Ituran Location and Control Ltd. (NASDAQ:ITRN) Q3 2022 Earnings Call Transcript

Abba Horwitz: Hi, good afternoon, and thank you for a really good quarter, especially in this tough environment. I wanted to understand next year, 2023, if you could explain what you think perhaps the operating margins will look like, given that there should be certain margin expansion in 2023. I was wondering if you could comment on that.

Eli Kamer: Okay, so first of all, we are not providing of course specific guidance, but I will talk generally. Since we are based on operating leverage model and we are not expecting–again, always there is the unexpected, but we are not expecting to increase our budgets. On the other hand, as we took our–took the right to say that we expect something which is closer to 200,000, 180,000 to 200,000 subscribers, no doubt that we expect based on the model that we will show continuously improving of the margins, of the operating margins. What will be the exact number, we are not providing, and of course it will be a little bit not responsible to do it, but I totally expect that a year from now, we will be able to show higher profit margins.

Abba Horwitz: Okay. Also, is the price for a used car the same as a new car?

Eyal Sheratzky: Yes, historically. Also we talked specifically about the finance segment, at the finance segment it’s a pure B2B market, meaning in the end, the finance bank or the finance company, they are our customer. They decide which of their customers they want to secure the collateral, so it’s a B2B so it’s totally negotiated between two sides. When we talk about the retail market, always we sold old cars and brand-new cars, and the price is usually not dependent on whether it’s used or a new car, it’s dependent on things like, let’s say, we have three or four types of cars not related to whether it’s old delivery or new.

Abba Horwitz: Okay, all right. Thanks and congratulations on a really nice quarter. Thank you.

Eyal Sheratzky: Thank you.

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?

Eyal Sheratzky: 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 business. Have a good day. Goodbye.

Operator: Thank you. This concludes the Ituran third quarter 2022 results conference call. Thank you for your participation. You may go ahead and disconnect.