ITRN - Earnings call 4 2023 | Ituran Location and Control Ltd.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Ituran Fourth Quarter and Full Year 2023 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

You should have all received by now the company's press release.

If you have not received it, please contact Ituran's Investor Relations team at EK Global Investor Relations at 1-212-378-8040 or view it in the News section of the company's website, www.ituran.co.il. I will now hand over the call to Mr. Global EK of Helft Investor Relations. Ehud Mr. you would like to begin? Helft,

Ehud Helft

of and Good Thank CFO. Eyal Udi to and of financials. quarter release will for results. hosting day safe results, on begin Ituran you, like Mr. me to and call the to Mr. this operator. begin, summary a would the quarter the also discuss year Finance; by a of like remind I Deputy and Eli fourth this call all of you content CEO; Management [Operator conference to please? are conference with CEO Eli to press Kamer, you, Mr. Mizrahi, the harbor in thank the followed now Sheratzky, XXXX with Deputy call. And Ituran's would welcome like the today call. With full covers everyone the summary that to Eyal Instructions] I'd Eyal,

Eyal Sheratzky

welcome you, our to Thank you you and to us like and for I'd quarter year thank joining to today. fourth Ehud. XXXX would call like all of full

XXXX which We with our for results, are year was a Ituran. pleased record

issues everyone chain faced the supply past over effectively major in paused We including recently economy many our strong results corona war, for which a quarter achieved are country given global these the few economy. pandemic, weeks. more difficult the has fourth by faced resulted all challenges we despite few start at in a pleased This that new terrorist a a challenge, that followed of the slowing which years, attack which quarter, and

business. subscriber challenges. I of is global in in of primarily Ituran reason many more and X.X good highlight in customers, in part for world. the our war our shape in new pause in countries the Israel loyal as based demonstrate, will a that of than but subscribers sales elsewhere and base results product financial want our the limit our As specific local other as Brazil, region a America is a business And initial drives in is have business car Israel, one overall a this also complete impact caused very and the therefore, Latin temporarily in aftermarket also which against new well The million on Ituran's to impact any diverse reliance car in on market. sales that reside strong country on effect

January at pause year-over-year. were sales Israel up was long-term of car short XXXX, lived. new in of and this However, X% car a And continue relatively sales as end former new trend,

subscribers per we imagine, and well strong earlier furthermore, overall Our base continued with had ahead long-term in to subscriber This XX,XXX in rate and XX,XXX we the quarter. between strength in of adding of growth, advance picture we is with well still as is of last pleased of XXXX shared XX,XXX you can XX,XXX strong. between QX. our And and the that show XX,XXX expectations very you in the relative our are quarter, XXXX quarter. Overall, in

$XX million over net no balance We in debt. with ended our the with at Looking cash strength. quarter sheet almost

$X dividend quarter. profitability, in quarter the $X our further million quarter, the for decided Last to this a each And ongoing increasing million row, we growth, have cash net quarter. $X ongoing dividend increase strong we from our strong million Given level are per generation quarter, per solid quarterly our and second the increased the our we quarter to cash dividend. to

challenging time, of our from continue our stability the the our success, program fruits provide during of our share EBITDA see and of long-term have the guidance for loyal a XXXX, dividend well to company. Starting are our pleased we and very as decided support ability we as our buyback as to business our to We ongoing performing reward to given even ahead. shareholders

expect report the currently and XXXX, year between of EBITDA in and $XX XXXX. million $XX million For full $XXX expect million cross to we to EBITDA landmark

We rate approximately I net of per are XX,XXX note to growth current at the as that of the continue subscribers new around growing XX,XXX subscriber expect expectations quarter. to today.

all are the at specifically continue political significantly to that Our relevant Israel that situation remaining currency time rates had year the them performance I'm believe EBITDA to a average levels in team, worsen. In will respects, around expectation of in of their Israel, that these we solid and for macroeconomic globally was and current trend. Ituran doesn't courage XXXX and based challenging recently and also assumes for summary, resilience very on situation, current global commitment and in and both globally, of on especially times. dedication have wish XXXX personally add want Ituran and the during this proud thank I the we in

throughout with will continue the long been constantly long growing true history and add subscriber growing faster term business. And growth leverage that, to our with go revenues into translate to profitability ahead. the I to As hand to over please to inherent has increased Eli, term, our due over will over our long continue the operating Eli.

Eli Kamer

will summary Eyal. I a provide of short the Thanks, results. financial

Fourth on $XX.X the against quarter revenues currency the over currency XXXX million, was fourth X% compared during $XX.X of grew fourth a XX% subscription impacted the in compared of local revenues in demonstrated, by increase year-over-year. with that currency XX% million, year. in by decrease the terms, an by revenues can fourth product product X% the due last Argentine compared of impacted a over dollar XXXX $XXX.X of million, by revenues XXXX. year-end, thousand quarter million In were the quarter of terms, peso of in war $XX.X X% find million Xth. compared significant the with war over year. Product increase a $XXX.X that local from over increase as a XXXX. somewhat with U.S. October quarter that Revenues last year. of well revenue You with of an Israeli terms last temporary the local year-over-year. XXXX. The an fees fees The quarter the in of as the marketing terms, the the the the quarter quarter. And were quarter revenue was fourth U.S. end mainly XXX,XXX from XX% expanded revenue the the -- of in revenues Fourth of shekel in subscription revenues. out Revenues decline In were million, to denominated increase Product $XX.X the year X% we press weakness results the was Israel was were break devaluation the detailed Israel in release for following XXXX today. X% issued XXXX. of quarter more Furthermore, were dollar earlier X,XXX,XXX to increase the $XX.X full revenue as by record October million, of $XXX previous increase million, reported XX,XXX on an Revenues from subscriber in outbreak hardware record representing in XX% increase decreased were and base representing installation Xth. quarter a a of

was Israel, EBITDA of diluted breakdown revenue, the million of quarter an for of net XX%; or of XX% fourth or or or or the revenue, XXXX year. of XX.X% quarter follows: $XX.X share fourth income in of to or in local million fourth in last subscriber quarter year. of in flow in currency increase million, OEM $XX.X for from compared quarter and XX,XXX base. The of was of last net fully $XX.X was quarter from with quarter $X.X by fourth million earnings of $X.XX, of XX.X% of quarter flow net geographic million grew compared $XX.X increase by share of was cash in of an $XX million. quarter in of record last earnings year. In the compared XX% an revenues million for of quarter, per operation X% $XX.X increase currency $X.XX, and net an XX.X% year-over-year. Net that per X% with of was XX%; million fourth income fourth operations local $X.XX $XX.X revenues of fully million of XXXX revenues terms, increase compared a $XX.X of During EBITDA grew the the for XXXX. Cash of diluted diluted share was to per there compared income $XX Brazil, Rest as XX% the the $X.XX of the quarter XX% of an income of In was million XX.X% or fourth in share an diluted per increase the terms, earnings the for X,XXX fourth base World, earnings EBITDA XXXX. Net increase the year with subscriber aftermarket fourth was XX%. EBITDA XXXX

of that cash prior continuing ongoing X to $X million and in of $X.X compared cash, $XX increase in of had cash, quarterly debt in increase quarters dividend company $XX.X quarterly from position the a the company's the a quarter quarter prior XXXX. The This million profitability, increased December to position a net the quarter of million of from balance increase in of cash million with that. of amounting the marketable end and a that. and marketable compared $XX.X represents dividend of XX, to amounting positive and to policy. and the The is the debt to as prior dividend over the the This $XX.X announced in net the flow prior dividend company strong As $X strong another million, XXXX, payment including securities $XX of with of This XX% XXX% ongoing the the Board cash security Directors million, $X including million follows of many million sheet. in million. quarters paid a

$X.X back of XXXX, During bought buyback as program. Ituran share part million its

buyback that, there December repurchases on available by repurchase remaining XX, terms. And XXXX, open to like and the the the ordinary Operator? session. under for under is Rule XXb-XX are Ituran's I'd of cash SEC Share program. call million question-and-answer with $X.X funded As shares

Operator

The Instructions] Barclays. Reimer is Chris of question [Operator first from

Chris Reimer

off, maybe talk subscriber dynamics in the if you're geographies? drivers behind of the I the seeing what some are And about could some you different of the was wondering, first guidance.

Eyal Sheratzky

The segments. drivers today are different different from, drivers main say, in would coming I

companies of an is and say. insurance looking phase it expense owners most I so and get First the more every we is institutions things we subscribers. that rate provide new and continue think, during for and focused security more Latin as solution, new one, one, in all, the it It a -- more for loans on case, are cost I car our such And in we as increase is that as security more in more means BXB, they This is car having that to Israel. the financial needs, since have; XXXX the are started increasing. is theft And in requests well also night, other Israel, also the America. buyers systems. countries, solution there And which we would in car for violence and in more when as

this main So is the drivers.

Chris Reimer

And would many sub well, how the million, based forward Great. gave for on just guidance EBITDA you be how surpassing XXXX $XXX at -- about, much on? touching adds that roughly

Eyal Sheratzky

hand, generating assuming a going to show or the up considering some provide of less. lot services And dramatically X speaking, XXXX and actually last subscribers generally other What expect of on XXX,XXX, are increased that ARPU, in years the because that is but lower is while we not ARPU we're in number is of change more sales. we around we this is the the what XX% we

Israel, call And bread in Israel and example, ARPU in adding, very growing. is is payments. sell and those in that percentage when high the traditional is For of for still application SVR, example, the case, are this butter, let's we -- it, customers which

so this of expenses -- not say, So model be by operating consider guidance. stay decrease, this every we overall, will -- year can subscribers. and that to assumptions, will will the the will decrease expecting way, let's the to our every provide we of additional leverage this, are ARPU that And expenses with add we conservatively we growth the number year, this the build

Operator

of Schneider More. The next question Boris from is

Unknown Analyst

the Congratulations that guidance execution. we And strong you on appreciate provided.

the the that's great you Israel. long-term think events investors well. as in that mentioned help terms I had for expenses. to Last some you in of related one-off a quarter, Question expenses

what's but So if this it's can quarter. impact number, significant, know said income the to I very quantify the the on understand you net not just you

Eyal Sheratzky

some or giving we speaking, can you when without But actually, the little a we frame more actually, war, about we decreasing we expenses let's hundreds talked material in have the course, As quarter it's world, it, and thousands number anyway, contribution bit of about expected in last to the specific needs of most directly Israel a more, little of generally bit expenses, don't in see, the we for which -- sales put say, Israel. today, a not in -- are in because which don't of talking dollar anymore. we for

Unknown Analyst

in Okay. subscription guidance roughly of terms guidance, And your mentioned X%. so

look I think And if that at it's is the the lower. EBITDA I lower end. guidance,

is, significant question operating the one. -- your is business a based obviously, my So model financial on quite leverage and your model,

So do you quite But conservative. what think the this? guidance appears be to on

Eyal Sheratzky

is provide to First of understand. all, have to total about no part XXX,XXX then we when zero a as sale about because talking this net understand first we after of there that number the this we the and forget don't is have that net, we the talk we cost -- churn, What is say the churn. here

very churn. there high zero because the second cost but grow it's X reasons, cost. reason. So to growth, Regard the not And a in still, in conservative is from XXX,XXX of net one a terms is it's order growth, is

places, which is customers. also it the Some appear a to financing direct we And and are specific part have provide -- to time, we from the to we amortization. solution time hardware, of in service,

add So we R&D. have we add to --

you're which it I subscribers. the be right growth we to appeared it of that want higher to that be with guidance. but have guidance, I correlative the EBITDA, practically, more the conservative to be be when So in higher, provide to we growth believe will

So the this main is reason.

Operator

of OSP. is from The next question Horovitz Abba

Abba Horovitz

I all just while Congratulations a Bringg. on heard Bringg. know to that the guidance. around quarter been nice about and you us just on wanted if the all update could It's very we've

talk maybe new could you to anything If about there's if share.

Eyal Sheratzky

spoke doesn't we another impressive need holding, more years very Bringg, It from raised the we than Bringg XX% a Since when round then, when a did million. we kind We X have to about ago, we round. shareholders. do financial that company about know Usually, since it's the $XXX made of when was the round.

we business is we since like as operational allowed it's inform stick and it's and we why this not have XX%. a it So from only company to the its plan, because going point things view, -- planned. of anything the -- the has didn't side But business looks are are

Abba Horovitz

good. own guys Very Okay. Are your any at other investments outside you stock? looking of

Eyal Sheratzky

is it the didn't only the is an acquisition, go we as think, invest. to did synergy more in it, except last than last, X in of acquired when years, we our years, or No, full are for And the always the Bringg, doing it investing which and in consolidation part we which create Track or when in we will X field. -- also on in future I a We investment we companies, we Angel, did Road results. again, Ituran

SaverOne that is today. financial is holdings Bringg and -- So actually the Bringg we only have

Operator

this Instructions] [Operator no time. There further at are questions

tomorrow www.ituran.co.il. Mr. a will statement, Sheratzky, would I Before I remind statement? ask like be of make with call go his replay concluding available this Mr. ahead to closing a you to Ituran's on that participants would Sheratzky to like website,

Eyal Sheratzky

of We like thank a Ituran, shareholders, that, and good support of quarters, for interest Yes. you our team. would free to to to some with to speaking in interested and be Relations On our you, day. of long-term management hope speaking coming And our and out call. meeting the have if you I continued reach over our are Thank you, your business. feel end with with or we us, to behalf Investor

Operator

fourth concludes XXXX participation. for you. conference Thank quarter results Thank your and full This the year call. you Ituran

disconnect. You may go ahead and

Ituran Location and Control (ITRN) 29 Feb 242023 Q4 Earnings call transcript