Ituran Location and Control Ltd Announces Distribution of a Dividend

Rhea-AI Summary

Ituran Location and Control Ltd. (NASDAQ: ITRN) announced a cash dividend of $0.48 per share, amounting to approximately US$10 million. The dividend will benefit shareholders of record as of March 23, 2021, with a payment date set for April 6, 2021. As of December 31, 2020, Ituran had retained earnings of US$127.7 million and a cash balance of US$72.2 million. The Board confirmed that this dividend distribution will not hinder the company’s operational capabilities or future plans.

Positive

• Approval of a cash dividend of $0.48 per share, totaling approximately $10 million.
• Retained earnings post-distribution will be $117.7 million, maintaining financial stability.
• Company holds a cash balance of $72.2 million, ensuring liquidity.

Negative

• Current liabilities exceed current assets by $5.4 million, posing liquidity concerns.

AZOUR, Israel, March 3, 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 $0.48 per share, totaling approximately US$10 million. The dividend will be paid to shareholders of record as of March 23, 2021. The Company will pay the dividend out on April 6, 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 December 31, 2020, prior to the distribution was US$ 127.7 million and retained earnings will reach US$ 117.7 million after the distribution. The Board of Directors emphasized that as of December 31, 2020, the Company had a cash balance in hand of US$72.2 million. The Company also had long-term debt of US$ 34.1 million and credit from banking institutions of US$ 20.4 million. As of December 31, 2020, the Company's current assets (excluding cash and cash equivalents) were in the sum of US$ 107.3 million and current liabilities were in the sum of US$ 112.7 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.