Record revenue and continued strong profitability; reiterates guidance and declares an $8 million dividend for the first quarter of 2024

AZOUR, Israel, May 28, 2024 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN) today announced its consolidated financial results for the first quarter 2024.

Ituran Logo

Highlights of the first quarter of 2024

  • Number of subscribers reached 2,291,000, adding a net 39,000 in the first quarter; 
  • Record revenue of $85.0 million, an increase of 7% year-over-year;
  • Net income increased to $13.0 million, up by 15% year-over-year;
  • EBITDA grew to $22.3 million, a 7% increase year-over-year;
  • Operating cash flow of $11.4 million;
  • The Board declared a dividend of $8 million or $0.39 per share, in-line with the Company's dividend policy, which was increased in the prior quarter;

Guidance for 2024

Overall, looking ahead to 2024, management reiterates its expectations for continued revenue growth and profitability throughout the year.

Management continues to expect to add approximately 35,000 to 40,000, net new subscribers per each quarter during 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.

It is noted that these targets are based on current exchange rates and assumes that the current global macro-economic situation and political situation in Israel does not significantly worsen.

Management Comment

Eyal Sheratzky, Co-CEO of Ituran said, "We are pleased with our first quarter results which represent a very good start to 2024. The growth in subscribers came in at the high-end of our expectations reflecting strong demand for our products and services as well as the effectiveness of our strategic initiatives."

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

First quarter 2024 Results

Revenue for the first quarter of 2024 was $85.0 million, a 7% increase compared with revenues of $79.5 million in the first quarter of 2023.  

72% of revenues were from location-based service subscription fees and 28% were from product revenues.

Revenues from subscription fees were $60.9 million, an increase of 9% over the first quarter 2023 revenues.  

The subscriber base expanded to 2,291,000 by the end of March 2024, marking an increase of 39,000 from the previous quarter. During the quarter, there was an increase of 33,000 net in the aftermarket subscriber base and an increase of 6,000 net in the OEM subscriber base.

Product revenues were $24.1 million, an increase of 2% year-over-year.  

Gross profit for the quarter was $39.5 million (46.5% of revenues), an 8% increase compared with gross profit of $36.7 million (46.2% of revenues) in the first quarter of last year.

The gross margin in the quarter on subscription revenues was 58.1%, similar with the first quarter of last year. The gross margin on products was 17.1% in the quarter, compared with 18.2% in the first 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 $17.0 million (20.0% of revenues), representing a 7% increase compared to $15.9 million (20.0% of revenue) in the first quarter of last year.  

EBITDA for the quarter was $22.3 million (26.3% of revenues), an increase of 7% compared with EBITDA of $20.8 million (26.2% of revenues) in the first quarter of last year.  

Financial income for the quarter was $0.1 million, compared with financial expenses of $0.2 million in the first quarter of last year.  

Net income for the first quarter of 2024 was $13.0 million (15.3% of revenues) or diluted earnings per share of $0.66, an increase of 15% compared to $11.4 million (14.3% of revenues) or diluted earnings per share of $0.56 in the first quarter of last year.  

Cash flow from operations for the first quarter of 2024 was $11.4 million.

On the balance sheet, as of March 31, 2024, the Company had cash, including marketable securities, of $54.2 million and debt of $0.3 million, amounting to a net cash position of $53.9 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, which was increased by 60% in the prior 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, Thursday, May 28, 2024 at 10am 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:
10:00am Eastern Time, 7:00am Pacific Time, 5:00pm 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 2.2 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

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

 

 

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS










US dollars



March 31,




December  31,

(in thousands)


2024




2023



(unaudited)








Current assets:














Cash and cash equivalents


54,035




53,434

Investments in marketable securities


221




119

Accounts receivable (net of allowance
for doubtful accounts)


49,271




45,390

Other current assets


54,467




52,724

Inventories 


26,140




26,872



184,134




178,539








Long-term investments and other assets














Investments in affiliated companies


710




714

Investments in other companies


1,972




2,213

Other non-current assets


3,851




3,989

Deferred income taxes


14,804




14,452

Funds in respect of employee rights upon retirement     


18,957




18,525



40,294




39,893








Property and equipment, net


39,331




41,955








Operating lease right of use assets, net            


7,831




8,071








Intangible assets, net


10,259




10,830








Goodwill


39,346




39,400















Total assets


321,195




318,688

 

 

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS (cont.)










US dollars



March 31,   




December  31,

(in thousands)


2024




2023



(unaudited)








Current liabilities







Credit from banking institutions


320




355

Accounts payable


19,904




20,842

Deferred revenues


28,006




27,117

Other current liabilities


44,622




44,150



92,852




92,464








Long-term liabilities







Loan from bank institutions


-




237

Liability for employee rights upon retirement                 


24,959




24,562

Deferred income taxes


842




1,116

Deferred revenues


13,227




13,259

Others non-current liabilities


2,059




2,027

Operating lease liabilities, non-current


4,711




4,774



45,798




45,975















Stockholders' equity


177,106




174,454

Non-controlling interests


5,439




5,795

Total  equity


182,545




180,249















Total liabilities and equity


321,195




318,688

 

 

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME









US dollars



Three months period

(in thousands


ended March  31,

except per share data)


2024



2023



(unaudited)

Revenues:






Telematics services


60,935



55,777

Telematics products


24,091



23,695



85,026



79,472







Cost of Revenues:






Telematics services


25,521



23,392

Telematics products


19,962



19,391



45,483



42,783







Gross profit


39,543



36,689

Research and Development expenses


4,523



4,138

Selling and Marketing expenses


3,574



3,323

General and administrative expenses


14,456



13,273

Other expenses (income), net


(39)



43

   Operating income


17,029



15,912

Other income, net


-



21

Financing income (expenses), net


75



(195)

   Income before income tax


17,104



15,738

Income tax expenses


(3,430)



(3,419)

Share in losses of affiliated companies, net


(81)



(366)

Net income for the period


13,593



11,953

Less: Net income attributable to non-controlling interest        


(557)



(598)

Net income attributable to the Company


13,036



11,355







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


0.66



0.56







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


19,894



20,228

 

 

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS









US dollars



Three months period



ended March  31,

(in thousands)


2024



2023



(unaudited)

Cash flows from operating activities






Net income for the period


13,593



11,953

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






Depreciation and amortization


5,298



4,905

Loss (gain) in respect of trading marketable securities 


(104)



1

Increase in liability for employee rights upon retirement, net


762



861

Share in losses of affiliated company, net


81



366

Deferred income taxes


(790)



(603)

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


36



(7)

Increase in accounts receivable


(4,840)



(2,780)

Increase in other current and non-current assets


(3,485)



(4,576)

Decrease (increase) in inventories


521



(159)

Increase (decrease) in accounts payable


(470)



3,665

Increase in deferred revenues


1,264



2,729

Increase (decrease) in other current and non-current liabilities


(464)



1,040

   Net cash provided by operating activities


11,402



17,395







Cash flows from investment activities






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


(707)



(383)

Capital expenditures


(3,131)



(2,903)

Return of (investments in) affiliated and other companies


138



(295)

Return of long term deposit


64



-

Sale of investment in marketable securities


-



99

Proceeds from sale of property and equipment


156



18

   Net cash used in investment activities


(3,480)



(3,464)







Cash flows from financing activities






Short term credit from banking institutions, net


(273)



1,139

Repayment of long term loan


-



(4,142)

Dividend paid 


(4,774)



(2,797)

Dividend paid to non-controlling interest


(1,630)



(795)

Acquisition of company shares


-



(1,200)

   Net cash used in financing activities


(6,677)



(7,795)







Effect of exchange rate changes on cash and cash equivalents


(644)



(710)

Net increase in cash and cash equivalents


601



5,426

Balance of cash and cash equivalents at beginning of period


53,434



27,850

Balance of cash and cash equivalents at end of period


54,035



33,276







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

In March 2024, the Company declared a dividend in the amount of US$ 8 million. The dividend
was paid in April 2024.

 

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SOURCE Ituran Location and Control Ltd.

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