RALEIGH, NC - October 24, 2008
Sensus Metering Systems, a leading provider of high-value advanced metering infrastructure (“AMI”) and metering system solutions to utilities worldwide, today announced financial results for the fiscal second quarter ended September 30, 2008. “Sensus continues to grow from a position of strength and a solid financial foundation, and our second quarter results bear that out,” said Peter Mainz, Chief Executive Officer and President of Sensus. “Each of our global businesses continues to build upon the momentum established in fiscal 2008 and in the first quarter of fiscal 2009. Even in a tough economy and in the face of record-high commodity and metal prices, our order intake remains high, we are signing long-term contracts and we continue to achieve double-digit financial growth. We will continue to monitor the impacts of the global economic situation so we can make adjustments to our operating plan as needed to adapt to changing market dynamics.”
Highlights
- Adjusted Net Sales1 increased 15% to $206.6 million from the same quarter a year ago.
- Total backlog reached $107.7 million, up 22% from a year ago. The potential aggregate future revenue of unshipped AMI endpoints was approximately $432 million at September 30, 2008, of which approximately $21.8 million is included in backlog.
- Adjusted EBITDA1 increased 20% to $26.1 million compared to the same quarter a year ago and as a percentage of Adjusted Net Sales1 increased to 13% from 12%.
- Cash flow from operations totaled $18.6 million for the first half of fiscal 2009 compared with $15.3 million in the first half of the prior year.
- Total debt was reduced by $11.2 million for the first half of fiscal 2009 through the early repayment of a portion of the outstanding term loans.
- Cash-on-hand totaled $25.6 million as of September 30, 2008 and debt, net of cash, was reduced to $411.4 million, approximately four times annualized 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. For more information, please visit the company’s web site at www.sensus.com.
About FlexNet®
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 radio frequency (“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 singletechnology 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 Issued: October 24, 2008 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.
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