ITURAN LOCATION AND CONTROL LTD ANNOUNCES DISTRIBUTION OF A $3 MILLION DIVIDEND

Rhea-AI Summary

Ituran Location and Control Ltd. (NASDAQ: ITRN) announced a cash dividend of $0.14 per share, totaling approximately $3 million, to shareholders of record by March 23, 2022. The payment is scheduled for April 6, 2022, with a tax deduction of 25%. The Board of Directors confirmed that this distribution will not impact the company’s operational capabilities, as its retained earnings will be $140.3 million post-distribution. As of December 31, 2021, Ituran had a cash balance of $50.3 million and long-term debt of $13.2 million.

Positive

• Approval of a cash dividend of $0.14 per share, enhancing shareholder income.
• The dividend distribution confirms the company's strong financial position and cash balance.

Negative

• None.

AZOUR, Israel, March 7, 2022 /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 March 23, 2022. The Company will pay the dividend out on April 6, 2022 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, 2021, prior to the distribution was US$143.3 million and retained earnings will reach US$140.3 million after the distribution. The Board of Directors emphasized that as of December 31, 2021, the Company had a cash balance in hand of US$50.3 million (this amount is prior to the payment of a dividend of US$3 million which was issued for the third quarter 2021 and was paid out in January 2022). The Company also had long-term debt of US$13.2 million and credit from banking institutions of US$18.3 million. As of December 31, 2021, the Company's current assets (excluding cash and cash equivalents) were in the sum of US$112.4 million and current liabilities were in the sum of US$104.6 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 and 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
ituran@gkir.com
GK Investor & Public Relations
(US) +1-212-378-8040

View original content:https://www.prnewswire.com/news-releases/ituran-location-and-control-ltd-announces-distribution-of-a-3-million-dividend-301496616.html

SOURCE Ituran Location and Control Ltd

FAQ

What is the dividend amount announced by Ituran (ITRN)?

Ituran announced a cash dividend of $0.14 per share.

When will the dividend be paid to shareholders of Ituran (ITRN)?

The dividend will be paid on April 6, 2022.

What is the record date for Ituran's (ITRN) dividend distribution?

The record date for the dividend distribution is March 23, 2022.

What is the total amount of the dividend distribution by Ituran (ITRN)?

The total amount of the dividend distribution is approximately $3 million.

What is the tax rate on the dividend for Ituran (ITRN) shareholders?

The dividend will be subject to a tax rate of 25%.