Itron Announces Third Quarter 2022 Financial Results

LIBERTY LAKE, Wash.--(BUSINESS WIRE)--November 3, 2022--Itron, Inc. (NASDAQ:ITRI) announced today financial results for its third quarter ended Sept. 30, 2022. Key results for the quarter include (compared with the third quarter of 2021):

Revenue of $421 million, compared with $487 million;
Gross margin of 28.5%; compared with 27.7%;
GAAP net income of $4 million, compared with a loss of $(2) million;
GAAP diluted earnings per share (EPS) of $0.09, compared with a loss per share of $(0.04);
Non-GAAP diluted EPS of $0.23, compared with $0.21;
Adjusted EBITDA of $24 million, compared with $26 million;
Free cash flow of $11 million, consistent with prior year; and
Total backlog of $4.2 billion, compared with $3.4 billion.

"In the third quarter of 2022, we saw continued strong market demand and had another robust quarter of bookings, which pushed our total backlog to new record levels." said Tom Deitrich, Itron's president and chief executive officer. "However, semiconductor supply constraints continued to slow the conversion of backlog into revenue which limited our operating results."

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

Revenue

Total third quarter revenue decreased 14% to $421 million, or 9%, excluding the impact of changes in foreign currency exchange rates. The decrease was primarily due to the strategic sale and exit of certain product lines in our Device Solutions business, along with the continued impact of component shortages on our Networked Solutions business limiting our ability to meet customer demand.

Device Solutions revenue declined 38%, Networked Solutions revenue decreased 2%, and Outcomes revenue decreased 5% primarily due to the continuing decline of our prepay business in EMEA.

Gross Margin

Consolidated company gross margin of 28.5% increased 80 basis points from the prior year, primarily due to favorable mix, partially offset by inefficiencies related to component shortages.

Operating Expenses and Operating Income (Loss)

GAAP operating expenses of $113 million decreased $18 million from the prior year primarily due to lower sales, general and administrative, and product development expenses. Non-GAAP operating expenses of $105 million decreased $13 million from the prior year primarily due to lower sales, general and administrative, and product development expenses.

GAAP operating income of $7 million was $3 million higher than the prior year primarily due to lower operating expenses, partially offset by lower gross profit. Non-GAAP operating income of $15 million was $2 million lower than prior year.

Net Income (Loss) and Earnings (Loss) per Share

Net income attributable to Itron, Inc. for the quarter was $4 million, or $0.09 per diluted share, compared with a loss of $(2) million, or $(0.04) per share in 2021. The increase was driven by higher GAAP operating income and lower interest and other expense.

Non-GAAP net income, which excludes certain charges including amortization of intangible assets, amortization of debt placement fees, debt extinguishment, restructuring, loss on sale of business, strategic initiatives, currency translation write-off, acquisition and integration, goodwill impairment, and the income tax effect of those adjustments, was $11 million, or $0.23 per diluted share, compared with $9 million, or $0.21 per diluted share, in 2021. The higher year-over-year results were primarily due to lower operating expenses and a lower effective tax rate.

Cash Flow

Net cash provided by operating activities was $15 million in the third quarter compared with $18 million in the same quarter of 2021. Free cash flow was $11 million in the third quarter consistent with prior year.

Other Measures

Total backlog was $4.2 billion and 12-month backlog was $1.6 billion, compared with $3.4 billion and $1.4 billion, respectively, in the prior year. Bookings in the quarter totaled $578 million.

Operational Insights and Q4 2022 Outlook

During the third quarter, we were hampered by unanticipated supplier decommitments, component deliveries below expectations, and the non-linear timing of key components arriving at our factories. While we were receiving more positive signals from suppliers, their deliveries did not meet the promised performance, resulting in lower-than-expected company results.

Recent discussions with key suppliers leave us cautiously optimistic about supply availability improving over time. However, we anticipate this volatile supply environment will continue in the fourth quarter. As a result, we are providing a Q4 2022 revenue and earnings outlook. Our expectations for the fourth quarter of 2022 are revenue in a range of $420 million to $460 million and non-GAAP EPS between $0.00 and $0.15.

Earnings Conference Call

Itron will host a conference call to discuss the financial results and guidance contained in this release at 10 a.m. EDT on Nov. 3, 2022. 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 Nov. 8, 2022. To access the telephone replay, dial 888-203-1112 or 719-457-0820 and enter passcode 6390616.

About Itron

Itron^® 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® 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 such as the COVID-19 pandemic and other factors that are more fully described in Part I, Item 1A: Risk Factors included in our 2021 Annual Report and other reports on file with the Securities and Exchange Commission (SEC). We undertake no obligation to update or revise any forward-looking statement, whether written or oral.

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, 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. 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.

ITRON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Revenues
Product revenues	$	347,791		$	410,947		$	1,107,499		$	1,265,470
Service revenues		73,069			76,002			220,574			230,465
Total revenues		420,860			486,949			1,328,073			1,495,935
Cost of revenues
Product cost of revenues		258,541			306,168			818,639			908,923
Service cost of revenues		42,257			45,818			128,043			135,130
Total cost of revenues		300,798			351,986			946,682			1,044,053
Gross profit		120,062			134,963			381,391			451,882

Operating expenses
Sales, general and administrative		63,446			71,838			212,724			221,974
Research and development		43,820			46,889			138,471			147,379
Amortization of intangible assets		6,413			8,944			19,451			26,914
Restructuring		(1,272	)		958			(11,097	)		(830	)
Loss on sale of business		767			2,171			3,182			28,274
Goodwill impairment		—			—			38,480			—
Total operating expenses		113,174			130,800			401,211			423,711

Operating income (loss)		6,888			4,163			(19,820	)		28,171
Other income (expense)
Interest income		801			352			1,367			1,326
Interest expense		(1,679	)		(2,628	)		(4,931	)		(27,107	)
Other income (expense), net		(1,065	)		(1,761	)		(3,140	)		(16,684	)
Total other income (expense)		(1,943	)		(4,037	)		(6,704	)		(42,465	)

Income (loss) before income taxes		4,945			126			(26,524	)		(14,294	)
Income tax provision		(473	)		(1,136	)		(4,973	)		(5,581	)
Net income (loss)		4,472			(1,010	)		(31,497	)		(19,875	)
Net income attributable to noncontrolling interests		355			859			447			2,514
Net income (loss) attributable to Itron, Inc.	$	4,117		$	(1,869	)	$	(31,944	)	$	(22,389	)

Net income (loss) per common share - Basic	$	0.09		$	(0.04	)	$	(0.71	)	$	(0.51	)
Net income (loss) per common share - Diluted	$	0.09		$	(0.04	)	$	(0.71	)	$	(0.51	)

Weighted average common shares outstanding - Basic		45,139			45,240			45,075			43,983
Weighted average common shares outstanding - Diluted		45,330			45,240			45,075			43,983

ITRON, INC.
SEGMENT INFORMATION

(Unaudited, in thousands)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Product revenues
Device Solutions	$	92,893		$	149,830		$	334,212		$	480,808
Networked Solutions		240,498			242,527			731,358			736,397
Outcomes		14,400			18,590			41,929			48,265
Total Company	$	347,791		$	410,947		$	1,107,499		$	1,265,470

Service revenues
Device Solutions	$	1,110		$	2,404		$	4,166		$	7,174
Networked Solutions		29,374			31,971			86,796			91,473
Outcomes		42,585			41,627			129,612			131,818
Total Company	$	73,069		$	76,002		$	220,574		$	230,465

Total revenues
Device Solutions	$	94,003		$	152,234		$	338,378		$	487,982
Networked Solutions		269,872			274,498			818,154			827,870
Outcomes		56,985			60,217			171,541			180,083
Total Company	$	420,860		$	486,949		$	1,328,073		$	1,495,935

Gross profit
Device Solutions	$	14,805		$	22,480		$	50,489		$	85,228
Networked Solutions		81,895			89,915			263,155			298,627
Outcomes		23,362			22,568			67,747			68,027
Total Company	$	120,062		$	134,963		$	381,391		$	451,882

Operating income (loss)
Device Solutions	$	7,066		$	12,095		$	24,103		$	53,784
Networked Solutions		54,640			61,150			177,929			205,071
Outcomes		11,339			11,774			28,789			34,647
Corporate unallocated		(66,157	)		(80,856	)		(250,641	)		(265,331	)
Total Company	$	6,888		$	4,163		$	(19,820	)	$	28,171

ITRON, INC.
CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)	September 30, 2022			December 31, 2021
ASSETS
Current assets
Cash and cash equivalents	$	215,413		$	162,579
Accounts receivable, net		266,669			298,459
Inventories		203,612			165,799
Other current assets		122,948			123,092
Total current assets		808,642			749,929

Property, plant, and equipment, net		138,768			163,184
Deferred tax assets, net		188,728			181,472
Other long-term assets		44,433			42,178
Operating lease right-of-use assets, net		54,814			65,523
Intangible assets, net		70,346			92,529
Goodwill		1,011,051			1,098,975
Total assets	$	2,316,782		$	2,393,790

LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	235,812		$	193,129
Other current liabilities		46,555			81,253
Wages and benefits payable		77,613			113,532
Taxes payable		13,663			12,208
Current portion of warranty		17,943			18,406
Unearned revenue		110,531			82,816
Total current liabilities		502,117			501,344

Long-term debt, net		451,947			450,228
Long-term warranty		7,515			13,616
Pension benefit obligation		71,111			87,863
Deferred tax liabilities, net		1,723			2,000
Operating lease liabilities		47,147			57,314
Other long-term obligations		118,049			138,666
Total liabilities		1,199,609			1,251,031

Equity
Common stock		1,783,193			1,779,775
Accumulated other comprehensive loss, net		(141,821	)		(148,098	)
Accumulated deficit		(547,544	)		(515,600	)
Total Itron, Inc. shareholders' equity		1,093,828			1,116,077
Noncontrolling interests		23,345			26,682
Total equity		1,117,173			1,142,759
Total liabilities and equity	$	2,316,782		$	2,393,790

ITRON, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)	Nine Months Ended September 30,
	2022			2021
Operating activities
Net loss	$	(31,497	)	$	(19,875	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization of intangible assets		50,612			64,252
Non-cash operating lease expense		12,250			12,962
Stock-based compensation		17,416			18,251
Amortization of prepaid debt fees		2,610			17,383
Deferred taxes, net		(6,428	)		(5,170	)
Loss on sale of business		3,182			28,274
Loss on extinguishment of debt, net		—			10,000
Goodwill impairment		38,480			—
Restructuring, non-cash		(879	)		951
Other adjustments, net		2,148			3,720
Changes in operating assets and liabilities, net of acquisition and sale of business:
Accounts receivable		12,270			40,624
Inventories		(48,377	)		2,150
Other current assets		(15,907	)		26,072
Other long-term assets		(7,897	)		5,058
Accounts payable, other current liabilities, and taxes payable		42,550			(27,124	)
Wages and benefits payable		(30,877	)		14,110
Unearned revenue		32,151			(13,158	)
Warranty		(5,031	)		(5,969	)
Other operating, net		(29,246	)		(31,364	)
Net cash provided by operating activities		37,530			141,147

Investing activities
Net proceeds related to the sale of business		55,933			3,142
Acquisitions of property, plant, and equipment		(14,886	)		(27,781	)
Business acquisitions, net of cash and cash equivalents acquired		23			—
Other investing, net		2,424			2,820
Net cash provided by (used in) investing activities		43,494			(21,819	)

Financing activities
Proceeds from borrowings		—			460,000
Payments on debt		—			(946,094	)
Issuance of common stock		2,631			4,351
Proceeds from common stock offering		—			389,419
Proceeds from sale of warrants		—			45,349
Purchases of convertible note hedge contracts		—			(84,139	)
Repurchase of common stock		(16,972	)		—
Prepaid debt fees		(697	)		(12,021	)
Other financing, net		(4,358	)		6,327
Net cash used in financing activities		(19,396	)		(136,808	)

Effect of foreign exchange rate changes on cash and cash equivalents		(8,794	)		(762	)
Increase (decrease) in cash and cash equivalents		52,834			(18,242	)
Cash and cash equivalents at beginning of period		162,579			206,933
Cash and cash equivalents at end of period	$	215,413		$	188,691

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 acquisition and integration related expenses, loss on sale of business, strategic initiative expenses, Russian currency translation write-off, goodwill impairment, 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, strategic initiative, Russian currency translation write-off, goodwill impairment, 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, strategic initiative, Russian currency translation write-off, goodwill impairment, 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 (loss) attributable to Itron, Inc. excluding the expenses associated with amortization of intangible assets, amortization of debt placement fees, debt extinguishment, restructuring, loss on sale of business, strategic initiative, Russian currency translation write-off, acquisition and integration, goodwill impairment, 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 the anti-dilutive impact of the convertible note hedge transaction entered into in connection with the 0% Convertible Notes due 2026 issued in March 2021. 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 (loss) (a) minus interest income, (b) plus interest expense, depreciation and amortization, debt extinguishment, restructuring, loss on sale of business, strategic initiative, Russian currency translation write-off, goodwill impairment, acquisition and integration, 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 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 RECONCILIATIONS	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
NON-GAAP OPERATING EXPENSES
GAAP operating expenses	$	113,174		$	130,800		$	401,211		$	423,711
Amortization of intangible assets		(6,413	)		(8,944	)		(19,451	)		(26,914	)
Restructuring		1,272			(958	)		11,097			830
Loss on sale of business		(767	)		(2,171	)		(3,182	)		(28,274	)
Strategic initiative		35			—			(675	)		—
Russian currency translation write-off		(1,885	)		—			(1,885	)		—
Goodwill impairment		—			—			(38,480	)		—
Acquisition and integration		(154	)		(118	)		(370	)		368
Non-GAAP operating expenses	$	105,262		$	118,609		$	348,265		$	369,721

NON-GAAP OPERATING INCOME
GAAP operating income (loss)	$	6,888		$	4,163		$	(19,820	)	$	28,171
Amortization of intangible assets		6,413			8,944			19,451			26,914
Restructuring		(1,272	)		958			(11,097	)		(830	)
Loss on sale of business		767			2,171			3,182			28,274
Strategic initiative		(35	)		—			675			—
Russian currency translation write-off		1,885			—			1,885			—
Goodwill impairment		—			—			38,480			—
Acquisition and integration		154			118			370			(368	)
Non-GAAP operating income	$	14,800		$	16,354		$	33,126		$	82,161

NON-GAAP NET INCOME & DILUTED EPS
GAAP net income (loss) attributable to Itron, Inc.	$	4,117		$	(1,869	)	$	(31,944	)	$	(22,389	)
Amortization of intangible assets		6,413			8,944			19,451			26,914
Amortization of debt placement fees		846			1,905			2,478			17,252
Debt extinguishment		—			—			—			11,681
Restructuring		(1,272	)		958			(11,097	)		(830	)
Loss on sale of business		767			2,171			3,182			28,274
Strategic initiative		(35	)		—			675			—
Russian currency translation write-off		1,885			—			1,885			—
Acquisition and integration		154			118			370			(368	)
Goodwill impairment		—			—			38,480			—
Income tax effect of non-GAAP adjustments		(2,362	)		(2,775	)		(4,663	)		(16,491	)
Non-GAAP net income attributable to Itron, Inc.	$	10,513		$	9,452		$	18,817		$	44,043

Non-GAAP diluted EPS	$	0.23		$	0.21		$	0.42		$	0.99

Non-GAAP weighted average common shares outstanding - Diluted		45,330			45,506			45,267			44,330

ADJUSTED EBITDA
GAAP net income (loss) attributable to Itron, Inc.	$	4,117		$	(1,869	)	$	(31,944	)	$	(22,389	)
Interest income		(801	)		(352	)		(1,367	)		(1,326	)
Interest expense		1,679			2,628			4,931			27,107
Income tax provision		473			1,136			4,973			5,581
Debt extinguishment		—			—			—			11,681
Depreciation and amortization		17,361			21,333			50,612			64,252
Restructuring		(1,272	)		958			(11,097	)		(830	)
Loss on sale of business		767			2,171			3,182			28,274
Strategic initiative		(35	)		—			675			—
Russian currency translation write-off		1,885			—			1,885			—
Goodwill impairment		—			—			38,480			—
Acquisition and integration		154			118			370			(368	)
Adjusted EBITDA	$	24,328		$	26,123		$	60,700		$	111,982

FREE CASH FLOW
Net cash provided by operating activities	$	14,874		$	18,467		$	37,530		$	141,147
Acquisitions of property, plant, and equipment		(4,223	)		(7,305	)		(14,886	)		(27,781	)
Free Cash Flow	$	10,651		$	11,162		$	22,644		$	113,366

Contacts

For additional information, contact:

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

David Means
Director, Investor Relations
(737) 242-8448

Document and Entity Information	Nov. 03, 2022
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 03, 2022
Entity Registrant Name	ITRON, INC.
Entity Incorporation, State or Country Code	WA
Entity File Number	000-22418
Entity Tax Identification Number	91-1011792
Entity Address, Address Line One	2111 N. Molter Road
Entity Address, City or Town	Liberty Lake
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	99019
City Area Code	509
Local Phone Number	924-9900
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0000780571
Title of 12(b) Security	Common stock
Trading Symbol	ITRI
Security Exchange Name	NASDAQ

Document and Entity Information

Nov. 03, 2022

Cover [Abstract]

Document Type

8-K

Amendment Flag

false

Document Period End Date

Nov. 03, 2022

Entity Registrant Name

ITRON, INC.

Entity Incorporation, State or Country Code

Entity File Number

000-22418

Entity Tax Identification Number

91-1011792

Entity Address, Address Line One

2111 N. Molter Road

Entity Address, City or Town

Liberty Lake

Entity Address, State or Province

Entity Address, Postal Zip Code

99019

City Area Code

509

Local Phone Number

924-9900

Written Communications

false

Soliciting Material

false

Pre-commencement Tender Offer

false

Pre-commencement Issuer Tender Offer

false

Entity Emerging Growth Company

false

Entity Central Index Key

0000780571

Title of 12(b) Security

Common stock

Trading Symbol

ITRI

Security Exchange Name

NASDAQ

Washington		000-22418		91-1011792
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock, no par value		ITRI		NASDAQ Global Select Market

Exhibit Number		Description

99.1		Press Release Dated November 3, 2022.*
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

		*This exhibit is intended to be furnished and shall not be deemed "filed" for purposes of the Exchange Act.

	ITRON, INC.

	By:	/s/ JOAN S. HOOPER
November 3, 2022		Joan S. Hooper
Date		Senior Vice President and Chief Financial Officer