ITURAN LOCATION AND CONTROL LTD ANNOUNCES DISTRIBUTION OF A $3 MILLION DIVIDEND

Rhea-AI Summary

Ituran Location and Control Ltd. (NASDAQ: ITRN) has declared a cash dividend of $0.14 per share, amounting to about US$3 million. Shareholders of record by September 29, 2022 will receive the dividend on October 13, 2022, after a tax deduction of 25%. Following the distribution, retained earnings will decrease from US$155 million to US$152 million. The company currently holds a cash balance of US$32.7 million and maintains adequate financial health to support ongoing operations.

Positive

• Cash dividend of $0.14 per share, reflecting income for shareholders.
• The company maintains a robust cash balance of $32.7 million.

Negative

• Retained earnings will reduce from $155 million to $152 million post-dividend.

AZOUR, Israel, Aug. 29, 2022 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN) announced that the Board of Directors approved the distribution of a cash dividend in the amount of $0.14 per share, totaling approximately US$3 million. The dividend will be paid to shareholders of record as of September 29, 2022. The Company will pay the dividend out on October 13, 2022 net of taxes at the rate of 25%.

In its decision to approve the distribution of the cash dividend, the Board of Directors examined whether the Company meets the distribution criteria according to Israeli law. The Board of Directors concluded that the abovementioned distribution will not undermine the Company's ability to keep performing in its current course of business or future plans, and is able to meet its undertakings when due.

Retained earnings as of June 30, 2022, prior to the distribution was US$155.0 million and retained earnings will reach US$152.0 million after the distribution. The Board of Directors emphasized that as of June 30, 2022, the Company had a cash balance in hand of US$32.7 million (this amount is prior to the payment of a dividend of US$3 million which was issued for the first quarter 2022 and was paid out in July 2022). The Company also had long-term loan of US$3.9 million and credit from banking institutions of US$16.2 million. As of June 30, 2022, the Company's current assets (excluding cash and cash equivalents) were in the sum of US$118.1 million and current liabilities were in the sum of US$95.8 million.

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 industry 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 approaching 2 million subscribers using its location based services with a market leading position in Israel and Latin America. Established in 1995, Ituran has approximately 3,000 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 Udi Mizrahi udi_m@ituran.com Deputy CEO &VP Finance, Ituran  (Israel) +972 3 557 1348

International Investor Relations Ehud Helft ituran@gkir.com GK  Investor & Public Relations (US) +1 212 378 8040

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SOURCE Ituran Location and Control Ltd.

FAQ

What is the dividend amount announced by Ituran (ITRN)?

Ituran has announced a cash dividend of $0.14 per share.

When will the dividend be paid to Ituran (ITRN) shareholders?

The dividend will be paid on October 13, 2022, to shareholders of record as of September 29, 2022.

What are Ituran's retained earnings before and after the dividend?

Prior to the dividend, retained earnings are $155 million and will drop to $152 million after distribution.

What is the tax rate on the dividend paid by Ituran (ITRN)?

The dividend will be paid net of taxes at a rate of 25%.