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Ituran Location and Control Ltd. Presents Results For The First Quarter Of 2021
[May 25, 2021]

Ituran Location and Control Ltd. Presents Results For The First Quarter Of 2021


AZOUR, Israel, May 25, 2021 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN), today announced its consolidated financial results for the first quarter of 2021.

Highlights of the first quarter of 2021

  • Continued growth as the Company continues to successfully overcome and exits the impacts of the Covid-19 pandemic;
  • Net increase in aftermarket subscribers of 25,000; net decrease in OEM subscribers of 5,000;
  • Revenue of $67.4 million at around the same level as in the first quarter of last year and up 6% sequentially;
  • Net income of $8.3 million, up 30% year-over-year and adjusted EBITDA of $17.1 million, up 12% year-over-year;
  • Generated $9.2 million in quarterly operating cash flow;
  • Declared dividend of $3 million;

Management Comment

Eyal Sheratzky, Co-CEO of Ituran said, "We are happy with the continued improvement in our quarterly results with a solid increase in profitability. We are especially pleased with the strong growth in our after-market subscriber base which grew by 25,000, above our typically expected range.  While the pandemic continues to impact many people in many of the countries we operate in, we are pleased that we are successfully overcoming the challenges and moving through 2021, we have returned to growth and improving profitability.

Mr. Sheratzky concluded, "Our results demonstrate that Ituran is emerging from this period as a stronger company, with a platform for continued sustainable and profitable growth. We expect the positive trends in our results to continue throughout the year ahead."

First Quarter 2021 Results

Revenues for the first quarter of 2021 were $67.4 million, a decrease of 1% compared with revenues of $68.4 million in the first quarter of 2020.

The higher average level of the US dollar exchange rate versus the Brazilian real during the quarter compared with the same period last year, reduced the overall revenue level in US dollar terms. In local currency terms, first quarter revenue were at the same level as those of the first quarter of last year.

68% of revenues were from location-based service subscription fees and 32% were from product revenues.

Revenues from subscription fees were $45.6 million, a decrease of 7% over first quarter 2020 revenues. In local currency terms, first quarter subscription fees decreased by 4% year-over-year.

The subscriber base amounted to 1,788,000 as of March 31, 2021.

This represents an increase of 20,000 net over that of the end of the prior quarter. During the quarter, there was an increase of 25,000 in the aftermarket subscriber base and a decline of 5,000 in the OEM subscriber base.

Product revenues were $21.7 million, an increase of 12% compared with that of the first quarter of 2020.  

Gross profit for the quarter was $30.4 million (45.1% of revenues), a 2% decrease compared with gross profit of $31.0 million (45.3% of revenues) in the first quarter of 2020.

The gross margin in the quarter on subscription revenues was 54.5%, compared with 54.4% in the first quarter of 2020. The gross margin on products was 25.4%, compared with 22.3% in the first quarter of 2020.

Operating income for the quarter was $12.8 million (19.0% of revenues), an increase of 27% compared with an operating income of $10.1 million (14.7% of revenues), in the first quarter of last year. In local currency terms, the operating income would have grown by 30%.

EBITDA for the quarter was $17.1 million (25.4% of revenues), an increase of 12% compared with an EBITDA of $15.3 million (22.4% of revenues) in the first quarter of last year. In local currency terms, the EBITDA would have increased by 16% year over year.

Financial expense for the quarter was $1.0 million compared with a financial expense of $0.7 million in the first quarter of last year.  

Net income for the first quarter of 2021 was $8.3 million (12.3% of revenues) or earnings per share of $0.40. This is an increase of 30% compared to a net income of $6.4 million and earnings per share of $0.31 in the first quarter of 2020.  

Cash flow from operations for the first quarter of 2021 was $9.2 million.

As of March 31, 2021, the Company had cash, including marketable securities, of $70.1 million and debt of $41.8 million, amounting to a net cash of $28.3 million. This is compared with cash, including marketable securities, of $78.8 million and debt of $54.5 million, amounting to a net cash of $24.3 million, as of December 31, 2020.

Dividend

For the first quarter of 2021, a dividend of $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.

Conference Call Information

The Company will also be hosting a conference call later today, March 25, 2021 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: 1 866 860 9642
ISRAEL Dial-in Number: 03 918 0609
INTERNATIONAL Dial-in Number:  +972 3 918 0609
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, 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 approaching 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

udi_m@ituran.com

Deputy CEO & VP Finance, Ituran

(Israel) +972 3 557 1348

International Investor Relations

Ehud Helft

ituran@gkir.com  

GK  Investor & Public Relations

(US) +1 646 201 9246 


 

 

CONDENSED CONSOLIDATED BALANCE SHEETS


US dollars


 March 31,         

December 31,

(in thousands)

2021

2020


(unaudited)





Current assets



Cash and cash equivalents

64,133

72,183

Investments in marketable securities

5,967

6,663

Accounts receivable (net of allowance for doubtful accounts)

43,336

39,343

Other current assets

36,377

38,624

Inventories

20,442

22,622





170,255

179,435




Non- Current investments and other assets



Investments in affiliated companies

900

908

Investments in other companies

1,495

1,263

Other non-current assets

3,396

2,953

Deferred income taxes

12,268

11,910

Funds in respect of employee rights upon retirement

13,798

13,558


31,857

30,592




Property and equipment, net

35,099

37,653




Operating lease right-of-use assets, net

4,942

5,548




Intangible assets, net

18,460

19,382




Goodwill

39,716

39,862







Total assets

300,329

312,472







 

CONDENSED CONSOLIDATED BALANCE SHEETS (cont.)


US dollars


March 31,

December 31,

(in thousands)

2021

2020


(unaudited)


Current liabilities



Credit from banking institutions

17,220

20,388

Accounts payable

17,753

19,716

Deferred revenues

25,445

24,351

Obligation to purchase non-controlling interests

10,595

10,595

Other current liabilities

45,520

37,677


116,533

112,727




Non- Current liabilities



Long term loan

24,568

34,068

Liability for employee rights upon retirement

19,515

19,715

Deferred income taxes

2,356

2,494

Deferred revenues

8,773

8,536

Others non-current liabilities

2,261

2,692

Operating lease liabilities, non-current

2,078

2,341


59,551

69,846







Stockholders' equity

121,024

127,192

Non-controlling interests

3,221

2,707

Total equity

124,245

129,899







Total liabilities and equity

300,329

312,472

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME



US dollars

(in thousands


Three months period
ended March 31,

except per share data)



2021

2020




(unaudited)

Revenues:





Telematics services



45,619

48,976

Telematics products



21,746

19,398




67,365

68,374






Cost of revenues:





Telematics services



20,770

22,342

Telematics products



16,231

15,063




37,001

37,405






Gross profit



30,364

30,969

Research and development expenses



3,546

3,886

Selling and marketing expenses



2,957

3,059

General and administrative expenses



11,098

13,923

Other expenses (income), net



(12)

27

Operating income



12,775

10,074

Other expenses, net



(3)

(10)

Financing expenses, net



(993)

(654)

Income before income tax



11,779

9,410

Income tax expenses



(2,813)

(1,926)

Share in losses of affiliated companies ,net



(11)

(903)

Net income for the period



8,955

6,581

Less: Net income attributable to non-controlling interest



(694)

(214)

Net income attributable to the Company



8,261

6,367






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



0.40

0.31






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



20,813

20,813

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



US dollars




Three months period
ended March 31 ,


(in thousands)



2021

2020





(unaudited)


Cash flows from operating activities






Net income for the period



8,955

6,581


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





Depreciation and  amortization



4,352

5,223


Interest and exchange rate on short and long term credit



(29)

(598)


Loss in respect of trading marketable securities



481

90


Increase in liability for employee rights upon retirement, net



462

834


Share in losses of affiliated company, net



11

903


Deferred income taxes



(921)

798


Capital losses (gain) from sale of property and equipment, net



(4)

60


Increase in accounts receivable



(5,588)

(4,491)


Increase in other current and non-current assets



(520)

(528)


Decrease (increase) in inventories



1,660

(378)


Increase (decrease) in accounts payable



(956)

190


Increase (decrease) in deferred revenues



1,821

(1,403)


Increase (decrease) in other current and non-current liabilities



(521)

3,380


Increase in obligation for purchase non-controlling interests



-

51


Net cash provided by operating activities



9,203

10,712








Cash flows from investment activities






Increase in funds in respect of employee rights upon






retirement, net of withdrawals



(739)

(108)


Capital expenditures



(2,717)

(3,451)


Investments in affiliated and other companies



(282)

(496)


Investment in long term deposit



(79)

(22)


Proceeds from sale of property and equipment



221

166


Net cash used in investment activities



(3,596)

(3,911)








Cash flows from financing activities






Short term credit from banking institutions, net



(49)

2,660


Repayment of long term loan



(10,771)

(4,285)


Dividend paid



-

(5,050)


Dividend paid to non-controlling interest



(29)

-


Net cash used in  in financing activities



(10,849)

(6,675)


Effect of exchange rate changes on cash and cash equivalents



(2,808)

(4,232)


Net decrease in cash and cash equivalents



(8,050)

(4,106)


Balance of cash and cash equivalents at beginning of period



72,183

53,964


Balance of cash and cash equivalents at end of period



64,133

49,858


 

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

In March 2021, the Company declared a dividend in the amount of US$ 10 million.  The dividend was paid on April 2021

 

 

Cision View original content:http://www.prnewswire.com/news-releases/ituran-location-and-control-ltd-presents-results-for-the-first-quarter-of-2021-301298547.html

SOURCE Ituran Location and Control Ltd.


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