Itron Provides Selected First Quarter 2016 Operating Results and Business Update
Smart Meter and Module Volumes Increase 28 Percent Year-Over-Year
"Itron's preliminary first quarter results reflect continued solid
business momentum and improved operational performance across all
segments," said
Mezey continued, "We remain committed to strengthening Itron's revenue processes and to providing accurate and transparent financial information. We continue to work diligently toward completion of our revenue accounting analysis and the completion of our independent auditors' review of our analysis. While complex, this accounting review relates to the timing of software-related revenues recognized between periods, which has no impact on cash or cash earnings generation. Importantly, we have remained focused on executing against our strategic initiatives, as underscored by our strong operational performance in the quarter."
Selected First Quarter 2016 Operating Results
As a result of
-
Advanced and smart meter and module volumes increased 28 percent
compared with the first quarter of 2015, including:
- Highest volume of electric smart meters shipped in 14 quarters
- Record level of gas smart meter shipments
- Water meter and module shipments up 17 percent compared with the fourth quarter of 2015
METER AND MODULE SUMMARY | |||||||||||||||
(Units in thousands) | |||||||||||||||
Q1 2016 | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | |||||||||||
Meters | |||||||||||||||
Standard | 4,370 | 4,020 | 4,100 | 4,700 | 4,740 | ||||||||||
Advanced and Smart | 2,190 | 1,960 | 1,930 | 1,860 | 1,540 | ||||||||||
Total meters | 6,560 | 5,980 | 6,030 | 6,560 | 6,280 | ||||||||||
Stand-alone communication modules | |||||||||||||||
Advanced and Smart | 1,460 | 1,590 | 1,530 | 1,410 | 1,310 | ||||||||||
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Itron also announced that Avista has selected Itron's OpenWay Riva® IoT solution to modernize its electric and gas network inWashington state and lay the foundation for smart city applications. -
Free cash flow for the quarter of
$25 million compared with negative$13 million for the first quarter of 2015. -
Cash and cash equivalents of
$133 million atMarch 31, 2016 compared with$131 million onDec. 31, 2015 , reflecting ample liquidity and financial flexibility. -
Itron repaid$23 million in debt during the first quarter, reducing the company's total outstanding debt to$348 million atMarch 31, 2016 . -
Itron obtained waivers throughJune 15, 2016 andJuly 15, 2016 from its creditors for the late filing of the company's 2015 Form 10-K and first quarter of 2016 Form 10-Q, respectively.
Segment Business Update
-
The Electricity segment continued to benefit from favorable product
mix in
North America and a strong order pipeline. InEurope ,Itron has increased Linky meter production to maximum capacity for the company's smart meter project with Électricité Réseau DistributionFrance , andItron France recently delivered its 500,000th Linky smart meter. -
The Gas segment also benefited from strong volume and mix in
North America as well as higher smart meter shipments to select European customers. The sales pipeline particularly inNorth America continues to be robust. -
The Water segment results improved significantly compared with the
first quarter of 2015, driven by strong performance in the
North America ,Europe /Middle East /Africa andAsia Pacific regions, lower warranty costs and favorable brass pricing. The sales pipeline reflects continued deployment of smart water projects globally. -
The company remains focused on enhancing operational processes,
including its manufacturing and supply chain strategy, R&D efficiency
and exiting non-core businesses.
Itron is on track to fully realize$40 million of annual savings in 2017 resulting from its restructuring plan previously announced inNov. 2014 .
Financial Outlook - Full Year 2016
The company believes that its core operational results are on track with
prior financial guidance for fiscal year 2016. Consistent with company
practices,
Ongoing Accounting Review of Revenue Recognition from Software Contracts
As previously announced,
Due to the ongoing accounting review, the company will not be able to
file its report on Form 10-Q for the first quarter ended
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
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