646 ) Other comprehensive loss before reclassifications - ( 3,633 ) ( 3,633 ) Amounts reclassified from accumulated other comprehensive loss, net of tax of ($ 21 ) ( 64 ) - ( 64 ) Net current period other comprehensive loss, net of tax ( 64 ) ( 3,633 ) ( 3,697 ) Accumulated other comprehensive loss $ 856 $ ( 6,199 ) $ ( 5,343 ) Components of and changes in accumulated other comprehensive loss at June 30, 2023 are as follows: (In thousands) Unrecognized Foreign currency Total Balance at beginning of period $ 994 $ ( 6,977 ) $ ( 5,983 ) Other comprehensive income before reclassifications - 1,845 1,845 Amounts reclassified from accumulated other comprehensive loss, net of tax of ($ 22 ) ( 65 ) - ( 65 ) Net current period other comprehensive income, net of tax ( 65 ) 1,845 1,780 Accumulated other comprehensive loss $ 929 $ ( 5,132 ) $ ( 4,203 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Earnings Before Incomes Taxes, Provision for Income Taxes, and Effective Income Tax Rate | The Company's earnings before incomes taxes, provision for income taxes, and effective income tax rate are as follows: Three months ended June 30, Six months ended June 30, (In thousands) 2024 2023 2024 2023 Earnings before income taxes $ 43,362 $ 30,296 $ 81,454 $ 55,932 Provision for income taxes 10,306 7,803 19,267 14,024 Effective income tax rate 23.8 % 25.8 % 23.7 % 25.1 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Information regarding revenues disaggregated by geographic area is as follows: Three months ended Six months ended June 30, June 30, (In thousands) 2024 2023 2024 2023 Revenues: United States $ 193,963 $ 157,863 $ 371,153 $ 296,449 Foreign: Asia 2,735 3,369 5,648 6,561 Canada 3,015 3,024 5,193 6,506 Europe 9,410 8,612 18,819 18,144 Mexico 1,431 452 2,052 1,487 Middle East 5,463 2,022 9,074 4,700 Other 641 516 999 1,112 Total $ 216,658 $ 175,858 $ 412,938 $ 334,959 Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows: Three months ended Six months ended June 30, June 30, (In thousands) 2024 2023 2024 2023 Revenue recognized over time $ 14,345 6.6 % $ 10,932 6.2 % $ 27,078 6.6 % $ 20,669 6.2 % Revenue recognized at a point in time 202,313 93.4 % 164,926 93.8 % 385,860 93.4 % 314,290 93.8 % Total $ 216,658 100.0 % $ 175,858 100.0 % $ 412,938 100.0 % $ 334,959 100.0 % |
Contract with Customer, Liability and Receivables | The Company's receivables and contract liabilities are as follows: June 30, December 31, (In thousands) Receivables $ 106,229 $ 83,507 Contract liabilities 71,782 59,970 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Right-of-Use Assets and the Corresponding Lease Liabilities | Information regarding the Company's right-of-use assets and the corresponding lease liabilities are as follows: June 30, December 31, (In thousands) Right-of-use assets $ 6,478 $ 5,522 Lease liabilities 6,673 5,758 |
Schedule of Rent Expenses | The Company's rent expense is as follows: Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 (In thousands) Operating lease expense $ 898 $ 867 $ 1,756 $ 1,700 Variable and short-term lease expense 28 31 103 76 Rent expense $ 926 $ 898 $ 1,859 $ 1,776 |
Schedule of Future Minimum Lease Payments to be Paid under Operating Leases | The future min imum lease payments to be paid under operating leases are as follows: June 30, (In thousands) 2024 (remaining six months) $ 1,436 2025 2,298 2026 1,153 2027 475 2028 370 Thereafter 2,194 Total future lease payments 7,926 Present value adjustment ( 1,253 ) Present value of future lease payments $ 6,673 |
Additional Financial Informat_3
Additional Financial Information Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Changes in warranty and after-sale costs reserve | ||||
Balance at beginning of period | $ 12,425 | $ 9,569 | $ 11,102 | $ 9,606 |
Net additions charged to earnings | 3,359 | 3,468 | 6,598 | 4,879 |
Costs incurred | (1,935) | (1,992) | (3,851) | (3,440) |
Balance at end of period | $ 13,849 | $ 11,045 | $ 13,849 | $ 11,045 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of and Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI, tax | $ (21) | $ (22) |
Increase (Decrease) in Stockholders' Equity | ||
Balance at beginning of period | 516,482 | 442,422 |
Balance at end of period | 563,138 | 475,592 |
Unrecognized pension and postretirement benefits | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance at beginning of period | 920 | 994 |
Other comprehensive (loss) income before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (64) | (65) |
Net current period other comprehensive income (loss), net of tax | (64) | (65) |
Balance at end of period | 856 | 929 |
Foreign currency | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance at beginning of period | (2,566) | (6,977) |
Other comprehensive (loss) income before reclassifications | (3,633) | 1,845 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 |
Net current period other comprehensive income (loss), net of tax | (3,633) | 1,845 |
Balance at end of period | (6,199) | (5,132) |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance at beginning of period | (1,646) | (5,983) |
Other comprehensive (loss) income before reclassifications | (3,633) | 1,845 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (64) | (65) |
Net current period other comprehensive income (loss), net of tax | (3,697) | 1,780 |
Balance at end of period | $ (5,343) | $ (4,203) |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2024 | Jan. 01, 2023 | Dec. 31, 2023 | Jun. 30, 2024 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 113,163 | $ 113,355 | ||
Syrinix Ltd. | ||||
Business Acquisition [Line Items] | ||||
Date of acquisition | Jan. 01, 2023 | |||
Outstanding common stock acquired (as a percent) | 100% | |||
Total purchase consideration | 17,100 | |||
Receivables | 600 | |||
Inventories | 700 | |||
Other assets | 2,100 | |||
Intangible assets | 7,700 | |||
Goodwill | 10,300 | |||
Accounts payable | 1,900 | |||
Deferred income taxes liabilities | 2,000 | |||
Other liabilities | $ 400 | |||
Syrinix Ltd. | Developed Technology, Customer Relationships and Trademarks | Minimum | ||||
Business Acquisition [Line Items] | ||||
Estimated average useful life | 13 years | |||
Syrinix Ltd. | Developed Technology, Customer Relationships and Trademarks | Maximum | ||||
Business Acquisition [Line Items] | ||||
Estimated average useful life | 15 years | |||
Telog/Unity Assets | ||||
Business Acquisition [Line Items] | ||||
Asset acquisition effective date | Jan. 01, 2024 | |||
Asset acquisition total purchase consideration | $ 3,000 |
Income Taxes - Schedule of Earn
Income Taxes - Schedule of Earnings Before Incomes Taxes, Provision for Income Taxes, and Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Earnings before income taxes | $ 43,362 | $ 30,296 | $ 81,454 | $ 55,932 |
Provision for income taxes | $ 10,306 | $ 7,803 | $ 19,267 | $ 14,024 |
Effective income tax rate | 23.80% | 25.80% | 23.70% | 25.10% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 216,658 | $ 175,858 | $ 412,938 | $ 334,959 |
Revenue, remaining performance obligation, percentage | 100% | 100% | 100% | 100% |
Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 14,345 | $ 10,932 | $ 27,078 | $ 20,669 |
Revenue recognized over time | Service Concentration Risk | Revenue Benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, remaining performance obligation, percentage | 6.60% | 6.20% | 6.60% | 6.20% |
Revenue recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 202,313 | $ 164,926 | $ 385,860 | $ 314,290 |
Revenue recognized at a point in time | Product Concentration Risk | Revenue Benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, remaining performance obligation, percentage | 93.40% | 93.80% | 93.40% | 93.80% |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 193,963 | $ 157,863 | $ 371,153 | $ 296,449 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,735 | 3,369 | 5,648 | 6,561 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,015 | 3,024 | 5,193 | 6,506 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,410 | 8,612 | 18,819 | 18,144 |
Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,431 | 452 | 2,052 | 1,487 |
Middle East | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,463 | 2,022 | 9,074 | 4,700 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 641 | $ 516 | $ 999 | $ 1,112 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Receivables | $ 106,229 | $ 83,507 |
Contract liabilities | $ 71,782 | $ 59,970 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative 1 (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 71.8 |
Revenue Recognition - Narrati_2
Revenue Recognition - Narrative 1 (Details 1) $ in Millions | Jun. 30, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 71.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 7.9 |
Expected timing of performance obligation satisfaction, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 8.5 |
Expected timing of performance obligation satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 7.4 |
Expected timing of performance obligation satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 5.9 |
Expected timing of performance obligation satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 4.9 |
Expected timing of performance obligation satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 4.1 |
Expected timing of performance obligation satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2030-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 33.1 |
Expected timing of performance obligation satisfaction, period | 1 year |
Leases - Narrative (Details)
Leases - Narrative (Details) | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Operating leases, remaining lease term | 6 years 7 months 6 days | 5 years 3 months 18 days |
Operating leases, discount rate | 5% | 5% |
Leases - Schedule of Right-of-U
Leases - Schedule of Right-of-Use Assets and the Corresponding Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Right-of-use assets | $ 6,478 | $ 5,522 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets Noncurrent | Other Assets Noncurrent |
Lease liabilities | $ 6,673 | $ 5,758 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities Current, Other Liabilities Noncurrent | Other Liabilities Current, Other Liabilities Noncurrent |
Leases - Schedule of Rent Expen
Leases - Schedule of Rent Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease expense | $ 898 | $ 867 | $ 1,756 | $ 1,700 |
Variable and short-term lease expense | 28 | 31 | 103 | 76 |
Rent expense | $ 926 | $ 898 | $ 1,859 | $ 1,776 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments to be Paid under Operating Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
2024 (remaining six months) | $ 1,436 | |
2025 | 2,298 | |
2026 | 1,153 | |
2027 | 475 | |
2028 | 370 | |
Thereafter | 2,194 | |
Total future lease payments | 7,926 | |
Present value adjustment | (1,253) | |
Present value of future lease payments | $ 6,673 | $ 5,758 |