6-K
Ituran Location & Control Ltd. (ITRN)
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)
________________________
| Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. |
|---|
| Form 20-F ☒ Form 40-F ☐ |
| Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (1): |
| Yes ☐ No ☒ |
| Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (7): |
| Yes ☐ No ☒ |
| Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b)<br> under the Securities Exchange Act of 1934. |
| Yes ☐ No ☒ |
| If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): ______ |
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:
SIGNATURE
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
Exhibit 99.1
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
| • | 2,409,000 subscribers at year-end, adding 157,000, net, during the year at the high end of the guidance range. |
|---|---|
| • | Record financial metrics across the board with revenue at $336.3 million, an increase of 5% year-over-year. |
| --- | --- |
| • | Net income of $53.7 million, an increase of 11% year-over-year. |
| --- | --- |
| • | EBITDA of $91.3 million, an increase of 5% year-over-year. |
| --- | --- |
| • | Generated $74.3 million in operating cash flow. |
| --- | --- |
| • | Year-end net cash position and marketable securities of $77.4 million. |
| --- | --- |
| • | Returns to shareholders: declared a total of $34.0 million in dividends for the year 2024. |
| --- | --- |
Highlights of the Fourth Quarter of 2024
| • | Added a net 40,000 subscribers in the quarter. |
|---|---|
| • | Revenue of $82.9 million, an increase of 7% year-over-year. |
| --- | --- |
| • | Strong gross margins: overall gross margin of 49.6%, with subscription gross margin at 59.6%. |
| --- | --- |
| • | Net income increased to $13.8 million, up by 15% year-over-year. |
| --- | --- |
| • | EBITDA grew to $22.5 million, a 3% increase year-over-year. |
| --- | --- |
| • | Strong operating cash flow of $22.7 million. |
| --- | --- |
| • | The Board declared a 25% increase to the dividend policy to $10 million, or $0.50 per share per quarter, from $8 million in the recent prior quarters. |
| --- | --- |
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.
Conference Call Information
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:
https://us06web.zoom.us/webinar/register/WN_1tfL4B6_QHa5_xl7EKVDCA
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, 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
| Company Contact | International Investor Relations |
|---|---|
| Udi Mizrahi<br><br> <br>[email protected]<br><br> <br>Deputy CEO & VP Finance, Ituran<br><br> <br>(Israel) +972 3 557 1348 | Ehud Helft<br><br> <br>[email protected]<br><br> <br>EK Global Investor Relations<br><br> <br>(US) +1 212 378 8040 |
ITURAN LOCATION AND CONTROL LTD.
Condensed Consolidated Financial Statements
as of December 31, 2024
ITURAN LOCATION AND CONTROL LTD.
Condensed Consolidated Financial Statements
as of December 31, 2024
Table of Contents
| 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 |
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| 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 |
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| ITURAN LOCATION AND CONTROL LTD. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| US dollars | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Year ended<br><br> <br>December 31, | Three months period<br><br> 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 |
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| ITURAN LOCATION AND CONTROL LTD. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| US dollars | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Year ended<br><br> December 31, | Three months period<br><br> 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 |
Supplementary information on financing activities not involving cash flows:
In November 2024, the Company declared a dividend in an amount of US$ 8 million. The dividend was paid in January 2025.
5