• Itron Announces Third Quarter 2024 Financial Results

    Source: Nasdaq GlobeNewswire / 31 Oct 2024 07:30:00   America/Chicago

    LIBERTY LAKE, Wash., Oct. 31, 2024 (GLOBE NEWSWIRE) -- Itron, Inc. (NASDAQ: ITRI), which is innovating the way utilities and cities manage energy and water, announced today financial results for its third quarter ended September 30, 2024. Key results for the quarter include (compared with the third quarter of 2023):

    • Revenue of $615 million, increased 10%;
    • Gross profit of $210 million, increased 12%;
    • GAAP net income attributable to Itron, Inc. of $78 million, increased $38 million;
    • GAAP diluted earnings per share of $1.70, increased $0.83 per share;
    • Non-GAAP diluted EPS of $1.84, increased $0.86 per share;
    • Adjusted EBITDA of $89 million, increased 29%; and
    • Free cash flow of $59 million, increased $30 million.

    "Operational momentum continued during the third quarter and solid execution by our team led to results ahead of expectations.” said Tom Deitrich, Itron’s president and CEO. “The market, fueled by growth in energy and water demand, and increasing need to make infrastructure more agile aligns with Itron’s grid edge intelligence platform, uniquely positioning us to help our customers meet or exceed their objectives.”

    Summary of Third Quarter Consolidated Financial Results
    (All comparisons made are against the prior year period unless otherwise noted)

    Revenue
    Total third quarter revenue increased 10%, to $615 million, due to strong operational execution.

    Device Solutions revenue increased 11%, or 10% in constant currency, due primarily to growth in smart water and electric demand.

    Networked Solutions revenue increased 8%, due primarily to increased new projects and ongoing deployments.

    Outcomes revenue increased 17%, or 16% in constant currency, due primarily to an increase in recurring revenue, services, and software.

    Gross Margin
    Itron's third quarter gross margin of 34.1% increased 70 basis points from the prior year due to operational efficiencies.

    Operating Expenses and Operating Income
    GAAP operating expenses of $136 million increased $3 million from the prior year. Non-GAAP operating expenses of $131 million increased $2 million.

    GAAP operating income of $74 million was $19 million higher than the prior year and non-GAAP operating income of $79 million was $20 million higher than the prior year. Both increases were due to higher gross profit, partially offset by higher operating expenses.

    Net Income and Earnings per Share
    Net income attributable to Itron, Inc. for the quarter was $78 million, or $1.70 per diluted share, compared with net income attributable to Itron, Inc. of $40 million, or $0.87 per diluted share in 2023. The increase was driven by higher GAAP operating income and interest income, and less tax expense.

    Non-GAAP net income attributable to Itron, Inc., which excludes the expenses associated with amortization of intangible assets, amortization of debt placement fees, restructuring, loss on sale of business, strategic initiatives, acquisition and integration, and the tax effect of excluding these expenses, was $84 million, or $1.84 per diluted share, compared with $45 million, or $0.98 per diluted share, in 2023. The increase was due to higher non-GAAP operating income and interest income, and less tax expense.

    Both GAAP and Non-GAAP net income and EPS benefited from a favorable resolution of a foreign tax audit resulting in an increase in net income of approximately $14 million or $0.30 cents per diluted share.

    Cash Flow
    Net cash provided by operating activities was $65 million in the third quarter compared with $34 million in the prior year. Free cash flow was $59 million in the third quarter compared with $28 million in the prior year. The increase in free cash flow was primarily due to higher earnings.

    Other Measures

    Total backlog at quarter end was $4.0 billion compared with $4.2 billion in the prior year. Bookings in the quarter totaled $487 million. 

    Q4 2024 Outlook and Full Year 2024 Guidance Update

    Outlook for the fourth quarter of 2024 is as follows:

    • Revenue between $600 and $610 million
    • Non-GAAP diluted EPS between $1.00 and $1.10

    Itron's guidance for the full year 2024 has been updated as follows:

    • Revenue between $2.428 to $2.438 billion vs. prior guidance of $2.385 to $2.415 billion
    • Non-GAAP diluted EPS between $5.28 to $5.38 vs. prior guidance of $4.45 to $4.65

    Earnings Conference Call
    Itron will host a conference call to discuss the financial results contained in this release at 10 a.m. EDT on October 31, 2024. Interested parties may listen to the conference call on a live webcast. The webcast, along with a supplemental presentation, may be accessed from the company’s website at
    https://investors.itron.com/events-presentations. Participants should access the webcast 10 minutes prior to the start of the call. A webcast replay of the conference call will be available through November 8, 2024 and may be accessed on the company's website at https://investors.itron.com/events-presentations.

    About Itron
    Itron is a proven global leader in energy, water, smart city, IIoT and intelligent infrastructure services. For utilities, cities and society, we build innovative systems, create new efficiencies, connect communities, encourage conservation and increase resourcefulness. By safeguarding our invaluable natural resources today and tomorrow, we improve the quality of life for people around the world. Join us: www.itron.com

    Itron® 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 plans, 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 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, 2023 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.

    Non-GAAP Financial Information

    To supplement our consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States (GAAP), we use certain adjusted or non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted earnings per share (EPS), adjusted EBITDA, free cash flow, and constant currency. 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. We believe 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. When providing future outlooks and/or earnings guidance, 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 related expenses and their related tax effects without unreasonable effort. These costs are uncertain, depend on various factors and could have a material impact on GAAP results for the guidance period. 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.

    For additional information, contact:

    Itron, Inc.

    Paul Vincent
    Vice President, Investor Relations
    (512) 560-1172

    David Means
    Director, Investor Relations
    (737) 242-8448
    Investors@itron.com

    Itron, Inc.

    ITRON, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
            
    (Unaudited, in thousands, except per share data)
       Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
        2024  2023   2024  2023 
    Revenues     
     Product revenues$538,249 $480,355  $1,598,978 $1,361,482 
     Service revenues 77,213  80,417   228,995  234,978 
      Total revenues 615,462  560,772   1,827,973  1,596,460 
    Cost of revenues     
     Product cost of revenues 362,579  332,035   1,076,033  951,666 
     Service cost of revenues 43,285  41,534   126,503  127,276 
      Total cost of revenues 405,864  373,569   1,202,536  1,078,942 
    Gross profit 209,598  187,203   625,437  517,518 
            
    Operating expenses     
     Sales, general and administrative 79,639  76,576   254,023  231,176 
     Research and development 51,237  51,644   156,691  154,769 
     Amortization of intangible assets 4,814  4,663   13,311  14,433 
     Restructuring (723) (615)  (624) 36,868 
     Loss on sale of business 698  45   656  675 
      Total operating expenses 135,665  132,313   424,057  437,921 
            
    Operating income 73,933  54,890   201,380  79,597 
    Other income (expense)     
     Interest income 13,420  2,642   22,394  5,968 
     Interest expense (5,605) (2,445)  (9,788) (6,479)
     Other income (expense), net 677  646   695  (1,162)
      Total other income (expense) 8,492  843   13,301  (1,673)
            
    Income before income taxes 82,425  55,733   214,681  77,924 
    Income tax provision (3,515) (15,388)  (32,124) (24,513)
    Net income 78,910  40,345   182,557  53,411 
     Net income attributable to noncontrolling interests 951  173   1,559  874 
    Net income attributable to Itron, Inc.$77,959 $40,172  $180,998 $52,537 
            
    Net income per common share - Basic$1.73 $0.88  $3.98 $1.16 
    Net income per common share - Diluted$1.70 $0.87  $3.91 $1.15 
            
    Weighted average common shares outstanding - Basic 44,982  45,462   45,458  45,393 
    Weighted average common shares outstanding - Diluted 45,839  45,950   46,239  45,768 
     


    ITRON, INC.
    SEGMENT INFORMATION
            
    (Unaudited, in thousands)
       Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
        2024  2023   2024  2023 
    Product revenues     
     Device Solutions$122,119 $110,138  $365,956 $340,098 
     Networked Solutions 390,201  352,771   1,158,857  964,909 
     Outcomes 25,929  17,446   74,165  56,475 
      Total Company$538,249 $480,355  $1,598,978 $1,361,482 
            
    Service revenues     
     Device Solutions$619 $631  $2,084 $2,085 
     Networked Solutions 26,512  32,200   78,076  94,460 
     Outcomes 50,082  47,586   148,835  138,433 
      Total Company$77,213 $80,417  $228,995 $234,978 
            
    Total revenues     
     Device Solutions$122,738 $110,769  $368,040 $342,183 
     Networked Solutions 416,713  384,971   1,236,933  1,059,369 
     Outcomes 76,011  65,032   223,000  194,908 
      Total Company$615,462 $560,772  $1,827,973 $1,596,460 
            
    Gross profit     
     Device Solutions$33,342 $26,919  $94,637 $75,351 
     Networked Solutions 149,648  135,203   452,830  362,852 
     Outcomes 26,608  25,081   77,970  79,315 
      Total Company$209,598 $187,203  $625,437 $517,518 
            
    Operating income     
     Device Solutions$26,485 $17,675  $71,913 $45,837 
     Networked Solutions 115,231  102,503   349,353  266,052 
     Outcomes 11,186  10,280   30,928  35,867 
     Corporate unallocated (78,969) (75,568)  (250,814) (268,159)
      Total Company$73,933 $54,890  $201,380 $79,597 
            
    Total Gross Margin 34.1% 33.4%  34.2% 32.4%
     


    ITRON, INC.
    CONSOLIDATED BALANCE SHEETS
          
    (Unaudited, in thousands)September 30, 2024 December 31, 2023
    ASSETS   
    Current assets   
     Cash and cash equivalents$982,507  $302,049 
     Accounts receivable, net 338,769   303,821 
     Inventories 276,616   283,686 
     Other current assets 156,642   159,882 
      Total current assets 1,754,534   1,049,438 
          
    Property, plant, and equipment, net 120,449   128,806 
    Deferred tax assets, net 290,259   247,211 
    Other long-term assets 40,804   38,836 
    Operating lease right-of-use assets, net 37,641   41,186 
    Intangible assets, net 47,969   46,282 
    Goodwill 1,073,757   1,052,504 
      Total assets$3,365,413  $2,604,263 
          
    LIABILITIES AND EQUITY   
    Current liabilities   
     Accounts payable$152,510  $199,520 
     Other current liabilities 61,151   54,407 
     Wages and benefits payable 118,634   135,803 
     Taxes payable 14,273   8,636 
     Current portion of warranty 13,807   14,663 
     Unearned revenue 161,096   124,207 
      Total current liabilities 521,471   537,236 
          
    Long-term debt, net 1,240,950   454,827 
    Long-term warranty 7,925   7,501 
    Pension benefit obligation 64,886   63,887 
    Deferred tax liabilities, net 622   697 
    Operating lease liabilities 28,820   32,656 
    Other long-term obligations 132,052   176,028 
      Total liabilities 1,996,726   1,272,832 
          
    Equity   
     Common stock 1,673,916   1,820,510 
     Accumulated other comprehensive loss, net (78,186)  (81,190)
     Accumulated deficit (247,411)  (428,409)
      Total Itron, Inc. shareholders' equity 1,348,319   1,310,911 
     Noncontrolling interests 20,368   20,520 
      Total equity 1,368,687   1,331,431 
      Total liabilities and equity$3,365,413  $2,604,263 
     


    ITRON, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
        
    (Unaudited, in thousands)Nine Months Ended September 30,
        2024   2023 
    Operating activities   
     Net income$182,557  $53,411 
     Adjustments to reconcile net income to net cash provided by operating activities:   
      Depreciation and amortization of intangible assets 40,979   42,013 
      Non-cash operating lease expense 11,481   12,197 
      Stock-based compensation 32,067   20,531 
      Amortization of prepaid debt fees 3,669   2,761 
      Deferred taxes, net (17,509)  1,938 
      Loss on sale of business 656   675 
      Restructuring, non-cash (171)  910 
      Other adjustments, net (838)  (318)
    Changes in operating assets and liabilities, net of acquisition and sale of business:   
     Accounts receivable (31,169)  (37,832)
     Inventories 5,532   (48,280)
     Other current assets 4,102   (43,240)
     Other long-term assets (1,391)  3,392 
     Accounts payable, other current liabilities, and taxes payable (39,054)  220 
     Wages and benefits payable (18,010)  17,361 
     Unearned revenue 33,453   38,619 
     Warranty (476)  (2,177)
     Restructuring (19,816)  23,966 
     Other operating, net (27,736)  (9,071)
      Net cash provided by operating activities 158,326   77,076 
          
    Investing activities   
     Net proceeds (payments) related to the sale of business 405   (772)
     Acquisitions of property, plant, and equipment (20,878)  (18,304)
     Business acquisitions, net of cash and cash equivalents acquired (34,126)  — 
     Other investing, net 212   73 
      Net cash used in investing activities (54,387)  (19,003)
          
    Financing activities   
     Proceeds from borrowings 805,000   — 
     Issuance of common stock 4,317   2,366 
     Payments on call spread for convertible offering (108,997)  — 
     Repurchase of common stock (100,000)  — 
     Prepaid debt fees (21,617)  (517)
     Other financing, net (2,618)  (4,488)
      Net cash provided by (used in) financing activities 576,085   (2,639)
          
    Effect of foreign exchange rate changes on cash and cash equivalents 434   (2,670)
    Increase in cash and cash equivalents 680,458   52,764 
    Cash and cash equivalents at beginning of period 302,049   202,007 
    Cash and cash equivalents at end of period$982,507  $254,771 
     

    About 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 a reconciliation of each non-GAAP measure to the most comparable financial measure prepared and presented in accordance with GAAP, 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 restructuring, loss on sale of business, strategic initiative expenses, or acquisition and integration related expenses. 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, strategic initiative expenses, and acquisition and integration related expenses. 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, strategic initiative expenses, and acquisition and integration related expenses. 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 not related to our core operating results. 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, strategic initiative expenses, acquisition and integration related expenses, and the tax effect of excluding these expenses. We define non-GAAP diluted EPS as non-GAAP net income divided by diluted weighted-average shares outstanding during the period calculated on a GAAP basis and then reduced to reflect any anti-dilutive impact of the convertible notes hedge transactions. 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.

    For interim periods the budgeted annual effective tax rate (AETR) is used, adjusted for any discrete items, as defined in Accounting Standards Codification (ASC) 740 - Income Taxes. The budgeted AETR is determined at the beginning of the fiscal year. The AETR is revised throughout the year based on changes to our full-year forecast. If the revised AETR increases or decreases by 200 basis points or more from the budgeted AETR due to changes in the full-year forecast during the year, the revised AETR is used in place of the budgeted AETR beginning with the quarter the 200 basis point threshold is exceeded and going forward for all subsequent interim quarters in the year. We continue to assess the AETR based on latest forecast throughout the year and use the most recent AETR anytime it increases or decreases by 200 basis points or more from the prior interim period.

    Adjusted EBITDA – We define adjusted EBITDA as net income (a) minus interest income, (b) plus interest expense, depreciation and amortization, restructuring, loss on sale of business, strategic initiative expenses, acquisition and integration related expenses, 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.

    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 in the reconciliation.

    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 tables below reconcile the non-GAAP financial measures of operating expenses, operating income, net income, diluted EPS, adjusted EBITDA, and free cash flow with the most directly comparable GAAP financial measures.

    ITRON, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
    (Unaudited, in thousands, except per share data)      
    TOTAL COMPANY RECONCILIATIONSThree Months Ended
    September 30,    		 Nine Months Ended
    September 30,
         2024  2023   2024  2023  
     NON-GAAP OPERATING EXPENSES      
      GAAP operating expenses$135,665 $132,313  $424,057 $437,921  
       Amortization of intangible assets (4,814) (4,663)  (13,311) (14,433) 
       Restructuring 723  615   624  (36,868) 
       Loss on sale of business (698) (45)  (656) (675) 
       Strategic initiative —  5   —  5  
       Acquisition and integration (248) (28)  (656) (117) 
      Non-GAAP operating expenses$130,628 $128,197  $410,058 $385,833  
              
     NON-GAAP OPERATING INCOME      
      GAAP operating income$73,933 $54,890  $201,380 $79,597  
       Amortization of intangible assets 4,814  4,663   13,311  14,433  
       Restructuring (723) (615)  (624) 36,868  
       Loss on sale of business 698  45   656  675  
       Strategic initiative —  (5)  —  (5) 
       Acquisition and integration 248  28   656  117  
      Non-GAAP operating income$78,970 $59,006  $215,379 $131,685  
              
     NON-GAAP NET INCOME & DILUTED EPS      
      GAAP net income attributable to Itron, Inc.$77,959 $40,172  $180,998 $52,537  
       Amortization of intangible assets 4,814  4,663   13,311  14,433  
       Amortization of debt placement fees 1,759  897   3,538  2,629  
       Restructuring (723) (615)  (624) 36,868  
       Loss on sale of business 698  45   656  675  
       Strategic initiative —  (5)  —  (5) 
       Acquisition and integration 248  28   656  117  
       Income tax effect of non-GAAP adjustments (504) (293)  (891) (10,156) 
      Non-GAAP net income attributable to Itron, Inc.$84,251 $44,892  $197,644 $97,098  
              
      Non-GAAP diluted EPS$1.84 $0.98  $4.27 $2.12  
              
      Non-GAAP weighted average common shares outstanding - Diluted 45,839  45,950   46,239  45,768  
              
     ADJUSTED EBITDA      
      GAAP net income attributable to Itron, Inc.$77,959 $40,172  $180,998 $52,537  
       Interest income (13,420) (2,642)  (22,394) (5,968) 
       Interest expense 5,605  2,445   9,788  6,479  
       Income tax provision 3,515  15,388   32,124  24,513  
       Depreciation and amortization 14,716  13,645   40,979  42,013  
       Restructuring (723) (615)  (624) 36,868  
       Loss on sale of business 698  45   656  675  
       Strategic initiative —  (5)  —  (5) 
       Acquisition and integration 248  28   656  117  
      Adjusted EBITDA$88,598 $68,461  $242,183 $157,229  
              
     FREE CASH FLOW      
      Net cash provided by operating activities$65,301 $34,087  $158,326 $77,076  
       Acquisitions of property, plant, and equipment (6,623) (5,806)  (20,878) (18,304) 
      Free Cash Flow$58,678 $28,281  $137,448 $58,772  
     

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