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.
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, 4:00pm Israel
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
View original
content:https://www.prnewswire.com/news-releases/ituran-presents-second-quarter-2024-results-302225231.html
SOURCE Ituran Location and Control Ltd.
