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8-K - 8-K - ITERIS, INC.a13-12626_18k.htm

Exhibit 99.1

 

GRAPHIC

 

For Release at 1:05 p.m., PDT 05/16/13

 

Iteris Reports Fiscal Fourth Quarter and Full Year 2013 Financial Results

 

- Fiscal Year 2013 Revenues Up 6% to $61.7 Million with Net Income of $0.07 per Share -

 

SANTA ANA, Calif. – May 16, 2013 – Iteris, Inc. (NYSE MKT: ITI), a leader in providing intelligent traffic management information solutions, reported financial results for its fiscal fourth quarter and full year ended March 31, 2013.

 

Fiscal Q4 2013 Financial Highlights

 

·                  Total revenues up 4% to $15.9 million vs. year-ago quarter

·                  Transportation Systems revenues up 6% to $8.6 million vs. year-ago quarter

·                  Roadway Sensors revenues up 28% sequentially to $6.5 million

·                  Signed $9.6 million in Transportation Systems contracts, up 26% from $7.6 million in year-ago quarter

·                  Backlog increased 9% to $38.6 million compared to $35.3 million in year-ago quarter

·                  Repurchased 664,000 shares of stock for $1.1 million, bringing the total to 2.1 million shares repurchased since inception of the stock buy-back programs

·                  Commenced the accelerated investment phase in iPerform®

 

Fiscal Year 2013 Financial Highlights vs. Fiscal Year 2012

 

·                  Total revenues up 6% to $61.7 million

·                  Transportation Systems revenues up 9% to $32.4 million

·                  Net income totaled $2.4 million, or $0.07 per share, compared to net income of $2.5 million, or $0.07 per share

 

Management Commentary

 

“We completed fiscal 2013 on a strong note with healthy Transportation Systems revenue growth, both year-over-year and sequentially, as well as improvement in our Roadway Sensors revenues, which grew 28% sequentially to $6.5 million,” said Abbas Mohaddes, president and CEO of Iteris. “The growth in Transportation Systems is primarily attributed to increased marketing, progress in our East Coast region, and expanded backlog. In Roadway Sensors, we shipped some of the orders that were delayed last quarter and resumed normalized shipping since Hurricane Sandy. Additionally, we reinvested a portion of the cash flow from these two segments to expand our investment in iPerform and made significant progress in its software development.”

 

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Mohaddes concluded: “Throughout fiscal 2014, we plan to focus on the areas of intelligent traffic management we believe are growing faster than the overall market by delivering technologies and solutions that are uniquely positioned to address these market segments. We also plan to further expand our sales, marketing, and research and development teams, particularly within iPerform, and anticipate reporting partner wins in both the public and commercial markets. These markets are in need of our intelligent traffic management products, information and analytics solutions, and we believe that our investments in these areas will build shareholder value.”

 

Fiscal Q4 2013 Financial Results

 

Total revenues in the fourth quarter of 2013 increased 4% to $15.9 million compared to $15.2 million in the year-ago quarter. The increase was primarily attributed to a 6% increase in Transportation Systems/511 revenues as well as an 18% increase in iPerform revenues. Revenue from the iPerform segment represented 5% of total revenues in the fourth quarter of 2013.

 

Gross margin in the fourth quarter was 36.3% compared to 37.6% in the year-ago quarter. The decrease in gross margin was mainly the result of an increase in sub-consulting content related to Transportation Systems contracts and a decrease in Roadway Sensors gross margins.

 

Income from continuing operations in the fourth quarter was $69,000, or $0.00 per share, compared to $422,000, or $0.01 per share, in the year-ago quarter. Net income in the fourth quarter was $56,000, or $0.00 per share, compared to $358,000, or $0.01 per share, in the year-ago quarter. Both income from continuing operations and net income in the fourth quarter of 2013 were impacted by the commencement of the company’s accelerated investment phase in iPerform, as well as a $187,000 income tax expense related to certain California net operating loss carry forwards which may not be fully utilized prior to expiration.

 

During the fourth quarter, Iteris repurchased approximately 664,000 shares of its common stock for $1.1 million. Since initiating a series of share repurchase programs in August 2011, the company has repurchased approximately 2.1 million shares for an aggregate purchase price of $3.2 million.

 

Total backlog at the end of the fourth quarter was $38.6 million, an increase of 9% from $35.3 million in the year-ago quarter, and up slightly from $38.0 million in the third quarter of 2013. Backlog was comprised of $32.2 million from Transportation Systems, $3.3 million from iPerform and $3.1 million from Roadway Sensors. During the quarter, the company signed $9.6 million in Transportation Systems contracts compared to $7.6 million in the year-ago quarter and $4.9 million in the third quarter of 2013.

 

Fiscal Year 2013 Financial Results

 

Total revenues in 2013 increased 6% to $61.7 million compared to $58.4 million in 2012. The increase was primarily due to a 9% increase in Transportation Systems contract revenues and the inclusion of iPerform revenues for the full year, partially offset by a 6% decline in Roadway Sensors revenues.

 

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Gross margin in 2013 was 37.7% compared to 39.5% in 2012. The decrease in gross margin was primarily due to the aforementioned increase in Transportation Systems sub-consulting content and a decline in Roadway Sensors gross margin.

 

Income from continuing operations in 2013 was $914,000, or $0.03 per share, compared to $1.3 million, or $0.04 per share, in 2012. Net income in 2013 was $2.4 million, or $0.07 per share, compared to $2.5 million, or $0.07 per share, in 2012.

 

Conference Call

 

Iteris will conduct a conference call today at 4:30 p.m. ET (1:30 p.m. PT) to discuss its fiscal fourth quarter and full year 2013 results.

 

Iteris’ CEO Abbas Mohaddes and CFO Jim Miele will host the call, followed by a question and answer period. Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.

 

Date: Thursday, May 16, 2013

Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)

Dial-In number: 1-877-941-2068

International number: 1-480-629-9712

Conference ID: 4617588

 

The conference call will be broadcast live and available for replay via the investor relations section of the Iteris website at www.iteris.com.

 

A telephone replay of the call will also be available after 7:30 p.m. ET on the same day through May 30, 2013.

 

Toll-free replay number: 1-877-870-5176

International replay number: 1-858-384-5517

Replay ID: 4617588

 

About Iteris, Inc.

 

Iteris, Inc. is a leader in providing intelligent information solutions to the traffic management market. The company is focused on the development and application of advanced technologies and software-based information systems that reduce traffic congestion, provide measurement, management, and predictive traffic analytics, and improve the safety of surface Transportation systems. By combining its unique IP, products, decades of expertise in traffic management, and information technologies, Iteris offers a broad range of Intelligent Transportation System (ITS) solutions to customers worldwide. The firm is headquartered in Santa Ana, California, with offices nationwide and in the Middle East. For more information, please call 1-888-329-4483 or visit www.iteris.com. Also visit the company on Facebook, Twitter, and YouTube.

 

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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

 

This earnings release contains forward-looking statements based on our current expectations, estimates, and projections about our business, our industry, the U.S. and global economies, federal funding for Transportation and infrastructure projects as well as management’s beliefs, and certain assumptions made by us. Words such as ‘‘anticipates,’’ ‘‘expects,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘believes,’’ ‘‘seeks,’’ ‘‘estimates,’’ ‘‘may,’’ ‘‘should, ‘‘ ‘‘will,’’ and variations of these words are intended to identify forward-looking statements. Such statements speak only as of the date hereof and are subject to change. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. These statements include, but are not limited to, statements about the Company’s expansion and business strategies and anticipated growth opportunities, the impact and success of new product introductions and acquisitions, our future performance, growth, operating results, market position, and financial condition and prospects, and the market demand for and acceptance of our products, technologies and services.  Such statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Accordingly, our 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, as well as constraints and budget delays; the timing and amount of government funds allocated to overall Transportation infrastructure projects and the Transportation industry; the potential impact of the Federal Highway Bill on the Intelligent Transportation industry and the expected benefits to Iteris; the potential unforeseen impact of product and service offerings from competitors, increased competition in certain market segments and other competitive pressures; our ability to secure additional Transportation Systems consulting contracts and successfully complete such contracts on a timely basis; our ability to specify, develop, complete, introduce, market, and transition our products and technologies to volume production in a timely manner; the timing and successful completion of customer qualification of our products and the risks of non-qualification; the availability of components used in the manufacture of certain of our products; the effectiveness of efficiency, cost, and expense reduction efforts; the status of the real estate development industry; our ability to successfully develop, market and sell software-based solutions, specifically our IterisPeMS™ software; our ability to successfully identify, complete and integrate acquisitions of products, technologies and companies; our ability to further expand our revenues and introduce and gain broad acceptance for new and recently introduced technologies, products or services and the general economic and political conditions and specific conditions in the markets we address, and the possible disruption in government spending and commercial activities related to terrorist activity or armed conflict in the United States and internationally. Further information on Iteris, Inc., including additional risk factors that may affect our forward looking statements, is 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).

 

Contact:

Liolios Group, Inc.

Scott Liolios or Cody Slach

Investor Relations

Tel 1-949-574-3860

ITI@liolios.com

 

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ITERIS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

March 31,

 

March 31,

 

 

 

2013

 

2012

 

 

 

(unaudited)

 

 

 

ASSETS:

 

 

 

 

 

Cash

 

$

19,137

 

$

18,701

 

Trade accounts receivable, net

 

10,946

 

11,081

 

Costs and estimated earnings in excess of billings on uncompleted contracts

 

6,346

 

5,360

 

Inventories

 

2,465

 

2,454

 

Prepaid expenses and other current assets

 

852

 

425

 

Current portion of deferred income taxes

 

2,363

 

2,904

 

Total current assets

 

42,109

 

40,925

 

 

 

 

 

 

 

Long-term portion of deferred income taxes

 

5,888

 

6,761

 

Property and equipment, net

 

1,862

 

1,948

 

Goodwill

 

17,318

 

17,318

 

Intangible and other assets, net

 

2,334

 

2,788

 

Total assets

 

$

69,511

 

$

69,740

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY:

 

 

 

 

 

Accounts payable and other current liabilities

 

$

10,764

 

$

10,384

 

Billings in excess of costs and estimated earnings on uncompleted contracts

 

1,958

 

1,542

 

Term debt

 

 

634

 

Total current liabilities

 

12,722

 

12,560

 

Long-term liabilities

 

908

 

1,708

 

Total liabilities

 

13,630

 

14,268

 

Stockholders’ equity

 

55,881

 

55,472

 

Total liabilities and stockholders’ equity

 

$

69,511

 

$

69,740

 

 

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ITERIS, INC.

UNAUDITED CONSOLIDATED

STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

March 31,

 

March 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

15,883

 

$

15,240

 

$

61,685

 

$

58,406

 

Cost of revenues

 

10,111

 

9,507

 

38,427

 

35,335

 

Gross profit

 

5,772

 

5,733

 

23,258

 

23,071

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

4,581

 

4,485

 

18,090

 

17,986

 

Research and development

 

702

 

707

 

3,071

 

3,183

 

Amortization of intangible assets

 

161

 

161

 

644

 

504

 

Change in fair value of contingent acquisition consideration

 

7

 

20

 

(181

)

(619

)

Total operating expenses

 

5,451

 

5,373

 

21,624

 

21,054

 

Operating income

 

321

 

360

 

1,634

 

2,017

 

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

(7

)

(2

)

2

 

4

 

Interest income (expense), net

 

(4

)

(8

)

(6

)

(72

)

Income from continuing operations before income taxes

 

310

 

350

 

1,630

 

1,949

 

 

 

 

 

 

 

 

 

 

 

Benefit (provision) for income taxes

 

(241

)

72

 

(716

)

(643

)

Income from continuing operations

 

69

 

422

 

914

 

1,306

 

Gain (loss) on sale of discontinued operation, net of tax

 

(13

)

(64

)

1,465

 

1,180

 

Gain from discontinued operation, net of tax

 

 

 

 

28

 

Net income

 

$

56

 

$

358

 

$

2,379

 

$

2,514

 

 

 

 

 

 

 

 

 

 

 

Income per share from continuing operations - basic and diluted

 

$

0.00

 

$

0.01

 

$

0.03

 

$

0.04

 

Gain (loss) per share from sale of discontinued operation - basic and diluted

 

$

(0.00

)

$

(0.00

)

$

0.04

 

$

0.03

 

Income per share from discontinued operation - basic and diluted

 

$

 

$

 

$

 

$

0.00

 

Net income per share - basic and diluted

 

$

0.00

 

$

0.01

 

$

0.07

 

$

0.07

 

 

 

 

 

 

 

 

 

 

 

Shares used in basic per share calculations

 

32,993

 

34,027

 

33,491

 

34,259

 

Shares used in diluted per share calculations

 

33,162

 

34,191

 

33,609

 

34,380

 

 

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ITERIS, INC.

UNAUDITED SEGMENT REPORTING DETAILS

(in thousands)

 

 

 

Roadway
Sensors

 

Transportation
Systems

 

iPerform

 

Iteris, Inc.

 

Three Months Ended March 31, 2013

 

 

 

 

 

 

 

 

 

Total revenues

 

$

6,517

 

$

8,603

 

$

763

 

$

15,883

 

 

 

 

 

 

 

 

 

 

 

Segment operating income (loss)

 

$

891

 

$

1,063

 

$

(225

)

$

1,729

 

Corporate and other income (expense), net

 

 

 

 

 

 

 

(1,408

)

Operating income

 

 

 

 

 

 

 

$

321

 

 

 

 

Roadway
Sensors

 

Transportation
Systems

 

iPerform

 

Iteris, Inc.

 

Twelve Months Ended March 31, 2013

 

 

 

 

 

 

 

 

 

Total revenues

 

$

26,002

 

$

32,389

 

$

3,294

 

$

61,685

 

 

 

 

 

 

 

 

 

 

 

Segment operating income (loss)

 

$

4,119

 

$

3,622

 

$

(294

)

$

7,447

 

Corporate and other income (expense), net

 

 

 

 

 

 

 

(5,813

)

Operating income

 

 

 

 

 

 

 

$

1,634

 

 

 

 

Roadway
Sensors

 

Transportation
Systems

 

iPerform

 

Iteris, Inc.

 

Three Months Ended March 31, 2012 *

 

 

 

 

 

 

 

 

 

Total revenues

 

$

6,445

 

$

8,149

 

$

646

 

$

15,240

 

 

 

 

 

 

 

 

 

 

 

Segment operating income (loss)

 

$

726

 

$

1,097

 

$

(3

)

$

1,820

 

Corporate and other income (expense), net

 

 

 

 

 

 

 

(1,460

)

Operating income

 

 

 

 

 

 

 

$

360

 

 

 

 

Roadway
Sensors

 

Transportation
Systems

 

iPerform

 

Iteris, Inc.

 

Twelve Months Ended March 31, 2012 *

 

 

 

 

 

 

 

 

 

Total revenues

 

$

27,679

 

$

29,792

 

$

935

 

$

58,406

 

 

 

 

 

 

 

 

 

 

 

Segment operating income (loss)

 

$

4,813

 

$

3,151

 

$

(367

)

$

7,597

 

Corporate and other income (expense), net

 

 

 

 

 

 

 

(5,580

)

Operating income

 

 

 

 

 

 

 

$

2,017

 

 


* Segment information has been restated to conform with current year presentation

 

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