ITURAN LOCATION AND CONTROL LTD ANNOUNCES DISTRIBUTION OF A $8 MILLION DIVIDEND

Rhea-AI Summary

Ituran Location and Control (NASDAQ: ITRN) has announced a cash dividend distribution of $0.39 per share, totaling approximately $8 million. The dividend will be paid on October 9, 2024, to shareholders of record as of September 26, 2024, with a 25% tax rate applied. The company's Board of Directors has confirmed that this distribution will not impact Ituran's ability to meet its current and future business obligations.

As of June 30, 2024, Ituran reported retained earnings of $214.2 million before the distribution, which will decrease to $206.2 million after. The company held a cash balance of $63.2 million and had minimal credit from banking institutions at $0.2 million. Ituran's current assets (excluding cash) stood at $124.2 million, with current liabilities at $91.9 million.

Positive

• Dividend distribution of $0.39 per share, totaling $8 million
• Strong retained earnings of $214.2 million before distribution
• Healthy cash balance of $63.2 million as of June 30, 2024
• Low credit from banking institutions at $0.2 million
• Current assets ($124.2 million) exceed current liabilities ($91.9 million)

Negative

• Reduction in retained earnings from $214.2 million to $206.2 million after distribution

News Market Reaction – ITRN

+3.07%

+3.07% Session move

In the trading session that priced this news, ITRN gained 3.07%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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AZOUR, Israel, Aug. 19, 2024 /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 $0.39 per share, totaling approximately US $8 million. The dividend will be paid to shareholders of record as of September 26, 2024. The Company will pay the dividend out on October 9, 2024 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, 2024, prior to the distribution was US$ 214.2 million and retained earnings will reach US$ 206.2 million after the distribution. The Board of Directors emphasized that as of June 30, 2024, the Company had a cash balance in hand of US$ 63.2 million (this amount is prior to the payment of a dividend of approximately US$ 8 million which was issued for the first quarter 2024 and was paid out in July 2024). The Company had credit from banking institutions of US$ 0.2 million. As of June 30, 2024, the Company's current assets (excluding cash and cash equivalents) were in the sum of US$ 124.2 million and current liabilities were in the sum of US$ 91.9 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 over 2.3 million subscribers using its location-based services with a market leading position in Israel and Latin America. Established in 1995, Ituran has approximately 2,800 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.

Logo: https://mma.prnewswire.com/media/1972820/Ituran_logo.jpg

Company Contact Udi Mizrahi
udi_m@ituran.com
Deputy CEO &VP Finance, Ituran
(Israel) +972 3 557 1348

International Investor Relations
Ehud Helft
ituran@ekgir.com
EK Global Investor Relations
(US) +1 212 378 8040 

View original content:https://www.prnewswire.com/news-releases/ituran-location-and-control-ltd-announces-distribution-of-a-8-million-dividend-302225245.html

SOURCE Ituran Location and Control Ltd

FAQ

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

Ituran (ITRN) announced a cash dividend of $0.39 per share.

When will Ituran (ITRN) pay the announced dividend?

Ituran (ITRN) will pay the dividend on October 9, 2024.

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

The total amount of the dividend distribution by Ituran (ITRN) is approximately $8 million.

What was Ituran's (ITRN) retained earnings as of June 30, 2024?

Ituran's (ITRN) retained earnings as of June 30, 2024, were $214.2 million before the distribution.

How much cash did Ituran (ITRN) have on hand as of June 30, 2024?

Ituran (ITRN) had a cash balance of $63.2 million on hand as of June 30, 2024.