ITURAN LOCATION AND CONTROL LTD ANNOUNCES DISTRIBUTION OF A $8 MILLION DIVIDEND

Rhea-AI Summary

Ituran Location and Control announced an $8 million dividend distribution. Shareholders of record as of June 18, 2024, will receive $0.39 per share. The payment will be made on July 2, 2024, after a 25% tax deduction. The Board confirmed that this distribution will not affect the company's ongoing or future operations. As of March 31, 2024, before the dividend, retained earnings were $208.8 million, reducing to $200.8 million post-distribution. The company had a cash balance of $54 million and banking credit of $0.3 million. Current assets were $130.1 million, and current liabilities were $92.9 million.

Positive

• Announced an $8 million dividend distribution.
• Dividend amounts to $0.39 per share.
• Distribution will not undermine the company's operations or future plans.
• Retained earnings remain at $200.8 million post-distribution.
• Cash balance of $54 million before distribution.
• Current assets of $130.1 million outweigh current liabilities of $92.9 million.

Negative

• Dividend payment subject to a 25% tax deduction.
• Reduction of retained earnings from $208.8 million to $200.8 million.
• Previous dividend of $8 million issued for Q4 2023 impacts cash balance.

AZOUR, Israel, May 28, 2024 /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 $0.39 per share, totaling approximately US$ 8 million. The dividend will be paid to shareholders of record as of June 18, 2024. The Company will pay the dividend out on July 2, 2024 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 March 31, 2024, prior to the distribution was US$ 208.8 million and retained earnings will reach US$ 200.8 million after the distribution. The Board of Directors emphasized that as of March 31, 2024, the Company had a cash balance in hand of US$ 54.0 million (this amount is prior to the payment of a dividend of approximately US$ 8 million which was issued for the fourth quarter 2023 and was paid out in April 2024). The Company had credit from banking institutions of US$ 0.3 million. As of March 31, 2024, the Company's current assets (excluding cash and cash equivalents) were in the sum of US$ 130.1 million and current liabilities were in the sum of US$ 92.9 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 2.2 million subscribers using its location-based services with a market leading position in Israel and Latin America. Established in 1995, Ituran has approximately 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

 

Logo: https://mma.prnewswire.com/media/1972820/Ituran_logo.jpg

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SOURCE Ituran Location and Control Ltd.

FAQ

What dividend did Ituran announce in May 2024?

Ituran announced an $8 million dividend distribution, equating to $0.39 per share.

When will the Ituran dividend be paid out?

The Ituran dividend will be paid on July 2, 2024.

What is the record date for the Ituran dividend?

The record date for the Ituran dividend is June 18, 2024.

How will the Ituran dividend be taxed?

The Ituran dividend will be taxed at a rate of 25%.

What were Ituran's retained earnings as of March 31, 2024?

As of March 31, 2024, Ituran's retained earnings were $208.8 million before the dividend distribution.

What is Ituran's cash balance before the dividend?

Ituran's cash balance was $54 million before the dividend distribution.

What are Ituran's current assets and liabilities?

As of March 31, 2024, Ituran's current assets were $130.1 million and current liabilities were $92.9 million.