Business Wire | Feb 24, 2021 08:30AM EST

Itron Announces Fourth Quarter and Full Year 2020 Financial Results and 2021 Guidance

Feb. 24, 2021

LIBERTY LAKE, Wash.--(BUSINESS WIRE)--Feb. 24, 2021--Itron, Inc. (NASDAQ:ITRI), which is innovating the way utilities and cities manage energy and water, announced today financial results for its fourth quarter and full year ended Dec. 31, 2020. Highlights for the quarter and full year include:

* Quarterly and full year revenue of $525 million and $2.2 billion; * Quarterly and full year gross margin of 28.3% and 27.7%; * Quarterly and full year GAAP net income of $22 million and net loss of $(58) million; * Quarterly GAAP diluted earnings per share of $0.53 and full year loss per share of $(1.44); * Quarterly and full year non-GAAP diluted earnings per share of $0.65 and $1.85; * Quarterly and full year adjusted EBITDA of $56 million and $178 million; and * Backlog of $3.3 billion and 12-month backlog of $1.2 billion.

"I'm proud of our team's commitment during a challenging year with the COVID-19 pandemic," said Tom Deitrich, Itron's president and chief executive officer. "We have prioritized the health and safety of our employees, customers and the communities we serve, while continuing to execute on our strategy."

"We are optimistic as we enter 2021 with a record backlog; over 74 million endpoints under management; and over 2.7 million Distributed Intelligent Riva(r) meters deployed."

Summary of Fourth Quarter Consolidated Financial Results

(All comparisons made are against the prior year period unless otherwise noted)

Revenue

Total revenue of $525 million decreased 16%, or 18% excluding the impact of changes in foreign currency exchange rates, compared with the fourth quarter of 2019.

By segment, Outcomes revenue increased 14%, driven by higher software license revenue. Networked Solutions revenue decreased 25% and Device Solutions revenue decreased 10%.

Gross Margin

Consolidated gross margin of 28.3% increased 10 basis points compared with the fourth quarter of 2019, driven primarily by higher-margin software license revenue, partially offset by increased inventory reserves.

Operating Income, Net Income and Earnings per Share (EPS)

GAAP operating income increased to $33 million from $29 million in 2019. The increase was due to lower GAAP operating expenses.

Non-GAAP operating income decreased to $44 million from $46 million in 2019. The decrease was due to lower gross profit, partially offset by lower non-GAAP operating expenses, including lower variable compensation.

GAAP net income attributable to Itron, Inc. for the quarter was $22 million, or $0.53 per diluted share, compared with net income of $15 million, or $0.36 per diluted share, in 2019. The higher GAAP net income and EPS was primarily due to higher GAAP operating income.

Non-GAAP net income was $26 million, or $0.65 per diluted share, compared with $29 million, or $0.72 per diluted share in 2019. The decrease was due to lower non-GAAP operating income and a higher non-GAAP effective tax rate due to the mix of taxable income by jurisdiction and fewer discrete tax benefits.

Cash Flow

In the fourth quarter, cash provided by operating activities was $39 million compared with $45 million in 2019. Free cash flow of $29 million increased slightly year over year with a reduction in capital expenditures offsetting the lower operating cash flow.

Other Measures

Bookings were $973 million in the fourth quarter. This is a book to bill ratio of 1.9 to 1 for the quarter. Total backlog was $3.3 billion and 12-month backlog was $1.2 billion at the end of the quarter.

Financial Guidance

Itron's guidance for the full year 2021 is as follows:

* Revenue between $2.23 and $2.33 billion * Non-GAAP diluted EPS between $2.15 and $2.55

Guidance assumes an average euro to U.S. dollar foreign currency exchange rate of $1.20 in 2021, diluted weighted average shares outstanding of approximately 41 million for the year, non-GAAP interest expense of $36 million and a non-GAAP effective tax rate for the year of approximately 30%.

A reconciliation of forward-looking non-GAAP diluted EPS to the GAAP diluted EPS has not been provided because we are unable to predict with reasonable certainty the potential amount or timing of restructuring and acquisition and integration related expenses and their related tax effects without unreasonable effort. These items are uncertain, depend on various factors and could have a material impact on GAAP results for the guidance period.

Earnings Conference Call

Itron will host a conference call to discuss the financial results and guidance contained in this release at 10 a.m. EST on Feb. 24, 2021. The call will be webcast in a listen-only mode. Webcast information and conference call materials will be made available 10 minutes before the start of the call and will be accessible on Itron's website at http://investors.itron.com/events.cfm. A replay of the audio webcast will be made available at http://investors.itron.com/events.cfm. A telephone replay of the conference call will be available through March 1, 2021. To access the telephone replay, dial (888) 203-1112 (domestic) or (719) 457-0820 (international) and enter passcode 3823454.

About Itron

Itron(r) enables utilities and cities to safely, securely and reliably deliver critical infrastructure services to communities in more than 100 countries. Our portfolio of smart networks, software, services, meters and sensors helps our customers better manage electricity, gas and water resources for the people they serve. By working with our customers to ensure their success, we help improve the quality of life, ensure the safety and promote the well-being of millions of people around the globe. Itron is dedicated to creating a more resourceful world. Join us: www.itron.com.

Itron(r) is a registered trademark of Itron, Inc. All third-party trademarks are property of their respective owners and any usage herein does not suggest or imply any relationship between Itron and the third party unless expressly stated.

Cautionary Note Regarding Forward Looking Statements

This release contains, and our officers and representatives may from time to time make, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical factors nor assurances of future performance. These statements are based on our expectations about, among others, revenues, operations, financial performance, earnings, liquidity, earnings per share, cash flows and restructuring activities including headcount reductions and other cost savings initiatives. This document reflects our current strategy, plans and expectations and is based on information currently available as of the date of this release. When we use words such as "expect", "intend", "anticipate", "believe", "plan", "goal", "seek", "project", "estimate", "future", "strategy", "objective", "may", "likely", "should", "will", "will continue", and similar expressions, including related to future periods, they are intended to identify forward-looking statements. Forward-looking statements rely on a number of assumptions and estimates. Although we believe the estimates and assumptions upon which these forward-looking statements are based are reasonable, any of these estimates or assumptions could prove to be inaccurate and the forward-looking statements based on these estimates and assumptions could be incorrect. Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors. Therefore, you should not rely on any of these forward-looking statements. Some of the factors that we believe could affect our results include our ability to execute on our restructuring plan, our ability to achieve estimated cost savings, the rate and timing of customer demand for our products, rescheduling of current customer orders, changes in estimated liabilities for product warranties, adverse impacts of litigation, changes in laws and regulations, our dependence on new product development and intellectual property, future acquisitions, changes in estimates for stock-based and bonus compensation, increasing volatility in foreign exchange rates, international business risks, uncertainties caused by adverse economic conditions, including, without limitation those resulting from extraordinary events or circumstances such as the COVID-19 pandemic and other factors that are more fully described in Part I, Item 1A: Risk Factors included in our Annual Report on Form 10-K for the year ended Dec. 31, 2019 and other reports on file with the Securities and Exchange Commission. Itron undertakes no obligation to update or revise any information in this press release.

The impact caused by the ongoing COVID-19 pandemic includes uncertainty as to the duration, spread, severity, and any resurgence of the COVID-19 pandemic including other factors contributing to infection rates, such as reinfection or mutation of the virus, the effectiveness or widespread availability and application of any vaccine, the duration and scope of related government orders and restrictions, impact on overall demand, impact on our customers' businesses and workforce levels, disruptions of our business and operations, including the impact on our employees, limitations on, or closures of, our facilities, or the business and operations of our customers or suppliers. Our estimates and statements regarding the impact of COVID-19 are made in good faith to provide insight to our current and future operating and financial environment and any of these may materially change due to factors outside our control. For more information on risks associated with the COVID-19 pandemic, please see Itron's updated risk in Part II, Item 1A: Risk Factors of our latest 10-Q filing with the SEC.

Non-GAAP Financial Information

To supplement our consolidated financial statements, which are prepared in accordance with GAAP, we use certain non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted EPS, adjusted EBITDA, adjusted EBITDA margin, constant currency and free cash flow. We provide these non-GAAP financial measures because we believe they provide greater transparency and represent supplemental information used by management in its financial and operational decision making. We exclude certain costs in our non-GAAP financial measures as we believe the net result is a measure of our core business. The company believes these measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. Non-GAAP performance measures should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Our non-GAAP financial measures may be different from those reported by other companies. A more detailed discussion of why we use non-GAAP financial measures, the limitations of using such measures, and reconciliations between non-GAAP and the nearest GAAP financial measures are included in this press release.

ITRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS



(Unaudited, in thousands, except per share data)

Three Months Ended Twelve Months Ended December 31, December 31,

2020 2019 2020 2019

Revenues

Product $ 451,393 $ 556,601 $ 1,889,173 $ 2,220,395 revenues

Service 73,764 71,782 284,177 282,075 revenues

Total 525,157 628,383 2,173,350 2,502,470 revenues

Cost of revenues

Product cost 336,344 410,797 1,408,615 1,587,710 of revenues

Services cost 39,980 40,148 162,568 162,441 of revenues

Total cost 376,324 450,945 1,571,183 1,750,151 of revenues



Gross profit 148,833 177,438 602,167 752,319



Operating expenses

Sales, general and 61,902 82,232 276,920 346,872 administrative

Research and 45,102 51,649 194,101 202,200 development

Amortization of intangible 11,223 16,101 44,711 64,286 assets

Restructuring (4,518 ) (1,407 ) 37,013 6,278

Loss on sale 2,522 - 59,817 - of business

Total operating 116,231 148,575 612,562 619,636 expenses



Operating income 32,602 28,863 (10,395 ) 132,683 (loss)

Other income (expense)

Interest 833 470 2,998 1,849 income

Interest (10,230 ) (12,554 ) (44,001 ) (52,453 ) expense

Other income (1,827 ) (2,584 ) (5,241 ) (9,047 ) (expense), net

Total other income (11,224 ) (14,668 ) (46,244 ) (59,651 ) (expense)



Income (loss)before income 21,378 14,195 (56,639 ) 73,032 taxes

Income taxbenefit 128 75 (238 ) (20,617 ) (provision)

Net income 21,506 14,270 (56,877 ) 52,415 (loss)

Net income (loss) attributable (14 ) (350 ) 1,078 3,409 to noncontrolling interests

Net income(loss) $ 21,520 $ 14,620 $ (57,955 ) $ 49,006 attributable to Itron, Inc.



Net income(loss) per $ 0.53 $ 0.37 $ (1.44 ) $ 1.24 common share - Basic

Net income(loss) per $ 0.53 $ 0.36 $ (1.44 ) $ 1.23 common share - Diluted



Weighted averagecommon shares 40,412 39,699 40,253 39,556 outstanding - Basic

Weighted averagecommon shares 40,762 40,267 40,253 39,980 outstanding -Diluted

ITRON, INC.

SEGMENT INFORMATION



(Unaudited, in thousands)

Three Months Ended Twelve Months Ended December 31, December 31,

2020 2019 2020 2019

Product Revenues

Device Solutions $ 183,360 $ 203,326 $ 684,517 $ 847,580

Networked 250,233 344,123 1,148,698 1,322,382 Solutions

Outcomes 17,800 9,152 55,958 50,433

Total Company $ 451,393 $ 556,601 $ 1,889,173 $ 2,220,395



Service Revenues

Device Solutions $ 3,063 $ 2,728 $ 9,478 $ 11,301

Networked 27,185 24,567 100,704 94,872 Solutions

Outcomes 43,516 44,487 173,995 175,902

Total Company $ 73,764 $ 71,782 $ 284,177 $ 282,075



Total revenues

Device Solutions $ 186,423 $ 206,054 $ 693,995 $ 858,881

Networked 277,418 368,690 1,249,402 1,417,254 Solutions

Outcomes 61,316 53,639 229,953 226,335

Total Company $ 525,157 $ 628,383 $ 2,173,350 $ 2,502,470



Gross profit

Device Solutions $ 22,016 $ 30,111 $ 86,859 $ 152,562

Networked 100,538 130,032 432,906 518,749 Solutions

Outcomes 26,279 17,295 82,402 81,008

Total Company $ 148,833 $ 177,438 $ 602,167 $ 752,319



Operating income (loss)

Device Solutions $ 12,674 $ 16,036 $ 40,769 $ 97,753

Networked 70,633 98,331 308,099 397,325 Solutions

Outcomes 18,151 8,183 47,619 43,803

Corporate (68,856 ) (93,687 ) (406,882 ) (406,198 ) unallocated

Total Company $ 32,602 $ 28,863 $ (10,395 ) $ 132,683





ITRON, INC.

CONSOLIDATED BALANCE SHEETS



(Unaudited, in thousands)

December 31, December 31, 2020 2019

ASSETS

Current assets

Cash and cash equivalents $ 206,933 $ 149,904

Accounts receivable, net 369,828 472,925

Inventories 182,377 227,896

Other current assets 171,124 146,526

Total current assets 930,262 997,251



Property, plant, and equipment, net 207,816 233,228

Deferred tax assets, net 76,142 63,899

Other long-term assets 51,656 44,686

Operating lease right-of-use assets, net 76,276 79,773

Intangible assets, net 132,955 185,097

Goodwill 1,131,916 1,103,907

Total assets $ 2,607,023 $ 2,707,841



LIABILITIES AND EQUITY

Current liabilities

Accounts payable $ 215,639 $ 328,128

Other current liabilities 72,591 63,785

Wages and benefits payable 86,249 119,220

Taxes payable 15,804 22,193

Current portion of debt 18,359 -

Current portion of warranty 28,329 38,509

Unearned revenue 112,928 99,556

Total current liabilities 549,899 671,391



Long-term debt, net 902,577 932,482

Long-term warranty 13,061 14,732

Pension benefit obligation 119,457 98,712

Deferred tax liabilities, net 1,921 1,809

Operating lease liabilities 66,823 68,919

Other long-term obligations 113,012 118,981

Total liabilities 1,766,750 1,907,026



Equity

Common stock 1,389,419 1,357,600

Accumulated other comprehensive loss, (138,526 ) (204,672 ) net

Accumulated deficit (434,345 ) (376,390 )

Total Itron, Inc. shareholders' 816,548 776,538 equity

Noncontrolling interests 23,725 24,277

Total equity 840,273 800,815

Total liabilities and equity $ 2,607,023 $ 2,707,841

ITRON, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS



(Unaudited, in thousands) Year Ended December 31,

2020 2019

Operating activities

Net income (loss) $ (56,877 ) $ 52,415

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization of intangible 97,290 114,400 assets

Non-cash operating lease expense 18,178 18,958

Stock-based compensation 25,053 26,960

Amortization of prepaid debt fees 4,130 5,631

Deferred taxes, net (12,939 ) (192 )

Loss on sale of business 59,817 -

Restructuring, non-cash 5,888 (1,785 )

Other adjustments, net 10,392 (4,295 )

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable 108,256 (39,467 )

Inventories 35,403 (9,389 )

Other current assets (11,832 ) (31,128 )

Other long-term assets (11,391 ) 7,053

Accounts payable, other current liabilities, (111,724 ) 9,177 and taxes payable

Wages and benefits payable (34,664 ) 30,835

Unearned revenue 8,212 8,905

Warranty (13,538 ) (6,637 )

Other operating, net (10,140 ) (8,601 )

Net cash provided by operating activities 109,514 172,840



Investing activities

Net proceeds related to the sale of business 1,133 -

Acquisitions of property, plant, and equipment (46,208 ) (60,749 )

Other investing, net 4,039 12,569

Net cash used in investing activities (41,036 ) (48,180 )



Financing activities

Proceeds from borrowings 400,000 50,000

Payments on debt (414,063 ) (137,657 )

Issuance of common stock 8,886 24,390

Repurchase of common stock - (25,000 )

Prepaid debt fees (1,571 ) (1,560 )

Other financing, net (4,828 ) (7,692 )

Net cash used in financing activities (11,576 ) (97,519 )



Effect of foreign exchange rate changes on cash, 127 435 cash equivalents, and restricted cash

Increase in cash, cash equivalents, and 57,029 27,576 restricted cash

Cash, cash equivalents, and restricted cash at 149,904 122,328 beginning of period

Cash, cash equivalents, and restricted cash at $ 206,933 $ 149,904 end of period

About Non-GAAP Financial Measures

The accompanying press release contains non-GAAP financial measures. To supplement our consolidated financial statements, which are prepared in accordance with GAAP, we use certain non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted EPS, adjusted EBITDA, free cash flow, and constant currency. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and other companies may define such measures differently. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures".

We use these non-GAAP financial measures for financial and operational decision making and/or as a means for determining executive compensation. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and ability to service debt by excluding certain expenses that may not be indicative of our recurring core operating results. These non-GAAP financial measures facilitate management's internal comparisons to our historical performance, as well as comparisons to our competitors' operating results. Our executive compensation plans exclude non-cash charges related to amortization of intangibles and certain discrete cash and non-cash charges, such as acquisition and integration related expenses, loss on sale of business, or restructuring charges. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. We believe these non-GAAP financial measures are useful to investors because they provide greater transparency with respect to key metrics used by management in its financial and operational decision making and because they are used by our institutional investors and the analyst community to analyze the health of our business.

Non-GAAP operating expenses and non-GAAP operating income - We define non-GAAP operating expenses as operating expenses excluding certain expenses related to the amortization of intangible assets, restructuring, loss on sale of business, corporate transition cost, and acquisition and integration. We define non-GAAP operating income as operating income excluding the expenses related to the amortization of intangible assets, restructuring, loss on sale of business, corporate transition cost, and acquisition and integration. Acquisition and integration related expenses include costs, which are incurred to affect and integrate business combinations, such as professional fees, certain employee retention and salaries related to integration, severances, contract terminations, travel costs related to knowledge transfer, system conversion costs, and asset impairment charges. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the effect of expenses that are related to acquisitions and restructuring projects. By excluding these expenses, we believe that it is easier for management and investors to compare our financial results over multiple periods and analyze trends in our operations. For example, in certain periods, expenses related to amortization of intangible assets may decrease, which would improve GAAP operating margins, yet the improvement in GAAP operating margins due to this lower expense is not necessarily reflective of an improvement in our core business. There are some limitations related to the use of non-GAAP operating expenses and non-GAAP operating income versus operating expenses and operating income calculated in accordance with GAAP. We compensate for these limitations by providing specific information about the GAAP amounts excluded from non-GAAP operating expense and non-GAAP operating income and evaluating non-GAAP operating expense and non-GAAP operating income together with GAAP operating expense and operating income.

Non-GAAP net income and non-GAAP diluted EPS - We define non-GAAP net income as net income attributable to Itron, Inc. excluding the expenses associated with amortization of intangible assets, amortization of debt placement fees, restructuring, loss on sale of business, corporate transition cost, acquisition and integration, and the tax effect of excluding these expenses. We define non-GAAP diluted EPS as non-GAAP net income divided by the weighted average shares, on a diluted basis, outstanding during each period. We consider these financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income. The same limitations described above regarding our use of non-GAAP operating income apply to our use of non-GAAP net income and non-GAAP diluted EPS. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP measures and evaluating non-GAAP net income and non-GAAP diluted EPS together with GAAP net income attributable to Itron, Inc. and GAAP diluted EPS.

Adjusted EBITDA - We define adjusted EBITDA as net income (a) minus interest income, (b) plus interest expense, depreciation and amortization of intangible assets, restructuring, loss on sale of business, corporate transition cost, acquisition and integration related expense, and (c) excluding income tax provision or benefit. Management uses adjusted EBITDA as a performance measure for executive compensation. A limitation to using adjusted EBITDA is that it does not represent the total increase or decrease in the cash balance for the period and the measure includes some non-cash items and excludes other non-cash items. Additionally, the items that we exclude in our calculation of adjusted EBITDA may differ from the items that our peer companies exclude when they report their results. We compensate for these limitations by providing a reconciliation of this measure to GAAP net income (loss).

Free cash flow - We define free cash flow as net cash provided by operating activities less cash used for acquisitions of property, plant and equipment. We believe free cash flow provides investors with a relevant measure of liquidity and a useful basis for assessing our ability to fund our operations and repay our debt. The same limitations described above regarding our use of adjusted EBITDA apply to our use of free cash flow. We compensate for these limitations by providing specific information regarding the GAAP amounts and reconciling to free cash flow.

Constant currency - We refer to the impact of foreign currency exchange rate fluctuations in our discussions of financial results, which references the differences between the foreign currency exchange rates used to translate operating results from the entity's functional currency into U.S. dollars for financial reporting purposes. We also use the term "constant currency", which represents financial results adjusted to exclude changes in foreign currency exchange rates as compared with the rates in the comparable prior year period. We calculate the constant currency change as the difference between the current period results and the comparable prior period's results restated using current period foreign currency exchange rates.

The accompanying tables have more detail on the GAAP financial measures that are most directly comparable to the non-GAAP financial measures and the related reconciliations between these financial measures.

ITRON, INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES



(Unaudited, inthousands, except per share data)



TOTAL COMPANY Three Months Ended December Twelve Months EndedRECONCILIATIONS 31, December 31,

2020 2019 2020 2019

NON-GAAP OPERATING EXPENSES

GAAP operating $ 116,231 $ 148,575 $ 612,562 $ 619,636 expenses

Amortization of intangible (11,223 ) (16,101 ) (44,711 ) (64,286 ) assets

Restructuring 4,518 1,407 (37,013 ) (6,278 )

Loss on sale of (2,522 ) - (59,817 ) - business

Corporate - (907 ) 33 (2,520 ) transition cost

Acquisition and integration (1,764 ) (2,005 ) (1,026 ) (26,598 ) related expense

Non-GAAP operating $ 105,240 $ 130,969 $ 470,028 $ 519,954 expenses



NON-GAAP OPERATING INCOME

GAAP operating $ 32,602 $ 28,863 $ (10,395 ) $ 132,683 income (loss)

Amortization of intangible 11,223 16,101 44,711 64,286 assets

Restructuring (4,518 ) (1,407 ) 37,013 6,278

Loss on sale of 2,522 - 59,817 - business

Corporate - 907 (33 ) 2,520 transition cost

Acquisition and integration 1,764 2,005 1,026 26,598 related expense

Non-GAAP $ 43,593 $ 46,469 $ 132,139 $ 232,365 operating income



NON-GAAP NET INCOME & DILUTED EPS

GAAP net income (loss) $ 21,520 $ 14,620 $ (57,955 ) $ 49,006 attributable to Itron, Inc.

Amortization of intangible 11,223 16,101 44,711 64,286 assets

Amortization of debt placement 1,056 1,900 3,954 5,455 fees

Restructuring (4,518 ) (1,407 ) 37,013 6,278

Loss on sale of 2,522 - 59,817 - business

Corporate - 907 (33 ) 2,520 transition cost

Acquisition and integration 1,764 2,005 1,026 26,598 related expense

Income tax effect of (7,243 ) (5,217 ) (13,280 ) (21,348 ) non-GAAP adjustments

Non-GAAP net income $ 26,324 $ 28,909 $ 75,253 $ 132,795 attributable to Itron, Inc.



Non-GAAP diluted $ 0.65 $ 0.72 $ 1.85 $ 3.32 EPS



Weighted average common shares 40,762 40,267 40,571 39,980 outstanding - Diluted



ADJUSTED EBITDA

GAAP net income (loss) $ 21,520 $ 14,620 $ (57,955 ) $ 49,006 attributable to Itron, Inc.

Interest income (833 ) (470 ) (2,998 ) (1,849 )

Interest 10,230 12,554 44,001 52,453 expense

Income tax (benefit) (128 ) (75 ) 238 20,617 provision

Depreciation and 24,984 28,709 97,290 114,400 amortization

Restructuring (4,518 ) (1,407 ) 37,013 6,278

Loss on sale of 2,522 - 59,817 - business

Corporate - 907 (33 ) 2,520 transition cost

Acquisition and integration 1,764 2,005 1,026 26,598 related expense

Adjusted EBITDA $ 55,541 $ 56,843 $ 178,399 $ 270,023



FREE CASH FLOW

Net cash provided by $ 38,943 $ 44,740 $ 109,514 $ 172,840 operating activities

Acquisitions of property, (9,911 ) (16,179 ) (46,208 ) (60,749 ) plant, and equipment

Free Cash Flow $ 29,032 $ 28,561 $ 63,306 $ 112,091

View source version on businesswire.com: https://www.businesswire.com/news/home/20210224005226/en/

CONTACT: Itron, Inc. Kenneth P. Gianella Vice President, Investor Relations (669) 770-4643

CONTACT: Rebecca Hussey Manager, Investor Relations (509) 891-3574