CORRECTION - Ituran Location and Control Ltd: Ituran Location and Control Ltd. Presents Results for the Fourth Quarter and Full Year 2012
Full Year Revenues of $150 million and EPS of $1.19
Ituran Location and Control Ltd. (NASDAQ: ITRN, TASE: ITRN), today announced its consolidated financial results for the quarter and year ended December 31, 2012.
Highlights of the Fourth Quarter of 2012
- Revenues of $38.2 million growing 3.4% year-over-year; in local currency term revenues grew 8.5% year-over-year;
- A 14 thousand quarterly increase in net subscribers to a record of 667 thousand subscribers as of December 31, 2012;
- Gross margin at 49.3% and operating margin at 21.0%;
- EBITDA of $12.2 million at 31.8% of revenues;
- Operating profit of $8.0 million growing 15% compared with $7.0 million in the fourth quarter of 2011 (excluding the legal expenses related to ICMS in Brazil);
- Generated $9 million in operating cash flow; ended the quarter with $34.2 million in net cash and equivalents;
- Dividend of $7.0 million declared for the quarter;
Fourth Quarter 2012 Results
Revenues for the fourth quarter of 2012 were $38.2 million, representing a 3.4% growth from revenues of $37.0 million in the fourth quarter of 2011. 76.2% of revenues were from location based service subscription fees and 23.8% from product revenues.
Revenues from subscription fees were $29.1 million, an increase of 2.4% over the same period last year. In local currency terms, subscription revenues grew by 8.5% compared with the fourth quarter of last year due to the increase in the subscriber base, which expanded from 623,000 as of December 31, 2011, to 667,000 as of December 31, 2012.
Product revenues were $9.1 million, an increase of 6.6% compared with the same period last year.
Gross profit for the fourth quarter of 2012 was $18.8 million (49.3% of revenues), an increase of 0.9% compared with $18.7 million (50.5% of revenues) in the fourth quarter of last year.
Operating profit for the fourth quarter of 2012 was $8.0 million (21.0% of revenues), compared with an operating loss of $0.3 million in the fourth quarter of 2011. In the fourth quarter of 2011, the Company made a provision for $7.3 million in legal expenses related to ICMS in Brazil.
EBITDA for the quarter was $12.2 million (31.8% of revenues), compared to an EBITDA of $3.7 million (9.9% of revenues) in the fourth quarter of 2011.
Financial expense in the fourth quarter of 2012 was $28 thousand compared with a financial income of $671 thousand in the fourth quarter of 2011.
Net profit was $4.4 million in the fourth quarter of 2012 (11.5% of revenues), compared with a net profit of $1.6 million (4.3% of revenues), as reported in the fourth quarter of 2011.
Fully diluted EPS in the fourth quarter of 2012 was US$0.21, compared with fully diluted EPS of US$0.08 in the fourth quarter of 2011.
Cash flow from operations during the quarter was $9 million.
Full Year Results
Revenues for 2012 reached $150.3 million. This is an decrease of 6.1% over revenues of $160.2 million in 2011.In local currency terms, revenues grew by 4% compared with 2011, due to the increase in subscriber base.
Gross profit for 2012 was $74.2 (49.3% of revenues), compared with $79.4 million (49.6% of revenues) in 2011.
Operating profit for 2012 was $29.9 million (19.9% of revenues) compared with an operating profit of $26.6 million (16.6% of revenues) in 2011.
EBITDA for the year was $44.6 million (29.7% of revenues) compared to an EBITDA of $43.6 million (27.2% of revenues) in 2011.
Net income in 2012 was $24.9 million (16.6% of revenues) or fully diluted earnings per share of $1.19. This is compared with a net income in 2011 of $21.3 million (13.3% of revenues) or fully diluted earnings per share of $1.01.
Cash flow from operations for 2012 was $32.5million. As of December 31, 2012, the Company had net cash, including marketable securities and deposits for short and long term, of $34.2 million or $1.63 per share. This is compared with $39.7 million or $1.89 per share as of December 31, 2011.
Dividend
For the fourth quarter of 2012, a dividend of $7.0 million was declared in line with the Company's stated policy of issuing at least 50% of net profits in a dividend, on yearly basis. For the full year of 2012, Ituran has declared a cumulative $17.2 million in dividends, amounting to 69% of net income for 2012.
Eyal Sheratzky, Co-CEO of Ituran said, "Overall, we are happy with our performance in 2012. Following the changes we implemented in Brazil, the second half of 2012 has demonstrated that this strategy was successful. Our subscriber base is now growing at a rate in line with our long-term targets and our operating margins have been steadily improving throughout the year. In fact, these results make apparent the operating leverage in our model, which enables a large portion of our increase in revenue to fall straight to the operating profit line. Over 2012, we continued to share the fruits of our success and reward the support of our shareholders, distributing a total of $17.2 million. "
Conference Call Information
The Company will also be hosting a conference call later today, February 19, 2013 at 9am ET. On the call, management will review and discuss the results, and will be available to answer investor questions.
To participate, please call one of the following teleconferencing numbers. Please begin placing your calls a few minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.
US Dial-in Number: 1-888-407-2553
ISRAEL Dial-in Number: 03-918-0610
CANADA Dial-in Number: 1-866-485-2399
INTERNATIONAL Dial-in Number: +972-3-918-0610
At: 9:00am Eastern Time, 6:00am Pacific Time, 4:00pm Israel Time
For those unable to listen to the live call, a replay of the call will be available from the day after the call in the investor relations section of Ituran's website.
Certain statements in this press release are "forward-looking statements" within the meaning of the Securities Act of 1933, as amended. These forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements contained in this report that are not historical facts as well as statements identified by words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates" or words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors.
About Ituran
Ituran provides location-based services, consisting predominantly of stolen vehicle recovery and tracking services, as well as wireless communications products used in connection with its location-based services and various other applications. Ituran offers mobile asset location, Stolen Vehicle Recovery, management & control services for vehicles, cargo and personal security. Ituran's subscriber base has been growing significantly since the Company's inception to over 667,000 subscribers distributed globally. Established in 1995, Ituran has over 1,300 employees worldwide, provides its location based services and has a market leading position in Israel, Brazil, Argentina and the United States.
Financial Tables to Follow **
CONSOLIDATED BALANCE SHEETS
US dollars
December 31,
(in thousands) 2012 2011
Current assets
Cash and cash equivalents 29,453 35,270
Investments in marketable securities - 68
Accounts receivable (net of allowance for
doubtful accounts) 26,190 25,294
Loan to former employee - 340
Other current assets 15,399 15,165
Inventories 14,747 10,881
------ ------
85,789 87,018
------ ------
Long-term investments and debit balances
Deposit in escrow 4,939 4,888
Investments in affiliated company 160 207
Investments in other company 82 80
Other non-current assets 1,890 2,216
Deferred income taxes 4,174 5,568
Funds in respect of employee rights upon
retirement 5,515 4,741
------ ------
16,760 17,700
------ ------
Property and equipment, net 34,156 40,870
------ ------
Intangible assets, net 2,591 3,355
------ ------
Goodwill 8,043 8,514
------ ------
Total assets 147,339 157,457
------- -------
------- -------
CONSOLIDATED BALANCE SHEETS
US dollars
December 31,
(in thousands) 2012 2011
Current liabilities
Credit from banking institutions 221 390
Accounts payable 9,524 9,319
Deferred revenues 9,526 7,869
Other current liabilities 22,373 20,966
------ ------
41,644 38,544
------ ------
Long-term liabilities
Long term loans - 173
Liability for employee rights upon retirement 7,915 6,865
Provision for contingencies 3,864 4,250
Other current liabilities 460 753
Deferred revenues 806 728
Deferred income taxes 643 792
------ ------
13,688 13,561
------ ------
Equity:
Stockholders' equity 88,027 101,194
Non - controlling interest 3,980 4,158
------ -------
Total equity 92,007 105,352
------ -------
Total liabilities and shareholders' equity 147,339 157,457
====== =======
CONSOLIDATED STATEMENTS OF INCOME
US dollars US dollars
Year ended Three month period
December 31, ended December 31,
(in thousands
except per share
data) 2012 2011 2012 2011
Revenues:
Location-based services 114,565 120,410 29,128 28,442
Wireless communications
products 35,753 39,757 9,099 8,534
------- ------- ------ ------
150,318 160,167 38,227 36,976
------- ------- ------ ------
Cost of revenues:
Location-based services 46,371 50,977(*) 11,650 11,967(*)
Wireless communications
products 29,786 29,758(*) 7,739 6,345(*)
------ -------- ------ ------
76,157 80,735 19,389 18,312
====== ======== ====== ======
Gross profit 74,161 79,432 18,838 18,664
Research and development
expenses 669 631 169 151
Selling and marketing
expenses 8,489 8,543 2,016 2,156
General and administrative
expenses 33,439 34,984 7,997 7,919
Other expenses (income),
net 1,617 8,691 632 8,704
------ ------ ------ ------
Operating income 29,947 26,583 8,024 (266)
Other (expenses) income 6,755 (819) - (13)
Financing income
(expenses) , net 987 2,100 (28) 671
------ ------ ------ ------
Income (loss) before
income taxes 37,689 27,864 7,996 392
Income tax (11,690) (5,655) (3,326) 1,341
Share in income (losses)
of affiliated
companies, net (39) (23) (10) (23)
------ ------ ------ ------
Net income (loss) for the
period 25,960 22,186 4,660 1,710
Less :Net income
attributable
To non-controlling
interest (1,080) (908) (250) (126)
------ ------ ------ ------
Net income attributable to
the company 24,880 21,278 4,410 1,584
====== ====== ====== ======
Basic and diluted earnings
per
Share of attributable to
company's
Stockholders 1.19 1.01 0.21 0.07
====== ====== ====== =======
Basic and diluted weighted
average
Number of shares
outstanding 20,968 20,968 20,968 20,968
====== ====== ====== =======
CONSOLIDATED STATEMENTS OF CASH FLOWS
US dollars US dollars
Year ended Three months period
December 31, ended December 31,
(in thousands) 2012 2011 2012 2011
Cash flows from operating
activities
Net income for the year 25,960 22,186 4,660 1,710
Adjustments to reconcile net income
to net cash from operating
activities:
Depreciation, amortization and
impairment of goodwill 14,671 17,801 4,151 4,692
Exchange differences on principal
of deposit and loans, net 55 (429) 233 24
Gains in respect of trading
marketable securities (2) (27) - (27)
Increase in liability for employee
rights upon retirement 888 854 185 173
Share in losses of affiliated
companies, net 39 23 10 23
Deferred income taxes 4,075 (2,224) 2,789 (858)
Capital losses on sale of property
and equipment, net 23 63 2 87
Decrease (increase) in accounts
receivable (300) 3,649 2,165 2,890
Increase in other current assets (7,974) (1,784) (1,202) (1,849)
increase in inventories (3,609) (2,985) (962) (1,781)
Increase (decrease) in accounts
payable (372) (180) (956) 527
Increase in deferred revenues 1,532 1,550 339 182
Increase (decrease) in other
current liabilities (2,445) 7,355 (2,427) 7,063
Litigation obligation - - - (237)
Net cash (provided by)operating ------ ------ ------ -------
activities 32,541 45,852 8,987 12,619
------ ------ ------ -------
Cash flows from investment
activities
Increase in funds in respect of
employee rights upon retirement,
net of withdrawals (662) (563) (164) (152)
Capital expenditures (9,676) (16,161) (4,854) (2,822)
Intangible assets expenditures - (74) - (16)
Deposit in escrow - 8,223 - 7,620
Deposit (291) 384 (10) (26)
Proceeds from sale of property and
equipment 319 614 43 65
Sale of marketable securities 70 1,418 - 1,418
Repayment of loan to former
employee 355 - - -
Adjustment of proceeds received
from sale of subsidiary - (4,650) - (4,650)
Net cash(provided by) investment ------ -------- -------- --------
activities (9,885) (10,809) (4,985) 1,437
Cash flows from financing ------ -------- -------- --------
activities
Short term credit from banking
institutions, net (310) 299 (363) (264)
Repayment of long term loans (44) (46) (11) (11)
Dividend paid (33,308) (21,782) (5,192) -
Dividend paid to non-controlling
interest (1,141) (767) (122) (261)
Settlements of litigation
obligation in connection with
financial transaction 7,462 (22,419) 7,462 (22,419)
Net cash(provided by) financing ------ -------- ------ --------
activities (27,341) (44,715) 1,774 (22,955)
Effect of exchange rate changes on ------- -------- ------ --------
cash and cash equivalents (1,132) ( 1,732) (15) 430
Net Increase(decrease) in cash and ------- -------- ------ --------
cash equivalents (5,817) (11,404) 5,761 (8,469)
Balance of cash and cash
equivalents at beginning of year 35,270 46,674 23,692 43,739
Balance of cash and cash ------ ------ ------ ------
equivalents at end of year 29,453 35,270 29,453 35,270
====== ====== ====== ======
Company Contact
Udi Mizrahi
[email protected]
VP Finance, Ituran
(Israel) +972-3-557-1348
International Investor Relations
Ehud Helft & Kenny Green
[email protected]
CCG Investor Relations
(US) +1-646-201-9246
SOURCE Ituran Location and Control Ltd
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