AZOUR, Israel, Aug. 29,
2022 /PRNewswire/ -- Ituran Location and Control Ltd.
(NASDAQ: ITRN), today announced its consolidated financial results
for the second quarter of 2022.
Highlights of the Second Quarter of 2022
- Growth in total subscribers to approximately 1,972,000: net
increase in aftermarket of 50,000 and net decrease in OEM of
2,000;
- Revenues of $73.4 million, an
increase of 9% year-over-year;
- Net income of $8.7 million
compared with $9.1 million in the
second quarter of last year;
- EBITDA of $19.4 million, compared
with $18.2 million in the second
quarter of last year, up 7% year-over-year;
- Generated $10.9 million in
quarterly operating cash flow;
- Declared dividend of $3.0
million; purchased $3.4
million under share buy-back program;
Management Comment
Eyal Sheratzky, Co-CEO of Ituran, said, "We are
very pleased with the results of the second quarter, especially at
a time when component supply chains remained tight and new car
sales remain constrained. In particular, the above-average growth
in our after-market subscriber base has continued for the second
quarter this year and we have so far added 91,000 subscribers in
2022- well on target to reach or even surpass the top-end of our
expected range of between 140,000-160,000 for the year."
Continued Mr. Sheratzky, "The strong growth in our
subscriber base is beginning to be expressed in our subscriber
revenue growth, which despite currency headwinds, showed a growth
of 11% year-over-year. We also demonstrated a 130 basis-point
improvement in the subscriber gross margin, demonstrating that the
operating leverage in our business is beginning to become more
apparent."
Added Mr. Sheratzky, "Our continued profitability and
ongoing cash generation enable us to share the fruits of our
ongoing success with our shareholders. Beyond the regular dividend
payment of $3 million per quarter, we
purchased $3.4 million in shares
under our share buy-back program. Both our dividend and share
buy-back programs are expressions of our ongoing focus on
generating shareholder value."
Second Quarter 2022 Results
Revenues for the second quarter of 2022 were
$73.4 million, an increase of 9%
compared with revenues of $67.5
million in the second quarter of 2021. 71% of revenues were
from location-based service subscription fees and 29% were from
product revenues.
Revenues from subscription fees were $52.3 million, an increase of 11% over second
quarter 2021 revenues.
The subscriber base amounted to 1,972,000 as of June 30, 2022. This represents an increase of
48,000 net over that of the end of the prior quarter. During the
quarter, there was an increase of 50,000 in the aftermarket
subscriber base and a decrease of 2,000 in the OEM subscriber
base.
Product revenues were $21.1
million, an increase of 3% compared with that of the second
quarter of 2021.
Gross profit for the quarter was $33.8 million (46.1% of revenues), an 9% increase
compared with gross profit of $31.1
million (46.2% of revenues) in the second quarter of
2021.
The gross margin in the quarter on subscription revenues
improved to 56.8%, compared with 55.5% in the second quarter of
2021.
The gross margin on products was 19.6% in the quarter, compared
with 24.8% in the second quarter of 2021. The product margin was
impacted by the higher components' prices up until the beginning of
the year, due to the ongoing global shortage of component as well
as the product sales mix sold in the quarter. As the shortage of
components has began to ease, we expect improvement in our product
gross margins toward the end of the year
Operating income for the quarter was $14.4 million (19.7% of revenues), compared with
$13.8 million (20.4% of revenue) in
the second quarter of last year.
EBITDA for the quarter was $19.4 million (26.5% of revenues), compared with
$18.2 (26.9% of revenues) million in
the second quarter of last year.
Financial expense for the quarter was $1.4 million compared with a financial expense of
$1.0 million in the second quarter of
last year.
Net income for the second quarter of 2022 was
$8.7 million (11.9% of revenues) or
earnings per share of $0.43, compared
with a $9.1 million (13.5% of
revenues) or earnings per share of $0.44.
Cash flow from operations for the second quarter of 2022
was $10.9 million.
As of June 30, 2022, the Company
had cash, including marketable securities, of $33.2 million and debt of $20.1 million, amounting to a net cash of
$13.1 million. This is compared with
cash, including marketable securities, of $54.7 million and debt of $31.4 million, amounting to a net cash of
$23.3 million, as of December 31, 2021.
Dividend
For the second quarter of 2022, 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.
Buy Back
On August 4, 2021, Ituran
announced that its Board of Directors decided to continue executing
the $19 million remainder of a
$25 million share buy-back program
that was first announced in 2019. Under the current buy-back
program, 146,589 shares amounting to $3.4
million was purchased in the second quarter and
approximately $8 remains under the
current program.
The share repurchases, if any, will be funded by available cash
and repurchases of Ituran's ordinary shares will be made based on
SEC Rule10b-18 terms.
Conference Call Information
The Company will also be hosting a conference call later
today, August 29, 2022 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@ekgir.com
EK Global
Investor Relations
(US)
+1 212 378 8040
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
US dollars
|
|
June 30,
|
|
December
31,
|
(in thousands)
|
2022
|
|
2021
|
|
(unaudited)
|
|
|
|
|
|
|
Current assets
|
|
|
|
Cash and cash
equivalents
|
32,671
|
|
50,306
|
Investments in
marketable securities
|
496
|
|
4,405
|
Accounts receivable
(net of allowance for doubtful accounts)
|
45,837
|
|
43,916
|
Other current
assets
|
42,655
|
|
36,979
|
Inventories
|
29,154
|
|
27,128
|
|
150,813
|
|
162,734
|
|
|
|
|
Non- Current investments and other
assets
|
|
|
|
Investments in
affiliated companies
|
1,330
|
|
885
|
Investments in other
companies
|
1,658
|
|
1,866
|
Other non-current
assets
|
3,465
|
|
3,146
|
Deferred income
taxes
|
10,868
|
|
11,091
|
Funds in respect of
employee rights upon retirement
|
14,739
|
|
16,205
|
|
32,060
|
|
33,193
|
|
|
|
|
Property and equipment, net
|
40,263
|
|
35,652
|
|
|
|
|
Operating lease right-of-use assets,
net
|
10,815
|
|
4,690
|
|
|
|
|
Intangible assets, net
|
14,535
|
|
16,753
|
|
Goodwill
|
39,530
|
|
39,999
|
|
|
|
|
|
|
|
|
Total assets
|
288,016
|
|
293,021
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (cont.)
|
|
|
US dollars
|
|
June 30,
|
|
December 31,
|
(in thousands)
|
2022
|
|
2021
|
|
(unaudited)
|
|
|
Current liabilities
|
|
|
|
Credit from banking
institutions
|
16,219
|
|
18,257
|
Accounts
payable
|
20,890
|
|
21,275
|
Deferred
revenues
|
21,480
|
|
24,333
|
Other current
liabilities
|
37,241
|
|
40,767
|
|
95,830
|
|
104,632
|
|
|
|
|
Non- Current liabilities
|
|
|
|
Long term
loan
|
3,901
|
|
13,169
|
Liability for employee
rights upon retirement
|
21,171
|
|
22,476
|
Deferred income
taxes
|
1,863
|
|
1,952
|
Deferred
revenues
|
11,741
|
|
8,902
|
Others non-current
liabilities
|
2,182
|
|
2,337
|
Operating lease
liabilities, non-current
|
7,681
|
|
1,750
|
|
48,539
|
|
50,586
|
|
|
|
|
Stockholders' equity
|
137,590
|
|
132,460
|
Non-controlling interests
|
6,057
|
|
5,343
|
|
|
|
|
Total equity
|
143,647
|
|
137,803
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
288,016
|
|
293,021
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(LOSS)
|
|
|
US dollars
|
|
US dollars
|
|
|
Six month period
ended June 30,
|
|
Three month period
ended June 30,
|
|
(in thousands except per share
data)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Telematics
services
|
102,540
|
|
92,562
|
|
52,314
|
|
46,943
|
|
Telematics
products
|
42,920
|
|
42,265
|
|
21,074
|
|
20,519
|
|
|
145,460
|
|
134,827
|
|
73,388
|
|
67,462
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues:
|
|
|
|
|
|
|
|
|
Telematics
services
|
44,739
|
|
41,370
|
|
22,607
|
|
20,899
|
|
Telematics
products
|
33,627
|
|
31,652
|
|
16,950
|
|
15,421
|
|
|
78,366
|
|
73,022
|
|
39,557
|
|
36,320
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
67,094
|
|
61,805
|
|
33,831
|
|
31,142
|
|
Research and
development expenses
|
8,131
|
|
6,841
|
|
3,991
|
|
3,295
|
|
Selling and marketing
expenses
|
6,580
|
|
6,500
|
|
3,456
|
|
3,244
|
|
General and
administrative expenses
|
23,698
|
|
22,005
|
|
11,986
|
|
10,907
|
|
Other income,
net
|
(118)
|
|
(86)
|
|
(39)
|
|
(74)
|
|
Operating
income
|
28,803
|
|
26,545
|
|
14,437
|
|
13,770
|
|
Other expense,
net
|
-
|
|
(3)
|
|
-
|
|
-
|
|
Financing expense,
net
|
(3,938)
|
|
(1,982)
|
|
(1,373)
|
|
(989)
|
|
Income before income
tax
|
24,865
|
|
24,560
|
|
13,064
|
|
12,781
|
|
Income tax
expenses
|
(5,918)
|
|
(5,718)
|
|
(3,454)
|
|
(2,905)
|
|
Share in losses of
affiliated companies ,net
|
(121)
|
|
(21)
|
|
(78)
|
|
(10)
|
|
Net income for the
period
|
18,826
|
|
18,821
|
|
9,532
|
|
9,866
|
|
Less: Net income
attributable to non-controlling interest
|
(1,359)
|
|
(1,452)
|
|
(794)
|
|
(758)
|
|
Net income attributable
to the Company
|
17,467
|
|
17,369
|
|
8,738
|
|
9,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share attributable to Company's
stockholders
|
0.85
|
|
0.83
|
|
0.43
|
|
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average number of shares outstanding (in
thousands)
|
20,497
|
|
20,813
|
|
20,460
|
|
20,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
|
|
US dollars
|
|
US dollars
|
|
|
|
Six month period
ended June 30,
|
|
Three month period
ended June 30,
|
(in thousands)
|
2022
|
2021
|
|
2022
|
|
2021
|
|
(unaudited)
|
|
(unaudited)
|
Cash flows from operating
activities
|
|
|
|
|
|
|
Net income (loss) for
the period
|
18,826
|
|
18,821
|
|
9,532
|
|
9,866
|
Adjustments to reconcile net income to net cash from
operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
9,893
|
|
8,735
|
|
4,986
|
|
4,383
|
Interest and exchange
rate differences on loans, net
|
-
|
|
4
|
|
-
|
|
33
|
Loss (gain) in respect
of trading marketable securities
|
3,772
|
|
365
|
|
1,422
|
|
(116)
|
Increase in liability
for employee rights upon retirement
|
1,072
|
|
1,178
|
|
154
|
|
716
|
Share in losses of
affiliated companies, net
|
121
|
|
21
|
|
78
|
|
10
|
Deferred income
taxes
|
142
|
|
(882)
|
|
(15)
|
|
39
|
Capital gain on sale
of property and equipment, net
|
(295)
|
|
(53)
|
|
(233)
|
|
(49)
|
Increase in accounts
receivable
|
(5,051)
|
|
(6,533)
|
|
(1,366)
|
|
(945)
|
Decrease (increase) in
other current assets
|
(6,251)
|
|
1,032
|
|
(3,225)
|
|
1,552
|
Decrease (increase) in
inventories
|
(3,995)
|
|
1,229
|
|
755
|
|
(431)
|
Increase (decrease) in
accounts payable
|
255
|
|
1,008
|
|
(956)
|
|
1,964
|
Increase
(decrease) in deferred
revenues
|
541
|
|
1,863
|
|
(1,305)
|
|
42
|
Increase
(decrease) in other current and
non-current liabilities
|
(1,228)
|
|
743
|
|
1,025
|
|
1,264
|
Increase in obligation
for purchase non-controlling interests
|
-
|
|
686
|
|
-
|
|
686
|
Net cash provided by
operating activities
|
17,802
|
|
28,217
|
|
10,852
|
|
19,014
|
|
|
|
|
|
|
|
|
Cash flows from investment
activities
|
|
|
|
|
|
|
|
Decrease (increase) in
funds in respect of employee rights
upon retirement, net of withdrawals
|
(373)
|
|
(1,504)
|
|
19
|
|
(765)
|
Capital
expenditures
|
(14,718)
|
|
(6,819)
|
|
(8,596)
|
|
(4,102)
|
Investments in
affiliated and other companies
|
(600)
|
|
(420)
|
|
(223)
|
|
(138)
|
Repayment of
(Investments in) long term deposit
|
130
|
|
(79)
|
|
152
|
|
-
|
Investment in
marketable securities
|
(103)
|
|
-
|
|
(103)
|
|
-
|
Proceeds from sale of
property and equipment
|
783
|
|
628
|
|
573
|
|
407
|
Net cash used in
investment activities
|
(14,881)
|
|
(8,194)
|
|
(8,178)
|
|
(4,598)
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
|
|
Short term credit from
banking institutions, net
|
(99)
|
|
(83)
|
|
(50)
|
|
(34)
|
Repayment of long term
loan
|
(8,223)
|
|
(14,982)
|
|
(4,046)
|
|
(4,211)
|
Dividend
paid
|
(5,766)
|
|
(10,100)
|
|
(2,875)
|
|
(10,100)
|
Purchase of treasury
shares
|
(3,446)
|
|
-
|
|
(3,446)
|
|
-
|
Dividend paid to
non-controlling interest
|
-
|
|
(385)
|
|
-
|
|
(356)
|
Net cash used in
financing activities
|
(17,534)
|
|
(25,550)
|
|
(10,417)
|
|
(14,701)
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
(3,022)
|
|
(1,080)
|
|
(2,840)
|
|
1,728
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents
|
(17,635)
|
|
(6,607)
|
|
(10,583)
|
|
1,443
|
Balance of cash and
cash equivalents at beginning of the period
|
50,306
|
|
72,183
|
|
43,254
|
|
64,133
|
Balance of cash and
cash equivalents at end of the period
|
32,671
|
|
65,576
|
|
32,671
|
|
65,576
|
|
|
|
|
|
|
|
|
|
|
|
In May
2022, the Company declared a dividend in an amount of
US$ 3 million. The dividend was paid in July 2022.
View original
content:https://www.prnewswire.com/news-releases/ituran-location-and-control-ltd-presents-results-for-the-second-quarter-of-2022-301613664.html
SOURCE Ituran Location and Control Ltd.