exhibit_99-1.htm

Exhibit 99.1

ITURAN LOCATION AND CONTROL LTD. PRESENTS RESULTS FOR THE

FOURTH QUARTER AND FULL YEAR 2011

Record Full Year revenues of $160.2 million, EPS of $1.23 and operating cash flow of $45.9 million

AZOUR, Israel – February 22, 2012 – Ituran Location and Control Ltd. (NASDAQ: ITRN, TASE: ITRN), today announced its consolidated financial results for the fourth quarter and full year ended December 31, 2011.

Highlights of the Fourth Quarter

·	A 19 thousand year-over-year increase in net subscribers and four thousand in the quarter, to a record of 623 thousand as of December 31, 2011;

·	Gross margin at 50.1% and operating margin at 20.6%;

·	EBITDA of $11.5 million or 31.2% of revenues;

·	Operating cash flow of $12.6 million;

·	Declared dividend of $25.8 million, representing 100% of the 2011 net income and a dividend yield of 8.7%.

Fourth Quarter 2011 Results

Revenues for the fourth quarter of 2011 reached $37.0 million, representing a 9.3% decline compared with revenues of $40.7 million in the fourth quarter of 2010. 77% of revenues were from location based service subscription fees and 23% from product revenues.

Revenues from subscription fees declined by 1.2%, compared with the fourth quarter of last year. The decline was primarily due to the weakening of the Brazilian Real, the Argentinean Peso and the Israeli Shekel versus the US Dollar. The subscriber base grew by 19,000 to 623,000 as of December 31, 2011, as compared with 604,000 as of December 31, 2010. Product revenues declined by 29% as compared with the same period last year. The decline was primarily due to the above-mentioned currency effects, a decrease in the number of new cars sold in Israel in the fourth quarter of 2011 compared with 2010 and a decrease in sales of the Company's subsidiary ERM.

Gross profit for the fourth quarter of 2011 was $18.5 million (50.1% of revenues) compared with $20.0 million (49.1% of revenues) in the fourth quarter of 2010.

Operating profit for the fourth quarter of 2011 was $7.6 million (20.6% of revenues) compared with an operating profit of $8.6 million (21.0% of revenues) in the fourth quarter of 2010.

EBITDA for the fourth quarter of 2011was $11.5 million (31.2% of revenues) compared to an EBITDA of $12.9 million (31.7% of revenues) in the fourth quarter of 2010.

Financial income for the fourth quarter of 2011 was $0.7 million compared with a financial Expenses of $0.3 million in the fourth quarter of 2010.

Net income in the fourth quarter of 2011 was $6.1 million (16.4% of revenues) compared with a loss of $6.5 million in the fourth quarter of 2010. Fully diluted earnings per share in the fourth quarter of 2011 was $0.29, compared with a loss per share of $0.31 in the fourth quarter of 2010.

Cash flow generated from operations during the quarter was $12.6 million.

Full Year Results

Revenues for 2011 reached $160.2 million. This is an increase of 8.5% over revenues of $147.8 million in 2010. A part of the increase was due to currency fluctuations during the year.

Gross profit for 2011 was $79.3 (49.5% of revenues), compared with $72.7 million (49.1% of revenues) in 2010.

Operating profit for 2011 was $34.5 million (21.5% of revenues) compared with an operating profit of $30.7 million (20.7% of revenues) in 2010.

EBITDA for the year was $51.5 million (32.1% of revenues) compared to an EBITDA of $46.6 million (31.6% of revenues) in 2010.

Net income in 2011 was $25.8 million (16.1% of revenues) or fully diluted earnings per share of $1.23. This is compared with a reported net income in 2010 of $8.7 million (5.9% of revenues) which includes a $12.3 million effect for the Leonardo litigation. Excluding this effect, net income in 2010 would have been $21.0 million (14.2% of revenues), or fully diluted earnings per share of $1.00.

Cash flow from operations for 2011 was $45.9 million. As of December 31, 2011, the Company had net cash, including marketable securities and deposits for short and long term, of $39.7 million or $1.89 per share. This is compared with US$56.9 million or $2.71 per share as of September 30, 2011, and $60.9 million or $2.90 per share as of December 31, 2010.

As reported in the financial results press release for the third quarter of 2011, due to the recent Leonardo litigation and ST arbitration with regard to the sale of Telematics, an amount totaling approximately $27 million was paid out in the fourth quarter of 2011, reducing the Company’s year-end cash position.

Dividend

The Board of Directors announced a dividend amounting to $25.8 million or $1.23 per share, which is 100% of the net profit for 2011. Based on an average share price during 2011 of $14.11, this represents a dividend yield of 8.7% for 2011.

The Board of Directors approved a change to the dividend policy, whereby starting from the first quarter of 2012, the dividend will be issued on a quarterly basis instead of on an annual basis, as it has been to date. The Board maintained the policy of issuing not less than 50% of the Company’s quarterly net profit over the course of a year.

The dividend’s record date is March 20, 2012, and the dividend will be paid on April 4, 2012, net of taxes and levies, at the rate of 25%.

Eyal Sheratzky, Co-CEO of Ituran said, “The fourth quarter of 2011 completes a year of growth and improvement in our business. In 2011, we took some strategic steps in Brazil to improve our operations which will have the long-term effect of lowering the churn rate and increase the average amount of time a subscriber will stay with us. It already had a positive impact on our cash flow in the fourth quarter of 2011 and we expect it to improve our subscriber growth in 2012. Our business remains strong in all the geographies in which we operate, and we believe that in 2012 we will see the fruits of the efforts taken during the year and we expect our subscriber base to increase.

Conference Call Information

The Company will also be hosting a conference call later today, February 22, 2011 at 9am ET. 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 0644

CANADA Dial-in Number: 1 866 485 2399

INTERNATIONAL Dial-in Number: +972 3 918 0644

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.

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 623,000 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 Financial Statements

as of December 31, 2011

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

Consolidated Financial Statements

as of December 31, 2011

Table of Contents

	Page
Consolidated Financial Statements:

Balance Sheets	2 – 3

Statements of Income	4

Statements of Cash Flows	5

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	US dollars
	December 31,
(in thousands)	2011		2010

Current assets
Cash and cash equivalents		35,270		46,674
Deposit in escrow		-		5,238
Investments in marketable securities		68		1,509
Accounts receivable (net of allowance for doubtful accounts)		25,294		31,161
Loan to former employee		340		-
Other current assets		12,048		12,770
Inventories		10,881		8,501
		83,901		105,853

Long-term investments and debit balances
Deposit in escrow		4,888		7,858
Investments in affiliated company		207		220
Investments in other company		80		86
Other non-current assets		2,216		3,709
Loan to former employee		-		558
Deferred income taxes		5,568		4,934
Funds in respect of employee rights upon retirement		4,741		4,498
		17,700		21,863

Property and equipment, net		40,870		46,147

Intangible assets, net		3,355		4,402

Goodwill		9,234		10,079

Total assets		155,060		188,344

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	US dollars
	December 31,
(in thousands)	2011		2010

Current liabilities
Credit from banking institutions		390		98
Accounts payable		9,319		10,506
Deferred revenues		7,869		6,714
Litigation obligation		-		21,852
Other current liabilities		13,922		18,089
		31,500		57,259

Long-term liabilities
Long term loans		173		233
Liability for employee rights upon retirement		6,865		6,472
Provision for contingencies		4,250		5,324
Other current liabilities		753		1,974
Deferred revenues		728		873
Deferred income taxes		792		1,046
		13,561		15,922

shareholders’ equity		105,711		110,771
Non - controlling interest		4,288		4,392
Total shareholders’ equity		109,999		115,163

Total liabilities and shareholders’ equity		155,060		188,344

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

	US dollars						US dollars
	Year ended December 31,						Three month period ended December 31,
(in thousands except per share data)	2011			2010			2011			2010

Revenues:
Location-based services		120,410			108,101			28,442			28,780
Wireless communications products		39,757			39,724			8,534			11,965
		160,167			147,825			36,976			40,745

Cost of revenues:
Location-based services		49,293			40,820			11,615			10,872
Wireless communications products		31,578			34,354			6,833			9,881
		80,871			75,174			18,448			20,753

Gross profit		79,296			72,651			18,528			19,992
Research and development expenses		631			481			151			148
Selling and marketing expenses		8,543			8,675			2,156			2,174
General and administrative expenses		35,711			31,671			8,646			8,043
Other expenses (income), net		(77	)		1,156			(64	)		1,072
Operating income		34,488			30,668			7,639			8,555
Other expenses		(819	)		(14,745	)		(13	)		(14,745	)
Financing income (expenses) , net		2,100			139			671			(320	)
Income (loss) before income taxes		35,769			16,062			8,297			(6,510	)
Income tax		(8,950	)		(6,286	)		(1,954	)		258
Share in income (losses) of affiliated companies, net		(23	)		(3	)		(23	)		(1	)
Net income (loss) for the period		26,796			9,773			6,320			(6,253	)
Less :Net income attributable To non-controlling interest		(1,038	)		(1,071	)		(256	)		(287	)

Net income attributable to the company		25,758			8,702			6,064			(6,540	)

Basic and diluted earnings per Share of attributable to company's Stockholders		1.23			0.42			0.29			(0.31	)

Basic and diluted weighted average Number of shares outstanding		20,968			20,968			20,968			20,968

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	US dollars						US dollars
	Year ended December 31,						Three months period ended December 31 ,
(in thousands)	2011			2010			2011			2010

Cash flows from operating activities
Net income (loss) for the period		26,796			9,773			6,320			(6,253	)
Adjustments to reconcile net income to net cash from operating activities:
Depreciation amortization and impairment of goodwill		17,032			15,875			3,923			4,362
Exchange differences on principal of deposit and loan, net		(429	)		839			24			458
Gains in respect of marketable securities		(27	)		(5	)		(27	)		(5	)
Increase in liability for employee rights upon retirement		854			667			173			9
Share in losses of affiliated companies, net		23			3			23			1
Deferred income taxes		449			(1,159	)		1,815			(1,758	)
Capital loses (gains) on sale of property and equipment, net		63			(299	)		87			(320	)
Decrease (increase) in accounts receivable		3,649			(4,669	)		2,890			270
Decrease (increase) in other current assets		(1,252	)		(3,728	)		(1,317	)		(2,345	)
Increase in inventories		(2,985	)		(73	)		(1,781	)		(568	)
Decrease in accounts payable		(180	)		(3,810	)		527			(4,711	)
Increase in deferred revenues		1,550			1,752			182			2,520
Increase in other current liabilities		309			3,568			(220	)		3,236
Litigation obligation		-			14,745			-			14,745
Net cash provided by operating activities		45,852			33,479			12,619			9,641
Cash flows from investing activities
Increase in funds in respect of employee rights upon retirement, net of withdrawals		(563	)		(662	)		(152	)		(123	)
Capital expenditures		(16,161	)		(18,344	)		(2,822	)		(3,900	)
Intangible assets expenditures		(74	)		(90	)		(16	)		(90	)
Deposit		384			(52	)		(26	)		(7	)
Adjustment of proceeds received from the sale of subsidiary		(4,650	)		-			(4,650	)		-
Proceeds from sale of property and equipment		614			1,286			65			582
Investment in marketable securities		-			(2,664	)		-			(1,338	)
Sale of marketable securities		1,418			5,552			1,418			1,338
Deposit in escrow		8,223			-			7,620			-
Net cash provided by (used in) investment activities		(10,809	)		(14,974	)		1,437			(3,538	)
Cash flows from financing activities
Short-term credit from banking institutions ,net		299			46			(264	)		(670	)
Repayment of long term loans		(46	)		(18	)		(11	)		(12	)
Settlement of litigation obligation in connection with financial transaction		(22,419	)		-			(22,419	)		-
Acquisition of non- controlling interest		-			(2,250	)		-			-
Dividend paid to non-controlling interest		(767	)		-			(261	)		-
Dividend paid		(21,782	)		(31,620	)		-			-
Net cash used in financing activities		(44,715	)		(33,842	)		(22,955	)		(682	)

Effect of exchange rate changes on cash and cash equivalents		(1,732	)		1,198			430			1,039
Net Increase (decrease) in cash and cash equivalents		(11,404	)		(14,139	)		(8,469	)		6,460

Balance of cash and cash equivalents at beginning of period		46,674			60,813			43,739			40,214

Balance of cash and cash equivalents at end of period		35,270			46,674			35,270			46,674