Ituran Location and Control Ltd. (NASDAQ:ITRN) Q1 2023 Results Conference Call May 24, 2023 9:00 AM ET

Company Participants

Kenny Green - EK Global IR

Eyal Sheratzky - CEO

Eli Kamer - CFO

Conference Call Participants

Chris Reimer - Barclays

Sasha Karim - IPI

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Ituran First Quarter 2023 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. [Operator Instructions].

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 EK Global Investor Relations 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. Kenny Green of EK Global Investor Relations. Mr. Green, please begin.

Kenny Green

Thank you. Good day to all of you, and welcome to Etalon's conference call to discuss the first quarter 2023 results. I would like to -- I would like to thank each Ituran's management for hosting this conference call.

With me today on the call are Mr. Eyal Sheratzky, CEO; Mr. Udi Mizrahi, Deputy CEO and VP Finance; and Mr. Eli Kamer, CFO of Ituran. Eyal will begin with a summary of the quarter's results, followed by Eli with a summary of the financials. We will then open the call for the question-and-answer session. I would 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 go ahead.

Eyal Sheratzky

Thank you, Kenny. I'd like to welcome all of you to our first quarter 2023 call, and I would like to thank you for joining us today. We are clearly very pleased with our achievements in the first quarter. The year has kicked off with a robust start and the solid subscriber growth we saw throughout 2022.

And now in the first quarter is clearly having a positive impact on our financial performance. In this quarter, we experienced record subscriber revenues with record subscriber gross margins and also saw our highest quarterly net income and EBITDA in over 4 years.

From a strategic perspective, we experienced strong growth in subscribers, adding a net total of 49,000 subscribers, of which 44,000 were from the aftermarket and 5,000 were OEM additions -- as we shared with you last quarter, our expectations for the growth rate in our subscriber base stand up between 180,000 to 200,000 net new subscribers as annually, and we are on track.