Business
Ituran Location and Control Ltd. Presents Results for the First Quarter of 2020
AZOUR, Israel, May 13, 2020 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN), today announced its consolidated financial results for the first
About this update from Ituran Location And Control Ltd.
[{"type":"text","content":"AZOUR, Israel, May 13, 2020 /PRNewswire/ -- Ituran Location and Control Ltd. (NASDAQ: ITRN), today announced its consolidated financial results for the first quarter of 2020.\nHighlights of the first quarter of 2020\nRevenue of $68.4 million; EBITDA of $15.3 million; Generated $10.7 million in quarterly operating cash flow; Net increase in aftermarket subscribers of 17,000; Total subscribers reached 1,794,000 at the end of the quarter;Management Comment \nEyal Sheratzky, Co-CEO of Ituran said, \"We are pleased with Ituran's first quarter performance with revenues and operating income ahead of those of the prior quarter, driven by continued subscriber growth in the aftermarket business. This is despite the impact from the COVID-19 pandemic and some currency headwinds.\"\nContinued Mr. Sheratzky, \"Due to the pandemic, in the second quarter we have seen a halt in new car sales globally, and therefore in new subscribers. We have been focusing on reducing expenses across the board, which will allow us to mitigate some of the impact to profitability and cash generation. Consequently, for the second quarter, we expect between a 10-20% reduction in EBITDA. \n\"Conservatively, the board has decided to suspend our dividend payments for the time being in order to strengthen our cash levels, which will better enable us to weather this significant global crisis, while also providing us with increased capital to take advantage of any opportunities. \nConcluded Mr. Sheratzky, \"Our ability to remain profitable and cash flow positive during this unprecedented global crisis, demonstrates the overall resilience of our business model, built on the subscription fees of 1.8 million customers distributed globally. I remain optimistic over the long-term, while in the short-term preparing Ituran to overcome the current crisis. I am confident that Ituran will emerge this period as a stronger and more efficient company. \"\nFirst Quarter 2020 Results\nStarting from the current quarter, the difference between the GAAP and non-GAAP results has become minimal. Therefore, Ituran will discontinue its reporting of the non-GAAP financial measures from the current first quarter of 2020. \nRevenues for the first quarter of 2020 were $68.4 million, a decrease of 7% compared with revenues of $73.6 million in the first quarter of 2019.\nThe higher average level of ...