GAAP Net Income of $0.4 Million or $0.01 Diluted Per Share and Adjusted EBITDA of $2.3 million
SANTA ANA, Calif. – August 4, 2020 – Iteris, Inc. (NASDAQ: ITI), the global leader in smart mobility infrastructure management, today reported financial results for its fiscal first quarter 2021 ended June 30, 2020. During the first quarter, the company completed the sale of its Agriculture and Weather Analytics segment to DTN, LLC. The results of the Agriculture and Weather Analytics segment are reported as discontinued operations for all periods presented in this release.
Fiscal First Quarter 2021 Financial Highlights
- Total revenue of $28.0 million, up 11% year over year
- Total net bookings of $33.8 million, up 11% year over year
- Total ending backlog of $67.9 million, up 21% year over year
- GAAP net income from continuing operations of $0.4 million, or $0.01 diluted per share, a $1.0 million, or $0.03 per share, improvement year over year
- Adjusted EBITDA of $2.3 million, a $1.8 million improvement year over year
“Our significantly improved net income and adjusted EBITDA results in the first quarter demonstrate a critical financial inflection point for Iteris, despite the challenging economic environment associated with COVID-19,” said Joe Bergera, president and CEO of Iteris. “During the last several quarters, we have executed a series of successful strategic initiatives that have fundamentally enhanced the company’s cost structure and positioned Iteris for long-term profitable growth.
“While COVID-19 has created considerable macroeconomic uncertainty, we have experienced continued strong demand within our transportation segments with record net bookings of $33.8 million. We look forward to introducing several exciting new product innovations this fiscal year that will enhance our market leadership and further position Iteris to capitalize on favorable long-term, secular growth trends in the smart mobility infrastructure management market.”
GAAP Fiscal First Quarter 2020 Financial Results
Total revenue in the first quarter of fiscal 2021 increased 11% to $28.0 million, compared with $25.2 million in the same quarter a year ago. This revenue increase was driven primarily by a 20% increase in Transportation Systems and a 3% increase in Roadway Sensors. Operating expenses in the first quarter increased approximately $0.4 million to $10.5 million and included approximately $0.6 million of restructuring charges, compared with approximately $10.1 million in the same quarter a year ago.
Operating income from continuing operations in the first quarter was approximately $0.4 million, compared with an operating loss of approximately $0.5 million in the same quarter a year ago. Net income from continuing operations in the first quarter was approximately $0.4 million, or $0.01 diluted per share, compared with a loss of approximately $0.5 million, or ($0.02) per share, in the same quarter a year ago.
Non-GAAP Fiscal First Quarter 2020 Financial Results
In addition to results presented in accordance with generally accepted accounting principles in the United States (“GAAP”), the company has included the following non-GAAP financial measure: Adjusted income (loss) from continuing operations before interest, taxes, depreciation, amortization, stock-based compensation expense, and restructuring charges (“Adjusted EBITDA”). A discussion of the company’s use of this non-GAAP financial measure is set forth below in the financial statements portion of this release under the heading “Non-GAAP Financial Measures and Reconciliation.”
Adjusted EBITDA in the first quarter was approximately $2.3 million, or 8% of total revenues, compared with approximately $0.5 million, or 2% of total revenues, in the same quarter a year ago.
Earnings Conference Call
Iteris will conduct a conference call today to discuss its fiscal first quarter results.
Date: Tuesday, August 4, 2020
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Toll-free dial-in number: 1-800-353-6461
International dial-in number: +1 334-323-0501
Conference ID: 9393206
A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through August 11, 2020. To access the replay dial information, please click here.
About Iteris, Inc.
Iteris is the global leader in smart mobility infrastructure management – the foundation for a new era of mobility. We apply cloud computing, artificial intelligence, advanced sensors, advisory services and managed services to achieve safe, efficient and sustainable mobility. Our end-to-end solutions monitor, visualize and optimize mobility infrastructure around the world to help ensure that roads are safe, travel is efficient, and communities thrive. Visit www.iteris.com for more information and join the conversation on Twitter, LinkedIn and Facebook.
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 demand and growth opportunities, conversion of bookings to revenue, the impact and success of new solution offerings, the Company’s recent acquisition, our future performance, growth and profitability, operating results, and 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, spending and scheduling changes, funding constraints and delays, including in light of the COVID-19 pandemic; the timing and amount of government funds allocated to overall transportation infrastructure projects and the transportation industry; our ability to replace large contracts once they have been completed; the effectiveness of efficiency, cost, and expense reduction efforts; our ability to achieve anticipated benefits from the sale of our Agriculture and Weather Analytics segment; difficulties and risks in restructurings; our ability to successfully complete and integrate acquired companies; our ability to specify, develop, complete, introduce, market and gain broad acceptance of our new and existing product and service offerings; risks related to our ability to recruit and/or retain key talent; the potential unforeseen impact of product and service offerings from competitors, increased competition in certain market segments, and such competitors’ patent coverage and claims; any softness in the markets that we address; adverse effects of the COVID-19 pandemic on our vendors and our employees; and the impact of general economic and political conditions and specific conditions in the markets we address, and the possible disruption in government spending and commercial activities, such as the COVID-19 pandemic, import/export tariffs, terrorist activities or armed conflicts in the United States and internationally. Further information on Iteris, Inc., including additional risk factors that may affect our forward-looking statements, as contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K, and our other SEC filings that are available through the SEC's website (www.sec.gov).
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