Significant Increases in GAAP Net Income and Adjusted EBITDA for Fiscal First Quarter
SANTA ANA, Calif. – August 5, 2021 – Iteris, Inc. (NASDAQ: ITI), the global leader in smart mobility infrastructure management, today reported financial results for its fiscal first quarter 2022 ended June 30, 2021. During the first quarter of fiscal 2021, the company completed the sale of its Agriculture and Weather Analytics segment to DTN, LLC. The results of the Agriculture and Weather Analytics segment are reported as discontinued operations for all periods presented in this release.
Fiscal First Quarter 2022 Financial Highlights
- Record total revenue of $34.1 million, up 22% year over year
- Record total ending backlog of $79.9 million, up 18% year over year
- GAAP net income from continuing operations of $0.6 million, or $0.01 per diluted share, a $0.2 million improvement to net income year over year
- Record adjusted EBITDA of $2.5 million, an 11%, or $0.3 million, improvement year over year
Fiscal Full Year 2022 Outlook
- Raises the midpoint of total revenue guidance range by moving the range to $134.0 million to $142.0 million, which would represent year-over-year growth of 15% at the low end and 21% at the high end
- Maintains adjusted EBITDA guidance range of 7% to 8% of fiscal full year 2022 revenue, which would represent year-over-year growth of 10% at the low end and 27% at the high end
Management Commentary:
“We are pleased with our strong financial results for the period ending June 30, 2021 and excited about the market’s response to our ClearMobility Platform,” said Joe Bergera, president and CEO of Iteris. “Our end market is vibrant due to the need for cities and states to modernize their aging mobility infrastructure, and for various industries to better understand the infrastructure they use. Given we enter the second quarter of fiscal 2022 with record total ending backlog and a robust product roadmap, we expect to continue to gain share in the highly fragmented smart mobility infrastructure management market.”
GAAP Fiscal First Quarter 2022 Financial Results
Total revenue in the first quarter of fiscal 2022 increased 22% to $34.1 million, compared with $28.0 million in the same quarter a year ago, primarily driven by the addition of revenues from TrafficCast, and continued strong demand for both hardware and software solutions.
Operating expenses in the first quarter increased 27% to $13.4 million, compared with $10.5 million the same quarter a year ago. The increase was a result of the TrafficCast acquisition, and continued investment in research and development, and sales and marketing.
Operating income from continuing operations in the first quarter was approximately $0.7 million, compared with an operating income of approximately $0.4 million in the same quarter a year ago. Net income from continuing operations in the first quarter was approximately $0.6 million, or $0.01 per diluted share, compared with net income from continuing operations of approximately $0.4 million, or $0.01 per diluted share, in the same quarter a year ago.
Non-GAAP Fiscal First Quarter 2022 Financial Results
In addition to results presented in accordance with generally accepted accounting principles in the United States (“GAAP”), the company has included the following non-GAAP financial measure: Adjusted income from continuing operations before interest, taxes, depreciation, amortization, stock-based compensation expense, and restructuring charges (“Adjusted EBITDA”). A discussion of the company’s use of this non-GAAP financial measure is set forth below in the financial statements portion of this release under the heading “Non-GAAP Financial Measures and Reconciliation.”
Adjusted EBITDA in the first quarter was approximately $2.5 million, or 7.4% of total revenues, compared with approximately $2.3 million, or 8.2% of total revenues, in the same quarter a year ago.
Earnings Conference Call
Iteris will conduct a conference call today to discuss its fiscal first quarter results.
Date: Thursday, August 5, 2021
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Toll-free dial-in number: +1-800-367-2403
International dial-in number: +1 334-777-6978
Conference ID: 1268914
To listen to the live webcast or view the press release, please visit the investor relations section of the Iteris website at www.iteris.com.
A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through August 12, 2021. To access the replay dial information, please click here.
First Quarter Financials available here.
About Iteris, Inc.
Iteris is the global leader in smart mobility infrastructure management – the foundation for a new era of mobility. We apply cloud computing, artificial intelligence, advanced sensors, advisory services and managed services to achieve safe, efficient and sustainable mobility. Our end-to-end solutions monitor, visualize and optimize mobility infrastructure around the world to help ensure that roads are safe, travel is efficient, and communities thrive. Visit www.iteris.com for more information, and join the conversation on Twitter, LinkedIn and Facebook.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This release may contain forward-looking statements, which speak only as of the date hereof and are based upon our current expectations and the information available to us at this time. Words such as "believes," "anticipates," "expects," "intends," "plans," "seeks," "estimates," "may," "will," "can," and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the Company’s anticipated demand and growth opportunities, conversion of bookings to revenue, the impact and success of new solution offerings, the Company’s recent acquisition, our future performance, growth and profitability, operating results, and financial condition and prospects. Such statements are subject to certain risks, uncertainties, and assumptions that are difficult to predict and actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.
Important factors that may cause such a difference include, but are not limited to, federal, state and local government budgetary issues, spending and scheduling changes, funding constraints and delays, including in light of the COVID-19 pandemic; the timing and amount of government funds allocated to overall transportation infrastructure projects and the transportation industry; our ability to replace large contracts once they have been completed; the effectiveness of efficiency, cost, and expense reduction efforts; our ability to achieve anticipated benefits from our sale of our Agriculture and Weather Analytics segment; our ability to successfully complete and integrate acquired assets and companies; our ability to specify, develop, complete, introduce, market and gain broad acceptance of our new and existing product and service offerings; risks related to our ability to recruit and/or retain key talent; the potential unforeseen impact of product and service offerings from competitors, increased competition in certain market segments, and such competitors’ patent coverage and claims; any softness in the markets that we address; adverse effects of the COVID-19 pandemic on our vendors and our employees; and the impact of general economic and political conditions and specific conditions in the markets we address, and the possible disruption in government spending and commercial activities, such as the COVID-19 pandemic, import/export tariffs, terrorist activities or armed conflicts in the United States and internationally. Further information on Iteris, Inc., including additional risk factors that may affect our forward-looking statements, as contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K, and our other SEC filings that are available through the SEC's website (www.sec.gov).
Iteris Contact
Douglas Groves
Senior Vice President and Chief Financial Officer
Tel: (949) 270-9643
Email: dgroves@iteris.com
Investor Relations
MKR Investor Relations, Inc.
Todd Kehrli
Tel: (213) 277-5550
Email: iti@mkr-group.com
