ITRI Itron Inc

Itron, Inc. (NASDAQ: ITRI), which is innovating the way utilities and cities manage energy and water, announced today financial results for its third quarter ended September 30, 2024. Key results for the quarter include (compared with the third quarter of 2023):

• Revenue of $615 million, increased 10%;
• Gross profit of $210 million, increased 12%;
• GAAP net income attributable to Itron, Inc. of $78 million, increased $38 million;
• GAAP diluted earnings per share of $1.70, increased $0.83 per share;
• Non-GAAP diluted EPS of $1.84, increased $0.86 per share;
• Adjusted EBITDA of $89 million, increased 29%; and
• Free cash flow of $59 million, increased $30 million.

"Operational momentum continued during the third quarter and solid execution by our team led to results ahead of expectations.” said Tom Deitrich, Itron’s president and CEO. “The market, fueled by growth in energy and water demand, and increasing need to make infrastructure more agile aligns with Itron’s grid edge intelligence platform, uniquely positioning us to help our customers meet or exceed their objectives.”

Summary of Third Quarter Consolidated Financial Results(All comparisons made are against the prior year period unless otherwise noted)

RevenueTotal third quarter revenue increased 10%, to $615 million, due to strong operational execution.

Device Solutions revenue increased 11%, or 10% in constant currency, due primarily to growth in smart water and electric demand.

Networked Solutions revenue increased 8%, due primarily to increased new projects and ongoing deployments.

Outcomes revenue increased 17%, or 16% in constant currency, due primarily to an increase in recurring revenue, services, and software.

Gross MarginItron's third quarter gross margin of 34.1% increased 70 basis points from the prior year due to operational efficiencies.

Operating Expenses and Operating IncomeGAAP operating expenses of $136 million increased $3 million from the prior year. Non-GAAP operating expenses of $131 million increased $2 million.

GAAP operating income of $74 million was $19 million higher than the prior year and non-GAAP operating income of $79 million was $20 million higher than the prior year. Both increases were 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 $78 million, or $1.70 per diluted share, compared with net income attributable to Itron, Inc. of $40 million, or $0.87 per diluted share in 2023. The increase was driven by higher GAAP operating income and interest income, and less 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, strategic initiatives, acquisition and integration, and the tax effect of excluding these expenses, was $84 million, or $1.84 per diluted share, compared with $45 million, or $0.98 per diluted share, in 2023. The increase was due to higher non-GAAP operating income and interest income, and less tax expense.

Both GAAP and Non-GAAP net income and EPS benefited from a favorable resolution of a foreign tax audit resulting in an increase in net income of approximately $14 million or $0.30 cents per diluted share.

Cash FlowNet cash provided by operating activities was $65 million in the third quarter compared with $34 million in the prior year. Free cash flow was $59 million in the third quarter compared with $28 million in the prior year. The increase in free cash flow was primarily due to higher earnings.

Other Measures

Total backlog at quarter end was $4.0 billion compared with $4.2 billion in the prior year. Bookings in the quarter totaled $487 million. 

Q4 2024 Outlook and Full Year 2024 Guidance Update

Outlook for the fourth quarter of 2024 is as follows:

• Revenue between $600 and $610 million
• Non-GAAP diluted EPS between $1.00 and $1.10

Itron's guidance for the full year 2024 has been updated as follows:

• Revenue between $2.428 to $2.438 billion vs. prior guidance of $2.385 to $2.415 billion
• Non-GAAP diluted EPS between $5.28 to $5.38 vs. prior guidance of $4.45 to $4.65

Earnings Conference CallItron will host a conference call to discuss the financial results contained in this release at 10 a.m. EDT on October 31, 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 November 8, 2024 and may be accessed on the company's website at https://investors.itron.com/events-presentations.

About ItronItron is a proven global leader in energy, water, smart city, IIoT and intelligent infrastructure services. For utilities, cities and society, we build innovative systems, create new efficiencies, connect communities, encourage conservation and increase resourcefulness. By safeguarding our invaluable natural resources today and tomorrow, we improve the quality of life for people around the 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 Information

To 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) 242-8448Investors@itron.com

Itron, Inc.

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ITRON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
			Three Months Ended September 30,							Nine Months Ended September 30,
				2024			2023				2024			2023
Revenues
	Product revenues		$	538,249		$	480,355			$	1,598,978		$	1,361,482
	Service revenues			77,213			80,417				228,995			234,978
		Total revenues		615,462			560,772				1,827,973			1,596,460
Cost of revenues
	Product cost of revenues			362,579			332,035				1,076,033			951,666
	Service cost of revenues			43,285			41,534				126,503			127,276
		Total cost of revenues		405,864			373,569				1,202,536			1,078,942
Gross profit				209,598			187,203				625,437			517,518
Operating expenses
	Sales, general and administrative			79,639			76,576				254,023			231,176
	Research and development			51,237			51,644				156,691			154,769
	Amortization of intangible assets			4,814			4,663				13,311			14,433
	Restructuring			(723	)		(615	)			(624	)		36,868
	Loss on sale of business			698			45				656			675
		Total operating expenses		135,665			132,313				424,057			437,921
Operating income				73,933			54,890				201,380			79,597
Other income (expense)
	Interest income			13,420			2,642				22,394			5,968
	Interest expense			(5,605	)		(2,445	)			(9,788	)		(6,479	)
	Other income (expense), net			677			646				695			(1,162	)
		Total other income (expense)		8,492			843				13,301			(1,673	)
Income before income taxes				82,425			55,733				214,681			77,924
Income tax provision				(3,515	)		(15,388	)			(32,124	)		(24,513	)
Net income				78,910			40,345				182,557			53,411
	Net income attributable to noncontrolling interests			951			173				1,559			874
Net income attributable to Itron, Inc.			$	77,959		$	40,172			$	180,998		$	52,537
Net income per common share - Basic			$	1.73		$	0.88			$	3.98		$	1.16
Net income per common share - Diluted			$	1.70		$	0.87			$	3.91		$	1.15
Weighted average common shares outstanding - Basic				44,982			45,462				45,458			45,393
Weighted average common shares outstanding - Diluted				45,839			45,950				46,239			45,768

ITRON, INC.
SEGMENT INFORMATION
(Unaudited, in thousands)
			Three Months Ended September 30,							Nine Months Ended September 30,
				2024			2023				2024			2023
Product revenues
	Device Solutions		$	122,119		$	110,138			$	365,956		$	340,098
	Networked Solutions			390,201			352,771				1,158,857			964,909
	Outcomes			25,929			17,446				74,165			56,475
		Total Company	$	538,249		$	480,355			$	1,598,978		$	1,361,482
Service revenues
	Device Solutions		$	619		$	631			$	2,084		$	2,085
	Networked Solutions			26,512			32,200				78,076			94,460
	Outcomes			50,082			47,586				148,835			138,433
		Total Company	$	77,213		$	80,417			$	228,995		$	234,978
Total revenues
	Device Solutions		$	122,738		$	110,769			$	368,040		$	342,183
	Networked Solutions			416,713			384,971				1,236,933			1,059,369
	Outcomes			76,011			65,032				223,000			194,908
		Total Company	$	615,462		$	560,772			$	1,827,973		$	1,596,460
Gross profit
	Device Solutions		$	33,342		$	26,919			$	94,637		$	75,351
	Networked Solutions			149,648			135,203				452,830			362,852
	Outcomes			26,608			25,081				77,970			79,315
		Total Company	$	209,598		$	187,203			$	625,437		$	517,518
Operating income
	Device Solutions		$	26,485		$	17,675			$	71,913		$	45,837
	Networked Solutions			115,231			102,503				349,353			266,052
	Outcomes			11,186			10,280				30,928			35,867
	Corporate unallocated			(78,969	)		(75,568	)			(250,814	)		(268,159	)
		Total Company	$	73,933		$	54,890			$	201,380		$	79,597
Total Gross Margin				34.1	%		33.4	%			34.2	%		32.4	%

ITRON, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)			September 30, 2024				December 31, 2023
ASSETS
Current assets
	Cash and cash equivalents		$	982,507			$	302,049
	Accounts receivable, net			338,769				303,821
	Inventories			276,616				283,686
	Other current assets			156,642				159,882
		Total current assets		1,754,534				1,049,438
Property, plant, and equipment, net				120,449				128,806
Deferred tax assets, net				290,259				247,211
Other long-term assets				40,804				38,836
Operating lease right-of-use assets, net				37,641				41,186
Intangible assets, net				47,969				46,282
Goodwill				1,073,757				1,052,504
		Total assets	$	3,365,413			$	2,604,263
LIABILITIES AND EQUITY
Current liabilities
	Accounts payable		$	152,510			$	199,520
	Other current liabilities			61,151				54,407
	Wages and benefits payable			118,634				135,803
	Taxes payable			14,273				8,636
	Current portion of warranty			13,807				14,663
	Unearned revenue			161,096				124,207
		Total current liabilities		521,471				537,236
Long-term debt, net				1,240,950				454,827
Long-term warranty				7,925				7,501
Pension benefit obligation				64,886				63,887
Deferred tax liabilities, net				622				697
Operating lease liabilities				28,820				32,656
Other long-term obligations				132,052				176,028
		Total liabilities		1,996,726				1,272,832
Equity
	Common stock			1,673,916				1,820,510
	Accumulated other comprehensive loss, net			(78,186	)			(81,190	)
	Accumulated deficit			(247,411	)			(428,409	)
		Total Itron, Inc. shareholders' equity		1,348,319				1,310,911
	Noncontrolling interests			20,368				20,520
		Total equity		1,368,687				1,331,431
		Total liabilities and equity	$	3,365,413			$	2,604,263

ITRON, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)			Nine Months Ended September 30,
				2024				2023
Operating activities
	Net income		$	182,557			$	53,411
	Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation and amortization of intangible assets		40,979				42,013
		Non-cash operating lease expense		11,481				12,197
		Stock-based compensation		32,067				20,531
		Amortization of prepaid debt fees		3,669				2,761
		Deferred taxes, net		(17,509	)			1,938
		Loss on sale of business		656				675
		Restructuring, non-cash		(171	)			910
		Other adjustments, net		(838	)			(318	)
Changes in operating assets and liabilities, net of acquisition and sale of business:
	Accounts receivable			(31,169	)			(37,832	)
	Inventories			5,532				(48,280	)
	Other current assets			4,102				(43,240	)
	Other long-term assets			(1,391	)			3,392
	Accounts payable, other current liabilities, and taxes payable			(39,054	)			220
	Wages and benefits payable			(18,010	)			17,361
	Unearned revenue			33,453				38,619
	Warranty			(476	)			(2,177	)
	Restructuring			(19,816	)			23,966
	Other operating, net			(27,736	)			(9,071	)
		Net cash provided by operating activities		158,326				77,076
Investing activities
	Net proceeds (payments) related to the sale of business			405				(772	)
	Acquisitions of property, plant, and equipment			(20,878	)			(18,304	)
	Business acquisitions, net of cash and cash equivalents acquired			(34,126	)			—
	Other investing, net			212				73
		Net cash used in investing activities		(54,387	)			(19,003	)
Financing activities
	Proceeds from borrowings			805,000				—
	Issuance of common stock			4,317				2,366
	Payments on call spread for convertible offering			(108,997	)			—
	Repurchase of common stock			(100,000	)			—
	Prepaid debt fees			(21,617	)			(517	)
	Other financing, net			(2,618	)			(4,488	)
		Net cash provided by (used in) financing activities		576,085				(2,639	)
Effect of foreign exchange rate changes on cash and cash equivalents				434				(2,670	)
Increase in cash and cash equivalents				680,458				52,764
Cash and cash equivalents at beginning of period				302,049				202,007
Cash and cash equivalents at end of period			$	982,507			$	254,771

About Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared 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, free cash flow, and constant currency. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and other companies may define such measures differently. For a reconciliation of each non-GAAP measure to the most comparable financial measure prepared and presented in accordance with GAAP, please see the table captioned Reconciliations of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures.        

We use these non-GAAP financial measures for financial and operational decision making and/or as a means for determining executive compensation. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and ability to service debt by excluding certain expenses that may not be indicative of our recurring core operating results. These non-GAAP financial measures facilitate management's internal comparisons to our historical performance, as well as comparisons to our competitors' operating results. Our executive compensation plans exclude non-cash charges related to amortization of intangibles and certain discrete cash and non-cash charges, such as restructuring, loss on sale of business, strategic initiative expenses, or acquisition and integration related expenses. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. We believe these non-GAAP financial measures are useful to investors because they provide greater transparency with respect to key metrics used by management in its financial and operational decision making and because they are used by our institutional investors and the analyst community to analyze the health of our business.

Non-GAAP operating expenses and non-GAAP operating income – We define non-GAAP operating expenses as operating expenses excluding certain expenses related to the amortization of intangible assets, restructuring, loss on sale of business, strategic initiative expenses, and acquisition and integration related expenses. We define non-GAAP operating income as operating income excluding the expenses related to the amortization of intangible assets, restructuring, loss on sale of business, strategic initiative expenses, and acquisition and integration related expenses. Acquisition and integration related expenses include costs, which are incurred to affect and integrate business combinations, such as professional fees, certain employee retention and salaries related to integration, severances, contract terminations, travel costs related to knowledge transfer, system conversion costs, and asset impairment charges. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the effect of expenses that are not related to our core operating results. By excluding these expenses, we believe that it is easier for management and investors to compare our financial results over multiple periods and analyze trends in our operations. For example, in certain periods, expenses related to amortization of intangible assets may decrease, which would improve GAAP operating margins, yet the improvement in GAAP operating margins due to this lower expense is not necessarily reflective of an improvement in our core business. There are some limitations related to the use of non-GAAP operating expenses and non-GAAP operating income versus operating expenses and operating income calculated in accordance with GAAP. We compensate for these limitations by providing specific information about the GAAP amounts excluded from non-GAAP operating expense and non-GAAP operating income and evaluating non-GAAP operating expense and non-GAAP operating income together with GAAP operating expense and operating income.

Non-GAAP net income and non-GAAP diluted EPS – We define non-GAAP net income as net income attributable to Itron, Inc. excluding the expenses associated with amortization of intangible assets, amortization of debt placement fees, restructuring, loss on sale of business, strategic initiative expenses, acquisition and integration related expenses, and the tax effect of excluding these expenses. We define non-GAAP diluted EPS as non-GAAP net income divided by diluted weighted-average shares outstanding during the period calculated on a GAAP basis and then reduced to reflect any anti-dilutive impact of the convertible notes hedge transactions. We consider these financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income. The same limitations described above regarding our use of non-GAAP operating income apply to our use of non-GAAP net income and non-GAAP diluted EPS. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP measures and evaluating non-GAAP net income and non-GAAP diluted EPS together with GAAP net income attributable to Itron, Inc. and GAAP diluted EPS.

For interim periods the budgeted annual effective tax rate (AETR) is used, adjusted for any discrete items, as defined in Accounting Standards Codification (ASC) 740 - Income Taxes. The budgeted AETR is determined at the beginning of the fiscal year. The AETR is revised throughout the year based on changes to our full-year forecast. If the revised AETR increases or decreases by 200 basis points or more from the budgeted AETR due to changes in the full-year forecast during the year, the revised AETR is used in place of the budgeted AETR beginning with the quarter the 200 basis point threshold is exceeded and going forward for all subsequent interim quarters in the year. We continue to assess the AETR based on latest forecast throughout the year and use the most recent AETR anytime it increases or decreases by 200 basis points or more from the prior interim period.

Adjusted EBITDA – We define adjusted EBITDA as net income (a) minus interest income, (b) plus interest expense, depreciation and amortization, restructuring, loss on sale of business, strategic initiative expenses, acquisition and integration related expenses, and (c) excluding income tax provision or benefit. Management uses adjusted EBITDA as a performance measure for executive compensation. A limitation to using adjusted EBITDA is that it does not represent the total increase or decrease in the cash balance for the period and the measure includes some non-cash items and excludes other non-cash items. Additionally, the items that we exclude in our calculation of adjusted EBITDA may differ from the items that our peer companies exclude when they report their results. We compensate for these limitations by providing a reconciliation of this measure to GAAP net income.

Free cash flow – We define free cash flow as net cash provided by operating activities less cash used for acquisitions of property, plant and equipment. We believe free cash flow provides investors with a relevant measure of liquidity and a useful basis for assessing our ability to fund our operations and repay our debt. The same limitations described above regarding our use of adjusted EBITDA apply to our use of free cash flow. We compensate for these limitations by providing specific information regarding the GAAP amounts in the reconciliation.

Constant currency – We refer to the impact of foreign currency exchange rate fluctuations in our discussions of financial results, which references the differences between the foreign currency exchange rates used to translate operating results from the entity's functional currency into U.S. dollars for financial reporting purposes. We also use the term "constant currency", which represents financial results adjusted to exclude changes in foreign currency exchange rates as compared with the rates in the comparable prior year period. We calculate the constant currency change as the difference between the current period results and the comparable prior period's results restated using current period foreign currency exchange rates.

The tables below reconcile the non-GAAP financial measures of operating expenses, operating income, net income, diluted EPS, adjusted EBITDA, and free cash flow with the most directly comparable GAAP financial measures.

ITRON, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
(Unaudited, in thousands, except per share data)
TOTAL COMPANY RECONCILIATIONS				Three Months Ended September 30,							Nine Months Ended September 30,
					2024			2023				2024			2023
	NON-GAAP OPERATING EXPENSES
		GAAP operating expenses		$	135,665		$	132,313			$	424,057		$	437,921
			Amortization of intangible assets		(4,814	)		(4,663	)			(13,311	)		(14,433	)
			Restructuring		723			615				624			(36,868	)
			Loss on sale of business		(698	)		(45	)			(656	)		(675	)
			Strategic initiative		—			5				—			5
			Acquisition and integration		(248	)		(28	)			(656	)		(117	)
		Non-GAAP operating expenses		$	130,628		$	128,197			$	410,058		$	385,833
	NON-GAAP OPERATING INCOME
		GAAP operating income		$	73,933		$	54,890			$	201,380		$	79,597
			Amortization of intangible assets		4,814			4,663				13,311			14,433
			Restructuring		(723	)		(615	)			(624	)		36,868
			Loss on sale of business		698			45				656			675
			Strategic initiative		—			(5	)			—			(5	)
			Acquisition and integration		248			28				656			117
		Non-GAAP operating income		$	78,970		$	59,006			$	215,379		$	131,685
	NON-GAAP NET INCOME & DILUTED EPS
		GAAP net income attributable to Itron, Inc.		$	77,959		$	40,172			$	180,998		$	52,537
			Amortization of intangible assets		4,814			4,663				13,311			14,433
			Amortization of debt placement fees		1,759			897				3,538			2,629
			Restructuring		(723	)		(615	)			(624	)		36,868
			Loss on sale of business		698			45				656			675
			Strategic initiative		—			(5	)			—			(5	)
			Acquisition and integration		248			28				656			117
			Income tax effect of non-GAAP adjustments		(504	)		(293	)			(891	)		(10,156	)
		Non-GAAP net income attributable to Itron, Inc.		$	84,251		$	44,892			$	197,644		$	97,098
		Non-GAAP diluted EPS		$	1.84		$	0.98			$	4.27		$	2.12
		Non-GAAP weighted average common shares outstanding - Diluted			45,839			45,950				46,239			45,768
	ADJUSTED EBITDA
		GAAP net income attributable to Itron, Inc.		$	77,959		$	40,172			$	180,998		$	52,537
			Interest income		(13,420	)		(2,642	)			(22,394	)		(5,968	)
			Interest expense		5,605			2,445				9,788			6,479
			Income tax provision		3,515			15,388				32,124			24,513
			Depreciation and amortization		14,716			13,645				40,979			42,013
			Restructuring		(723	)		(615	)			(624	)		36,868
			Loss on sale of business		698			45				656			675
			Strategic initiative		—			(5	)			—			(5	)
			Acquisition and integration		248			28				656			117
		Adjusted EBITDA		$	88,598		$	68,461			$	242,183		$	157,229
	FREE CASH FLOW
		Net cash provided by operating activities		$	65,301		$	34,087			$	158,326		$	77,076
			Acquisitions of property, plant, and equipment		(6,623	)		(5,806	)			(20,878	)		(18,304	)
		Free Cash Flow		$	58,678		$	28,281			$	137,448		$	58,772