ITURAN PRESENTS SECOND QUARTER 2024 RESULTS
Continued strong profitability and reiterates guidance;
Declares an
AZOUR, Israel,
Highlights of the Second Quarter of 2024
- Number of subscribers reached 2,329,000, adding a net 38,000 in the second quarter.
- Revenue of
$84.9 million , an increase of 4% year-over-year. - Net income increased to
$13.1 million , up by 7% year-over-year. - EBITDA grew to
$23.1 million , a 6% increase year-over-year. - Operating cash flow of
$22.9 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
Overall, looking ahead to 2024, management reiterates its expectations for continued revenue and profit growth, adding approximately 35,000 to 40,000, net new subscribers per each quarter throughout 2024.
From a financial perspective, full-year 2024 EBITDA expectations continue to be between
Management Comment
Continued
Second Quarter 2024 Results
Revenues for the second quarter of 2024 were
It is noted that the strengthening of the US dollar in the second quarter versus the various local currencies in which Ituran operates in, impacted the revenues when translated into US dollars. In local currencies, revenues grew by 6% year-over-year.
71% of revenues were from location-based service subscription fees and 29% were from product revenues.
Revenues from subscription fees were
The subscriber base expanded to 2,329,000 by the end of
Product revenues were
Gross profit for the quarter was
The gross margin in the quarter on subscription revenues improved to 58.2%, compared to 57.3% in the second quarter of last year. The gross margin on products was 18.9% in the quarter, compared with 21.0% in the second 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
EBITDA for the quarter was
Financial income for the quarter was
Net income for the second quarter of 2024 was
Cash flow from operations for the second quarter of 2024 was
On the balance sheet, as of
Dividend
The Board of Directors declared a dividend for the quarter of
The current dividend takes into account the Company's continuing strong profitability, ongoing positive cash flow and strong balance sheet.
The Company will also be hosting a conference call later today,
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:
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
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
For more information, please visit Ituran's website, at: www.ituran.com.
|
|
||||
|
|
|
|
|
|
|
|
|
US dollars |
||
|
|
|
|
|
|
|
(in thousands) |
|
2024 |
|
2023 |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
63,210 |
|
53,434 |
|
Investments in marketable securities |
|
81 |
|
119 |
|
Accounts receivable (net of allowance for |
|
49,168 |
|
45,390 |
|
Other current assets |
|
50,146 |
|
52,724 |
|
Inventories |
|
24,806 |
|
26,872 |
|
|
|
187,411 |
|
178,539 |
|
|
|
|
|
|
|
Long-term investments and other assets |
|
|
|
|
|
|
|
|
|
|
|
Investments in affiliated companies |
|
736 |
|
714 |
|
Investments in other companies |
|
2,060 |
|
2,213 |
|
Other non-current assets |
|
3,431 |
|
3,989 |
|
Deferred income taxes |
|
14,121 |
|
14,452 |
|
Funds in respect of employee rights upon |
|
19,364 |
|
18,525 |
|
|
|
39,712 |
|
39,893 |
|
|
|
|
|
|
|
Property and equipment, net |
|
35,582 |
|
41,955 |
|
|
|
|
|
|
|
Operating lease right of use assets, net |
|
7,342 |
|
8,071 |
|
|
|
|
|
|
|
Intangible assets, net |
|
9,488 |
|
10,830 |
|
|
|
|
|
|
|
|
|
39,219 |
|
39,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
318,754 |
|
318,688 |
|
|
||||
|
|
|
|
|
|
|
|
|
US dollars |
||
|
|
|
|
|
|
|
(in thousands) |
|
2024 |
|
2023 |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Credit from banking institutions |
|
236 |
|
355 |
|
Accounts payable |
|
20,913 |
|
20,842 |
|
Deferred revenues |
|
25,557 |
|
27,117 |
|
Other current liabilities |
|
45,215 |
|
44,150 |
|
|
|
91,921 |
|
92,464 |
|
|
|
|
|
|
|
Long-term liabilities |
|
|
|
|
|
Loan from bank institutions |
|
- |
|
237 |
|
Liability for employee rights upon retirement |
|
25,317 |
|
24,562 |
|
Deferred income taxes |
|
703 |
|
1,116 |
|
Deferred revenues |
|
12,636 |
|
13,259 |
|
Others non-current liabilities |
|
2,058 |
|
2,027 |
|
Operating lease liabilities, non-current |
|
4,458 |
|
4,774 |
|
|
|
45,172 |
|
45,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
175,512 |
|
174,454 |
|
Non-controlling interests |
|
6,149 |
|
5,795 |
|
Total equity |
|
181,661 |
|
180,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
318,754 |
|
318,688 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
US dollars |
|
US dollars |
||||
|
|
|
Six months period |
|
Three months period |
||||
|
(in thousands |
|
ended |
|
ended |
||||
|
except per share data) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
(unaudited) |
|
(unaudited) |
||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
Telematics services |
|
121,352 |
|
114,963 |
|
60,417 |
|
59,186 |
|
Telematics products |
|
48,543 |
|
46,154 |
|
24,452 |
|
22,459 |
|
|
|
169,895 |
|
161,117 |
|
84,869 |
|
81,645 |
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues: |
|
|
|
|
|
|
|
|
|
Telematics services |
|
50,746 |
|
48,642 |
|
25,225 |
|
25,250 |
|
Telematics products |
|
39,802 |
|
37,124 |
|
19,840 |
|
17,733 |
|
|
|
90,548 |
|
85,766 |
|
45,065 |
|
42,983 |
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
79,347 |
|
75,351 |
|
39,804 |
|
38,662 |
|
Research and Development expenses |
|
9,117 |
|
8,354 |
|
4,594 |
|
4,216 |
|
Selling and Marketing expenses |
|
7,272 |
|
6,606 |
|
3,698 |
|
3,283 |
|
General and Administrative expenses |
|
28,307 |
|
27,716 |
|
13,851 |
|
14,443 |
|
Other expenses (income), net |
|
(123) |
|
118 |
|
(84) |
|
75 |
|
Operating income |
|
34,774 |
|
32,557 |
|
17,745 |
|
16,645 |
|
Other expenses, net |
|
- |
|
(3) |
|
0 |
|
(24) |
|
Financing income, net |
|
131 |
|
154 |
|
56 |
|
349 |
|
Income before income tax |
|
34,905 |
|
32,708 |
|
17,801 |
|
16,970 |
|
Income tax expenses |
|
(7,205) |
|
(7,220) |
|
(3,775) |
|
(3,801) |
|
Share in losses of affiliated companies, net |
|
(122) |
|
(627) |
|
(41) |
|
(261) |
|
Net income for the period |
|
27,578 |
|
24,861 |
|
13,985 |
|
12,908 |
|
Less: Net income attributable to non-controlling interest |
|
(1,415) |
|
(1,257) |
|
(858) |
|
(659) |
|
Net income attributable to the Company |
|
26,163 |
|
23,604 |
|
13,127 |
|
12,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share attributable |
|
1.32 |
|
1.17 |
|
0.66 |
|
0.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted weighted average number of shares |
|
19,894 |
|
20,097 |
|
19,894 |
|
20,045 |
|
|
||||||||
|
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|
|
|
|
|
|
|
|
|
US dollars |
|
US dollars |
||||
|
|
|
Six months period |
|
Three months period |
||||
|
|
|
ended |
|
ended |
||||
|
(in thousands) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
(unaudited) |
|
(unaudited) |
||||
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
Net income for the period |
|
27,578 |
|
24,861 |
|
13,985 |
|
12,908 |
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash from operating |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
10,651 |
|
10,051 |
|
5,353 |
|
5,146 |
|
Loss (gain) in respect of trading marketable securities |
|
35 |
|
(53) |
|
139 |
|
(54) |
|
Increase in liability for employee rights upon retirement |
|
1,680 |
|
1,590 |
|
918 |
|
729 |
|
Share in losses of affiliated companies, net |
|
122 |
|
627 |
|
41 |
|
261 |
|
Deferred income taxes |
|
(1,237) |
|
(1,394) |
|
(447) |
|
(791) |
|
Capital loss (gain) from sale of property and equipment, net |
|
(95) |
|
46 |
|
(131) |
|
53 |
|
Increase in accounts receivable |
|
(6,544) |
|
(2,952) |
|
(1,704) |
|
(172) |
|
Increase in other current and non-current assets |
|
(4,371) |
|
(6,975) |
|
(886) |
|
(2,399) |
|
Decrease (increase) in inventories |
|
1,529 |
|
(609) |
|
1,008 |
|
(450) |
|
Increase (decrease) in accounts payable |
|
1,816 |
|
939 |
|
2,286 |
|
(2,726) |
|
Increase (decrease) in deferred revenues |
|
372 |
|
5,227 |
|
(892) |
|
2,498 |
|
Increase in other current and non-current liabilities |
|
2,803 |
|
3,544 |
|
3,268 |
|
2,504 |
|
Net cash provided by operating activities |
|
34,339 |
|
34,902 |
|
22,938 |
|
17,507 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investment activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in funds in respect of employee rights upon retirement, |
|
(1,515) |
|
(1,160) |
|
(808) |
|
(777) |
|
Capital expenditures |
|
(6,309) |
|
(6,282) |
|
(3,178) |
|
(3,379) |
|
Return of (investments in) affiliated and other companies, net |
|
57 |
|
(607) |
|
(81) |
|
(312) |
|
Return of (investments in) long term deposit |
|
23 |
|
(45) |
|
(41) |
|
(45) |
|
Sale of marketable securities |
|
- |
|
99 |
|
- |
|
- |
|
Proceeds from sale of property and equipment |
|
293 |
|
58 |
|
137 |
|
40 |
|
Net cash used in investment activities |
|
(7,451) |
|
(7,937) |
|
(3,971) |
|
(4,473) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short term credit from banking institutions, net |
|
(331) |
|
185 |
|
(58) |
|
(954) |
|
Repayment of long term loan |
|
- |
|
(7,907) |
|
- |
|
(3,765) |
|
Dividend paid |
|
(12,533) |
|
(5,617) |
|
(7,759) |
|
(2,820) |
|
Acquisition of company shares |
|
- |
|
(4,717) |
|
- |
|
(3,517) |
|
Dividend paid to non-controlling interest |
|
(1,630) |
|
(1,687) |
|
- |
|
(892) |
|
Net cash used in financing activities |
|
(14,494) |
|
(19,743) |
|
(7,817) |
|
(11,948) |
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
(2,619) |
|
(867) |
|
(1,975) |
|
(157) |
|
Net increase in cash and cash equivalents |
|
9,776 |
|
6,355 |
|
9,175 |
|
929 |
|
Balance of cash and cash equivalents at beginning of the period |
|
53,434 |
|
27,850 |
|
54,035 |
|
33,276 |
|
Balance of cash and cash equivalents at end of the period |
|
63,210 |
|
34,205 |
|
63,210 |
|
34,205 |
|
|
|
|
|
|
|
|
|
|
|
Supplementary information on financing and investing activities not |
|
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In |
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Logo: https://mma.prnewswire.com/media/1972820/Ituran_logo.jpg
Company Contact
udi_m@ituran.com
Deputy CEO & VP Finance, Ituran
(Israel) +972 3 557 1348
International Investor Relations
ituran@ekgir.com
EK Global Investor Relations
(US) +1 212 378 8040
View original content:https://www.prnewswire.com/news-releases/ituran-presents-second-quarter-2024-results-302225231.html
SOURCE
