ITRI - Earnings call transcript Q1 2022

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Operator

Thank you, operator. Good morning and welcome to the Itron’s First Quarter 2022 Earnings Conference Call. We issued a press release earlier today announcing our results. The press release includes replay information about today's call. A presentation to accompany our remarks on this call is also available through the webcast and on our corporate website under the investor relations tab.

we and Deitrich, President Joan Financial today Chief President and call Officer. Officer; Executive Hooper, the have Itron’s Tom and Chief On Senior Vice

using the prepared to we’ll our the open Following take described. remarks, questions the process operator call

over the presentation remind financial Tom, please our Safe Harbor Before you call let our of I to turn non-GAAP and me statement.

between non-GAAP of Our earnings Reconciliations GAAP overall we understanding our believe are our and that non-GAAP available of release Relations and on earnings and differences financial financial measures financial release enhances information presentation our performance. current include website. future in the Investor and

XX-K our made operating Actual making We forward-looking could these reports of comments discussed from because expectations statements be current during These assumptions insight and differ future statements of call based expectations Commission. were our call, forward-looking presented Exchange environment. statements. made estimates to Factors financial comments factors statements XXXX release faith will Form this uncertainties. or the we All any section are that with and update to in earnings Securities not today, and and and are undertake a to provide conference to forward-looking. in and May results during of this do company Risk our the subject today’s that materially good current on and attempt are appropriate that materially other Materials XX, are and may the and in and filings change any risks duty

our turn I'll CEO four to turn over to page the And please presentation. Now the Tom Deitrich. call in

Tom Deitrich

joining morning and Thank you, us. Good you thank for Ken.

provide EBITDA free $X first like from of $XX but and I adjusted million. hear million. Revenue earnings million; shortly, was cash to up Joan was was flow will share $X.XX coming brief details quarter. the overview Non-GAAP per would $XXX quarter a You was

book-to-bill approximate bookings were ratio first an $XXX Turning million with five, quarter our of to slide X.X.

for lumpiness Total least quarter-to-quarter remains are we in approximately the $X.X record expected, mechanical of with targeting near some the the excluding business associated backlog year. bookings in is approximately we still that of gas non-communicating ratio C&I backlog completed our billion at million $XX at While first book-to-bill one-to-one quarter. a sale levels

backlog XX-month grow now outcome continues up our network a primarily is by approximately to record to $X.X Our of segments. and steadily driven and solutions new billion

quarter. Turning six, to will slide insights now some first on provide I operational the

a will provide also distributed intelligence vectors of are needs, and with of advanced is units progress have leader infrastructure of environment proof sale address February centric for our our I field. manufacturing cumulatively solutions the asset growth continues of mentioned of business light enhancing solution and execution helping closed valued for customers future networks to the aging grown million X.X and customer point by continues dynamic C&I be mechanical optimize As previously, utilities in renewables, our our Itron resiliency for non-communicating and towards preparing up solutions is look security, in be as running and This to with as applications of strategy to we Itron outcome we the Market important as over the control another on intelligence and address healthy the XX. themselves electric steadily demand and reliability. grid grid management but pyramid higher very suite proof our proliferation significant the to grid to business visibility millions generation of business. this which The optimizer endpoints an distributed through our increasing outcomes enabled model. endpoints that footprint combined capabilities for grid our distributed evident vehicles,

remain steadfast strategy. we current the with We pleased are extremely in solutions demand our and market our for

XXXX. as revenue stayed impacting impact limited the our our first we pressures inflationary well call, $XXX million, that supply will into and we by network anticipate the over that majority we with operations vast constraints continue the of our solution constraints to our supply last However, segment. In in earnings semiconductor quarter, estimate

As experienced cancellations, prior in customers. loss or discussed of quarters, have we no

actively of are addressing We challenges supply the limited environment. temporal inflationary a

continue improved supply overcome to We and utilization. drive shortages efforts chain to factory

of financials. to to with also first pressures combined mitigate I cost approach our significant I in are We a had am working efforts multiple off cover discretionary overcome with now hand that disciplined have these to will results impact more detail. actions, Joan our to operational current price proud inflationary period on-going our spending. team's to headwinds initiatives on quarter

Joan Hooper

Thank Tom. you,

be As and our to discussed on continued to shortages pressures. supply slide our for of by results. a significantly results first chain call, consolidated summary quarter cost seven Please impacted GAAP last turn earnings

the which last revenue quarter versus or The to shortages, margin X% quarter or driven First lower share net $XXX than declined per of Gross last supply XX.X%, limited basis year-over-year demand. manufacturing customer to ability constant $X.XX costs component for year, points due our year due million meet income diluted to year. prior supply XXX compared $XX X% decrease was share the with of was in currency. the per GAAP by or constraints. approximately and $X.XX in million higher inefficiencies diluted $X million

the $X.XX was non-GAAP $XX Adjusted EBITDA eight, income Non-GAAP operating share. income $X was diluted slide on per metrics for $X net million million. non-GAAP quarter Regarding million. was or

is gas X% impacting year-over-year in customer offset million, slide $XX lower $XXX certain as constant license was Revenue Device services decrease year-over-year constant a constant C&I ramp shortages mechanical attributable or well to was million the million, and including a revenue an Looking in product currency due sales due a $X exiting The the completed was by decline was versus revenue million The was to as deployments. to software prepaid on or of decrease basis. our ability segment year. nine, X% million, non-communicating component lines business. EMEA. segment currency $XX component product at recently a or Solutions Solutions business demand, XX% sale in decline million in revenue $X partially decline meet on $XXX outcome particularly currency. by new shortages our The in decrease Network to last

decrease a by the in our disappointing, market to driven service. as core networks U.S. growth strong continues was be While

foreign changes currency resulted in Lastly, $XX revenue lower prior million year. the versus

to EPS on bridge non-GAAP Moving the year-over-year slide XX.

impact diluted had profit non-GAAP QX and per lower in performance share a was shortages Our count And driven to A per $X.XX input share $X.XX Net gross by due $X.XX EPS operating costs. the the decrease resulted prior resulted negative from currency down year. year-over-year. share share a $X.XX increase higher year-over-year. negative lastly, had rate foreign components higher per Lower and in changes interest a a in tax $X.XX expense impact. $X.XX

slides and due constraints. gross due to due to XXX Operating operating by gross manufacturing lower margin expenses. Margin pressures. related was fall operating basis margin points XXX lower decreased million was Outcomes to of through to revenue was primarily pressures component XX% X%. segment. improved discuss margin margin of with XX Turning compared from inflationary and points margin operating and inefficiencies with This gross the operational XX, the XXX Gross margin revenue Gross points through results points year XXX Outcomes higher year. of due Network partially business XXX to prior $XXX of the $XX manufacturing year-over-year. with basis XX%, of cost Operating was QX lower due million basis cost investment. XX% to XXX million profit. increase efficiencies through shortages XX%, was segment $XXX lower Solutions margin of basis decreased within the points fall inflationary inefficiencies XX%. by last with to R&D the gross an the declined due component profit. gross year to the margin I'll basis Solutions offset revenue The Device declined related prior of to points than increase was basis of

our C&I In Turning summary, QX. to challenges period our remained million flat of the in solutions in from equivalents variable $XXX were million compared and our leverage same $XXX continuing first over Free million sale at compensation cover at net and optimistic longer Net for debt. the financial first debt $X by to end remain primarily of affect end the to term supply up high, and inflationary due We year. demand The quarter pressures decrease this with the million, the I'll business. our million. Cash the year. financial $XX was payments model. remained driven strategy flow of and sequentially, gas last quarter are cost made at about proceeds while Total and slide the debt results. was mechanical higher $XX cash X.X million XX, was times was liquidity $XXX

pricing discretionary impact environment and macro control, the continue mitigate actions to that will the help within discipline the to and our headwinds. including the are We monitor manage areas spending of

Tom. call to the turn back I'll Now

Tom Deitrich

Thank you, Joan.

As continue the persisting Joan our constructive relationships we customers. anticipate near future are the conditions on due enjoy mentioned, term, we at to we least while with in these to collaborative the

we And spirit, excited and more the customers essential the use cities to of customers pride I'm world we our forward services weeks. that report be city publishing will shapes of helping take around gain a that With few advancing form to of creating utilities water do providers modern and our We serving around look the energy, our resources. by Itron society. in globe and of customers the ESG As over and foundation world. Itron’s XXXX control at insights announce in the vision globe, our work essential resourceful in a the

to how reduction are release help our and new carbon of is along greenhouse on footprint another those We our we This positive customers Itron in with combined targets. step XXXX in look ESG sharing the forward with progress gas proud solutions of journey. insights of our the ESG the made their efforts, reduce details

communities a for tomorrow is more We our we of you the make and is joining and employees partners, more the committed a purpose energy some It Thank line a customers, Creating resources please statement. water helping Operator, today in embedded creating questions. resourceful most better have open the today. we are serve. than Itron's world for and for to that DNA.

Operator

Thank first from Moll question with Tommy [Operator you. And Instructions] comes our Stephens.

Tommy Moll

for Good morning, and thanks my questions. taking

Tom Deitrich

Tony. Morning,

Tommy Moll

guidance. full think I missed to or your it Good start to I update the don't outlook. an XXXX regarding the on in morning, comments or release Tom. year I slides wanted

give why just the we update you an address here head we just provide on insight on in any context Can don't full today? figured year here. it or any to I that slides us So there the have around

Joan Hooper

the I it in Historically, we August. in midyear for year full then the Tommy give guidance Yes and in February can only take we that. update

given So interim historically never guidance. we've

Tommy Moll

chain compared you topics speak constraints, can in quarter of a ago? talked of then we when and a see with just Okay. versus supply I these pressures guess inflationary quarter you ago, cost today what terms some to just maybe operating to you the saw what and qualitatively environment, hit you

Tom Deitrich

guidance When by And can indeed I jump semiconductor be half our Joan that time, are year. the on that prepared of referenced supply remarks, the Tommy. exactly availability. we at we in certainly The constraints as revenue, in referenced, would the in the seeing. in February, we what as would, is us one, currently that's first anticipated with did were gated

During quarters. the by the certainly saw times quarter, increase prior but couple lead saw rapid of increase, on a a like not just we days, we semis over

had during had like which our things with parts. supply the Certainly we're as of of working it's what are but kind more up just ability that the if creeping also some just days few downs, up, than instability those we go last but deeper And a we've year, good. CMS, definitely create still it than its yet, quarter, we there's on way is nor level has look to during is indeed, all chain. that's way heavily we significantly, the which past what's supply more on and see the chain, on instability. lock But has amount reduce forward. we component a hand started certainly going into it's, inventory fair constrained to through If few of So of days, a not the China we of see I inventory to it is, the look days at historically,

and be will, if golden to term it. lack to So something to more And monitor square we've and those recovery. you of really we better up we to those, really got inventory, but it's last build that's through set not a of for that what screws, would full a release free pace work able

just and would gaining backlog the the time in caught side, little yet. speed the actions that second inflationary and the of On we're of It and your velocity bit work the inflation what while actions, those terms certainly is we inflation things go part through our terms takes by pressures can to question, underway. pricing and, pricing ahead. of say offsetting fully I up haven't up encouraged for is, the the But where have that roll in quarters through fully of in in a outlook

Tommy Moll

And Thank it. you. appreciate I'll back. turn I it

Operator

question & our Noah And next Kaye from Oppenheimer comes Co. with

Noah Kaye

and Right, smarter the create European those some of terms may given how Maybe that some the continue up. at on impacts the get your to in gas cost the net Good to because in start about time, Ukraine, morning, pressures think consume to thanks are dependence taking same but about going Russia how just countries of opportunities, questions. operations, some EMEA, energy. of they imagine maybe inflationary for of energy prices particularly first Russian to

little bit opportunities so are what you've talk seen operations And So and can the trending? far? about the you a how

Tom Deitrich

Noah, morning, in good that it's quite here, take one. the Tom small. direct Start can really Ukraine, Russia, of Again, perspective Belarus, I from revenue

So revenue the impact a top important perspective deminimis in and particularly not countries is to line about. talk those from

will to that also but certainly impact, into and in are that's anywhere we very countries that direct from any supply of lot raw certainly tier in created there's terms it materials, When the it it metals, third a are low It's comes have that and those which And our watch, rest Europe, macro create area. pressure hasn't of In has But gases would is though supply positive accelerate more potentially in chain. that's that something Western countries to to to quarters challenges perspective sources secure more terms European fourth would in the item down ahead produced supply of monitor it for supply how the industry. through impacts get need macro what exactly to this trends to customers of and broader It need something and clearly the situation, now. to could the that's are systems point, nicely and the supply the to it. and the to our we certainly us slow be to for demand. technologies, on of it that be energy look very Europe. economically for but in that an some the opportunity from watch absolutely to and balance those their the work through transition into that, independence understand grid again, that accrues put from And can where of performance they visibility for will active energy of how different energy to a lot operations a the conversations kind of ways exactly play renewables customer

Noah Kaye

is And the of in. or be share mean, priority functionally, come I solutions how increase in about Whether first order mix we right. how where or the your not Yes. your transitions, renewables just we everything. to smarter that's

least a you market, Do of year-over-year think the that in the its benefit from once So sales, at to bit sort to around little product of was finds little EMEA. the footing? I outcomes ahead? quarters in bit turn more a bit starts a you coming see outcomes hear curious it lower an about European Do

Tom Deitrich

play. and to operations costs part do outcomes utilities that do. the much need for visibility that legacy can globally, types some that the on to doing. specifically much, optimistic this nicely and some the important about legacy exactly certainly continues areas of growth macroeconomic ability which truly quarter very can in understand an for that's into you're that And I talking us continue The us. analyze grow were eagerly solution other the to what the monitoring operations, we during based that's you're we're about, of to energy was the get but within solutions, more what past about what is do to Europe, But scale and really ahead. of quarters prepay visibility a things And ability lower anticipating that work

Noah Kaye

Yes, hop add then more I'll and and back. in just to one

more couple the just it you prepared aggressive at You've on in incremental backlog and that Are little starts you there. this you XQ in all booking we that? to some remarks point? that on, what's got detail call Or sort pricing later started benefit more bit booked this business take of love Q&A, open if market some, in pricing that pricing during in some the And is business, a on? to Or is want of mentioned a to the and getting times chip actions. it more

Tom Deitrich

current new in for shorter question a more of of those priced that level I think in the components flexibility being above, business, more terms Future such bit of reflective a pricing horizons the are marketplace space the there's written indexing certainly, all or term that's three materials. of answer in different at things of, cost term your And are pricing to a there. in their in being sort. structures there's contracts way and that is

active is, of a want an continuing work work and we We've the some progress to on. some discussion, we're all believe very we're don't we one we've and percentage made backlog push it, working that area terms itself lead that that to of very that. you we're on In hard backlog, obviously is I the to to we repriced have continuing that increase have. and to and on to continue the

Noah Kaye

there. Great. you. I'll Thank leave it

Tom Deitrich

Thank you.

Operator

from Raymond Pavel our question with James. come And next Molchanov will

Pavel Molchanov

is Europe seeing in you places were smart many meter more these very along not now positioned initial more and they're back going a smart Thanks for cycle. lines cases, specifically are are already is before of the where those replacement high? and essentially get countries the opportunities Also, how penetration question. the Europe, XXXX and wave taking about like to rollout, that in in What in meter war, question there Itron at although replacement about Italy, looking

Tom Deitrich

beginning of In the not two and it of really tends those the horizon in quote terms Western work, bag mixed looking in of Gen major some terms on discussions to really just a across economy. bit countries of, little types a so be are others European and

little in type even active kind to cases, of things, solution get all there data we've control a it's itself, on how Some the better about on more grained the are first whether and control the a of what is really but finer side how than it, discussion rollout of increase past. grid better seen in still the the out to gen visibility first the with or gen value distribution a in bit

I So on waiting wholly two gen dependent would we're those say not to for come along. waves

kinds if We more us, the network continue of on bit a streetlight deal, it's activities, continue if we'll cities to to major based distribution to of to of smart holistically. play last automate a that's be solutions likely ahead. the anticipate work city on would the the another with some been customers in component active really we be would able quarters things across it's area to of and couple for to it's in pretty the be European But business more a of selectively, kind the the continue is it quarters, side, in

Pavel Molchanov

latest About M&A, last those. the of about what but about your shortly any meeting, of is and kind acquisition we after you're thinking opportunities, moving of this year analyst we've talked a forward with pipeline on current

Tom Deitrich

pretty the monitor landscape to continue We nicely.

in, to the the for, on similar and past, commented in where balance side unchanged course, In have we on. that areas the technology outcome area are is really things that probably what is scalable we look of of the for would areas the market where to based be, scalable real technologies, completely will interest is bet I Our the what like do marketplace to will will look to where environment go. the trying assets be things on based in about to software to based thoughtful will obviously, those macroeconomic what want on would grow likely and look valuations the

from areas on-going of open monitor in continue and we focus an the will are comments that unchanged So to past. the discussion

Pavel Molchanov

Appreciate it.

Tom Deitrich

Thank you.

Operator

with Ben Baird. [Operator Instructions]. we'll hear And Kallo next from

Ben Kallo

you backlog Thanks have constraints? they everyone. taking And for up talked competitive not if that you customers when Tom, that advantage, and in comes up your there's a if or morning, about do, good face on-going remarks, Hey, think same I competitors about thing in may your with -- no talk follow becomes question. the cancellations. those see in discussions for they with. prepared maybe But things, backlog customers, the can my some the in of then but a that they having discussions, I'll your

Tom Deitrich

Sure.

today customer I and terms projects. carry are to they People want that constraints, So to would the with tenor. we're in them of frustrated too. characterize relative on discussions because backlog frustrated tone in place supply And and appropriate as their and

their is. So one we're hands aligned throwing is on No walking away. and up what the problem

some that, hardware work We how sure that the and clearly projects other to also there area term customers get that material to work going and eager say scheduling in are making not ability would or using continue in as with they're to in would we're constraints hold to so commercial rent do on kind near conversation is or quickly that. future their longer customer spend I placing anyone that it but or becomes perspective, it to their that with really supply there's work that term the have install but discussions environment really for pressure capital planning available, reason into change of how rollout activities. any and a like and a things use customers as back I projects commitment seen From to changes no on

it's In of effect. fact, kind the almost opposite

job with the resiliency better into plays where All of and their that tightened data cyber pandemic do have eager considerations customers improve protecting in and reliability. Russia kind have. the nicely portfolio of for and their to are recent in to war products has trends which security assets a The accelerated customers place we business looking Ukraine and that are pre were automate processes of

moving things. grappling in marketplace. to common the that don't I has changed customers with or where seen are supply I ideas we're of quite or competitors [ph] the any So picot constraints haven't about some given to hints,

Ben Kallo

how, on to in if of focus, just you outcomes sales But, as backlog. think outcome have And maybe the you before sales. could you with parse out the outcomes then could, have have networks business the and out, you I Great. there cadence but

And should that as well? forward we talk how and timing to the cadence you. think Thank you could us moving that, so about just about of

Tom Deitrich

Sure.

built, put for if perspective applications lag to So data into network, tends case that adding months. to the and from new of network incremental the lens let's from to Itron’s five depending customers tend happen, outcomes it on to you XX will, their it, a deployment those being to able ability to territory. network an used projects to the monetize in months two are, an but run, is it Once XX years territory, the at the looking will say, by size

new there's time that set go that. be after the then use XX implemented. that, come months get it And with up So then services months in, networks installed that on to and cases as and of will go revenue one new and back starts along to XX recurring to

kind the like. general of So look would flow that's what and cadence

continues it those we're some a terms ideas definitely we've in customers a the they to liked the and sell pace network As see said, of. a scaling way applications have the that customers the got a bit things X millions the prepared to aren't speed visibility But plus in field And in have of shying want utilities go new discussions. in on really it's timing. the and of customers exciting able running is the capable which and it's which on something and number has think to environment with of part of really and in I've those, terms at The they're referenced at speed effect from deployed current applications remarks. to to that the really kinds of endpoints, it away be do constrained incremental knock million those commercially. moment, sales activity And is the opportunities to the to a deployments at applications different exciting That of be the for in new DI endpoints is, new they for to up.

Ben Kallo

very you much. Thank

Operator

Stanley. And Lynagh our Connor from next comes with question Morgan

Connor Lynagh

in how on that there? should Yes, sustainability to of obviously, think your nice wanted about thoughts you speaking improvement goals Wondering there. we your start thanks. business sequentially move the the as least longer a I device in operating around that, term at margins profitability solutions, model towards of

Joan Hooper

You to speak want Tom? up me

Tom Deitrich

Yes, I'll on go you. start, tag Joan, maybe you ahead,

Joan Hooper

standpoint term remain Yes, margin of the from so what was targets, to from we kind or a October, guess in margin. they it percent of longer unchanged back XX I gross so discussed XX

So make think we're of is we sense. that to do one lines one that portfolio some levers the big we key the of the shedding really sure product and to don't optimizing that have makes just

of was that the sale the and Dresser So business the for includes to us that completed at end February. of

low. improvement good So was a from abnormally bit did a little QX have yes, they QX.

to at constraints quarter have continue expect we XX.X%, an that impact. Certainly would grow. to this So, the

our constraints, of have as inflation. the pricing of we So well, to quite as caught we extent there's can't the to inefficiencies that in sort, factories the and and supply things up mentioned, demand, some haven't meet actions Tom

device the targets expect improve continue would margins time. And again, not over have I long term to So to changed.

Connor Lynagh

certainly, year, was we that consistent and just systemic that this is I question if in the think you And cadence about escalating question on think data XXXX, Is or the I sort the was response year. Okay, a two got back I that is, Or something But maybe guess alluded to the in otherwise it. anyway, remarks. to look then at in to prepared outcomes, business margins there that's R&D of XXXX higher. another being the, the should points through pretty trend? volatile

Joan Hooper

are the from lumpiness business two the reasons. you've subscale. it quarter-to-quarter, going margins some scale given One the would overall kind one you've software and I got outcomes really small can say the create the is other that still Yes, be scale for so segments of than of time into then is to sales of got, lumpier business,

you're and quarter sales to so lumpiness. two or is going one in And not need in you software quarter, one other and some all get the

rhythm quarter. don't I be think business. says that to point a lumpy I until every to it's little starts a in grows natural always So going QX you bigger could it a low just bit and there's It's

Connor Lynagh

right, All fair enough. Thank you.

Operator

Instructions] next EF Chip [Operator will Hutton. And our with from Moore come question

Chip Moore

taking Morning, thanks question. the for

deeper updates gave domestic a you're from CapEx dive EMEA, You of IOUs healthy maybe what some couple nice over the seeing distribution the the on It looks major you at years. bit market. could is in us least very projections, like next on

other or things So whether activity it's RFP tracking. you're

Tom Deitrich

distribution, U.S. how for once aren't their we've last we areas and are those versa. on activity, ratio of add teaming activities are do a solar to of in that automation, to behind about are rooftop things healthy Sure, of the is as point the of as two in in dialogue, what diffuse that and Any gas lot try second more analytics, depending AMI A at half we've streetlight and the in of to U.S. a EVs very lot is, electricity or a on we to the market common a capability water, thinking it generation, view, are use a are interest able streetlights customer be that Those network looking where active asset really terms like of in much generation further kinds understand the the from lot thinking quarters from people backlog, of a of point really market is a pipeline in combination which same network or area view, to vice a able a network canopy of lot you is to have and deals automation, utilities or or or, into meter earlier. batteries seen as is that traction it, up we're between pipeline as talked lot our seen a became interest and as look extremely largest active. areas and another the well of commented about market what that use and be a are to couple would like. interest detecting over visibility about deployed service or water book-to-bill grid. But distributed

any the there. see rules while activities, that activity. or drafted spending and but We as no out to really slowing everyone written, knows how not of the rules in, impact that in one's current being through opportunities waiting have And are seen real are for there's flows that that's those infrastructure down help contemplation

So that there's more into technologies, flow our opportunity I for to and as think money practice. starts

Chip Moore

That's very a markets just hydrogen, that of of sort ton present? term but longer could investment helpful, opportunity anyone of evolution just curious gas and thoughts, long Tom. in Thanks, and any your term, much

Tom Deitrich

gas That's there. hydrogen to of that in think of But certain an the area the it have systems. ones it, of Sure, there's think customers Europe, the the of really is to think choose plenty the it. that be amount small opportunistic U.S., in after the in discussion about equipped I a the market idea to mixed he's in And around in to more starting market is on handle customers that products amounts next I That's come into than we generation what in do. I are that of able although hydrogen introduction European the would in, where today.

try it. construction. we from where in more we in side well. make trends are the counterbalanced ready restrictions to on some that's as sure about the electricity more buildings get gas new are to jurisdiction some product those obviously line ways operate thinking and become So electrified indeed we're new And able as be and to things ready why That

a do on wants what one depending within of territory. play So sides we'll to both that be prepared customer and their

Chip Moore

Yes, thanks. okay,

Operator

question Wells Michael from And Fargo. with our next comes McGinn

Michael McGinn

everybody. morning good Hey

has on just terms through a equation of accounting. lots immediately? there FIFO you LIFO? Is Were higher some Or on a been in the Can you in price the cost? front. of to the get cost of is I terms cost realizing walk a pricing the talked this cost wanted just us sense front So delay? about sort

Joan Hooper

few I quarters. any of Yes, is I and that I don't don't, know there's kind the FIFO last big delay. our flattish mean, inventory for basically

extent it's input cost in that seeing. there's which the inflation, to So margins which, reflected there you're really is the

Michael McGinn

terms just in going your in just Okay, of since haven't playbook XXXX. of the capital happening of of business back of, And that competence think half maybe share kind environment great. necessarily that's back is the in the And building how sequentially deals reflective any market the the of where in this what's to was the reflective sense repurchase allocation, largest then quarterly I year. that maybe, been And into valuations? then software market public today's private

Joan Hooper

from Well, over November as perspective, months know, stock you the next a buyback our in authorized effective board of million $XXX XX. XX

for of date capital, a M&A, things opportunities the demand. the stock we, allocation as obviously on in increase it's side XX can this that. who of or mentioned, continue other capital are of inventory get would capital to look building we also So the some nature. We you standpoint so really fulfill expect of as And supply to through whether million we from customer on planning right that to deploy working complete that we we'll the buybacks, hopefully constraints, to the as did

of And an would I we stock table. buybacks. on XX So all say million kind things incremental authorized are the currently of have

Operator

I'm your is sorry. that question-and-answer. today's Mr. And concludes McGinn, line open.

Michael McGinn

you. you Thank much. I'm set. all Thank very Yes,

Operator

Thank you. Malloy Rice. we from one with have additional Martin question did Johnson And

Martin Malloy

morning. Good

Tom Deitrich

Morning.

Martin Malloy

more I conjunction you for intrigued use project in widespread etcetera was with a if with conjunction equipment if just quarter houses your your thermostats And could of you with see press the like release that, Emerson, the maybe I wondering thermostats. the about during in was that's and in your use Emerson. that talk about and meters by other if

Tom Deitrich

happy so. to Sure, do

our and partners program this response utility electricity and we demand a have capability for that some have with time. We quite deploy

we different control. We of the types of and that work can increase devices with continue to number

example, pre this experience of a demand programs thermostats, so make of We and of integrated seamless the during Emerson from there, a enabled different net side and can larger do control oftentimes has we load larger and able What and for the utility that as the to really there's really shedding is out control we we after host help past So lot of demand. thermostat a a particular supply different to smart the customer consumer load amounts on that customers. other see quarter, enable make And definitely that standpoint. sure thermostat cast they types them response we're kind work with is of as in want wider. interest and to to many for that being it from there's to a will work them to

have in if forward to the Emerson were scaling the agreement in we So to place marketplace. that and look it with in pleased

Martin Malloy

was you. thank That question. only Great, my

Operator

Deitrich to to conference for remarks. the concludes like today's And question-and-answer closing turn back session. that Tom I'd

Tom Deitrich

you, look the joining. operator We everyone and We quarters thanks, appreciate for Thank updating you Thanks truly for your everyone. forward to in time. ahead. again joining

Operator

of available be will There afternoon. conference today’s this replay audio

the company’s access replay or www.itron.com. or XXXXXXX audio with X-XXX-XXX-XXXX can dialing passcode the the go XXXX-XXX-XXXX You website of to by

Itron (ITRI) 2 May 222022 Q1 Earnings call transcript