Ituran Location And Control Ltd. Presents Results For The First Quarter 2013

Ituran Location And Control Ltd. Presents Results For The First Quarter 2013

Revenues of $41 million and EPS of $0.29

By Ituran Location and Control Ltd.
Published: Monday, May. 13, 2013 – 3:36 am

AZOUR, Israel, May 13, 2013 — /PRNewswire/ — Ituran Location and Control Ltd. (NASDAQ: ITRN, TASE: ITRN), today announced its consolidated financial results for the first quarter ended March 31, 2013.

Highlights of the First quarter

 

  • A 17 thousand increase in net subscribers in the quarter, to a record of 684 thousand as of March 31, 2013;
  • Record gross margin at 51.2% and record operating margin at 22.6%;
  • EBITDA of $12.4 million or 30.3% of revenues;
  • Generated $8.9 million in operating cash flow; ended the quarter with $38.3 million in net cash (including long-term deposits);
  • Dividend of $3.0 million declared for the quarter;

 

First quarter 2013 Results Revenues for the first quarter of 2013 were $41.0 million, representing a 9% growth from revenues of $37.7 million in the first quarter of 2012. 76% of revenues were from location based service subscription fees and 24% from product revenues.

Revenues from subscription fees increased 7.5% over the same period last year. The increase in subscription fees was primarily due to the growth in the subscriber base, which expanded from 628,000 as of March 31, 2012, to 684,000 as of March 31, 2013.

Product revenues increased by 12% compared with the same period last year. This increase was driven primarily by sales in Israel and sales of ERM.

Gross profit for the first quarter of 2013 was $21.0 million (51.2% of revenues), an increase of 14% compared with $18.4 million (48.7% of revenues) in the first quarter of 2012.

Operating profit for the first quarter of 2013 was $9.3 million (22.6% of revenues), an increase of 24% compared with an operating profit of $7.5 million (19.7% of revenues) in the first quarter of 2012.

EBITDA for the quarter was $12.4 million (30.3% of revenues), an increase of 10% compared to an EBITDA of $11.3 million (29.8% of revenues) in the first quarter of 2012.

Net profit was US$6.0 million in the first quarter of 2013 (14.7% of revenues), compared with a net profit of US$5.1 million (13.5% of revenues) in the first quarter of 2012. Fully diluted EPS in the first quarter of 2013 was US$0.29, compared with fully diluted EPS of US$0.24 in the first quarter of 2012.

Cash flow from operations during the quarter was $8.9 million.

As of March 31, 2013, the Company had net cash, including long-term deposits, of $38.3 million or $1.83 per share. This is compared with $34.2 million or $1.63 per share as at December 31, 2012.

For the first quarter, a dividend of $3.0 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 2013. Oursubscriber base continues to show solid growth especially in Brazil and Israel, which has led to our revenue growth in the quarter. In fact, excluding currency effects, our revenue would have shown double digit growth over the first quarter of last year. The operating leverage inherent in our business model, whereby a large portion of the increase in revenue fall straights to the operating profit is very evident, and we demonstrated record gross and operating margins this quarter. We look forward to continuing our performance throughout the year. »

Conference Call Information

The Company will also be hosting a conference call later today, May 13, 2013 at 9am ET. 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: 1 888 407 2553 ISRAEL Dial-in Number: 03 918 0664 CANADADial-in Number: 1 866 485 2399 INTERNATIONAL Dial-in Number:  +972 3 918 0664

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 684,000 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@ccgisrael.com 

CCG Investor Relations

(US) +1 646 201 9246 

 

 

ITURAN LOCATION AND CONTROL LTD. CONSOLIDATED BALANCE SHEETS

 

  US dollars
  March 31, December 31,
(in thousands) 2013 2012
     
Current assets    
Cash and cash equivalents 33,842 29,453
Accounts receivable (net of allowance for doubtful accounts) 31,336 26,190
Other current assets 16,829 15,399
Inventories 12,419 14,747
      _______           _______
  94,426 85,789
  ———- ———-
     
Long-term investments and other assets    
Deposit in escrow 4,951 4,939
Investments in affiliated company 164 160
Investments in other company 84 82
Other non-current assets 1,605 1,890
Deferred income taxes 3,814 4,174
Funds in respect of employee rights upon retirement 5,786 5,515
       _______           _______
  16,404 16,760
  ———- ———-
     
Property and equipment, net 33,949 34,156
  ———- ———-
     
Intangible assets, net 2,526 2,591
  ———- ———-
     
Goodwill 8,230 8,043
  ———- ———-
     
     
     
     
     
     
        ______             ______
Total assets 155,535 147,339
     
     

 

 

ITURAN LOCATION AND CONTROL LTD. CONSOLIDATED BALANCE SHEETS 

 

  US dollars
  March 31, December 31,
(in thousands) 2013 2012
     
Current liabilities    
Credit from banking institutions 481 221
Accounts payable 7,780 9,524
Deferred revenues 11,078 9,526
Other current liabilities 29,538 22,373
     _______           _______
  48,877 41,644
  ———- ———-
     
Long-term liabilities    
Liability for employee rights upon retirement 8,589 7,915
Provision for contingencies 3,528 3,864
Other non-current liabilities 270 460
Deferred revenues 883 806
Deferred income taxes 627 643
     _______           _______
  13,897 13,688
  ———– ———–
     
     
     
     
Stockholders’ equity 88,373 88,027
     
Non-controlling interests 4,388 3,980
     
     _______           _______
Total equity 92,761 92,007
  ———– ———–
     
       ______             ______
Total liabilities and equity 155,535 147,339
     
     

 

 

ITURAN LOCATION AND CONTROL LTD. CONSOLIDATED STATEMENTS OF INCOME

 

  US dollars
  Three month period ended March 31,
(in thousands except per share data) 2013 2012
   
Revenues:    
Location-based services 31,393 29,215
Wireless communications products 9,582 8,520
   _______  _______
  40,975 37,735
  ———- ———-
     
Cost of revenues:    
Location-based services 11,533 11,946
Wireless communications products 8,460 7,410
   _______  _______
  19,993 19,356
  ———- ———-
   _______  _______
     
Gross profit 20,982 18,379
Research and development expenses 165 183
Selling and marketing expenses 2,390 2,141
General and administrative expenses 8,710 8,615
Other expenses (income), net 456 (17)
   _______  _______
Operating income 9,261 7,457
Financing income, net 61 10
   _______  _______
Income before income tax 9,322 7,467
Income tax (3,084) (2,192)
Share in losses of affiliated companies, net (14)
   _______  _______
Net income for the period 6,238 5,261
Less: Net income attributable to non-controlling interest (236) (161)
   _______  _______
Net income attributable to the Company 6,002 5,100
     
     
     
Basic and diluted earnings per share attributable to Company’s stockholders 0.29 0.24
     
     
     
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) 2013 2012
   
Cash flows from operating activities    
Net income for the period 6,238 5,261
Adjustments to reconcile net income to net cash from operating activities:    
Depreciation amortization and impairment of goodwill 3,163 3,810
Exchange differences on principal of deposit and loans, net 97 126
Gains in respect of trading marketable securities (4)
Increase in liability for employee rights upon retirement 490 252
Share in losses of affiliated companies, net 14
Deferred income taxes (389) 618
Capital losses (gains) on sale of property and equipment, net 14 (7)
Increase in accounts receivable (4,536) (2,225)
Decrease (Increase) in other current assets 222 (2,054)
Decrease (increase) in inventories 2,672 (1,243)
Increase (decrease) in accounts payable (2,057) 1,096
Increase in deferred revenues 1,388 966
Increase (decrease) in other current liabilities 1,572 (2,690)
  _______ _______
Net cash provided by operating activities 8,874 3,920
  ———– ———–
Cash flows from investment activities    
Increase in funds in respect of employee rights upon retirement, net of withdrawals (142) (191)
Capital expenditures (2,569) (998)
Deposit 222 25
Proceeds from sale of property and equipment 144 109
Repayment of loan to a former employee 355
  _______ _______
Net cash used in investment activities (2,345) (700)
  ———– ———–
Cash flows from financing activities    
Short term credit from banking institutions, net 268 398
Repayment of long term loans (11) (11)
Dividend paid (2,570)
Dividend paid to non-controlling interest (268)
  _______ _______
Net cash provided by (used in) financing activities (2,313) 119
  ———– ———–
Effect of exchange rate changes on cash and cash equivalents 173 337
  ———– ———–
  _______ _______
Net increase in cash and cash equivalents 4,389 3,676
Balance of cash and cash equivalents at beginning of the period 29,453 35,270
  _______ _______
Balance of cash and cash equivalents at end of the period 33,842 38,946
     
     

 

Supplementary information on investing activities not involving cash flows:

In February 2013, the Company declared a dividend in an amount of US$ 7,015 thousand.  The dividend will be paid in April 2013.

During the three month period ended March 31, 2013, the Company purchased property and equipment in an amount of US$ 91 thousand using a directly related liability.

 

SOURCE Ituran Location and Control Ltd.

Read more here: http://www.sacbee.com/2013/05/13/5415518/ituran-location-and-control-ltd.html#storylink=cpy

 

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