Q4 2023 Ituran Location and Control Ltd Earnings Call

[music] visibility.

Operator: Ctrl-V Ladies and gentlemen, thank you for standing by. The conference will begin shortly. Ladies and gentlemen, thank you for standing by. Welcome to the Ituran fourth quarter and full year 2023 results conference call. All participants are present in listen-only mode.

Thank you.

Sure.

Thank you.

[music].

Ladies and gentlemen, thank you for standing by the conference will begin shortly.

[music].

Operator: 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 ekglobalinvestorelations at 1-212-378-8040 or view it in the news section of the company's website, www.ituran.co.il. I will now hand over the call to Mr. Ehud Helft of EK Global Investor Relations. Mr. Helft, would you like to begin?

Ladies and gentlemen, thank you for standing by welcome to the <unk> to run fourth quarter and full year 2023 results conference call. All participants are 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 call.

Prince Please press Star Zero as a reminder, this conference is being recorded you should have all received by now the Companys press release, if you have not received it please contact <unk> Investor Relations team at 8-K Global Investor Relations at one to one to $3 788040 or view it in the.

Ehud Helft: Thank you, operator. Good day to all of you and welcome to the Ituran conference call. Discuss the fourth quarter and full year 2023 results. I would like to thank Ituran management for hosting this call. With me today on the call are Mr. Eyal Sheratzky, CEO; Mr. Udi Mizrahi, Deputy CEO, MVP Finance; and Mr. Eli Kamer, CFO. 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 that the safe harbor in the press release also covers the content of this conference. And now, Eyal, would you like to begin, please? Thank you, Ehud.

New section of the company's website Www Daddy to run that C. O Dot IL I will now hand over the call to Mr. Ehud Helft of Ek Global Investor Relations. Mr. Health would you like to begin.

Thank you operator, good day to all of you in one country, we surround conference call.

To discuss the fourth quarter and full year 2023 results I.

I would like to thank each one management for hosting this call.

With me today on the corner and Mr. Ashok <unk> CEO <unk> <unk> deputy.

Deputy CEO, and VP finance and Mr. Eddie come our CFO.

The other one did you with a summary of the quarter results followed by early with a summary of the finishes.

We'll then open the call for questions and answer session.

I'd like to remind everyone that the safe Harbor in the press release also counted the content of this conference call.

And would you like to begin please thank you I would like to welcome all of you to our fourth quarter and full year 2023 call and I'd like to thank you for joining us today.

Eyal Sheratzky: I would like to welcome all of you to our fourth quarter and full year 2023 call. I would like to thank you for joining us. We are pleased with our 2023 results, which was a record year for Ituran. We are all the more pleased given that we achieved these strong results despite a difficult fourth quarter in which our country faced a major terrorist attack at the start of the quarter, which resulted in a war which effectively paused the economy for a few weeks. This new challenge is followed by many challenges that everyone has faced over the past few years, including the corona virus, supply chain issues, and recently a slowing global economy.

We are pleased with our 2023 results, which was a record year for it to them.

We are all the more pleased given that.

We achieved these strong results despite difficult fourth quarter in which our country faced a major terrorist attack.

Start of the quarter, which resulted in a war, which effectively pause the economy for a few weeks.

This new challenge followed by many challenges that everyone has faced over the past few years, including the Corona pandemic supply chain issues and recently a slowing global economy.

Eyal Sheratzky: As our strong financial results demonstrate, our business is in very good shape and resilient against challenges. I want to also highlight, as part of the reason for these lines, Ituran is a global, diverse business based on a loyal subscriber base of more than 2.2 million customers, primarily in Israel and Brazil but also in many other countries in Latin America. The initial impact of the war on new car sales in Israel, which drives our new subscribers in that country and aftermarket product sales, temporarily caused a complete pause in the local car market. However, this pause was relatively short lived.

As our strong financial results demonstrate our business is in very good shape and resigned against challenges.

I want to also highlight as part of the reason Paul is lines.

To run as a global IP.

<unk> business based on a loyal subscriber base of more than $2 2 million customers.

Similarly in Israel, and Brazil, but also in many other countries in Latin America.

As well as elsewhere in the world and therefore any impact in one specific region, we let a limited effect on it runs over all business.

The initial impact of the war on new car sales in Israel, which drives our new subscribers in that country and aftermarket product sales temporarily caused a complete pause in the local car market. However, disposables relatively short lived.

Eyal Sheratzky: And as of the end of January 2024, new car sales in Israel continued at a former long-term trend, and new car sales were up 3% year over year. Our subscriber base continues to show strong growth, adding 42,000 subscribers in the quarter, well ahead of our expectations of between 30,000 and 35,000 that we shared with you last quarter. This is still well in advance of the long-term rate we had in 2021 and earlier of between $20,000 and $25,000 per quarter. Overall, as you can imagine, we are pleased with our relative strength in Q4, and furthermore, the overall picture in 2023 is very strong. Looking at our balance sheet strengths, we ended the quarter with over $50 million in net cash and almost no debt.

As of end of January 2024, New car sales in Israel continue are there for.

A long term trend and new car sales were up 3% year over year.

Our subscriber base continued to show strong growth, adding 42000 subscribers in the quarter well ahead of our expectations of between 30 and 35000 that we shared with you last quarter.

This is still well in advance of the long term rate, we had in 2021 in Italy.

Between 20, and 25000 a quarter.

Overall as you can imagine we are pleased with our relative strengths in Q4 and Furthermore, the overall picture in 2023 is very strong.

Looking at our balance sheet strength, we ended the quarter with over $50 million in net cash was almost no debt.

Eyal Sheratzky: Given our ongoing growth, our solid profitability, our strong cash generation each quarter and our strong net cash level for the second quarter in a row, we have decided to increase the dividend. Last quarter, we increased the ongoing dividend from $3 million to $5 million per quarter, and this quarter we are further increasing the quarterly dividend to $8 million per quarter. We are very pleased to share the fruits of our success, and we see our dividend, as well as our ongoing buyback program, as a reward to our loyal shareholders for their long-term support.

Given our ongoing growth our solid profitability, our strong cash generation each quarter and our strong net cash level for the second quarter and the role we have decided to increase the dividend.

Last quarter, we increased the ongoing dividends from 3 million to $5 million per quarter and this quarter. We are further increasing the quarterly dividend to $8 million per quarter.

We are very pleased to share the fruits of our success and we see our dividend as well as our ongoing buyback program as a reward to our loyal shareholders for their long term support.

Eyal Sheratzky: Starting from 2024, given the stability of our business and our ability to continue performing even during challenging times, we have decided to provide EBITDA Guidance A. For 2024, we currently expect to report full-year EBITDA of between $90 and $95 million and expect to cross the $100 million EBITDA landmark in 2025. We expect subscriber growth to continue growing at around the current rate of approximately 35,000 to 40,000 net new subscribers per quarter. I note that these expectations are as of today.

Of our company.

Starting from 2024, given the stability of our business and our ability to continue performing even during challenging times, we have decided to provide EBITDA guidance.

For 2024, we currently expect to report full year EBITDA of between 90 and $95 million and expect to cross the $100 million EBITDA landmark in 2025.

We expect the subscriber growth to continue growing at around the current rate of approximately 35 to 40000 net new subscribers per quarter.

I note that the expectation.

Of today, our EBITDA expectations are based on the relevant currency levels remaining at around current average rates and also assumes that current global macroeconomic situation globally and political situations specific fee in Israel doesn't significantly worsening.

Eyal Sheratzky: Our EBITDA expectations are based on the relevant currency levels remaining at around current average rates and also assume that the current global macroeconomic situation, globally and political situation, specifically in Israel, doesn't exist. In summary, 2023 was a solid year of performance for Ituran in all respects, and we believe that 2024 will continue on this trend. I want to add that I am very proud of the courage and commitment of the Ituran team, both in Israel and globally, especially in the challenging times we have had recently, and wish to personally thank them for their resilience and dedication during this time, as has been true throughout our long history and will continue to be true over the long term. Our constantly growing subscriber growth will continue to translate into increased revenues with faster-growing profitability over the long term due to the operating leverage inherent to And with that, I hand over to Eli. Eli, please go ahead.

In summary, 2023 was a solid year of performance for it to run in all respects and we believe that 2024 will continue on this trend.

I want to add that I'm very proud of the courage and commitment of each run team both in Israel and globally, especially in this challenging time, we have heard recently and wish to personally thank them for their resilience and dedication during these times.

As has been true throughout our long history, and we'll continue add over the long term.

Our consistently growing subscriber growth will continue to translate into increased revenues with faster growing profitability over the long term due to the operating leverage inherent to our business.

And with that I hand over to Eric Elliott. Please go ahead.

Eli Kamer: Thanks, Eyal. I will provide a short summary of the financial results. You can find the more detailed results that we issued in the press release earlier today. Saltwater revenues were $77.8 million, a 4% increase compared with revenues of $74.9 million last year.

Thanks.

I will provide a short summary of the financial results you can find the more detailed results that we issued in the press release earlier today.

Fourth quarter revenues were $77 8, million% to 4% increase compared with revenue of $74 $9 million last year.

Eli Kamer: Fort Worth revenue was somewhat impacted by the outbreak of war in Israel on October 7th. Furthermore, the revenue, demonstrated, denominated in U.S. dollar terms, was impacted by a significant devaluation of the Argentinian peso as well as the temporary weakness in the Israeli shekel against the U.S. dollar during the quarter. In local currency terms, fourth-quarter revenues grew by 6% compared with the fourth quarter of last year. Revenues from subscription fees in the quarter were $59.4 million. An increase of 10% over the fourth quarter 2022 revenue. In local currency terms, the increase was 12% compared with that. Product revenues in the quarter were $18.4 million, a decrease of 13% year-over-year, and in local currency terms, product revenues decreased by 9% year-over-year. The decline in product revenue was mainly due to the thousands of hardware installations in Israel following the outbreak of war on October 7th.

Fourth quarter revenue was somewhat impacted by that out grateful wore in Israel on October seven.

Furthermore, the revenue and demonstrate.

Nominated in U S. Dollar terms was impacted by the significant devaluation of their GTS Danville as well as the temporary.

Temporary weakness in the Israeli shekel against the U S dollar you enter quarter.

In local currency terms fourth quarter revenues grew by 6% compared with that of the fourth quarter of last year.

Revenues from subscription fees and the quarter were 50.

$9 $4 million, an increase of 10% over the fourth quarter 2022 revenues in local currency terms.

The increase was 12% compared with that of the fourth quarter of last year.

Product revenues in the quarter were $18 $4 million, a decrease of 13% year over year in local currency terms product revenue decreased by 9% year over year.

The decline in product revenue was mainly due to the thousand hubs hardware and installation in Israel. Following the outbreak of war.

Tim.

Eli Kamer: Revenues for full year 2023 were a record $320 million. 2,093,000, $1,093.1 million reported in 2020. Revenues from subscription fees were a record, $2 million 34.5 million dollars, representing an increase of 12% over 2020 2022 product revenues were at 85.4 million dollars, representing The subscriber base expanded to 2,252,000 by year-end, an increase of 42,000 from the end of the previous quarter and 186,000 over 2020. During the fourth quarter, there was an increase of 38,000 net in the aftermarket subscriber base and an increase of 4,000 net in the OEM The geographic breakdown of revenues in the fourth quarter was as follows: Israel 47%, Brazil 28%, and the rest of the world 25%.

Revenues for full year 'twenty two 'twenty three we're at record.

$320 million.

9% increase over the two.

93.

<unk> thousand and $93 $1 million reported in 2022.

Revenues from subscription fees were a record.

2 million and $34 $5 million, representing an increase of 12% over 2020, 2022 product revenues were 80, $85 4 million, representing an increase of 2% compared with 28 22.

The subscriber base expanded to $2 million 262000 by year end marketing an increase of 42000 from the end of the previous quarter and 186000 over 2023.

During the fourth quarter. There was an increase of 38000 net in the after market subscriber base and an increase of 4000 net in the OEM subscriber base.

The geographic breakdown revenues in the fourth quarter was as follows Israel, 47%, Brazil, 28% rest of 425%.

Yeah.

Eli Kamer: EBITDA for the quarter was $21.9 million, or 28.2% of revenue. This was an increase of 7% compared with EBITDA of $20.6 million, or 27.4% of revenue, in the fourth quarter of last year. In local currency terms, Q4 IBIDA grew by 8% compared with that in the fourth quarter of last year.

EBITDA for the quarter was $21 9 million.

Or 28, 2% of revenues, an increase of 7% compared with EBITDA of $28 6 million or 27, 4% of revenues in the fourth quarter of last year.

Local currency trends fourth quarter, EBITDA grew by 8% compared with that of the fourth quarter of last year.

Eli Kamer: EBITDA for 2023 was a record $87 million or 27.2% of revenues, an increase of 10% compared to 78%. Ctrl Ctrl V. Net income for the fourth quarter was $12 million or diluted earnings per share, an increase of 26% compared to $9.6 million of the looted earnings per share of 47%. Ctrl Ctrl V. In local currency terms, pop water net income grew by 28% year-over-year. Net income in 2023 was $48.1 million, or fully diluted earnings per share of $2.40, an increase of 30% compared with net income of $37.1 million, or fully diluted earnings per share of $1.82 in 2021. Cashflow from operations for the fourth quarter of 2023 was $21.8 million; cash flow from operations for the year was $77.2 million.

EBITDA for 2023 was a record $87 million or 27, 2% of revenues, an increase of 10% compared to $78.

$9 million or 26, 9% of revenues in 2022.

Net income for the fourth quarter was $12 million or dilutive earnings per share of <unk>.

Okay.

60.

And an increase of 26% compared to $9 6 million or diluted earnings per share of 47%.

In the fourth quarter of last year.

In local currency terms fourth quarter net income grew by 28% year over year.

Net income in 2023 was $48 1 million or fully diluted earnings per share of $2.40, an increase of 30% compared with net income of $37 1 million or.

Fully diluted earnings per share of $1.82 in 2022.

Cash flow from operations for the fourth quarter of 2023 was 21 $8 million.

Cash flow from operations for the year was $77 2 million.

Eli Kamer: As of December 31, 2023, the company had cash including multiple security of $53.6 million and a debt of $0.6 million amounting to a net cash position of $53 million. This is compared with cash including multiple securities of $28.2 million and a debt of $12.2 million amounting to a net cash position of $16 million as of December 31, 2022. The Board of Directors announced another increase in the quarterly dividend policy. This follows the company's continuing strong profitability, ongoing positive cash flow, and strong balance sheet. The company increased the quarterly dividend to $8 million from $5 million in the previous quarter and from $3 million in the eight quarters period prior to that.

As of December 31, 2023, the company had cash, including marketable securities of $53 6 million and a depth of six.

$6 million.

Amounting to a net cash position of $53 million.

This is compared with cash, including marketable securities of $28 2 million and a depth of $12 2 million amounting to a net cash position of $16 million.

At the end of 2022.

The board of directors announced another increase in the quarter and the dividend policy.

This follows the company's continued strong profitability ongoing positive cash flow and strong balance sheets.

The company increased the quarterly dividend to $8 million from $5 million in the prior quarter.

Quarter end from $3 million and the eight quarters previous to that.

Eli Kamer: This represents a 60% increase in the ongoing quarterly dividend payment compared with that of the period quarter and 167% increase over the dividend phase in the many quarters period to that. During 2023, Ituran bought back $6.6 million worth of shares, as part of its buyback program. As of December 31, 2023, there is $6.7 million remaining under the buyback program. Shared repurchases are funded by available cash and repurchase, to run ordinary shares under SEC rule 10B-18 terms.

This represents a 60% increase in the ongoing quarterly dividend payments compared with that of the period quarter and 167% increase over the dividend paid in the many quarters period to that.

During 2023 into one and bought back $6 6 million share.

As part of its buyback program as of December 31st 2023, there is $6 $7 million remaining under the buyback broker.

Share repurchases are funded by available cash cash and repurchased on its run ordinary shares under SEC rules can be dash 18th.

Operator: And with that, I'd like to open the call or the question and answer session, operator. Thank you. Ladies and gentlemen, at this time, we will begin the question and answer session. If you have a question, please press star 1. If you wish to cancel your request, please press star 2. If you are using speaker equipment, kindly lift the handset before pressing the numbers.

And with that I'd like to open the call quite ask the question and answer session operator.

Thank you.

Ladies and gentlemen at this time, we will begin the question and answer session. If you have a question. Please press star one.

You wish to cancel your request. Please press star two if you are using speaker equipment currently with the handset before pressing the numbers youre questions will be pulled in the order. They are received please standby while we poll for your.

Operator: Your questions will be polled in the order they are received. Please stand by while we poll for your questions. The first question is from Chris Reimer of Barclays. Please go ahead.

Questions. The first question is from Chris Reimer of Barclays. Please go ahead.

Chris Reimer: Hi, thanks for taking my questions. I was wondering, first off, if you could talk about some of the drivers behind subscriber guidance and maybe what are some of the dynamics you're seeing in the different geographies? [inaudible] The main drivers today are coming from, I would say, different sources in different segments. First of all, in Israel.

Hi, Thanks for taking my questions I was wondering first off if you could talk about some of the drivers behind the subscriber guidance and maybe what are some of the dynamics youre seeing in the different geographies.

The main drivers today are coming from our I would say different driver in different segments first of all in Israel.

Eyal Sheratzky: The cause of rape, It started in 2023, and it continues as we face it every night, I would say, and in that case, it means that... More insurance companies and more car owners are looking for security systems, and since our solution, Ctrl-V, has won the things that we are more and more focused on, B2B, such as financial institutions for having a solution when they provide loans to new car buyers as well as security needs So this is the main point. Great, thanks. And just touching on the EBITDA guidance you gave forward for 2025 at about, well, surpassing $100 million, would, how much, how many sub-ads would that be roughly based on?

The cost of freight is.

Increasing.

Started during 2023 and is continue.

As we face it every night I would say and in that case, it's mean that.

More.

Insurance companies and more car owners are looking for security systems and since our solution.

<unk> is the most excess ones. So we get more and more request for a new subscribers. This is in Israel.

The other.

Other countries are.

We.

Have one that seems to be a more and more focus on our b to b such as the.

Such as the financial institutions for.

Having a solution when they provide the loans to new car buyers as well as security needs, which also.

There is a increase in wellness and costs have also in Latin America. So this is the main drivers.

Great. Thanks, and just touching on the EBIT guidance, you gave for 2025 at about well surpassing $100 million.

How much how many sub adds or would that be roughly based on.

Eyal Sheratzky: Ctrl-V, What we've shown in the last two years and what we expect in 2024. Generally speaking, it's around 150,000, 10% more or less, and while we're considering this number of subscribers, we're assuming that the output is not going to change dramatically because some of the services that we provide are generating lower output, but on the other hand, we increase a lot of upsells. For example, in Israel, when we sell SVR, which is, let's call it, this is the traditional and the bread and butter, still a very high percentage of those customers are adding, for example, application payments, and in that case, output in Israel is growing. So overall, we consider conservatively that the output will stay and with this number of subscribers, and by the way, add to this the operating leverage assumptions. We are not expecting that the growth of our expenses will decrease, let's say, every year. The additional expenses will decrease every year, so we can build this model to provide this guidance.

Yeah.

Uh huh.

What actually we show in the last two years and what we expect in 2024.

Generally speaking is around 150000% to 10% more or less in a wildly considering this a number of subscribers is assuming that the output is not going to change dramatically because some of the services that we provide.

Are generating lower our pool, but on the other end we.

Increased a lot of up sales for example are in Israel, when we sell our SVR, which is let's call. It. This is the traditional and the bread and butter still a very high percentage of those customers are adding for example application their payments and in that case they are pool.

In Israel is growing so overall, we consider conservatively that the alpha will stay in with this number of subscribers and by the way as to this operating leverage assumptions, we are not expecting that the growth of our expenses.

It will be.

It will decrease let's say every week the additional expenses will decrease every year. So we can build this model to provide this guidance.

Chris Reimer: Got it. Thanks. That's very helpful. That's it for me.

Got it. Thanks, that's very helpful. That's it for me.

Boris Schneider: The next question is from Boris Schneider of Moore. Please go ahead. Hi guys, congratulations on strong execution, and we appreciate it. The guidance that you provided is a great help for long-term investors as well. Ehud Helft, Kenny Green, Chris Reimer, Eyal Sheratzky, Sasha Kamer, Eyal Sheratzky, Ituran Loc. As you can see, when we talked last quarter about the war, www.youtube.com.com www.patreon.com, Today, of course, we don't. Most of it we don't have. Okay, and in terms of guidance, your subscription guidance mentioned roughly 6%. I think that's at the lower end. And if I look at the everyday guidance, it's lower still.

The next question is from Boris Schneider of Moore. Please go ahead.

Hi, guys congratulations on solid execution.

And.

I appreciate it.

The guidance that you provided I think that's a great help for long term investors as well.

A question on terms in terms of expenses that flow through your <unk>.

Mentioned that you had some.

And one off expenses related to the events in Israel. So if you can quantify the number I know you said, it's not very significant but just to understand what's being.

Net income this quarter.

Hum.

As you can see we actually when we are.

Talked last quarter about the war actually we expected, though we put in a frame in a little bit more expenses in a little bit more.

And let's say a decreasing in sales in Israel, but generally speaking without giving the specific number because it's not material anyway talking about us.

Hundreds of thousands of dollars.

And the expenses, which.

Our directly for contribution to the needs.

In Israel for the war.

Today of course, we don't.

Most of it we don't have it anymore.

Okay and in terms of guidance so your subscription guidance.

Mentioned, the roughly 6% I think that's at the lower end.

And.

If I look at the EBITDA guidance.

The lower.

Eyal Sheratzky: So, my question is obviously the model, your financial, and your business model is based on operating leverage, and quite a significant one. So, the guidance appears to be quite conservative; what do you think about this? [inaudible] First of all, we have to understand that there is no zero cost, because part of this we talk about here, when we say the number about 160,000, we're talking about the net. Don't forget that we have a Ctrl C and then the churn, what we Provided the net is after the churn. This is the first thing to understand. So in terms of growth, it's a very high growth rate, but there is a chance. We guard the coast for two reasons.

So my question is obviously the model your financial business model is based on the operating leverage and quite significant one.

So it does that is appears to be quite conservative.

But what do you think.

Yeah.

First of all.

We have to understand that there's no zero cost because part of our part of this we talk here when we say the number about 160000 I'm talking about the net.

Don't forget that our we have a.

Total sales and did the trend what we are.

Provide us a net is after the chair this is first.

Understand so in terms of growth is a very high growth, but there is a true.

In regard to cost from two reasons. One is the conservative reason and second is because in order to grow 160000, net still it's not zero cost.

Eyal Sheratzky: One is the conservative reason, and the second is because in order to grow 160,000 net, it's still not zero cost. In some places, we are financing the hardware which is part of the service, and it's appearing there. The amortization and also, from time to time, we have to provide a direct solution to specific customers, so we have to add R&D. So practically, you write that it appears to be higher growth in ibida, which will be more... More correlative to the growth of subscribers. I believe that, or I want it to be higher, but when we provide guidance, we have to be conservative with the guidance.

Some places we are financing the hardware, which is part of the service and it's a peer in the game in the.

Now most of the amortization and also we from time to time, we have to to provide a direct a solution to specific customers. So we had we have to add R&D. So practically.

Hum.

You're right that Ah <unk> appear to be higher growth in the EBITDA, which will be more.

Maura.

Correlative to the growth of subscribers.

I believe that I want it to be higher but when we provide guidance we have to be conservative with the guidance. So.

Yes.

This is the main very helpful. I appreciate it thank you.

Abba Horovitz: [inaudible] The next question is from Abba Borowicz of OSP. Please go ahead. Hi, good afternoon.

The next question is from Bob <unk>.

OSP. Please go ahead.

Hi, good afternoon, congratulations on the very nice quarter, and just all the all around guidance.

Abba Horovitz: Congratulations on a very nice quarter and just all the all-around guidance. I just wanted to know if you could update us on B.R.I.N.G. It's been a while since we heard about B.R.I.N.G.

I just wanted to know if you could update us from paying its been awhile since we've heard about bring.

You could maybe talk about if there's any anything new to share.

Usually when we spoke to about to bring since it's a kind of a financial financially holding.

Eyal Sheratzky: If you could maybe talk about if there's anything new to share. I usually do when we speak about Brinks since it's a kind of financial financial round, very impressive round, and Brink raised more than 100 million dollars. Since then, the company doesn't need... do another round. So this is why we didn't inform anything, because from the operational side, a point of view, we are not allowed since we have only 17%, but the company has its business plan. It looks like it's a stick to the business, and things are going as planned. Okay, very good. Are you guys looking at any other investments outside of your own stock? No, uh, except, uh, except, uh, bring, which also, in the last, I think, more than seven years, we didn't invest; we did only invest as an angel.

We have 17%.

From the shareholders. It was when we did the rounds, we know that.

About two years ago, we made the.

Very impressive round.

When the brain raised.

More than the $100 million.

Since then the company doesn't need to do another round. So this is why we didn't inform anything because from an operational point of view. We are not allowed since we have only 17%, but the companies are hesitant to say business plan and needs.

Uh huh.

Like it's a stick to the business, saying that things are going as planned.

Okay very good are you guys looking at any other investments outside of your own stock.

No.

Except except bring which are also in the last I think more than seven years, we didn't invest.

Invest we did only investment as an engine.

Yeah.

Eyal Sheratzky: Ituran is a... always investing only in companies that are in our field, and in the last five years, we have done it, or we will do it, when we acquired RoadTrak, or in the future, when we go for a full acquisition again to create synergy and part of the consolidation results. So bring is actually bring and save everyone as the only... Ctrl-V, Okay, thanks very much. If there are any additional questions, please press star 1. If you wish to cancel your request, please press star 2. Please stand by while we ask you more questions.

Ron is.

Always investing only in our companies which is.

In our field and the in the last five years, we are doing it or we will.

We did it when we acquired road track or in the future. When we go for a full acquisition again to create synergy and part of consolidation results.

So bring is actually bringing save you one of the only.

<unk> financial holdings that we have today.

Thanks very much.

If there are any additional questions. Please press star one if you wish to cancel your request. Please press star two please standby, while we poll for more questions.

Operator: There are no further questions at this time. Before I ask Mr. Sheratzky to go ahead with his closing statement, I would like to remind participants that a replay of this call will be available tomorrow on Ituran's website, www.ituran.co.il. Mr. Sheratzky, would you like to make your concluding statement? Yes, on behalf of the management of Ituran, I would like to thank you, our shareholders, for your continued interest and long-term support of our... We hope to be speaking with some of you over the coming quarter, and if you are interested in meeting or speaking with us, feel free to reach out to our investor relations department. And with that, we end our call. Thank you. Thank you. This concludes the Turan fourth quarter and full year 2023 results conference call. Thank you for your participation. You may go ahead and disconnect. Thanks for watching!

There are no further questions at this time before I ask Mr. Sharansky to go ahead with its closing statement I would like to remind participants that a replay of this call will be available tomorrow on <unk> website www dot each.

Ron that C O that IL, Mr. <unk> would you like to make his concluding statement.

Yes on behalf of management to put Toronto, we'd like to thank you our shareholders for your continued interest and long term support our business.

We hope to be speaking with some of you over the coming quarter and if you are interested in meeting or speaking with us feel free to reach out to our investor relations team and with that we end our call. Thank you and have a good day.

Thank you. This concludes the two Ron fourth quarter and full year 2023 results conference call. Thank you for your participation you May go ahead and disconnect.

[music].