"As the global economy stabilizes we are seeing acceleration in our progress, with strong sequential growth in our net subscribers and strong cash generation," said Ituran Location and Control Ltd. (Nasdaq:ITRN); TASE:ITRN) co-CEO Eyal Sheratzky today. Ituran today published its financial report for the third quarter of 2009, beating the analysts' consensus. It also announced that it would double its dividends to at least 50% of net profits, instead of 25%.
Ituran reported a record number of subscribers for its vehicle location and roadside services to 495,000 at the end of September. Brazil continued to be the driver of the company's growth.
Ituran posted $32 million revenue for the third quarter, 9% less than the $35.2 million for the corresponding quarter of 2008, but 13% more than the $28.4 million for the second quarter. The company beat the analysts' consensus of $29 million revenue. 75% of revenue was from location based service subscription fees and 25% from product revenue.
Net profit was $4.6 million ($0.22 per share) for the third quarter, down from $5.6 million for the corresponding quarter. The company beat the analysts' consensus of earnings per share of $0.19.
Ituran's cash flow from operations was $12.5 million for the third quarter, including $4 million from a tax refund. The company had $70.6 million in cash at the end of September.
Ituran recorded a financial expense of $674,000 due to the shekel's appreciation against the dollar during the third quarter. The company said that it transferred most of its cash holdings into shekels, thereby reducing the effect of currency fluctuations on its results.
Ituran also announced that it signed a contract with Brazil's Sul America for stolen vehicle recovery services for at least 50,000 vehicles installed over two years
Ituran's share rose 3.2% at the opening on Nasdaq to $13, giving a market cap of $305 million. The share rose 0.9% on the TASE today to NIS 48.68.
Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2009
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