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 $0.14 per share, totaling approximately US$3 million, to be paid on October 13, 2021. Shareholders of record as of September 30, 2021 will receive this dividend net of a 25% tax. As of June 30, 2021, Ituran reported retained earnings of US$132 million before the distribution, expected to decrease to US$129 million. The company maintains a cash balance of US$65.6 million and has long-term debt of US$20.9 million.

Positive

• Approval of a cash dividend of $0.14 per share, demonstrating company confidence.
• Strong cash position with $65.6 million on hand post-distribution.

Negative

• Retained earnings will decrease from $132 million to $129 million after the dividend payment.
• Current liabilities exceed current assets by $5.4 million, which may raise liquidity concerns.

AZOUR, Israel, Aug. 23, 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 September 30, 2021. The Company will pay the dividend out on October 13, 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 June 30, 2021, prior to the distribution was US$132.0 million and retained earnings will reach US$129.0 million after the distribution. The Board of Directors emphasized that as of June 30, 2021, the Company had a cash balance in hand of US$65.6 million (this amount is prior to the payment of a dividend of US$3 million which was issued for the first quarter 2021 and was paid out in July 2021). The Company also had long-term debt of US$20.9 million and credit from banking institutions of US$17.6 million. As of June 30, 2021, the Company's current assets (excluding cash and cash equivalents) were in the sum of US$111.8 million and current liabilities were in the sum of US$117.2 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

 

View original content:https://www.prnewswire.com/news-releases/ituran-location-and-control-ltd-announces-distribution-of-a-dividend-301360476.html

SOURCE Ituran Location and Control Ltd.

FAQ

What is the amount of Ituran's dividend for 2021?

Ituran announced a cash dividend of $0.14 per share.

What date will Ituran's dividend be paid?

The dividend will be paid on October 13, 2021.

Who qualifies for Ituran's dividend payment?

Shareholders of record as of September 30, 2021, qualify for the dividend.

What was Ituran's cash balance before the dividend payment?

As of June 30, 2021, Ituran had a cash balance of $65.6 million.

How will the dividend affect Ituran's retained earnings?

Ituran's retained earnings will decrease from $132 million to $129 million after the dividend.