Press Release
-Continued Strength in Roadway Sensors and Momentum in Precision Agriculture Sector-
Fiscal Q2 2016 Highlights
-
Record high quarterly revenues of
$20.6 million -
Roadway Sensors revenues up 13% YOY to
$11.6 million -
Transportation Systems revenues up 11% YOY to
$8.1 million -
Total backlog increased 13% YOY to
$46.2 million - First ClearAg subscription revenue; strengthening ClearAg sales pipeline; and initial field validation of ClearAg content accuracy
Management Commentary
“I am delighted by the significant progress
“I am confident that
GAAP Fiscal Q2 2016 Financial Results
Total revenues in the second quarter of 2016 increased to
Gross margin in the second quarter decreased 100 basis points to 38.3% compared to 39.3% in the same quarter a year ago. The decrease in gross margin was primarily as a result of the sales mix of products within the Roadway Sensors segment, as well as temporary purchase price variances, and increased sales of OEM products, which generally yield lower gross margins than Roadway Sensors core products.
Operating expenses in the second quarter increased to
Operating loss in the second quarter was
Total backlog at the end of the second quarter increased 13% to
Non-GAAP Fiscal Q2 2016 Financial Results
In addition to results presented in accordance with generally accepted
accounting principles in
Non-GAAP operating expenses in the second quarter increased to
Non-GAAP operating loss in the second quarter was
Conference Call
Iteris’ CEO
Date:
Time:
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dial-in number: 1-719-325-2458
Conference ID: 133074
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About
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This release may contain forward-looking statements, which speak only as of the date hereof and are based upon our current expectations and the information available to us at this time. Words such as "believes," "anticipates," "expects," "intends," "plans," "seeks," "estimates," "may," "will," "can," and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the Company’s anticipated growth opportunities, the impact of the new management team, the impact and success of new product introductions and acquisitions, our future performance, growth, operating results, financial condition and prospects. Such statements are subject to certain risks, uncertainties, and assumptions that are difficult to predict and actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.
Important factors that may cause such a difference include, but are not
limited to, federal, state and local government budgetary issues,
constraints and delays; the timing and amount of government funds
allocated to overall transportation infrastructure projects and the
transportation industry; the potential impact of the recently extended
Federal Highway Bill on the Intelligent Transportation industry and the
expected benefits to
ITERIS, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) |
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September 30, | March 31, | ||||||||||
2015 | 2015 | ||||||||||
ASSETS: | |||||||||||
Cash | $ | 19,137 | $ | 21,961 | |||||||
Trade accounts receivable, net | 12,926 | 11,206 | |||||||||
Costs and estimated earnings in excess of billings | |||||||||||
on uncompleted contracts | 3,929 | 4,266 | |||||||||
Inventories | 3,158 | 3,062 | |||||||||
Prepaid expenses and other current assets | 1,665 | 1,338 | |||||||||
Current portion of deferred income taxes | 2,680 | 2,680 | |||||||||
Total current assets | 43,495 | 44,513 | |||||||||
Property and equipment, net | 2,105 | 1,990 | |||||||||
Long-term portion of deferred income taxes | 5,874 | 5,610 | |||||||||
Goodwill | 17,318 | 17,318 | |||||||||
Intangible and other assets, net | 923 | 1,201 | |||||||||
Total assets | $ | 69,715 | $ | 70,632 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||||||
Accounts payable and other current liabilities | $ | 12,234 | $ | 12,106 | |||||||
Billings in excess of costs and estimated earnings on uncompleted contracts |
1,890 |
1,549 | |||||||||
Total current liabilities | 14,124 | 13,655 | |||||||||
Long-term liabilities | 977 | 1,009 | |||||||||
Total liabilities | 15,101 | 14,664 | |||||||||
Stockholders’ equity | 54,614 | 55,968 | |||||||||
Total liabilities and stockholders’ equity | $ | 69,715 | $ | 70,632 | |||||||
ITERIS, INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) |
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Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||||
Total revenues | $ | 20,573 | $ | 18,550 | $ | 38,938 | $ | 36,666 | |||||||||||||||||||||||
Cost of revenues | 12,690 | 11,251 | 23,417 | 22,560 | |||||||||||||||||||||||||||
Gross profit | 7,883 | 7,299 | 15,521 | 14,106 | |||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||
Selling, general and administrative | 6,286 | 6,208 | 12,776 | 11,908 | |||||||||||||||||||||||||||
Research and development | 2,074 | 1,287 | 3,575 | 2,366 | |||||||||||||||||||||||||||
Amortization of intangible assets | 92 | 120 | 184 | 239 | |||||||||||||||||||||||||||
Change in fair value of contingent acquisition consideration | - | 4 | - | 8 | |||||||||||||||||||||||||||
Total operating expenses | 8,452 | 7,619 | 16,535 | 14,521 | |||||||||||||||||||||||||||
Operating loss | (569 | ) | (320 | ) | (1,014 | ) | (415 | ) | |||||||||||||||||||||||
Non-operating income (expense): | |||||||||||||||||||||||||||||||
Other income (expense), net | 4 | - | 4 | (3 | ) | ||||||||||||||||||||||||||
Interest income (expense), net | 4 | (5 | ) | 7 | (4 | ) | |||||||||||||||||||||||||
(Loss) from continuing operations before income taxes | (561 | ) | (325 | ) | (1,003 | ) | (422 | ) | |||||||||||||||||||||||
Benefit for income taxes | 112 | 92 | 310 | 121 | |||||||||||||||||||||||||||
Loss from continuing operations | (449 | ) | (233 | ) | (693 | ) | (301 | ) | |||||||||||||||||||||||
Gain on sale of discontinued operation, net of tax | 54 | 46 | 106 | 95 | |||||||||||||||||||||||||||
Net loss | $ | (395 | ) | $ | (187 | ) | $ | (587 | ) | $ | (206 | ) | |||||||||||||||||||
Loss per share from continuing operations – basic and diluted |
$ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.01 | ) | |||||||||||||||||||
Gain per share from sale of discontinued operation – basic and diluted |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | |||||||||||||||||||||||
Net loss per share - basic and diluted | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.01 | ) | |||||||||||||||||||
Shares used in basic per share calculations | 31,935 | 32,585 | 32,069 | 32,621 | |||||||||||||||||||||||||||
Shares used in diluted per share calculations | 31,935 | 32,585 | 32,069 | 32,621 | |||||||||||||||||||||||||||
ITERIS, INC. UNAUDITED SEGMENT REPORTING DETAILS (in thousands) |
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Roadway |
Transportation |
Performance |
Iteris, Inc. | |||||||||||||||||||
Three Months Ended September 30, 2015 | ||||||||||||||||||||||
Total revenues | $ | 11,559 | $ | 8,110 | $ | 904 | $ | 20,573 | ||||||||||||||
Segment operating income (loss) | $ | 2,288 | $ | 1,159 | $ | (2,357 | ) | $ | 1,090 | |||||||||||||
Corporate and other income (expense), net | (1,567 | ) | ||||||||||||||||||||
Amortization of intangible assets | (92 | ) | ||||||||||||||||||||
Change in fair value of contingent acquisition consideration |
- |
|||||||||||||||||||||
Operating loss | $ | (569 | ) | |||||||||||||||||||
Roadway |
Transportation |
Performance |
Iteris, Inc. |
|||||||||||||||||||
Three Months Ended September 30, 2014 |
||||||||||||||||||||||
Total revenues | $ | 10,196 | $ | 7,284 | $ | 1,070 | $ | 18,550 | ||||||||||||||
Segment operating income (loss) | $ | 2,123 | $ | 965 | $ | (1,195 | ) | $ | 1,893 | |||||||||||||
Corporate and other income (expense), net | (2,089 | ) | ||||||||||||||||||||
Amortization of intangible assets | (120 | ) | ||||||||||||||||||||
Change in fair value of contingent acquisition consideration | (4 | ) | ||||||||||||||||||||
Operating loss | $ | (320 | ) | |||||||||||||||||||
Roadway |
Transportation |
Performance |
Iteris, Inc. | |||||||||||||||||||
Six Months Ended September 30, 2015 |
||||||||||||||||||||||
Total revenues | $ | 21,464 | $ | 15,488 | $ | 1,986 | $ | 38,938 | ||||||||||||||
Segment operating income (loss) | $ | 4,890 | $ | 2,085 | $ | (4,023 | ) | $ | 2,952 | |||||||||||||
Corporate and other income (expense), net | (3,782 | ) | ||||||||||||||||||||
Amortization of intangible assets | (184 | ) | ||||||||||||||||||||
Change in fair value of contingent acquisition consideration |
- |
|||||||||||||||||||||
Operating loss | $ | (1,014 | ) | |||||||||||||||||||
Roadway |
Transportation |
Performance |
Iteris, Inc. | |||||||||||||||||||
Six Months Ended September 30, 2014 | ||||||||||||||||||||||
Total revenues | $ | 19,216 | $ | 14,949 | $ | 2,501 | $ | 36,666 | ||||||||||||||
Segment operating income (loss) | $ | 3,920 | $ | 1,819 | $ | (1,889 | ) | $ | 3,850 | |||||||||||||
Corporate and other income (expense), net | (4,018 | ) | ||||||||||||||||||||
Amortization of intangible assets | (239 | ) | ||||||||||||||||||||
Change in fair value of contingent acquisition consideration | (8 | ) | ||||||||||||||||||||
Operating loss | $ | (415 | ) | |||||||||||||||||||
Non-GAAP Financial Measures and
Reconciliation
In addition to results presented in accordance with GAAP, the Company has included the following non-GAAP financial measures in this release: non-GAAP operating expenses, non-GAAP operating (loss) income, non-GAAP net income and non-GAAP basic and diluted earnings per share from continuing operations. These non-GAAP financial measures exclude the following items: (a) audit fee overruns; (b) financial consulting services; (c) severance and transition related costs paid to the Company’s former Chief Executive Officer; and (d) the estimated income tax effect of the foregoing non-GAAP adjustments.
Management uses certain non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies' financial information and should be considered as a supplement to, not a substitute for, or superior to, the corresponding financial measures calculated in accordance with GAAP.
Details of the items excluded from GAAP financial results in calculating non-GAAP financial measures and explanatory footnotes are as follows:
a) Audit fee overruns were calculated as the amount of audit fees that
exceeded the expected fees per the Company’s audit engagement letters.
For the audit of Fiscal 2015, approximately
b) Management engaged financial consulting service firms to assist with the completion of its Fiscal 2015 and Fiscal 2014 audits. The fees incurred for assistance with the Fiscal 2015 audit were incurred during the first quarter of Fiscal 2016. The fees incurred for assistance with the Fiscal 2014 audit were incurred during the first and second fiscal quarters of 2015.
c) On
d) The amount represents the estimated income tax effect of the non-GAAP adjustments. The tax effect of non-GAAP adjustments was calculated by applying an estimated tax rate of 38% to each specific non-GAAP item.
Iteris, Inc. |
||||||||||||
Schedule Reconciling GAAP Net (Loss) to Non-GAAP Net (Loss) Income |
||||||||||||
($ in thousands, except per share amounts) |
||||||||||||
(unaudited) |
||||||||||||
For the Three Months Ended |
||||||||||||
September 30, | ||||||||||||
2015 | 2014 | |||||||||||
GAAP net loss | $ | (395 | ) | $ | (187 | ) | ||||||
GAAP loss per share from continuing operations - basic and diluted | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
The non-GAAP amounts have been adjusted to exclude the following items: | ||||||||||||
Excluded from operating expenses | ||||||||||||
Audit Fee overrun (a) | $ | - | $ | (596 | ) | |||||||
Financial consulting services (b) | - | (654 | ) | |||||||||
Executive management severance costs (c) | (63 | ) | - | |||||||||
Total excluded from operating expenses | $ | (63 | ) | $ | (1,250 | ) | ||||||
Total excluded operating loss | $ | (63 | ) | $ | (1,250 | ) | ||||||
Income tax effect on non-GAAP adjustments (d) | 24 | 475 | ||||||||||
Total excluded from operating expenses after taxes | $ | (39 | ) | $ | (775 | ) | ||||||
Non-GAAP net (loss) income | $ | (356 | ) | $ | 588 | |||||||
Non-GAAP (loss) income per share from continuing operations - basic and diluted | $ | (0.01 | ) | $ | 0.02 | |||||||
(a) - (d) See corresponding footnotes above. | ||||||||||||
Iteris, Inc. Schedule Reconciling GAAP Net (Loss) to Non-GAAP Net (Loss) Income ($ in thousands, except per share amounts) (unaudited) |
||||||||||||
For the Six Months Ended |
||||||||||||
2015 |
2014 |
|||||||||||
GAAP net loss | $ | (587 | ) | $ | (206 | ) | ||||||
GAAP loss per share from continuing operations - basic and diluted | $ | (0.02 | ) | $ | (0.01 | ) | ||||||
The non-GAAP amounts have been adjusted to exclude the following items: |
||||||||||||
Excluded from operating expenses | ||||||||||||
Audit Fee overrun (a) | $ | (150 | ) | $ | (941 | ) | ||||||
Financial consulting services (b) | (161 | ) | (685 | ) | ||||||||
Executive management severance costs (c) | (149 | ) | - | |||||||||
Total excluded from operating expenses | $ | (460 | ) | $ | (1,626 | ) | ||||||
Total excluded operating loss | $ | (460 | ) | $ | (1,626 | ) | ||||||
Income tax effect on non-GAAP adjustments (d) | 175 | 618 | ||||||||||
Total excluded from operating expenses after taxes | $ | (285 | ) | $ | (1,008 | ) | ||||||
Non-GAAP net (loss) income | $ | (302 | ) | $ | 802 | |||||||
Non-GAAP (loss) income per share from continuing operations - basic and diluted | $ | (0.01 | ) | $ | 0.02 | |||||||
(a) - (d) See corresponding footnotes above. | ||||||||||||
Iteris, Inc. |
|||||||||||
For the Three Months Ended | |||||||||||
September 30, | September 30, | ||||||||||
2015 | 2014 | ||||||||||
GAAP operating expenses | $ | 8,452 | $ | 7,619 | |||||||
Audit Fee overrun (a) | - | (596) | |||||||||
Financial consulting services (b) | - | (654) | |||||||||
Executive management severance costs (c) | (63) | - | |||||||||
Non-GAAP operating expenses | $ | 8,389 | $ | 6,369 | |||||||
GAAP operating loss | $ | (569) | $ | (320) | |||||||
Audit Fee overrun (a) | - | (596) | |||||||||
Financial consulting services (b) | - | (654) | |||||||||
Executive management severance costs (c) | (63) | - | |||||||||
Non-GAAP operating (loss) income | $ | (506) | $ | 930 | |||||||
|
For the Six Months Ended |
||||||||||
September 30, | September 30, | ||||||||||
GAAP operating expenses |
2015 |
|
2014 |
||||||||
$ | 16,535 | $ | 14,521 | ||||||||
Audit Fee overrun (a) | (150) | (941) | |||||||||
Financial consulting services (b) | (161) | (685) | |||||||||
Executive management severance costs (c) | (149) | - | |||||||||
Non-GAAP operating expenses | $ | 16,075 | $ | 12,895 | |||||||
GAAP operating loss | $ | (1,014) | $ | (415) | |||||||
Audit Fee overrun (a) | (150) | (941) | |||||||||
Financial consulting services (c) | (161) | (685) | |||||||||
Executive management severance costs (d) | (149) | - | |||||||||
Non-GAAP operating (loss) income | $ | (554) | $ | 1,211 | |||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20151110005787/en/
Source:
Liolios Group, Inc.
Scott Liolios or Cody Slach
1-949-574-3860
Investor
Relations
ITI@liolios.com