Ituran Location and Control Ltd. Presents Results for the First Quarter 2011
Revenues of $40.4 million (+15% YoY) and Record EPS of $0.31 (+35% YoY)
AZOUR, Israel, May 17, 2011 /PRNewswire-FirstCall/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN, TASE: ITRN), today announced its consolidated financial results for the first quarter ended March 31, 2011.
Highlights of the First quarter
- A 40 thousand year-over-year increase in net subscribers to a record of 615 thousand as of March 31, 2011;
- Gross margin at 49.3% and operating margin at 21.8%;
- EBITDA of $13.4 million or 33.1% of revenues;
- Generated $10.1 million in operating cash flow; ended the quarter with $66.1 million in net cash (including marketable securities and deposits for short and long term);
First quarter 2011 Results
Revenues for the first quarter of 2011 reached $40.4 million, representing 15% growth over revenues of $35.0 million in the first quarter of 2010. 75% of revenues were from location based service subscription fees and 25% from product revenues.
Revenues from subscription fees grew by 16% over the same period last year. The increase in subscription fees was mainly due to the increase in the subscriber base, which grew to 615,000 as of March 31, 2011, as compared with 575,000 at the end of March 31, 2010. Product revenues grew 15% compared with the same period last year. This increase was driven primarily by the increased sales of products in Israel.
Gross profit for the first quarter of 2011 was $19.9 million (49.3% of revenues), an increase of 22% compared with $17.2 million (49.1% of revenues) in the first quarter of last year. The increase is mainly due to the relative higher proportion of subscription fees in the revenue mix in the quarter.
Operating profit for the first quarter of 2011 was $8.8 million (21.8% of revenues), an increase of 21% compared with an operating profit of $7.3 million (20.8% of revenues) in the first quarter of 2010.
EBITDA for the quarter was $13.4 million (33.1% of revenues), an increase of 22% compared to an EBITDA of $10.9 million (31.2% of revenues) in the first quarter of 2010.
Financial income in the first quarter of 2011 was $0.2 million compared with a financial expense of $0.1 million in the first quarter of 2010.
Net profit was US$6.5 million in the first quarter of 2011 (16.0% of revenues), compared with a net profit of US$4.8 million (13.7% of revenues), as reported in the first quarter of 2010. Fully diluted EPS in the first quarter of 2011 was US$0.31, compared with fully diluted EPS of US$0.23 in the first quarter of 2010.
Cash flow from operations during the quarter was $10.1 million.
As of March 31, 2011, the Company had net cash, including marketable securities and deposits for short and long term, of $66.1 million or $3.15 per share. This is compared with US$60.9 million or $2.90 per share as at December 31, 2010.
Eyal Sheratzky, Co-CEO of Ituran said, "The first quarter is a good start to 2011 and our results of the quarter are a strong demonstration of the operating leverage which is inherent to our business. We continued to grow our subscriber base in all our regions. We continue to expect to show double-digit revenue growth in 2011 over 2010."
Conference Call Information
The Company will also be hosting a conference call later today, May 17, 2011 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: 1 888 281 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 615,000 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.
* Financial Tables to Follow *
Ituran Location and Control Ltd. and its Subsidiaries
Consolidated Interim Financial Statements
As of March 31, 2011
Table of Contents
Consolidated Interim Financial Statements:
Balance Sheets
Statements of Income
Statements of Cash Flows
CONSOLIDATED INTERIM BALANCE SHEETS
US dollars
March 31, December 31,
(in thousands) 2011 2010
Current assets
Cash and cash equivalents 52,402 46,674
Deposit in escrow 4,641 5,238
Investments in trading marketable
securities 1,550 1,509
Accounts receivable (net of allowance
for doubtful
accounts) 33,424 31,161
Other current assets 13,821 10,848
Inventories 7,840 8,501
113,678 103,931
Long-term investments and other assets
Deposit in escrow 7,864 7,858
Investments in affiliated company 230 220
Investments in other companies 86 86
Other assets 2,692 3,256
Loan to former employee 558 558
Deferred income taxes 5,345 4,934
Funds in respect of employee rights
upon retirement 4,702 4,498
21,477 21,410
Property and equipment, net 49,217 47,049
Intangible assets, net 4,256 4,402
Goodwill 10,238 10,079
Total assets 198,866 186,871
CONSOLIDATED INTERIM BALANCE SHEETS
US dollars
March 31, December 31,
(in thousands) 2011 2010
Current liabilities
Credit from banking institutions 91 98
Accounts payable 13,177 13,087
Deferred revenues 7,515 6,714
Other current liabilities 19,676 18,229
40,459 38,128
Long-term liabilities
Long term loans 226 233
Liability for employee rights upon retirement 6,752 6,472
Provision for contingencies 5,176 5,324
Deferred revenues 1,357 873
Deferred income taxes 1,015 1,046
14,526 13,948
Capital Notes 5,894 5,894
Equity
Stockholders' equity 133,202 124,509
Non -controlling interest 4,785 4,392
Total equity 137,987 128,901
Total liabilities and equity 198,866 186,871
CONSOLIDATED INTERIM STATEMENTS OF INCOME
Three months period
ended March 31 ,
(in thousands except per share data) 2011 2010
Revenues:
Location-based services 30,338 26,247
Wireless communications products 10,051 8,746
40,389 34,993
Cost of revenues:
Location-based services 12,211 10,160
Wireless communications products 8,279 7,663
20,490 17,823
Gross profit 19,899 17,170
Research and development expenses 139 106
Selling and marketing expenses 1,878 2,217
General and administrative expenses 9,064 7,574
Other expenses, net - 3
Operating income 8,818 7,270
Other expenses - (64)
Financing income ( expenses ) , net 239 (127)
Income before taxes on income 9,057 7,079
Income tax (2,282) (1,929)
Share in gains of affiliated companies,
net - 12
Net income for the period 6,775 5,162
Less: net income attributable to
non-controlling interest (297) (362)
Net income attributable to
company stockholders 6,478 4,800
Earnings per share attributable to
company stockholders:
Basic 0.31 0.23
Diluted 0.31 0.23
Weighted average number of shares
outstanding (in thousands):
Basic 20,968 20,968
Diluted 20,977 20,977
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
US dollars
Three months period
ended March 31 ,
(in thousands) 2011 2010
Cash flows from operating activities
Net income for the period 6,775 5,162
Adjustments to reconcile net income to net cash
from operating activities:
Depreciation, amortization and impairment of
goodwill 4,554 3,723
Exchange differences on principal of deposit and
loans, net 255 225
Gains in respect of trading marketable securities (12) (14)
Increase in liability for employee rights upon
retirement 154 166
Share in gains of affiliated companies, net - (12)
Deferred income taxes (374) 174
Capital loses on sale of property and equipment,
net - 3
Increase in accounts receivable (1,654) (1,905)
Increase in other current assets (2,270) (710)
Decrease in inventories 816 658
Increase (decrease) in accounts payable (166) 247
Increase in deferred revenues 1,137 33
Increase (decrease) in other current liabilities
and provision for contingencies 837 (225)
Net cash provided by operating activities 10,052 7,525
Cash flows from investing activities
Increase in funds in respect of employee rights
upon retirement, net of withdrawals (116) (117)
Capital expenditures (5,615) (5,253)
Deposit in escrow 603 -
Deposit 144 (5)
Proceeds from sale of property and equipment 20 265
Investment in trading marketable securities - (1,326)
Sale of trading marketable securities - 4,214
Net cash provided by investment activities (4,964) (2,222)
Cash flows from financing activities
Short-term credit from banking institutions, net (10) 508
Repayment of long term loans (5) -
Net cash provided by (used in) financing
activities (15) 508
Effect of exchange rate changes on cash and cash
equivalents 655 895
Net increase in cash and cash equivalents 5,728 6,706
Balance of cash and cash equivalents at beginning
of period 46,674 60,813
Balance of cash and cash equivalents at end of
period 52,402 67,519
Company Contact
Udi Mizrahi
[email protected]
VP Finance, Ituran
(Israel) +972 3 557 1348
International Investor Relations
Ehud Helft & Kenny Green
[email protected]
CCG Investor Relations
(US) +1 646 201 9246
SOURCE Ituran Location and Control Ltd
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