BMI - Earnings call transcript Q4 2018

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Operator

Ladies and gentlemen, welcome to the Fourth Quarter 2018 Badger Meter Earnings Conference Call. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Today's call is being recorded, Tuesday, February 5, 2019. It is now my pleasure to turn the conference over to Karen Bauer, Director of Investor Relations and Corporate Strategy. Please go ahead, Ms. Bauer.

Karen Bauer

to Meter welcome earnings quarter and call. conference morning, the fourth Badger XXXX Good

in with which are forward-looking various Officer; the me and call reminding subject Quickly the On today to Safe the during are Officer; Senior of and important SEC our Harbor, Wrocklage, most this I'll Johnson, are cover Chief that press Ken uncertainties, Bob Chief made release Rick risks Financial any outlined and and you VP of Administration. statements Executive President Bockhorst, call filings.

today's Finally, that we note certain please to non-GAAP metrics. on call will refer financial

Our metrics. reconciliation With a earnings over of financial turn I'll to the call GAAP schedule press that, release to the provides Ken. non-GAAP

Ken Bockhorst

for fourth right. call today. earnings joining for All and of Karen, Thanks, quarter thanks to you all

results in pleased the Sales well as experienced fourth of the we record, outlook. for quarter, details $X.XX. come I and very positive with continuing after that, strategic and our in were walk full-year and fourth back are with quarters initiatives the our will will key for the the of as of the the our We quarter talk momentum a quarter. through quarter, about you past adjusted couple EPS and Bob the

limelight, clearly to of for will make Rich the Before decades. He comfortably for CEO, he person Rick nearly for final to to step the time. Johnson, be described turning success the decisions is the the Meeusen. was call Bob, Badger them a execute thank and "Kingmaker," instrumental us the call happen saw two Rick implements helps want as recognize behind which the and great Meter over He I and first who to missed. with is as standing on the never did the but sometimes

approval have unanimously Bob broad the fit began join Now Knowing and introduce was our the that complement the who Badger metric-serving existing the Meter would let Bob. the a He's leadership final in for finance with a leadership nearing retirement, selected to to that, you from turn I'm now him broader for extremely let six and teams to Rick With culture now me. over to and search we The I and months, and have among Rick both joined the candidates, me in I Bob. past style CFO the team qualified the of worked August. happy us alongside call onboard. me Board,

Bob Wrocklage

be as and thank Beverly Smiley, well retiring. who our Thanks, you, will Ken, Rick, also Corporate Controller

past of guidance your the six the two counsel made months, you and the over For have guidelines. stated

For we reasons, nor to sales. do profitability individual competitive specific terms, do specific on disclose general other components line of we not than in cost product comment

earnings, not example, guidance provide future long-term did conversion We or the For do not on cost we brass this of specific interest serve believe material components. other or as shareholders. our

accelerated and the share or be after-tax the will the to earnings resulting announced the talking operating vesting commentary. results, back to I adjusted $X.XX retirements. Corporate and results, half-a-million at arrive of charge required during the Turning my adjusted adding equity Controller from pre-tax share To per for CFO I'm results per

currency service of well rate water reflecting approximately meters sales level net and Flow volumes X% International of domestic the radios related the X% water fourth Now and quarter increased year-over-year million, year-over-year, as consistent year. water instrumentation $XXX XX.X%, in two industrial impact acquisitions year-over-year. increased million the the distributor targeted period to $XX translation, of were profit unfavorable prior and oil total in demand sales over in of fourth higher offset turning our not largely to basis revenue. gas. water, categories. year. Xo last grew the and and municipal waste the product increased to between sales, was compared improvement end-markets, quarter instrumentation The same technology as The our foreign comparison. improved increase X% sales and operating flow due those point of most sales significant, two to was and was Municipal by solid newer within channel modestly favorable notably, Adjusted distribution; was

upper-half Our quarter difficult Selling, of the XX% for Administrative call leverage year to we was our but gross expense modest prior normalized of Engineering, XX.X%, margin from margin resulting or more year-over-year would in the Gross and SEA is than offset decline comparison. the XX%. range what a

along as with from year-over-year radios, We continue We mix the input absorption service favorable with ultrasonic growth pricing to experienced remains of manufacturing sales net sales meters cost product and sequentially. impact meters with highest brass revenue. see volume of positive higher-than-average favorable the stable

quite it year. favorable quarter fourth However, wasn't the as of as last

federal representing items lower to transition yielded in non-recurrence EPS the growth XX% which the tax The rate impact in In compared For increase a over the with tax total, of and year, an change sales, modest down about basis or to of year, XX.X% Adjusted the rate tax a in in XX% of XXXX. to the controls was last place. quarter, percent the largely spending prior declined a as adjusted large quarter were example, the million year-over-year. $X.XX included provision the $X.XX in fourth XXXX XX% Bottom quarter drag reasonably-sized statutory with tax were in were meter-only fourth the a and the expenses that net municipality year. year-over-year, $XX.X project, the of fourth XX% XXX certain income year-over-year modestly current fourth and was prudent recorded quarter. of the decline in from year SEA added prior in points earnings EPS as quarter margins line, of reform,

million, free the flow represents sheet remains XXXX million compared Our year. for was conversion $XX net the flow to balance adjusted solid. for $XX earnings the approximately year. in of Free prior cash cash XXX% year

us and well that, the as capital growth I to will a remains as for priority fund which to declined EBITDA provides back to debt than ample to clearly which less return through adjusted X.X dividends, turn to the Ken. acquisition With over organic allocation company. times, net liquidity call capital shareholders Our

Ken Bockhorst

Bob. Thanks,

Just and customers, for this us year. the clear the provide comments are backlog, a question and received on practice our before and new good Having our Like few quarterly will feel for so to on us guidance, a be managing I order business Bob trends, Meter longstanding providing times, fiscal that the more will Rich rates the than not our some begin we year, Rick about be as we want continue that, long-term. specific few Badger earnings or said annually. I I of the to I we've and focused well which position color continuing

quarters E-Series year third whole. always, translating feedback along but still quarter-to-quarter for as with overall positive realizing. being Cellular and the We're As strongest, increasingly the well anticipated, seasonality benefits the backlog of commercial to wins. in demonstrated a are because bodes second our the with about unevenness quote and our partly customers experiencing ORION This difficulty] are and cellular, the inquiries is [technical benefits of activity

our reads extend the technology first quarter the and compatible is increase radio the the residential of for remain our M-Cellular into D-Flow complete offering, on-demand progresses and commercial utilities. life, integration and to battery offering improve LTE schedule thereafter. range, costs, We on the meters of will as into XG-ready, lower ORION number Our E-Series

as leadership remained material further the to input as as transition the availability Our our have year and expect taper off. SEA costs stable we progresses, leverage duplicative costs

in row, our want thank in we've to Finally, for serve our their a position, three XXXX unsettling for employees that In XXXX. maintain we're tax and XXs. happy positive we're to reaping commitments to remain efforts and of With our leadership to and of technology XXXX your macro working summary, rates our strong beyond. our I had to and alongside to adjusted exposure look as in to strong globe some quarters across mid minimal China, our the to take all benefits them such forward questions. in the the outlook reinforce uncertainties the execute R&D

Operator

[Operator the first with Instructions] question from Stifel. Nathan line of comes Your Jones

open. is line Your

Nathan Jones

everyone. morning, Good

Ken Bockhorst

Hi, Nathan.

Nathan Jones

guys provide working philosophically guys you where capital or out think you think said XX but think and think you you extended long-term, working guidance SG&A XX you where some you be you or - an time? operate, should if over should already long-term be should levels to annual maybe on the settle guidance of should gross know margins, actually provide capital where anything or don't well, of period think where about I'm long-term, don't wondering maybe with you could more I metrics where you maybe SG&A those like that, kinds of quarterly guidance and talk start just

Ken Bockhorst

nice some out. shot to get good Nathan, guidance. good Yes, try That a us kind provide of question, was to and right

so So of of things long-term a about building to first improvement. you I'll a was touch I as when the culture was them, you few on a of asked call and the there, of I think we lot but the talked about on - continuous one questions

we've SEA, and I'll start around capital, around with long-term working first. capital So setting been goals working

XX-ish around the So years mid-XXs. working into the right us the range. that I now we're see over next probably of could couple

XX-ish talked situation, adjusted. be so couple suspect R&D, to the about be could years next range. isn't but with just to a would we this complete We're continue we that I were XX.X% at the leverage into SEA, in to As just invest Bob leveraging going over going of

definitely head. had off the business what You of first know, those targets the I of longer two some are ones setting kind were and other there, my but managing we of for the are term top missed the accordingly. you

Bob Wrocklage

takeaway leverage terms think of both is working achievement a year, in well as but targeting big capital I continued single of there So in key see over - don't long-term, step as percent the improvement primary the any sales. a think SEA mostly as I we

Nathan Jones

Okay.

despite is continuing the So next it the flow free to should a over about we thinking in R&D? capital few years tailwind working way investment some is cash be

Bob Wrocklage

Yes, that's yes. fair,

Ken Bockhorst

Right.

Nathan Jones

Okay.

into reacting a you kind margins to of first integration those and our of for year. half color makes what company's improvement color understand, I there, that are guarded On have to I can Rick difference reduces while, it that us for - I customers that being much technology the in how and about is could much us any which products any supposed the performance talking the how give that of on products pretty this maybe on the if know D-Flow and know costs? on products give been how in competitive start is here Rich the to reasons, you

Ken Bockhorst

So let a in that couple of me parts. take

activity E-Series that's as our as well have first, the features our are annual which first our and like had we quoting includes So into temperature have meters growth three Last we for space, commercial metering. the the and around excitement launch from the see three to on tremendous was sensing and and meters added do launched commercial inch going there four the the sensing, year expect we inch Ultrasonic distribution and and meeting, four pressure similar plans mechanical sales meeting, forward. commercial week in space certainly would we to conversion

far engineering value the that's projects. our as in next As residential,

rolling We kind most out end will of but mid QX, sizes begin of toward the likely QX. smaller the

the much much how and right, to working You're about through gain anything enhancement share to still is how say before costs. we going at I transitional. Bob be is I'm are here looking going and be margin

stop short just on So to I'm that. going

Nathan Jones

I'll the pass that's for on. thanks fair, color, Ah, it

Ken Bockhorst

Thank you. right. All

Operator

comes Baird. Eastman with Your next the line from of question Richard

is open. line Your

Richard Eastman

that. prices kind like bit increase price going little are instrumentation flow forward to approach pricing, was our morning I and XXXX? going think I going the October. the we you Will took I best price little here a speak in does luck then could price a look bit typical hey, or forward? Yes, how to a good How January we think to we And here pricing Kingmaker, stick of in XXXX January unusual, of increase, maybe typical with we bumped the

Ken Bockhorst

Yes. Sure, sure.

of difficulty] frankly year going January the in So list this caution is that just space, keep you and the and in to things flow January space, price are did the which normally described do have. normal many it our to would more the increase, you're - went normal. price October competitive a in we kind In you price I in - what out of increase we we in we was just nature, would we instrumentation, did not did in both you've well, - utility [technical utility we like mind project-based, see list early do increase are correctly, of them, but

Richard Eastman

Okay.

did you of one So January do 'XX? not in

Ken Bockhorst

Correct.

Richard Eastman

Okay, you got into, okay, October, pull that into I you. forward

Ken Bockhorst

Yes.

Richard Eastman

[technical the difficulty] to for And is your [technical can difficulty]. speak you

Ken Bockhorst

you. for Rick. Rick's I - there final Yes. well is - answer

Richard Eastman

wouldn't I expected have more.

there whether the Okay. into thinking some know, in traction, kind around the then the That's year gives more And international I'm unfolded, utility business, unfolded was it around you even fine. international We're business kind fourth a as little maybe you how orders that quarter of and or of the question in end tight. parsing be the Mexico, it - XXXX know, utility Middle of in a terms us East, look might perform? of any

Ken Bockhorst

mean, I Middle East, the and we didn't optimistic meaningful but East in didn't anything but any No, Mexico, the orders still see the see we're we overall environment on in still through on flow us feels Middle the big same to quarter, either.

Richard Eastman

Okay.

year. typically kind the are last I significant think Okay. of biggest third of quarter the the question, fairly you know, they're we and then And quarters, know second quarters

actually but in into where last we seen quarter any around of revenue, a trend year actually here? unusual the few just we've but up-sequential we weather for an I trend a to thoughts any Midwest, years down weather? first just of Early break Given in - of in may bit and the little see the the due thoughts mean, quarter, the January, typically, the should certainly seasonality maybe be sequentially revenue may in the aware we can kind terms that in see just here we

Ken Bockhorst

caution but… thing idea be, anybody Well, and way do I'll will the you is don't of what weather I have we're only first I XX% through the quarter, does, the think that the no

Richard Eastman

Yes…

Ken Bockhorst

quarter, was working right, particular Yes. one installations, out But a the so to days people know, year, think was because certainly last we too week, impact be a weather bad last I - going last that remember, weren't year, some some think doing week, I QX you of so felt if pretty last impact for XX you obviously, but it's closed, in year-over-year, lot year say were early facilities there's to that a quarter negative - and

Richard Eastman

okay. okay, Okay,

Ken Bockhorst

QX. of I like that terms you in then say, just to be QX worse quarter, we a normal be then, cautioning And should is going don't than, feel

Richard Eastman

relative I water maybe from mean, fall we've and data is waste, But 'XX, then, your what to business I there the and macro macro Okay. give seen or we're just industrial caution perspective? in be And promise around last question, water concern largely unaffected. any may, flow the that seeing some points oil around on here, gas, of business, the industrial part a may rollover just around, should

Ken Bockhorst

Yes.

think in that I markets about, our small enough core we've talked So, still target we're and we…

Richard Eastman

Much Okay, very appreciated. good. Well, thank you.

Ken Bockhorst

Yes, thanks. Okay.

Operator

of question of comes Connors next Scattergood. & Your from line Ryan the Boenning

Your line open. is

Ryan Connors

that? that active entry question. for for there's just ultrasonic talked I what is been about big thanks Great interpret little some a in a can the well couple about international actually you've you there guess hearing A metering some talk of the new U.S. becoming you. the the lot The one talk more picture players about on and bit questions you're how front some

Ken Bockhorst

they that are we of any a impact. we're one a was told with has continuing it. an right? who but them, There be strong another from that our see haven't happen, really higher didn't wins the so around meaningful was an conversion some of of really show another make than so growing impact were have meter of in Yet trying did them to now XX% U.S., up about here, there. kicking at them, quarter, revenue. watching of Rich didn't meter past, that, to you it's to players people, release really we been And see European the and to but we some one was the announcement last some they're we we're In aware fourth year, seen start it anything going has There good

Ryan Connors

metering that Okay, big the not America first that's phenomenal good at standpoint CEO, side, of a for there's utility you've within of a North question to obviously is picture real as hear. nature, My Ken the lot got that given other just business but based was you official room in your same space. from can portfolio call time, maneuver this a

think there handing if decade look differently, the Badger the your reins now for at fees, vision upstream How over I to your successor. in look are your company, into from is a what or you're vision guess that adjacent what's So I or you expanding and respect?

Ken Bockhorst

a did And strategic Ryan, only like to that plan. give I five-year XX-year sounds Well, probably it horizon, I'll so. try a but

we're by do very, we We're going of to more think, that what's a in space. And and to definitely history in I as R&D handle future. lot do So to would company innovation. have And and a monitoring. a think in going just the us that getting that's of reasonable available of really good long very metering continue investing to be it than a

Ryan Connors

Okay, fair a enough. lot. Thanks

Ken Bockhorst

you. Sure. Thank

Operator

line Your with next the Hasan Doza comes question WAM. from

line open. Your is

Hasan Doza

and Hi, questions, did by fourth the kicked notice into deck good up Two 'XX? year-over-year, versus this presentation the trends to receivables quarter underlying morning the did thanks of taking account for reasons everyone up in it's helpful. or quarter kind any receivable one quarter same I

Rick Johnson

I so seeing XXXX. is growth those reflection a in the Middle and you're East of that think Yes, what we had clearly numbers revenue

there're know you payment differences and terms, practices in otherwise. As pay regional

base modestly about. anything international than that other as standard course of concerned a or that terms. it's the an so we're that North residual balance nothing as piece that function payment would call currently international pretty So as receivable our across But of well a American largely customer I as we're carrying higher outlier

Hasan Doza

$XX the million, of magnitude? in of like like, already booked international magnitude, it it payments million of what's the belief waiting which you're piece How sales, have how on, or order you on is order a is $X much kind ballpark in much

Rick Johnson

than that practice specifically - we're amount. know the on it'll be in of commenting but don't less I that Yes, not

Hasan Doza

Ken in for future and you acquisitions. seven, the about be is priorities is my the for toward allocation to allocation more number slides Ken And pie as which according capital of chart kind more talks about kind highlighted the second Okay you slide thank geared your capital of to going question

have what thoughts the love you to of that countries would hear your kind on pronounced would based terms view it your appears forward… on hear be strategic to a love view in deck, of about, are likes of of I particularly terms regions, thoughts more I going given and that in So opportunities slide acquisitions thinking to kind your acquisition your you

Ken Bockhorst

Yes. Sure. Good No. question.

think continuing to the is, not guess, debt, down have about us really pay you we looking activity. rather I we're So into way redeploy M&A than now some it disciplined should because virtually that to

monitoring. regions we definitely a not So as just interest going regions I with have, global that we're that something can There're sell is globally crusade, able the win water to several interest the that customers portfolio well but is that I sell mentioned that go us, think being we as already pipeline activity. with, tuck-in to or sure us M&A have not, of previously, we whether frankly, it's some that there's quality on to we're we certainly that to can or as

water type not going we're out company go but the buy to in to a not So and go add we're in companies. going certainly quality and a out going monitoring buy space. to huge We're China,

Hasan Doza

Okay. you. Thank

Ken Bockhorst

You're welcome.

Operator

question of line comes from the Richard with Verdi Coker Palmer. Your next

Your line open. is

Richard Verdi

taking Hi, call. good you morning, thank my and for

on years time wish over the want it to did And just appreciate congratulate very an much. of I your your know a and getting to you. you I all all retirement. Rick. your and thought retirement to Thank just job in best you say, really all Rick, I First, you well-deserved I the wanted excellent you times

Rick Johnson

Great. Thank you.

Richard Verdi

question to first to but kind ahead. Ryan's. of Ken, the the going a So the you second would from follow-up, the just list what mentioned company's on initiatives sorry, had I'm just both Go first that but that guys question say his go you the you ahead. Yes, that question would follow-up a pursue? be the

Ken Bockhorst

Go question. ahead. your finish No,

Richard Verdi

sense the just mentioned I'm gives XX - vision years. of us focus the you'll of what where first? will you had that you give see us five a kind be where just in hoping what He or

Ken Bockhorst

specifically would of that What add? be into? countries mean what going color of types so Yes, do technologies what you we we you're the type Is asking?

Richard Verdi

Yes, you. will Thank be perfect. that

Ken Bockhorst

Yes, sounds great.

- So

Richard Verdi

just be also name company And wonderful. if you would it the could

Ken Bockhorst

Yes.

to think So customers we've we could been as type other both looking perhaps scoping quite and bit and of we've that utility been regions gas sell Petrochem we regions and existing out HVAC. technologies could we our the the at doing as our to where oil a leverage well spaces take and water

good has to much a to So someone depends internal be I it also too but the want we've map on available space. about in don't publicly that got disclose pretty

quality that willing So be I it leverage the I things think be can if the I today, companies to already can But are around we sell think to could tell more prescriptive. you what monitoring would have to about. if customers which the sell around should specifically you pretty be you that around to we going world in think water close

Richard Verdi

you for And question. That's great. another that. very much question, it's then, the Thank just high-level last

point points data there's watching You inflation, we've or I any some data over in this of year maybe and from or economic wondering is climb seen the see points last and for other just them was if any to few company's cost maybe pressures XXXX the these expecting Meter sort Badger cost seen months, data like if know, wages not? we've pressures

Ken Bockhorst

pressures our and satisfy costs, because not of know team had been for certainly sure couldn't without people a team those and and increases we with QX watching and issues, but huge of to job electronic ahead the fantastic could out lot getting we're and challenges that proud some performance the price. that of a we wage making I'm have customers that offset taking fact supply our we immune inflation talking that cost constraints are our did costs we about of parts of really a Well, in with

year. but we're a doing first think this we're wage every I anybody year So good else it off, costs going job to have inflation really like we mitigating those have

than on going I and but electronics and not to so like headwind ahead and everybody we've great our stay can every that's done else we're got be just commodity eyes we've a costs to that different job. think taking action So we normal a far,

Richard Verdi

excellent That's thank the Appreciate guys. you much color, time very for it.

Ken Bockhorst

Thank you.

Operator

question with Capital. Rafn from Brian the Morgan comes next line Your Dempsey of

line Your is open.

Brian Rafn

guys. Good morning,

Ken Bockhorst

Brian. Hi,

Brian Rafn

you Hi, it's years. just got say, I'm XX I been it's buddy, miss to to Rick going

best So retirement your know you job a get in enjoyable to to it's you've done all the been fabulous you. and to

Rick Johnson

you. Thank

Brian Rafn

ask me adopters Cellular do XG or you the Let adoption on can in the network they bids those across ORION what how and talk bit a roll looking Radio early LTM, that, about quotes as a the and at little you country see in that kind purchases? of utilities out making

Ken Bockhorst

Sure. big Well, us, right. move this is a for really

whatever radios has really redesigned LTM this incorporated it, other XG, the that's it. or the continue so is use ahead in want about to important we So ready to support it happened for and in anywhere chips ready any utilities the to go, that XG XG, to and thing of XG, lose understand we're goes the we that us capability network to don't of our now

So additionally move, benefits reach, reads, hoping everyone's battery it's it's really whether reduces it customers longer life, cost. better On-Demand a for increases been the for the and a things our significant

to of we've got for is and mayors terms be conferences municipalities accepted, the this of talking really market be it's getting at big for it opportunities with going us it. about we're of to large part overall and acceptance, the a confident AT&T front absolutely and smartcity alliance, in great feedback being deal that we're So in

and deal getting great we're big really on a it's So feedback it.

Brian Rafn

come right kind like we're of standpoint of the a that From high Rich Okay. confident… and big you very question of family and legacy from Rick's level team from take as you standpoint and the the

Ken Bockhorst

Which one was do think better? you

Brian Rafn

you and - nice, a way, in think top that's I that's are legacy. know, a good don't I guys

about how out a do the forever, expanding I a mean you paternalistic, that Meter, employees maintain the see bit got talked stay maybe you and that very see changed culture too? very how see You years do business, little the five, and you and does Badger at guys how strategic out culture, get strong XX you that you or you going

Ken Bockhorst

the year tell going Yes, so absolutely priding old that's XXX preserve is company the for all to these itself first the everybody we're that on been I thing innovation it years. that's I'm about that of sincere and legacy been,

the my at So foremost people mind, some force cellular quite as technologies absolutely that in we our to changing the been with have because that the past capabilities new great is have the and long-term bit be to sales we've in on sell more adding of team and business employees same over to had. from first the we've time a long-term the able we that benefit having sales here customers we're conjunction

it's people we in, to a evolution sure people are tests So when certainly an the to hired skills change. the we're be me, It more have going additive other culture I serious to that all evaluations the will going board when these it, to and we're I culture really of cycle hired the bring including on we and bring Bob, than what exhaustive take when way we of doing be be do. in we're smart but to making something and Karen, that everybody very going about things was and in the end change and

Brian Rafn

appreciate I answer. it, the Got

so Let me acquisitions, to talked you dollars relative ask many do the about than little see the some revenue you, parameters sales less deals look been in a we size on wouldn't bit how at there you have of acquisitions talked and of your think your see not size massive transformation. the kind you to philosophy you - the do little bit on going maybe basis, niche that see How of really pricing? I kind you're a

Ken Bockhorst

the we right. too big, there have a deal are market that not that that's Yes, right technology too may think can about tell already be and as it's share, I you we the in small, base be U.S. customer the there but would strong technology, you would leverage if deals through

that So companies completely and we've we're times XXX been our years. not out and what are size three swallowing or four interested in going for then changing over

is will probably to I'd be the probably $XX spot, $XX between go if million to but So I million somewhere had a $XX won't we definitely huge. be sweet digestible say size meaningful definitely we right million,

Brian Rafn

you you fronts also in that acquisitions multiple look and war Yes, having at of of be that you're would versus would those one cycle offs more digestibility where say the multiple acquisitions size? making

Ken Bockhorst

not a are it's, picking companies precluded No, of different leverage think small We together. I could be that it through we're could that. think that from different technologies that I doing would we couple up possible be

Operator

from Your comes the of Berenberg. Buscaglia next with question line Andrew

open. line Your is

Andrew Buscaglia

guys, Hey my thanks questions. taking for

Ken Bockhorst

bet. you Andrew, Hi

Andrew Buscaglia

sound recall you are then want internally? side, know don't targets to for talk ultrasonic I guys it very to thought growing set or can you growth the percentage as your out a want of to very normal it if of is that is industry point what the is about be out long-term as looking years obviously it what but just of from like and a I the parse you what your and May touch past calls, growth. quarter rate I about be have for you if you that your sales, on do expect greater this going or fast, seems of this you sales at interesting five or

Ken Bockhorst

more meter slightly not XX% Yes, a revenue, of our than quarter revenue, it's of so it's right. first our

and people residential plus that we other that the about the have I but ton and radios moving being a be include years. see it certainly but few continuing a the side runway I what the the XX% not of grow put over and seeing guess the that surely more than side. would ramp revenue To doesn't on excites me the say could what of that meter out I pieces percent ultrasonic on commercial on building is line that next in So to up we're have toward full technology still the which

Andrew Buscaglia

would that's and presentation million guys comment Okay, a believe see of had you past helpful about smart $XX you of for additional then revenue I percent about every adoption metering.

still to? in now side, with you is Although maybe or you - lower referring what can know, expectation longer I'm what what or happened your so that the

Ken Bockhorst

to just cities, a to but radio meter average of perhaps sell sell it which you brass E-Series great, the price because they happily a third no tell me a you people and we'll size which on we to the on with buy meter still that what implement software back trying a selling to one technology go they a let so of but Yes, plus is on number is depends plus that meter it technology package. would if way put what how fast instead this

So on just kind think lever if think but I it don't that times is dollar people matters amount meaningful, change, as about changes every three a X% put greatly. it I it you of would certainly a as

Andrew Buscaglia

Okay, okay.

Operator

comes line Rafn Morgan of next Your the Instructions] [Operator from Capital. with Dempsey question Brian

open. line Your is

Brian Rafn

follow-up. a just Ken Yes,

new that these still seeing that start and or where you are XG, the walk-by systems, do the really be viable and drive-by Cellular disappearing what of ORION LTM move there's does you to legacy installations? things or technology geographies Galaxy to and with As some might the they old are cannibalize one-off

Ken Bockhorst

Yes, to go but those doing absolutely been are with decide cellular. that's want XX they that to viable drive-by may for us city still that you years might a have

no out from drive by. for cellular go rather of That's can someone people going to from or chain than it nag is fine flexible. to all the But It up straight perfectly and using move utilities. perfectly by. technology acceptable lot at can extremely really doesn't a drive they So

Brian Rafn

price the was projects, appreciate number for just obviously works through but the Got I pricing what you. increase? that that. was kind January, What No, official different increase of in

Ken Bockhorst

across had X% between averaged to we out X% Generally XXXX implemented the board. January and in what

Brian Rafn

a weather. And a something and of talked or Rick fourth with Okay. Was was bit something bit warmer what then quarter? the favorable it in a weather any there - little winter, about little

Ken Bockhorst

don't I any that had know impact. if

felt it normal know. me. I think to don't I

Brian Rafn

Then How do with relative your footprint? manufacturing manufacturing. production maybe today you thought are feel to where all you any Okay, right.

Ken Bockhorst

hurting before the operations Well, a implemented our haven't been call really but we haven't culture said us, have on improvement. as continuous I of

do So normal footprint. we just year quality, process. what be asked delivery, to and improving Footprint is we will definitely are is at something But continue don't of that driving through look focus. improving on you the improvement continuous a have every we an are business safety, part natural about going And, I cost. as the our intense operations that. we will throughout focus continually to a any

Brian Rafn

that between kind the and prototyping then adjunct you concept, that a time you or, making to time to moving compressing little really of to rapidly, with to at Ken, design pretty you relative that, is bringing market, when today? look any are the And engineering of more an kind cycle Okay. production advances are that concept sale where happy cycle to maybe looking at it

Ken Bockhorst

people team great have a job. will our It does to be never but gotten with who that. enough, So never will be know know me will I fast that happy

Brian Rafn

All Okay. right.

Ken Bockhorst

yes. faster be to it want always I'll But

Brian Rafn

Okay, thanks guys. Appreciate.

Ken Bockhorst

you. thank right, All

Operator

remarks. questions There over this are Bauer queue no the call will the time. back Ms. turn Karen closing to for at I in further

Karen Bauer

joining Thank our today. for you all call

planning quarter all be for XX. might you For call first a any scheduled April questions day. Have our have. tentatively follow-up day is purposes, your great to I'll take around

Operator

call. This conference does conclude today's

now disconnect. may You

Badger Meter (BMI) 5 Feb 192018 Q4 Earnings call transcript