Slide 1: First Quarter 2021 Earnings Conference Call
Tom Deitrich – President and Chief Executive Officer Joan Hooper – Senior Vice President and Chief Financial Officer Kenneth Gianella – Vice President, Investor Relations First Quarter 2021 Earnings Conference Call May 3, 2021 ©2021 ITRON PROPRIETARY ©2021 ITRON PROPRIETARY Q1 2021 Earnings Conferen
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain matters in this presentation and being discussed today, that are not statements of historical fact, constitute forward-looking statements relating to current or future financial performance, management's plans and objectives for future operations, product plans and
Slide 3: Conference Call Agenda
CONFERENCE CALL AGENDA » CEO – Business and Operations Update » CFO – Financial Results » Q&A
Slide 4: Q1'21 Highlights
Q1’21 HIGHLIGHTS » Revenue of $520 million » Adjusted EBITDA of $50 million » Non-GAAP EPS of $0.52 » Free cash flow of $39 million » Successful convertible bond and equity offerings » Record backlog of $3.4 billion; 12-month backlog of $1.3 billion ©2021 ITRON PROPRIETARY Q1 2021 Earnings Conferenc
Slide 5: Bookings and Backlog
BOOKINGS AND BACKLOG $3.3 $3.4 » Book to bill of 1.3 to 1 $3.2 $3.0 $2.9 $2.8 » Bookings of $688M $1.5 $1.3 $1.3 $1.2 $1.3 » New record backlog of $3.4B $1.1 » 12-month backlog growth to $1.3B Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 12-Month Backlog Total Backlog Chart in Billions, actual currency rates
Slide 6: Consolidated GAAP Results: Q1'21
CONSOLIDATED GAAP RESULTS: Q1’21 $ in millions (except per share amounts) Q1 2021 Q1 2020 Change Revenue $519.6 $598.4 -13% Change in constant currency -16% Gross margin 32.2% 28.7% 350 bps Operating income $30.9 $26.4 17% Net income attributable to Itron, Inc. $12.6 $8.7 45% Earnings per share - di
Slide 7: Consolidated Non-GAAP & Cash Results: Q1'21
CONSOLIDATED NON-GAAP & CASH RESULTS: Q1’21 $ in millions (except per share amounts) Q1 2021 Q1 2020 Change Non-GAAP operating income $38.9 $38.5 1% Non-GAAP operating margin 7.5% 6.4% 110 bps Adjusted EBITDA $49.7 $52.0 -4% Adjusted EBITDA margin 9.6% 8.7% 90 bps Non-GAAP net income attributable to
Slide 8: Revenue Year-over-Year Bridge: Q1'21
REVENUE YEAR-OVER-YEAR BRIDGE: Q1’21 -21% -16% +3% -16% $598.4 $519.6 $1.9 $17.7 ($42.9) ($55.5) Q1 2020 Device Networked Outcomes FX Q1 2021 Solutions Solutions Chart in Millions, Quarterly totals reflect actual currencies; all variances other than FX exclude currency impact. Chart includes roundin
Slide 9: Non-GAAP EPS Year-over-Year Bridge: Q1'21
NON-GAAP EPS YEAR-OVER-YEAR BRIDGE: Q1’21 US$ per share $0.57 $0.05 $0.52 ($0.04) ($0.03) ($0.03) Q1 2020 Net Operating Lower Higher FX and Share Q1 2021 Impact Interest Tax Rate Count Expense Quarterly totals reflect actual currencies; all variances other than FX exclude currency impact. Chart incl
Slide 10: Device Solutions Segment: Q1'21
DEVICE SOLUTIONS SEGMENT: Q1’21 Revenue, gross margin and operating margin $ in Millions, actual currency $202 Revenue down 15% and 21% in constant currency $173 » France Linky volumes unusually high in Q1’20 » COVID-related delays, shipments shifting to 2H’21 » Latin America transaction in Q2’20 18
Slide 11: Networked Solutions Segment: Q1'21
NETWORKED SOLUTIONS SEGMENT: Q1’21 Revenue, gross margin and operating margin $ in Millions, actual currency $341 $288 Revenue down 15% and 16% in constant currency » Reduced volumes as projects complete » COVID-19 impacting timing of new deployment starts 39.1% 35.7% Gross margin up 340 bps » Favor
Slide 12: Outcomes Segment: Q1'21
OUTCOMES SEGMENT: Q1’21 Revenue, gross margin and operating margin $ in Millions, actual currency $58 $55 Revenue up 6% and 3% in constant currency » Increase in software license sales » Higher maintenance and professional services Gross margin up 600 bps 37.6% » Favorable solutions mix due to one-t
Slide 13: Debt and Liquidity Overview: March 31, 2021
DEBT AND LIQUIDITY OVERVIEW: MARCH 31, 2021 US$M Debt $921 $61 » Net leverage-street 2.0x at end of Q1’21 $805 » Blended interest rate of 3.1% $400 $346 Free Cash Flow and Liquidity » Free cash flow of $39M $460 » Cash and equivalents of $575M Total Debt 1 Net Debt Convertible & Equity Offering in Q
Slide 14: Impact of Q1'21 Capital Markets Transactions
IMPACT OF Q1’21 CAPITAL MARKETS TRANSACTIONS » Successful completion of convertible bond and equity offerings in Q1’21 » Positive impact of ~$0.15 to full-year non-GAAP EPS guidance NG EPS guidance provided on Feb. 24, 2021 Restated NG EPS guidance for transactions • $2.15 – $2.55 ($2.35 at midpoint
Slide 15: Appendix
APPENDIX
Slide 16: Revenue: FX Impact Summary
REVENUE: FX IMPACT SUMMARY $ in Millions Average USD/Euro: $1.21 Q1’21 vs $1.10 Q1’20 Revenue Q1'21 YoY Change YoY Change Excluding FX Device Solutions $172.8 -14.6% -21.2% Networked Solutions $288.3 -15.4% -16.3% Outcomes $58.5 5.8% 3.4% Total $519.6 -13.2% -16.1% ©2021 ITRON PROPRIETARY Q1 2021 Ea
Slide 17: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES To supplement our consolidated financial statements presented 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, adjusted EBITDA
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS ©2021 ITRON PROPRIETARY Q1 2021 Earnings Conference Call | 18
Slide 19: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS ©2021 ITRON PROPRIETARY Q1 2021 Earnings Conference Call | 19
Slide 20: Thank You
INVESTOR RELATIONS CONTACTS Kenneth P. Gianella Vice President, Investor Relations 669-770-4643 ken.gianella@itron.com Rebecca Hussey Manager, Investor Relations 509-891-3574 rebecca.hussey@itron.com Thank You www.itron.com