XPEL, Inc. (Nasdaq: XPEL) (the "Company"), a global provider of
protective films and coatings, announced results for the third
quarter and first nine months ended September 30, 2020.
Third Quarter 2020 Highlights:
- Revenues increased 29.5% to $46.1 million compared to third
quarter 2019
- Net income grew 46.5% to $6.6 million, or $0.24 per basic and
diluted share, compared to $4.5 million, or $0.16 per basic and
diluted share, in the same quarter of 2019
- EBITDA grew 50.5% to $9.0 million, or 19.5% of revenues
compared to $6.0 million in third quarter 20191
Nine Months Highlights
- Revenues increased 22.0% to $110.3 million compared to the
prior year period
- Net income increased 30.0% to $12.2 million, or $0.44 per basic
and diluted share, compared to $9.4 million, or $0.34 per basic and
diluted share, in the same period of 2019
- EBITDA grew 30.5% to $17.2 million, or 15.6% of revenues, as
compared to $13.2 million in the same prior year period1
Ryan Pape, President and Chief Executive Officer of XPEL,
commented, “We saw solid top and bottom line performance in the
third quarter with almost all of our regions experiencing record
revenue. Third quarter auto sales were relatively strong in most of
the regions in which we operate and there seems to be an increasing
trend toward more vehicle ownership which creates opportunity for
our business. Our third quarter results demonstrate that we are
taking advantage of this opportunity and we are well positioned to
continue to do so in the coming months.”
For the Quarter Ended September 30, 2020:
Revenues. Revenues increased approximately $10.5 million or
29.5% to $46.1 million as compared to $35.6 million in the prior
year.
Gross Margin. Gross margin was 34.8% compared to 34.5% in the
third quarter of 2019.
Expenses. Operating expenses increased slightly to $7.6 million,
but decreased as a percentage of sales to 16.5%, compared to $6.6
million or 18.5% of sales in the prior year period.
Net income. Net income was $6.6 million, or $0.24 per basic and
diluted share versus net income of $4.5 million, or $0.16 per basic
and diluted share in the third quarter of 2019.
EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation,
and Amortization) was $9.0 million, or 19.5% of sales, as compared
to $6.0 million in the prior year1.
For the Nine Months Ended September 30, 2020:
Revenues. Revenues increased approximately $19.9 million or
22.0% to $110.3 million as compared to $90.4 million in the same
period of the prior year.
Gross Margin. Gross margin improved slightly to 34.5% compared
34.3% in the first nine months of 2019.
Expenses. Operating expenses increased to $22.0 million, and
decreased slightly to 20.0% of sales, compared to $18.9 million or
20.9% of sales in the same prior year period.
Foreign Currency Exchange. Foreign Currency Exchange loss
increased to $0.4 million in the nine month period compared to $0.2
million in the same prior period.
Net income. Net income was $12.2 million, or $0.44 per basic and
diluted share versus net income of $9.4 million, or $0.34 per basic
and diluted share in the first nine months of 2019.
EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation,
and Amortization) was $17.2 million, or 15.6% of sales, as compared
to $13.2 million in the same prior year period1.
As of September 30, 2020, XPEL had cash and cash equivalents of
$27.2 million compared to $11.5 million at December 31, 2019.
1 See reconciliation of non-GAAP financial
measures below
Conference Call Information
The Company will host a conference call and webcast on
Wednesday, November 11, 2020, at 11:00 a.m. Eastern Time to discuss
the Company’s results for the third quarter of 2020.
To access the live webcast, please visit the XPEL, Inc. website
at www.xpel.com/investor.
To participate in the call by phone, dial (877) 407-8033
approximately five minutes prior to the scheduled start time.
International callers please dial (201) 689-8033.
A replay of the teleconference will be available until December
11, 2020, and may be accessed by dialing (877) 481-4010.
International callers may dial (919) 882-2331. Callers should use
conference ID: 35824.
About XPEL, Inc.
XPEL is a leading provider of protective films and coatings,
including automotive paint protection film, surface protection
film, automotive and architectural window films, and ceramic
coatings. With a global footprint, a network of trained installers
and proprietary DAP software, XPEL is dedicated to exceeding
customer expectations by providing high-quality products, leading
customer service, expert technical support and world-class
training. XPEL, Inc. is publicly traded on Nasdaq under the symbol
“XPEL.”
Safe harbor statement
This release includes forward-looking statements regarding XPEL,
Inc. and its business, which may include, but is not limited to,
anticipated use of proceeds from capital transactions, expansion
into new markets, and execution of the company's growth strategy.
Often, but not always, forward-looking statements can be identified
by the use of words such as "plans," "is expected," "expects,"
"scheduled," "intends," "contemplates," "anticipates," "believes,"
"proposes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
"may," "could," "would," "might" or "will" be taken, occur or be
achieved. Such statements are based on the current expectations of
the management of XPEL. The forward-looking events and
circumstances discussed in this release may not occur by certain
specified dates or at all and could differ materially as a result
of known and unknown risk factors and uncertainties affecting the
company, performance and acceptance of the company's products,
economic factors, competition, the equity markets generally and
many other factors beyond the control of XPEL. Although XPEL has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results to differ from those
anticipated, estimated or intended. No forward-looking statement
can be guaranteed. Except as required by applicable securities
laws, forward-looking statements speak only as of the date on which
they are made and XPEL undertakes no obligation to publicly update
or revise any forward-looking statement, whether as a result of new
information, future events, or otherwise.
XPEL Inc.
Condensed Consolidated
Statements of Income (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020
2019
2020
2019
Revenue
Product revenue
$
39,528,383
$
30,815,251
$
94,240,296
$
77,295,463
Service revenue
6,594,413
4,802,747
16,076,821
13,142,135
Total revenue
46,122,796
35,617,998
110,317,117
90,437,598
Cost of Sales
Cost of product sales
28,369,882
22,283,771
67,687,991
56,522,834
Cost of service
1,723,082
1,061,197
4,563,329
2,865,641
Total cost of sales
30,092,964
23,344,968
72,251,320
59,388,475
Gross Margin
16,029,832
12,273,030
38,065,797
31,049,123
Operating Expenses
Sales and marketing
2,326,900
1,805,038
6,989,678
5,468,980
General and administrative
5,289,277
4,798,833
15,038,140
13,466,690
Total operating expenses
7,616,177
6,603,871
22,027,818
18,935,670
Operating Income
8,413,655
5,669,159
16,037,979
12,113,453
Interest expense
68,368
23,851
173,480
81,631
Foreign currency exchange loss
709
136,951
420,427
151,859
Income before income taxes
8,344,578
5,508,357
15,444,072
11,879,963
Income tax expense
1,736,330
999,072
3,250,780
2,503,365
Net income
6,608,248
4,509,285
12,193,292
9,376,598
Income attributed to non-controlling
interest
—
6,602
—
9,311
Net income attributable to stockholders
of the Company
$
6,608,248
$
4,502,683
$
12,193,292
$
9,367,287
Earnings per share attributable to
stockholders of the Company
Basic and diluted
$
0.24
$
0.16
$
0.44
$
0.34
Weighted Average Number of Common
Shares
Basic and diluted
27,612,597
27,612,597
27,612,597
27,612,597
XPEL Inc.
Condensed Consolidated Balance
Sheets
(Unaudited)
(Audited)
September 30, 2020
December 31, 2019
Assets
Current
Cash and cash equivalents
$
27,224,471
$
11,500,973
Accounts receivable, net
8,967,710
7,154,084
Inventory, net
18,961,093
15,141,153
Prepaid expenses and other current
assets
2,803,733
2,391,340
Income tax receivable
—
93,150
Total current assets
57,957,007
36,280,700
Property and equipment, net
4,591,787
4,014,653
Right-of-Use lease assets
5,100,499
5,079,110
Intangible assets, net
4,510,161
3,820,460
Other assets
478,291
—
Goodwill
3,559,614
2,406,512
Total assets
$
76,197,359
$
51,601,435
Liabilities
Current
Current portion of notes payable
$
2,554,529
$
462,226
Current portion lease liabilities
1,326,466
1,126,701
Accounts payable and accrued
liabilities
16,692,018
10,197,353
Income tax payable
326,590
—
Total current liabilities
20,899,603
11,786,280
Deferred tax liability, net
851,329
604,715
Non-current portion of lease
liabilities
3,826,003
4,009,949
Non-current portion of notes payable
4,193,436
307,281
Total liabilities
29,770,371
16,708,225
Stockholders’ equity
Preferred stock, $0.001 par value;
authorized 10,000,000; none issued and outstanding
—
—
Common stock, $0.001 par value;
100,000,000 shares authorized; 27,612,597 issued and
outstanding
27,613
27,613
Additional paid-in-capital
10,412,471
11,348,163
Accumulated other comprehensive loss
(801,266
)
(908,764
)
Retained earnings
36,788,170
24,594,878
46,426,988
35,061,890
Non-controlling interest
—
(168,680
)
Total stockholders’ equity
46,426,988
34,893,210
Total liabilities and stockholders’
equity
$
76,197,359
$
51,601,435
Reconciliation of Non-GAAP Financial Measure
EBITDA is a non-GAAP financial measure. EBITDA is defined as net
income (loss) plus interest expense, net, plus income tax expense
plus depreciation expense and amortization expense. EBITDA should
be considered in addition to, not as a substitute for, or superior
to, financial measures calculated in accordance with GAAP. It is
not a measurement of our financial performance under GAAP and
should not be considered as alternatives to revenue or net income,
as applicable, or any other performance measures derived in
accordance with GAAP and may not be comparable to other similarly
titled measures of other businesses. EBITDA has limitations as an
analytical tool and you should not consider it in isolation or as a
substitute for analysis of our operating results as reported under
GAAP.
EBITDA does not reflect the impact of certain cash charges
resulting from matters we consider not to be indicative of ongoing
operations and other companies in our industry may calculate EBITDA
differently than we do, limiting its usefulness as a comparative
measure.
EBITDA Reconciliation
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2020
2019
2020
2019
Net Income
$
6,608,248
$
4,509,285
$
12,193,292
$
9,376,598
Interest
68,368
23,851
173,480
81,631
Taxes
1,736,330
999,072
3,250,780
2,503,365
Depreciation
325,643
234,297
889,820
655,385
Amortization
239,571
199,582
705,692
570,954
EBITDA
$
8,978,160
$
5,966,087
$
17,213,064
$
13,187,933
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version on businesswire.com: https://www.businesswire.com/news/home/20201111005227/en/
Investor Relations: John Nesbett/Jennifer Belodeau IMS Investor
Relations Phone: (203) 972-9200 Email:
jnesbett@institutionalms.com
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