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

Rhea-AI Summary

Ituran Location and Control Ltd. (NASDAQ: ITRN) has announced a cash dividend of $0.14 per share, amounting to approximately US$3 million. Shareholders of record as of March 21, 2023 will receive the dividend on April 4, 2023, with a tax deduction of 25%. The Board of Directors confirmed this decision after ensuring that the distribution would not compromise the company's operations. Following the payment, retained earnings will be US$166 million, down from US$169 million. The company holds a cash balance of US$27.9 million, alongside US$12.2 million in credit facilities, maintaining a solid financial position.

Positive

• Dividend distribution of $3 million reflects financial stability.
• Cash balance of $27.9 million post-dividend payment supports operations.

Negative

• Retained earnings will decrease from $169 million to $166 million after the dividend payout.

AZOUR, Israel, Feb. 28, 2023 /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 March 21, 2023. The Company will pay the dividend out on April 4, 2023 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 December 31, 2022, prior to the distribution was US$169.0 million and retained earnings will reach US$166.0 million after the distribution. The Board of Directors emphasized that as of December 31, 2022, the Company had a cash balance in hand of US$27.9 million (this amount is prior to the payment of a dividend of US$3 million which was issued for the third quarter 2022 and was paid out in January 2023). The Company also had credit from banking institutions of US$12.2 million. As of December 31, 2022, the Company's current assets (excluding cash and cash equivalents) were in the sum of US$122.8 million and current liabilities were in the sum of US$93.3 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 over 2 million subscribers using its location-based services with a market leading position in Israel and Latin America. Established in 1995, Ituran has 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
Udi Mizrahi
udi_m@ituran.com
Deputy CEO & VP Finance, Ituran
(Israel) +972 3 557 1348

International Investor Relations
Ehud Helft
ituran@ekgir.com
EK Global Investor 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 Ituran's dividend be paid?

The dividend will be paid on April 4, 2023.

What is the record date for Ituran's dividend payout?

The record date for the dividend is March 21, 2023.

What is the total amount of the dividend Ituran is distributing?

The total dividend amount is approximately $3 million.

What will be Ituran's retained earnings after the dividend?

After the dividend, Ituran's retained earnings will be $166 million.