ITRN Ituran Location and Control Ltd

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________

 

FORM 6-K

 

REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934

 

February 26, 2025

 

Commission File Number: 001-32618

 

Ituran Location and Control Ltd.

(Exact name of Registrant as specified in its Charter)

________________________

 

3 Hashikma Street, Azour 58001, Israel

(Address of Registrant’s principal executive offices)

________________________

 

On February 26, 2025, Ituran Location and Control Ltd. issued a press release announcing Q4 2024 and full year of 2024 earnings results with revenues for Q4 and full year of 2024 of $82.9 million and $336.3 million, respectively and net income on a GAAP-basis for Q4 2024 of $13.8 million and net income on a GAAP-basis for full year 2024 of $53.7 million.

 

The following document is attached hereto and incorporated by reference herein:

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

 

	ITURAN LOCATION & CONTROL LTD.
		(Registrant)
	By:	/s/ Eyal Sheratzky
		Name: Eyal Sheratzky
		Title: Co-Chief Executive Officer

Date: February 26, 2025

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ITURAN PRESENTS FOURTH QUARTER & FULL YEAR 2024 RESULTS

Increases net subscriber-add expectations for 2025 significantly to 180-200,000, expecting to

reach 2.6 million subscribers by year-end;

 Increases dividend policy by 25% to $10 million per quarter;

AZOUR, Israel – February 26, 2025. Ituran Location and Control Ltd. (NASDAQ: ITRN) today announced its consolidated financial results for the fourth quarter 2024.

Highlights of Full Year 2024

Highlights of the Fourth Quarter of 2024

Management Comment

Eyal Sheratzky, Co-CEO of Ituran said, “2024 was a strong year for Ituran marked by solid growth and operational improvements. Furthermore, our results were even better in local currency terms, though significant currency devaluations versus the dollar in the past year negatively impacted our reported financial results. We continue to add new subscribers across all our geographies at a high rate adding 157,000 subscribers in the year, at the upper end of our expected range.  Ituran continues to develop new products and services built on the latest technologies, leveraging cross-business synergies between the various parts of our business and offering our subscriber base an ever-broadening mix of value-adding products and services.”

Mr. Sheratzky continued, “Looking ahead to 2025, we expect to accelerate the growth in subscriber-adds, due to the investments in new products and advanced services that we have made in recent years. Our new expectations for net subscriber-adds are to jump to between 180,000-200,000 for the full year 2025. Our business remains fundamentally strong and is expanding across both our traditional regions in South America and Israel. We see strong and increasing demand for our broad location-based products and telematic services and look forward to another year of growth and strong profitability.”

Fourth Quarter 2024 Results

 

Revenues for the fourth quarter of 2024 were $82.9 million, a 7% increase compared with revenues of $77.8 million in the fourth quarter of 2023.

It is noted that the strengthening of the US dollar in the fourth quarter versus the various local currencies in which the Company operates impacted the revenues when translated into US dollars. In local currencies, revenues grew by 11% year-over-year.

74% of revenues were from location-based service subscription fees, and 26% were from product revenues.

Revenues from subscription fees were $61.5 million, an increase of 4% over the fourth quarter of 2023 revenues. In local currencies, subscription revenues grew by 9% year-over-year.

The subscriber base expanded to 2,409,000 by the end of December 2024, marking an increase of 40,000 from the previous quarter.

Product revenues were $21.3 million, an increase of 16% year-over-year. In local currencies, product revenue grew at more or less the same level at 16% year-over-year.

Gross profit for the quarter was $41.1 million (49.6% of revenues), a 7% increase compared with gross profit of $38.4 million (49.4% of revenues) in the fourth quarter of last year. In local currencies, gross profit grew by 10% year-over-year.

The gross margin in the quarter on subscription revenues improved strongly to 59.6%, compared to 57.8% in the fourth quarter of last year. The gross margin on products was 20.8% in the quarter, compared with 22.1% in the fourth quarter of last year. The variance in the product gross margin products between quarters was due to the change in the product mix sold.

Operating income for the quarter was $18.0 million (21.8% of revenues), representing a 9% increase compared to $16.5 million (21.2% of revenues) in the fourth quarter of last year. In local currencies, operating income grew 16% year-over-year.

EBITDA for the quarter was $22.5 million (27.2% of revenues), an increase of 3% compared with EBITDA of $21.9 million (28.2% of revenues) in the fourth quarter of last year. In local currencies, EBITDA grew 10% year-over-year.

Net income for the fourth quarter of 2024 was $13.8 million (16.7% of revenues) or diluted earnings per share of $0.70, an increase of 15% compared to $12.0 million (15.4% of revenues) or diluted earnings per share of $0.60 in the fourth quarter of last year. In local currencies, net income grew 22% year-over-year.

Cash flow from operations for the fourth quarter of 2024 was $22.7 million.

Full Year 2024 Results

Revenues for 2024 were a record $336.3 million, a 5% increase over the $320.0 million reported in 2023. 72% of revenues were from location-based service subscription fees and 28% were from product revenues. In local currencies, revenues grew by 8% year-over-year.

Revenues from subscription fees were $242.5 million, representing an increase of 3% over 2023. In local currencies, subscription revenues grew by 7% year-over-year.

Product revenues were $93.8 million, representing an increase of 10% compared with 2023. In local currencies, product revenues grew by more or less the same at 10% year-over-year.

Gross profit for the year was $160.6 million (47.8% of revenues). This represents an increase of 5% compared with gross profit of $153.2 million (47.9% of revenues) in 2023. The gross margin in the year on subscription revenues was 58.7%, compared with 57.9% in 2023. The gross margin on products was 19.5%, compared with 20.3% in 2023, with the variance representative of the product mix sold during the year. In local currencies, gross profit grew by 7% year-over-year.

Operating profit for 2024 was $71.2 million (21.2% of revenues), an increase of 8% compared with operating profit of $66.0 million (20.6% of revenues) in 2023. In local currencies, operating profit grew by 12% year-over-year.

EBITDA for 2024 was $91.3 million (27.1% of revenues), an increase of 5% compared to $87.0 million (27.2% of revenues) in 2023. In local currencies, EBITDA grew by 8% year-over-year.

Net income in 2024 was $53.7 million (16.0% of revenues) or fully diluted earnings per share of $2.70, an increase of 11% compared with net income of $48.1 million (15.0% of revenues) or fully diluted earnings per share of $2.41 in 2023. In local currencies, net income grew by 15% year-over-year.

Cash flow from operations for the year was $74.3 million.

On the balance sheet, as of December 31, 2024, the Company had cash, including marketable securities, of $77.4 million and debt of $0.1 million, amounting to a net cash position of $77.3 million. This is compared with cash, including marketable securities, of $53.6 million and debt of $0.6 million, amounting to a net cash position of $53.0 million, as of year-end 2023.

Dividend

The Board of Directors decided to increase the dividend policy for the current quarter and the

quarters ahead. A dividend of $10 million was declared for the quarter and upcoming quarters, representing a 25% increase over the dividend issued in the prior quarters.

The current dividend takes into account the Company’s continuing strong profitability, ongoing positive cash flow and strong balance sheet.

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The Company will also be hosting a video conference call via the Zoom platform later today, Wednesday, February 26, 2025 at 10am Eastern Time and 5pm Israel time.

On the call, management will review and discuss the results and will be available to answer investor questions.

To participate in the Zoom call, please register at the following link:

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.

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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, financing industries 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 over 2.4 million subscribers using its location-based services with a market leading position in Israel and Latin America. Established in 1995, Ituran has approximately 2,800 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

 

	Page
Condensed Consolidated Interim Financial Statements:
Condensed Consolidated Balance Sheets	2-3
Condensed Consolidated Statements of Income	4
Condensed Consolidated Statements of Cash Flows	5

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

		US dollars
		December 31,
(In thousands)		2024				2023
Current assets
Cash and cash equivalents			77,357				53,434
Investments in marketable securities			10				119
Accounts receivable (net of allowance for doubtful accounts)			47,688				45,390
Other current assets			48,620				52,724
Inventories			23,434				26,872
			197,109				178,539
Long-term investments and other assets
Investments in affiliated companies			519				714
Investments in other companies			1,491				2,213
Other non-current assets			3,300				3,989
Deferred income taxes			12,273				14,452
Funds in respect of employee rights upon retirement			21,823				18,525
			39,406				39,893
Property and equipment, net			33,080				41,955
Operating lease right-of-use assets, net			8,947				8,071
Intangible assets, net			9,011				10,830
Goodwill			39,325				39,400
Total assets			326,878				318,688

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS (cont.)

		US dollars
		December 31,
(In thousands)		2024				2023
Current liabilities
Credit from banking institutions			114				355
Accounts payable			18,847				20,842
Deferred revenues			22,857				27,117
Other current liabilities			45,904				44,150
			87,722				92,464
Long-term liabilities
Loan from bank institution			-				237
Liability for employee rights upon retirement			27,593				24,562
Deferred income taxes			418				1,116
Deferred revenues			12,231				13,259
Operating lease liabilities, non-current			5,562				4,774
Other non-current liabilities			2,095				2,027
			47,899				45,975
Stockholders' equity			185,227				174,454
Non-controlling interests			6,030				5,795
Total equity			191,257				180,249
Total liabilities and equity			326,878				318,688

ITURAN LOCATION AND CONTROL LTD.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

		US dollars
		Year ended December 31,								Three months period ended December 31,
(in thousands, except per share data)		2024				2023				2024				2023
										(unaudited)
Revenues:
Telematics services			242,491				234,541				61,548				59,426
Telematics products			93,766				85,437				21,335				18,382
			336,257				319,978				82,883				77,808
Cost of revenues:
Telematics services			100,195				98,707				24,875				25,080
Telematics products			75,442				68,110				16,892				14,328
			175,637				166,817				41,767				39,408
Gross profit			160,620				153,161				41,116				38,400
Research and development expenses			18,090				16,986				4,483				4,240
Selling and marketing expenses			15,271				13,643				3,980				3,535
General and administrative expenses			56,238				56,635				14,667				14,305
Other income, net			(148	)			(58	)			(49	)			(185	)
Operating income			71,169				65,955				18,035				16,505
Other income, net			-				2				-				5
Financing income (expenses), net			80				(1,552	)			(85	)			(1,653	)
Income before income tax			71,249				64,405				17,950				14,857
Income tax expenses			(14,579	)			(13,355	)			(3,345	)			(2,534	)
Share in profit (losses) of affiliated companies, net			(123	)			(706	)			178				116
Net income for the period			56,547				50,344				14,783				12,439
Less: net income attributable to non-controlling interest			(2,893	)			(2,207	)			(945	)			(420	)
Net income attributable to the Company			53,654				48,137				13,838				12,019
Basic and diluted earnings per share attributable to Company's shareholders			2.70				2.41				0.70				0.60
Basic and diluted weighted average number of shares outstanding (in thousands)			19,894				20,000				19,894				19,894

ITURAN LOCATION AND CONTROL LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

		US dollars
		Year ended December 31,								Three months period ended December 31,
(in thousands)		2024				2023				2024				2023
										(unaudited)
Cash flows from operating activities
Net income for the period			56,547				50,344				14,783				12,439
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization			20,083				21,068				4,497				5,407
Loss in respect of marketable securities and other investments			107				89				22				32
Increase in liability for employee rights upon retirement			3,199				2,507				954				226
Share in losses (profit) of affiliated companies, net			123				706				(178	)			(116	)
Deferred income taxes			(383	)			(3,125	)			958				(1,430	)
Capital loss on sale of property and equipment, net			128				89				114				54
Decrease (increase) in accounts receivable			(5,227	)			(26	)			(435	)			1,769
Decrease (increase) in other current and non-current assets			(6,498	)			(3,169	)			(1,170	)			940
Decrease in inventories			3,366				1,102				776				201
Increase (decrease) in accounts payable			176				(1,863	)			2,558				1,090
Increase (decrease) in deferred revenues			(804	)			5,703				(990	)			935
Increase in other current and non-current liabilities			3,450				3,793				803				232
Net cash provided by operating activities			74,267				77,218				22,692				21,779
Cash flows from investment activities
Increase in funds in respect of employee rights upon retirement, net of withdrawals			(3,353	)			(2,384	)			(1,016	)			(451	)
Capital expenditures			(13,632	)			(14,243	)			(4,488	)			(4,050	)
Return from (investments in) affiliated and other companies, net			708				(800	)			710				(244	)
Return from (investments in) long-term deposit			(122	)			(100	)			(41	)			40
Sale of marketable securities			-				99				-				-
Proceeds from sale of property and equipment			459				199				70				55
Net cash used in investment activities			(15,940	)			(17,229	)			(4,765	)			(4,650	)
Cash flows from financing activities
Repayment of long-term loan			-				(11,732	)			-				(244	)
Short term credit from banking institutions, net			(433	)			299				(49	)			(1,187	)
Dividend paid			(28,050	)			(11,561	)			(7,759	)			(2,943	)
Dividend paid to non-controlling interests			(3,286	)			(3,327	)			(25	)			-
Acquisition of company shares			-				(6,613	)			-				-
Net cash used in financing activities			(31,769	)			(32,934	)			(7,833	)			(4,374	)
Effect of exchange rate changes on cash and cash equivalents			(2,635	)			(1,471	)			(202	)			800
Net change in cash and cash equivalents			23,923				25,584				9,892				13,555
Balance of cash and cash equivalents at beginning of period			53,434				27,850				67,465				39,879
Balance of cash and cash equivalents at end of period			77,357				53,434				77,357				53,434

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