Itron, Source Capital Earnings Increase

Itron Inc. reported improved first-quarter earnings Wednesday.

Although net income appeared to decrease to $1.8 million, or 12 cents a share, from $3.4 million, or 22 cents a share, for the same quarter last year, results were distorted by the presence of extraordinary items in both periods.

In 1999, the company recorded a $3.7 million after-tax gain on the exchange of existing convertible debt for new. A similar exchange this year netted $1 million.

Without those items, net was $785,000, or five cents a share, this year, compared with a $231,000 loss, or two cents a share, last year.

President LeRoy Nosbaum said the improvement reflects savings from a restructuring undertaken last year that trimmed more than 100 jobs at facilities in Boise and Spokane.

“We are looking for further improvements in our profitability as those restructuring actions become fully implemented throughout the year,” he said.

Revenues dropped slightly from quarter to quarter, to $47.7 million from $51.9 million. Backlog for the next year also slipped to $42 million from $50 million.

Net income at Source Capital Corp. improved to $290,689, or 21 cents a share, during the first quarter, a 24 percent increase from $234,559, or 17 cents a share, for the same period last year.

Net loans and leases edged up $2.1 million to $60.9 million, and originations grew by $1.2 million to $10.8 million.

Real estate owned and repossessed equipment by the commercial lender increased to $690,000 from $594,000 during the quarter, but accounts past due by 90 days fell to 1.3 percent of loans and leases outstanding, compared with 3.5 percent last year.

President D. Michael Jones said the results for what is normally a slow quarter exceeded projections.

Source, headquartered in Spokane, has offices in Phoenix, Portland and Seattle.