Ituran Location and Control Ltd Announces Distribution Of A $3 Million Dividend

Rhea-AI Summary

Ituran Location and Control Ltd. (NASDAQ: ITRN) announced a cash dividend of $0.14 per share, totaling approximately $3 million. Shareholders on record as of December 22, 2021 will receive the dividend on January 5, 2022, net of 25% tax. The Board confirmed that the distribution won't hinder the company's operational performance or future plans. As of September 30, 2021, retained earnings were $136.6 million, expected to drop to $133.6 million post-distribution, while cash balance was $62.9 million.

Positive

• Approval of a $0.14 dividend per share, appealing to investors.
• Retained earnings post-dividend remains strong at $133.6 million.
• Company's cash balance of $62.9 million supports operational stability.

Negative

• None.

AZOUR, Israel, Nov. 16, 2021 /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 December 22, 2021. The Company will pay the dividend out on January 5, 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 September 30, 2021, prior to the distribution was US$136.6 million and retained earnings will reach US$133.6 million after the distribution. The Board of Directors emphasized that as of September 30, 2021, the Company had a cash balance in hand of US$62.9 million (this amount is prior to the payment of a dividend of US$3 million which was issued for the second quarter 2021 and was paid out in October 2021). The Company also had long-term debt of US$16.9 million and credit from banking institutions of US$17.7 million. As of September 30, 2021, the Company's current assets (excluding cash and cash equivalents) were in the sum of US$112.0 million and current liabilities were in the sum of US$115.5 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?

Ituran announced a cash dividend of $0.14 per share.

When will Ituran's dividend be paid?

The dividend will be paid on January 5, 2022.

What is the record date for Ituran's dividend?

The record date for the dividend is December 22, 2021.

How much will Ituran's total dividend payout be?

The total dividend payout will be approximately $3 million.

What percentage tax will be deducted from Ituran's dividend?

A 25% tax will be deducted from the dividend payout.