ITRN - Earnings call transcript Q1 2024 | Ituran Location and Control Ltd.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Ituran's First Quarter 2024 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.

of received Global contact or Investor in News not team Investor view have at the EK website at Relations section you it, Ituran's please Relations it www.ituran.co.il. If company's the at X-XXX-XXX-XXXX I would Mr. now the to over hand call EK Relations. of Investor Global Green Kenny Mr. you begin? would Green, like to

Kenny Green

call. summary and hosting a to the of remind Udi begin. then me begin you, contents XXXX Ituran. first We'll statement Sheratzky, With of this Thank results, you, the of open results. Eyal, also will the Good this thank of conference today call. Ituran's I Eyal Mr. press call and a to now day Kamer, to the the operator. like session. Eli that Ituran's Mizrahi, the VP quarter for management in call to the summary conference please of would like Eyal today's line I would CFO Mr. the release And all for financials. welcome to followed with CEO harbor quarter's on and safe question-and-answer everyone with by Deputy discuss Finance; are conference Eli Mr. CEO; covers

Eyal Sheratzky

all of XXXX you, Kenny. I'd to to joining like to and us our first for Thank quarter I you you welcome call, thank like would today.

net revenues We of in are additional pleased brought quarter, improvement expectations. our we continued and in profits the the results, in well at especially growth with end which the subscribers our in ongoing high as as in came the

in continue business loyal to being America Brazil due I and the our countries against Latin and demonstrate, a our that results customers around Ituran business is As other Israel, subscriber X.X in also globally part our shape highlight world. challenges. remains results resilient million of a diverse strong and of good in base with be to want to financial

XX,XXX in of of and subscribers per high rate had subscribers in subscriber quarter. the Our we and to due XX,XXX markets. XX,XXX well the our footprint quarter well expectation to long-term new per This base continue we which our between quarter, new about in global more our the come at as end prior is between end diverse was typically service to added bring XX,XXX years, of net advance as XX,XXX and the has

highlight quarters, quarter. I steady last we've recent happening rise like somewhat would self-trade, is Israeli In to which what market. seen the a is in in intensified in the

lower are service, to connect As a vehicles in SVR unit that result, insurance even customers their companies pushing not an past. than theft the or install new have are prevention and in to a the value initial

and The SVR penetration TAM outcome gone up the of of and market subscribers leader, growth is in that we, Israel. are grown, enjoying our has as accelerated an this has clear

our $XX.X of last profitability, of million pleased cash strong with position we growth just ongoing the updated in net quarterly and dividend again to are Given the solid $X our policy million, we dividend declare quarter. line a

the long-term our pleased our for fruits and reward support are loyal our of company. see We to our success, dividends ongoing of and share very to the shareholders we

to quarter, Given of on subscriber. [Audio began last the our provide guidance Gap] in business, stability the to guidance addition we EBITDA

$X.XX, quarter quarter earnings quarter for of earnings diluted year. XX% per flow first from of of XX.X% XXXX last was year. $X.XX first million. share the in first income of or million the the was compared the $XX.X increase for million Cash to $XX.X an of million of or of share operations last in quarter per Net $X revenues diluted first or $XX

million $XX of line year-end and updated of position cash cash As of marketable the policy, and XXXX. cash, with amounting compared declared The of of in dividend $XX.X quarter dividend company's million, net debt million a of to quarter. the securities was $X with Directors of including March including for which million, securities to Board as XXXX, the in net by million XX, a XX% $X.X is million. the had multiple period recently a of cash, of amounting $XX.X million position increased company This debt $X.X of $XX.X

current the continuing the call cash strong dividend to strong positive that, sheet. flow profitability, The session. ongoing takes and open account into Operator? the balance like with And for company's I'd question-and-answer

Operator

Instructions] [Operator

question is of Chris first The Reimer Barclays. from

Chris Reimer

mix, wanted specifically comment on the strong margin? to could pertains around would Congratulations to be the about parts the ask helpful. results. if moving gross I And as on you any comment it product that

Eyal Sheratzky

first XXXX. quarter the of during basically, So

Israeli the had derived the of since was than shutdown from was a started, X almost November. months, here war average higher October QX were Our there when sales, market, the was we and which much which compensate to and

So major a the basically I between typical quarter terms ratio represent the the It's think in difference. services. it's of not and amount. sales forward the the sales This is that not

Chris Reimer

seeing can you're trends last And Israel, outperforming any maybe And that's it. expectations? seeing around traction you of Got on if specifically more comment versus some you're your quarter? also the

Eyal Sheratzky

Yes.

of didn't in the start and So Israel, the situation war. because it

prevent of of that it's I X the say, in a after And So facing last trend soon up a years. would started it's we material, today, ramped kind and growth in security the are COVID, cost are And freight car high, solutions companies When they're needs, of the the car freight. also that means much the more cost insurance increasing these to for thefts. premiums. is insurance it

secondhand, in case, as the never SVR by a solution, when is In as high we they years was it, that come call that, speech, And that is means in Israel the they to inception required yes. that we when and Today, car request. the are the are their solutions. for providing which mentioned, said And we are, expected location more to brand-new bought years of growth when as we than didn't you DCO, in let's insurance X since cars that company X facing player are solution. and renew seeing XX Israel, that even -- dominant and I and see my in even models, are a install security this SVR which high it we attraction, put faced of we ago, they policy something

Operator

Instructions] [Operator

The is next More Mutual of Schneider Boris Funds. from question

Boris Schneider

Yes.

Just a on than your Brazil, Israel. is the growth even growth in which XX-F higher question the in actually on

speak So on that? what's if driving you how see And could do you forward? going this

Eyal Sheratzky

by we you of clear, actually they Just of And solution the a can, representing XX-F to be during end the regard because it's I with XXXX. this a in contract in give way, but is under growth buyers there into and Santander our It's contract we this regard after also Brazil the the churn. that And the remember, for car finance always provide year Bank supports 'XX, information XX continued, is contract that to XXXX, XXXX. months, providing signed is course, take finance, in have XXXX. for the consider as

same from definition, is growth as selling we the although the because beginning, always XX but contract the quantities, Santander by not growth decrease, is no churns the churn same after there at are months, will the So the when the started come.

of, expecting sell be dramatic and but the penetrate in So [indiscernible] a that 'XX, in was changes, are keep new order other are same our some seeing I as same say, we the growth between and continue meaning it any looking expand the And financial not are I'm to we to on we Brazil solution. volatility not in segments, numbers. to would forward, retail will There segments the expectations the always lot customers. work is doing 'XX

So talking in am expecting continue to Brazil as growth term, well. for show and mid longer I will that we

Boris Schneider

which also your mentioned update on you the you motorcycles, I in previously, on didn't And Okay. mentioned several that last think this? Brazil. penetrate there the in is vertical you insurance Is of calls, any

Eyal Sheratzky

it's solutions quite to new. We Yes, just motorcycles, of no course, something for is there update. started sell

that, issue still a up it's more new something for see new subscribers as that segment, not on time it's -- -- our But so talking in base dramatic it's about and solution become and taking subscriber company X.X I it's until when Brazil. influence that we the are million, and always, when material. has when you it's So ramping has a again it's a we believe

So I XXXX, motorcycle the during that that growth believe will we the segment support expect. XXXX, additional

Boris Schneider

in than we low, about the question quarters? was should final think terms gross of It for though How products. last the chain? future supply the of your And in crisis even during Okay. margin

Eli Kamer

that it little bit a there are we was is remember like that mixture products Yes, country. usually, a low, of over to X% the But you all need less. selling

or So basically, the little gross this the is range. that's let's or but margin of, down, XX%, less say, of up bit range a more

Operator

There are no time. this questions at further

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

Eyal Sheratzky

our We hope of shareholders, business. behalf to speak On I interest would management coming our like you, for Yes. continued your long-term quarters. and Ituran, you of the of support thank some over of the with to

and speaking that, with our feel interested we to Thank you end meeting are If And good us, free a Investor to team. reach our with day. have Relations in out call. or you,

Operator

participation. the Conference Thank This for Quarter concludes you. Ituran's Results Call. First Thank you XXXX your of

may disconnect. and now ahead go You

Ituran Location and Control (ITRN) 28 May 242024 Q1 Earnings call transcript