Itron Files 2015 Annual Report on Form 10-K
As previously announced,
"We are pleased to have concluded the review of our revenue recognition
accounting and to have filed our Form 10-K for 2015," said
The Form 10-K for the fiscal year ended
Impact of Revisions to Previously Reported Preliminary 2015 Results
The revisions had the following effect compared with the Company's
preliminary 2015 GAAP results previously reported on
-
Revenue and gross profit. Total revenues and cost of revenues
increased
$5.7 million and$8.2 million , respectively. Gross profit decreased$2.4 million , with no material impact on gross margin percentage. The changes are primarily due to the Company's revised revenue recognition for certain contracts that resulted in the deferral of revenues and costs from prior periods into 2015 and adjustments to warranty estimates. -
Operating expenses and pre-tax income. Operating expenses
increased
$16.9 million related primarily to revisions in the accounting estimates of provision for legal, bad debts and the restructuring accrual. Total pre-tax income was reduced$19.3 million to$37.1 million . -
Income tax impact. The income tax provision decreased
$7.2 million related primarily to lower pre-tax income. -
Net income and EPS impact. Net income attributable to
Itron decreased$12.1 million to$12.7 million , and GAAP diluted EPS decreased31 cents to33 cents . Non-GAAP diluted EPS decreased28 cents to73 cents . - No impact to cash and cash equivalents. The revisions did not impact the Company's free cash flow or its cash and cash equivalents balances for any of the affected periods.
Update on First Quarter 2016 Form 10-Q and Filing Extensions
On
The Company continues to finalize adjustments to its revenue recognition
accounting for certain software and maintenance contracts and complete
its financial statements for the first quarter of 2016.
As previously announced, the Company engaged
About
Itron® is a registered trademark of
Forward-Looking Statements
This release contains forward-looking statements concerning our
expectations about operations, financial performance, sales, earnings
and cash flows. These statements reflect our current plans and
expectations and are based on information currently available. The
statements rely on a number of assumptions and estimates, which could be
inaccurate, and which are subject to risks and uncertainties that could
cause our actual results to vary materially from those anticipated.
Risks and uncertainties include the timing and ability to regain
compliance with the reporting obligations of the
Non-GAAP Financial Information
To supplement our consolidated financial statements presented 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 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. Specifically, these non-GAAP financial measures are provided to enhance investors' overall understanding of our current financial performance and our future anticipated performance by excluding infrequent or non-cash costs, particularly those associated with acquisitions. We exclude certain costs in our non-GAAP financial measures as we believe the net result is a measure of our core business. Non-GAAP performance measures should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP. 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.
Statements of operations, segment information, balance sheets, cash flow statements and reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures follow.
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Comparison of Key 2015 Financial Metrics | ||||||||||
to Preliminary Results Announced |
||||||||||
(Unaudited, in thousands, except per share data) | ||||||||||
(announced |
||||||||||
Preliminary FY |
Final 2015 | |||||||||
Revenues | $ | 1,877,813 | $ | 1,883,533 | ||||||
Cost of revenues | 1,318,695 | 1,326,848 | ||||||||
Gross profit | 559,118 | 556,685 | ||||||||
Gross margin % | 29.8 | % | 29.6 | % | ||||||
Total operating expenses | 486,973 | 503,839 | ||||||||
Operating income (loss) | 72,145 | 52,846 | ||||||||
Total other income (expense) | (15,744 | ) | (15,744 | ) | ||||||
Income (loss) before income taxes | 56,401 | 37,102 | ||||||||
Income tax benefit (provision) | (29,310 | ) | (22,099 | ) | ||||||
Net income (loss) | 27,091 | 15,003 | ||||||||
Net income attributable to non-controlling interests | 2,325 | 2,325 | ||||||||
Net income (loss) attributable to |
$ | 24,766 | $ | 12,678 | ||||||
Weighted average common shares outstanding - Diluted | 38,506 | 38,506 | ||||||||
GAAP Earnings per share - Diluted | $ | 0.64 | $ | 0.33 | ||||||
Non-GAAP earnings per share - Diluted | $ | 1.01 | $ | 0.73 | ||||||
Other metrics: (in millions) |
||||||||||
Total Assets | $ | 1,645 | $ | 1,681 | ||||||
Total Liabilities | $ | 996 | $ | 1,059 | ||||||
Cash and cash equivalents | $ | 131 | $ | 131 | ||||||
Free Cash Flow | $ | 29 | $ | 29 | ||||||
Backlog | $ | 1,550 | $ | 1,575 | ||||||
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CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited, in thousands, except per share data) | |||||||||||||||
Year Ended |
|||||||||||||||
2015 | 2014 | 2013 | |||||||||||||
Revenues | $ | 1,883,533 | $ | 1,947,616 | $ | 1,938,025 | |||||||||
Cost of revenues | 1,326,848 | 1,333,566 | 1,323,257 | ||||||||||||
Gross profit | 556,685 | 614,050 | 614,768 | ||||||||||||
Operating expenses | |||||||||||||||
Sales and marketing | 161,380 | 182,503 | 182,687 | ||||||||||||
Product development | 162,334 | 175,500 | 175,420 | ||||||||||||
General and administrative | 155,715 | 162,466 | 143,932 | ||||||||||||
Amortization of intangible assets | 31,673 | 43,619 | 42,019 | ||||||||||||
Restructuring | (7,263 | ) | 49,482 | 36,347 | |||||||||||
|
- | - | 174,226 | ||||||||||||
Total operating expenses | 503,839 | 613,570 | 754,631 | ||||||||||||
Operating income (loss) | 52,846 | 480 | (139,863 | ) | |||||||||||
Other income (expense) | |||||||||||||||
Interest income | 761 | 494 | 1,152 | ||||||||||||
Interest expense | (12,289 | ) | (11,602 | ) | (10,686 | ) | |||||||||
Other income (expense), net | (4,216 | ) | (7,637 | ) | (4,003 | ) | |||||||||
Total other income (expense) | (15,744 | ) | (18,745 | ) | (13,537 | ) | |||||||||
Income (loss) before income taxes | 37,102 | (18,265 | ) | (153,400 | ) | ||||||||||
Income tax benefit (provision) | (22,099 | ) | (4,035 | ) | 2,466 | ||||||||||
Net income (loss) | 15,003 | (22,300 | ) | (150,934 | ) | ||||||||||
Net income attributable to non-controlling interests | 2,325 | 1,370 | 2,219 | ||||||||||||
Net income (loss) attributable to |
$ | 12,678 | $ | (23,670 | ) | $ | (153,153 | ) | |||||||
Earnings (loss) per common share - Basic | $ | 0.33 | $ | (0.60 | ) | $ | (3.90 | ) | |||||||
Earnings (loss) per common share - Diluted | $ | 0.33 | $ | (0.60 | ) | $ | (3.90 | ) | |||||||
Weighted average common shares outstanding - Basic | 38,224 | 39,184 | 39,281 | ||||||||||||
Weighted average common shares outstanding - Diluted | 38,506 | 39,184 | 39,281 | ||||||||||||
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SEGMENT INFORMATION | |||||||||||||||
(Unaudited, in thousands) | |||||||||||||||
Year Ended |
|||||||||||||||
2015 | 2014 | 2013 | |||||||||||||
Revenues | |||||||||||||||
Electricity | $ | 820,306 | $ | 771,857 | $ | 825,391 | |||||||||
Gas | 543,805 | 599,091 | 570,450 | ||||||||||||
Water | 519,422 | 576,668 | 542,184 | ||||||||||||
|
$ | 1,883,533 | $ | 1,947,616 | $ | 1,938,025 | |||||||||
Gross profit | |||||||||||||||
Electricity | $ | 225,446 | $ | 200,249 | $ | 219,852 | |||||||||
Gas | 185,559 | 211,623 | 207,577 | ||||||||||||
Water | 145,680 | 202,178 | 187,339 | ||||||||||||
|
$ | 556,685 | $ | 614,050 | $ | 614,768 | |||||||||
Operating income (loss) | |||||||||||||||
Electricity | $ | 31,104 | $ | (77,751 | ) | $ | (237,279 | ) | |||||||
Gas | 67,471 | 76,101 | 82,176 | ||||||||||||
Water | 19,864 | 71,356 | 62,015 | ||||||||||||
Corporate unallocated | (65,593 | ) | (69,226 | ) | (46,775 | ) | |||||||||
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$ | 52,846 | $ | 480 | $ | (139,863 | ) | ||||||||
METER AND MODULE SUMMARY | |||||||||||||||
(Units in thousands) | |||||||||||||||
Year Ended |
|||||||||||||||
2015 | 2014 | 2013 | |||||||||||||
Meters | |||||||||||||||
Standard | 17,560 | 18,740 | 17,850 | ||||||||||||
Advanced and smart | 7,290 | 6,090 | 5,930 | ||||||||||||
Total meters | 24,850 | 24,830 | 23,780 | ||||||||||||
Stand-alone communication modules | |||||||||||||||
Advanced and smart | 5,840 | 5,770 | 5,550 | ||||||||||||
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CONSOLIDATED BALANCE SHEETS | ||||||||||
(Unaudited, in thousands) | ||||||||||
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ASSETS | ||||||||||
Current assets | ||||||||||
Cash and cash equivalents | $ | 131,018 | $ | 112,371 | ||||||
Accounts receivable, net | 330,895 | 346,547 | ||||||||
Inventories | 190,465 | 154,221 | ||||||||
Deferred tax assets current, net | - | 45,504 | ||||||||
Other current assets | 106,562 | 123,819 | ||||||||
Total current assets | 758,940 | 782,462 | ||||||||
Property, plant, and equipment, net | 190,256 | 207,152 | ||||||||
Deferred tax assets noncurrent, net | 109,387 | 74,439 | ||||||||
Other long-term assets | 52,726 | 46,965 | ||||||||
Intangible assets, net | 101,932 | 139,909 | ||||||||
|
468,122 | 500,820 | ||||||||
Total assets | $ | 1,681,363 | $ | 1,751,747 | ||||||
LIABILITIES AND EQUITY | ||||||||||
Current liabilities | ||||||||||
Accounts payable | $ | 185,827 | $ | 183,831 | ||||||
Other current liabilities | 78,630 | 101,315 | ||||||||
Wages and benefits payable | 76,980 | 94,818 | ||||||||
Taxes payable | 14,859 | 21,951 | ||||||||
Current portion of debt | 11,250 | 30,000 | ||||||||
Current portion of warranty | 36,927 | 21,145 | ||||||||
Unearned revenue | 73,301 | 67,009 | ||||||||
Total current liabilities | 477,774 | 520,069 | ||||||||
Long-term debt | 359,962 | 293,969 | ||||||||
Long-term warranty | 17,585 | 15,403 | ||||||||
Pension plan benefit liability | 85,971 | 101,862 | ||||||||
Deferred tax liabilities noncurrent, net | 1,723 | 3,808 | ||||||||
Other long-term obligations | 115,645 | 118,094 | ||||||||
Total liabilities | 1,058,660 | 1,053,205 | ||||||||
Equity | ||||||||||
Preferred stock | - | - | ||||||||
Common stock | 1,246,671 | 1,270,045 | ||||||||
Accumulated other comprehensive loss, net | (200,607 | ) | (135,060 | ) | ||||||
Accumulated deficit | (441,306 | ) | (453,984 | ) | ||||||
Total |
604,758 | 681,001 | ||||||||
Non-controlling interests | 17,945 | 17,541 | ||||||||
Total equity | 622,703 | 698,542 | ||||||||
Total liabilities and equity | $ | 1,681,363 | $ | 1,751,747 | ||||||
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CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(Unaudited, in thousands) | |||||||||||||||
Year Ended |
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2015 | 2014 | 2013 | |||||||||||||
Operating activities | |||||||||||||||
Net income (loss) | $ | 15,003 | $ | (22,300 | ) | $ | (150,934 | ) | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 75,993 | 98,139 | 99,246 | ||||||||||||
Stock-based compensation | 14,089 | 17,860 | 18,850 | ||||||||||||
Amortization of prepaid debt fees | 2,128 | 1,612 | 1,657 | ||||||||||||
Deferred taxes, net | 1,488 | (34,757 | ) | (25,308 | ) | ||||||||||
|
- | - | 174,226 | ||||||||||||
Restructuring, non-cash | 976 | 5,172 | 1,259 | ||||||||||||
Other adjustments, net | 2,003 | 914 | 551 | ||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable | (9,009 | ) | (15,119 | ) | 11,732 | ||||||||||
Inventories | (52,737 | ) | 7,208 | (12,391 | ) | ||||||||||
Other current assets | 12,512 | (10,947 | ) | (9,950 | ) | ||||||||||
Other long-term assets | (3,721 | ) | (12,540 | ) | (2,298 | ) | |||||||||
Accounts payable, other current liabilities, and taxes payable | (7,060 | ) | 56,158 | (4,466 | ) | ||||||||||
Wages and benefits payable | (10,866 | ) | 7,502 | (1,822 | ) | ||||||||||
Unearned revenue | 11,943 | 30,584 | 8,744 | ||||||||||||
Warranty | 20,161 | (7,297 | ) | (6,546 | ) | ||||||||||
Other operating, net | 447 | 10,784 | 2,871 | ||||||||||||
Net cash provided by operating activities | 73,350 | 132,973 | 105,421 | ||||||||||||
Investing activities | |||||||||||||||
Acquisitions of property, plant, and equipment | (43,918 | ) | (44,495 | ) | (60,020 | ) | |||||||||
Business acquisitions, net of cash equivalents acquired | (5,754 | ) | - | (860 | ) | ||||||||||
Other investing, net | 721 | 2,999 | 4,109 | ||||||||||||
Net cash used in investing activities | (48,951 | ) | (41,496 | ) | (56,771 | ) | |||||||||
Financing activities | |||||||||||||||
Proceeds from borrowings | 113,467 | 47,657 | 35,000 | ||||||||||||
Payments on debt | (62,998 | ) | (102,438 | ) | (73,750 | ) | |||||||||
Issuance of common stock | 2,663 | 3,647 | 5,299 | ||||||||||||
Repurchase of common stock | (38,283 | ) | (39,665 | ) | (26,977 | ) | |||||||||
Other financing, net | (7,109 | ) | (1,078 | ) | 2,990 | ||||||||||
Net cash provided by (used in) financing activities | 7,740 | (91,877 | ) | (57,438 | ) | ||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | (13,492 | ) | (12,034 | ) | (2,818 | ) | |||||||||
Increase (decrease) in cash and cash equivalents | 18,647 | (12,434 | ) | (11,606 | ) | ||||||||||
Cash and cash equivalents at beginning of period | 112,371 | 124,805 | 136,411 | ||||||||||||
Cash and cash equivalents at end of period | $ | 131,018 | $ | 112,371 | $ | 124,805 | |||||||||
About Non-GAAP Financial Measures
The accompanying press release contains non-GAAP financial measures. To supplement our consolidated financial statements, which are prepared and presented 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 and free cash flow. 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. For more information on these non-GAAP financial measures please see the table captioned "Reconciliations of Non-GAAP Financial Measures to Most Directly Comparable GAAP Financial Measures."
We use these non-GAAP financial measures for financial and operational decision making and 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 acquired through a business acquisition and non-recurring discrete cash and non-cash charges that are infrequent in nature such as purchase accounting adjustments, restructuring charges or goodwill impairment 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 expense and non-GAAP operating income - We define non-GAAP operating expense as operating expense excluding certain expenses related to the amortization of intangible assets acquired through a business acquisition, restructuring, acquisitions and goodwill impairment. We define non-GAAP operating income as operating income excluding the expenses related to the amortization of intangible assets acquired through a business acquisition, restructuring, acquisitions and goodwill impairment. 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 previous acquisitions and restructurings. 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 expense and non-GAAP operating income versus operating expense and operating income calculated in accordance with GAAP. Non-GAAP operating expense and non-GAAP operating income exclude some costs that are recurring. Additionally, the expenses that we exclude in our calculation of non-GAAP operating expense and non-GAAP operating income may differ from the expenses that our peer companies exclude when they report the results of their operations. We compensate for these limitations by providing specific information about the GAAP amounts we have excluded from our 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 GAAP operating income.
Non-GAAP net income and non-GAAP diluted EPS - We define non-GAAP net income as net income excluding the expenses associated with amortization of intangible assets acquired through a business acquisition, restructuring, acquisitions, goodwill impairment and amortization of debt placement fees. 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 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 business acquisition related intangible asset expenses, restructuring expense, acquisition related expense, goodwill impairment and (c) exclude the tax expense or benefit. We believe that providing this financial measure is important for management and investors to understand our ability to service our debt as it is a measure of the cash generated by our core business. 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.
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.
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.
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||
TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES | |||||||||||||||
(Unaudited; in thousands, except per share data) | |||||||||||||||
TOTAL COMPANY RECONCILIATIONS |
Year Ended |
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2015 | 2014 | 2013 | |||||||||||||
NON-GAAP NET INCOME & DILUTED EPS | |||||||||||||||
GAAP net income (loss) | $ | 12,678 | $ | (23,670 | ) | $ | (153,153 | ) | |||||||
Amortization of intangible assets | 31,673 | 43,619 | 42,019 | ||||||||||||
Amortization of debt placement fees | 2,021 | 1,512 | 1,556 | ||||||||||||
Restructuring | (7,263 | ) | 49,482 | 36,347 | |||||||||||
Acquisition-related expense (recovery) | (5,538 | ) | 15,538 | 2,290 | |||||||||||
|
- | - | 174,226 | ||||||||||||
Income tax effect of non-GAAP adjustments | (5,590 | ) | (25,860 | ) | (32,970 | ) | |||||||||
Non-GAAP net income | $ | 27,981 | $ | 60,621 | $ | 70,315 | |||||||||
Non-GAAP diluted EPS | $ | 0.73 | $ | 1.54 | $ | 1.78 | |||||||||
Weighted average common shares outstanding - Diluted | 38,506 | 39,461 | 39,602 | ||||||||||||
ADJUSTED EBITDA | |||||||||||||||
GAAP net income | $ | 12,678 | $ | (23,670 | ) | $ | (153,153 | ) | |||||||
Interest income | (761 | ) | (494 | ) | (1,152 | ) | |||||||||
Interest expense | 12,289 | 11,602 | 10,686 | ||||||||||||
Income tax provision | 22,099 | 4,035 | (2,466 | ) | |||||||||||
Depreciation and amortization | 75,993 | 98,139 | 99,246 | ||||||||||||
Restructuring | (7,263 | ) | 49,482 | 36,347 | |||||||||||
Acquisition related expenses | (5,538 | ) | 15,538 | 2,290 | |||||||||||
|
- | - | 174,226 | ||||||||||||
Adjusted EBITDA | $ | 109,497 | $ | 154,632 | $ | 166,024 | |||||||||
FREE CASH FLOW | |||||||||||||||
Net cash provided by operating activities | $ | 73,350 | $ | 132,973 | $ | 105,421 | |||||||||
Acquisitions of property, plant, and equipment | (43,918 | ) | (44,495 | ) | (60,020 | ) | |||||||||
Free Cash Flow | $ | 29,432 | $ | 88,478 | $ | 45,401 | |||||||||
NON-GAAP OPERATING INCOME | |||||||||||||||
GAAP operating income (loss) | $ | 52,846 | $ | 480 | $ | (139,863 | ) | ||||||||
Amortization of intangible assets | 31,673 | 43,619 | 42,019 | ||||||||||||
Restructuring | (7,263 | ) | 49,482 | 36,347 | |||||||||||
Acquisition-related expense (recovery) | (5,538 | ) | 15,538 | 2,290 | |||||||||||
|
- | - | 174,226 | ||||||||||||
Non-GAAP operating income | $ | 71,718 | $ | 109,119 | $ | 115,019 | |||||||||
NON-GAAP OPERATING EXPENSES | |||||||||||||||
GAAP operating expenses | $ | 503,839 | $ | 613,570 | $ | 754,631 | |||||||||
Amortization of intangible assets | (31,673 | ) | (43,619 | ) | (42,019 | ) | |||||||||
Restructuring | 7,263 | (49,482 | ) | (36,347 | ) | ||||||||||
Acquisition-related recovery (expense) | 5,538 | (15,538 | ) | (2,290 | ) | ||||||||||
|
- | - | (174,226 | ) | |||||||||||
Non-GAAP operating expenses | $ | 484,967 | $ | 504,931 | $ | 499,749 | |||||||||
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||
TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES | |||||||||||||||
(Unaudited; in thousands) | |||||||||||||||
SEGMENT RECONCILIATIONS |
Year Ended |
||||||||||||||
2015 | 2014 | 2013 | |||||||||||||
NON-GAAP OPERATING INCOME - ELECTRICITY | |||||||||||||||
Electricity - GAAP operating income (loss) | $ | 31,104 | $ | (77,751 | ) | $ | (237,279 | ) | |||||||
Amortization of intangible assets | 17,663 | 24,452 | 18,835 | ||||||||||||
Restructuring | (7,253 | ) | 20,430 | 25,172 | |||||||||||
Acquisition-related expense (recovery) | (5,655 | ) | 15,491 | 2,287 | |||||||||||
|
- | - | 174,226 | ||||||||||||
Electricity - Non-GAAP operating income (loss) | $ | 35,859 | $ | (17,378 | ) | $ | (16,759 | ) | |||||||
NON-GAAP OPERATING INCOME - GAS | |||||||||||||||
Gas - GAAP operating income | $ | 67,471 | $ | 76,101 | $ | 82,176 | |||||||||
Amortization of intangible assets | 7,787 | 10,471 | 12,264 | ||||||||||||
Restructuring | (287 | ) | 9,149 | 4,299 | |||||||||||
Gas - Non-GAAP operating income | $ | 74,971 | $ | 95,721 | $ | 98,739 | |||||||||
NON-GAAP OPERATING INCOME - WATER | |||||||||||||||
Water - GAAP operating income | $ | 19,864 | $ | 71,356 | $ | 62,015 | |||||||||
Amortization of intangible assets | 6,223 | 8,696 | 10,920 | ||||||||||||
Restructuring | 778 | 2,335 | 3,075 | ||||||||||||
Acquisition-related expense | 104 | - | - | ||||||||||||
Water - Non-GAAP operating income | $ | 26,969 | $ | 82,387 | $ | 76,010 | |||||||||
NON-GAAP OPERATING INCOME - CORPORATE UNALLOCATED | |||||||||||||||
Corporate unallocated - GAAP operating loss | $ | (65,593 | ) | $ | (69,226 | ) | $ | (46,775 | ) | ||||||
Restructuring | (501 | ) | 17,568 | 3,801 | |||||||||||
Acquisition-related expense | 13 | 47 | 3 | ||||||||||||
Corporate unallocated - Non-GAAP operating loss | $ | (66,081 | ) | $ | (51,611 | ) | $ | (42,971 | ) | ||||||
|
|||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||
TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES | |||||
(Unaudited; in thousands) | |||||
(announced |
|||||
TOTAL COMPANY RECONCILIATIONS | Preliminary FY 2015 | ||||
NON-GAAP NET INCOME & DILUTED EPS | |||||
GAAP net income (loss) | $ | 24,766 | |||
Amortization of intangible assets | 31,673 | ||||
Amortization of debt placement fees | 2,021 | ||||
Restructuring | (8,726 | ) | |||
Acquisition-related expense (recovery) | (5,538 | ) | |||
|
- | ||||
Income tax effect of non-GAAP adjustments(1) | (5,234 | ) | |||
Non-GAAP net income | $ | 38,962 | |||
Non-GAAP diluted EPS | $ | 1.01 | |||
Weighted average common shares outstanding - Diluted | 38,506 | ||||
FREE CASH FLOW | |||||
Net cash provided by operating activities | $ | 73,350 | |||
Acquisitions of property, plant, and equipment | (43,918 | ) | |||
Free Cash Flow | $ | 29,432 |
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