RALEIGH, NC - July 23, 2008
Sensus Metering Systems, a leading provider of high-value metering system solutions to utilities worldwide, today announced financial results for the fiscal first quarter ended June 28, 2008.
- Adjusted Net Sales increased 20% to $205.8 million from the first quarter a year ago.
- Total backlog reached $108.6 million, up 31% from a year ago. The potential aggregate future revenue of unshipped AMI endpoints was approximately $450 million at June 28, 2008, of which approximately $23 million is included in backlog.
- Adjusted EBITDA1 increased 37% to $26.0 million compared to the same quarter a year ago and as a percentage of Adjusted Net Sales increased to 13% from 11%.
- Cash flow from operations totaled $4.0 million for the quarter, compared with cash used of $6.2 million in the first quarter of the prior year.
- Total debt was reduced by $7.0 million during the quarter through the early repayment of a portion of the outstanding term loans.
- Cash-on-hand totaled $27.8 million as of June 28, 2008 and debt, net of cash, was reduced to $413.4 million, less than 4 times annualized first quarter Adjusted EBITDA .
About Sensus Metering Systems
The Sensus Metering Systems companies are leading world-class providers of high-value metering, Advanced Metering Infrastructure (“AMI”) and Automatic Meter Reading (“AMR”) system solutions for water, gas, electric and heat utilities as well as sub-metering entities globally. Additional linked businesses include Smith-Blair a leading provider of pipe clamp and coupling products for the water, gas and industrial markets, and Sensus Precision Die Casting, which produces complex, high quality die-castings.
FlexNet® provides the utility industry’s most reliable and flexible two-way AMI fixed network. Utility customers can benefit from the dependable performance of a dedicated, primary-use, FCC licensed and protected communications network combined with ANSI compliant metering, IPbased wide area communications, open standards home area networking, advanced smart grid products, and IP-based information systems. The Company delivers timely and accurate AMI communications through redundant RF data paths with greater RF power than competing systems. This allows utilities to communicate with a complete range of endpoint devices including smart water, gas and electric meters, intelligent home devices, and distribution automation equipment in any mix of rural and urban settings. FlexNet® provides a single-technology solution that reduces cost, mitigates technology risk, enables pricing flexibility and demand response, and improves operational efficiency through reliable performance, cross-vendor compatibility and system scalability.
All statements in this release, other than historical facts, are made in reliance on the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and are subject to change at any time. These statements reflect the Company’s current expectations regarding its financial position, revenues, cash flow and other operating results, business strategy, financing plans, forecasted trends related to the markets in which the Company operates, legal proceedings and similar matters. The Company’s expectations expressed or implied in these forward-looking statements may turn out to be incorrect. The Company’s actual results could be materially different from its expectations because of various risks. These risks, some of which are discussed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K (SEC File No. 333-113658) for the fiscal year ended March 31, 2008 as filed with the Securities and Exchange Commission on May 20, 2008, include its dependence on new product development and intellectual property, and its dependence on independent distributors and third-party contract manufacturers, automotive vehicle production levels and schedules, its substantial financial leverage, debt service and other cash requirements, liquidity constraints and risks related to future growth and expansion. Other important risks that could cause actual events or results to differ from those contained or implied in the forward-looking statements include, without limitation, the Company’s ability to integrate acquired companies, general economic and business conditions, competition, adverse changes in the regulatory or legislative environment in which the Company operates, customer cancellations and other factors beyond the Company’s control.Download PDF