Badger Meter Inc (BMI) 2024 Q3 法說會逐字稿

Ladies and gentlemen, welcome to the third-quarter 2024 Badger Meter earnings conference call.

女士們、先生們，歡迎參加 Badger Meter 2024 年第三季財報電話會議。

(Operator Instructions) It's now my pleasure to turn the conference over to Karen Bauer, Vice President of Investor Relations, Corporate Strategy and Treasurer.

（操作員說明） 現在我很高興將會議交給投資人關係、企業策略副總裁兼財務主管 Karen Bauer。

Please go ahead, Ms. Bauer.

請繼續，鮑爾女士。

Good morning and thank you for joining the Badger Meter third-quarter 2024 earnings conference call.

早安，感謝您參加 Badger Meter 2024 年第三季財報電話會議。

On the call with me today are Ken Bockhorst, Chairman, President and Chief Executive Officer; and Bob Wrocklage, Chief Financial Officer.

今天與我通話的有董事長、總裁兼執行長肯‧博克霍斯特 (Ken Bockhorst)；和財務長 Bob Wrocklage。

Also joining our call today is Barb Noverini, our new Senior Director of Investor Relations.

今天加入我們電話會議的還有我們新任投資者關係資深總監 Barb Noverini。

I've made the decision to retire after our annual shareholder meeting in the spring of 2025.

我決定在 2025 年春季年度股東大會後退休。

Barb and I will be working together over the next six months to see mostly transition Investor Relations, sustainability, and strategy activities.

巴布和我將在接下來的六個月內共同努力，主要關注投資者關係、永續發展和策略活動的轉型。

And I know she will be a great resource to the company and to you all in the years ahead.

我知道她將在未來幾年成為公司和你們所有人的寶貴資源。

But the countdown to my last earnings call begin with two to go after today.

但我上次財報電話會議的倒數從今天開始，還有兩場。

Moving on, the earnings release and related slide presentation are available on our website.

接下來，我們的網站上提供了收益發布和相關投影片簡報。

Quickly, I'll cover the Safe Harbor reminding you that any forward-looking statements made during this call are subject to various risks and uncertainties.

很快，我將介紹安全港，提醒您，本次電話會議期間所做的任何前瞻性陳述都面臨各種風險和不確定性。

The most important of which are outlined in our press release and SEC filings.

其中最重要的內容已在我們的新聞稿和 SEC 文件中概述。

On today's call, we will refer to certain non-GAAP financial metrics.

在今天的電話會議上，我們將提及某些非公認會計準則財務指標。

Our earnings slides provide a reconciliation of the GAAP to non-GAAP financial metrics used.

我們的收益投影片提供了所使用的 GAAP 與非 GAAP 財務指標的調整表。

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

這樣，我就把電話轉給肯。

Thanks, Karen.

謝謝，凱倫。

We will definitely miss your expert Safe Harbor reading skills.

我們一定會懷念您專業的安全港閱讀技巧。

But all joking aside, we recognize the importance of a professional IR function and consider ourselves very fortunate to have had Karen's expertise as Bob and I began our first public company CEO and CFO roles about six years ago now.

但拋開玩笑不談，我們認識到專業投資者關係職能的重要性，並認為自己非常幸運能夠擁有凱倫的專業知識，而鮑勃和我大約六年前開始擔任我們的第一個上市公司首席執行官和首席財務官。

It's also why we believe in well-planned transitions and we're happy to have Barb on board to work alongside Karen.

這也是我們相信精心計劃的過渡的原因，我們很高興 Barb 加入並與 Karen 一起工作。

Turning to the third quarter, I'm very pleased with our financial results which reflect continued strong performance across a broad array of metrics including delivering 12% year over year top-line sales growth against increasingly difficult comparisons.

談到第三季度，我對我們的財務表現感到非常滿意，這反映出一系列廣泛指標的持續強勁表現，包括在日益困難的比較中實現 12% 的同比營收成長。

We reported record operating margins of 19.5% with both year-over-year gross margin expansion and SEA leverage contributing.

我們的營業利益率達到創紀錄的 19.5%，毛利率年增率和東南亞槓桿率均有所貢獻。

We delivered strong EPS improvement even with a higher tax rate.

即使稅率較高，我們也實現了每股盈餘的強勁改善。

And last but not least, we generated robust year-over-year cash flow growth.

最後但並非最不重要的一點是，我們的現金流量較去年同期強勁成長。

In summary, our team continues to do a tremendous job in executing against our strategic priorities in support of our customers.

總之，我們的團隊繼續在執行我們的策略重點以支援客戶方面做出了巨大的努力。

I'll hand the call over to Bob to go through the details of the quarter and I'll come back to talk about market conditions and the outlook.

我會將電話轉交給鮑勃，讓他詳細了解本季度的詳細情況，然後我會回來討論市場狀況和前景。

Thanks, Ken, and good morning, everyone.

謝謝，肯，大家早安。

Turning to slide 4.

轉到投影片 4。

As we have been anticipating and communicating to you, our top-line sales growth rate did indeed moderate to a still strong 12% growth in the third quarter.

正如我們一直預期並與您溝通的那樣，第三季我們的營收成長率確實放緩至 12% 的強勁成長。

As a reminder, this 12% growth was on top of a 26% increase in the prior year comparable quarter.

需要提醒的是，這一 12% 的成長是在去年同期 26% 的成長基礎上實現的。

Total utility water product line sales increased 14% year over year as we continue to deliver on solid demand for our BlueEdge suite of utility smart water solutions.

由於我們繼續滿足對 BlueEdge 公用事業智慧水務解決方案套件的強勁需求，公用事業供水產品線總銷售額年增 14%。

Year-over-year growth was broad based including flow measurement, water quality, pressure and related communication solutions.

年成長基礎廣泛，包括流量測量、水質、壓力和相關通訊解決方案。

Notably, software-as-a-service revenues increased approximately 35% in the quarter, reflecting the increasing customer reliance on insights and analytics delivered from our industry leading BEACON digital solution.

值得注意的是，本季軟體即服務收入成長了約 35%，反映出客戶越來越依賴我們業界領先的 BEACON 數位解決方案提供的見解和分析。

Sales for the flow instrumentation product line were flat in the quarter, with solid order trends globally within our focused water-related applications offsetting modest declines across the array of deemphasized end markets.

本季流量儀表產品線的銷售額持平，我們重點關注的水相關應用領域的全球訂單趨勢穩定，抵消了一系列不那麼重要的終端市場的小幅下滑。

As noted in the release, as we move into the fourth quarter, we do expect the typical pattern of fewer customer operating days given the heavy US holiday season.

正如新聞稿中所指出的，隨著我們進入第四季度，鑑於美國假期旺季，我們確實預計客戶營業天數會減少。

In addition, hurricane-related recovery activities have the potential to temporarily delay certain Southeastern US utility projects in the near term.

此外，與颶風相關的恢復活動有可能在短期內暫時推遲美國東南部的某些公用事業項目。

It is still too early to quantify any possible impact.

現在量化任何可能的影響還為時過早。

Turning to margins, we were very pleased with the operating margin expansion of 260 basis points in the quarter, reaching a record high of 19.5%.

談到利潤率，我們對本季營業利潤率擴大 260 個基點感到非常滿意，達到 19.5% 的歷史新高。

Gross profit dollars increased 15% year over year.

毛利較去年同期成長 15%。

And as a percent of sales gross margins were 40.2%, a 110 basis point improvement from 39.1% in the prior year comparable quarter.

佔銷售毛利率的百分比為 40.2%，比去年同期的 39.1% 提高了 110 個基點。

For those ready to ask me if we are ready -- if we are set to declare a new gross margin normalized range, the answer is no.

對於那些準備問我是否準備好——如果我們準備宣布新的毛利率標準化範圍的人來說，答案是否定的。

While we were pleased with the outcome this quarter, one quarter is not a trend.

雖然我們對本季的結果感到滿意，但四分之一並不是一種趨勢。

And although we remain confident in the long term gross margin improvement trend line driven predominantly by positive structural mix which was evident this quarter, we are also confident in saying that the mix can and will be uneven quarter to quarter.

儘管我們對主要由本季度顯而易見的積極結構性組合推動的長期毛利率改善趨勢線仍然充滿信心，但我們也有信心說，這種組合可以而且將會在每個季度出現不平衡。

The overall higher volumes along with solid price/cost management also contributed to the year-over-year gross margin improvement.

整體銷售的增加以及穩健的價格/成本管理也促進了毛利率的年比改善。

SEAs expenses in the third quarter were $43.3 million, an increase of approximately $2 million year over year.

第三季SEA支出為4,330萬美元，較去年同期增加約200萬美元。

The spending increase was due primarily to personnel related costs including higher head count and salaries.

支出增加主要是由於人員相關成本，包括人員數量和工資的增加。

Despite this increase in growth spending, SEA as a percent of sales declined 140 basis points to 20.8% from 22.2% in the comparable prior year quarter on the higher sales.

儘管支出成長，但由於銷售額增加，SEA 佔銷售額的百分比從去年同期的 22.2% 下降了 140 個基點至 20.8%。

The income tax provision in the third quarter of 2024 was 25.3% compared to 20.3% in the comparable prior year period which benefited from a discrete tax benefit from equity compensation transactions.

2024 年第三季的所得稅撥備率為 25.3%，而去年同期為 20.3%，受益於股權補償交易的離散稅收優惠。

We continue to expect an ongoing effective income tax rate in the plus or minus 25% range assuming no change in overall corporate income tax rates.

假設整體企業所得稅率沒有變化，我們仍然預期有效所得稅率將持續在正負 25% 的範圍內。

In summary, consolidated EPS was a dollar rate in the third quarter of 2024, a 23% improvement from $0.88 in the prior year comparable quarter.

總之，合併每股盈餘以 2024 年第三季的美元匯率計算，比去年同期的 0.88 美元成長了 23%。

Primary working capital as a percent of sales was 21.7%, consistent with the prior quarter end; and 40 basis points of improvement from 22.1% at calendar year end.

主要營運資本佔銷售額的百分比為 21.7%，與上一季末一致；比日曆年末的 22.1% 提高了 40 個基點。

We continue to carefully manage working capital investments to support growth.

我們繼續謹慎管理營運資本投資以支持成長。

Record quarterly free cash flow of $42 million was 48% higher than the prior year's $28 million, largely the result of higher earnings and the effective working capital management.

創紀錄的季度自由現金流為 4,200 萬美元，比前一年的 2,800 萬美元高出 48%，這主要是收益增加和有效營運資本管理的結果。

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

這樣，我會將電話轉回肯恩。

Thanks, Bob.

謝謝，鮑伯。

Turning to slide 5.

轉到投影片 5。

You may recall that last quarter we introduced you to BlueEdge.

您可能還記得上個季度我們向您介紹了 BlueEdge。

In short, BlueEdge is the overarching name we've given to our tailorable suite of solutions that solve critical water challenges across the entire water cycle.

簡而言之，BlueEdge 是我們對可自訂解決方案套件的總稱，這些解決方案可解決整個水循環中的關鍵水挑戰。

It's a way to simplify for our customers including both utility and commercial and industrial users, the breadth of offerings available to best meet their needs and preferences today, and as they advance and change in the future.

這是一種為我們的客戶（包括公用事業、商業和工業用戶）簡化可用產品範圍的方法，可以最好地滿足他們當前以及未來的進步和變化的需求和偏好。

In June, we demonstrated the elements and connectivity of BlueEdge to our utility customers at ACE.

6 月，我們在 ACE 向公用事業客戶展示了 BlueEdge 的元素和連接性。

Last week, we did the same for our wastewater and industrial customers at WEFTEC.

上週，我們在 WEFTEC 為廢水和工業客戶做了同樣的事情。

We showcased a literal representation of BlueEdge, highlighting the various hardware and communication technologies that relay data to both our proprietary software solutions and to traditional SCADA or building management systems.

我們展示了 BlueEdge 的字面表示，重點介紹了將數據轉發到我們的專有軟體解決方案以及傳統 SCADA 或樓宇管理系統的各種硬體和通訊技術。

By taking that actionable data and providing true insights, we aid customers in making more informed decisions for efficient water management.

透過獲取可操作的數據並提供真實的見解，我們幫助客戶做出更明智的決策，以實現高效的水資源管理。

Customer interest and technical discussions at the show were robust with concrete examples of our solutions, improving water efficiency, resiliency, and sustainability.

展會上客戶的興趣和技術討論非常活躍，我們提供了解決方案的具體示例，提高了用水效率、彈性和可持續性。

And speaking of resilience, I wanted to highlight recent customer feedback we've received as it relates to the hard hit hurricane regions in the Southeastern United States.

說到復原能力，我想強調我們最近收到的客戶回饋，因為它與美國東南部颶風重災區有關。

Most importantly, the tragic loss of life and devastation from these storms is truly heartbreaking.

最重要的是，這些風暴造成的悲慘生命損失和破壞確實令人心碎。

Yet during these events, as well as Hurricane Beryl in Texas in July, our customers have confirmed that our solutions continued communicating information critical to maintaining clean water availability and to prioritize identified leaks and other fix and repair activities for countless end users even when utilities were without power.

然而，在這些事件以及7 月德克薩斯州的貝裡爾颶風期間，我們的客戶已確認，我們的解決方案持續傳達對於維持清潔水供應至關重要的信息，並為無數最終用戶優先確定已發現的洩漏和其他修復和維修活動，即使公用事業公司處於停運狀態。

This is only possible with a resilient cellular network.

這只有透過有彈性的蜂窩網路才能實現。

It demonstrates again that our differentiated solutions resulted in differentiated performance when it counted most.

它再次證明，我們的差異化解決方案在最重要的時候帶來了差異化的效能。

Finally turning to the outlook, the structural macro drivers that underpin technology adoption in the water industry are becoming more pronounced as evidenced by these extreme weather events and exacerbated by aging infrastructure and labor availability challenges.

最後轉向前景，支撐水務產業技術採用的結構性宏觀驅動因素正變得更加明顯，這些極端天氣事件證明了這一點，而基礎設施老化和勞動力供應挑戰則加劇了這種影響。

We continue to operate with an encouraging opportunity funnel, bid pipeline, and order book which bodes well for continued sales and earnings growth.

我們繼續以令人鼓舞的機會漏斗、投標管道和訂單簿進行運營，這預示著銷售和盈利的持續增長。

With our focus on high single-digit sales growth rates over the strategic cycle.

我們專注於策略週期內高個位數的銷售成長率。

As we noted in the press release and Bob's earlier comments, as we close out the year, we expect that the fourth quarter will include fewer customer operating days, given the various US holidays.

正如我們在新聞稿中和鮑勃之前的評論中指出的那樣，在我們結束今年時，考慮到美國的各種假期，我們預計第四季度的客戶營業天數將減少。

Additionally, we anticipate customers in the hurricane-impacted regions could potentially delay certain projects in the near term.

此外，我們預計受颶風影響地區的客戶可能會在短期內推遲某些項目。

It's still too early to quantify any potential impact.

現在量化任何潛在影響還為時過早。

And this type of situation serves as a reminder of the unevenness inherent in the industry.

這種情況也提醒人們，產業本身存在的不平衡性。

We remain steadfast in our commitment to existing capital allocation priorities and we have the balance sheet and cash flow generation profile to further invest in both organic and highly strategic in organic growth while we also provide an attractive dividend.

我們仍然堅定地致力於現有的資本配置優先事項，我們的資產負債表和現金流產生狀況可以進一步投資於有機成長和高度策略性的有機成長，同時我們也提供有吸引力的股息。

In summary, we remain excited about the opportunities ahead and our team remains engaged in driving continued exceptional results.

總之，我們對未來的機會仍然感到興奮，我們的團隊仍然致力於推動持續的卓越成果。

With that, operator please open the line for questions.

話務員請打開線路提問。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Scott Graham, Seaport Research Partners.

斯科特·格雷厄姆，海港研究合作夥伴。

Yes.

是的。

Hi, good morning.

嗨，早安。

And Karen, I start coverage.

凱倫，我開始報道。

I hope I didn't

我希望我沒有

(inaudible).

（聽不清楚）。

You are one of the great ones out there.

你是那裡最偉大的人之一。

And I'm very happy for you that for me, but I know that you are certainly will be helping the transition.

我為你們為我感到非常高興，但我知道你們肯定會幫助過渡。

But good luck to you (multiple speakers) obviously, we'll be speaking some more going forward.

但顯然，祝您（多名發言者）好運，我們接下來還會講更多內容。

So the one question I have and then I have a short follow up is, I know you guys talk about sort of high single-digit growth through a cycle.

因此，我有一個問題，然後我有一個簡短的跟進，我知道你們談論的是一個週期中的高個位數成長。

And I know you're careful not to measure that too specifically what have you.

我知道你很小心，不要太具體地衡量你所擁有的東西。

But is the implication there for 2025 since you're coming off three really strong years, including this one, that that might be sort of like a low- to mid-single-digit sales growth?

但是，由於您已經經歷了包括今年在內的三年強勁增長，因此 2025 年的銷售額是否會出現低至中個位數的增長？

Or is the measurement period a little bit different than what I'm thinking?

或者測量週期與我的想法有點不同？

Can you give us any thinking on what '25 means given that context?

您能否給我們一些關於「25」在這種背景下意味著什麼的思考？

Well, hi, Scott.

嗯，嗨，斯科特。

So welcome to coverage.

歡迎關注報道。

And it's interesting that question that you asked about the high single-digits through the cycle going forward because we were asked exactly that same question last year at about this time, about this year.

有趣的是，你問的這個問題是關於整個週期中高個位數的問題，因為去年的這個時候，也就是今年，我們被問到了完全相同的問題。

So as we look forward and we think about the five-year strategic cycle and the market dynamics that we have, the advantages that we have with our portfolio, the way that I think we've been able to deliver best-in-class execution.

因此，當我們展望未來並思考五年策略週期和我們擁有的市場動態、我們的投資組合的優勢以及我認為我們能夠提供一流執行力的方式時。

From year to year, as we always say, and remind people it can be uneven or from quarter to quarter.

正如我們常說的那樣，年復一年，並提醒人們，情況可能會不平衡，或者每個季度都可能不平衡。

But we feel strong coming into 2025.

但進入 2025 年我們感覺很強勁。

So it isn't like we're trying to signal that you should be expecting some sort of weakness coming into the next year.

因此，我們並不是想表明您應該預期明年會出現某種疲軟。

Okay.

好的。

I think based on my reading of your transcripts, I think that's all I'm going to get out of you.

我想根據我對你的筆錄的閱讀，我想這就是我要從你那裡得到的全部資訊。

So that's fine.

所以沒關係。

Karen is trained as well, Scott.

史考特，凱倫也受過訓練。

Well, I understood.

嗯，我明白了。

I'm glad to say that you're not seeing weakness, which for you guys would be, I guess, just to find as lesser growth.

我很高興地說，你們沒有看到弱點，我想，對你們來說，這只是發現成長放緩。

And look, you guys are doing a phenomenal job on the top line.

看，你們在營收方面做得非常出色。

When it comes to margins, there was a real nice pop there as well.

當談到利潤率時，那裡也有一個非常好的流行。

And I believe mix, you cited as the primary driver there, but your volumes were up as well.

我相信混合，你引用了那裡的主要驅動力，但你的銷量也有所增加。

I assume, and that drove some leverage and price/cost was positive, is what you're saying?

我想，這推動了一些槓桿作用，價格/成本是積極的，這就是你的意思嗎？

Is that sort of the ranking of the margin drivers?

這是利潤驅動因素的排名嗎？

Yeah.

是的。

So we typically don't get into kind of the sequential sizing or ranking, but you're exactly right.

因此，我們通常不會涉及順序大小或排名，但你是完全正確的。

This top-line growth is not a function of just mix or pricing.

這種營收成長不僅僅是產品組合或定價的結果。

It's absolutely unit volumes increasing.

單位體積絕對在增加。

It's actually absolutely an element of ASP and customer mix and project mix and product mix.

它實際上絕對是 ASP 和客戶組合、專案組合和產品組合的一個元素。

And then when you did hear our specific call out to price/cost benefiting margins.

然後當您確實聽到我們對價格/成本效益利潤率的具體呼籲時。

So those are the three elements contributing.

這些都是貢獻的三個要素。

Thank you, appreciate your answers.

謝謝您，謝謝您的回答。

Andrew Krill, Deutsche Bank.

安德魯·克里爾，德意志銀行。

Hi, thanks.

你好，謝謝。

Good morning, everyone.

大家早安。

And so my congrats to Karen as well.

我也祝賀凱倫。

Thank you for your help.

感謝您的協助。

So I wanted to ask one more on the 2025 sales outlook.

所以我想再問一下2025年的銷售前景。

Just -- I know, I think we're not going to get an explicit opinion but would an outcome as low as like flat or even down sales be very surprising to you, just given how the industry is so replacement driven and the positive mix up story over time?

只是 - 我知道，我認為我們不會得到明確的意見，但考慮到該行業如此替換驅動和積極的組合，低至持平甚至下降的銷售結果會讓您感到非常驚訝隨著時間的推移故事會怎樣？

Yes, a down year would be surprising to us.

是的，今年的下滑會讓我們感到驚訝。

If you look at our history, even in the COVID year when everyone else was down considerably, our utility business even grew 4% in the COVID year.

如果你回顧我們的歷史，即使在其他所有人都大幅下滑的新冠疫情年，我們的公用事業業務甚至在新冠疫情年增長了 4%。

It even grew 9% in the supply chain year.

供應鏈年度甚至成長了9%。

So regardless of any of these other factors or events, the macro drivers in the industry are still very strong.

因此，無論其他因素或事件如何，該行業的宏觀驅動力仍然非常強勁。

It just can have varying effects that one year might be 12%, another year might be 5%, but we certainly don't expect down years.

它只是會產生不同的影響，一年可能是 12%，另一年可能是 5%，但我們當然不會預期會下降。

Okay, great.

好的，太好了。

That makes sense.

這是有道理的。

And then on the hurricanes impact in the Southeast and they said you can't quantify it right now.

然後關於颶風對東南部的影響，他們說現在無法量化。

But like, do you have any maybe directionally like can you size what percent of the business like the Southeast is for Badger Meter?

但是，你是否有任何可能的方向性的想法，例如你能估量一下像東南部這樣的Badger Meter 業務的百分比是多少嗎？

Just so we can kind of try to get some sense of how big it could be.

這樣我們就可以試著了解它有多大。

Yeah.

是的。

So no, but let me take a couple of things.

所以不，但讓我說幾件事。

So one, I just want to point out on a couple of factors as we look at, into Q4 and into next year.

因此，我只想指出我們在第四季和明年所關注的幾個因素。

So this is the sixth year Bob and I have done this call and it's the sixth year that we pointed out that there are holidays in Q4.

這是鮑伯和我第六年進行這次電話會議，也是我們第六年指出第四季有假期。

So that's not new for anybody who's followed our story.

所以這對任何關注我們故事的人來說都不是什麼新鮮事。

Second, with the hurricane impact.

二是受颶風影響。

I think it's important to remember that 75% of our utility revenue is sold direct to end users.

我認為重要的是要記住，我們 75% 的公用事業收入直接出售給最終用戶。

So we have really great communicative open communication relationships directly with our customers.

因此，我們直接與客戶建立了良好的開放式溝通關係。

The distributors that we have that cover the other 25% are outstanding.

我們擁有的涵蓋另外 25% 的經銷商非常出色。

But our sales model, which we've been doing now for six-ish years with the change in adoption of technology, gives us insights into how people are operating.

但隨著科技採用的變化，我們的銷售模式已經持續了六年左右，讓我們深入了解人們的運作方式。

And when you're thinking about installing meters and other sensors throughout a network that requires people to go out and do work and when power lines are down and other issues are happening, this can have an impact.

當您考慮在整個網路中安裝儀表和其他感測器時，需要人們外出工作，並且當電力線路中斷且發生其他問題時，這可能會產生影響。

And the way that we've always operated is that we are here for customers when and where they need us.

我們一貫的經營方式是，無論何時何地，我們都會為客戶提供協助。

So there's no specific sizing, there's no specific issue.

所以沒有具體的尺寸，沒有具體的問題。

I would remind you that if you go back to 2020 when COVID was hitting, we had a pretty good take on what was going to happen because we talked directly to most of our customers and we didn't lay people off and we roared right back in Q3.

我想提醒您，如果您回到 2020 年，當新冠疫情肆虐時，我們對將要發生的事情有一個很好的認識，因為我們直接與大多數客戶交談，我們沒有裁員，而且我們立即反擊在第三季。

The first quarter of 2021, we were the first to signal that there was potential supply chain challenges.

2021 年第一季度，我們率先表示潛在的供應鏈挑戰。

We still grew 9% that year.

那一年我們仍然成長了 9%。

So all that we do is we try to point out to you the things that could potentially be the causes on of unevenness.

因此，我們所做的就是嘗試向您指出可能導致不均勻的原因。

What I can assure everyone is that we are extremely good at controlling what we can control and still delivering really good results.

我可以向大家保證的是，我們非常善於控制我們可以控制的事情，並且仍然能夠取得非常好的結果。

So I know that was a long-winded answer that didn't specifically tell you, but I hope you got the point of what we mean here.

所以我知道這是一個冗長的答案，沒有具體告訴你，但我希望你明白我們的意思。

Yeah.

是的。

And if I just have one quick last one and just -- if there were some delays, is it fair to think that should hit in the first quarter of 2025?

如果我只有最後一個，如果有一些延遲，那麼認為應該在 2025 年第一季實現公平嗎？

And there's no chance they just get canceled out, right, correct?

而且他們不可能被取消，對吧？

I would say for sure, that they would be delays, not cancellations, but I can't promise they would be the first quarter.

我可以肯定地說，它們將是延遲，而不是取消，但我不能保證它們會是第一季。

Okay, great.

好的，太好了。

Thanks so much.

非常感謝。

Rob Mason, Baird.

羅布梅森，貝爾德。

Good morning.

早安.

Thanks for taking the question.

感謝您提出問題。

You talked about normalizing backlog, I think you've been commenting around that.

您談到了積壓工作正常化，我想您一直在對此發表評論。

So we've gone through this year, again, maybe emphasis on the word normalizing, not normalized.

所以我們今年再次強調了「正常化」這個詞，而不是「正常化」。

So just -- can you give us any sense as to where maybe your backlog level is relative to what you would consider a more of a steady state?

那麼，您能否告訴我們，您的積壓水平與您認為更穩定的狀態相比可能處於什麼水平？

Assuming it's higher than that, if that's correct?

假設它比這個更高，如果這是正確的？

Yeah.

是的。

So Rob, so prior to an extremely building backlog, prior to last quarter where we called out that we ate into it a bit more, we've never sized the backlog, but we didn't call it out this quarter because there was no meaningful change within it.

所以，羅布，在積壓數量急劇增加之前，在上個季度我們聲稱我們吃得更多之前，我們從未確定過積壓的規模，但本季度我們沒有將其公佈，因為沒有其中有意義的改變。

So it still remains very positive.

所以它仍然非常積極。

All the areas of the market that we look at from customers in the engineering phase to what's in the bid phase to what's in our backlog to what we're shipping, remains as solid as it's ever been.

我們關注的所有市場領域，從工程階段的客戶到投標階段的產品，再到我們積壓的產品，再到我們正在發貨的產品，都保持一如既往的穩固。

Sure.

當然。

I also wanted to ask about, you noted the growth rate in your SaaS revenues, which was again, really strong.

我還想問一下，您注意到 SaaS 收入的成長率，這再次非常強勁。

Can you maybe tear that down a little bit?

你能把它拆掉一點嗎？

Just -- should we think that that is solely a kind of a unit driven growth rate?

只是──我們是否應該認為這只是一種單位驅動的成長率？

Or as you've offered new services, the leak detection, just a number of things obviously under BlueEdge now, what is the contribution besides unit growth to that from other services that are rolling into that SaaS component?

或者，當您提供新服務、洩漏檢測等顯然屬於 BlueEdge 的一些服務時，除了單位增長之外，其他正在納入該 SaaS 組件的服務的貢獻是什麼？

Yeah.

是的。

So I think you've picked up on the first clue.

所以我認為你已經找到了第一個線索。

Again, we always talk about for AMI, our software-as-a-service being a function of 100% attachment rate to hardware sales.

再說一次，我們總是談論 AMI，我們的軟體即服務是硬體銷售 100% 附著率的函數。

So the leading indicator is when we talk about more ORION cellular radios sold, the lagging indicators, of course, then SaaS uptake because of a 100% attachment rate on a per meter per month basis.

因此，當我們談論更多的 ORION 蜂窩無線電銷售時，領先指標是滯後指標，當然，然後是 SaaS 的採用率，因為按每月每米計算的連接率為 100%。

That is the lion's share of the recurring revenue stream SaaS.

這是 SaaS 經常性收入流的最大份額。

That doesn't mean on the fringes there aren't additional impacts from those factors that you mentioned, additional water quality devices, leak detection devices, et cetera.

這並不意味著在邊緣，您提到的這些因素、額外的水質設備、洩漏檢測設備等不會產生額外的影響。

But where we stand today, 99% of the revenue stream is related to meter to cash, surrounding BEACON and AMI.

但就我們今天的情況而言，99% 的收入流與儀表現金相關，圍繞著 BEACON 和 AMI。

And so the driver today is absolutely additional hardware units in the field, bringing with it the additional insights and intelligence that we talked about in the script and -- of the benefits that offers to customers.

因此，今天的驅動程式絕對是該領域的額外硬體單元，帶來了我們在腳本中討論的額外見解和智能，以及為客戶提供的好處。

I see, that's helpful.

我明白了，這很有幫助。

If I could squeeze, one last one in just, maybe again going back to the hurricane impacts, the emphasis or the implications maybe that could be an interruption headwind in the business, but the leak detection business is a newer business for Badger.

如果我能擠出最後一個，也許再次回到颶風的影響，重點或影響可能會成為業務的中斷逆風，但洩漏檢測業務對 Badger 來說是一項較新的業務。

So is that a business that can see actually some incremental demand as those units are deployed out into the field to try to inspect for potential disruptions when you have instances like that?

那麼，當這些單位被部署到現場以嘗試在遇到此類情況時檢查潛在的中斷時，企業實際上可以看到一些增量需求嗎？

I just don't know, the history nature of that business as well.

我只是不知道該行業的歷史性質。

Yeah, Rob.

是的，羅布。

So as we built out our portfolio of adding new sensors and software, that's one of the reasons that we're so excited about, some of the pressure monitoring leak detection capabilities that we've added.

因此，當我們建立添加新感測器和軟體的產品組合時，這就是我們如此興奮的原因之一，我們添加了一些壓力監控洩漏檢測功能。

Events like this just make people realize how much more necessary those products and services are.

這樣的事件只會讓人們意識到這些產品和服務是多麼必要。

And so we were excited about it before; we're just as excited about now.

所以我們之前對此感到興奮；我們現在同樣興奮。

A hurricane doesn't make us feel better about it, but it surely shows the benefits that utilities have.

颶風並不會讓我們感覺更好，但它確實顯示了公用事業公司所帶來的好處。

And then on top of that, just as I called out in the script, the fact that our customers in the hardest hit parts of the storm, not just the storm, but the others continue to communicate throughout.

最重要的是，正如我在劇本中指出的那樣，事實上，我們的客戶在風暴受災最嚴重的地區，不僅是風暴，而且其他地區也一直在繼續溝通。

So when they can have our battery-powered cellular communications telling them where their issues are throughout their system, it's a heck of a lot more efficient than guys driving around looking for problems and it's a lot safer than sending people out, looking through areas where perhaps there's down power line.

因此，當他們可以讓我們的電池供電的蜂窩通信告訴他們整個系統的問題出在哪裡時，這比開車到處尋找問題的人要高效得多，而且比派人出去尋找問題​​的區域要安全得多。

So the combination of the whole portfolio coming together is really truly seen at unfortunate times like this.

因此，在這樣的不幸時刻，整個投資組合的結合確實是真實可見的。

Yeah.

是的。

Thank you.

謝謝。

Appreciate it.

欣賞它。

(Operator Instructions)

（操作員說明）

Nathan Jones, Stifel Nicolaus.

內森瓊斯，斯蒂菲爾尼古拉斯。

Good morning.

早安.

This is Adam Farley on for Nathan.

我是亞當法利 (Adam Farley) 替補內森 (Nathan)。

My first question I wanted to ask around BlueEdge and the way that you frame it, are you seeing any acceleration and selling more bundled offerings to customers?

我想問的第一個問題是關於 BlueEdge 以及您建造它的方式，您是否看到任何加速並向客戶銷售更多捆綁產品？

I know it's still kind of early, but I imagine your expectation eventually is to gain wallet share with customers.

我知道現在還為時過早，但我想您最終的期望是贏得客戶的錢包份額。

Yeah.

是的。

What's really exciting about how we've built this is, it allows us to approach any customer anywhere at wherever they are in their technological journey.

我們的建造方式真正令人興奮的是，它使我們能夠在技術之旅中隨時隨地接觸任何客戶。

So they could be a water quality customer that then we expand their reach through Badger Meter, through the BlueEdge into metering or lift station monitoring.

因此，他們可能是水質客戶，然後我們透過 Badger Meter、BlueEdge 擴大他們的覆蓋範圍，進入計量或提升站監控領域。

Or if someone's on the metering side, we can bring them in with water quality stations and the like, so it's back and forth both ways.

或者，如果有人在計量方面，我們可以透過水質站等將他們引入，這樣就可以雙向進行。

Some customers also look at it as the full portfolio up front.

一些客戶也將其視為預先的完整產品組合。

Some look at it as it's great to know that you have all this.

有些人認為很高興知道你擁有這一切。

I'm going to do my AMI first, that I'm going to roll the water quality after that I'm in whatever order that they see.

我將首先執行 AMI，然後按照他們看到的順序調整水質。

So when we use the word tailorable, what we mean by that is a customer can tap into the BlueEdge portfolio and pick whatever standard solutions they need based on whatever their current concerns are.

因此，當我們使用「可自訂」這個詞時，我們的意思是客戶可以利用 BlueEdge 產品組合，並根據他們當前關心的問題選擇他們需要的任何標準解決方案。

Not to be confused with customizable, which would imply highly engineered different products and services.

不要與可自訂相混淆，這意味著高度設計的不同產品和服務。

And that strategy is not new, I mean BlueEdge, absolutely and how we talk about it and position it with customers is new.

這種策略並不新鮮，我指的是 BlueEdge，絕對是，我們如何談論它並向客戶定位它也是新的。

But the idea of cross selling and bundling and being able to take metering customers and sell them water quality and vice versa.

但是交叉銷售和捆綁的想法是能夠吸引計量客戶並向他們出售水質，反之亦然。

That's been the thesis and the behavior since acquisition, starting back in 2020.

自 2020 年收購以來，這一直是我們的論點和行為。

So I just want to make sure that it's not like that.

所以我只是想確保事情不是這樣的。

This is some brand new strategy.

這是一些全新的策略。

It's absolutely a better way and a more understandable way and a more tangible way to bring that tailorable solution set to market.

這絕對是一種更好、更容易理解、更切實的方式，可以將可客製化的解決方案推向市場。

But the strategy itself underpinning is not new.

但該戰略本身並不新鮮。

Yeah, I understood.

是的，我明白了。

And that's a very helpful color.

這是一種非常有用的顏色。

I guess shifting gears to capital allocation.

我想應該轉向資本配置。

You recently raised your dividend by 26% annually.

您最近將股息每年提高了 26%。

Balance sheet is still very healthy net cash position.

資產負債表的淨現金狀況仍然非常健康。

What are the main priorities?

主要優先事項是什麼？

Maybe talk about a little bit about the M&A funnel.

或許可以談談併購漏斗。

Anything that would be helpful.

任何有幫助的事。

Thank you.

謝謝。

Yeah.

是的。

So capital allocation priorities remain constant with how we viewed this for several years now.

因此，資本配置優先事項與我們多年來的看法保持一致。

So first and foremost, we've been the R&D leader when it came to cellular AMI and software and ultrasonics in the market; now expanding that also into leadership and remote water quality monitoring, pressure and so forth.

因此，首先也是最重要的是，在市場上的蜂窩 AMI 以及軟體和超音波方面，我們一直是研發領導者；現在也擴展到領導力和遠端水質監測、壓力等。

Second, yeah, 32 consecutive years of increasing dividends is something that is certainly important to the capital allocation priorities.

其次，是的，連續 32 年增加股息對於資本配置優先事項來說當然很重要。

And then third, yeah, M&A.

然後第三，是的，併購。

So we're really proud of the four deals we've done in the last 3.5 years.

因此，我們對過去 3.5 年中完成的四筆交易感到非常自豪。

And we keep a pretty strong funnel around this sensor area that can continue to plug into BlueEdge, whether that's more water quality, more pressure, more software, interesting global footprint, all those things come into play.

我們在這個感測器區域周圍保留了一個非常強大的漏斗，可以繼續插入 BlueEdge，無論是更高的水質、更大的壓力、更多的軟體、有趣的全球足跡，所有這些都在發揮作用。

So it hasn't changed.

所以它沒有改變。

We continue to remain disciplined and look for value where we know it, it translates into a customer satisfaction.

我們繼續保持紀律，在我們知道的地方尋找價值，它轉化為客戶滿意度。

All right.

好的。

Thank you for taking my questions.

感謝您回答我的問題。

Sure.

當然。

Tate Sullivan, Maxim Group.

泰特·沙利文，馬克西姆集團。

Thank you.

謝謝。

Thank you for your help over the years, Karen.

感謝您多年來的幫助，凱倫。

And Ken, can you talk about the ex international markets a bit?

肯，您能談談前國際市場嗎？

Have you allocated more sales there?

你在那裡分配了更多的銷售嗎？

Is there still a water quality monitoring opportunity international?

國際上還有水質監測機會嗎？

Can you address that market, please?

請問您能解決這個市場嗎？

Yeah.

是的。

So some of the things that have occurred over the past couple of years already.

過去幾年已經發生了一些事情。

We've certainly seen the growth of the acquisitions that had larger footprint with long standing customer relationships.

我們當然看到了具有長期客戶關係的更大足跡的收購的成長。

So particularly, s::can having an installed base in over 50 countries, ATi having extremely long-lasting strong relationships in the UK and US, Syrinix long-lasting UK relationship.

特別是，s::can 在 50 多個國家/地區擁有安裝基礎，ATi 在英國和美國擁有極其持久的牢固關係，Syrinix 與英國擁有持久的關係。

So we've been able to leverage those to have these BlueEdge-type conversations like Bob talked about even before BlueEdge was announced to the world.

因此，我們已經能夠利用這些來進行 BlueEdge 類型的對話，就像 Bob 在 BlueEdge 向全世界宣布之前談到的那樣。

We've been having those types of discussions and making certain improvements there.

我們一直在進行此類討論並做出某些改進。

We've been growing globally.

我們一直在全球範圍內發展。

It's just -- it gets a little bit muted by the fact that our North American growth has been so outstanding that the global growth has gotten a little bit lost in it.

只是——由於我們的北美成長如此出色，以至於全球成長在其中有點迷失，這一事實讓它變得有點減弱。

But we're happy with what we're seeing in terms of growth and we're really excited about what we're seeing in expanded relationships for BlueEdge globally.

但我們對所看到的成長感到滿意，並且對 BlueEdge 在全球範圍內擴大關係感到非常興奮。

Any particular areas?

有什麼特定領域嗎？

Or I mean, I know that the growth has been a bit higher in Europe historically, but still broad-based international approach.

或者我的意思是，我知道歐洲的成長歷史上要高一些，但仍然是廣泛基礎的國際方法。

Well, I'll just give you one example.

好吧，我只舉一個例子給你聽。

We could certainly talk more.

我們當然可以談更多。

But if you hear a lot about AMP cycle 8 in the UK and we talked a lot about the relationships that ATi has, we talk a lot about the relationships Syrinix had has still just part of us.

但是，如果您在英國聽說過很多關於 AMP Cycle 8 的信息，並且我們談論了很多關於 ATi 的關係，那麼我們也談論了很多關於 Syrinix 的關係，但它們仍然只是我們的一部分。

And we've been able to have high level discussions with several of those utilities about how to help them meet their needs for AMP8, whether that be a potential in smart metering and software, whether that be around river monitoring, whether that be around leak detection, customer satisfaction.

我們已經能夠與其中幾家公用事業公司進行高層討論，討論如何幫助他們滿足 AMP8 的需求，這是否具有智能計量和軟體的潛力，是否涉及河流監測，是否涉及洩漏檢測，客戶滿意。

A lot of the pieces that we've been able to provide here in the US are the same that they're looking for there and then there's other regions of the world, too.

我們在美國提供的許多產品與他們在美國以及世界其他地區尋找的產品相同。

But just one specific example that we've been cracking into.

但這只是我們一直在研究的一個具體例子。

Thank you very much.

非常感謝。

Yeah, thank you.

是的，謝謝。

Thank you.

謝謝。

We have no further questions.

我們沒有其他問題了。

So I'll turn the call back over to you, Karen.

所以我會把電話轉回給你，凱倫。

Great.

偉大的。

Thank you all for joining our call today.

感謝大家今天加入我們的電話會議。

For your planning purposes, our fourth-quarter calls tentatively scheduled for January 29.

出於您的規劃目的，我們的第四季電話會議暫定於 1 月 29 日舉行。

Please don't hesitate to reach out with any follow up questions you might have.

如果您有任何後續問題，請隨時與我們聯繫。

Have a great day.

祝你有美好的一天。

This concludes today's call.

今天的電話會議到此結束。

Thank you for joining.

感謝您的加入。

You may now disconnect your line.

現在您可以斷開線路。