Conference Call Scheduled at 9am Eastern TimeAZOUR, Israel, April 29, 2025 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN), announced that it will be releasing its first quarter 2025 results on Wednesday, May 28, 2025.The Company will be hosting a video conference call later that day via Zoom, starting at 9am Eastern Time, 6am Pacific Time and 4pm Israel time. On the call, management will review and present the results and will be available to answer investor questions.To participate in the ...

Revenue Generation and Market Dynamics - The company relies on relationships with insurance companies and car manufacturers for revenue generation from its stolen vehicle recovery (SVR) services and telematics products, which are critical for growth potential [33]. - Changes in insurance company practices could adversely affect revenues, as they currently mandate or incentivize the use of SVR services for certain vehicle owners [34]. - A reduction in vehicle theft rates may lead to decreased demand for SVR services and telematics products, impacting overall revenue [39]. - Declines in new car sales in the markets could reduce the addressable market for SVR services and telematics products, negatively affecting demand [40]. - Global and local economic downturns could adversely affect consumer spending in the automobile industry, impacting the company's future revenue and earnings [80]. - The company generated total revenues of $336.3 million in 2024, compared to $320 million in 2023, indicating an overall growth of 5.4% [174]. - Revenues in the telematics services segment rose by $8.0 million from $234.5 million in 2023 to $242.5 million in 2024, or 3.4%, driven by an increase in average annual subscribers from 2,186,000 to 2,350,000 [211]. - Revenues in the telematics products segment increased from $85.4 million in 2023 to $93.8 million in 2024, or 9.7%, primarily due to higher unit sales [212]. Competition and Technological Challenges - The company faces significant competition in the telematics market, which could adversely affect its operational results if it fails to compete effectively [41]. - The rapid technological changes and the introduction of new competitive products may render the company's offerings less competitive, potentially leading to revenue declines [42]. - The effectiveness of telematics products is contingent on local law enforcement's ability to recover stolen vehicles, which can impact customer perception and revenue [43]. - The company competes on technology edge, functionality, and service availability across various markets [116]. Operational Risks and Challenges - The company outsources manufacturing to third parties, which poses risks related to timely product delivery and cost-effectiveness, potentially impacting revenues and profit margins [49]. - Expansion into new markets presents risks such as longer payment cycles and difficulties in enforcing agreements, which may impede revenue generation and growth strategy [54]. - The company relies on specific licenses and approvals from governmental authorities for operations, and any loss of these could significantly increase costs and reduce revenues [46]. - The company relies on GPS/GPRS technology, and any loss or increased costs associated with this technology could negatively impact future revenues and growth [55]. - A major cybersecurity breach could harm operations, potentially leading to data corruption and financial losses, which may not be covered by current insurance policies [56][57]. - Labor disputes in Brazil and Argentina could result in strikes, delaying revenue generation in those markets [58]. - The company has faced semiconductor shortages, leading to inventory orders placed 12 months in advance, which may increase product costs if shortages persist [59]. - Inflation and rising interest rates in key operating territories have caused additional financing and operational costs, potentially impacting results [60]. Market Presence and Subscriber Base - In 2024, 72% of the company's revenues were attributable to telematics services, with approximately 930,000 subscribers in Israel, 725,000 in Brazil, and 754,000 in other countries [89]. - The company provides fleet management services to approximately 474,000 end-users through corporate customers and 26,000 distributors as of December 31, 2024 [91]. - The company has installed 98 base sites in Israel, 124 in Sao Paulo, and 7 in Buenos Aires, but many operate without local building permits, which could affect network coverage [61][62]. - As of December 31, 2024, the company served approximately 474,000 corporate customers and individuals in the fleet management market [111]. - In 2024, the total subscriber base for telematics services reached 2,409,000, an increase of 7% from 2,252,000 in 2023 [173]. Financial Performance and Investments - The company had capital expenditures of $13.6 million in 2024, down from $14.2 million in 2023 and $26.5 million in 2022, primarily financed by cash flows from operations [86]. - Operating income rose from $66.0 million in 2023 to $71.2 million in 2024, reflecting a 7.9% increase [219]. - General and administrative expenses decreased from $56.6 million in 2023 to $56.2 million in 2024, or 1% [218]. - Financing income, net, improved to $0.1 million in 2024 compared to a net expense of $1.6 million in 2023 [222]. - Income tax expenses increased from $13.4 million in 2023 to $14.6 million in 2024, or 9.2% [224]. Regulatory and Compliance Issues - The company is considered a monopoly under Israeli law, which imposes restrictions that may hinder business growth [69]. - Changes in Israel's judicial system may deter foreign investment and lead to increased currency fluctuations and interest rates, adversely affecting business operations [68]. - The company is not in compliance with all relevant laws regarding the erection of transmission antennas in Israel and Brazil, which may lead to potential sanctions [148]. Corporate Governance and Ethical Practices - The company has a zero-tolerance policy for corruption and promotes ethical practices and corporate governance [135]. - The company has implemented a "Whistle Blower" procedure to prevent illegal activities and protect its reputation [135]. - The company aims to reduce accessibility gaps in professional services globally, focusing on fair social and economic opportunities [136]. - The company has adopted an environmental policy aimed at reducing waste and greenhouse gas emissions through product development [139].

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Company Overview - Ituran Location and Control Ltd. is a global leader in vehicle telematics, providing value-added location-based services including Stolen Vehicle Recovery and fleet management [4] - The company has a subscriber base exceeding 2.4 million, with a strong market position in Israel and Latin America [5] - Ituran operates in over 20 countries and employs approximately 3,000 people worldwide [5] Upcoming Event - Ituran will participate in the 15th Annual LD Micro Invitational investor conference in New York on April 9th and 10th, 2025 [1] - CEO Ariad Sommer will present to investors on April 10 between 9:00-9:25 am [2] - Management will be available for one-on-one meetings with investors throughout the conference [2][3] Industry Context - Ituran is recognized as the largest OEM telematics provider in Latin America [4] - The company is also involved in promoting smart mobility technology through its DRIVE startup incubator based in Tel Aviv [4]

Financial Data and Key Metrics Changes - Fourth quarter revenues were $82.9 million, a 7% increase compared to $77.8 million in the same quarter last year. In local currency, revenues grew by 11% year over year [20][21] - Subscription fee revenue for the quarter was $61.5 million, a 4% year-over-year increase, while product revenues were $21.3 million, a 16% increase year over year [20][21] - Net income for the fourth quarter was $13.8 million, or diluted earnings per share of $0.70, a 15% increase compared to $12 million or $0.60 per share in the same quarter last year [22] - For the full year 2024, revenues reached a record $336 million, a 5% increase over $320 million in 2023, with net income of $53.7 million, an 11% increase compared to $48.1 million in 2023 [23][25] Business Line Data and Key Metrics Changes - The subscriber base grew to 2,409,000 by the end of the fourth quarter, with an addition of 40,000 subscribers from the previous quarter [21] - Revenue from location-based service subscription fees accounted for 72% of total revenues, while product revenue made up 28% [23] Market Data and Key Metrics Changes - Geographic breakdown of revenues in the fourth quarter was as follows: Israel 52%, Brazil 25%, Rest of the world 23% [21] - The usage-based insurance business in Israel is gaining traction, contributing to strong subscriber growth [12] Company Strategy and Development Direction - The company aims to accelerate subscriber growth, projecting an increase to between 180,000 and 200,000 new subscribers in 2025, which is over 20% ahead of 2024 rates [8][15] - New initiatives include a joint venture in India with Lumax and a five-year contract with Nissan in Chile, indicating a focus on expanding partnerships with OEMs [9][10][11] - The company is also exploring opportunities in the motorcycle market, which significantly increases its total addressable market [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth despite currency fluctuations, noting that local operations are performing well [15][39] - The high car theft rate in Israel is driving demand for security systems, which is expected to contribute to growth in the region [33][34] Other Important Information - The board of directors increased the quarterly dividend payment by 25% from $8 million to $10 million, reflecting strong profitability and cash flow [13][27] - The company reported a net cash position of $77.3 million as of December 31, 2024, compared to $53 million at the end of 2023 [26] Q&A Session Summary Question: Impact of product mix on gross margin - Management indicated that gross margin is affected by the product mix sold across different regions, with volatility between quarters [30][31] Question: Subscriber growth expectations for 2025 - Management highlighted growth in Israel due to high car theft rates and increasing demand for security systems, as well as traction in the motorcycle segment in Brazil [33][36] Question: EBITDA expectations for 2025 - Management noted that currency volatility makes it challenging to provide meaningful EBITDA guidance, but they remain optimistic about subscriber growth [39][42] Question: Plans to increase subscription fees in 2025 - Management stated that pricing is always reviewed, but no new decisions have been made regarding fee increases at this time [43][44] Question: Contribution of OEMs to subscriber growth - Management clarified that while OEM growth is occurring, the majority of growth is still coming from the retail market [48][50] Question: Revenue contribution from new products - Management did not disclose specific revenue contributions from new products but emphasized ongoing advancements in technology [51][53] Question: ARPU growth expectations - Management indicated that while subscriber growth may lead to a lower ARPU due to new solutions and OEM contracts, the overall impact on total ARPU will be minimal [60][62]

Core Viewpoint - Ituran Location and Control Ltd. has declared a cash dividend of $0.50 per share, totaling approximately $10 million, reflecting a 25% increase in the quarterly dividend amount as per the updated dividend policy [1][2]. Financial Summary - As of December 31, 2024, the company's retained earnings were $226.1 million, which will decrease to $216.1 million after the dividend distribution [3]. - The company had a cash balance of $77.4 million prior to the payment of a $8 million dividend for Q3 2024, which was paid in January 2025 [3]. - Current assets (excluding cash and cash equivalents) totaled $119.8 million, while current liabilities amounted to $87.9 million as of December 31, 2024 [3]. Company Overview - Ituran is a leader in mobility technology, providing location-based services including stolen vehicle recovery and fleet management [4]. - The company has a subscriber base exceeding 2.4 million, with a strong market position in Israel and Latin America [5]. - Established in 1995, Ituran employs approximately 2,800 people globally, with offices in multiple countries including Israel, Brazil, and the United States [5].

Core Insights - Michael Dion is an expert in FP&A, Corporate Finance, and Small Business with 12 years of experience in Fortune 100 companies and various industries [1] - He founded F9 Finance to assist finance professionals and small business owners in understanding finance and accounting concepts [1] - Dion's investment strategy focuses on identifying value opportunities where market reactions to news are disproportionate, emphasizing strong fundamentals and dividends [1] Industry and Company Analysis - The finance experience of Dion spans multiple sectors including Telecom, Media and Entertainment, Hospitality, and Construction [1] - The approach to investment prioritizes cash flow as a critical factor for both companies and investors [1]

Company Overview - Ituran Location and Control Ltd. is a leader in mobility technology, providing location-based services including stolen vehicle recovery, fleet management, and mobile asset location services for various industries [4][5] - The company is the largest OEM telematics provider in Latin America, with a subscriber base of almost 2.5 million across over 20 countries [4][5] Upcoming Financial Results - Ituran will release its fourth quarter and full year 2024 results on February 26, 2025, followed by a video conference call at 10am Eastern Time [1] - Management will review the results and answer investor questions during the call [1] Participation Details - Interested participants can register for the Zoom call via a provided link, and will receive access details upon registration [2] - For those unable to attend, a replay of the call will be available shortly after its conclusion [3]

Will attend and meet investors at the Needham growth conference on Tuesday, January 14 and the Freedom Israel Opportunities Event on Thursday, January 16  AZOUR, Israel, Jan. 9, 2025 /PRNewswire/ -- Ituran Location and Control Ltd. (Nasdaq: ITRN), a global leader in vehicle telematics, today announced management's participation at the 27th Annual Needham Growth Conference on Tuesday, January 14 and the Freedom Capital Markets Israel Opportunities Event on Thursday, January 16, both of which are taking place ...

AZOUR, Israel, Dec. 4, 2024 /PRNewswire/ -- Ituran Location and Control Ltd. (Nasdaq: ITRN) announced that its joint venture in India, Lumax Ituran Telematics Pvt Ltd., successfully concluded a validation and trial period for its connected telematic devices with Daimler India Commercial Vehicles (DICV) for its vehicles sold to the Indian market.DICV fully tested Ituran's devices across approximately 15,000 plus vehicles operating in India and Lumax-Ituran expect to continue to sell tens of thousands of conn ...