Company Announcements

ITURAN PRESENTS SECOND QUARTER 2024 RESULTS

Continued strong profitability and reiterates guidance; Declares an $8 million dividend for the second quarter of 2024

AZOUR, Israel, Aug. 19, 2024 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN) today announced its consolidated financial results for the second quarter 2024.

Highlights of the Second Quarter of 2024

  • Number of subscribers reached 2,329,000, adding a net 38,000 in the second quarter.
  • Revenue of $84.9 million, an increase of 4% year-over-year.
  • Net income increased to $13.1 million, up by 7% year-over-year.
  • EBITDA grew to $23.1 million, a 6% increase year-over-year.
  • Operating cash flow of $22.9 million.
  • The Board declared a dividend of $8 million or $0.39 per share, in line with the Company's dividend policy.
Ituran Logo

Guidance for 2024

Overall, looking ahead to 2024, management reiterates its expectations for continued revenue and profit growth, adding approximately 35,000 to 40,000, net new subscribers per each quarter throughout 2024.

From a financial perspective, full-year 2024 EBITDA expectations continue to be between $90-95 million and 2025 EBITDA is targeted to surpass $100 million. The current guidance assumes that the exchange rates in the geographies in which Ituran operate do not worsen against the US dollar, and the current global macro-economic situation and the political situation in Israel do not materially deteriorate.

Management Comment

Eyal Sheratzky, Co-CEO of Ituran, said, "We are pleased with our second quarter results with continued solid growth in the subscriber base and ongoing strong financial performance. Our business remains fundamentally strong and showed accelerated growth in our geographies, when measured in local currency terms. The strong dollar appreciation in the quarter prevented these solid growth rates from being reflected fully in our financial results. Overall, our performance show ongoing solid demand growth for our broad location-based products and telematic services, and especially increased traction from many of our new initiatives."

Continued Mr. Sheratzky, "Looking ahead, we remain on track for 2024. Given our ongoing success, we are happy to reward our shareholders with a high level of dividend for their ongoing support of our company."

Second Quarter 2024 Results

Revenues for the second quarter of 2024 were $84.9 million, a 4% increase compared with revenues of $81.6 million in the second quarter of 2023.

It is noted that the strengthening of the US dollar in the second quarter versus the various local currencies in which Ituran operates in, impacted the revenues when translated into US dollars. In local currencies, revenues grew by 6% year-over-year.

71% of revenues were from location-based service subscription fees and 29% were from product revenues.

Revenues from subscription fees were $60.4 million, an increase of 2% over the second quarter 2023 revenues. In local currencies, subscription revenues grew by 5% year-over-year.

The subscriber base expanded to 2,329,000 by the end of June 2024, marking an increase of 38,000 from the previous quarter.

Product revenues were $24.5 million, an increase of 9% year-over-year. In local currencies, product revenue grew by 10% year-over-year.

Gross profit for the quarter was $39.8 million (46.9% of revenues), a 3% increase compared with gross profit of $38.7 million (47.4% of revenues) in the second quarter of last year. In local currencies, gross profit grew by 5% year-over-year.

The gross margin in the quarter on subscription revenues improved to 58.2%, compared to 57.3% in the second quarter of last year. The gross margin on products was 18.9% in the quarter, compared with 21.0% in the second quarter of last year. The variance in the gross margin on products between quarters was due to the change in product mix sold between the quarters.

Operating income for the quarter was $17.7 million (20.9% of revenues), representing a 7% increase compared to $16.6 million (20.4% of revenues) in the second quarter of last year. In local currencies, operating income grew 10% year-over-year.

EBITDA for the quarter was $23.1 million (27.2% of revenues), an increase of 6% compared with EBITDA of $21.8 million (26.7% of revenues) in the second quarter of last year. In local currencies, EBITDA grew 9% year-over-year.

Financial income for the quarter was $0.1 million, compared with $0.3 million in the second quarter of last year.

Net income for the second quarter of 2024 was $13.1 million (15.5% of revenues) or diluted earnings per share of $0.66, an increase of 7% compared to $12.2 million (15.0% of revenues) or diluted earnings per share of $0.61 in the second quarter of last year. In local currencies, net income grew 10% year-over-year.

Cash flow from operations for the second quarter of 2024 was $22.9 million.

On the balance sheet, as of June 30, 2024, the Company had cash, including marketable securities, of $63.3 million and debt of $0.2 million, amounting to a net cash position of $63.1 million. This is compared with cash, including marketable securities, of $53.6 million and debt of $0.6 million, amounting to a net cash position of $53.0 million, as of year-end 2023.

Dividend

The Board of Directors declared a dividend for the quarter of $8 million, in line with the Company's dividend policy. This dividend is the same as that of the prior quarter and 60% increased over that of the year-ago quarter.

The current dividend takes into account the Company's continuing strong profitability, ongoing positive cash flow and strong balance sheet.

Conference Call Information

The Company will also be hosting a conference call later today, Monday, August 19, 2024 at 9am Eastern Time.

On the call, management will review and discuss the results, and will be available to answer investor questions.

To participate, please call one of the following teleconferencing numbers. Please begin placing your calls a few minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

US Dial-in Number: 1 866 860 9642
ISRAEL Dial-in Number: 03 918 0609
INTERNATIONAL Dial-in Number: +972 3 918 0609 
at:
9:00am Eastern Time, 6:00am Pacific Time, 4:00pmIsrael Time

For those unable to listen to the live call, a replay of the call will be available from the day after the call in the investor relations section of Ituran's website.

Certain statements in this press release are "forward-looking statements" within the meaning of the Securities Act of 1933, as amended. These forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements contained in this report that are not historical facts as well as statements identified by words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates" or words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors, as well as factors related to the global COVID-19 pandemic.

About Ituran

Ituran is a leader in the emerging mobility technology field, providing value-added location-based services, including a full suite of services for the connected-car. Ituran offers Stolen Vehicle Recovery, fleet management as well as mobile asset location, management & control services for vehicles, cargo and personal security for the retail, insurance, financing industries and car manufacturers. Ituran is the largest OEM telematics provider in Latin America. Its products and applications are used by customers in over 20 countries. Ituran is also the founder of the Tel-Aviv based DRIVE startup incubator to promote the development of smart mobility technology.

Ituran's subscriber base has been growing significantly since the Company's inception to over 2.3 million subscribers using its location-based services with a market leading position in Israel and Latin America. Established in 1995, Ituran has approximately 2,800 employees worldwide, with offices in Israel, Brazil, Argentina, Mexico, Ecuador, Columbia, India, Canada and the United States.

For more information, please visit Ituran's website, at: www.ituran.com.

 

 

 

Ituran Location and Control LTD.
CONDENSED CONSOLIDATION BALANCE SHEETS








US dollars



June 30,


December 31,

(in thousands)


2024


2023



(unaudited)













Current assets:










Cash and cash equivalents


63,210


53,434

Investments in marketable securities


81


119

Accounts receivable (net of allowance for
doubtful accounts)


49,168


45,390

Other current assets


50,146


52,724

Inventories 


24,806


26,872



187,411


178,539






Long-term investments and other assets










Investments in affiliated companies


736


714

Investments in other companies


2,060


2,213

Other non-current assets


3,431


3,989

Deferred income taxes


14,121


14,452

Funds in respect of employee rights upon
retirement


19,364


18,525



39,712


39,893






Property and equipment, net


35,582


41,955






Operating lease right of use assets, net


7,342


8,071






Intangible assets, net


9,488


10,830






Goodwill


39,219


39,400































Total assets


318,754


318,688

 

 

 

Ituran Location and Control LTD.
CONDENSED CONSOLIDATION BALANCE SHEETS (cont.)








US dollars



June 30,


December  31,

(in thousands)


2024


2023



(unaudited)













Current liabilities





Credit from banking institutions


236


355

Accounts payable


20,913


20,842

Deferred revenues


25,557


27,117

Other current liabilities


45,215


44,150



91,921


92,464






Long-term liabilities





Loan from bank institutions


-


237

Liability for employee rights upon retirement


25,317


24,562

Deferred income taxes


703


1,116

Deferred revenues


12,636


13,259

Others non-current liabilities


2,058


2,027

Operating lease liabilities, non-current


4,458


4,774



45,172


45,975





















Stockholders' equity


175,512


174,454

Non-controlling interests


6,149


5,795

Total equity


181,661


180,249









































Total liabilities and equity


318,754


318,688

 

 

 

Ituran Location and Control LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME












US dollars


US dollars



Six months period


Three months period

(in thousands


ended June  30,


ended June  30,

except per share data)


2024


2023


2024


2023



(unaudited)


(unaudited)

Revenues:









Telematics services


121,352


114,963


60,417


59,186

Telematics products


48,543


46,154


24,452


22,459



169,895


161,117


84,869


81,645










Cost of Revenues:









Telematics services


50,746


48,642


25,225


25,250

Telematics products


39,802


37,124


19,840


17,733



90,548


85,766


45,065


42,983










Gross profit


79,347


75,351


39,804


38,662

Research and Development expenses


9,117


8,354


4,594


4,216

Selling and Marketing expenses


7,272


6,606


3,698


3,283

General and Administrative expenses


28,307


27,716


13,851


14,443

Other expenses (income), net


(123)


118


(84)


75

Operating income


34,774


32,557


17,745


16,645

Other expenses, net


-


(3)


0


(24)

Financing income, net


131


154


56


349

Income before income tax


34,905


32,708


17,801


16,970

Income tax expenses


(7,205)


(7,220)


(3,775)


(3,801)

Share in losses of affiliated companies, net


(122)


(627)


(41)


(261)

Net income for the period


27,578


24,861


13,985


12,908

Less: Net income attributable to non-controlling interest


(1,415)


(1,257)


(858)


(659)

Net income attributable to the Company


26,163


23,604


13,127


12,249



















Basic and diluted earnings per share attributable
to Company's stockholders


1.32


1.17


0.66


0.61



















Basic and diluted weighted average number of shares
outstanding (in thousands)


19,894


20,097


19,894


20,045

 

 

 

Ituran Location and Control LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS







































US dollars


US dollars



Six months period


Three months period



ended June  30,


ended June  30,

(in thousands)


2024


2023


2024


2023



(unaudited)


(unaudited)

Cash flows from operating activities









Net income for the period


27,578


24,861


13,985


12,908










Adjustments to reconcile net income to net cash from operating
activities:









Depreciation and amortization


10,651


10,051


5,353


5,146

Loss (gain) in respect of trading marketable securities


35


(53)


139


(54)

Increase in liability for employee rights upon retirement


1,680


1,590


918


729

Share in losses of affiliated companies, net


122


627


41


261

Deferred income taxes


(1,237)


(1,394)


(447)


(791)

Capital loss (gain) from sale of property and equipment, net


(95)


46


(131)


53

Increase in accounts receivable


(6,544)


(2,952)


(1,704)


(172)

Increase in other current and non-current assets


(4,371)


(6,975)


(886)


(2,399)

Decrease (increase) in inventories


1,529


(609)


1,008


(450)

Increase (decrease) in accounts payable


1,816


939


2,286


(2,726)

Increase (decrease) in deferred revenues


372


5,227


(892)


2,498

Increase in other current and non-current liabilities


2,803


3,544


3,268


2,504

Net cash provided by operating activities


34,339


34,902


22,938


17,507










Cash flows from investment activities


















Increase in funds in respect of employee rights upon retirement,
net of withdrawals


(1,515)


(1,160)


(808)


(777)

Capital expenditures


(6,309)


(6,282)


(3,178)


(3,379)

Return of (investments in) affiliated and other companies, net


57


(607)


(81)


(312)

Return of (investments in) long term deposit


23


(45)


(41)


(45)

Sale of marketable securities


-


99


-


-

Proceeds from sale of property and equipment


293


58


137


40

Net cash used in investment activities


(7,451)


(7,937)


(3,971)


(4,473)










Cash flows from financing activities


















Short term credit from banking institutions, net


(331)


185


(58)


(954)

Repayment of long term loan


-


(7,907)


-


(3,765)

Dividend paid


(12,533)


(5,617)


(7,759)


(2,820)

Acquisition of company shares


-


(4,717)


-


(3,517)

Dividend paid to non-controlling interest


(1,630)


(1,687)


-


(892)

Net cash used in financing activities


(14,494)


(19,743)


(7,817)


(11,948)










Effect of exchange rate changes on cash and cash equivalents


(2,619)


(867)


(1,975)


(157)

Net increase in cash and cash equivalents


9,776


6,355


9,175


929

Balance of cash and cash equivalents at beginning of the period


53,434


27,850


54,035


33,276

Balance of cash and cash equivalents at end of the period


63,210


34,205


63,210


34,205










Supplementary information on financing and investing activities not
involving cash flows:















In May 2024, the Company declared a dividend in an amount of approximately
US$ 8 million. The dividend was paid in July 2024.



 

 

 

Logo: https://mma.prnewswire.com/media/1972820/Ituran_logo.jpg

Company Contact
Udi Mizrahi
udi_m@ituran.com
Deputy CEO & VP Finance, Ituran
(Israel) +972 3 557 1348

International Investor Relations
Ehud Helft
ituran@ekgir.com
EK Global Investor Relations
(US) +1 212 378 8040

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SOURCE Ituran Location and Control Ltd.