Badger Meter Reports Record Second Quarter Results
Sales set new all-time record for any quarter; earnings and EPS set
new second quarter records
Badger
Meter, Inc. (NYSE: BMI) today reported record results for the second
quarter ended June 30, 2016.
Second Quarter 2016 Highlights
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Net sales of $103,820,000 for the second quarter of 2016 were a record
for any quarter and increased 5.0% from sales of $98,896,000 for the
second quarter of 2015.
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Net earnings were a second quarter record of $9,400,000, a 19.0%
increase from net earnings of $7,901,000 for the second quarter of
2015.
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Diluted earnings per share were a second quarter record of $0.65, an
18.2% increase from diluted earnings per share of $0.55 for the second
quarter of 2015.
First Half 2016 Highlights
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Net sales were $204,390,000 for the first half of 2016, a 12.0%
increase from sales of $182,540,000 for the first half of 2015.
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Net earnings were $17,390,000 for the first half of 2016, a 43.4%
increase from net earnings of $12,128,000 for the first half of 2015.
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Diluted earnings per share were $1.20 for the first half of 2016, a
42.9% increase from diluted earnings per share of $0.84 for the first
half of 2015.
Operations Review
“Our strong second quarter performance was driven by higher sales of
residential and commercial municipal water products, particularly sales
of commercial metering products and technology solutions which were up
significantly over the second quarter of last year,” said Richard A.
Meeusen, chairman, president and chief executive officer of Badger Meter.
“Sales of our newest municipal water products continue to grow at a fast
pace. Sales of both our BEACON® Advanced Metering Analytics
(AMA) solution with ORION® cellular technology and our
E-Series® Ultrasonic meters increased substantially in the
second quarter,” said Meeusen.
“Building on our history of product innovation, we introduced our new
E-Series® Ultrasonic Plus meter at the recent American Water
Works Association (AWWA) annual conference in Chicago. This newest
addition to our E-Series product family features a patented flow
restriction valve that enables water utility operators to open, close
and partially close the valve from the utility office or other location,
saving time and money for the utility. The new meter, which offers the
only patented flow restriction valve in the market, was well received by
customers who viewed the on-site demonstration,” said Meeusen.
Meeusen said the higher second quarter municipal water product sales
more than offset lower sales of flow instrumentation products, which
continued to be impacted by softness in the industrial markets the
company serves.
“The gross profit margin was 37.9% in the second quarter of 2016,
compared to 35.5% for the same quarter last year. The improvement
reflected the higher sales volumes and lower brass prices,” added
Meeusen.
Conference Call and Webcast
Badger Meter management will host a conference call to discuss the
company’s 2016 second quarter results on Thursday, July 21, 2016, at
10:00 AM Central/11:00 AM Eastern time.
Interested parties can listen to the call live on the Internet through
the company’s website: www.badgermeter.com
or by dialing 1-877-294-2949 and entering the passcode 33447247.
Listeners should dial in to the call at least 5-10 minutes prior to the
start of the call or should go to the website at least 15 minutes prior
to the call to download and install any necessary audio software.
A telephone replay of the conference call will be available through
Thursday, July 28, 2016, by dialing 1-855-859-2056 and entering the
passcode 33447247. The webcast will be archived on the company’s website
until its next earnings release.
About Badger Meter
Badger Meter is an innovator in flow measurement, control and
communications solutions, serving water utilities, municipalities, and
commercial and industrial customers worldwide. The Company’s products
measure water, oil, chemicals, and other fluids, and are known for
accuracy, long-lasting durability and for providing valuable and timely
measurement data. For more information, visit www.badgermeter.com.
Certain statements contained in this news release, as well as other
information provided from time to time by Badger Meter, Inc. (the
“Company”) or its employees, may contain forward looking statements that
involve risks and uncertainties that could cause actual results to
differ materially from those in the forward looking statements. The
words “anticipate,” “believe,” “estimate,” “expect,” “think,” “should,”
“could” and “objective” or similar expressions are intended to identify
forward looking statements. All such forward looking statements
are based on the Company’s then current views and assumptions and
involve risks and uncertainties. Some risks and uncertainties
that could cause actual results to differ materially from those
expressed or implied in forward looking statements include those
described in Item 1A of the Company’s Annual Report on Form 10-K for the
year ended December 31, 2015 that include, among other things:
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the continued shift in the Company’s business from lower cost,
manually read meters toward more expensive, value-added automatic
meter reading (AMR) systems, advanced metering infrastructure (AMI)
systems and advanced metering analytics (AMA) systems that offer more
comprehensive solutions to customers’ metering needs;
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the success or failure of newer Company products;
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changes in competitive pricing and bids in both the domestic and
foreign marketplaces, and particularly in continued intense price
competition on government bid contracts for lower cost, manually read
meters;
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the actions (or lack thereof) of the Company’s competitors;
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changes in the Company’s relationships with its alliance partners,
primarily its alliance partners that provide radio solutions, and
particularly those that sell products that do or may compete with the
Company’s products;
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changes in the general health of the United States and foreign
economies, including to some extent such things as the length and
severity of global economic downturns, international or civil
conflicts that affect international trade, the ability of municipal
water utility customers to authorize and finance purchases of the
Company’s products, the Company’s ability to obtain financing, housing
starts in the United States, and overall industrial activity;
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unusual weather, weather patterns or other natural phenomena,
including related economic and other ancillary effects of any such
events;
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the timing and impact of government funding programs that stimulate
national and global economies, as well as the impact of government
budget cuts or partial shutdowns of governmental operations;
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changes in the cost and/or availability of needed raw materials and
parts, such as volatility in the cost of brass castings as a result of
fluctuations in commodity prices, particularly for copper and scrap
metal at the supplier level, foreign-sourced electronic components as
a result of currency exchange fluctuations and/or lead times, and
plastic resin as a result of changes in petroleum and natural gas
prices;
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the Company’s expanded role as a prime contractor for providing
complete technology systems to governmental entities, which brings
with it added risks, including but not limited to, the Company’s
responsibility for subcontractor performance, additional costs and
expenses if the Company and its subcontractors fail to meet the
timetable agreed to with the governmental entity, and the Company’s
expanded warranty and performance obligations;
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the Company’s ability to successfully integrate acquired businesses
or products;
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changes in foreign economic conditions, particularly currency
fluctuations in the United States dollar, the Euro and the Mexican
peso;
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the inability to develop technologically advanced products;
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the failure of the Company’s products to operate as intended;
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the inability to protect the Company’s proprietary rights to its
products;
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disruptions and other damages to information technology and other
networks and operations due to breaches in data security;
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transportation delays or interruptions;
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the loss of certain single-source suppliers; and
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changes in laws and regulations, particularly laws dealing with the
content or handling of materials used in the Company’s products.
All of these factors are beyond the Company's control to varying
degrees. Shareholders, potential investors and other readers are
urged to consider these factors carefully in evaluating the forward
looking statements contained in this news release are cautioned not to
place undue reliance on such forward looking statements. The
forward looking statements made in this document are made only as of the
date of this document and the Company assumes no obligation, and
disclaims any obligation, to update any such forward looking statements
to reflect subsequent events or circumstances.
Badger Meter company news is available 24 hours a day, on-line at: http://www.badgermeter.com.
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BADGER METER, INC.
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CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
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(in thousands, except share and earnings per share data)
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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June 30,
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June 30,
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2016
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2015
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2016
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2015
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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Net sales
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$103,820
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$98,896
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$204,390
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$182,540
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Cost of sales
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64,424
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63,753
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125,983
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117,322
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Gross margin
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39,396
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35,143
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78,407
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65,218
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Selling, engineering and administration
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24,474
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22,961
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50,679
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45,983
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Operating earnings
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14,922
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12,182
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27,728
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19,235
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Interest expense, net
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228
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319
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498
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636
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Earnings before income taxes
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14,694
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11,863
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27,230
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18,599
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Provision for income taxes
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5,294
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3,962
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9,840
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6,471
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Net earnings
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$9,400
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$7,901
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$17,390
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$12,128
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Earnings per share:
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Basic
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$0.65
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$0.55
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$1.20
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$0.84
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Diluted
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$0.65
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$0.55
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$1.20
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$0.84
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Shares used in computation of earnings per share:
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Basic
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14,443,539
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14,379,450
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14,434,397
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14,361,464
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Diluted
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14,525,705
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14,443,266
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14,514,196
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14,434,560
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BADGER METER, INC.
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CONSOLIDATED CONDENSED BALANCE SHEETS
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(in thousands)
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Assets
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June 30,
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December 31,
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2016
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2015
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(Unaudited)
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Cash
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$
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7,356
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$
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8,163
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Receivables
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61,326
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56,643
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Inventories
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80,715
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78,596
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Other current assets
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5,505
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5,926
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Total current assets
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154,902
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149,328
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Net property, plant and equipment
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90,753
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90,920
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Intangible assets, at cost less accumulated amortization
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54,328
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57,348
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Other long-term assets
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9,832
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9,906
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Goodwill
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47,978
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47,978
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Total assets
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$
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357,793
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$
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355,480
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Liabilities and Shareholders' Equity
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Short-term debt
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$
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53,590
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$
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71,360
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Payables
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22,175
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19,155
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Accrued compensation and employee benefits
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11,142
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9,663
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Other liabilities
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6,972
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4,366
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Total current liabilities
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93,879
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104,544
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Long-term employee benefits and other
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18,001
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18,661
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Shareholders' equity
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245,913
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232,275
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Total liabilities and shareholders' equity
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$
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357,793
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$
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355,480
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View source version on businesswire.com: http://www.businesswire.com/news/home/20160720006409/en/ Copyright Business Wire 2016
Source: Business Wire
(July 20, 2016 - 4:13 PM EDT)
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