Financial Data and Key Metrics Changes - Non-GAAP revenues for Q3 2019 were $70 million, a 31% increase from $53.4 million in Q3 2018, with local currency growth at 33% year-over-year [18] - Non-GAAP operating profit for Q3 2019 was $13.7 million, slightly below the $14 million reported in Q3 2018, with local currency profit unchanged year-over-year [20] - Non-GAAP net profit was $7.8 million in Q3 2019, down from $12.5 million in Q3 2018, resulting in a fully diluted EPS of $0.37 compared to $0.60 [20] Business Line Data and Key Metrics Changes - The aftermarket business in Israel showed stable performance with a leading market share, while new car sales remained similar to 2018 levels [5][6] - In Brazil, the aftermarket business faced growth challenges, but net subscriber additions returned to over 20,000 per quarter as of mid-2019 [10] - The OEM business in Mexico faced challenges due to the discontinuation of 2G networks, but customers have started using 3G systems as of October [12] Market Data and Key Metrics Changes - Revenue breakdown for Q3 2019: Israel 40%, Brazil 34%, and the rest of the world 26% [19] - The aftermarket in Mexico is expected to launch in the second half of 2020, with positive impacts anticipated in 2021 [11] Company Strategy and Development Direction - The company aims to provide a financial breakdown of its two main business segments starting from Q4 2019 to enhance performance analysis [4] - Ituran is focusing on expanding its aftermarket business model into new geographies following the acquisition of Road Track, while also seeking cost synergies to improve margins [15][50] - The company is positioning itself as a leading mobility technology investor in Israel, with plans to leverage technological advancements in the consumer-oriented mobility market [17] Management's Comments on Operating Environment and Future Outlook - Management described 2019 as a transition year with various challenges, but expressed optimism about overcoming these hurdles and improving visibility in 2020 [56][58] - The management acknowledged the impact of economic conditions in Brazil and Argentina on OEM business, but emphasized efforts to maintain margins and subscriber retention [23][30] Other Important Information - Cash flow from operations during Q3 2019 was $11.5 million, with cash and marketable securities totaling $56.5 million and debt at $74.5 million [20] - A dividend of $5 million was declared for Q3 2019, with a record date of December 24, 2019 [21] Q&A Session Summary Question: OEM situation in Brazil and subscriber numbers - Management indicated that while subscriber numbers are stable, ARPU is expected to decline due to changes in the free trial period and economic conditions [22][23] Question: Subscriber retention rates - Retention rates post-free trial are above 35%, which is considered successful compared to industry standards [27][28] Question: Impact of reduced free trial period on Q3 results - The change from a six-month to a three-month free trial period had a significant impact, with a revenue decline closer to $1.5 million in Q3 [33] Question: Growth expectations in Mexico - The company is cautiously optimistic about the growth potential in Mexico, expecting significant growth in 2021 and 2022 as market education progresses [36][37] Question: Update on Road Track acquisition - Management believes the acquisition was strategically sound, providing a platform for expansion into new markets despite current challenges in Brazil [50][52] Question: Visibility on future performance - Management acknowledged that 2019 has been a transition year affecting visibility, but expects improved clarity and performance in 2020 [56][58]

Financial Data and Key Metrics Changes - Non-GAAP revenues for Q2 2019 were $72.2 million, a 25% increase from $57.7 million in Q2 2018. In local currency terms, revenue would have grown by 33% year-over-year [18] - Adjusted EBITDA for the quarter was $20.6 million, a 15% increase compared to $17.8 million in Q2 2018. In local currency terms, the increase was 24% year-over-year [19] - Net profit was $9.6 million, or fully diluted EPS of $0.46, a decline of 20% year-over-year compared to $12 million, or EPS of $0.57 in Q2 2018 [20] - Cash flow from operations during the quarter was $16.3 million, with cash including marketable securities of $62.8 million and debt of $76.2 million, resulting in a net debt position of $13.4 million [21] Business Line Data and Key Metrics Changes - The aftermarket subscriber growth rate exceeded 20,000 in Q2 2019, returning to strong growth levels seen in previous years [4] - The active subscriber base at the end of Q2 was 1,757,000, with 1,250,000 from retail and 507,000 from OEM. The company added 21,000 aftermarket subscribers but experienced a decline of 47,000 OEM subscribers due to a reduction in the free trial period [13] - Subscription fees contributed $52.7 million, a 27% year-on-year increase, while product revenues were $19.6 million, a 21% increase over the same quarter last year [18] Market Data and Key Metrics Changes - Geographic revenue breakdown for Q2 was 38% from Israel, 38% from Brazil, and 24% from the rest of the world [18] - The company noted significant currency impacts, particularly from the Brazilian real and Argentinian peso, affecting revenue translation to U.S. dollars [13] Company Strategy and Development Direction - The company aims to leverage its new usage-based insurance (UBI) product as a significant growth vector across all regions [9] - The Road Track acquisition is intended to enhance the company's footprint as a major telematics player throughout Latin America [11] - The company is focused on cross-selling capabilities to newly acquired customers and expanding services into new countries [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improved financial performance towards the end of 2019 and into 2020, citing strong aftermarket subscriber growth and successful implementation of dynamic pricing in Brazil [4][14] - The management acknowledged challenges in the OEM segment due to economic conditions in Brazil but remains optimistic about stabilizing subscriber numbers [32] Other Important Information - A dividend of $5 million was declared for Q2 2019, with a record date of September 26, 2019, and payment scheduled for October 10, 2019 [22] - The company has initiated a $25 million share buyback program approved by the Board [16] Q&A Session Summary Question: Insights on aftermarket subscriber growth exceeding expectations - Management attributed the growth to the successful launch of a dynamic pricing system in collaboration with insurance companies in Brazil, which allowed for more customer recruitment and profitability [25] Question: Outlook on margin expansion in the aftermarket business - Management indicated that while subscriber growth is expected to continue, the financial results will take time to reflect this growth due to the fixed cost structure [28][29] Question: Impact of OEM subscriber decrease - The decrease was primarily due to a reduction in the free trial period by an OEM customer in Brazil, which led to a one-time drop in subscribers [31] Question: Expectations for OEM subscriber numbers in Q3 - Management expects OEM subscriber numbers to stabilize in Q3, with no further significant declines anticipated [35][52] Question: Clarification on gross margin trends - Management explained that recent declines in gross margin were due to the slow growth in Brazil, but they expect margins to improve as subscriber numbers increase [42][47]

Financial Data and Key Metrics Changes - Non-GAAP revenue for Q1 2019 was $74.6 million, an 18% increase compared to $63.1 million in Q1 2018, with local currency revenue growing 32% year-over-year [17] - Non-GAAP operating profit for Q1 2019 was $16.2 million, a 4% increase from $15.5 million in Q1 2018, with a 24% growth in local currency terms [18] - Net profit for the quarter was $10.7 million, or fully diluted EPS of $0.50, a decline of 5% year-over-year [19] Business Line Data and Key Metrics Changes - Active subscriber base at the end of Q1 2019 was 1,783,000, with retail subscribers at 1,229,000 and OEM subscribers at 554,000 [11] - Net additions in Q1 2019 totaled 13,000, with 8,000 from retail and 5,000 from OEM [11] - Subscription fee revenue was $54.2 million, representing a 19% year-on-year increase, with local currency growth of 36% [17] Market Data and Key Metrics Changes - Geographic revenue breakdown for Q1 2019: Israel 38%, Brazil 37%, and the rest of the world 25% [18] - The economic situation in Brazil has led to a slowdown in subscriber recruitment due to increased insurance premiums and customer filters [5][6] Company Strategy and Development Direction - The company aims to leverage its telematics services across Latin America, expanding its subscriber base beyond Israel and Brazil [3][4] - A new agreement with Harel Insurance in Israel is expected to accelerate subscriber growth through a usage-based insurance program [7][8] - The company is focusing on cross-selling capabilities and launching additional services in new geographies [13] Management's Comments on Operating Environment and Future Outlook - Management expects subscriber growth in Brazil to return to historical levels by Q2 2019, although financial impacts may take longer to materialize [30] - The company is optimistic about the potential of usage-based insurance (UBI) agreements, anticipating significant market interest and expansion opportunities [9][34] Other Important Information - A quarterly dividend of $5 million was declared, with a share buyback program of up to $25 million approved until December 2020 [14][15] - The company is experiencing currency translation impacts, particularly from the Brazilian Real, affecting reported revenues [12] Q&A Session Summary Question: Revenue per subscriber trends and future trajectory - Management noted that OEM subscribers have lower margins and ARPU, impacting overall revenue per subscriber [22][24] Question: Impact of pricing model changes in Brazil - Management expects immediate subscriber growth normalization in Brazil, with financial impacts materializing in the second half of the year [29][30] Question: UBI contract size and market potential - Management highlighted the strategic importance of the UBI contract with Harel and the potential for significant growth in the Israeli market [31][34] Question: Subscriber net additions and market maturity - Management clarified that the forecast of 15,000 to 20,000 net additions is specific to the retail aftermarket segment, with OEM growth being less predictable [41][42] Question: OEM partner behavior and subscriber base risks - Management acknowledged potential risks in the OEM subscriber base due to economic conditions but emphasized the importance of retail growth [44][45] Question: Future OEM partnerships and timelines - Management indicated ongoing discussions with new OEM partners, with expectations for potential announcements in the mid-term [46]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 Commission file no. 001-32618 ITURAN LOCATION AND CONTROL LTD. (Exact name of Registrant as specified in its charter and translation of Registrant's name into English) Israel (Jurisdiction of incorporation or organization) 3 Hashikma Street, Azour, Israel (Address of principal executive offices) Eli ...

Ituran Location and Control Ltd. (NASDAQ:ITRN) Q4 2018 Results Earnings Conference Call March 11, 2019 10:00 AM ET Company Participants Kenny Green - Investor Relations Eyal Sheratzky - Chief Executive Officer Udi Mizrahi - Deputy Executive Chief Executive Officer Eli Kamer - Executive Vice President of Finance and Chief Financial Officer Conference Call Participants Sasha Karim - IPI David Kelley - Jefferies Ethan Etzioni - Etzioni Portfolio Management Daniel Topaz - Alfa LTI Operator Ladies and gentlemen, ...