Ituran Location And Control Ltd Announces Distribution of a 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 June 29, 2021, will receive the dividend on July 14, 2021, net of a 25% tax. The Board of Directors confirmed that this distribution will not jeopardize the company's operational capabilities or future plans. Post-distribution, Ituran's retained earnings will be US$122.8 million, with a cash balance of US$64.1 million as of March 31, 2021.

Positive

• Cash dividend distribution of $0.14 per share demonstrates strong shareholder value.
• Retained earnings remain robust at $122.8 million after the dividend.
• Company has a healthy cash balance of $64.1 million as of March 31, 2021.

Negative

• None.

AZOUR, Israel, May 25, 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 June 29, 2021. The Company will pay the dividend out on July 14, 2021 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, 2021, prior to the distribution was US$125.8 million and retained earnings will reach US$122.8 million after the distribution. The Board of Directors emphasized that as of March 31, 2021, the Company had a cash balance in hand of US$64.1 million (this amount is prior to the payment of a dividend of US$10 million which was issued for the year 2020 and was paid out in April 2021). The Company also had long-term debt of US$24.6 million and credit from banking institutions of US$ 17.2 million. As of March 31, 2021, the Company's current assets (excluding cash and cash equivalents) were in the sum of US$106.1 million and current liabilities were in the sum of US$116.5 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 / Gavriel Frohwein ituran@gkir.com   GK  Investor & Public Relations (US) +1 646 688 3559

 

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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 for ITRN be paid?

The dividend will be paid on July 14, 2021.

What are the retained earnings of Ituran (ITRN) after the dividend distribution?

Retained earnings will be $122.8 million after the distribution.

What is the tax rate on the dividend announced by ITRN?

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

Who are the shareholders eligible for the dividend from Ituran (ITRN)?

Shareholders of record as of June 29, 2021, are eligible for the dividend.