EX-99.1 2 pressreleasedatednovember9.htm EX-99.1 Document
Ex. 99.1
XPEL Reports Revenue of $68.5 Million in Third Quarter 2021; Net Income of $8.3 Million


San Antonio, TX – November 9, 2021 – 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, 2021.

Third Quarter 2021 Highlights:

•Revenues increased 48.6% to $68.5 million compared to third quarter 2020. Organic revenue growth was 38.4%

•Net income grew 26.1% to $8.3 million, or $0.30 per basic and diluted share, compared to $6.6 million, or $0.24 per basic and diluted share, in the same quarter of 2020. Excluding acquisition integration and other one-time costs, net income increased 35.0% to $8.9 million or $0.32 per basic and diluted share.

•EBITDA grew 27.1% to $11.4 million, or 16.6% of revenues compared to $9.0 million, or 19.5% of sales in third quarter 2020.1 Excluding acquisition integration and other one-time costs, EBITDA grew 35.1% to $12.1 million, or 17.7% of revenue.

First Nine Months Highlights:

•Revenues increased 71.4% to $189.1 million as compared to $110.3 million in the prior year period

•Net income increased by 108.0% to $25.4 million, or $0.92 per basic and diluted share, compared to $12.2 million, or $0.44 per basic and diluted share, in the same period of 2020

•EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew 98.4% to $34.1 million, or 18.1% of revenues, as compared to $17.2 million, or 15.6% in the same prior year period1

For the Quarter Ended September 30, 2021:

Revenues. Revenues increased approximately $22.4 million, or 48.6%, to $68.5 million as compared to $46.1 million in the prior year.

Gross Margin. Gross margin was 35.7% compared to 34.8% in the third quarter of 2020.

Expenses. Operating expenses increased to $14.1 million, or 20.6% of sales, compared to $7.6 million, or 16.5% of sales in the prior year period.

Net income. Net income was $8.3 million, or $0.30 per basic and diluted share, versus net income of $6.6 million, or $0.24 per basic and diluted share in the third quarter of 2020.

EBITDA. EBITDA was $11.4 million, or 16.6% of sales, compared to $9.0 million, or 19.5% of sales in the prior year1.
For the Nine Months Ended September 30, 2021:

Revenues. Revenues increased approximately $78.8 million, or 71.4%, to $189.1 million as compared to $110.3 million in the same period of the prior year.



Gross Margin. Gross margin was 35.9% compared to 34.5% in the first nine months of 2020.

Expenses. Operating expenses increased to $36.4 million, or 19.2% of sales, compared to $22.0 million, or 20.0%, of sales in the same prior year period.

Net income. Net income was $25.4 million, or $0.92 per basic and diluted share, versus net income of $12.2 million, or $0.44 per basic and diluted share in the first nine months of 2020.

EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $34.1 million, or 18.1% of sales, compared to $17.2 million, or 15.6% of sales in the same prior year period1.

Conference Call Information

The Company will host a conference call and webcast today, November 9, 2021 at 11:00 a.m. Eastern Time to discuss the Company’s third quarter 2021 results.

To access the live webcast, please visit the XPEL, Inc. website at www.xpel.com/investor.

To participate in the call by phone, dial (888) 506-0062 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0011. Callers should use access code: 191451

A replay of the teleconference will be available until December 9, 2021 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 43286.


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”.


1 See reconciliation of non-GAAP financial measures below



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.

For more information, contact:
Investor Relations:
John Nesbett/Jennifer Belodeau
IMS Investor Relations
Phone: (203) 972-9200
Email: jnesbett@institutionalms.com




XPEL, Inc.
Condensed Consolidated Statements of Income (Unaudited)

Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
Revenue
Product revenue$56,996,265 $39,528,383 $160,594,932 $94,240,296 
Service revenue11,532,658 6,594,413 28,536,076 16,076,821 
Total revenue68,528,923 46,122,796 189,131,008 110,317,117 
Cost of Sales
Cost of product sales39,700,627 28,369,882 111,839,485 67,687,991 
Cost of service4,373,741 1,723,082 9,303,309 4,563,329 
Total cost of sales44,074,368 30,092,964 121,142,794 72,251,320 
Gross Margin24,454,555 16,029,832 67,988,214 38,065,797 
Operating Expenses
Sales and marketing4,903,846 2,326,900 12,978,369 6,989,678 
General and administrative9,183,440 5,289,277 23,423,144 15,038,140 
Total operating expenses14,087,286 7,616,177 36,401,513 22,027,818 
Operating Income10,367,269 8,413,655 31,586,701 16,037,979 
Interest expense46,433 68,368 143,092 173,480 
Foreign currency exchange loss148,825 709 121,531 420,427 
Income before income taxes10,172,011 8,344,578 31,322,078 15,444,072 
Income tax expense1,841,250 1,736,330 5,958,709 3,250,780 
Net income8,330,761 6,608,248 25,363,369 12,193,292 
Earnings per share
Basic$0.30 $0.24 $0.92 $0.44 
Diluted$0.30 $0.24 $0.92 $0.44 
Weighted Average Number of Common Shares
Basic27,612,597 27,612,597 27,612,597 27,612,597 
Diluted27,613,124 27,612,597 27,612,773 27,612,597 





XPEL, Inc.
Condensed Consolidated Balance Sheets

(Unaudited)(Audited)
September 30, 2021December 31, 2020
Assets
Current
Cash and cash equivalents$7,816,332 $29,027,124 
Accounts receivable, net14,324,671 9,944,213 
Inventory, net39,554,300 22,364,126 
Prepaid expenses and other current assets3,459,643 1,441,749 
Income tax receivable839,305 — 
Total current assets65,994,251 62,777,212 
Property and equipment, net8,662,924 4,706,248 
Right-of-Use lease assets11,785,675 5,973,702 
Intangible assets, net21,575,724 5,423,980 
Other non-current assets637,662 486,472 
Goodwill15,747,077 4,472,217 
Total assets$124,403,313 $83,839,831 
Liabilities
Current
Current portion of notes payable$424,610 $2,568,172 
Current portion lease liabilities2,908,492 1,650,749 
Accounts payable and accrued liabilities31,654,155 16,797,462 
Income tax payable— 183,961 
Total current liabilities34,987,257 21,200,344 
Deferred tax liability, net1,049,433 627,806 
Other long-term liabilities720,777 729,408 
Non-current portion of lease liabilities9,084,258 4,331,214 
Non-current portion of notes payable154,763 3,568,191 
Total liabilities45,996,488 30,456,963 
Commitments and Contingencies (Note 11)
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 outstanding27,613 27,613 
Additional paid-in-capital10,489,295 10,412,471 
Accumulated other comprehensive (loss) income(350,021)66,215 
Retained earnings68,239,938 42,876,569 
Total stockholders’ equity78,406,825 53,382,868 
Total liabilities and stockholders’ equity$124,403,313 $83,839,831 




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)(Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Net Income$8,330,761 $6,608,248 $25,363,369 $12,193,292 
Interest46,433 68,368 143,092 173,480 
Taxes1,841,250 1,736,330 5,958,709 3,250,780 
Depreciation455,792 325,643 1,258,489 889,820 
Amortization734,963 239,571 1,420,347 705,692 
EBITDA$11,409,199 $8,978,160 $34,144,006 $17,213,064