Ituran Location and Control Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to the Ituron fourth quarter and full year 2020 result conference call. All participants are at present in listen-only mode. Following management's formal presentation, instructions will be given for the question and answer session. For operator assistance during the conference, please press star zero. As a reminder, this conference is being recorded. You should have all received by now the company's press release. If you have not received it, please contact Eturan's investor relation team at GK Investor and Public Relations at 1-646-688-3559 or view it in the news section of the company's website at www.eturan.co.il. I will now hand over the call to Mr. Ehud Helft of GK Investor Relations. Mr. Helft, would you like to begin, please?

Thank you, Operator. Good day to all of you, and welcome to E2RUN's conference call to discuss the fourth quarter and full year 2020 results. I would like to thank E2RUN's management for hosting this conference call. With me today on the call are Mr. Eyal Sharadsky, the CEO, Mr. Udi Mizrahi, Deps. CEO and VP Finance, and Mr. Eli Kamar, the CFO of E2RUN. Eyal will begin with a summary of the quarter results, followed by Eli with a summary of the financials. We will then open the call for the questions and answer session. I'd like to remind everyone the safe harbor in this press release also covers the content of this conference call. And now, AI, would you like to begin, please?

Thank you, Ehud. I'd like to welcome all of you, and thank you for joining us today. I hope you and your families are continuing to stay healthy. We are very happy with the improvement in our results in the fourth quarter, which outperformed our expectations. in what concludes a very hard year for everyone of us. Despite being a difficult year for everyone, we are pleased that we maintain our profitability and strengths, and in particular, we generate record operating cash flow of $60 million. This is a solid demonstration of the strengths of our business, even in the toughest of times. For the fourth quarter of 2020, revenues were $63.6 million, growing by 3% year over year in local currency terms. And bear in mind that the year ago, fourth quarter was pre-corona. Our aftermarket subscriber growth was 21,000 net in the quarter, which is a growth rate we are very happy with and at a level that we typically expect in normal times. I see this as a very positive sign for the coming quarters, and it shows that Ituran is well on the way to recovery and renewed growth. On the profitability side, as you know, we have managed the business very carefully to ensure we remain lean and profitable. For the quarter, we reported EBITDA of close to $17 million, demonstrating growth of 17% year-over-year in local currency terms, when excluding last year's impairments. This shows that we continue to be successful in mitigating the impact of the pandemic on our improving profitability. It is a strong testament to the overall resilience and stability of our business model. On the cash side, fourth quarter cash flow from operating activities of $16.5 million, bringing our cash and marketable securities position to just under $79 million. Because of the continued cash generation, strong results, and improvement in the general market environment, the Board decided to restart the dividend payment policy to shareholders, with a payment this quarter of $10 million for 2020, and a new policy of issuing at least $3 million on a quarterly basis. We are very pleased to renew the sharing of the rewards of Ituran's success with our shareholders. Again, the Board is remaining conservative while the pandemic is still having its impact, and we'll review the policy as things develop. Our stability is built on our subscriber base, which remains strong and healthy. It's close to 1.8 million subscribers, whereby the majority of them are paying us on an ongoing basis a monthly fee. Our revenue starting point each month is already on the back of this. During the quarter, as I said, our aftermarket business returned to its normal growth rate of 21,000 new net subs. The regions that were particularly strong were Israel and the US. I note that in January 2021, Israel had its highest level of new car sales in history, up 16% year over year, which compares with the January 2020, a pre-COVID month of car sales. While it is only one month, I know, and maybe catching up from car sales which were not completed in the Q4 shutdown, It is another sign that 2021 is starting well. While many countries in South America are still highly impacted by the virus and economies remain weak there, but we are seeing improving trends, especially in Brazil and in Mexico. During the quarter, we saw a decline of 5,000 OEM subscribers. I remind you that in Q2, we lost 27,000 and in Q3, the loss declined to 12,000. Therefore, the decline in the OEM base over the past year has been dramatically curtailed in the fourth quarter and we are clearly moving in the right direction. We don't see the OEM base as simply a subscriber growth story. We are working hard to harvest all the synergies across our entire business and in all our various geographies, cross-selling and replicating successful business models and sales from one region to another. We tap our large subscriber base of almost 1.8 million paying customers to bring them new and valuable telematic and related services by which we can organically grow our sales. We believe that as the world moves past the pandemic, e2Run is very well positioned for growth. In summary, overall we are very pleased with our first quarter financial results ending the hardest year in our history. Given our improvements and the strong cash generation, the Board decided to renew our dividend payment while maintaining a level of conservatism as long as the pandemic impact continues globally. As you can see, we are sharing the ongoing fruits of our success with our shareholders. We've managed through the crisis well, maintained profitable business and generated a strong level of cash flow, which represents the resilience of our business model. We also use the slower periods to make incremental improvements throughout our business to look for efficiencies and harvest synergies. I believe we are now very well positioned to resume growth and increased profitability through 2021. I will now hand the call over to Eli for the financial review. Eli? Thanks, Eyal.