Le Lézard
Classified in: Transportation, Science and technology, Business, Covid-19 virus
Subject: ERN

ITURAN PRESENTS RECORD AFTER-MARKET SUBSCRIBER GROWTH IN ITS RESULTS FOR THE FIRST QUARTER OF 2022


Added 43,000 net subscribers and presents 7% growth in revenue & 13% growth in EBITDA

AZOUR, Israel , May 24, 2022 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN), today announced its consolidated financial results for the first quarter of 2022.

Highlights of the first quarter of 2022

Management Comment

Eyal Sheratzky, Co-CEO of Ituran said, "We are pleased with the financial results and the very solid start to 2022, demonstrating a real recovery in our aftermarket business across all our geographies as well as the contribution from some of our new growth engines: including UBI, finance customers and car rental companies. What I am most pleased about is the very solid growth in our subscriber base which strengthens our expectations of adding between 140 and 160 thousand net subscribers in 2022. Our subscriber base is expected to cross the two million customers mark during this year and I am very proud of soon reaching this milestone. I look forward to reaping the fruits of our continued growth in the upcoming quarters. "

First Quarter 2022 Results

Revenues for the first quarter of 2022 were $72.1 million, an increase of 7% compared with revenues of $67.4 million in the first quarter of 2021.

70% of revenues were from location-based service subscription fees and 30% were from product revenues.

Revenues from subscription fees were $50.2 million, an increase of 10% over first quarter 2021 revenues.

The subscriber base amounted to 1,924,000 as of March 31, 2022. This represents an increase of 43,000 net over that of the end of the prior quarter, and an increase of 136,000 year-over-year. During the quarter, there was an increase of 59,000 in the aftermarket subscriber base and a decrease of 16,000 in the OEM subscriber base.

Product revenues were $21.8 million, an increase of 0.5% compared with that of the first quarter of 2021.

Gross profit for the quarter was $33.3 million (46.2% of revenues), a 9% increase compared with gross profit of $30.7 million (45.5% of revenues) in the first quarter of 2021.

The gross margin in the quarter on subscription revenues was 55.9%, compared with 55.1% in the first quarter of 2021. The gross margin on products was 23.7% in the quarter, compared with 25.4% in the first quarter of 2021, and the product margin was somewhat impacted due to the product sales mix as well as increased spot prices of components due to the global shortage.

Operating income for the quarter was $14.4 million (19.9% of revenues), an increase of 12% compared with an operating income of $12.8 million (19.0% of revenues) in the first quarter of last year.  

EBITDA for the quarter was $19.3 million (26.7% of revenues), an increase of 13% compared with an EBITDA of $17.1 million (25.4% of revenues) in the first quarter of last year.    

Financial expense for the quarter was $2.6 million compared with a financial expense of $1.0 million in the first quarter of last year. The increase in financial expense in the quarter was primarily due to the fall in the public market value of Ituran's early-stage company holding, SaverOne, which amounted $2.4 million in the current quarter.

Net income for the first quarter of 2022 was $8.7 million (12.1% of revenues) or diluted earnings per share of $0.43, compared with $8.3 million (12.3% of revenues) or diluted earnings per share of $0.40.

Cash flow from operations for the first quarter of 2022 was $7.0 million.

As of March 31, 2022, the Company had cash, including marketable securities, of $45.2 million and short and long-term bank credit of of $26.5 million, amounting to a net cash of $18.7 million. This is compared with cash, including marketable securities, of $54.7 million and short and long-term bank credit of $31.4 million, amounting to a net cash of $23.3 million, as of December 31, 2021.

Dividend

For the first quarter of 2022, a dividend of $0.14 per diluted share (approximately $3.0 million) was declared. This is in line with the Board's current policy of issuing at least $3 million on a quarterly basis.

Buy Back

On August 4, 2021, Ituran announced that it Board of Directors made the decision to continue executing on the $19 million remainder of a $25 million share buy-back program that was first announced in 2019. Share repurchases, were funded by available cash and repurchases of Ituran's ordinary shares under SEC Rule10b-18 terms. In 2022, the share buyback was renewed on April 1.

Conference Call Information

The Company will also be hosting a conference call later today, May 24, 2022 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 industry 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 approximately 2 million subscribers using its location based services with a market leading position in Israel and Latin America. Established in 1995, Ituran has approximately 3,000 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

[email protected] 

Deputy CEO & VP Finance, Ituran

(Israel) +972 3 557 1348

International Investor Relations

Ehud Helft

[email protected]

GK  Investor & Public Relations

(US) +1 212 378 8040

 

 

 

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

 


US dollars


March 31,


December 31,

(in thousands)

2022


2021


(unaudited)











Current assets

 

     Cash and cash equivalents

43,254


50,306

     Investments in marketable securities

1,951


4,405

     Accounts receivable (net of allowance for doubtful accounts)

48,245


43,916

     Other current assets

44,544


36,979

     Inventories

31,550


27,128


169,544


162,734









Non- Current investments and other assets




     Investments in affiliated companies

1,218


885

     Investments in other companies

1,827


1,866

     Other non-current assets

3,405


3,146

     Deferred income taxes

11,412


11,091

     Funds in respect of employee rights upon retirement

16,263


16,205


34,125


33,193





Property and equipment, net

39,453


35,652





Operating lease right-of-use assets, net

11,682


4,690





Intangible assets, net

15,937


16,753





Goodwill

39,912


39,999

















Total assets

310,653


293,021









 

 

 

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS (cont.)



US dollars


March 31, 


December 31,

(in thousands)

2022


2021


(unaudited)



Current liabilities




     Credit from banking institutions

17,865


18,257

     Accounts payable

24,075


21,275

     Deferred revenues

23,401


24,333

     Other current liabilities

39,985


40,767


105,326


104,632





Non- Current liabilities




     Long term loan

8,597


13,169

     Liability for employee rights upon retirement

22,971


22,476

     Deferred income taxes

1,909


1,952

     Deferred revenues

12,064


8,902

     Others non-current liabilities

2,316


2,337

     Operating lease liabilities, non-current

8,457


1,750


56,314


50,586













Stockholders' equity

143,174


132,460

Non-controlling interests

5,839


5,343

Total equity

149,013


137,803

















Total liabilities and equity

310,653


293,021









 

 

 

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME




US dollars

(in thousands


Three months period
ended March 31,

except per share data)



2022


2021




(unaudited)

Revenues:






Telematics services



50,226


45,619

Telematics products



21,846


21,746




72,072


67,365







Cost of revenues:






Telematics services



22,132


20,471

Telematics products



16,677


16,231




38,809


36,702







Gross profit



33,263


30,663

Research and development expenses



4,140


3,546

Selling and marketing expenses



3,124


3,256

General and administrative expenses



11,712


11,098

Other income, net



(79)


(12)

     Operating income



14,366


12,775

Other expenses, net



-


(3)

Financing expenses, net



(2,565)


(993)

     Income before income tax



11,801


11,779

Income tax expenses



(2,464)


(2,813)

Share in losses of affiliated companies ,net



(43)


(11)

Net income for the period



9,294


8,955

Less: Net income attributable to non-controlling interest



(565)


(694)

Net income attributable to the Company



8,729


8,261







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



0.43


0.40







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



20,534


20,813













 

 

 

ITURAN LOCATION AND CONTROL LTD.


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS






US dollars




Three months period
ended March 31 ,


(in thousands)



2022


2021





(unaudited)


Cash flows from operating activities







Net income for the period



9,294


8,955


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






     Depreciation and  amortization



4,907


4,352


     Interest and exchange rate on short and long term credit



-


(29)


     Loss in respect of trading marketable securities



2,350


481


     Increase in liability for employee rights upon retirement, net



918


462


     Share in losses of affiliated company, net



43


11


     Deferred income taxes



157


(921)


     Capital gain from sale of property and equipment, net



(62)


(4)


     Increase in accounts receivable



(3,685)


(5,588)


     Increase in other current and non-current assets



(3,026)


(520)


     Decrease (increase) in inventories



(4,750)


1,660


     Increase (decrease) in accounts payable



1,211


(956)


     Increase decrease in deferred revenues



1,846


1,821


     Decrease in other current and non-current liabilities



(2,253)


(521)


          Net cash provided by operating activities



6,950


9,203









Cash flows from investment activities







     Increase in funds in respect of employee rights upon







     retirement, net of withdrawals



(392)


(739)


     Capital expenditures



(6,122)


(2,717)


     Investments in affiliated and other companies



(377)


(282)


     Investment in long term deposit



(22)


(79)


     Proceeds from sale of property and equipment



210


221


          Net cash used in investment activities



(6,703)


(3,596)









Cash flows from financing activities







     Short term credit from banking institutions, net



(49)


(49)


     Repayment of long term loan



(4,177)


(10,771)


     Dividend paid



(2,891)


-


     Dividend paid to non-controlling interest



-


(29)


          Net cash used in  in financing activities



(7,117)


(10,849)


Effect of exchange rate changes on cash and cash equivalents



(182)


(2,808)


Net decrease in cash and cash equivalents



(7,052)


(8,050)


Balance of cash and cash equivalents at beginning of period



50,306


72,183


Balance of cash and cash equivalents at end of period



43,254


64,133
















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

In March 2022, the Company declared a dividend in the amount of US$ 3 million. The dividend was paid in April 2022

 

 

 

SOURCE Ituran Location and Control Ltd.


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