Ituran Location and Control Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to the Ituran's first quarter 2024 results 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 Ituran's investor relations team at EK Global Investor Relations at 1-212-378-8040 or view it in the news section of the company's website at www.eturan.co.il. I would now hand over the call to Mr. Kenny Green of EK Global Investor Relations. Mr. Green, would you like to begin?

Thank you, Operator Sam. Good day to all of you and welcome to Iteran's conference call to discuss the first quarter 2024 results. I would like to thank Iteran's management for hosting this conference call. With me online today are Mr. Eyal Sharadsky, CEO, Mr. Udi Mizrahi, Deputy CEO and VP Finance, and Mr. Eli Kamar, CFO of Iteran. Eyal will begin with a summary of the quarter's results, followed by Eli with a summary of the financials. We'll then open the call for the question and answer session. I'd like to remind everyone that the safe harbor statement in today's press release also covers the contents of this conference call. And now, Eyal, please begin.

Thank you, Kenny. I'd like to welcome all of you to our first quarter 2024 call, and I would like to thank you for joining us today. We are pleased with our results, especially in the ongoing growth in revenues and continued improvement in profits, as well as the additional net subscribers we brought in the quarter. which came in at the high end of our expectations. As our strong financial results demonstrate, our business remains in good shape and continues to be resilient against challenges. I also want to highlight that part of our resilience is due to it being a globally diverse business with a loyal subscribers of 2.3 million customers in Israel, Brazil, and other countries in Latin America and around the world. Our subscriber base added 39,000 subscribers in the quarter, at the high end of our expectation of between 35,000 and 40,000 net new subscribers per quarter. This is well in advance of the long-term rate we had in prior years, which was typically between 20,000 and 25,000 per quarter, and has come about due to our more diverse global footprint, as well as the new service we continue to bring to our end markets. I would like to highlight what is happening in the Israeli market. In recent quarters, we've seen a steady rise in theft rate, which has somewhat intensified in the last quarter. As a result, insurance companies are pushing their customers to install an SVR unit and connect to the theft prevention service, even in vehicles that are not new or have a lower initial value than in the past. The outcome of this is that SVR penetration has gone up and our time has grown and we, as the clear market leader, are enjoying an accelerated growth of subscribers in Israel. Given the strong net cash position of $53.9 million, our ongoing growth and our solid profitability, we are pleased to again declare a quarterly dividend of $8 million in line with the dividend policy we updated just last quarter. We are very pleased to share the fruits of our success, and we see our ongoing dividends a reward to our loyal shareholders for their long-term support of our company. Given the stability of our business, last quarter we began to provide EBITDA guidance in addition to the guidance on subscriber growth, which we used to do. As a reminder, for 2024, Our guidance is fully EBITDA of between $90 and $95 million, and we expect to cross the $100 million EBITDA landmark in 2025. We believe that our first quarter results put us well on track, and we reiterate this expectation. We expect subscriber growth to continue growing at around current rates of between 35 and 40,000 net new subscribers per quarter. I note that these expectations are as of today. Our EBITDA expectations are based on relevant currency levels remaining around current average rates and assume that current global macroeconomic situation globally and political situation specifically in Israel do not significantly worsen. In summary, the first quarter of 2024 has started very well with solid performance and we believe that 2024 will continue on this trend. I believe that our constantly growing subscriber growth will continue to translate into increased revenues, increased gross profit, with faster growing profitability over the long term due to the operating leverage inherent to our business. And with that, I hand over to Eli. Eli, please go ahead.