exhibit_99-1.htm

ITURAN LOCATION AND CONTROL LTD. PRESENTS RESULTS FOR

THE THIRD QUARTER 2011

Record revenue of $41.7 million and record net income of $6.6 million

AZOUR, Israel – November 16, 2011 – Ituran Location and Control Ltd. (NASDAQ: ITRN, TASE: ITRN), today announced its consolidated financial results for the third quarter ended September 30, 2011.

Highlights of the Quarter

·	Record revenues of $41.7 million, growing 12% year-over-year

·	Gross margin at 50.2% and operating margin at 22.3%;

·	EBITDA of $13.6 million or 32.7% of revenues;

·	Net income of $6.6 million, growing 17% year-over-year

·	Generated $9.2 million in operating cash flow;

Third Quarter 2011 Results

Revenues for the third quarter of 2011 reached $41.7 million, representing a 12% growth over revenues of $37.1 million in the third quarter of 2010. 72.2% of revenues were from location based service subscription fees and 27.8% from product revenues.

Revenues from subscription fees grew by 5.4% over the same period last year. The increase in subscription fees was mainly due to the increase in the subscriber base, which amounted to 619,000 as of September 30, 2011, as compared with 594,000 at the end of September 30, 2010. Product revenues grew 35% compared with the same period last year. This increase was driven primarily by increased sales of products, in particular from Mapa.

Gross profit for the third quarter of 2011 was $20.9 million (50.2% of revenues), an increase of 15% compared with $18.2 million (49.0% of revenues) in the third quarter of 2010.

Operating profit for the third quarter of 2011 was $9.3 million (22.3% of revenues), an increase of 23% compared with an operating profit of $7.6 million (20.5% of revenues) in the third quarter of 2010.

EBITDA for the quarter was $13.6 million (32.7% of revenues), an increase of 17% compared to an EBITDA of $11.6 million (31.3% of revenues) in the third quarter of 2010.

Financial income in the third quarter of 2011 was $0.9 million compared with a financial income of $0.4 million in the third quarter of 2010.

Net income was US$6.6 million in the third quarter of 2011 (15.9% of revenues), growing 17% compared with a net profit of US$5.7 million (15.4% of revenues), as reported in the third quarter of 2010. Fully diluted EPS in the third quarter of 2011 was US$0.32, compared with fully diluted EPS of US$0.27 in the third quarter of 2010.

Cash flow from operations during the quarter was $9.2 million.

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

As of September 30, 2011, the Company had net cash, including marketable securities and deposits for short and long term, of $56.9 million or $2.71 per share, compared with US$53.6 million or $2.56 per share as at June 30, 2011. Note that due to the recent Leonardo litigation and ST arbitration which had been accounted for in the financial statements in 2010, but as of 30/09/11 has not yet been paid, an amount totaling approximately $26 million is expected to be paid out in the coming months.

Eyal Sheratzky, Co-CEO of Ituran said, “We are very pleased with our results, reporting our highest ever revenue level and net income. During the quarter, our business continued to perform well in all regions. We believe that already by the next quarter and as we move through 2012, our subscriber base will return to its former average growth rate. Overall, our business continues its stable growth, realizing the rewards of our past efforts.”

Conference Call Information

The Company will also be hosting a conference call later today, November 16, 2011 at 10am ET, 5pm Israel. 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: 1 888 281 1167

ISRAEL Dial-in Number: 03 918 0687

CANADA Dial-in Number: 1 866 485 2399

INTERNATIONAL Dial-in Number: +972 3 918 0687

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.

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

About Ituran

Ituran provides location-based services, consisting predominantly of stolen vehicle recovery and tracking services, as well as wireless communications products used in connection with its location-based services and various other applications. Ituran offers mobile asset location, Stolen Vehicle Recovery, management & control services for vehicles, cargo and personal security. Ituran’s subscriber base has been growing significantly since the Company’s inception to over 619,000 subscribers distributed globally. Established in 1995, Ituran has over 1,300 employees worldwide, provides its location based services and has a market leading position in Israel, Brazil, Argentina and the United States.

Company Contact		International Investor Relations
Udi Mizrahi udi_m@ituran.com VP Finance, Ituran (Israel) +972 3 557 1348		Ehud Helft & Kenny Green ituran@ccgisrael.com CCG Investor Relations (US) +1 646 201 9246

* Financial Tables to Follow **

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements

as of September 30, 2011

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements

as of September 30, 2011

Table of Contents

	Page
Consolidated Interim Financial Statements:

Balance Sheets	2 – 3

Statements of Income	4

Statements of Cash Flows	5

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

CONSOLIDATED INTERIM BALANCE SHEETS

	US dollars
	September 30,		December 31,
(in thousands)	2011		2010

Current assets
Cash and cash equivalents		43,739		46,674
Deposit in escrow		4,651		5,238
Investments in marketable securities		1,464		1,509
Accounts receivable (net of allowance for doubtful accounts)		29,034		31,161
Other current assets		12,757		12,770
Inventories		9,332		8,501
		100,977		105,853

Long-term investments and other assets
Deposit in escrow		7,875		7,858
Investments in affiliated company		216		220
Investments in other companies		82		86
Other non-current assets		2,360		3,709
Loan to former employee		357		558
Deferred income taxes		5,938		4,934
Funds in respect of employee rights upon retirement		4,711		4,498
		21,539		21,863

Property and equipment, net		42,725		46,147

Intangible assets, net		3,635		4,402

Goodwill		9,539		10,079

Total assets		178,415		188,344

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

CONSOLIDATED INTERIM BALANCE SHEETS

	US dollars
	September 30,		December 31,
(in thousands)	2011		2010

Current liabilities
Credit from banking institutions		658		98
Accounts payable		11,805		13,087
Deferred revenues		7,759		6,714
Litigation obligation		21,130		21,852
Other current liabilities		17,205		17,482
		58,557		59,233

Long-term liabilities
Long term loans		190		233
Liability for employee rights upon retirement		6,869		6,472
Other current liabilities		938		-
Provision for contingencies		3,954		5,324
Deferred revenues		863		873
Deferred income taxes		860		1,046
		13,674		13,948

Shareholders’ equity		101,774		110,771
Non - controlling interest		4,410		4,392
Total equity		106,184		115,163

Total liabilities and equity		178,415		188,344

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF INCOME

	US dollars						US dollars
(in thousands except per share data)	Nine month period ended September 30,						Three month period ended September 30,
	2011			2010			2011			2010

Revenues:
Location-based services		91,968			81,418	(*)		30,080			28,526	(*)
Wireless communications products		31,223			25,662	(*)		11,585			8,550	(*)
		123,191			107,080			41,665			37,076

Cost of revenues:
Location-based services		37,678			32,363	(*)		12,276			11,781	(*)
Wireless communications products		24,745			22,058	(*)		8,474			7,140	(*)
		62,423			54,421			20,750			18,921

Gross profit		60,768			52,659			20,915			18,155
Research and development expenses		480			333			196			111
Selling and marketing expenses		6,387			6,501			2,223			2,206
General and administrative expenses		27,065			23,628			9,204			8,246
Other expenses (income), net		(13	)		3			(13	)		-
Operating income		26,849			22,194			9,305			7,592
Other expenses		(806	)		(81	)		(847	)		-
Financing income (expenses) ,net		1,429			459			851			388
Income before income tax		27,472			22,572			9,309			7,980
Income tax		(6,996	)		(6,544	)		(2,433	)		(2,103	)
		20,476			16,028			6,876			5,877
Share in income (losses) of affiliated companies, net		-			(2	)		-			-
Net income for the period		20,476			16,026			6,876			5,877
Less: Net income attributable to non- controlling interest		(782	)		(784	)		(241	)		(184	)
Net income for the period attributable to the company		19,694			15,242			6,635			5,693

Basic and diluted earning per share attributable to company's shareholders		0.94			0.73			0.32			0.27

Basic and diluted weighted average number of shares outstanding:
Basic		20,968			20,968			20,968			20,968

Diluted		20,968			20,977			20,968			20,977

(*) Reclassified

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ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

	US dollars						US dollars
	Nine months period ended September 30 ,						Three months period ended September 30 ,
(in thousands)	2011			2010			2011			2010
Cash flows from operating activities
Net income for the period		20,476			16,026			6,876			5,877
Adjustments to reconcile net income to net cash from operating activities:
Depreciation , amortization and impairment of goodwill		13,109			11,513			4,305			3,998
Exchange differences on principal of deposit and loan, net		(453	)		381			(968	)		745
Gain in respect of trading marketable securities		-			-			19			-
Increase in liability for employee rights upon retirement		681			658			199			216
Share in losses of affiliated companies, net		-			2			-			-
Deferred income taxes		(1,366	)		599			(800	)		357
Capital loses (gains) on sale of property and equipment, net		(24	)		21			6			-
Decrease (increase) in accounts receivable		759			(4,939	)		600			(2,246	)
Decrease (increase) in other current assets		65			(1,383	)		364			(416	)
Decrease (increase) in inventories		(1,204	)		495			(2,026	)		125
Increase (decrease) in accounts payable		(707	)		901			173			428
Increase (decrease) in deferred revenues		1,368			(768	)		3			(302	)
Increase in other current liabilities		292			332			246			935
Litigation obligation		237			-			237			-
Net cash provided by operating activities		33,233			23,838			9,234			9,717
Cash flows from investment activities
Increase in funds in respect of employee rights upon retirement, net of withdrawals		(411	)		(539	)		(109	)		(193	)
Capital expenditures		(13,339	)		(14,609	)		(2,354	)		(5,305	)
Intangible assets expenditures		(58	)					(58	)		-
Deposit in escrow		603						-			-
Deposit		410			(45	)		(52	)		(13	)
Proceeds from sale of property and equipment		549			704			323			225
Investment in marketable securities		-			(1,326	)		-			-
Sale of marketable securities		-			4,214			-			-
Net cash used in investment activities		(12,246	)		(11,601	)		(2,250	)		(5,286	)
Cash flows from financing activities
Short-term credit from banking institutions, net		563			716			599			534
Receipt of Long term loans from banking institutions		-			165			-			-
Repayment of long terms loans		(35	)		(6	)		(12	)		(6	)
Acquisition of non controlling interest		-			(2,223	)		-			(2,223	)
Dividend paid		(21,782	)		(31,621	)		-			-
Dividend paid to Non controlling interest		(506	)		-			(506	)		-
Net cash provided (used in) financing activities		(21,760	)		(32,969	)		81			(1,695	)
Effect of exchange rate changes on cash and cash equivalents		(2,162	)		133			(3,132	)		1,705
Net increase (decrease) in cash and cash equivalents		(2,935	)		(20,599	)		3,933			4,441
Balance of cash and cash equivalents at beginning of period		46,674			60,813			39,806			35,773
Balance of cash and cash equivalents at end of period		43,739			40,214			43,739			40,214

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