Itron Files 2015 Annual Report on Form 10-K

LIBERTY LAKE, Wash.--()--Itron, Inc. (NASDAQ:ITRI) today announced that it has filed its Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended Dec. 31, 2015 with the Securities and Exchange Commission (“SEC”). The Form 10-K also includes revised financial statements for fiscal years ended Dec. 31, 2014 and 2013.

As previously announced, Itron delayed the filing of its 2015 Form 10-K to review revenue recognition on contracts for which the Company had not been able to demonstrate Vendor Specific Objective Evidence (“VSOE”) of fair value for maintenance associated with certain software solutions. The Company has completed its review and has determined that revisions to correct misstatements in its previously issued financial statements were required. Accordingly, the Company’s 2015 financial results included in the Company’s press release dated Feb. 17, 2016 as well as the financial statements for years 2014 and 2013 have been revised to reflect the deferral of certain revenue and costs that the Company previously recognized in earlier periods. In addition, the revised periods reflect other adjustments for items previously considered immaterial and for changes in estimates subsequent to the Company’s preliminary results announcement.

“We are pleased to have concluded the review of our revenue recognition accounting and to have filed our Form 10-K for 2015,” said Philip Mezey, Itron’s president and chief executive officer. “As we anticipated, the revised accounting treatment impacts primarily the timing of revenues and costs for certain software contracts and does not affect the Company’s cash generation or balances. Importantly, our 2016 operating results to date continue to be on track with our plans, our pipeline of business is strong and we are successfully executing against our strategic initiatives for profitability and growth. We look forward to providing an update to our full year 2016 financial guidance with our second quarter earnings announcement.”

The Form 10-K for the fiscal year ended Dec. 31, 2015 with a reconciliation of the adjustments to the financial statements for 2014 and 2013 can be found on the SEC’s website at www.sec.gov and on Itron’s investor webpage at http://investors.itron.com.

Impact of Revisions to Previously Reported Preliminary 2015 Results

The revisions had the following effect compared with the Company’s preliminary 2015 GAAP results previously reported on Feb. 17, 2016:

  • Revenue and gross profit. Total revenues and cost of revenues increased $5.7 million and $8.2 million, respectively. Gross profit decreased $2.4 million, with no material impact on gross margin percentage. The changes are primarily due to the Company’s revised revenue recognition for certain contracts that resulted in the deferral of revenues and costs from prior periods into 2015 and adjustments to warranty estimates.
  • Operating expenses and pre-tax income. Operating expenses increased $16.9 million related primarily to revisions in the accounting estimates of provision for legal, bad debts and the restructuring accrual. Total pre-tax income was reduced $19.3 million to $37.1 million.
  • Income tax impact. The income tax provision decreased $7.2 million related primarily to lower pre-tax income.
  • Net income and EPS impact. Net income attributable to Itron decreased $12.1 million to $12.7 million, and GAAP diluted EPS decreased 31 cents to 33 cents. Non-GAAP diluted EPS decreased 28 cents to 73 cents.
  • No impact to cash and cash equivalents. The revisions did not impact the Company's free cash flow or its cash and cash equivalents balances for any of the affected periods.

Update on First Quarter 2016 Form 10-Q and Filing Extensions

On May 23, 2016, Itron received notice from The Nasdaq Stock Market (“NASDAQ”) that its plan to regain compliance with NASDAQ Listing Rule 5250(c)(1) and its request for an extension to Sept. 12, 2016 to regain listing compliance has been approved. Itron also obtained waivers from its creditors that extend the due dates to Sept. 12, 2016 for annual audited financial statements and quarterly unaudited financial statements.

The Company continues to finalize adjustments to its revenue recognition accounting for certain software and maintenance contracts and complete its financial statements for the first quarter of 2016. Itron expects to file its first quarter Form 10-Q as soon as practicable.

As previously announced, the Company engaged Deloitte & Touche LLP in March 2016 as its independent audit firm for the year ending Dec. 31, 2016.

About Itron

Itron is a world-leading technology and services company dedicated to the resourceful use of energy and water. We provide comprehensive solutions that measure, manage and analyze energy and water. Our broad product portfolio includes electricity, gas, water and thermal energy measurement devices and control technology; communications systems; software; as well as managed and consulting services. With thousands of employees supporting nearly 8,000 customers in more than 100 countries, Itron applies knowledge and technology to better manage energy and water resources. Together, we can create a more resourceful world. Join us: www.itron.com.

Itron® is a registered trademark of Itron, Inc.

Forward-Looking Statements

This release contains forward-looking statements concerning our expectations about operations, financial performance, sales, earnings and cash flows. These statements reflect our current plans and expectations and are based on information currently available. The statements rely on a number of assumptions and estimates, which could be inaccurate, and which are subject to risks and uncertainties that could cause our actual results to vary materially from those anticipated. Risks and uncertainties include the timing and ability to regain compliance with the reporting obligations of the Securities and Exchange Commission within any exemption period granted by NASDAQ, the rate and timing of customer demand for our products, rescheduling of current customer orders, changes in estimated liabilities for product warranties, adverse impacts of litigation, changes in laws and regulations, our dependence on new product development and intellectual property, future acquisitions, changes in estimates for stock-based and bonus compensation, increasing volatility in foreign exchange rates, international business risks and other factors that are more fully described in our Annual Report on Form 10-K for the year ended Dec. 31, 2015 and other reports on file with the Securities and Exchange Commission. Itron undertakes no obligation to update publicly or revise any forward-looking statements, including our business outlook.

Non-GAAP Financial Information

To supplement our consolidated financial statements presented in accordance with GAAP, we use certain non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted EPS, adjusted EBITDA and free cash flow. We provide these non-GAAP financial measures because we believe they provide greater transparency and represent supplemental information used by management in its financial and operational decision making. Specifically, these non-GAAP financial measures are provided to enhance investors’ overall understanding of our current financial performance and our future anticipated performance by excluding infrequent or non-cash costs, particularly those associated with acquisitions. We exclude certain costs in our non-GAAP financial measures as we believe the net result is a measure of our core business. Non-GAAP performance measures should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP. Our non-GAAP financial measures may be different from those reported by other companies. A more detailed discussion of why we use non-GAAP financial measures, the limitations of using such measures, and reconciliations between non-GAAP and the nearest GAAP financial measures are included in this press release.

Statements of operations, segment information, balance sheets, cash flow statements and reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures follow.

 
Itron, Inc.
Comparison of Key 2015 Financial Metrics
to Preliminary Results Announced February 17, 2016
 
(Unaudited, in thousands, except per share data)
    (announced Feb. 17, 2016)

Preliminary FY
2015

    Final 2015
Revenues $ 1,877,813 $ 1,883,533
Cost of revenues   1,318,695     1,326,848  
Gross profit 559,118 556,685
Gross margin % 29.8 % 29.6 %
 
Total operating expenses   486,973     503,839  
 
Operating income (loss) 72,145 52,846
 
Total other income (expense) (15,744 ) (15,744 )
 
Income (loss) before income taxes 56,401 37,102
Income tax benefit (provision)   (29,310 )   (22,099 )
Net income (loss) 27,091 15,003
Net income attributable to non-controlling interests   2,325     2,325  
Net income (loss) attributable to Itron, Inc. $ 24,766   $ 12,678  
 
Weighted average common shares outstanding - Diluted 38,506 38,506
 
GAAP Earnings per share - Diluted $ 0.64   $ 0.33  
 
Non-GAAP earnings per share - Diluted $ 1.01   $ 0.73  
 

Other metrics: (in millions)

Total Assets $ 1,645 $ 1,681
Total Liabilities $ 996 $ 1,059
Cash and cash equivalents $ 131 $ 131
Free Cash Flow $ 29 $ 29
Backlog $ 1,550 $ 1,575
 

 
ITRON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
           
(Unaudited, in thousands, except per share data)
Year Ended December 31,
2015     2014     2013
Revenues $ 1,883,533 $ 1,947,616 $ 1,938,025
Cost of revenues   1,326,848         1,333,566         1,323,257  
Gross profit 556,685 614,050 614,768
 
Operating expenses
Sales and marketing 161,380 182,503 182,687
Product development 162,334 175,500 175,420
General and administrative 155,715 162,466 143,932
Amortization of intangible assets 31,673 43,619 42,019
Restructuring (7,263 ) 49,482 36,347
Goodwill impairment   -         -         174,226  
Total operating expenses   503,839         613,570         754,631  
 
Operating income (loss) 52,846 480 (139,863 )
Other income (expense)
Interest income 761 494 1,152
Interest expense (12,289 ) (11,602 ) (10,686 )
Other income (expense), net   (4,216 )       (7,637 )       (4,003 )
Total other income (expense)   (15,744 )       (18,745 )       (13,537 )
 
Income (loss) before income taxes 37,102 (18,265 ) (153,400 )
Income tax benefit (provision)   (22,099 )       (4,035 )       2,466  
Net income (loss) 15,003 (22,300 ) (150,934 )
Net income attributable to non-controlling interests   2,325         1,370         2,219  
Net income (loss) attributable to Itron, Inc. $ 12,678       $ (23,670 )     $ (153,153 )
 
Earnings (loss) per common share - Basic $ 0.33       $ (0.60 )     $ (3.90 )
Earnings (loss) per common share - Diluted $ 0.33       $ (0.60 )     $ (3.90 )
 
Weighted average common shares outstanding - Basic 38,224 39,184 39,281
Weighted average common shares outstanding - Diluted 38,506 39,184 39,281
 

   
ITRON, INC.
SEGMENT INFORMATION
       
(Unaudited, in thousands)
Year Ended December 31,
2015     2014     2013
Revenues
Electricity $ 820,306 $ 771,857 $ 825,391
Gas 543,805 599,091 570,450
Water   519,422         576,668         542,184  
Total Company $ 1,883,533       $ 1,947,616       $ 1,938,025  
 
Gross profit
Electricity $ 225,446 $ 200,249 $ 219,852
Gas 185,559 211,623 207,577
Water   145,680         202,178         187,339  
Total Company $ 556,685       $ 614,050       $ 614,768  
 
Operating income (loss)
Electricity $ 31,104 $ (77,751 ) $ (237,279 )
Gas 67,471 76,101 82,176
Water 19,864 71,356 62,015
Corporate unallocated   (65,593 )       (69,226 )       (46,775 )
Total Company $ 52,846       $ 480       $ (139,863 )
 
METER AND MODULE SUMMARY
 
(Units in thousands)
Year Ended December 31,
2015     2014     2013
Meters
Standard 17,560 18,740 17,850
Advanced and smart   7,290         6,090         5,930  
Total meters   24,850         24,830         23,780  
 
Stand-alone communication modules
Advanced and smart   5,840         5,770         5,550  
 

 
ITRON, INC.
CONSOLIDATED BALANCE SHEETS
       
(Unaudited, in thousands)
December 31, 2015     December 31, 2014
ASSETS
Current assets
Cash and cash equivalents $ 131,018 $ 112,371
Accounts receivable, net 330,895 346,547
Inventories 190,465 154,221
Deferred tax assets current, net - 45,504
Other current assets   106,562         123,819  
Total current assets 758,940 782,462
 
Property, plant, and equipment, net 190,256 207,152
Deferred tax assets noncurrent, net 109,387 74,439
Other long-term assets 52,726 46,965
Intangible assets, net 101,932 139,909
Goodwill   468,122         500,820  
Total assets $ 1,681,363       $ 1,751,747  
 
LIABILITIES AND EQUITY
Current liabilities
Accounts payable $ 185,827 $ 183,831
Other current liabilities 78,630 101,315
Wages and benefits payable 76,980 94,818
Taxes payable 14,859 21,951
Current portion of debt 11,250 30,000
Current portion of warranty 36,927 21,145
Unearned revenue   73,301         67,009  
Total current liabilities 477,774 520,069
 
Long-term debt 359,962 293,969
Long-term warranty 17,585 15,403
Pension plan benefit liability 85,971 101,862
Deferred tax liabilities noncurrent, net 1,723 3,808
Other long-term obligations   115,645         118,094  
Total liabilities 1,058,660 1,053,205
 
Equity
Preferred stock - -
Common stock 1,246,671 1,270,045
Accumulated other comprehensive loss, net (200,607 ) (135,060 )
Accumulated deficit   (441,306 )       (453,984 )
Total Itron, Inc. shareholders' equity 604,758 681,001
Non-controlling interests   17,945         17,541  
Total equity   622,703         698,542  
Total liabilities and equity $ 1,681,363       $ 1,751,747  
 

 
ITRON, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
           
(Unaudited, in thousands)
Year Ended December 31,
2015     2014     2013
Operating activities
Net income (loss) $ 15,003 $ (22,300 ) $ (150,934 )
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 75,993 98,139 99,246
Stock-based compensation 14,089 17,860 18,850
Amortization of prepaid debt fees 2,128 1,612 1,657
Deferred taxes, net 1,488 (34,757 ) (25,308 )
Goodwill impairment - - 174,226
Restructuring, non-cash 976 5,172 1,259
Other adjustments, net 2,003 914 551
Changes in operating assets and liabilities:
Accounts receivable (9,009 ) (15,119 ) 11,732
Inventories (52,737 ) 7,208 (12,391 )
Other current assets 12,512 (10,947 ) (9,950 )
Other long-term assets (3,721 ) (12,540 ) (2,298 )
Accounts payable, other current liabilities, and taxes payable (7,060 ) 56,158 (4,466 )
Wages and benefits payable (10,866 ) 7,502 (1,822 )
Unearned revenue 11,943 30,584 8,744
Warranty 20,161 (7,297 ) (6,546 )
Other operating, net   447         10,784         2,871  
Net cash provided by operating activities 73,350 132,973 105,421
 
Investing activities
Acquisitions of property, plant, and equipment (43,918 ) (44,495 ) (60,020 )
Business acquisitions, net of cash equivalents acquired (5,754 ) - (860 )
Other investing, net   721         2,999         4,109  
Net cash used in investing activities (48,951 ) (41,496 ) (56,771 )
 
Financing activities
Proceeds from borrowings 113,467 47,657 35,000
Payments on debt (62,998 ) (102,438 ) (73,750 )
Issuance of common stock 2,663 3,647 5,299
Repurchase of common stock (38,283 ) (39,665 ) (26,977 )
Other financing, net   (7,109 )       (1,078 )       2,990  
Net cash provided by (used in) financing activities 7,740 (91,877 ) (57,438 )
 
Effect of foreign exchange rate changes on cash and cash equivalents   (13,492 )       (12,034 )       (2,818 )
Increase (decrease) in cash and cash equivalents 18,647 (12,434 ) (11,606 )
Cash and cash equivalents at beginning of period   112,371         124,805         136,411  
Cash and cash equivalents at end of period $ 131,018       $ 112,371       $ 124,805  
 

Itron, Inc.

About Non-GAAP Financial Measures

The accompanying press release contains non-GAAP financial measures. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted EPS, adjusted EBITDA and free cash flow. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures please see the table captioned “Reconciliations of Non-GAAP Financial Measures to Most Directly Comparable GAAP Financial Measures.”

We use these non-GAAP financial measures for financial and operational decision making and as a means for determining executive compensation. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and ability to service debt by excluding certain expenses that may not be indicative of our recurring core operating results. These non-GAAP financial measures facilitate management’s internal comparisons to our historical performance as well as comparisons to our competitors’ operating results. Our executive compensation plans exclude non-cash charges related to amortization of intangibles acquired through a business acquisition and non-recurring discrete cash and non-cash charges that are infrequent in nature such as purchase accounting adjustments, restructuring charges or goodwill impairment charges. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. We believe these non-GAAP financial measures are useful to investors because they provide greater transparency with respect to key metrics used by management in its financial and operational decision making and because they are used by our institutional investors and the analyst community to analyze the health of our business.

Non-GAAP operating expense and non-GAAP operating income – We define non-GAAP operating expense as operating expense excluding certain expenses related to the amortization of intangible assets acquired through a business acquisition, restructuring, acquisitions and goodwill impairment. We define non-GAAP operating income as operating income excluding the expenses related to the amortization of intangible assets acquired through a business acquisition, restructuring, acquisitions and goodwill impairment. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the effect of expenses that are related to previous acquisitions and restructurings. By excluding these expenses, we believe that it is easier for management and investors to compare our financial results over multiple periods and analyze trends in our operations. For example, in certain periods expenses related to amortization of intangible assets may decrease, which would improve GAAP operating margins, yet the improvement in GAAP operating margins due to this lower expense is not necessarily reflective of an improvement in our core business. There are some limitations related to the use of non-GAAP operating expense and non-GAAP operating income versus operating expense and operating income calculated in accordance with GAAP. Non-GAAP operating expense and non-GAAP operating income exclude some costs that are recurring. Additionally, the expenses that we exclude in our calculation of non-GAAP operating expense and non-GAAP operating income may differ from the expenses that our peer companies exclude when they report the results of their operations. We compensate for these limitations by providing specific information about the GAAP amounts we have excluded from our non-GAAP operating expense and non-GAAP operating income and evaluating non-GAAP operating expense and non-GAAP operating income together with GAAP operating expense and GAAP operating income.

Non-GAAP net income and non-GAAP diluted EPS – We define non-GAAP net income as net income excluding the expenses associated with amortization of intangible assets acquired through a business acquisition, restructuring, acquisitions, goodwill impairment and amortization of debt placement fees. We define non-GAAP diluted EPS as non-GAAP net income divided by the weighted average shares, on a diluted basis, outstanding during each period. We consider these financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income. The same limitations described above regarding our use of non-GAAP operating income apply to our use of non-GAAP net income and non-GAAP diluted EPS. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP measures and evaluating non-GAAP net income and non-GAAP diluted EPS together with GAAP net income and GAAP diluted EPS.

Adjusted EBITDA – We define adjusted EBITDA as net income (a) minus interest income, (b) plus interest expense, depreciation and amortization of business acquisition related intangible asset expenses, restructuring expense, acquisition related expense, goodwill impairment and (c) exclude the tax expense or benefit. We believe that providing this financial measure is important for management and investors to understand our ability to service our debt as it is a measure of the cash generated by our core business. Management uses adjusted EBITDA as a performance measure for executive compensation. A limitation to using adjusted EBITDA is that it does not represent the total increase or decrease in the cash balance for the period and the measure includes some non-cash items and excludes other non-cash items. Additionally, the items that we exclude in our calculation of adjusted EBITDA may differ from the items that our peer companies exclude when they report their results. We compensate for these limitations by providing a reconciliation of this measure to GAAP net income.

Free cash flow – We define free cash flow as net cash provided by operating activities less cash used for acquisitions of property, plant and equipment. We believe free cash flow provides investors with a relevant measure of liquidity and a useful basis for assessing our ability to fund our operations and repay our debt. The same limitations described above regarding our use of adjusted EBITDA apply to our use of free cash flow. We compensate for these limitations by providing specific information regarding the GAAP amounts and reconciling to free cash flow.

The accompanying tables have more detail on the GAAP financial measures that are most directly comparable to the non-GAAP financial measures and the related reconciliations between these financial measures.

 
ITRON, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
           
(Unaudited; in thousands, except per share data)
 
TOTAL COMPANY RECONCILIATIONS     Year Ended December 31,
2015     2014     2013
NON-GAAP NET INCOME & DILUTED EPS
GAAP net income (loss) $ 12,678 $ (23,670 ) $ (153,153 )
Amortization of intangible assets 31,673 43,619 42,019
Amortization of debt placement fees 2,021 1,512 1,556
Restructuring (7,263 ) 49,482 36,347
Acquisition-related expense (recovery) (5,538 ) 15,538 2,290
Goodwill impairment - - 174,226
Income tax effect of non-GAAP adjustments   (5,590 )       (25,860 )       (32,970 )
Non-GAAP net income $ 27,981       $ 60,621       $ 70,315  
             
Non-GAAP diluted EPS $ 0.73       $ 1.54       $ 1.78  
 
Weighted average common shares outstanding - Diluted   38,506         39,461         39,602  
 
ADJUSTED EBITDA
GAAP net income $ 12,678 $ (23,670 ) $ (153,153 )
Interest income (761 ) (494 ) (1,152 )
Interest expense 12,289 11,602 10,686
Income tax provision 22,099 4,035 (2,466 )
Depreciation and amortization 75,993 98,139 99,246
Restructuring (7,263 ) 49,482 36,347
Acquisition related expenses (5,538 ) 15,538 2,290
Goodwill impairment   -         -         174,226  
Adjusted EBITDA $ 109,497       $ 154,632       $ 166,024  
 
FREE CASH FLOW
Net cash provided by operating activities $ 73,350 $ 132,973 $ 105,421
Acquisitions of property, plant, and equipment   (43,918 )       (44,495 )       (60,020 )
Free Cash Flow $ 29,432       $ 88,478       $ 45,401  
 
NON-GAAP OPERATING INCOME
GAAP operating income (loss) $ 52,846 $ 480 $ (139,863 )
Amortization of intangible assets 31,673 43,619 42,019
Restructuring (7,263 ) 49,482 36,347
Acquisition-related expense (recovery) (5,538 ) 15,538 2,290
Goodwill impairment   -         -         174,226  
Non-GAAP operating income $ 71,718       $ 109,119       $ 115,019  
 
NON-GAAP OPERATING EXPENSES
GAAP operating expenses $ 503,839 $ 613,570 $ 754,631
Amortization of intangible assets (31,673 ) (43,619 ) (42,019 )
Restructuring 7,263 (49,482 ) (36,347 )
Acquisition-related recovery (expense) 5,538 (15,538 ) (2,290 )
Goodwill impairment   -         -         (174,226 )
Non-GAAP operating expenses $ 484,967       $ 504,931       $ 499,749  
 

 
ITRON, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
           
(Unaudited; in thousands)
 
SEGMENT RECONCILIATIONS     Year Ended December 31,
2015     2014     2013
NON-GAAP OPERATING INCOME - ELECTRICITY
Electricity - GAAP operating income (loss) $ 31,104 $ (77,751 ) $ (237,279 )
Amortization of intangible assets 17,663 24,452 18,835
Restructuring (7,253 ) 20,430 25,172
Acquisition-related expense (recovery) (5,655 ) 15,491 2,287
Goodwill impairment   -         -         174,226  
Electricity - Non-GAAP operating income (loss) $ 35,859       $ (17,378 )     $ (16,759 )
 
NON-GAAP OPERATING INCOME - GAS
Gas - GAAP operating income $ 67,471 $ 76,101 $ 82,176
Amortization of intangible assets 7,787 10,471 12,264
Restructuring   (287 )       9,149         4,299  
Gas - Non-GAAP operating income $ 74,971       $ 95,721       $ 98,739  
 
NON-GAAP OPERATING INCOME - WATER
Water - GAAP operating income $ 19,864 $ 71,356 $ 62,015
Amortization of intangible assets 6,223 8,696 10,920
Restructuring 778 2,335 3,075
Acquisition-related expense   104         -         -  
Water - Non-GAAP operating income $ 26,969       $ 82,387       $ 76,010  
 
NON-GAAP OPERATING INCOME - CORPORATE UNALLOCATED
Corporate unallocated - GAAP operating loss $ (65,593 ) $ (69,226 ) $ (46,775 )
Restructuring (501 ) 17,568 3,801
Acquisition-related expense   13         47         3  
Corporate unallocated - Non-GAAP operating loss $ (66,081 )     $ (51,611 )     $ (42,971 )
 

 
ITRON, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
   
(Unaudited; in thousands)
 
(announced Feb. 17, 2016)
TOTAL COMPANY RECONCILIATIONS     Preliminary FY 2015
NON-GAAP NET INCOME & DILUTED EPS
GAAP net income (loss) $ 24,766
Amortization of intangible assets 31,673
Amortization of debt placement fees 2,021
Restructuring (8,726 )
Acquisition-related expense (recovery) (5,538 )
Goodwill impairment -
Income tax effect of non-GAAP adjustments(1)   (5,234 )
Non-GAAP net income $ 38,962  
 
Non-GAAP diluted EPS $ 1.01  
 
Weighted average common shares outstanding - Diluted   38,506  
 
FREE CASH FLOW
Net cash provided by operating activities $ 73,350
Acquisitions of property, plant, and equipment   (43,918 )
Free Cash Flow $ 29,432  

Contacts

Itron, Inc.
Barbara Doyle, 509-891-3443
Vice President, Investor Relations
or
Marni Pilcher, 509-891-3847
Director, Investor Relations

Release Summary

Itron Files 2015 Annual Report on Form 10-K

Contacts

Itron, Inc.
Barbara Doyle, 509-891-3443
Vice President, Investor Relations
or
Marni Pilcher, 509-891-3847
Director, Investor Relations