Location and Control Ltd. (Ituran) is engaged in the provision of
location-based services and machine-to-machine wireless communications
products for use in stolen vehicle recovery, fleet management and other
applications. The Company operates in two segments: location-based
services and wireless communication products. Its location-based
services segment consists of its stolen vehicle recovery (SVR), fleet
management and value-added services. Its wireless communications
products segment consists of its short- and medium-range two-way
wireless communications. During the year ended December 31, 2011, 75.2%
of its revenues were attributable to its location-based services. As of
December 31, 2011, Ituran provided its services in Israel, Brazil,
Argentina and the United States to approximately 256,000, 219,000,
123,000 and 25,000 subscribers, respectively. In 2011, 24.8% of its
revenues were attributable to the sale of its wireless communications
https://www.ituran.com/ituranfront/Ituran Location and Control Ltd. Presents Record Results for the Third Quarter 2017
Added 25,000 subscribers in the quarter leading to record revenue of $61.6 million
AZOUR, Israel, Nov.
15, 2017 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ:
ITRN, TASE: ITRN), today announced its consolidated financial results
for the third quarter ended September 30, 2017.
Highlights of the third quarter of 2017
Net subscribers adds in the quarter amounted to 25 thousand;
Record revenue of $61.6 million, up 17% year-over-year;
Gross margins of 49.6% and operating margins at 22.6%;
Net profit of $10.5 million, up 29% year-over-year;
Generated $11.9 million in operating cash flow;
Dividend of $5 million declared for the quarter;
Third Quarter 2017 Results
Revenues for the
third quarter of 2017 were $61.6 million, representing an increase of
17% from revenues of $52.8 million in the third quarter of 2016. 71% of
revenues were from location based service subscription fees and 29%
were from product revenues.
subscription fees increased by 18% over the same period last year. The
growth was driven primarily due to the increase in the subscriber base,
which expanded from 1,035,000 as of September 30, 2016, to 1,137,000 as
of September 30, 2017.
Product revenues increased by 14% compared with the same period last year.
Gross profit for the
third quarter of 2017 was $30.5 million (49.6% of revenues), an
increase of 16% compared with $26.4 million (50.0% of revenues) in the
third quarter of 2016. The gross margin in the quarter on subscription
fees improved to 66.7% compared with 65.7% in the same period last
year. The gross margin in the quarter on products was 7.2% compared
with 12.7% in the same period last year. The lower margin on products
during the quarter was due to the mix of product sales in the quarter.
Operating profit for
the third quarter of 2017 was $13.9 million (22.6% of revenues), an
increase of 20% compared with an operating profit of $11.6 million
(21.9% of revenues) in the third quarter of 2016.
EBITDA for the
quarter was $17.4 million (28.3% of revenues), an increase of 19%
compared to an EBITDA of $14.6 million (27.7% of revenues) in the third
quarter of 2016.
Net profit was $10.5
million in the third quarter of 2017 (17.1% of revenues) or fully
diluted EPS of $0.50, an increase of 29% compared with a net profit of
$8.2 million (15.4% of revenues) or fully diluted EPS of $0.39 in the
third quarter of 2016.
Cash flow from operations for the quarter was $11.9 million.
As of September 30,
2017, the Company had net cash, including marketable securities, of
$35.2 million or $1.68 per share. This is compared with $31.5 million
or $1.50 per share as at December 31, 2016.
For the third
quarter of 2017, a dividend of $5 million was declared in line with the
Company's stated current policy of issuing at least $5 million as a
dividend on a quarterly basis.
Co-CEO of Ituran said, "We presented another solid quarter with record
revenue up 17% and net profit up 29% over last year. The ongoing
expansion in our subscriber base is the primary driver of our revenue
growth, and we see ongoing demand and interest in our services and
solutions. In Brazil in particular, IRT also continues to perform well
and is increasingly contributing to our profit. In India, we have
started working closely with Lumax Technologies. We see strong
potential in this untapped region for telematic services, which gives
Ituran access to a phenomenal market with over 200 million registered
cars. As we have shown in Brazil, we can successfully enter new
markets, leveraging our technology and building a long-term growth
engine, with the goal of ultimately establishing ourselves as market
Conference Call Information
The Company will
also be hosting a conference call later today, November 15, 2017 at 9am
Eastern Time. On the call, management will review and discuss the
results, and will be available to answer investor questions.
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
CANADA Dial-in Number: 1 888 604 5839
INTERNATIONAL Dial-in Number: +972 3 918 0664
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
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