LIBERTY LAKE, Wash., May 02, 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 first quarter ended March 31, 2024. Key results for the quarter include (compared with the first quarter of 2023): Revenue of $603 million, increased 22%; Gross profit of $205 million, increased 31%; GAAP net income attributable to Itron, Inc. of $52 million, increased $64 million; GAAP diluted earnings per share of $1.12, increased $1.38 per share; Non-GAAP diluted EPS of $1.24, increased $0.75 per share; Adjusted EBITDA of $76 million, increased 94%; and Free cash flow of $34 million, increased $40 million. "Itron's first quarter results reflect strong operational execution within constructive market conditions," said Tom Deitrich, Itron's president and CEO. "Revenue and profitability growth were above expectations due to performance in all segments. Record quarterly revenue for our Networked Solutions segment, increased smart water sales in our Device Solutions segment, and increased Outcomes activity resulted in total revenue growth of 22% over first quarter 2023. "Our commitment to deploying a solutions-oriented Grid Edge Intelligence platform that helps our customers address a wide range of challenges and reduced complexity related to management of energy and water resources has given Itron an excellent competitive position with a substantial pipeline of opportunities. Our first quarter results provide positive momentum for the Company and demonstrate the value of our focus on customer success and results." Summary of First Quarter Consolidated Financial Results(All comparisons made are against the prior year period unless otherwise noted) RevenueTotal first quarter revenue increased 22%, to $603 million, primarily due to operational execution, conversion of previously constrained revenue, and constructive customer demand. Device Solutions revenue increased 7%, or 6% in constant currency, due primarily to growth in smart water and communication module sales. Networked Solutions revenue increased 30%, due primarily to raw material availability, operational efficiencies and project scheduling alignment. Outcomes revenue increased 10%, due primarily to higher activity levels and an increase in recurring revenue. Gross MarginItron's first quarter gross margin of 34.0% increased 240 basis points from the prior year due to higher margin product mix and operational efficiencies. Operating Expenses and Operating IncomeGAAP operating expenses of $143 million decreased $24 million from the prior year primarily due to a restructuring charge in the prior year. Non-GAAP operating expenses of $138 million increased $13 million. GAAP operating income of $63 million was $73 million higher than the prior year due to higher gross profit and lower operating expenses. Non-GAAP operating income of $67 million was $36 million higher than the prior year due to higher gross profit, partially offset by higher operating expenses. Net Income and Earnings per ShareNet income attributable to Itron, Inc. for the quarter was $52 million, or $1.12 per diluted share, compared with a net loss of $12 million, or $(0.26) per share in 2023. The increase was driven by higher GAAP operating income, partially offset by higher 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, acquisition and integration, and the tax effect of excluding these expenses, was $57 million, or $1.24 per diluted share, compared with $22 million, or $0.49 per diluted share, in 2023. The increase was due to higher non-GAAP operating income, partially offset by higher tax expense. Cash FlowNet cash provided by operating activities was $41 million in the first quarter compared with $1 million in the prior year. Free cash flow was $34 million in the first quarter compared with $(5) million in the prior year. The increase in cash flow was due to higher earnings. Other Measures Total backlog at quarter end was $4.3 billion compared with $4.5 billion in the prior year. Bookings in the quarter totaled $361 million.  Q2 2024 Outlook Outlook for the second quarter of 2024 is as follows: Revenue between $595 and $605 million Non-GAAP diluted EPS between $0.90 and $1.00 Earnings Conference CallItron will host a conference call to discuss the financial results contained in this release at 10 a.m. EDT on May 2, 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 May 9, 2024 and may be accessed on the company's website at https://investors.itron.com/events-presentations. About ItronItron enables utilities and cities to safely, securely and reliably deliver critical infrastructure solutions 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 StatementsThis 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 InformationTo 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 VincentVice President, Investor Relations(512) 560-1172 David MeansDirector, Investor Relations(737) Itron, Inc. LinkedIn: https://www.linkedin.com/company/itroninc X: https://twitter.com/ItronInc Newsroom: https://itron.com/newsroom Blog: https://itron.com/blog ITRON, INC. CONSOLIDATED STATEMENTS OF OPERATIONS           (Unaudited, in thousands, except per share data)           Three Months Ended March 31,       2024   2023 Revenues       Product revenues $ 527,822     $ 416,324     Service revenues   75,620       78,294       Total revenues   603,442       494,618   Cost of revenues       Product cost of revenues   356,707       297,343     Service cost of revenues   41,356       40,907       Total cost of revenues   398,063       338,250   Gross profit   205,379       156,368             Operating expenses       Sales, general and administrative   85,971       75,521     Research and development   52,401       49,565     Amortization of intangible assets   3,986       5,048     Restructuring   198       36,609     Loss on sale of business   23       18       Total operating expenses   142,579       166,761             Operating income (loss)   62,800       (10,393 ) Other income (expense)       Interest income   3,846       1,818     Interest expense   (1,893 )     (2,057 )   Other income (expense), net   463       (1,475 )     Total other income (expense)   2,416       (1,714 )           Income (loss) before income taxes   65,216       (12,107 ) Income tax benefit (provision)   (13,429 )     70   Net income (loss)   51,787       (12,037 )   Net income (loss) attributable to noncontrolling interests   66       (201 ) Net income (loss) attributable to Itron, Inc. $ 51,721     $ (11,836 )           Net income (loss) per common share - Basic $ 1.13     $ (0.26 ) Net income (loss) per common share - Diluted $ 1.12     $ (0.26 )           Weighted average common shares outstanding - Basic   45,652       45,281   Weighted average common shares outstanding - Diluted   46,357       45,281   ITRON, INC. SEGMENT INFORMATION           (Unaudited, in thousands)           Three Months Ended March 31,       2024   2023 Product revenues       Device Solutions $ 125,908     $ 117,451     Networked Solutions   381,305       281,470     Outcomes   20,609       17,403       Total Company $ 527,822     $ 416,324             Service revenues       Device Solutions $ 844     $ 803     Networked Solutions   26,211       31,998     Outcomes   48,565       45,493       Total Company $ 75,620     $ 78,294             Total revenues       Device Solutions $