Ituran Location & Control Ltd. Files 20-F for Fiscal Year Ended December 31, 2023

TL;DR

<b>Ituran Location & Control Ltd. filed its 20-F report for the fiscal year ending December 31, 2023, detailing intangible asset amortization, goodwill impairment, and operating lease figures.</b>

AI Summary

Ituran Location & Control Ltd. (ITRN) filed a Foreign Annual Report (20-F) with the SEC on April 18, 2024. Aggregate amortization of intangible assets estimated at US$4,707 thousand for 2024, decreasing to US$608 thousand in 2028. Accumulated goodwill impairment loss was US$29.89 million as of December 31, 2023. Operating lease transactions amounted to US$40.9 million as of December 31, 2023. The filing includes data related to insurance policies and executive compensation targets. Key dates and financial figures for the fiscal years 2021, 2022, and 2023 are referenced.

Why It Matters

For investors and stakeholders tracking Ituran Location & Control Ltd., this filing contains several important signals. The disclosure of future intangible asset amortization provides insight into expected future expenses impacting profitability. Information on goodwill impairment and operating lease transactions is crucial for assessing the company's asset valuation and financial commitments.

Risk Assessment

Risk Level: — Ituran Location & Control Ltd. shows moderate risk based on this filing. The company's financial health and asset valuation are subject to potential fluctuations indicated by goodwill impairment and operating lease figures, requiring careful analysis.

Analyst Insight

Investors should review the detailed notes on intangible assets and operating leases to understand the full financial picture and potential future impacts.

Key Numbers

• 4,707 — Amortization of Intangible Assets (2024) (US$ thousand)
• 29.89 — Goodwill Impairment Loss (US$ million, as of Dec 31, 2023)
• 40.9 — Operating Lease Transactions (US$ million, as of Dec 31, 2023)

Key Players & Entities

• Ituran Location & Control Ltd. (company) — Filer name
• US$ 4,707 thousand (dollar_amount) — Estimated aggregate amortization of intangible assets for 2024
• US$ 29.89 million (dollar_amount) — Accumulated goodwill impairment loss as of December 31, 2023
• US$ 40.9 million (dollar_amount) — Amount subject to operating lease transactions as of December 31, 2023

FAQ

Industry Context

Ituran Location & Control Ltd. operates in the technology and services sector, with a focus on location-based services and insurance.

Regulatory Implications

The filing is a 20-F, an annual report required for foreign private issuers with the U.S. Securities and Exchange Commission.

What Investors Should Do

1. Analyze the detailed breakdown of intangible asset amortization for the next five years.
2. Review the notes pertaining to goodwill impairment and operating lease transactions.
3. Examine any disclosed executive compensation structures and performance targets.

Glossary

Intangible Assets

Assets that lack physical substance but have value. (Amortization of these assets impacts future expenses and profitability.)

Goodwill Impairment Loss

A reduction in the carrying value of goodwill when its fair value falls below its book value. (Indicates a potential overpayment for acquisitions or a decline in the acquired business's value.)

Operating Lease Transactions

Lease agreements where the lessor retains ownership of the asset, and the lessee uses it for a specified period. (Represents significant financial commitments and liabilities for the lessee.)

Year-Over-Year Comparison

This filing is the 20-F for the fiscal year ended December 31, 2023, providing updated financial and operational information compared to previous filings.

Filing Documents

• zk2431275.htm (20-F) — 2946KB
• exhibit_8.htm (EX-8) — 20KB
• exhibit_12-1.htm (EX-12.1) — 11KB
• exhibit_12-2.htm (EX-12.2) — 6KB
• exhibit_13.htm (EX-13) — 6KB
• exhibit_19.htm (EX-19) — 76KB
• exhibit_97-1.htm (EX-97.1) — 55KB
• image0.jpg (GRAPHIC) — 291KB
• image00001.jpg (GRAPHIC) — 6KB
• image00002.jpg (GRAPHIC) — 184KB
• 0001178913-24-001363.txt (&nbsp;) — 13464KB
• itrn-20231231.xsd (EX-101.SCH) — 95KB
• itrn-20231231_cal.xml (EX-101.CAL) — 75KB
• itrn-20231231_def.xml (EX-101.DEF) — 239KB
• itrn-20231231_lab.xml (EX-101.LAB) — 752KB
• itrn-20231231_pre.xml (EX-101.PRE) — 423KB
• zk2431275_htm.xml (XML) — 2376KB

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No TABLE OF CONTENTS USE OF CERTAIN TERMS iv CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS iv ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS 1 ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 1 ITEM 3. KEY INFORMATION 1 A. RESERVED B. CAPITALIZATION AND INDEBTEDNESS 1 C. REASONS FOR THE OFFER AND USE OF PROCEEDS 1 D.

RISK FACTORS

RISK FACTORS 1 ITEM 4. INFORMATION ON THE COMPANY 9 A. HISTORY AND DEVELOPMENT OF THE COMPANY 9 B. BUSINESS OVERVIEW 10 C. ORGANIZATIONAL STRUCTURE 21 D. PROPERTY, PLANTS AND EQUIPMENT 21 ITEM 4A. UNRESOLVED STAFF COMMENTS 23 ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS 23 A. OPERATING RESULTS 23 B. LIQUIDITY AND CAPITAL RESOURCES 31 C. RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES 34 D. TREND INFORMATION 34 E. OFF-BALANCE SHEET ARRANGEMENTS 34 ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 35 A. DIRECTORS AND SENIOR MANAGEMENT 35 B. COMPENSATION 39 C. BOARD PRACTICES 43 D. EMPLOYEES 47 E. SHARE OWNERSHIP 49 i ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 50 A. MAJOR SHAREHOLDERS 50 B. RELATED PARTY TRANSACTIONS 52 C. INTERESTS OF EXPERTS AND COUNSEL 56 ITEM 8. FINANCIAL INFORMATION 56 A. CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION 56 B. SIGNIFICANT CHANGES 57 ITEM 9. THE OFFER AND LISTING 57 A. OFFER AND LISTING DETAILS 57 B. PLAN OF DISTRIBUTION 57 C. MARKETS 57 D. SELLING SHAREHOLDERS 57 E.

DILUTION

DILUTION 57 F. EXPENSES OF THE ISSUE 57 ITEM 10. ADDITIONAL INFORMATION 57 A. SHARE CAPITAL 57 B. MEMORANDUM AND ARTICLES OF ASSOCIATION 57 C. MATERIAL CONTRACTS 65 D. EXCHANGE CONTROLS 65 E. TAXATION 65 F. DIVIDENDS AND PAYING AGENTS 73 G. 73 H. DOCUMENTS ON DISPLAY 73 I. SUBSIDIARY INFORMATION 73 J. ANNUAL REPORT TO SECURITY HOLDERS 73 ii ITEM 11.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 73 ITEM 12. DESCRIPTIONS OF SECURITIES OTHER THAN EQUITY SECURITIES 74 ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 74 ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 74 ITEM 15.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 74 ITEM 16. [RESERVED] 77 ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT 77 ITEM 16B. CODE OF ETHICS 77 ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES 77 ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES 77 ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS 78 ITEM 16F. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT 78 ITEM 16G. CORPORATE GOVERNANCE 78 ITEM 16H. MINE SAFETY DISCLOSURE 78 ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTION THAT PREVENT INSPECTIONS 78 ITEM 16J. Insider Trading Policies 79 ITEM 16K. CYBERSECURITY 79 ITEM 17.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 80 ITEM 18.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 80 ITEM 19. EXHIBITS 81 iii USE OF CERTAIN TERMS As used herein, and unless the context suggests otherwise, the terms "we", "us", "our" or "Ituran" refer to Ituran Location and Control Ltd. and its consolidated subsidiaries. We have prepared our consolidated financial statements in US Dollars. Our consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). All references herein to "dollars" or "$" or "USD" are to United States dollars, and all references to "NIS" are to New Israeli Shekels. CAUTIONARY NOTE REGARDING FORWARDLOOKING STATEMENTS This Annual Report on Form 20-F contains forward-looking of 1934, as amended. The use of the words "projects," "believes," "expects," "may," "plans" or "intends," or words of similar import, identifies a statement as "forward-looking." The forward-looking statements included herein are based on current expectations that involve a number of risks and uncertainties. These forward-looking statements are based on the assumption that we will not lose a significant customer or customers or experience increased fluctuations of demand or rescheduling of purchase orders, that our markets will continue to grow, that our products will remain accepted within their respective markets and will not be replaced by new technology, that competitive conditions within our markets will not change materially or adversely, that we will retain key technical and management personnel, that our forecasts will accurately anticipate market demand, and that there will be no material adverse change in our operations or business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of whic

RISK FACTORS

RISK FACTORS Our business, operating results and financial condition could be seriously harmed due to any of the following risks, among others. If we do not successfully address the risks to which we are subject, we could experience a material adverse effect on our business, results of operations and financial condition and our share price may decline, which may result in a loss of all or part of your investment. We cannot assure you that we will successfully address any of these risks. You should carefully consider the following factors as well as the other information contained in this annual report before making any investment decision with respect to our securities. RISKS RELATED TO OUR BUSINESS Failure to maintain our existing relationships or establish new relationships with insurance companies or car manufacturers could adversely affect our revenues and growth potential. Revenues from our stolen vehicle recovery services, which we refer to as SVR services ("SVR") and automatic vehicle location ("AVL") products, which we refer to as telematics products, are primarily dependent on our relationships with insurance companies and car manufactures in Israel. Insurance companies drive demand for our SVR services and telematics products by encouraging and, in some cases, requiring customers to subscribe to vehicle location services and purchase vehicle location products such as ours. For our subsidiaries in Brazil and Argentina, insurance companies typically enter into written agreements to subscribe to our services and purchase or lease our products directly. Our inability to maintain our existing relationships or establish new relationships with insurance companies could adversely affect our revenues and growth potential. In some of the territories in which we operate, we have business relationships with car manufacturers. Our inability to maintain our existing relationships or establish new relationships with car manufacturers could adversely affect our reven

View Full Filing

View this 20-F filing on SEC EDGAR