Ituran Location and Control Ltd Announces Distribution of a Dividend
Ituran Location and Control Ltd. announced that the Board of Directors approved the distribution of a cash dividend in the amount of $0.14 per share, totaling approximately US$3 million. The dividend will be paid to shareholders of record as of June 29, 2021. The Company will pay the dividend out on July 14, 2021 net of taxes at the rate of 25%.
In its decision to approve the distribution of the cash dividend, the Board of Directors examined whether the Company meets the distribution criteria according to Israeli law. The Board of Directors concluded that the abovementioned distribution will not undermine the Company’s ability to keep performing in its current course of business or future plans, and is able to meet its undertakings when due.
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Retained earnings as of March 31, 2021, prior to the distribution was US$125.8 million and retained earnings will reach US$122.8 million after the distribution. The Board of Directors emphasized that as of March 31, 2021, the Company had a cash balance in hand of US$64.1 million (this amount is prior to the payment of a dividend of US$10 million which was issued for the year 2020 and was paid out in April 2021). The Company also had long-term debt of US$24.6 million and credit from banking institutions of US$ 17.2 million. As of March 31, 2021, the Company’s current assets (excluding cash and cash equivalents) were in the sum of US$106.1 million and current liabilities were in the sum of US$116.5 million.