Financial Data and Key Metrics Changes - Third quarter revenues were $83.5 million, a 3% increase compared to $81.1 million last year, with local currency revenues growing by 7% year-over-year [14] - EBITDA for the quarter was $23.3 million, or 27.9% of revenue, an increase of 4% compared to $22.5 million or 27.8% of revenues in the same quarter last year [16] - Net income for the third quarter was $13.7 million, or diluted earnings per share of $0.69, a 9% increase compared to $12.5 million or diluted earnings per share of $0.63 in the same quarter last year [17] - Cash flow from operations for the third quarter was $17.2 million, with a net cash position of $67.3 million as of September 30, 2024 [18] Business Line Data and Key Metrics Changes - Revenues from subscription fees were $59.6 million, a decrease of 1% year-over-year, while product revenues were $23.9 million, an increase of 14% year-over-year [15] - The subscriber base expanded to 2,369,000 by the end of the third quarter, an increase of 40,000 from the previous quarter [16] Market Data and Key Metrics Changes - Geographic breakdown of revenues: Israel accounted for 53%, Brazil for 23%, and the rest of the world for 24% [16] - The company reported a high level of 40,000 net subscriber additions in the quarter, achieving the top-end of expectations [5][6] Company Strategy and Development Direction - The company aims to build a strong aftermarket business in Chile and is in discussions with major OEM car manufacturers to expand services in South America [10] - A five-year contract with Nissan Chile was announced, which includes providing vehicle location units and telematics services [7][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2024 targets despite currency headwinds, reiterating guidance for full-year EBITDA of $90 million to $95 million [11] - The company noted that the demand for location-based products and telematics services remains strong, contributing to subscriber growth [6][13] Other Important Information - The Board of Directors declared a quarterly dividend of $8 million, reflecting strong profitability and cash flow [19] - The company is optimistic about future growth opportunities in the insurance sector, particularly with usage-based insurance products [39][42] Q&A Session Summary Question: Concerns about declining service segment prices - Management attributed the decline in service revenues to currency exchange effects, stating that service revenues actually increased when excluding currency impacts [23] Question: Operating margin improvements - The operating margin increased to 22% from 20.8% year-over-year, primarily due to operating leverage in the business model [25] Question: Partnerships with automakers and challenges - Management highlighted the long sales cycle in B2B partnerships, emphasizing the need for companies to align their strategies and validate technology before signing contracts [30][32] Question: Market attractiveness in larger countries - The company noted that security concerns drive demand for their services in Latin America, where theft rates are high [36] Question: Updates on motorcycle insurance products - Management reported growing traction in motorcycle insurance, particularly in Israel and Brazil, where solutions are being developed to reduce theft risks [49] Question: Stability of business in Israel amid economic challenges - Management explained that despite challenges, the high car theft rate has increased demand for their services, helping maintain stability [54] Question: Update on Bringg - Management indicated optimism regarding Bringg's growth and future potential, although specific financial details could not be disclosed [58] Question: Increase in other current and non-current assets - Management acknowledged the need to investigate the increase in current and non-current assets and promised to follow up with more information [63]

Subscriber Growth - The number of subscribers reached 2,369,000, adding a net 40,000 in the third quarter of 2024[3] Revenue and Income - Revenue for the third quarter of 2024 was $83.5 million, a 3% increase year-over-year from $81.1 million[7] - Net income increased to $13.7 million, up by 9% year-over-year, with diluted earnings per share of $0.69[12] - Revenues for telematics services reached $180,943 thousand for the nine months ended September 2024, a 4.9% increase from $175,115 thousand in the same period of 2023[31] - Net income attributable to the Company for the nine months ended September 2024 was $39,816 thousand, compared to $36,118 thousand in the prior year, representing a 4.7% increase[31] - Basic and diluted earnings per share attributable to Company's shareholders increased to $2.00 for the nine months ended September 2024, up from $1.80 in the same period of 2023[31] Profitability Metrics - EBITDA for the quarter was $23.3 million, representing a 4% increase compared to $22.5 million in the third quarter of last year[11] - Gross profit for the quarter was $40.2 million, representing 48.1% of revenues, a 2% increase year-over-year[9] - Operating income for the quarter was $18.4 million, a 9% increase compared to $16.9 million in the same quarter last year[11] - Gross profit for the nine months ended September 2024 was $119,504 thousand, up from $114,761 thousand, reflecting a growth of 3.2%[31] - Operating income for the nine months ended September 2024 was $53,134 thousand, an increase from $49,450 thousand in the prior year, reflecting a growth of 3.4%[31] Cash Position and Expenditures - The company had a net cash position of $67.3 million as of September 30, 2024, compared to $53.0 million at year-end 2023[14] - Net cash provided by operating activities for the nine months ended September 2024 was $51,575 thousand, slightly down from $55,439 thousand in the previous year[33] - Capital expenditures for the nine months ended September 2024 were $9,144 thousand, compared to $10,193 thousand in the same period of 2023[33] - The balance of cash and cash equivalents at the end of the period for September 2024 was $67,465 thousand, up from $39,879 thousand in the previous year[33] Dividends - The Board declared a dividend of $8 million, which is 60% higher than the same quarter last year[15] - The Company declared a dividend of $8 million in August 2024, to be paid in October 2024[34] Guidance - The guidance for full-year 2024 EBITDA expectations is between $90-95 million, with a target to surpass $100 million in 2025[4] Revenue Sources - 71% of revenues were from location-based service subscription fees, while 29% were from product revenues[8] Research and Development - Research and development expenses increased to $13,607 thousand for the nine months ended September 2024, compared to $12,746 thousand in the same period of 2023[31]

Core Insights - Ituran Location and Control Ltd. reported strong profitability for Q3 2024, with a net income of $13.7 million, a 9% increase year-over-year, and declared an $8 million dividend [1][2][13] Financial Performance - The number of subscribers reached 2,369,000, adding a net 40,000 in Q3 2024 [2][7] - Revenue for Q3 2024 was $83.5 million, a 3% increase from $81.1 million in Q3 2023; in local currencies, revenue grew by 7% year-over-year [2][6] - EBITDA for the quarter was $23.3 million, a 4% increase compared to $22.5 million in Q3 2023; in local currencies, EBITDA grew by 9% year-over-year [10] - Operating income was $18.4 million, representing a 9% increase compared to $16.9 million in Q3 2023 [10] - Gross profit for the quarter was $40.2 million, a 2% increase from $39.4 million in Q3 2023 [8] Revenue Breakdown - 71% of revenues were from location-based service subscription fees, totaling $59.6 million, a decrease of 1% year-over-year; in local currencies, subscription revenues grew by 4% [7] - Product revenues were $23.9 million, an increase of 14% year-over-year; in local currencies, product revenue grew by 15% [8] Guidance and Expectations - Management expects to add approximately 35,000 to 40,000 net new subscribers in Q4 2024 and projects full-year 2024 EBITDA to be between $90-95 million, with a target to surpass $100 million in 2025 [3][4] Dividend Declaration - The Board declared a dividend of $8 million, consistent with the previous quarter and a 60% increase over the same quarter last year, reflecting the company's strong profitability and cash flow [13]

Core Insights - Ituran Location and Control Ltd. (NASDAQ: ITRN) has not performed well in 2024, lagging behind the prime equity benchmark which has increased by 22% year-to-date [1] Company Performance - The company's performance in 2024 has been underwhelming compared to the overall market growth [1] Market Context - The prime equity benchmark has seen a significant rise, contrasting with Ituran's lackluster performance [1]

Conference Call Scheduled at 10am ET AZOUR, Israel, Oct. 15, 2024 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN), announced that it will be releasing its third quarter 2024 results on Thursday, November 21, 2024. The Company will be hosting a conference call later that day 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 begi ...

AerialPerspective Works/E+ via Getty Images Thesis My analysis points out that Ituran Location and Control Ltd. (NASDAQ:ITRN) had solid Q2 2024 numbers, with a GAAP EPS of $0.66 and $84.9 million in revenue. Despite that, the stock isn't hitting the marks people expected. Even though Ituran announced a $0.39 dividend, showing strong profits, investors might be spooked by currency swings and geopolitical risks. The analysis digs into why, even with a positive outlook for the telematics industry, Ituran's sto ...

Financial Data and Key Metrics - Q2 2024 revenue was $84.9 million, a 4% increase YoY, with local currency revenue growth of 6% [11] - Subscription fee revenue was $60.4 million, up 2% YoY (5% in local currency), while product revenue was $24.5 million, up 9% YoY (10% in local currency) [11] - EBITDA for the quarter was $23.1 million, a 6% increase YoY, with local currency growth of 9% [12] - Net income was $13.1 million, up 7% YoY, with diluted EPS of $0.66 [12] - Subscriber base grew by 38,000 to 2,329,000, at the high end of the company's expectations [4][12] Business Line Data and Key Metrics - Geographic revenue breakdown: Israel 51%, Brazil 24%, rest of the world 25% [12] - The company launched a new motorcycle telematics product in South America, targeting OEMs and insurance companies [7][21] - The SaaS technology for vehicle sharing is being expanded to new geographies, including Israel and the United States [5] Market Data and Key Metrics - The company is actively engaging with major OEM car manufacturers and broadening services to existing partners in South America [7] - The motorcycle telematics product is gaining traction in Brazil, with discussions ongoing with insurance companies and OEMs [21][22] Company Strategy and Industry Competition - The company is leveraging its technology from the Porsche Carrera Cup project to enhance its offerings for subscribers and OEMs [6] - Ituran is expanding successful initiatives from one geography to others, such as the collaboration with Santander Bank [5] - The company aims to cross the $100 million EBITDA milestone in 2025 [8] Management Commentary on Operating Environment and Future Outlook - Management highlighted the negative impact of currency devaluation on USD-denominated results but noted accelerated growth in local currencies [4] - The company expects to continue subscriber growth at 35,000 to 40,000 net new subscribers per quarter and maintains its full-year EBITDA guidance of $90 million to $95 million for 2024 [8] - Management anticipates long-term growth in revenue and profitability due to operating leverage and growing subscriber base [10] Other Important Information - The company declared a quarterly dividend of $8 million, a 60% increase YoY, with a dividend yield of over 6% [9][13] - Cash flow from operations was $22.9 million, and the net cash position stood at $63.1 million as of June 30, 2024 [13] Q&A Session Summary Question: What contributed to the stronger product growth this quarter? - The growth was mainly driven by the company's subsidiary, DRM, which had a strong quarter in hardware sales [14] Question: Are there any pricing pressures in the current macro environment? - No significant pricing pressures were observed, as the average ARPU is low, and hardware margins are already minimal [15] Question: Why was the aftermarket and OEM subscriber breakout not provided this quarter? - The company does not consistently provide this breakdown, and the differences were more balanced this quarter [16] Question: What is the outlook for product sales growth? - Product sales growth is expected to remain volatile due to inventory decisions and is best judged on an annual basis [17][18] Question: Can you provide more insights into the new motorcycle product? - The product is gaining traction in Brazil, targeting insurance companies and OEMs, with potential for significant growth in the next 1-2 years [21][22] Question: How should investors view growth going into 2025? - Investors should focus on EBITDA growth, with a goal of reaching $100 million in 2025, though currency fluctuations may impact this target [24][25] Question: Why did ARPU decline this quarter? - The decline was primarily due to currency depreciation, as ARPU in local currencies actually increased [28]

Exhibit 99.1 ITURAN PRESENTS SECOND QUARTER 2024 RESULTS Continued strong profitability and reiterates guidance; Declares an $8 million dividend for the second quarter of 2024 AZOUR, Israel – August 19, 2024 – Ituran Location and Control Ltd. (NASDAQ: ITRN) today announced its consolidated financial results for the second quarter 2024. Eyal Sheratzky, Co-CEO of Ituran said, "We are pleased with our second quarter results with continued solid growth in the subscriber base and ongoing strong financial perform ...

Continued strong profitability and reiterates guidance; Declares an $8 million dividend for the second quarter of 2024 AZOUR, Israel, Aug. 19, 2024 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN) today announced its consolidated financial results for the second quarter 2024. 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 milli ...

AZOUR, Israel, July 18, 2024 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN), announced that it will be releasing its second quarter 2024 results on Monday, August 19, 2024. | --- | --- | |-----------------|----------------------------------| | | | | Company Contact | International Investor Relations | | Udi Mizrahi | Ehud Helft | | | | (US) +1 212 378 8040 [email protected] To participate, please call one of the following teleconferencing numbers. Please begin placing your calls a few minut ...