Press Release
- Transportation Segments Post Strong Quarter and Record Backlog, Leading Crop Protection Company Selects ClearAg -
Fiscal Q3 2016 Highlights
-
Record high third fiscal quarter revenues of
$19.0 million -
Transportation Systems gains significant momentum by expanding backlog
$24 million , up approximately 62% from one year ago -
Roadway Sensors revenues up 21% YOY to
$9.8 million -
Completed successful first phase of ClearAg v 2.0 alpha test with
farms across 12 states and
Canada - Allied Provider coverage in fourteen countries with 65 million wholesale acres under management
- Leading crop protection company selects ClearAg for global deployment
Management Commentary
“We continue to see strong acceleration in our transportation segments,
while building a position of global leadership in the agriculture
analytics market,” said
“We are thrilled that another leading crop protection company selected ClearAg, our ag analytics platform, as a key element of its strategy. With this new agreement, we are the ag analytics provider of choice to four of the world’s top ten crop protection companies. In addition, we continue to build strategic relationships with Allied Providers worldwide. These relationships now give us access to 65 million wholesale acres under management in 14 different countries.”
GAAP Fiscal Q3 2016 Financial Results
Total revenues in the third quarter of 2016 increased 8% to
Gross margin in the third quarter decreased 120 basis points to 37.9% compared to 39.1% in the same quarter a year ago. The decrease in gross margin was primarily a result of sales mix within the Roadway Sensors segment, where we experienced an increase in the sales of OEM products, which generally yield lower gross margins than Roadway Sensors core products.
Operating expenses in the third quarter increased to
Operating loss in the third quarter was
Total backlog at the end of the third quarter increased 55% to
Non-GAAP Fiscal Q3 2016 Financial Results
In addition to results presented in accordance with generally accepted
accounting principles in
Non-GAAP operating expenses in the third quarter increased to
Non-GAAP operating loss in the third quarter was
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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, and our future performance, 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 impact of the FAST Act on the intelligent
transportation systems industry and fundable projects for
ITERIS, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) |
|||||
December 31, | March 31, | ||||
2015 | 2015 | ||||
ASSETS: | |||||
Cash | $ | 18,381 | $ | 21,961 | |
Trade accounts receivable, net | 11,851 | 11,206 | |||
Costs and estimated earnings in excess of billings | |||||
on uncompleted contracts | 4,111 | 4,266 | |||
Inventories | 3,044 | 3,062 | |||
Prepaid expenses and other current assets | 1,727 | 1,338 | |||
Current portion of deferred income taxes | 116 | 2,680 | |||
Total current assets | 39,230 | 44,513 | |||
Property and equipment, net | 2,124 | 1,990 | |||
Long-term portion of deferred income taxes | - | 5,610 | |||
Goodwill | 17,318 | 17,318 | |||
Intangible and other assets, net | 788 | 1,201 | |||
Total assets | $ | 59,460 | $ | 70,632 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||
Accounts payable and other current liabilities | $ | 10,723 | $ | 12,106 | |
Billings in excess of costs and estimated earnings | |||||
on uncompleted contracts | 2,471 | 1,549 | |||
Total current liabilities | 13,194 | 13,655 | |||
Long-term liabilities | 1,757 | 1,009 | |||
Total liabilities | 14,951 | 14,664 | |||
Stockholders’ equity | 44,509 | 55,968 | |||
Total liabilities and stockholders’ equity | $ | 59,460 | $ | 70,632 | |
ITERIS, INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) |
||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||
Total revenues | $ | 19,014 | $ | 17,540 | $ | 57,952 | $ | 54,206 | ||||||||||||
Cost of revenues | 11,803 | 10,678 | 35,220 | 33,238 | ||||||||||||||||
Gross profit | 7,211 | 6,862 | 22,732 | 20,968 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling, general and administrative | 6,400 | 5,734 | 19,176 | 17,642 | ||||||||||||||||
Research and development | 1,853 | 1,618 | 5,428 | 3,984 | ||||||||||||||||
Amortization of intangible assets | 92 | 102 | 276 | 341 | ||||||||||||||||
Change in fair value of contingent | - | 1 | - | 9 | ||||||||||||||||
acquisition consideration | ||||||||||||||||||||
Total operating expenses | 8,345 | 7,455 | 24,880 | 21,976 | ||||||||||||||||
Operating loss | (1,134 | ) | (593 | ) | (2,148 | ) | (1,008 | ) | ||||||||||||
Non-operating income (expense): | ||||||||||||||||||||
Other (expense) income, net | (3 | ) | (8 | ) | 1 | (11 | ) | |||||||||||||
Interest income, net | 3 | 6 | 10 | 2 | ||||||||||||||||
Loss from continuing operations before income taxes | (1,134 | ) | (595 | ) | (2,137 | ) | (1,017 | ) | ||||||||||||
(Expense) benefit for income taxes | (9,365 | ) | 441 | (9,055 | ) | 562 | ||||||||||||||
Loss from continuing operations | (10,499 | ) | (154 | ) | (11,192 | ) | (455 | ) | ||||||||||||
Gain on sale of discontinued operation, net of tax | 57 | 56 | 163 | 151 | ||||||||||||||||
Net loss | $ | (10,442 | ) | $ | (98 | ) | $ | (11,029 | ) | $ | (304 | ) | ||||||||
Loss per share from continuing operations – | (0.33 | ) | (0.00 | ) | (0.35 | ) | (0.01 | ) | ||||||||||||
basic and diluted | $ | $ | $ | $ | ||||||||||||||||
Gain per share from sale of discontinued operation – | 0.00 | 0.00 | 0.01 | 0.00 | ||||||||||||||||
basic and diluted | $ | $ | $ | $ | ||||||||||||||||
Net loss per share - basic and diluted | $ | (0.33 | ) | $ | (0.00 | ) | $ | (0.34 | ) | $ | (0.01 | ) | ||||||||
Shares used in basic per share calculations | 32,013 | 32,568 | 32,051 | 32,603 | ||||||||||||||||
Shares used in diluted per share calculations | 32,013 | 32,568 | 32,051 | 32,603 | ||||||||||||||||
ITERIS, INC. UNAUDITED SEGMENT REPORTING DETAILS (in thousands) |
||||||||||||||||
Roadway |
Transportation |
Performance |
Iteris, Inc. | |||||||||||||
Three Months Ended December 31, 2015 | ||||||||||||||||
Total revenues | $ | 9,771 | $ | 7,796 | $ | 1,447 | $ | 19,014 | ||||||||
Segment operating income (loss) | $ | 1,672 | $ | 1,017 | $ | (1,913 | ) | $ | 776 | |||||||
Corporate and other income (expense), net | (1,818 | ) | ||||||||||||||
Amortization of intangible assets | (92 | ) | ||||||||||||||
Change in fair value of contingent acquisition consideration |
- |
|||||||||||||||
Operating loss | $ | (1,134 | ) | |||||||||||||
Roadway |
Transportation |
Performance |
Iteris, Inc. | |||||||||||||
Three Months Ended December 31, 2014 | ||||||||||||||||
Total revenues | $ | 8,112 | $ | 7,796 | $ | 1,632 | $ | 17,540 | ||||||||
Segment operating income (loss) | $ | 1,053 | $ | 1,381 | $ | (1,455 | ) | $ | 979 | |||||||
Corporate and other income (expense), net | (1,469 | ) | ||||||||||||||
Amortization of intangible assets | (102 | ) | ||||||||||||||
Change in fair value of contingent acquisition consideration | (1 | ) | ||||||||||||||
Operating loss | $ | (593 | ) | |||||||||||||
Roadway |
Transportation |
Performance |
Iteris, Inc. | |||||||||||||
Nine Months Ended December 31, 2015 | ||||||||||||||||
Total revenues | $ | 31,235 | $ | 23,283 | $ | 3,434 | $ | 57,952 | ||||||||
Segment operating income (loss) | $ | 6,562 | $ | 3,101 | $ | (5,936 | ) | $ | 3,727 | |||||||
Corporate and other income (expense), net | (5,599 | ) | ||||||||||||||
Amortization of intangible assets | (276 | ) | ||||||||||||||
Change in fair value of contingent acquisition consideration |
- |
|||||||||||||||
Operating loss | $ | (2,148 | ) | |||||||||||||
Roadway |
Transportation |
Performance |
Iteris, Inc. | |||||||||||||
Nine Months Ended December 31, 2014 | ||||||||||||||||
Total revenues | $ | 27,328 | $ | 22,745 | $ | 4,133 | $ | 54,206 | ||||||||
Segment operating income (loss) | $ | 4,972 | $ | 3,202 | $ | (3,344 | ) | $ | 4,830 | |||||||
Corporate and other income (expense), net | (5,488 | ) | ||||||||||||||
Amortization of intangible assets | (341 | ) | ||||||||||||||
Change in fair value of contingent acquisition consideration | (9 | ) | ||||||||||||||
Operating loss | $ | (1,008 | ) | |||||||||||||
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) quarterly review fee increases; (c) financial consulting services; (d) severance and transition related costs paid to the Company’s former Chief Executive Officer; (e) executive management recruiting costs; (f) the estimated income tax effect of the foregoing non-GAAP adjustments; and (g) the recording of a valuation allowance on the company’s deferred tax assets.
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 $0 and
b) Fiscal 2015 quarterly review fee increases were incurred during third and fourth quarters of Fiscal 2015 and related to the additional testing procedures required in connection with the Fiscal 2015 quarterly reviews. The quarterly review fee increases were calculated as the amount of review fees that exceeded the quarterly review fees in Fiscal years 2013 and 2014.
c) Management engaged financial consulting service firms to assist with the completion of its Fiscal 2015 and Fiscal 2014 audits. The fees incurred for assistance with the Fiscal 2015 audit were incurred during the first quarter of Fiscal 2016. The fees incurred for assistance with the Fiscal 2014 audit were incurred during the first, second and third fiscal quarters of 2015.
d) On
e) The Company incurred third party recruiting service fees in the third and fourth fiscal quarters of 2015 in connection with the search for a permanent CFO and CEO.
f) The amount represents the estimated income tax effect of the non-GAAP adjustments. The tax effect of non-GAAP adjustments was calculated by applying an estimated tax rate of 38% to each specific non-GAAP item.
g) The Company recorded an approximate
Iteris, Inc. | ||||||||
Schedule Reconciling GAAP Net (Loss) to Non-GAAP Net (Loss) Income | ||||||||
($ in thousands, except per share amounts) | ||||||||
(unaudited) | ||||||||
For the Three Months Ended | ||||||||
December 31, | ||||||||
2015 | 2014 | |||||||
GAAP net loss | $ | (10,442 | ) | $ | (98 | ) | ||
GAAP loss per share from continuing operations - basic and diluted | $ | (0.33 | ) | $ | (0.00 | ) | ||
The non-GAAP amounts have been adjusted to | ||||||||
exclude the following items: | ||||||||
Excluded from operating expenses | ||||||||
Quarterly review fee increase (b) | $ | - | $ | (121 | ) | |||
Financial consulting services (c) | - | (71 | ) | |||||
Executive management recruiting costs (e) | - | (111 | ) | |||||
Total excluded from operating expenses | $ | - | $ | (303 | ) | |||
Total excluded from operating loss | $ | - | $ | (303 | ) | |||
Income tax effect on non-GAAP adjustments (f) | - | 115 | ||||||
Total excluded from operating expenses after taxes | $ | - | $ | (188 | ) | |||
Excluded from income tax expenses | ||||||||
Valuation allowance on deferred tax assets (g) | (10,064 | ) | - | |||||
Non-GAAP net (loss) income | $ | (378 | ) | $ | 90 | |||
Non-GAAP (loss) income per share from continuing operations - basic and diluted | $ | (0.01 | ) | $ | 0.00 | |||
(b) - (g) 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 Nine Months Ended
December 31, |
|||||||
|
|||||||
2015 | 2014 | ||||||
GAAP net loss | $ | (11,029 | ) | $ | (304 | ) | |
GAAP loss per share from continuing operations - basic and diluted | $ | (0.35 | ) | $ | (0.01 | ) | |
The non-GAAP amounts have been adjusted to | |||||||
exclude the following items: | |||||||
Excluded from operating expenses | |||||||
Audit Fee overrun (a) | $ | (150 | ) | $ | (941 | ) | |
Quarterly review fee increase (b) | - | (121 | ) | ||||
Financial consulting services (c) | (88 | ) | (757 | ) | |||
Executive management severance costs (d) | (150 | ) | - | ||||
Executive management recruiting costs (e) | - | (111 | ) | ||||
Total excluded from operating expenses | $ | (388 | ) | $ | (1,930 | ) | |
Total excluded from operating loss | $ | (388 | ) | $ | (1,930 | ) | |
Income tax effect on non-GAAP adjustments (f) | 147 | 733 | |||||
Total excluded from operating expenses after taxes | $ | (241 | ) | $ | (1,197 | ) | |
Excluded from income tax expenses | |||||||
Valuation allowance on deferred tax assets (g) | (10,064 | ) | - | ||||
Non-GAAP net (loss) income | $ | (724 | ) | $ | 893 | ||
Non-GAAP (loss) income per share from continuing operations - basic and diluted | $ | (0.02 | ) | $ | 0.03 | ||
(a) - (g) See corresponding footnotes above. | |||||||
Iteris, Inc. | |||||||
Schedule Reconciling GAAP Operating (Loss) to Non-GAAP Operating (Loss) Income | |||||||
($ in thousands, except per share amounts) | |||||||
(unaudited) | |||||||
For the Three Months Ended | |||||||
December 31, | December 31, | ||||||
2015 | 2014 | ||||||
GAAP operating expenses | $ | 8,345 | $ | 7,455 | |||
Audit Fee overrun (a) | - | - | |||||
Quarterly review fee increase (b) | - | (121 | ) | ||||
Financial consulting services (c) | - | (71 | ) | ||||
Executive management severance costs (d) | - | - | |||||
Executive management recruiting costs (e) | - | (111 | ) | ||||
Non-GAAP operating expenses | $ | 8,345 | $ | 7,152 | |||
GAAP operating loss | $ | (1,134 | ) | $ | (593 | ) | |
Audit Fee overrun (a) | - | - | |||||
Quarterly review fee increase (b) | - | (121 | ) | ||||
Financial consulting services (c) | - | (71 | ) | ||||
Executive management severance costs (d) | - | - | |||||
Executive management recruiting costs (e) | - | (111 | ) | ||||
Non-GAAP operating loss | $ | (1,134 | ) | $ | (290 | ) | |
|
|
For the Nine Months Ended |
|||||
December 31, |
|
December 31, | |||||
GAAP operating expenses |
2015 |
|
2014 | ||||
$ | 24,880 | $ | 21,976 | ||||
Audit Fee overrun (a) | (150 | ) | (941 | ) | |||
Quarterly review fee increase (b) | - | (121 | ) | ||||
Financial consulting services (c) | (88 | ) | (756 | ) | |||
Executive management severance costs (d) | (150 | ) | - | ||||
Executive management recruiting costs (e) | - | (111 | ) | ||||
Non-GAAP operating expenses | $ | 24,492 | $ | 20,047 | |||
GAAP operating loss | $ | (2,148 | ) | $ | (1,008 | ) | |
Audit Fee overrun (a) | (150 | ) | (941 | ) | |||
Quarterly review fee increase (b) | - | (121 | ) | ||||
Financial consulting services (c) | (88 | ) | (756 | ) | |||
Executive management severance costs (d) | (150 | ) | - | ||||
Executive management recruiting costs (e) | - | (111 | ) | ||||
Non-GAAP operating (loss) income | $ | (1,760 | ) | $ | 921 | ||
(a) - (e) See corresponding footnotes above. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20160211006408/en/
Source:
Liolios Group, Inc.
Scott Liolios or Cody Slach
Investor
Relations
1-949-574-3860
ITI@liolios.com