Itron(US:ITRI)2022-11-03 16:33Financial Performance - Total revenues for Q3 2022 were $420.86 million, a decrease of 13.5% compared to $486.95 million in Q3 2021[9] - Product revenues decreased to $347.79 million in Q3 2022 from $410.95 million in Q3 2021, representing a decline of 15.3%[9] - Net income for Q3 2022 was $4.47 million, compared to a net loss of $1.01 million in Q3 2021[10] - Gross profit for the nine months ended September 30, 2022, was $381.39 million, down from $451.88 million in the same period of 2021, reflecting a decrease of 15.5%[9] - Operating income for Q3 2022 was $6.89 million, an increase from $4.16 million in Q3 2021[9] - The company reported a comprehensive loss of $21.64 million for Q3 2022, compared to a loss of $7.58 million in Q3 2021[10] - For the nine months ended September 30, 2022, Itron reported a net loss of $31,497,000, compared to a net loss of $19,875,000 for the same period in 2021, indicating a deterioration in performance[19] - The company experienced a net loss before income taxes of $26.52 million for the nine months ended September 30, 2022, compared to a loss of $14.29 million in the same period of 2021[125] Assets and Liabilities - Total assets as of September 30, 2022, were $2.32 billion, a decrease from $2.39 billion as of December 31, 2021[15] - Cash and cash equivalents increased to $215.41 million as of September 30, 2022, up from $162.58 million at the end of 2021[15] - Total liabilities decreased to $1.20 billion as of September 30, 2022, from $1.25 billion at the end of 2021[15] - Itron, Inc. shareholders' equity decreased to $1.09 billion as of September 30, 2022, from $1.12 billion at the end of 2021[15] - The total accounts receivable, net as of September 30, 2022, was $266.669 million, down from $298.459 million as of December 31, 2021[37] Cash Flow and Operating Activities - Net cash provided by operating activities for the nine months ended September 30, 2022, was $37,530,000, a significant decrease from $141,147,000 in the same period of 2021[19] - The company reported depreciation and amortization of intangible assets amounting to $50,612,000 for the nine months ended September 30, 2022, down from $64,252,000 in 2021[19] - The company recognized a loss of $1.9 million during Q3 2022 due to the liquidation of its legal entity in Russia[25] Revenue Segments - Device Solutions segment reported product revenues of $92.89 million for Q3 2022, down 38% from $149.83 million in Q3 2021[125] - Networked Solutions segment generated $240.50 million in product revenues for Q3 2022, slightly down from $242.53 million in Q3 2021[125] - Outcomes segment's product revenues decreased to $14.40 million in Q3 2022 from $18.59 million in Q3 2021, representing a decline of 22.5%[125] Inventory and Supply Chain - Raw materials inventory increased to $160.000 million as of September 30, 2022, from $122.434 million as of December 31, 2021[37] - Total inventories as of September 30, 2022, were $203.612 million, compared to $165.799 million as of December 31, 2021[37] - The company experienced supply chain challenges, particularly in obtaining semiconductor components, impacting the ability to meet customer demand[157] Stock and Compensation - The company has 12,623,538 shares of common stock reserved for issuance under the Stock Incentive Plan, with 4,626,437 shares available for grant as of September 30, 2022[76] - Total stock-based compensation expense for the three months ended September 30, 2022, was $4.708 million, a decrease of 24% from $6.184 million in the same period of 2021[78] - For the nine months ended September 30, 2022, total stock-based compensation expense was $18.012 million, down 15% from $21.112 million in 2021[78] Tax and Compliance - The company reported a tax rate of 10% for the three months ended September 30, 2022, differing from the federal statutory rate of 21% due to various factors including valuation allowances[83] - Unrecognized tax benefits related to uncertain tax positions amounted to $136.559 million as of September 30, 2022[87] - The company is in compliance with the debt covenants under the 2018 credit facility as of September 30, 2022[48] Future Outlook - The total transaction price allocated to remaining performance obligations is approximately $1.4 billion for the next 12 months, indicating strong future revenue potential[130] - The company anticipates an increase in the penetration of Outcomes applications and managed applications as the endpoints under management grow[165]