Ituran Location And Control Ltd. Presents Results For The First Quarter 2014 - San Diego, California News Station - KFMB Channel 8 - cbs8.com

Ituran Location And Control Ltd. Presents Results For The First Quarter 2014

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Ituran Location and Control Ltd.

Record Revenue of $45.5m; Record operating profit of $11.7m

AZOUR, Israel, May 15, 2014 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN, TASE: ITRN), today announced its consolidated financial results for the first quarter ended March 31, 2014.

Highlights of the first quarter

  • Net subscribers adds in the quarter amounting to 17 thousand, to a record of 758 thousand as of March 31, 2014;
  • Record operating margin at 25.7%
  • EBITDA of $14.4 million or 31.7% of revenues;
  • Generated $9.6 million in operating cash flow; ended the quarter with $47.4 million in net cash (including marketable securities and deposits in escrow);
  • Dividend of $4.0 million declared for the quarter;

First Quarter 2014 Results
Revenues for the first quarter of 2014 were $45.5 million, representing a 11% growth from revenues of $41.0 million in the first quarter of 2013. 71% of revenues were from location based service subscription fees and 29% from product revenues.

Revenues from subscription fees increased 3% over the same period last year. The increase in subscription fees was primarily due to the growth in the subscriber base, which expanded from 684,000 as of March 31, 2013, to 758,000 as of March 31, 2014. While subscriber numbers increased by 11%, the weakening of the Brazilian Real and Argentinean Peso versus the US Dollar over the period reduced the revenue level in US Dollars. Excluding the exchange rate impact, the increase in revenues from services would have been 13% over the first quarter of last year.

Product revenues increased by 39% compared with the same period last year. This increase was driven primarily by increased sales in Israel and ERM.

Gross profit for the first quarter of 2014 was $23.7 million (52.2% of revenues), an increase of 11% compared with $21.4 million (52.3% of revenues) in the first quarter of 2013.

Operating profit for the first quarter of 2014 was $11.7 million (25.7% of revenues), an increase of 26% compared with an operating profit of $9.3 million (22.6% of revenues) in the first quarter of 2013.

EBITDA for the quarter was $14.4 million (31.7% of revenues), an increase of 16% compared to an EBITDA of $12.4 million (30.3% of revenues) in the first quarter of 2013.

Net profit was US$7.3 million in the first quarter of 2014 (16.1% of revenues) or fully diluted EPS of US$0.35. This is compared with a net profit of US$6.0 million (14.7% of revenues) or fully diluted EPS of US$0.29 in the first quarter of 2013.

Cash flow from operations during the quarter was $9.6 million.

As of March 31, 2014, the Company had net cash, including marketable securities and deposits in escrow, of $47.4 million or $2.26 per share. This is compared with $46.6 million or $2.22 per share as at December 31, 2013.

Dividend
For the first quarter of 2014, a dividend of $4.0 million was declared in line with the Company's stated policy of issuing at least 50% of net profits in a dividend, on a quarterly basis.

Eyal Sheratzky, Co-CEO of Ituran said, "We are very pleased with our start to 2014. Most notably, we substantially increased our operating profitability in the quarter and this is despite a strong currency headwind. Our results continue to demonstrate of the strong operating leverage inherent in our business model. We look forward to maintaining our growth trend and continue to improve our margins as we move through 2014. "

Conference Call Information

The Company will also be hosting a conference call later today, May 15, 2014 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: 1 888 281 1167 
ISRAEL Dial-in Number: 03 918 0644 
CANADA Dial-in Number: 1 866 485 2399 
INTERNATIONAL Dial-in Number:  +972 3 918 0644  
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.

About Ituran

Ituran provides location-based services, consisting predominantly of stolen vehicle recovery and tracking services, as well as wireless communications products used in connection with its location-based services and various other applications. Ituran offers mobile asset location, Stolen Vehicle Recovery, management & control services for vehicles, cargo and personal security. Ituran's subscriber base has been growing significantly since the Company's inception to over 758,000 subscribers distributed globally. Established in 1995, Ituran has over 1,300 employees worldwide, provides its location based services and has a market leading position in Israel, Brazil, Argentina and the United States.

Company Contact

Udi Mizrahi

udi_m@ituran.com

VP Finance, Ituran

(Israel) +972 3 557 1348




International Investor Relations

Ehud Helft & Kenny Green

ituran@gkir.com 

GK Investor Relations

(US) +1 646 201 9246

 

ITURAN LOCATION AND CONTROL LTD.

CONSOLIDATED BALANCE SHEETS



US dollars


March 31,


December 31,

(in thousands)

2014


2013





Current assets




Cash and cash equivalents

41,352


41,697

Deposit in escrow

4,982


4,982

Investments in marketable securities

2,350


-

Accounts receivable (net of allowance for doubtful accounts)

33,300


29,239

Other current assets

21,184


18,437

Inventories

11,800


14,506


_______


_______


114,968


108,861


------------


------------





Long-term investments and other assets




Investments in affiliated company

1,415


1,423

Investments in other company

88


88

Other non-current assets

1,330


1,022

Deferred income taxes

3,518


3,781

Funds in respect of employee rights upon retirement

6,776


6,649


_______


_______


13,127


12,963


------------


------------





Property and equipment, net

33,319


32,546


------------


------------





Intangible assets, net

686


739


------------


------------





Goodwill

5,408


5,433


------------


------------


























_______


_______

Total assets

167,508


160,542


_______


_______


_______


_______

 

 

ITURAN LOCATION AND CONTROL LTD.

CONSOLIDATED BALANCE SHEETS



US dollars


March 31,

December 31,

(in thousands)

2014

2013




Current liabilities



Credit from banking institutions

1,239

38

Accounts payable

12,027

11,436

Deferred revenues

10,730

9,852

Other current liabilities

37,641

30,276


_______

_______


61,637

51,602


------------

------------




Long-term liabilities



Liability for employee rights upon retirement

10,083

9,607

Provision for contingencies

905

2,599

Deferred revenues

1,033

1,033

Deferred income taxes

203

216


_______

_______


12,224

13,455


------------

------------













Stockholders' equity

89,485

90,918




Non-controlling interests

4,162

4,567





_______

_______

Total equity

93,647

95,485


------------

------------





_______

_______

Total liabilities and equity

167,508

160,542


_______

_______


_______

_______

 

ITURAN LOCATION AND CONTROL LTD.

CONSOLIDATED STATEMENTS OF INCOME



US dollars


Three month period
ended March 31
,

(in thousands except per share data)

2014

2013



Revenues:



Location-based services

32,180

31,393

Wireless communications products

13,280

9,582


_______

_______


45,460

40,975


------------

------------




Cost of revenues:



Location-based services

11,085

11,108

Wireless communications products

10,631

8,460


_______

_______


21,716

19,568


------------

------------


_______

_______




Gross profit

23,744

21,407

Research and development expenses

591

590

Selling and marketing expenses

2,285

2,390

General and administrative expenses

9,203

8,710

Other expenses ( income), net

(35)

456


_______

_______

Operating income

11,700

9,261

Financing income, net

125

61


_______

_______

Income before income tax

11,825

9,322

Income tax

(3,920)

(3,084)


_______

_______

Net income for the period

7,905

6,238

Less: Net income attributable to non-controlling interest

(577)

(236)


_______

_______

Net income attributable to the Company

7,328

6,002


_______

_______


_______

_______




Basic and diluted earnings per share attributable to Company's stockholders

0.35

0.29


_______

_______


_______

_______




Basic and diluted weighted average number of shares outstanding (in thousands)

20,968

20,968


_______

_______


_______

_______


 

 

 

ITURAN LOCATION AND CONTROL LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS



US dollars


Three month period
ended March 31
,

(in thousands)

2014

2013



Cash flows from operating activities



Net income for the period

7,905

6,238

Adjustments to reconcile net income to net cash from operating activities:



Depreciation amortization and impairment of goodwill

2,693

3,163

Exchange differences on principal of deposit and loans, net

(23)

97

Losses in respect of trading marketable securities

105

-

Increase in liability for employee rights upon retirement

520

490

Deferred income taxes

(472)

(389)

Capital losses (gains) on sale of property and equipment, net

(46)

14

Increase in accounts receivable

(4,195)

(4,536)

Decrease (Increase) in other current assets

(2,007)

222

Decrease  in inventories

2,639

2,672

Decrease in accounts payable

(419)

(2,057)

Increase in deferred revenues

928

1,388

Increase  in other current liabilities

2,053

1,572


_______

_______

Net cash provided by operating activities

9,681

8,874


-----------

-----------

Cash flows from investment activities



Increase in funds in respect of employee rights upon retirement, net of withdrawals

(158)

(142)

Capital expenditures

(3,022)

(2,569)

Investments in marketable securities

(2,783)

-

Deposit

(156)

222

Proceeds from sale of property and equipment

230

144


_______

_______

Net cash used in investment activities

(5,889)

(2,345)


-----------

-----------

Cash flows from financing activities



Short term credit from banking institutions, net

1,201

268

Repayment of long term loans

-

(11)

Dividend paid

(3,616)

(2,570)

Dividend paid to non-controlling interest

(736)

-


_______

_______

Net cash provided by (used in) financing activities

(3,151)

(2,313)


-----------

-----------

Effect of exchange rate changes on cash and cash equivalents

(986)

173


-----------

-----------


_______

_______

Net increase (decrease)  in cash and cash equivalents

(345)

4,389

Balance of cash and cash equivalents at beginning of the period

41,697

29,453


_______

_______

Balance of cash and cash equivalents at end of the period

41,352

33,842


_______

_______


_______

_______

 

Supplementary information on investing activities not involving cash flows:

In February 2014, the Company declared a dividend in an amount of US$ 7.8 million. The dividend will be paid in April 2014.

During the three month period ended March 31, 2014, the Company purchased property and equipment in an amount of US$ 1,190 thousand using a directly related liability.

 

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and Midwest Television, Inc. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.