Ituran Location and Control (ITRN) 27 Nov 232023 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Ituran Third Quarter 2023 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

You should have all received by now the company's press release.

If you have not received it, please contact Ituran's Investor Relations team at EK Global Investor Relations at 1-212-378-8040 or view it in the news section of the company's website, www.ituran.co.il.I will now hand over the call to Mr. Global EK of Green Investor Relations. Kenny Mr. you would like to begin? Green,

the results. day Thank discuss you, XXXX call. to With to line this and on for Good Ituran's the by would are Mr. and Udi management begin thank welcome Eli quarter me with CFO Kamer, to Mr. a of Mr. of Eyal conference call with CEO the will followed all you. Deputy Eyal Mizrahi, hosting like conference to Sheratzky, quarter's summary summary a of of Eli CEO; third Finance; and the today I results Ituran. financials. Ituran's VP

release We you contents like the call.And remind we question today would will also like of for now, harbor to Eyal, the everyone I'd then call and the this answer press statement conference issued to covers open earlier the please? session. safe begin, the in

all XXXX business to phase. to for our you, and to you are pleased Ituran the our Kenny. results like solid a in would strong of I with of quarter welcome third third thank us and today.We quarter. like I'd remained joining Thank growth you call,

continues quarter. subscribers base XX% ongoing ahead had well growth, subscription subscribers revenues strong Our as benefit and The our at to earlier financial is to XXXX base of grew in our to year-over-year. which adding aftermarket per X,XXX growth XX,XXX XX,XXX continued subscriber our XX,XXX show long-term we results, OEM net, and well as rate between subscriber QX of in

at highs. in EBITDA levels subscription near either in measured fees profits past have multi-year our been been record For or the net have income at few our quarters, constantly

discuss progress made recent imagine, war results Israel. to and can XXXX.As discuss results, in like I we with our we you we pleased quarterly our As the have would in are the

those and these are our thoughts events. by First foremost, affected with

for all. had employees that war Ituran has only the mitigating to expect remains in our period business some somewhat primarily business. the of for related we sales working and that a to said negative the the many season, a ago, such performance Overall, will globally a been limited our a Israel of other Israel currently.In and their have weeks in stress our the knows a that as is the world. any significant slow war, Any but of unfortunately the much of small longer affected. through we kidnap everyone well parent loved extended additional also that be which to year from by in holiday and with in on This a seasonally QX, in us the and be and between and Israel will effect murdered expenses will elsewhere victims would on war the priority. XX,XXX. the to or friends resilient subscriber I as people impact and car supporting our are not will impact growth every region experience family grandparent, son, the some operations XX,XXX communities We there following safety times. be well-being an that breakout to impact that, at expect as Naturally, highest also one for either overall due year. in initially And or lower of Brazil, October, we country the rate well localized to recurs pray due As diverse have I in challenging overcoming countries families, ones. Ituran's Israel Latin daughter, therefore, America few is And obviously overall in specific as in effect is have Hamas.

safety the cash the we team, both and and the net revert starting situation to Ituran globally, and continuity. ensure decided quarter. increasing current strongly and our the while policy, ongoing to the time.Given we increase global personally I'm per of monitor from very to wish quarter, thank in $X maintaining generation for closely million during to dividend and former courage level, cash our this of our employees, resilience them continue have commitment proud in measures quarter the from dedication of Israel We dividend our million have per business our and place $X to

ongoing be share respects. for of to growth loyal for to our is our summary, shareholders year and XXXX performance company. We reward fruits Ituran In the are to long-term of a a our profitable solid very all pleased continues their of support in

performance our engines growth war OEM us ongoing provided our subscriber well are business Ituran, the in monthly the business. ongoing And Israel and aftermarket in million all our continuously stability traditional as basis resilience growing for we globally record especially, on ] significant will have driving services, the strong as base environment. the our years X.X impact some Solid us in paying marginal in seeded with growth even past revenue.While more [ have challenging subscriber an on in closed

As business. will to ahead, faster inherent has continue profitability long-term the revenues subscriber been to will operating increased continue to over our translate true constantly throughout the growing growing growth due with our long our into history and leverage

hand go overall years growth that, continue.And For characterized over Ituran trend Eli. will to that ahead. many future, we the foreseeable Eli, the over I with anticipate have please

financial Eyal. Thanks, of the will summary provide I results. short a

revenue million today.Revenue the was year-over-year we in quarter XX%. earlier XXXX of XX% third growth can results a more detailed release the year. You issued press were $XX.X currency, compared $XX.X last local million, that the of for In the find increase with

increase over amounted were the subscription year-over-year. September net an and quarter currency, an previous The represents the third end In increase $XX.X XXX,XXX revenues. of XXXX. fees subscriber XX,XXX of local quarter from the of over XXXX increase growth XX, revenue the XX%. to of million, of was as Third year-over-year X,XXX,XXX XX% quarter an that This of base

Share the of that million subscriber a of X,XXX $X an including had amounting growth as of and income of of amounting increase compared was to of increase with for as XX, in net of from $XX.X earnings base same of quarter. forward of breakdown million issuance World third of under the revenues, revenues dividend OEM million the on and of Brazil dividend third like marketable diluted $X an call of and compared shares represents million shares cash, of increase of in last XX%. $X.XX, XX%.Net quarter local follows; as the cash In per Ituran third $XX.X During will the September former quarter more of with fourth from a $XX.X the quarter XX.X% of the $XX revenue buyback The million, the XXXX. in Operator? million, or there share diluted third of XX% $X.XX place former XX.X% of that, the from XX, of $XX share debt increase increase subscriber an to the cash XX% compared at for Board to the XX,XXX from securities or by of Ituran balance XX,XXX quarter for XX% was were quarter of the cash the of $XX.X or had dividend the recent revenues the current revenues repurchases an available going currency, RuleXXb-XX.And an revenues million declared were a per quarter made with was million.On product securities I'd to a of third quarter, funded compared or with its million or EBITDA for repurchases XXXX a $XX.X policy of or XXXX, dividend program, growth geographic Directors quarter per of a of $XX.X quarter, year. marketable XX.X% answer and The $X.X million. been operation purchased December year-over-year for Israel currency, base.This XX%, and of million in increase local $XX.X the of $X EBITDA cash Cash the was to In in third flow quarter in aftermarket $XX.X In quarter XX% XXXX. starting quarter. X% which quarter of the This session. policy, was company sheet, $XX the earnings the and XXXX.The year. XX%, net total for the the company the SEC return This open third including the million continued be of of that million policy the based debt and of Rest dividend a until was policy last an XX%. of were XXXX million, year-over-year third question is per would million. ordinary were quarter of

Barclays. first [Operator Instructions] question of The Chris is from Reimer

I strong about results. terms ask on Congratulations in wanted exposure, your and base. of employee the revenues both Israel, to given

in You et how noted margins, wondering the are discuss might cetera? quarter, I things but it you little further next and the the impact for playing a if subscribers was could impact weakness if out? Just

weeks the But we it October, this say, this, expecting that's sales which for car the Israeli now, back. but in work the quarter to maybe will again One coming expecting, holiday X which first Israeli, started start the I I which are is which everything as in October. is quarter, showrooms start to has is let's to are in influence work.Today, As about market. it's or month, every not a we business see look that the a ramping the significant, in said, of -- we when it's car I X of said. be up this, holidays, would to say, the something And see And normal it -- graph the or again. that month October, will it showrooms on and that to year it's XXX%. on had because was say, the see influences Israeli have in conservative, consider that say, now most absolutely to October said, was QX. slowdown Israeli But I X, September happened this more economy that not be what X daily economic X, between we we that, the would And something which lead expecting we almost as the normal, of be I we're are we people as order we come let's situation we're still to why days, closed. Things shutdown situation in is the of and was all

expenses, reserve. people to significant. that in Israel, to not went So as have I said, some it will be this Add we

it. the support et mention to not material, cetera, I is it's which have Again, duty we felt expenses. So families, one-time but to

some you about And just then deal of the And Santander? kind things looking can are it. color how in market any with Brazil the you're what of Got traction on dynamics, give there? with seeing especially,

situation Brazil trends strong years, the say, I and which we would faced demand. X is same, last the almost on during same a very the is that

say, all, our from stolen our, vehicle I the which is needs, recovery First butter business. and of of would bread

businesses, based on on a with This as as the started reported. Second, of a which Santander business contract -- based course, we BXB BXB is numbers. we we typical

after We in Santander seeing understand then of things we working we months, the we which to contract, that this churn. with as almost signed, phases start and different have in a we contracts a XX consider also few to were a it few started since have but pilot months

new for a from turn allow rental we we And say, cash a I in But material our of solutions, or I a from segments.And a us for other -- to maybe we not new with the course with will this, will this new it or a today to grow have say, this will of companies, other will contract. to to which deal our expand other the solutions. to -- the commitment our discussions best go deal to would would contract OEM with cow years. maybe to have any of attraction players which banks, cetera, market for now will very, And I only next So hope in makes a for et banks, contract, again, not a that be Brazilian we a that do also lot for during position series XXXX, banks market.

our future a So very to have take trend. well. in good And Brazil very is this short, to good for as make story we situation, care long growth

at time. are Instructions] [Operator There no further this questions

Mr. available Sheratzky, would this tomorrow concluding I go Ituran's www.ituran.co.il. remind on that statement, make his be Mr. your Before Sheratzky ask website, would ahead to with closing a like I will to to call replay you participants of like statement?

would you for if over our call. or the for support reach thank a to Thank continued Relations I you, behalf speaking business. feel to And speaking end our and with our shareholders, management hope good On the long-term And quarter. team. meeting be out your are to to free We our us, some interest coming you of you, Ituran, like of day. we interested with have and with Investor in that, of

quarter This conference Thank Ituran you. third XXXX for your concludes the results Thank you participation. call.

You may go ahead disconnect. and