Press Release
9 Month Revenue
Fiscal Third Quarter 2017 Financial Highlights
-
Total revenue increased 19% year over year to
$22.7 million -
Transportation Systems revenue increased 44% year over year to
$11.9 million -
Agriculture and Weather Analytics revenue increased 44% year over year
to
$1.4 million -
Roadway Sensors achieved release readiness for
February 2017 launch of new advanced radar detection sensor with streaming video
Management commentary:
”We are pleased to deliver a third consecutive quarter of strong
year-over-year performance,” said
“In addition, we saw continued significant progress in all of our
business segments against their product roadmaps,” continued Bergera.
“We believe this positive momentum should not only sustain our
leadership in existing categories, but also create exciting additional
opportunities for
Business Segment Reassignment
Beginning in the Company’s first fiscal quarter of 2017, certain operations that were previously within its Agriculture and Weather Analytics segment (formerly known as Performance Analytics), specifically its performance measurement and information management solution iPeMS® and related traffic consulting services, were reassigned to the Transportation Systems segment to better align the Company’s 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 Third Quarter 2017 Financial Results
Total revenues in the third quarter of fiscal 2017 increased 19% to a
record
Operating expenses in the third quarter were
Operating loss in the third quarter was
Non-GAAP Fiscal Q3 2017 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
Earnings Conference Call
Date:
Time:
Toll-free dial-in number:
1-877-545-1403
International dial-in number: 1-719-325-4749
Conference
ID: 4020979
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 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 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) | ||||||
| December 31, | March 31, | |||||
| 2016 | 2016 | |||||
| ASSETS: | ||||||
| Cash | $ | 17,881 | $ | 16,029 | ||
| Trade accounts receivable, net | 12,443 | 13,241 | ||||
| Costs and estimated earnings in excess of billings | ||||||
| on uncompleted contracts | 6,031 | 5,250 | ||||
| Inventories | 2,753 | 3,153 | ||||
| Prepaid expenses and other current assets | 2,016 | 1,505 | ||||
| Total current assets | 41,124 | 39,178 | ||||
| Property and equipment, net | 2,078 | 2,139 | ||||
| Goodwill | 17,318 | 17,318 | ||||
| Intangible and other assets, net | 1,289 | 1,385 | ||||
| Total assets | $ | 61,809 | $ | 60,020 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: | ||||||
| Accounts payable and other current liabilities | $ | 14,375 | $ | 12,633 | ||
| Billings in excess of costs and estimated earnings | ||||||
| on uncompleted contracts | 2,950 | 2,294 | ||||
| Total current liabilities | 17,325 | 14,927 | ||||
| Long-term liabilities | 1,579 | 1,631 | ||||
| Total liabilities | 18,904 | 16,558 | ||||
| Stockholders’ equity | 42,905 | 43,462 | ||||
| Total liabilities and stockholders’ equity | $ | 61,809 | $ | 60,020 | ||
| ITERIS, INC. | ||||||||||||||||
| UNAUDITED CONSOLIDATED | ||||||||||||||||
| STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Total revenues | $ | 22,691 | $ | 19,014 | $ | 70,678 | $ | 57,952 | ||||||||
| Cost of revenues | 14,071 | 11,803 | 43,194 | 35,220 | ||||||||||||
| Gross profit | 8,620 | 7,211 | 27,484 | 22,732 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 8,035 | 6,400 | 23,698 | 19,176 | ||||||||||||
| Research and development | 1,979 | 1,853 | 5,287 | 5,428 | ||||||||||||
| 80 | 92 | 248 | 276 | |||||||||||||
| Amortization of intangible assets | ||||||||||||||||
| Total operating expenses | 10,094 | 8,345 | 29,233 | 24,880 | ||||||||||||
| Operating loss | (1,474 | ) | (1,134 | ) | (1,749 | ) | (2,148 | ) | ||||||||
| Non-operating income (expense): | ||||||||||||||||
| Other (expense) income, net | (1 | ) | (3 | ) | (7 | ) | 1 | |||||||||
| Interest income, net | 4 | 3 | 9 | 10 | ||||||||||||
| Loss from continuing operations before income taxes | (1,471 | ) | (1,134 | ) | (1,747 | ) | (2,137 | ) | ||||||||
| Benefit (expense) for income taxes | 4 | (9,365 | ) | 11 | (9,055 | ) | ||||||||||
| Loss from continuing operations | (1,467 | ) | (10,499 | ) | (1,736 | ) | (11,192 | ) | ||||||||
| Gain on sale of discontinued operation, net of tax | 87 | 57 | 278 | 163 | ||||||||||||
| Net loss | $ | (1,380 | ) | $ | (10,442 | ) | $ | (1,458 | ) | $ | (11,029 | ) | ||||
|
Loss per share from continuing operations – |
(0.05 | ) | (0.33 | ) | (0.05 | ) | (0.35 | ) | ||||||||
| basic and diluted | $ | $ | $ | $ | ||||||||||||
| Gain per share from sale of discontinued operation – | 0.01 | 0.00 | 0.01 | 0.01 | ||||||||||||
| basic and diluted | $ | $ | $ | $ | ||||||||||||
| Net loss per share - basic and diluted | $ | (0.04 | ) | $ | (0.33 | ) | $ | (0.04 | ) | $ | (0.34 | ) | ||||
| Shares used in basic and diluted per share calculations | 32,205 | 32,013 | 32,125 | 32,051 | ||||||||||||
| ITERIS, INC. | ||||||||||||||
| UNAUDITED SEGMENT REPORTING DETAILS | ||||||||||||||
| (in thousands) | ||||||||||||||
|
Roadway |
Transportation |
Ag & Weather |
Iteris, Inc. | |||||||||||
| Three Months Ended December 31, 2016 | ||||||||||||||
| Total revenues | $ | 9,397 | $ | 11,913 | $ | 1,381 | $ | 22,691 | ||||||
| Segment operating income (loss) | $ | 1,940 | $ | 1,920 | $ | (1,892 | ) | $ | 1,968 | |||||
| Corporate and other income (expense), net | (3,362 | ) | ||||||||||||
| Amortization of intangible assets | (80 | ) | ||||||||||||
| Operating loss | $ | (1,474 | ) | |||||||||||
|
Roadway |
Transportation |
Ag & Weather |
Iteris, Inc. | |||||||||||
| Three Months Ended December 31, 2015 | ||||||||||||||
| Total revenues | $ | 9,771 | $ | 8,283 | $ | 960 | $ | 19,014 | ||||||
| Segment operating income (loss) | $ | 1,856 | $ | 1,027 | $ | (1,546 | ) | $ | 1,337 | |||||
| Corporate and other income (expense), net | (2,379 | ) | ||||||||||||
| Amortization of intangible assets | (92 | ) | ||||||||||||
| Operating loss | $ | (1,134 | ) | |||||||||||
|
Roadway |
Transportation |
Ag & Weather |
Iteris, Inc. | |||||||||||
| Nine Months Ended December 31, 2016 | ||||||||||||||
| Total revenues | $ | 30,897 | $ | 36,638 | $ | 3,143 | $ | 70,678 | ||||||
| Segment operating income (loss) | $ | 6,897 | $ | 6,813 | $ | (5,582 | ) | $ | 8,128 | |||||
| Corporate and other income (expense), net | (9,629 | ) | ||||||||||||
| Amortization of intangible assets | (248 | ) | ||||||||||||
| Operating loss | $ | (1,749 | ) | |||||||||||
|
Roadway |
Transportation |
Ag & Weather |
Iteris, Inc. | |||||||||||
| Nine Months Ended December 31, 2015 | ||||||||||||||
| Total revenues | $ | 31,235 | $ | 24,536 | $ | 2,181 | $ | 57,952 | ||||||
| Segment operating income (loss) | $ | 7,053 | $ | 3,074 | $ | (4,904 | ) | $ | 5,223 | |||||
| Corporate and other income (expense), net | (7,095 | ) | ||||||||||||
| Amortization of intangible assets | (276 | ) | ||||||||||||
| Operating loss | $ | (2,148 | ) | |||||||||||
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; (d) the estimated income tax effect of the foregoing non-GAAP adjustments; and (e) 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 $150,000 of fee overruns were recorded into the first fiscal quarter of 2016. | |||||
| 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. | |||||
| c) | On February 25, 2015, the Company’s Chief Executive Officer resigned and, as a result, the Company incurred approximately $150,000 in severance and transition related expenses in the first half of 2016, respectively. | |||||
| 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. | |||||
| e) | 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 $10.1 million adjustment in tax expense in the Statement of Operations. | |||||
| Iteris, Inc. | ||||||||||||||||
| Schedule Reconciling GAAP Net (Loss) to Non-GAAP Net (Loss) | ||||||||||||||||
| ($ in thousands, except per share amounts) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| GAAP net loss | $ | (1,380 | ) | $ | (10,442 | ) | $ | (1,458 | ) | $ | (11,029 | ) | ||||
| GAAP net loss per share - basic and diluted | $ | (0.04 | ) | $ | (0.33 | ) | $ | (0.04 | ) | $ | (0.34 | ) | ||||
|
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) | - | - | - | (88 | ) | |||||||||||
| Executive management severance costs (c) | - | - | - | (150 | ) | |||||||||||
| Total excluded from operating expenses | $ | - | $ | - | $ | - | $ | (388 | ) | |||||||
| Total excluded operating loss | $ | - | $ | - | $ | - | $ | (388 | ) | |||||||
| Income tax effect on non-GAAP adjustments (d) | - | - | - | 147 | ||||||||||||
|
Total excluded from operating expenses after |
||||||||||||||||
| income tax effect | $ | - | $ | - | $ | - | $ | (241 | ) | |||||||
| Excluded from income tax expenses | ||||||||||||||||
|
Valuation allowance on deferred tax assets (e) |
- | (10,064 | ) | - | (10,064 | ) | ||||||||||
| Non-GAAP net loss | $ | (1,380 | ) | $ | (378 | ) | $ | (1,458 | ) | $ | (724 | ) | ||||
| Non-GAAP loss per share - basic and diluted | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.02 | ) | ||||
| (a) - (e) 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 | For the Nine Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| GAAP operating expenses | $ | 10,094 | $ | 8,345 | $ | 29,233 | $ | 24,880 | ||||||||
| Audit Fee overrun (a) | - | - | - | (150 | ) | |||||||||||
| Financial consulting services (b) | - | - | - | (88 | ) | |||||||||||
| Executive management severance costs (c) | - | - | - | (150 | ) | |||||||||||
| Non-GAAP operating expenses | $ | 10,094 | $ | 8,345 | $ | 29,233 | $ | 24,492 | ||||||||
| GAAP operating loss | $ | (1,474 | ) | $ | (1,134 | ) | $ | (1,749 | ) | $ | (2,148 | ) | ||||
| Audit Fee overrun (a) | - | - | - | (150 | ) | |||||||||||
| Financial consulting services (b) | - | - | - | (88 | ) | |||||||||||
| Executive management severance costs (c) | - | - | - | (150 | ) | |||||||||||
| Non-GAAP operating loss | $ | (1,474 | ) | $ | (1,134 | ) | $ | (1,749 | ) | $ | (1,760 | ) | ||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170209006098/en/
Source:
Investor Relations
MKR Group, Inc.
Todd Kehrli
323-468-2300
iti@mkr-group.com
