BMI - Earnings call transcript Q2 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Second Quarter 2018 Badger Meter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will be given at that time. [Operator Instructions] As a reminder, today’s conference is being recorded. I would now like to turn the call over to Mr. Chief and Chairman Meeusen, Executive Officer. Rich may you begin. Sir,

Richard Meeusen

the strategic welcome of Thank We second our on termination. our our key I’d CFO both were Rick going bottom to you, After plan those like everybody as and of quarter quarter the pleased President the will results to about line Johnson, pension with and line. Bockhorst initiatives Chelsea. as details very talk for top through earnings addressing be call the for has finished, outlook our well results non-cash Ken will financial the impact our Rick our future. today.

So to Rick now started. over this get me let and we turn can

Richard Johnson

thank also Rich. to of want Thanks, all for joining you I us.

and make call as time on contain forward-looking As usual, or a cause list and of statements. risk expressions provided other statements earnings the I’ll number associated a Please for uncertainties Company forward-looking today. this employees presentation that identify such statements release that its that see these begin our factors. to involve contained well in as time by actual differ words from from information in may could the will risks statements to by yesterday’s those materially statements Certain that forward-looking stating results or

some of cost other in of general than example competitive reiterate reasons, do specific profitability line disclose we for of components for me our guidelines, brass. on terms, Let product do not individual comment sales, we nor

our not not the earnings. believe does We practice More serve importantly, future we of interest specific continue providing specific on of guidance our long-term guidance shareholders.

XXXX second market closed quarter results, after and we yesterday, onto the released the our results. year-to-date Now

any are sales net earnings quarter. our and that net records pleased are We adjusted for

a do the of in only not adjusted will While surrounding pension was for we adjustment for we comment our plan, on termination a minute. I charge the which made results, normally use

increase $XXX.X second sales increased Sales compared sales X% to the also Instrumentation These due second revenue. the of water compared which in to X.X% point in $X.X Carolina in as These increase sales of last gas market and was municipal at look well last same sales from was higher XXXX last million in and and for continued same contributes acquired $X.X the period as were and products these oil $XX rebound quarter or the increase period year. to supply in target due Instrumentation from as in quarter serve. million to million markets from represented which XX.X% we East. particularly Middle we end of Meter last sales the in results. second IMS, included the at Flow acquired year, the from the Incremental X.X% increased $XX.X that XX.X% $X.X million the in of XX.X% markets. newer was The we during $XX.X other the quarter XXXX. overall of year. to in volumes increased sales international to some million as the quarter million $XXX.X increased second Let’s for year. water or compared last service The million meters the $XX sales to domestic period second quarter due as Flow Municipal well XX.X% to or of in represented million sales to This to the technology related radios million and same the details. both higher Higher increase year.

higher healthcare in to and material brass higher the in percentage of sales pure terms increase particularly margin dollars, of XXXX was cost. XXXX. of The the the costs in gross a due compared of margin XX.X% gross percent XX.X% higher decline expenses quarter second second quarter the the in While was as to

as were and Administration healthcare year. the $X of second into million million international second well In X.X% quarter last to and acquisitions. lower pension contributed in markets. or initial staffing mix were meter water commission for research and of margin overall Higher addition, greater this employee sales postretirement pension somewhat Offsetting Engineering and lower included quarter included incentives. higher as the development million increase, higher sales included cost the from expenses recent Selling, from sales the termination. which to also Other $XX.X our the a $XX.X costs expenses impacts

you the put put non-cash equity at back coming are required our the and now for the resulting the simply at to behind sheet As $X.X at of we Principles. $XX.X part into initial and to announced for the income quarter mention charge, expected equated this time or last me pension non-cash component year plan. completed accounting termination the results, to million remember flow equity script of Again, anticipate this as second minute company’s The million in The taxes see so The plan. occurred let as off third that before included year-to-date income as fairly cash non-cash Generally $X is balance was balance terminate then The $X.X compared plan to cash rates declined termination after-tax another years percentage to pretax as year. we also the the which be basis, number in between be were run go which being will charge. tax of than pretax impact phase approximately the provision expensed and we On estimated year, tax due and million already pension when the were payment look quarter decision through us. for just primarily the we million in discrete minimal. by could made Most just equity just the both this to clarify of to $X.X lower of into particular earnings share. in will $X.XX that an tax of I million. statement a this in Accounting charges year million last I credits XX.X% as due per the it of payment out taking as pension taxes of out, the And Accepted a lower the pension related [ph] of the year-to-date $X.X high last payment a to was XX% turned was a for to one you quarter quarter from federal want mentioned. The rate, a income was prior rates one time application year. the cash transaction, second and was XX.X% years the simply for cash decrease which XX% the anticipated XX% sheet that Kenneth

of for Our best the balance the XXXX XX%. estimate incremental rate tax is of

per $X.XX of all on an charge earnings of $X.X basis, share. or million share or to result As million Net or termination quarter million the per pension a which of per nearly diluted this, XXXX. earnings $XX.X actual $X.XX $XX.X the compared adjusted impact excludes were diluted second $X.X diluted $X.XX share were million the in

favorably call of the year’s first Last remains that by not operations for balances six XXXX year. six amounts impacted the background, With last Ken that $XX.X inventory for to months now decrease Cash solid. of to by balance in of turn Bockhorst. Our bit provided was will a over was did I this recur year. sheet compared first million million months the $XX.X

Kenneth Bockhorst

QX, the Yes, about achieve by we business E-series occurred. our quarter. municipal orders maintain achieved water I of following shipments remained technologies. the and thanks, of I in to we BEACON call, both in components and of continued In High was our new am invest and I’ll into Cellular strong, In able ORION that talking QX. the backlog heading QX our the were build-up incoming orders the talked lines domestic backlog international in with timing we to record the Rick. through quarter fact healthy through that where able are start a and growth markets pleased the in growth by incoming single-digit to growth

benefiting realize from We also and year-over-year higher the served. channels business from are the digit Instrumentation investments where Flow in benefits improving improvement markets our to our and are our in growth we channels growth sales market. seeing Overall, our improved and we are in mid-single markets that technology we

E-series progress back increased expected the to we of as bids excluded year are half new our in as longer Looking no June we last larger in meters. launched I technology side and we meters D-Flow expect at from communicated as quarter, larger the commercial -- the on development, for ultrasonic product revenue call and continue with large

year’s the in to We D-Flow of costs. will of the D-Flow we realizing fully while into residential complete our on benefits our meters In XXXX. by integration last costs track reducing as remain product increase offering acquisition the we our also technology thereby reducing be short, our year-end

of number to the on-demand battery remain QX of chips will chips We range, in Cellular our the offering the into Cat-M also these Integration extend for life, reads of increase XXXX. and ORION the improve on track utilities. incorporate daily

our to point we our solidifies excited utility development water that like any build very solutions this about or City AT&T customers. further our alliance, for are smart offering for water providing as We Smart to position we would I leadership metering XX which smart also continue in joined June the on out large small.

projects into we your for part be very prices to development our solid the half had this that take cost gives exclusive of group. our to optimistic the levels us and XXXX recent questions. in profile a to Scottsdale we Rick, are happy and expect costs excited second product move that with achieve. reduction I and With now us XXXX. that, of are Rich will getting back to of We and combined margin be copper that should Overall, AS behind and the we confidence quarter remain moderating be

Operator

question will [Operator Eastman come with Baird. Instructions]. Richard from first our And

Your line is open.

Richard Eastman

of and the Rick, morning. could both good Yes, quarter? from revenue Carolina provide just in contribution you the IMS kind

Richard Johnson

and It bucks. probably above the than incremental a significant mean part were of them and really what XX% it’s of their the of already less most million we that sales revenue, cost wasn’t what – sold to I over

Richard Eastman

Combined, bucks less than a contribution? million

Richard Johnson

Yes, quarter. for the

Richard Eastman

also…. you Rick,

Richard Meeusen

distributor okay just Rick, – one the customer. we you their own remind up selling and our Again, second. distributor, to marking buy when we the distributor people, to previously were then selling to was can

their incremental That’s it, up. you about So what impact talking are mark … we why the when buy only is

Richard Eastman

have sales? then third party And no

Richard Johnson

were they a Badger Meter essentially XXX% No sales.

Richard Eastman

in sprinkle as Okay, all you SMEGA. you color could you well on the then total as cost is give number? make two that some COGS and Could And both right. One split the flagged the healthcare things.

Richard Johnson

are now things have including our like, Rick. of but and aging one and wellness part years to in we color. the program insured additional of some in give No, SMEGA it – biggest mean, and it’s you XX sold, it’s probably one those I drivers basis of XX points workforce but to healthcare lower having we an impact within due couple cost be now. who’s terms for goods it’s We’ve a self one of some could I’ll in been just cost of just of speaking

at and charges. Okay, that it just for Do get things say think we’ve it’s necessarily, we one those just going cost. that’s and now with down so a Not happens while, unusual quarters, certain been of with just hit higher trend? got we we a

Richard Eastman

a year-to-date the true-up in that Is is quarter? that or strictly

Richard Johnson

quarter. It’s strictly in the

Richard Eastman

Okay, okay. In…

Richard Johnson

it have people to. could when stuffed be timing of on Rick, just

So I’m reading this into…

Richard Eastman

a beginning that the are into mix issue issues. margins. apparently in the the I mean just I that then there. then I also East up, healthcare a of and meters popped we the thought wasn’t to was Okay, as year, were we it. the so meters costs about brass two your a some get the go there, that as I’m or just so from it again from found one know COG that And talk sticky that more actually assumption the actually is, could didn’t standpoint, in hurt Middle these influence minute of most we from gross And there’s much maybe profitable. the curious international price price just reading of We

of more and put So kind degradation in would issues. costs I’m first could gross basis of to that kind points basis have a any We bit margin that those us shift step exclusive a maybe didn’t the of you surprised little to quarter impacted a alone me had could by on here this that which those just you if sorry. at of issues, XXX closure XX%. a we put for just gross margin up see points was

Kenneth Bockhorst

couple of into Okay, eight Rick you things rolled me take a or so seven the that. let

with let’s So start price.

we you in of delays if a very project and did remember we lot but on up April achieved come that basis are to rolled we QX, about into So in thought have pleased QX, QX XXX, would they you told XXX had thought that right. had that didn’t they but get probably show X, as we And we QX, we points. about through up we in

So to a this lot next into to and ship to of even going year and year. those be came we continue in are those maybe throughout going projects May, June are

we or we about XXX good we that So you to basis that still getting told points pretty feel so up would get.

and our at was was backlog is the is in pleased it if to it might. so we heading that margin price healthy. margins we just second as in as the profile early half definitely are look half, QX QX, first the we year, the to size and into the of into But compared was QX feel the same what happen there As going didn't which the start we to at as very it look perhaps I see comfortable backlog QX, our in I’m thought also better, more heading it that

Richard Eastman

Okay.

Richard Meeusen

market. But us we the our years and part our is three-year So the in first general. strategic a of more that's order this become so year opportunity side, us, integration. as D-Flow as this inroad product. international to in They three the continue two on then They like our for technology right? in really a profitable significant will took winning offering program, And like a Okay. for we

couldn't bring to this in bear the really So, to some savings get able years two that three for we're be going time and year. done to in of we

this correct comment just particular for but not is your in So international, general order.

Richard Eastman

Okay, okay.

Richard Meeusen

don't I remember points. other six And the

Richard Johnson

plant are maybe there's I foreign it. certain that believe more there But, but selling those negative. between and like not mean, utilization in things we're just in things like just we some out and call on product to quantifying there of significant. brass trying there that's Rick, the mix all impact There's -- Rick, the lines. we're There exchange is ones are thing

Richard Meeusen

as far up, in another as was jump so copper I'll And goes, there. one that you brought

in XXX, year was the last around on copper So quarter XXX.

lag its XXX, all then quarter QX little of as now so the as see to bit XXX. better it's cost place. we'll through, and so was time it get of But into kind QX. of higher And the around copper… come the of long into This a dropped a still whipsawing over end toward some to back takes It QX copper it'll

Richard Johnson

down… As stays long as copper

Richard Meeusen

us – in so it's moderated, Stays yes, so term, short for certainly the yes. positive

Richard Eastman

or just How meters they they or how perform the brass in the Were down? did meters, up mechanical the quarter?

Richard Meeusen

were up. They

Richard Eastman

okay. All Okay, right.

Richard Johnson

there probably up single were Rick, digits, low they about but were up.

Richard Eastman

Okay.

me. I'll the shot. for but a give Thank great I'll somebody That's right. much. in you All else Okay. get very back queue,

Richard Meeusen

Okay. Sure.

Operator

you. Thank

Our next Capital. comes question Morgan with from Brian Dempsey Rafn

Your line is open.

Brian Rafn

Good morning, guys.

Richard Meeusen

Good morning, Brian.

Richard Johnson

Good morning, Brian.

Brian Rafn

quarter demand Was first catchup from that or there any backlog quarter? pent-up flow through the second to the

Richard Johnson

Yes.

out first So we timing with orders the some March which we rate backlog in the pretty into coming had had good if we of a where the built you recall of coming order month quarter April. talked about

aid is just we I at of portion same large healthy in I haven't depleted At the going that was a about as ship had did we optimistic and like our still QX, as of So we build into -- backlog, forward saying, time, was but ship QX, it what we that. though, QX. up backlog the QX that in really feel that while it end into lot going of the we

Brian Rafn

guys? talk Okay. you a little kind leverage means biding the what how then that can the sense And service. to bit Smart you business City AT&T, me Can that you a of helps about give alliance, of

Kenneth C. Bockhors

Yes.

is something instant the a -- alliance that what have they're one, a smart everybody that this offering really in that smart fact credibility about. service people to gives And being in and is for wants. And about product cities. how that and that it AT&T So cities us involved in participate it talks I'm us and excited does really going us gives we

of a in It's just it; companies. So, IBM. you to Cisco, who of us and give couple a XX is other alliance? this flavor I'll name Hitachi, GE,

Meter Badger XX basically this entered it's companies that list So of we that Fortune a into and alliance. XX

the to gives even ability gives they've have get right. they're bid, an us name a do us thinking conversations very and for in access important And so gives it to it us with credibility. there. help before us about going arm of out Two, get out it can really is office higher-level amount So that's and thing it marketing and cities, a obviously ability marketing large joint the some a AT&T, really us tremendous third to gives to Mayor's with our

smart So it's us, think and I water going for is really a something us leadership position big deal in really help that our keep to metering.

Brian Rafn

Got you.

think a of the about is also bit E-Series important in a little I commercial launch that? meters, talked sized guys how You

Kenneth C. Bockhors

we're and because and participate side important a commercial ultrasonic X-inch bid extremely anything to the included we in. to it's that Well, transition seeing couldn't start people on X-inch of

we do of locked to participate us. that actually launched bids. really able some of expect we X-inch now were we out We to and starting that So to important – are and larger get three the we've be for

Brian Rafn

a going market – just Ken, how that, tone I how mean, how, business? then, you sized viable versus And residential? commercial what's in how has XXXX, of the the on would distinguish the follow kind say, to of been been,

Kenneth Bockhorst

be same. business and of generally mean is – now, tone markets a is right So, to commercials that I but the feel going its we're our relatively we relatively one healthy. upbeat feeling

Richard Johnson

mean, matter each the its generally. don't replacing city more ones else, commercial Rick. than always with because of and Residential both of this I orders simply and other, they is or don't the track residential Yes. a is commercial the often the meters but when anything – timing replacing it's

Brian Rafn

get Got back guys. right. you. I'll All Thanks in line.

Operator

you. Thank

Jones from with Stifel. next Our comes question Nathan

is line open. Your

Kenneth Bockhorst

Hi, Nathan.

Nathan Jones

guys. morning, Good

Richard Johnson

morning. Good

Nathan Jones

all phone my you're was otherwise the me answering hear mute when phone glad, you the down I'm time. questions the on line all laughing

lackluster quarter. significantly Certainly the Can tone in or any about commented You the last guys release the you change on two domestic have this markets. talk press pretty relatively quarter municipal three over you us give to can you're us related color few a give that there? that positive specific market? overall anything Or seeing the it driving inflection? on can you projects just Is what's more

Richard Meeusen

Nathan. Yes,

general So, we're see positive just to more overall a market. starting

So they're market is strong. I our about just regional was bid the and and leader talking taking leaders the general sales with

it bids number So large as bids. And isn't through of large there well. just going then that are large is relatively

winning a ones, outlier way doing isn't pretty bids feeling being strong the all its by a across. just it say, outliers or driven So few

Nathan Jones

or rather inflection blip than implies a that I mean think more that is you is - a like this up just that? this sustainable something

Richard Meeusen

I three the general two to more where up Yes. feels is that activity like it's and quarters compared you we ago sustainable. feel were do and certainly

Nathan Jones

to the Okay. little I'm question a ask going with little blunter gross instrument. – margin in a

You had margin by about et just to offset for year-over-year that the you productivity, by for offset line. XXX price, basis on pass what mix by cetera? Is terms gross possible points of out offset down the inflation, it buckets in

Richard Johnson

year Well, higher was given think we that out would I a as anticipated. but much little probably we've I give, last as colors can point bit than

XX%gross overtime pressure to been there's and So we it's always back it change mix we it that but down. the back we've with continues XX time as electronic, -- always competitive more take Can part to is tamp over that of mean down. more possibly, revert margin. higher that Every XX%, gotten it tamp

was mix healthcare, coming we've back. was some pricing the issue. mean big going and that all given did get So there ones, about was fact We've I got they're there against the the FX talked think some copper, We it. there I

specific don't numbers. we by that give Beyond color

Nathan Jones

Fair Okay. SG&A. enough. on One

been lowest was sales the SG&A a in percentage several as Your years. that's of

on reinvest you How some SG&A that's approaching think So about Are some opportunity you the for sales absolute maybe for forward? like something lower? you that? opportunities Is line? gain levels or you going to or there in the actions drive you need clearly there. leverage dollars where Are to taking to G&A there

Richard Johnson

the cost. will I'll take the part is of This some intend stab give Ken reality it will a sales X%, not then by you forget story. term okay. as because grow. just succession I'll SG&A to And it particular But In SMEGA somebody variability grow a Rich, we're have the long-term looking will go forward, we we percentage Over corresponding is than to or said come amounts. you always that controlling don't because sales down, that go higher grow Rick. but up, we're at locked over the cost might fixed, wrote, you But then SG&A that we're short different that's that, see you is If increase some topline at quarter grow the the and a when going okay. where we a have get part true. in, percentage most for having

Nathan Jones

I time, a think you leverage over to said, sales? SG&A So, percentage of you lower mean, you should

Richard Meeusen

Rich. is This

level, our years can the And for we spoken shot time overall and which you X% this if have was the can to being at leverage and we're SG&A SG&A achieve X% If growth. single-digit when about could we hold for our a high X% We get look think level. industry to topline to in to growth, going We it we X.X, model we lower leverage below hold lower it okay. long-term. can continually

Well there X.X%. some healthcare it So went was in was there? some there. What in inflation there. in There was up

Richard Johnson

And year was $X.X acquisitions. credit do last for something fact Yes. in one of to probably with million our there

Richard Meeusen

Right.

Richard Johnson

healthcare for staffing. again, So ones – rings talk of the when high about, the but some I pick and most we part its mean, it's of detail, the we okay, to look

So out topline grow when SG&A X%, to in line see grows yes, I don't of a of sales. has if it's being X.X% you and X.X%, as drop SG&A going percent the growth

Nathan Jones

Yes.

Now it demonstrates think control. cost good I

color. the for thanks So

Richard Johnson

you. Thank

Operator

Thank you.

Richard comes Atwater question from next Our with Thornton. Verdi

Your line is open.

Richard Verdi

a result pertaining morning, agreement? quarter. Good saw guys. on quarter Hi. Canadian Corix, to question last up learn kind what call of as penetration to my follow and this taking wanted of that to my nice Thanks quarter Badger just for from I

Richard Meeusen

Yes.

our more general but so than growing Canada share lower a basis. basis year-over-year. from year-over-year or with and U.S., than a Canada, happy, we're in the mind, are we year-over-year double that growth doing well in year in Keep very we point pleased lower are market we're in this on very digit starting So

Richard Verdi

in think? of for an just is can what what And super. opportunity us Canada you and a level then reach, will give think decades to do that sense Okay, broad you couple take there that Badger, updated market or you

Richard Johnson

me differently. so Well, take let that little

as East, that So opportunities are thinking putting Western China, America, now we're together about months eight about, world India, been all whether thinking be they Europe, and Latin headed thinking know. grow, about us where really we're market continue putting and number is on I I not and important Canada that can't and it, an I'm don't the about to one I've here and but I'm to Middle – Canada, will a its

Richard Verdi

I questions, And sales like more sense just understand. give cycle next couple us replacement enough. new Fair versus two what that over quick of and can see years? a of look you you sales trending home the where

Richard Johnson

Generally happens going about generally – is meter States least is the cycle. that United out as just what XX% But selling Rich. replacement the volume, of happens we at the are are this units in what

Richard Verdi

least. At

Richard Johnson

cities up Yes, those. there metered at that but get either then, And a least the aren't metering – the aren't those, more seeing sometimes there it's lot XX% even up they're more, going Or other houses are cities adding new where are and and sometimes the it is some. of commonly XX%. to

market now So and going about year the you're that a in wells, are XXX,XXX is XX% are maybe if having meters. United of meters X that versus million that million them houses metered about we're out talking about X.X States in a adding right

of kind that's you can how look So it. at

Richard Verdi

most right rest that landscape say Atlantic is the U.S.? Badger you would you for okay. Mid Okay, the of the or now last for equal question. region, that's somewhat then And to Perfect. fertile the the Would say just

Richard Meeusen

other it's wouldn't the I fertile region States. more or No. less fertile of than United say any

of We are years automation. meter to cities major seeing some -- conversions we XX lot over saw doing last the Western

the the is of now Now probably cities That's only going we've east we're of can to trend see a look starting it that haven't Mississippi. seen some that more the starting done at say sort are the are automation of of to I lot of there before. east Mississippi to cities that

Richard Verdi

Okay.

Again, time. Okay. quarter. Fair you Appreciate Thank enough. the good guys.

Richard Meeusen

you. Thank

Operator

comes Eastman our from Richard And Instructions]. question with [Operator you. Thank Baird. next

Your line open. is

Richard Eastman

I you. back. be Thank told I'll

Richard Meeusen

back. welcome So,

Richard Eastman

second orders in about respects, Ken, could get But other In a as I arms a second QX QX. the kind your some well. bit around kind your refilled good just that my quarter was a of commentary had here words, backlog revenue as expect revenue of seasonally? we would one little with flattish quarter

that it there seasonally? Sometimes a the is indicator bit. than in you But that's comfortable? or the normally my of business orders read-through or little is just it's suggests with would stronger be a And message kind there any down thought is, are

Kenneth Bockhorst

Yes.

that see the about So excited But I'm that size increased is the compared that healthy just a of that thing at point. the in future maintained past. it backlog so than A, did more if to we in margin the

Richard Eastman

Yes.

of there. is So in margin really healthier type seasonal read-through not that's the your and the there's backlog But above comment?

Kenneth Bockhorst

No.

Richard Eastman

fair. Okay. That's

Kenneth Bockhorst

That's fair.

Richard Eastman

call it a X.X%, bit. face value, revenue Okay. And was growth. Again XX%, the then mattered also a little acquisitions at maybe I assume much at – currency again just to dig growth we're here. point have into utility X.X% and so business muni wouldn't at

the without just growth Was X% other a can grow impact curious did call let's versus that the against six, in business X% utility domestic against, So did I'm line ask how or – rate XX In it I just words, this in how international? order-hood? up acquisition muni big domestic an contribution? international international had

Kenneth Bockhorst

Yes.

the of two-thirds growth right. domestic, So was

So X.X and percent, around seven-ish then…

Richard Eastman

Okay.

Kenneth Bockhorst

Yes.

large a wasn't one-time the So was East your if that's by order, it driven case. question driven Middle is, not it

Richard Eastman

Yes.

international understand. to? as expected But did of had Now bounce we I back kind

Kenneth Bockhorst

yes. correct, That's

Richard Eastman

the or that's one of is and noticeable probably this a is latest solid-state Yes. e-meter market, kind I And Rich. from everybody maybe and – to was this that one, think standpoint thing competitive some But just Itron for maybe of somewhat sort is your here. then been racing

kind meters Mueller curious just technology. there, available But that maybe there. side how is 'm then Now of product? now product. year. of of your that a on – best Neptune this I with has different is impact do the this I there. meter they is at actually know the forward? kind A, brass And this an had e-meter, just the that does have Sensus their going is selling you field playing to is don't competitive And Itron? And B, materially look point to – there, think introduction been is with question agreement I'm number can asking their Itron the meter going late reseller you And

Richard Meeusen

It’s few got things to a we question, but consider good here.

introduced I'm around looking E-Series long we how here and for So the meter ago.

Richard Johnson

years. or Eight nine

Richard Meeusen

ago, the quarter years our of nine meter sales, this E-Series okay. is or Eight okay. XX% meter And

Richard Eastman

Okay

Richard Meeusen

third a us a to them coming win solid-state or a with XX, what the up products, that's it we'll it is you major our a or consider got they've If when not years going and to nine a now of to in up bit a going paved get it them. meter should eight to meters on time it's these what missionary for customers be the -- of I a years buying us said, very eight that a than convince customers them it's them their when for happens. we've way try and meter lot them because nine for its take new that little So, you meter from going to to years. tend managers think that XX%. get And out that while one they different we of it's saw take don't while. to mechanical We've talk are very to but couple field, over. us city Those competitors, they take them introduce But the as of has to meter that and And that sales, no have adopted a done just took work. water to the try long to already conservative. been the give Competitors a expected that

it our to a I advantage the So on its has advantage. here And is first solid-state. and huge going to to market continue think a been be huge

So very a that's thing. significant

On the meter. Itron, introducing side their is Itron own now with solid-state yes,

less have We every through meters Itron. less sold year and

so which see sales us. are big ORION don’t our a Itron on down products, impact now, small are to having is we a primarily very Our I that own

here are has meters Itron, now, our how competitor never as they resale they are market. now the sell and meter, to we’ll a going see had far try it’s As they through another and in do. Itron obviously

Richard Johnson

their additional all everybody point been one Ultrasonic. most versions think part is meters, of have the for electronic they as I introduces

several which They the years wondered both we’ll think are Ultrasonic. where if Now going technologies, better terms in of an and very go get selling back selling it good we was technology. Sensus to versus cost electromagnetic. ago, but Everybody us Ultrasonic is you savings are electromagnetic have the to we

Ultrasonic fact the think kind of competitors that the the I validates now coming also. fact going of in are these standard So these forward with as all

Richard Eastman

just seem different at other in doesn’t seem the that four the looking it commercial three doesn’t of and majority inch it participants these have E-Series kind meter? websites, Yes, or of a e-series

Richard Meeusen

you develop high when and the residential. the meter, a Generally okay new I is volume the right. you’re think you go volume high for

then So to you start and you there, larger way work sizes. your

inch gone will to I think all we they meter. meter but a It dimensions I’ve and that time. just say, a it than all from lot one have takes know is development they’ll a them, takes them, now more inch to two double the develop eventually

up have them to And catch we so like to range full going a have. and it’s time take

Richard Eastman

Got you.

great. Okay, Thanks appreciate it. again,

Operator

call to I’m Thank to turn I like you. questions this now would no back further for Meeusen closing time. remarks. And Mr. the Rich showing at

Richard Meeusen

we quarter. got good, and want going and We happen today. solid a for pleased lot forward, it the to the going was to thank given we in what’s quarter Yes, felt are joining of everybody projects a I about pretty with us Again were things the future. we’ve optimistic the

to you We to again in Thank will look you. future. talking the

Operator

you thank the This today’s participating Ladies does gentlemen, conclude conference. and program. for in

all You great Everyone a disconnect. have day. may

Badger Meter (BMI) 19 Jul 182018 Q2 Earnings call transcript