Press Release
Total Revenue Increased 30% Year Over Year
Fiscal First Quarter 2017 Financial Highlights
-
Record total revenue of
$23.9 million , up 30% over Q1 a year ago -
Transportation Systems revenue increased 59% over Q1 a year ago to
$12.4 million -
Agriculture and Weather Analytics (formerly known as Performance
Analytics) revenue increased 38% over Q1 a year ago to
$0.9 million -
Roadway Sensors revenue increased 7% over Q1 a year ago to
$10.6 million - Significantly improved Operating Results year over year
Management commentary:
“We are pleased to report record revenue and improved operating results
for the fiscal first quarter reflecting continued growth in our
transportation segments, as well as growing revenue contribution from
our ClearAg digital agriculture platform,” said
“We remain highly disciplined in our approach to the transportation and agriculture markets - two large end-markets with powerful secular trends and substantial growth potential. We made some thoughtful investments over the past few quarters, which have produced significant revenue growth. In turn, this growth has contributed to sizable improvements in our operating results.”
Business Segment Reassignment
Beginning in our first fiscal quarter of 2017, certain operations that were previously within the Agriculture and Weather Analytics segment (formerly known as Performance Analytics), specifically our performance measurement and information management solution iPeMS and related traffic consulting services, were reassigned to the Transportation Systems segment to better align our traffic analytics capabilities, resources and initiatives. Prior year segment information presented in the table below has been re-classified to reflect this change.
GAAP Fiscal First Quarter 2017 Financial Results
Total revenues in the first quarter of fiscal 2017 increased 30% to a
record
Operating expenses in the first quarter were
Operating loss in the first quarter was
Non-GAAP Fiscal Q1 2017 Financial Results
In addition to results presented in accordance with generally accepted
accounting principles in
Non-GAAP operating expenses in the first quarter increased to
Earnings Conference Call
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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) | ||||||
| June 30, | March 31, | |||||
| 2016 | 2016 | |||||
| ASSETS: | ||||||
| Cash | $ | 15,086 | $ | 16,029 | ||
| Trade accounts receivable, net | 13,259 | 13,241 | ||||
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
5,991 | 5,250 | ||||
| Inventories | 2,640 | 3,153 | ||||
| Prepaid expenses and other current assets | 1,872 | 1,505 | ||||
| Total current assets | 38,848 | 39,178 | ||||
| Property and equipment, net | 2,242 | 2,139 | ||||
| Goodwill | 17,318 | 17,318 | ||||
| Intangible and other assets, net | 1,419 | 1,385 | ||||
| Total assets | $ | 59,827 | $ | 60,020 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: | ||||||
| Accounts payable and other current liabilities | $ | 12,629 | $ | 12,633 | ||
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
1,924 | 2,294 | ||||
| Total current liabilities | 14,553 | 14,927 | ||||
| Long-term liabilities | 1,612 | 1,631 | ||||
| Total liabilities | 16,165 | 16,558 | ||||
| Stockholders’ equity | 43,662 | 43,462 | ||||
| Total liabilities and stockholders’ equity | $ | 59,827 | $ | 60,020 | ||
| ITERIS, INC. | ||||||||
| UNAUDITED CONSOLIDATED | ||||||||
| STATEMENTS OF OPERATIONS | ||||||||
| (in thousands, except per share amounts) | ||||||||
| Three Months Ended | ||||||||
| June 30, | ||||||||
| 2016 | 2015 | |||||||
| Total revenues | $ | 23,927 | $ | 18,365 | ||||
| Cost of revenues | 14,518 | 10,728 | ||||||
| Gross profit | 9,409 | 7,637 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 7,805 | 6,488 | ||||||
| Research and development | 1,610 | 1,503 | ||||||
| Amortization of intangible assets | 84 | 92 | ||||||
| Total operating expenses | 9,499 | 8,083 | ||||||
| Operating loss | (90 | ) | (446 | ) | ||||
| Non-operating (expense) income: | ||||||||
| Other (expense), net | (4 | ) | - | |||||
| Interest income, net | 1 | 4 | ||||||
| Loss from continuing operations before income taxes | (93 | ) | (442 | ) | ||||
| (Expense) benefit for income taxes | (1 | ) | 198 | |||||
| Loss from continuing operations | (94 | ) | (244 | ) | ||||
| Gain on sale of discontinued operation, net of tax | 56 | 52 | ||||||
| Net loss | $ | (38 | ) | $ | (192 | ) | ||
|
Loss per share from continuing operations – basic and diluted |
$ | (0.00 | ) | $ | (0.01 | ) | ||
|
Gain per share from sale of discontinued operation – basic and diluted |
$ | 0.00 | $ | 0.00 | ||||
| Net loss per share - basic and diluted | $ | (0.00 | ) | $ | (0.01 | ) | ||
| Shares used in basic per share calculations | 32,052 | 32,203 | ||||||
| Shares used in diluted per share calculations | 32,052 | 32,203 | ||||||
| ITERIS, INC. | ||||||||||||||
| UNAUDITED SEGMENT REPORTING DETAILS | ||||||||||||||
| (in thousands) | ||||||||||||||
| Agriculture | ||||||||||||||
| Roadway | Transportation | & Weather | ||||||||||||
| Sensors | Systems | Analytics | Iteris, Inc. | |||||||||||
| Three Months Ended June 30, 2016 | ||||||||||||||
| Total revenues | $ | 10,604 | $ | 12,401 | $ | 922 | $ | 23,927 | ||||||
| Segment operating income (loss) | $ | 2,309 | $ | 2,346 | $ | (1,614 | ) | $ | 3,041 | |||||
| Corporate and other income (expense), net | (3,047 | ) | ||||||||||||
| Amortization of intangible assets | (84 | ) | ||||||||||||
| Operating loss | $ | (90 | ) | |||||||||||
| Agriculture | ||||||||||||||
| Roadway | Transportation | & Weather | ||||||||||||
| Sensors | Systems | Analytics | Iteris, Inc. | |||||||||||
| Three Months Ended June 30, 2015 | ||||||||||||||
| Total revenues | $ | 9,905 | $ | 7,794 | $ | 666 | $ | 18,365 | ||||||
| Segment operating income (loss) | $ | 2,740 | $ |
851 |
$ |
(1,308 |
) | $ | 2,283 | |||||
| Corporate and other income (expense), net | (2,637 | ) | ||||||||||||
| Amortization of intangible assets | (92 | ) | ||||||||||||
| Operating loss | $ | (446 | ) | |||||||||||
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, non-GAAP net (loss) income and non-GAAP basic and diluted (loss) 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 $150,000 of fee overruns were recorded into the three month period ending June 30, 2015. | |||||
| b) | Management engaged financial consulting service firms to assist with the completion of its Fiscal 2015. The fees incurred for assistance with the Fiscal 2015 audit were incurred during the first quarter of Fiscal 2016. | |||||
| c) | On February 25, 2015, the Company’s Chief Executive Officer resigned and, as a result, the Company incurred approximately $86,000 in severance related expenses in the first fiscal quarter of 2016. | |||||
| d) | The amount represents the estimated income tax effect of the non-GAAP adjustments. The tax effect of non-GAAP adjustments was calculated by applying an estimated tax rate of 38% to each specific non-GAAP item. | |||||
| Iteris, Inc. | ||||||||
| Schedule Reconciling GAAP Net (Loss) to Non-GAAP Net (Loss) Income | ||||||||
| ($ in thousands, except per share amounts) | ||||||||
| (unaudited) | ||||||||
| For the Three Months Ended | ||||||||
| June 30, | ||||||||
| 2016 | 2015 | |||||||
| GAAP net loss | $ | (38 | ) | $ | (192 | ) | ||
| GAAP loss per share from continuing operations - basic and diluted | $ | (0.00 | ) | $ | (0.01 | ) | ||
| The non-GAAP amounts have been adjusted to exclude the following items: | ||||||||
| Excluded from operating expenses: | ||||||||
| Audit fee overrun (a) | $ | - | $ | (150 | ) | |||
| Financial consulting services (b) | - | (161 | ) | |||||
| Executive management severance costs (c) | - | (86 | ) | |||||
| Total excluded from operating expenses | $ | - | $ | (397 | ) | |||
| Total excluded operating loss | $ | - | $ | (397 | ) | |||
| Income tax effect on non-GAAP adjustments (d) | - | 151 | ||||||
| Total excluded from operating expenses after income tax effect | $ | - | $ | (246 | ) | |||
| Non-GAAP net (loss) income | $ | (38 | ) | $ | 54 | |||
| Non-GAAP (loss) income per share from continuing operations - basic and diluted | $ | (0.00 | ) | $ | 0.00 | |||
| (a) - (d) See corresponding footnotes above. | ||||||||
| Iteris, Inc. | ||||||||
| Schedule Reconciling GAAP Operating Loss to Non-GAAP Operating Loss | ||||||||
| ($ in thousands, except per share amounts) | ||||||||
| (unaudited) | ||||||||
| For the Three Months Ended | ||||||||
| June 30, | ||||||||
| 2016 | 2015 | |||||||
| GAAP operating expenses | $ | 9,499 | $ | 8,083 | ||||
| Audit fee overrun (a) | - | (150 | ) | |||||
| Financial consulting services (b) | - | (161 | ) | |||||
| Executive management severance costs (c) | - | (86 | ) | |||||
| Non-GAAP operating expenses | $ | 9,499 | $ | 7,686 | ||||
| GAAP operating loss | $ | (90 | ) | $ | (446 | ) | ||
| Audit fee overrun (a) | - | (150 | ) | |||||
| Financial consulting services (b) | - | (161 | ) | |||||
| Executive management severance costs (c) | - | (86 | ) | |||||
| Non-GAAP operating loss | $ | (90 | ) | $ | (140 | ) | ||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160804006343/en/
Source:
Investor Relations
MKR Group, Inc.
Todd Kehrli
iti@mkr-group.com
