EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
Exhibit 99.1
ITURAN PRESENTS THIRD QUARTER 2024 RESULTS

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

AZOUR, Israel – November 21, 2024. Ituran Location and Control Ltd. (NASDAQ: ITRN) today announced its consolidated financial results for the third quarter 2024.

Highlights of the third quarter of 2024

•
Number of subscribers reached 2,369,000, adding a net 40,000 in the third quarter.
•
Revenue of $83.5 million, an increase of 3% year-over-year.
•
Net income increased to $13.7 million, up by 9% year-over-year.
•
EBITDA grew to $23.3 million, a 4% increase year-over-year.
•
Operating cash flow of $17.2 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

Management reiterates its expectations for continued revenue and profit growth, and expects to continue to add approximately 35,000 to 40,000, net new subscribers in the fourth quarter of 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 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, “In the third quarter, we presented another solid quarter of results and financial performance and showed growth in the subscriber base at the top end of our expected range. Ituran’s business remains fundamentally strong across all regions with growth in the financial metrics especially when measured in local currency terms, though the strengthening dollar against local currencies in the quarter prevented these growth rates from being reflected fully in our financial results. We continue to see strong demand for our broad location-based products and telematic services and traction from our new initiatives.”

Third quarter 2024 Results

Revenues for the third quarter of 2024 were $83.5 million, a 3% increase compared with revenues of $81.1 million in the third quarter of 2023.

It is noted that the strengthening of the US dollar in the third quarter versus the various local currencies in which Ituran operates, impacted the revenues when translated into US dollars. In local currencies, revenues grew by 7% year-over-year.

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

Revenues from subscription fees were $59.6 million, a decrease of 1% over the third quarter 2023 revenues. In local currencies, subscription revenues grew by 4% year-over-year.

The subscriber base expanded to 2,369,000 by the end of September 2024, marking an increase of 40,000 from the previous quarter.

Product revenues were $23.9 million, an increase of 14% year-over-year. In local currencies, product revenue grew by 15% year-over-year.

Gross profit for the quarter was $40.2 million (48.1% of revenues), a 2% increase compared with gross profit of $39.4 million (48.6% of revenues) in the third 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 58.8%, compared to 58.5% in the third quarter of last year. The gross margin on products was 21.5% in the quarter, an improvement compared with 20.3% in the third 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 $18.4 million (22.0% of revenues), representing a 9% increase compared to $16.9 million (20.8% of revenues) in the third quarter of last year. In local currencies, operating income grew 14% year-over-year.

EBITDA for the quarter was $23.3 million (27.9% of revenues), an increase of 4% compared with EBITDA of $22.5 million (27.8% of revenues) in the third quarter of last year. In local currencies, EBITDA grew 9% year-over-year.

Net income for the third quarter of 2024 was $13.7 million (16.4% of revenues) or diluted earnings per share of $0.69, an increase of 9% compared to $12.5 million (15.4% of revenues) or diluted earnings per share of $0.63 in the third quarter of last year. In local currencies, net income grew 14% year-over-year.

Cash flow from operations for the third quarter of 2024 was $17.2 million.

On the balance sheet, as of September 30, 2024, the Company had cash, including marketable securities, of $67.5 million and debt of $0.2 million, amounting to a net cash position of $67.3 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, Thursday, November 21, 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 2.3 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

Company Contact
  
International Investor Relations
Udi Mizrahi
udi_m@ituran.com
Deputy CEO & VP Finance, Ituran
(Israel) +972 3 557 1348
  
Ehud Helft
ituran@ekgir.com
EK Global  Investor Relations
(US) +1 212 378 8040
 

ITURAN LOCATION AND CONTROL LTD.
 
Condensed Consolidated Financial Statements
as of September 30, 2024


ITURAN LOCATION AND CONTROL LTD.
 
Condensed Consolidated Financial Statements
as of September 30, 2024
Table of Contents
 
 
Page
Condensed Consolidated Interim Financial Statements:
  
2-3
4
5
 
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ITURAN LOCATION AND CONTROL LTD.
 
CONDENSED CONSOLIDATED BALANCE SHEETS

   
US dollars
  
(In thousands)
  
September 30,
2024
    
December 31,
2023
  
   
(unaudited)
        
 Current assets
            
Cash and cash equivalents
    
67,465
      
53,434
  
Investments in marketable securities
    
32
      
119
  
Accounts receivable (net of allowance for doubtful accounts)
    
47,876
      
45,390
  
Other current assets
    
51,193
      
52,724
  
Inventories
    
23,959
      
26,872
  
     
190,525
      
178,539
  
Long-term investments and other assets
                
Investments in affiliated companies
    
739
      
714
  
Investments in other companies
    
2,113
      
2,213
  
Other non-current assets
    
3,430
      
3,989
  
Deferred income taxes
    
13,785
      
14,452
  
Funds in respect of employee rights upon retirement
    
20,440
      
18,525
  
     
40,507
      
39,893
  
                 
Property and equipment, net
    
34,332
      
41,955
  
                 
Operating lease right of use assets, net
    
6,933
      
8,071
  
                 
Intangible assets, net
    
9,108
      
10,830
  
                 
Goodwill
    
39,265
      
39,400
  

               
Total assets
    
320,670
      
318,688
  

2

ITURAN LOCATION AND CONTROL LTD.
 
CONDENSED CONSOLIDATED BALANCE SHEETS (cont.)

   
US dollars
  
(In thousands)
  
September 30,
2024
    
December 31,
2023
  
   
(unaudited)
        
Current liabilities
            
Credit from banking institutions
    
169
      
355
  
Accounts payable
    
17,247
      
20,842
  
Deferred revenues
    
24,114
      
27,117
  
Other current liabilities
    
45,240
      
44,150
  
     
86,770
      
92,464
  
Long-term liabilities
                
Loan from bank institution
    
-
      
237
  
Liability for employee rights upon retirement
    
26,190
      
24,562
  
Deferred income taxes
    
562
      
1,116
  
Deferred revenues
    
12,594
      
13,259
  
Operating lease liabilities, non-current
    
4,334
      
4,774
  
Others non-current liabilities
    
2,145
      
2,027
  
     
45,825
      
45,975
  
                 
Stockholders' equity
    
182,959
      
174,454
  
Non-controlling interests
    
5,116
      
5,795
  
Total equity
    
188,075
      
180,249
  

               
Total liabilities and equity
    
320,670
      
318,688
  

3

ITURAN LOCATION AND CONTROL LTD.
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME

   
US dollars
    
US dollars
  
   
Nine months period
ended September 30,
    
Three months period
ended September 30,
  
(in thousands, except per share data)
  
2024
    
2023
    
2024
    
2023
  
   
(unaudited)
    
(unaudited)
  
Revenues:
            
             
Telematics services
    
180,943
      
175,115
      
59,591
      
60,152
  
Telematics products
    
72,431
      
67,055
      
23,888
      
20,901
  
     
253,374
      
242,170
      
83,479
      
81,053
  
     Cost of revenues:
                                
                                 
Telematics services
    
75,320
      
73,627
      
24,574
      
24,985
  
Telematics products
    
58,550
      
53,782
      
18,748
      
16,658
  
     
133,870
      
127,409
      
43,322
      
41,643
  
                                 
Gross profit
    
119,504
      
114,761
      
40,157
      
39,410
  
Research and development expenses
    
13,607
      
12,746
      
4,490
      
4,392
  
Selling and marketing expenses
    
11,291
      
10,108
      
4,019
      
3,502
  
General and administrative expenses
    
41,571
      
42,330
      
13,264
      
14,614
  
Other expenses (income), net
    
(99
)
    
127
      
24
      
9
  
Operating income
    
53,134
      
49,450
      
18,360
      
16,893
  
                                 
Other expenses, net
    
-
      
(3
)
    
-
      
-
  
Financing income (expenses), net
    
165
      
101
      
34
      
(53
)
Income before income tax
    
53,299
      
49,548
      
18,394
      
16,840
  
Income tax expenses
    
(11,234
)
    
(10,821
)
    
(4,029
)
    
(3,601
)
Share in losses of affiliated companies, net
    
(301
)
    
(822
)
    
(179
)
    
(195
)
     Net income for the period
    
41,764
      
37,905
      
14,186
      
13,044
  
     Less: Net income attributable to non-controlling interest
    
(1,948
)
    
(1,787
)
    
(533
)
    
(530
)
     Net income attributable to the Company
    
39,816
      
36,118
      
13,653
      
12,514
  
                                 
Basic and diluted earnings per share attributable to Company’s shareholders
    
2.00
      
1.80
      
0.69
      
0.63
  
                                 
Basic and diluted weighted average number of shares outstanding (in thousands)
    
19,894
      
20,096
      
19,894
      
19,912
  

4

ITURAN LOCATION AND CONTROL LTD.
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

   
US dollars
    
US dollars
  
   
Nine months period
ended September 30,
    
Three months period
ended September 30,
  
(in thousands)
  
2024
    
2023
    
2024
    
2023
  
   
(unaudited)
    
(unaudited)
  
Cash flows from operating activities
                        
Net income for the period
    
41,764
      
37,905
      
14,186
      
13,044
  
Adjustments to reconcile net income to net cash from operating activities:
                                
Depreciation and amortization
    
15,586
      
15,661
      
4,935
      
5,610
  
Loss in respect of marketable securities and other investments
    
85
      
57
      
50
      
110
  
Increase in liability for employee rights upon retirement
    
2,245
      
2,281
      
565
      
691
  
Share in losses of affiliated companies, net
    
301
      
822
      
179
      
195
  
Deferred income taxes
    
(1,340
)
    
(1,695
)
    
(104
)
    
(301
)
Capital loss (gain) on sale of property and equipment, net
    
14
      
35
      
109
      
(11
)
Decrease (increase) in accounts receivable
    
(4,792
)
    
(1,795
)
    
1,752
      
1,157
  
Decrease (increase) in other current and non-current assets
    
(5,328
)
    
(4,109
)
    
(957
)
    
2,866
  
Decrease in inventories
    
2,591
      
901
      
1,062
      
1,510
  
Decrease in accounts payable
    
(2,382
)
    
(2,953
)
    
(4,198
)
    
(3,892
)
Increase (decrease) in deferred revenues
    
186
      
4,768
      
(186
)
    
(459
)
Increase (decrease) in other current and non-current liabilities
    
2,645
      
3,561
      
(158
)
    
17
  
Net cash provided by operating activities
    
51,575
      
55,439
      
17,235
      
20,537
  
                                 
Cash flows from investment activities
                                
     Increase in funds in respect of employee rights upon
                                
retirement, net of withdrawals
    
(2,337
)
    
(1,933
)
    
(822
)
    
(773
)
Capital expenditures
    
(9,144
)
    
(10,193
)
    
(2,835
)
    
(3,911
)
Return from (investment in) affiliated and other companies, net
    
(2
)
    
(556
)
    
(59
)
    
51
  
Investment in long-term deposit
    
(81
)
    
(140
)
    
(104
)
    
(95
)
Sale of marketable securities
    
-
      
99
      
-
      
-
  
Proceeds from sale of property and equipment
    
389
      
144
      
96
      
86
  
Net cash used in investment activities
    
(11,175
)
    
(12,579
)
    
(3,724
)
    
(4,642
)
                                 
Cash flows from financing activities
                                
Repayment of long-term loan
    
-
      
(11,488
)
    
-
      
(3,581
)
Short term credit from banking institutions, net
    
(384
)
    
1,486
      
(53
)
    
1,301
  
Dividend paid
    
(20,291
)
    
(8,618
)
    
(7,758
)
    
(3,001
)
Dividend paid to non-controlling interests
    
(3,261
)
    
(3,327
)
    
(1,631
)
    
(1,640
)
Acquisition of company shares
    
-
      
(6,613
)
    
-
      
(1,896
)
Net cash used in financing activities
    
(23,936
)
    
(28,560
)
    
(9,442
)
    
(8,817
)
Effect of exchange rate changes on cash and cash equivalents
    
(2,433
)
    
(2,271
)
    
186
      
(1,404
)
Net change in cash and cash equivalents
    
14,031
      
12,029
      
4,255
      
5,674
  
Balance of cash and cash equivalents at beginning of the period
    
53,434
      
27,850
      
63,210
      
34,205
  
Balance of cash and cash equivalents at end of the period
    
67,465
      
39,879
      
67,465
      
39,879
  

Supplementary information on financing activities not involving cash flows:

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

5