Press Release
Total Backlog Increased 61% Year Over Year to
Fiscal Fourth Quarter 2016 Financial Highlights
-
Record total revenue of
$19.8 million , up 10% over Q4 a year ago -
Transportation Systems revenue increased 20% over Q4 a year ago to
$9.0 million -
Performance Analytics revenue increased 19% over Q4 a year ago to
$1.7 million , driven by growth in ClearAg revenue
Fiscal 2016 Full Year Financial Highlights
-
Record total revenue of
$77.7 million , up 8% year over year -
Transportation Systems revenue increased 7% year over year to
$32.3 million -
Roadway Sensors revenue increased 11% year over year to
$40.3 million -
Since initial launch only eight months ago, ClearAg bookings exceeded
$1 million in fiscal 2016 -
Total backlog at year-end of
$63.3 million , up 61% year over year
Management commentary:
“We are pleased to report record revenue and backlog for the fiscal
fourth quarter and year due to continued growth in our transportation
segments, as well as the beginning of revenue contribution from our
digital agriculture platform, ClearAg,” said
“While we only recently entered the digital agriculture market, we are
confident about the opportunity in front of
GAAP Fiscal Fourth Quarter 2016 Financial Results
Total revenues in the fourth quarter of fiscal 2016 increased 10% to a
record
Operating expenses in the fourth quarter were
Operating loss in the fourth quarter was
GAAP Fiscal 2016 Full Year Financial Results
Total revenues in fiscal 2016 increased 8% to a record
Operating expenses in fiscal 2016 were
Operating loss in fiscal 2016 was
Non-GAAP Fiscal Q4 2016 Financial Results
In addition to results presented in accordance with generally accepted
accounting principles in
Non-GAAP operating expenses in the fourth quarter increased to
Non-GAAP Fiscal 2016 Full Year Financial Results
Non-GAAP operating expenses in fiscal 2016 were
Non-GAAP operating loss in 2016 was
Earnings Conference Call
Date:
Time:
Toll-free dial-in number:
1-888-337-8198
International dial-in number: 1-719-325-2458
Conference
ID: 1411701
To listen to the live or archived webcast of the earnings call or to
view the press release, please visit the investor
relations section of the
A phone replay of the conference call will be available after
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 and program 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 government Bills on the
Intelligent Transportation industry and the expected benefits to
| ITERIS, INC. | ||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (in thousands) | ||||||
| March 31, | March 31, | |||||
| 2016 | 2015 | |||||
| ASSETS: | ||||||
| Cash | $ | 16,029 | $ | 21,961 | ||
| Trade accounts receivable, net | 13,241 | 11,206 | ||||
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
5,250 | 4,266 | ||||
| Inventories | 3,153 | 3,062 | ||||
| Prepaid expenses and other current assets | 1,505 | 1,338 | ||||
| Current portion of deferred income taxes | - | 2,680 | ||||
| Total current assets | 39,178 | 44,513 | ||||
| Property and equipment, net | 2,139 | 1,990 | ||||
| Long-term portion of deferred income taxes | - | 5,610 | ||||
| Goodwill | 17,318 | 17,318 | ||||
| Intangible and other assets, net | 1,385 | 1,201 | ||||
| Total assets | $ | 60,020 | $ | 70,632 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: | ||||||
| Accounts payable and other current liabilities | $ | 12,633 | $ | 12,106 | ||
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
2,294 | 1,549 | ||||
| Total current liabilities | 14,927 | 13,655 | ||||
| Long-term liabilities | 1,631 | 1,009 | ||||
| Total liabilities | 16,558 | 14,664 | ||||
| Stockholders’ equity | 43,462 | 55,968 | ||||
| Total liabilities and stockholders’ equity | $ | 60,020 | $ | 70,632 | ||
| ITERIS, INC. | ||||||||||||||||
| UNAUDITED CONSOLIDATED | ||||||||||||||||
| STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Total revenues | $ | 19,796 | $ | 18,045 | $ | 77,748 | $ | 72,251 | ||||||||
| Cost of revenues | 11,858 | 10,831 | 47,079 | 44,069 | ||||||||||||
| Gross profit | 7,938 | 7,214 | 30,669 | 28,182 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 7,672 | 6,783 | 26,846 | 24,425 | ||||||||||||
| Research and development | 1,503 | 1,412 | 6,933 | 5,396 | ||||||||||||
| Amortization of intangible assets | 84 | 90 | 360 | 431 | ||||||||||||
|
Change in fair value of contingent acquisition consideration |
- |
- |
- |
9 | ||||||||||||
| Total operating expenses |
9,259 |
8,285 | 34,139 | 30,261 | ||||||||||||
| Operating loss | (1,321 | ) | (1,071 | ) | (3,470 | ) | (2,079 | ) | ||||||||
| Non-operating income (expense): | ||||||||||||||||
| Other income (expense), net | 1 | (4 | ) | 2 | (20 | ) | ||||||||||
| Interest income (expense), net | 1 | (1 | ) | 12 | 6 | |||||||||||
| Loss from continuing operations before income taxes | (1,319 | ) | (1,076 | ) | (3,456 | ) | (2,093 | ) | ||||||||
| (Expense) benefit for income taxes | (24 | ) | 254 | (9,079 | ) | 816 | ||||||||||
| Loss from continuing operations | (1,343 | ) | (822 | ) | (12,535 | ) | (1,277 | ) | ||||||||
| Gain on sale of discontinued operation, net of tax | 51 | 56 | 214 | 207 | ||||||||||||
| Net loss | $ |
(1,292 |
) | $ | (766 | ) | $ | (12,321 | ) | $ | (1,070 | ) | ||||
|
|
(0.04 | ) | (0.03 | ) | (0.39 | ) | (0.04 | ) | ||||||||
|
Loss per share from continuing operations – basic and diluted |
$ | $ | $ | $ | ||||||||||||
|
|
0.00 | 0.00 | 0.01 | 0.01 | ||||||||||||
|
Gain per share from sale of discontinued operation – basic and diluted |
$ | $ | $ | $ | ||||||||||||
| Net loss per share - basic and diluted | $ | (0.04 | ) | $ | (0.02 | ) | $ | (0.38 | ) | $ | (0.03 | ) | ||||
| Shares used in basic per share calculations | 32,043 | 32,570 | 32,049 | 32,595 | ||||||||||||
| Shares used in diluted per share calculations | 32,043 | 32,570 | 32,049 | 32,595 | ||||||||||||
| ITERIS, INC. | ||||||||||||||
| UNAUDITED SEGMENT REPORTING DETAILS | ||||||||||||||
| (in thousands) | ||||||||||||||
| Roadway Sensors | Transportation Systems | Performance Analytics | Iteris, Inc. | |||||||||||
| Three Months Ended March 31, 2016 | ||||||||||||||
| Total revenues | $ | 9,023 | $ | 9,048 | $ | 1,725 | $ | 19,796 | ||||||
| Segment operating income (loss) | $ | 1,154 | $ | 931 | $ | (1,445 | ) | $ | 640 | |||||
| Corporate and other income (expense), net | (1,877 | ) | ||||||||||||
| Amortization of intangible assets | (84 | ) | ||||||||||||
| Change in fair value of contingent acquisition consideration |
- |
|||||||||||||
| Operating loss | $ | (1,321 | ) | |||||||||||
| Roadway Sensors | Transportation Systems | Performance Analytics | Iteris, Inc. | |||||||||||
| Three Months Ended March 31, 2015 | ||||||||||||||
| Total revenues | $ | 9,042 | $ | 7,550 | $ | 1,453 | $ | 18,045 | ||||||
| Segment operating income (loss) | $ | 1,331 | $ | 1,038 | $ | (1,104 | ) | $ | 1,265 | |||||
| Corporate and other income (expense), net | (2,246 | ) | ||||||||||||
| Amortization of intangible assets | (90 | ) | ||||||||||||
| Change in fair value of contingent acquisition consideration | - | |||||||||||||
| Operating loss | $ | (1,071 | ) | |||||||||||
| Roadway Sensors | Transportation Systems | Performance Analytics | Iteris, Inc. | |||||||||||
| Twelve Months Ended March 31, 2016 | ||||||||||||||
| Total revenues | $ | 40,259 | $ | 32,330 | $ | 5,159 | $ | 77,748 | ||||||
| Segment operating income (loss) | $ |
7,718 |
$ | 4,031 | $ | (7,380 | ) | $ | 4,369 | |||||
| Corporate and other income (expense), net | (7,479 | ) | ||||||||||||
| Amortization of intangible assets | (360 | ) | ||||||||||||
| Change in fair value of contingent acquisition consideration |
- |
|||||||||||||
| Operating loss | $ | (3,470 | ) | |||||||||||
| Roadway Sensors | Transportation Systems | Performance Analytics | Iteris, Inc. | |||||||||||
| Twelve Months Ended March 31, 2015 | ||||||||||||||
| Total revenues | $ | 36,370 | $ | 30,294 | $ | 5,587 | $ | 72,251 | ||||||
| Segment operating income (loss) | $ | 6,302 | $ | 4,239 | $ | (4,449 | ) | $ | 6,092 | |||||
| Corporate and other income (expense), net | (7,731 | ) | ||||||||||||
| Amortization of intangible assets | (431 | ) | ||||||||||||
| Change in fair value of contingent acquisition consideration | (9 | ) | ||||||||||||
| Operating loss | $ | (2,079 | ) | |||||||||||
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, $0 and approximately $150,000 of fee overruns were recorded into the three and twelve month periods ending March 31, 2016, respectively. For the audit of Fiscal 2014, $0 and approximately $941,000 of audit fee overruns were recorded into the three and twelve month periods ending March 31, 2015, respectively. | |||
| 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 and second quarters of 2015. | |||
| d) | On February 25, 2015, the Company’s Chief Executive Officer resigned and, as a result, the Company incurred severance and transition costs. In the three and twelve month periods ending March 31, 2016 the company incurred $0 and approximately $150,000 in severance and transition related expenses. | |||
| 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 $10.1 million valuation allowance at December 31, 2015 related to its Federal Net Operating Loss (NOL) carryforwards, which are at risk of expiring in future years. As a result, the Company reserved approximately $2.5 million and $7.6 million in current and long-term deferred tax assets, respectively, from the Balance Sheet and recorded the related $10.1 million adjustment in tax expense in the Statement of Operations. |
| Iteris, Inc. | |||||||||||
| Schedule Reconciling GAAP Net (Loss) to Non-GAAP Net (Loss) Income | |||||||||||
| ($ in thousands, except per share amounts) | |||||||||||
| (unaudited) | |||||||||||
| For the Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2016 | 2015 | 2014 | |||||||||
| GAAP net loss | $ | (1,292 | ) | $ | (766 | ) | $ | 50 | |||
| GAAP loss per share from continuing operations - basic and diluted | $ | (0.04 | ) | $ | (0.03 | ) | $ | 0.00 | |||
| The non-GAAP amounts have been adjusted to exclude the following items: | |||||||||||
| Excluded from operating expenses: | |||||||||||
| Quarterly review fee increases (b) | $ | - | $ | (53 | ) | $ | - | ||||
| Financial consulting service fees (c) | - | (12 | ) | - | |||||||
| Executive management severance costs (d) | - | (594 | ) | - | |||||||
| Executive management recruiting costs (e) | - | (272 | ) | - | |||||||
| Total excluded from operating expenses | $ | - | $ | (931 | ) | $ | - | ||||
| Total excluded operating loss | $ | - | $ | (931 | ) | $ | - | ||||
| Income tax effect on non-GAAP adjustments (f) | - | 363 | - | ||||||||
| Total excluded from operating expenses after income tax effect | $ | - | $ | (568 | ) | $ | - | ||||
| Non-GAAP net (loss) income | $ |
(1,292 |
) | $ | (198 | ) | $ | 50 | |||
| Non-GAAP (loss) income per share from continuing operations - basic and diluted | $ | (0.04 | ) | $ | (0.01 | ) | $ | 0.00 | |||
| (b) - (f) 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 Twelve Months Ended |
|||||||||||
| March 31, | |||||||||||
| 2016 | 2015 | 2014 | |||||||||
| GAAP net loss | $ | (12,321 | ) | $ | (1,070 | ) | $ | 1,409 | |||
| GAAP loss per share from continuing operations - basic and diluted | $ | (0.39 | ) | $ | (0.04 | ) | $ | 0.04 | |||
| The non-GAAP amounts have been adjusted to exclude the following items: | |||||||||||
| Excluded from operating expenses | |||||||||||
| Audit Fee overruns (a) | $ | (150 | ) | $ | (941 | ) | $ | - | |||
| Quarterly review fee increases (b) | - | (174 | ) | - | |||||||
| Financial consulting service fees (c) | (88 | ) | (768 | ) | - | ||||||
| Executive management severance costs (d) | (150 | ) | (594 | ) | - | ||||||
| Executive management recruiting costs (e) | - | (383 | ) | - | |||||||
| Total excluded from operating expenses | $ | (388 | ) | $ | (2,860 | ) | $ | - | |||
| Total excluded operating loss | $ | (388 | ) | $ | (2,860 | ) | $ | - | |||
| Income tax effect on non-GAAP adjustments (f) | 147 | 1,116 | - | ||||||||
| Total excluded from operating expenses after income tax effect | $ | (241 | ) | $ | (1,745 | ) | $ | - | |||
| Excluded from income tax expenses | |||||||||||
| Valuation allowance on deferred tax assets (g) | (10,064 | ) | - | - | |||||||
| Non-GAAP net (loss) income | $ | (2,016 | ) | $ | 675 | $ | 1,409 | ||||
| Non-GAAP (loss) income per share from continuing operations - basic and diluted | $ | (0.06 | ) | $ | 0.02 | $ | 0.04 | ||||
| (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 | |||||||||||
| March 31, | |||||||||||
| 2016 | 2015 | 2014 | |||||||||
| GAAP operating expenses | $ | 9,259 | $ | 8,285 | $ | 6,100 | |||||
| Quarterly review fee increases (b) | - | (53 | ) | - | |||||||
| Financial consulting service fees (c) | - | (12 | ) | - | |||||||
| Executive management severance costs (d) | - | (594 | ) | - | |||||||
| Executive management recruiting costs (e) | - | (272 | ) | - | |||||||
| Non-GAAP operating expenses | $ | 9,259 | $ | 7,354 | $ | 6,100 | |||||
| GAAP operating loss | $ | (1,321 | ) | $ | (1,071 | ) | $ | 44 | |||
| Quarterly review fee increases(b) | - | (53 | ) | - | |||||||
| Financial consulting service fees (c) | - | (12 | ) | - | |||||||
| Executive management severance costs (d) | - | (594 | ) | - | |||||||
| Executive management recruiting costs (e) | - | (272 | ) | - | |||||||
| Non-GAAP operating (loss) income | $ | (1,321 | ) | $ | (140 | ) | $ | 44 | |||
| Iteris, Inc. | |||||||||||
| Schedule Reconciling GAAP Operating (Loss) to Non-GAAP Operating (Loss) Income | |||||||||||
| ($ in thousands, except per share amounts) | |||||||||||
| (unaudited) | |||||||||||
| For the Twelve Months Ended | |||||||||||
| March 31, | |||||||||||
| 2016 | 2015 | 2014 | |||||||||
| GAAP operating expenses | $ | 34,139 | $ | 30,261 | $ | 23,950 | |||||
| Audit Fee overruns (a) | (150 | ) | (941 | ) | - | ||||||
| Quarterly review fee increases (b) | - | (174 | ) | - | |||||||
| Financial consulting service fees (c) | (88 | ) | (768 | ) | - | ||||||
| Executive management severance costs (d) | (150 | ) | (594 | ) | - | ||||||
| Executive management recruiting costs (e) | - | (383 | ) | - | |||||||
| Non-GAAP operating expenses | $ | 33,751 | $ | 27,401 | $ | 23,950 | |||||
| GAAP operating loss | $ | (3,470 | ) | $ | (2,079 | ) | $ | 2,024 | |||
| Audit Fee overruns (a) | (150 | ) | (941 | ) | - | ||||||
| Quarterly review fee increases (b) | - | (174 | ) | - | |||||||
| Financial consulting service fees (c) | (88 | ) | (768 | ) | - | ||||||
| Executive management severance costs (d) | (150 | ) | (594 | ) | - | ||||||
| Executive management recruiting costs (e) | - | (383 | ) | - | |||||||
| Non-GAAP operating (loss) income | $ | (3,082 | ) | $ | 781 | $ | 2,024 | ||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160616006476/en/
Source:
Investor Relations
MKR Group, Inc.
Todd Kehrli,
323-205-4336
iti@mkr-group.com
