ITURAN PRESENTS RECORD AFTER-MARKET SUBSCRIBER GROWTH IN ITS RESULTS FOR THE FIRST QUARTER OF 2022

Added 43,000 web subscribers and presents 7% development in income & 13% development in EBITDA

AZOUR, Israel , Might 24, 2022 /PRNewswire/ — Ituran Location and Management Ltd. (NASDAQ: ITRN), at this time introduced its consolidated monetary outcomes for the primary quarter of 2022.

Highlights of the primary quarter of 2022

• 43,000 web subscriber development: web improve in aftermarket of 59,000 and web lower in OEM of 16,000 with complete variety of subscribers at 1,924,000 at quarter-end;
• Revenues of $72.1 million, a rise of seven% year-over-year;
• Internet revenue was $8.7 million, a rise of 6% year-over-year;
• EBITDA of $19.3 million, up 13% year-over-year;
• Generated $7.0 million in quarterly working money movement;
• Declared dividend of $0.14 per share (roughly $3 million) and continued the share buy-back program beginning on April 1, 2022.

Administration Remark

Eyal Sheratzky, Co-CEO of Ituran stated, “We’re happy with the monetary outcomes and the very strong begin to 2022, demonstrating an actual restoration in our aftermarket enterprise throughout all our geographies in addition to the contribution from a few of our new development engines: together with UBI, finance prospects and automotive rental firms. What I’m most happy about is the very strong development in our subscriber base which strengthens our expectations of including between 140 and 160 thousand web subscribers in 2022. Our subscriber base is anticipated to cross the 2 million prospects mark throughout this 12 months and I’m very happy with quickly reaching this milestone. I sit up for reaping the fruits of our continued development within the upcoming quarters. “

First Quarter 2022 Outcomes

Revenues for the primary quarter of 2022 had been $72.1 million, a rise of seven% in contrast with revenues of $67.4 million within the first quarter of 2021.

70% of revenues had been from location-based service subscription charges and 30% had been from product revenues.

Revenues from subscription charges had been $50.2 million, a rise of 10% over first quarter 2021 revenues.

The subscriber base amounted to 1,924,000 as of March 31, 2022. This represents a rise of 43,000 web over that of the top of the prior quarter, and a rise of 136,000 year-over-year. Through the quarter, there was a rise of 59,000 within the aftermarket subscriber base and a lower of 16,000 within the OEM subscriber base.

Product revenues had been $21.8 million, a rise of 0.5% in contrast with that of the primary quarter of 2021.

Gross revenue for the quarter was $33.3 million (46.2% of revenues), a 9% improve in contrast with gross revenue of $30.7 million (45.5% of revenues) within the first quarter of 2021.

The gross margin within the quarter on subscription revenues was 55.9%, in contrast with 55.1% within the first quarter of 2021. The gross margin on merchandise was 23.7% within the quarter, in contrast with 25.4% within the first quarter of 2021, and the product margin was considerably impacted as a result of product gross sales combine in addition to elevated spot costs of elements as a result of international scarcity.

Working revenue for the quarter was $14.4 million (19.9% of revenues), a rise of 12% in contrast with an working revenue of $12.8 million (19.0% of revenues) within the first quarter of final 12 months.  

EBITDA for the quarter was $19.3 million (26.7% of revenues), a rise of 13% in contrast with an EBITDA of $17.1 million (25.4% of revenues) within the first quarter of final 12 months.    

Monetary expense for the quarter was $2.6 million in contrast with a monetary expense of $1.0 million within the first quarter of final 12 months. The rise in monetary expense within the quarter was primarily as a result of fall within the public market worth of Ituran’s early-stage firm holding, SaverOne, which amounted $2.4 million within the present quarter.

Internet revenue for the primary quarter of 2022 was $8.7 million (12.1% of revenues) or diluted earnings per share of $0.43, in contrast with $8.3 million (12.3% of revenues) or diluted earnings per share of $0.40.

Money movement from operations for the primary quarter of 2022 was $7.0 million.

As of March 31, 2022, the Firm had money, together with marketable securities, of $45.2 million and quick and long-term financial institution credit score of of $26.5 million, amounting to a web money of $18.7 million. That is in contrast with money, together with marketable securities, of $54.7 million and quick and long-term financial institution credit score of $31.4 million, amounting to a web money of $23.3 million, as of December 31, 2021.

Dividend

For the primary quarter of 2022, a dividend of $0.14 per diluted share (roughly $3.0 million) was declared. That is in keeping with the Board’s present coverage of issuing no less than $3 million on a quarterly foundation.

Purchase Again

On August 4, 2021, Ituran introduced that it Board of Administrators made the choice to proceed executing on the $19 million the rest of a $25 million share buy-back program that was first introduced in 2019. Share repurchases, had been funded by obtainable money and repurchases of Ituran’s peculiar shares underneath SEC Rule10b-18 phrases. In 2022, the share buyback was renewed on April 1.

Convention Name Info

The Firm will even be internet hosting a convention name later at this time, Might 24, 2022 at 10am Japanese Time.

On the decision, administration will overview and focus on the outcomes, and might be obtainable to reply investor questions.

To take part, please name one of many following teleconferencing numbers. Please start putting your calls a couple of minutes earlier than the convention name commences. If you’re unable to attach utilizing the toll-free numbers, please strive the worldwide dial-in quantity.

US Dial-in Quantity: 1 866 860 9642
ISRAEL Dial-in Quantity: 03 918 0609
INTERNATIONAL Dial-in Quantity:  +972 3 918 0609
at:
10:00am Japanese Time, 7:00am Pacific Time, 5:00pm Israel Time

For these unable to take heed to the reside name, a replay of the decision might be obtainable from the day after the decision within the investor relations part of Ituran’s web site.

Sure statements on this press launch are “forward-looking statements” throughout the which means of the Securities Act of 1933, as amended.  These forward-looking statements embody, however will not be restricted to, our plans, goals, expectations and intentions and different statements contained on this report that aren’t historic details in addition to statements recognized by phrases corresponding to “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates” or phrases of comparable which means. These statements are based mostly on our present beliefs or expectations and are inherently topic to vital uncertainties and modifications in circumstances, lots of that are past our management. Precise outcomes might differ materially from these expectations on account of modifications in international political, financial, enterprise, aggressive, market and regulatory elements, in addition to elements associated to the worldwide COVID-19 pandemic.

About Ituran

Ituran is a frontrunner within the rising mobility know-how subject, offering value-added location-based providers, together with a full suite of providers for the connected-car. Ituran presents Stolen Car Restoration, fleet administration in addition to cell asset location, administration & management providers for autos, cargo and private safety for the retail, insurance coverage trade and automotive producers. Ituran is the biggest OEM telematics supplier in Latin America. Its merchandise and functions are utilized by prospects in over 20 nations. Ituran can be the founding father of the Tel-Aviv based mostly DRIVE startup incubator to advertise the event of sensible mobility know-how.

Ituran’s subscriber base has been rising considerably because the Firm’s inception to roughly 2 million subscribers utilizing its location based mostly providers with a market main place in Israel and Latin America. Established in 1995, Ituran has roughly 3,000 staff worldwide, with workplaces in Israel, Brazil, Argentina, Mexico, Ecuador, Columbia, India, Canada and america.

For extra data, please go to Ituran’s web site, at: www.ituran.com

Supplementary data on financing and investing actions not involving money flows:

In March 2022, the Firm declared a dividend within the quantity of US$ 3 million. The dividend was paid in April 2022

SOURCE Ituran Location and Management Ltd.