exhibit_99-1.htm

Exhibit 99.1

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

ITURAN LOCATION AND CONTROL LTD. PRESENTS

RESULTS FOR THE THIRD QUARTER 2013

Record Operating Income of $10.8m and EPS of $0.33

AZOUR, Israel – November 13, 2013 – Ituran Location and Control Ltd. (NASDAQ: ITRN, TASE: ITRN), today announced its consolidated financial results for the third quarter ended September 30, 2013.

Highlights of the third quarter

·	A 19 thousand increase in net subscribers in the quarter, to a record of 721 thousand as of September 30, 2013;

·	Record gross margin at 51.8% and record operating margin at 25.5%;

·	EBITDA of $13.6 million or 32.1% of revenues;

·	Generated $13.3 million in operating cash flow; ended the quarter with $41.0 million in net cash (including deposits in escrow);

·	Dividend of $3.5 million declared for the quarter;

Third quarter 2013 Results

Revenues for the third quarter of 2013 were $42.4 million, representing a 15% growth from revenues of $36.8 million in the third quarter of 2012. 74% of revenues were from location based service subscription fees and 26% from product revenues.

Revenues from subscription fees increased 11% over the same period last year. The increase in subscription fees was primarily due to the growth in the subscriber base, which expanded from 653,000 as of September 30, 2012, to 721,000 as of September 30, 2013.

Product revenues increased by 27% compared with the same period last year. This increase was driven primarily by increased sales in Israel.

Gross profit for the third quarter of 2013 was $22.0 million (51.8% of revenues), an increase of 19% compared with $18.5 million (50.3% of revenues) in the third quarter of 2012.

Operating profit for the third quarter of 2013 was $10.8 million (25.5% of revenues), an increase of 47% compared with an operating profit of $7.4 million (20.1% of revenues) in the third quarter of 2012.

EBITDA for the quarter was $13.6 million (32.1% of revenues), an increase of 28% compared to an EBITDA of $10.6 million (28.9% of revenues) in the third quarter of 2012.

Net profit was US$7.0 million in the third quarter of 2013 (16.5% of revenues), compared with a net profit of US$5.2 million (14.2% of revenues) in the third quarter of 2012. Fully diluted EPS in the third quarter of 2013 was US$0.33, compared with fully diluted EPS of US$0.25 in the third quarter of 2012.

Cash flow from operations during the quarter was $13.3 million.

ITURAN LOCATION AND CONTROL LTD. AND ITS SUBSIDIARIES

As of September 30, 2013, the Company had net cash, including deposits in escrow, of $41.0 million or $1.95 per share. This is compared with $34.2 million or $1.63 per share as at December 31, 2012.

For the third quarter, a dividend of $3.5 million was declared in line with the Company’s stated policy of issuing at least 50% of net profits in a dividend, on a quarterly basis.

Eyal Sheratzky, Co-CEO of Ituran said, “We are very pleased with our performance in the third quarter of 2013, in particular our record gross and operating profitability, as well as our strong operating cash flow. As our results clearly demonstrate, the operating leverage built into our business model allows us to substantially benefit from the continued growth in our subscriber base.

Overall, our business continues its stable long-term and increasingly profitable growth, realizing the ongoing rewards of our past efforts. We believe 2013 will end as a record year for Ituran in terms of both revenue and ongoing profitability, and we look forward to maintaining our growth trend as we move into 2014. ”

Conference Call Information

The Company will also be hosting a conference call later today, November 13, 2013 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: 1 888 407 2553

ISRAEL Dial-in Number: 03 918 0650

CANADA Dial-in Number: 1 866 485 2399

INTERNATIONAL Dial-in Number: +972 3 918 0650

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.

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 721,000 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.

Condensed Consolidated Interim Financial Statements

as of September 30, 2013

ITURAN LOCATION AND CONTROL LTD.

Condensed Consolidated Financial Statements

as of September 30, 2013

Table of Contents

	Page

Balance Sheets	F- 2 - F- 3

Statements of Income	F- 4

Statements of Cash Flows	F- 5- F- 6

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

	US dollars
	September 30,		December 31,
(in thousands)	2013		2012

Current assets
Cash and cash equivalents		36,620		29,453
Deposit in escrow		4,977		-
Accounts receivable (net of allowance for doubtful accounts)		30,141		26,190
Other current assets		18,191		15,399
Inventories		12,504		14,747
		102,433		85,789

Long-term investments and other assets
Deposit in escrow		-		4,939
Investments in affiliated company		169		160
Investments in other company		87		82
Other non-current assets		1,140		1,890
Deferred income taxes		3,740		4,174
Funds in respect of employee rights upon retirement		6,303		5,515
		11,439		16,760

Property and equipment, net		35,695		34,156

Intangible assets, net		2,285		2,591

Goodwill		8,013		8,043

Total assets		159,865		147,339

F - 2

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

	US dollars
	September 30,		December 31,
(in thousands)	2013		2012

Current liabilities
Credit from banking institutions		596		221
Accounts payable		11,271		9,524
Deferred revenues		9,806		9,526
Other current liabilities		27,421		22,373
		49,094		41,644

Long-term liabilities
Liability for employee rights upon retirement		9,275		7,915
Provision for contingencies		2,745		3,864
Other non-current liabilities		100		460
Deferred revenues		1,061		806
Deferred income taxes		566		643
		13,747		13,688

Stockholders’ equity		92,727		88,027
Non-controlling interests		4,297		3,980
Total equity		97,024		92,007

Total liabilities and equity		159,865		147,339

F - 3

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

	US dollars						US dollars
	Nine month period ended September 30,						Three month period ended September 30,
(in thousands except per share data)	2013			2012			2013			2012

Revenues:
Location-based services		94,754			85,437			31,332			28,102
Wireless communications products		31,787			26,654			11,055			8,703
		126,541			112,091			42,387			36,805

Cost of revenues:
Location-based services		34,959			34,721			11,701			11,127
Wireless communications products		26,627			22,047			8,724			7,157
		61,586			56,768			20,425			18,284

Gross profit		64,955			55,323			21,962			18,521
Research and development expenses		526			500			192			160
Selling and marketing expenses		7,358			6,473			2,386			2,104
General and administrative expenses		25,915			25,442			8,567			8,314
Other expenses (income), net		913			985			(9	)		560
Operating income		30,243			21,923			10,826			7,383
Other income (expenses), net		-			6,755			-			-
Financing income (expenses), net		144			1,015			(96	)		196
Income before income tax		30,387			29,693			10,730			7,579
Income tax expense		(9,406	)		(8,364	)		(3,172	)		(2,121	)
Share in losses of affiliated companies, net		(1	)		(29	)		-			(15	)
Net income for the period		20,980			21,300			7,558			5,443
Less: Net income attributable to non-controlling interests		(1,266	)		(830	)		(576	)		(217	)
Net income attributable to the Company		19,714			20,470			6,982			5,226

Basic and diluted earnings per share attributable to Company’s stockholders		0.94			0.98			0.33			0.25

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

F - 4

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	US dollars						US dollars
	Nine month period ended September 30,						Three month period ended September 30,
(in thousands except per share data)	2013			2012			2013			2012
Cash flows from operating activities
Net income for the period		20,980			21,300			7,558			5,443
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		9,472			10,520			2,778			3,262
Exchange differences on principal of deposit and loans, net		229			(178	)		99			5
Gains in respect of trading marketable securities		-			(2	)		-			-
Increase in liability for employee rights upon retirement		921			703			193			44
Share in losses of affiliated companies, net		1			29			-			15
Deferred income taxes		6			281			458			433
Capital losses (gains) on sale of property and equipment, net		7			21			(2	)		26
Decrease (increase) in accounts receivable		(2,500	)		(2,465	)		1,371			777
Increase in other current assets		(715	)		(7,098	)		(1,889	)		(939	)
Decrease (increase) in inventories		3,060			(2,647	)		576			(880	)
Increase (decrease) in accounts payable		1,559			584			2,717			(2,131	)
Increase (decrease) in deferred revenues		(38	)		1,193			(556	)		540
Increase in other current liabilities		1,097			987			3			312
Net cash provided by operating activities		34,079			23,228			13,306			6,907
Cash flows from investment activities
Increase in funds in respect of employee rights upon retirement, net of withdrawals		(482	)		(498	)		(153	)		(132	)
Capital expenditures		(13,040	)		(4,822	)		(7,380	)		(1,064	)
Deposit		317			(281	)		4			(256	)
Proceeds from sale of property and equipment		485			276			262			115
Repayment of loan to a former employee		-			355			-			-
Sale of marketable securities		-			70			-			-
Company no longer consolidated (Appendix A)		-			326			-			326
Net cash used in investment activities		(12,720	)		(4,574	)		(7,267	)		(1,011	)
Cash flows from financing activities
Short term credit from banking institutions, net		489			53			510			(362	)
Repayment of long term loans		(114	)		(33	)		-			(11	)
Dividend paid to non-controlling interests		(1,233	)		(1,019	)		(692	)		(619	)
Dividend paid		(12,479	)		(28,116	)		(2,894	)		-
Net cash provided by (used in) financing activities		(13,337	)		(29,115	)		(3,076	)		(992	)
Effect of exchange rate changes on cash and cash equivalents		(855	)		(1,117	)		2			(189	)
Net increase in cash and cash equivalents		7,167			(11,578	)		2,965			4,715
Balance of cash and cash equivalents at beginning of period		29,453			35,270			33,655			18,977
Balance of cash and cash equivalents at end of the period		36,620			23,692			36,620			23,692

F - 5

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (cont.)

Appendix A – Company no longer consolidated

	US dollars
	Nine month period ended September 30,
(In thousands except per share data)	2013		2012

Working capital (excluding cash and cash equivalents and inventory), net		-		130
Account receivable in respect of sale of subsidiary		-		430
Property and equipment, net		-		(750	)
Intangible assets		-		(136	)
		-		(326	)

Supplementary information on investing activities not involving cash flows:

In September 2013, the Company declared a dividend in the amount of US$ 3.5 million. The dividend was paid in October 2013.

Supplementary disclosure of cash flow information

	US dollars
	Nine month period ended September 30,
(In thousands except per share data)	2013		2012

Interest paid		245		583

Income taxes paid, net of refunds		6,366		5,807

F - 6