EX-99.1 2 pressreleasedatedfebruary2.htm EX-99.1 Document
Ex. 99.1
XPEL Reports Record Revenue of $70.1 Million in Fourth Quarter 2021; Fourth Quarter Revenue Increase of 44.3%; Full Year Revenue Increase of 63.1%


San Antonio, TX – February 28, 2022 – XPEL, Inc. (Nasdaq: XPEL) (the "Company"), a global provider of protective films and coatings, announced results for the fourth quarter and year ended December 31, 2021.

Fourth Quarter 2021 Highlights:

•Revenue increased 44.3% to $70.1 million compared to fourth quarter 2020. Organic revenue growth was 27.0%.

•EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew 23.7% to $10.0 million, or 14.2% of revenue compared to $8.1 million, or 16.6% of revenue in fourth quarter 2020.1


Year End 2021 Highlights:

•Revenue increased 63.1% to $259.3 million as compared to $158.9 million in the prior year. Organic revenue growth was 52.9%.

•Net income increased by 72.7% to $31.6 million, or $1.14 per basic and diluted share, compared to $18.3 million, or $0.66 per basic and diluted share, in 2020.

•EBITDA grew 74.5% to $44.1 million, or 17.0% of revenue, as compared to $25.3 million, or 15.9% in the prior year.1

In the quarter, the Company incurred negative operating margin impacts of $1.8 million in higher labor costs in its acquired Dealership Services division due to low new car inventory and $0.8 million in one-time costs resulting from inventory availability pursuant to a facility move which will reverse in 2022. Normalizing for these items, EBITDA would have been $12.6 million or 18% of revenue and gross margin as a percent of revenue would have been 38.9%.

Ryan Pape, President and Chief Executive Officer of XPEL, commented, “We are really proud of what has been an amazing year for the entire XPEL team. In addition to achieving record growth, we closed and integrated seven acquisitions that will set us up for success in 2022 particularly as new car inventory rebuilds through the year.”

For the Quarter Ended December 31, 2021:

Revenue. Revenue increased approximately $21.5 million, or 44.3%, to $70.1 million as compared to $48.6 million in the fourth quarter of the prior year.

Gross Margin. Gross margin was 35.2% compared to 32.8% in the fourth quarter of 2020.

Expenses. Operating expenses increased to $16.2 million, or 23.0% of revenue, compared to $8.6 million, or 17.7% of revenue in the prior year period.

Net income. Net income was $6.2 million, or $0.22 per basic and diluted share, versus net income of $6.1 million, or $0.22 per basic and diluted share in the fourth quarter of 2020.

EBITDA. EBITDA was $10.0 million, or 14.2% of revenue, compared to $8.1 million, or 16.6% of revenue in the fourth quarter of the prior year.1



For the Year Ended December 31, 2021:

Revenue. Revenue increased approximately $100.3 million, or 63.1%, to $259.3 million as compared to $158.9 million in the prior year.

Gross Margin. Gross margin was 35.7% compared to 34.0% for full year 2020.

Expenses. Operating expenses increased to $52.6 million, or 20.3% of revenue, compared to $30.7 million, or 19.3%, of revenue in full year 2020.

Net income. Net income was $31.6 million, or $1.14 per basic and diluted share, versus net income of $18.3 million, or $0.66 per basic and diluted share in full year 2020.

EBITDA. EBITDA was $44.1 million, or 17.0% of revenue, compared to $25.3 million, or 15.9% of revenue in the prior year.1

Conference Call Information

The Company will host a conference call and webcast today, February 28, 2022 at 11:00 a.m. Eastern Time to discuss the Company’s fourth quarter and year end 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: 930015.

A replay of the teleconference will be available until March 30, 2022 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 44592.


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.
Consolidated Statements of Income

(Unaudited)
Three Months Ended December 31,		Year Ended December 31,
202120202019202120202019
Revenue
Product revenue$56,687,599 $42,021,771 $34,909,276 $217,282,531 $136,262,067 $112,204,739 
Service revenue13,444,470 6,585,560 4,586,007 41,980,546 22,662,381 17,728,142 
Total revenue70,132,069 48,607,331 39,495,283 259,263,077 158,924,448 129,932,881 
Cost of Sales
Cost of product sales39,446,147 30,814,288 25,785,422 151,285,632 98,502,279 82,308,256 
Cost of service5,997,149 1,833,831 1,252,725 15,300,458 6,397,160 4,118,366 
Total cost of sales45,443,296 32,648,119 27,038,147 166,586,090 104,899,439 86,426,622 
Gross Margin24,688,773 15,959,212 12,457,136 92,676,987 54,025,009 43,506,259 
Operating Expenses
Sales and marketing5,294,828 2,758,614 2,115,397 18,273,197 9,748,292 7,584,377 
General and administrative10,865,027 5,868,645 5,367,845 34,288,171 20,906,785 18,834,535 
Total operating expenses16,159,855 8,627,259 7,483,242 52,561,368 30,655,077 26,418,912 
Operating Income8,528,918 7,331,953 4,973,894 40,115,619 23,369,932 17,087,347 
Interest expense159,582 76,000 15,015 302,674 249,480 96,646 
Foreign currency exchange loss (gain)251,443 (104,334)(111,586)372,974 316,093 40,273 
Income before income taxes8,117,893 7,360,287 5,070,465 39,439,971 22,804,359 16,950,428 
Income tax expense1,914,400 1,271,888 451,991 7,873,109 4,522,668 2,955,356 
Net income6,203,493 6,088,399 4,618,474 31,566,862 18,281,691 13,995,072 
Income attributed to non-controlling interest— — 8,136 — — 17,447 
Net income attributable to stockholders of the Company$6,203,493 $6,088,399 $4,610,338 $31,566,862 $18,281,691 $13,977,625 
Earnings per share attributable stockholders of the Company
Basic$0.22 $0.22 $0.17 $1.14 $0.66 $0.51 
Diluted$0.22 $0.22 $0.17 $1.14 $0.66 $0.51 
Weighted Average Number of Common Shares
Basic27,612,597 27,612,597 27,612,597 27,612,597 27,612,597 27,612,597 
Diluted27,612,597 27,612,597 27,612,597 27,612,729 27,612,597 27,612,597 













XPEL, Inc.
Consolidated Balance Sheets

December 31, 2021December 31, 2020
Assets
Current
Cash and cash equivalents$9,644,248 $29,027,124 
Accounts receivable, net13,159,036 9,944,213 
Inventory, net51,936,164 22,364,126 
Prepaid expenses and other current assets3,671,657 1,441,749 
Income tax receivable617,141 — 
Total current assets79,028,246 62,777,212 
Property and equipment, net9,898,126 4,706,248 
Right-of-use lease assets12,909,607 5,973,702 
Intangible assets, net32,732,771 5,423,980 
Other non-current assets790,339 486,472 
Goodwill25,655,428 4,472,217 
Total assets$161,014,517 $83,839,831 
Liabilities
Current
Current portion of notes payable$375,413 $2,568,172 
Current portion of lease liabilities2,977,794 1,650,749 
Accounts payable and accrued liabilities32,914,615 16,797,462 
Income tax payable— 183,961 
Total current liabilities36,267,822 21,200,344 
Deferred tax liability, net2,748,283 627,806 
Other long-term liabilities2,630,486 729,408 
Borrowings on line of credit25,000,000 — 
Non-current portion of lease liabilities9,830,128 4,331,214 
Non-current portion of notes payable75,717 3,568,191 
Total liabilities76,552,436 30,456,963 
Commitments and Contingencies (Note 15)
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-capital10,581,483 10,412,471 
Accumulated other comprehensive (loss) income(590,446)66,215 
Retained earnings74,443,431 42,876,569 
Total stockholders’ equity84,462,081 53,382,868 
Total liabilities and stockholders’ equity$161,014,517 $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)
Three Months Ended December 31,		Year Ended December 31,
202120202019202120202019
Net Income$6,203,493 $6,088,399 $4,618,474 $31,566,862 $18,281,691 $13,995,072 
Interest159,582 76,000 15,015 302,674 249,480 96,646 
Taxes1,914,400 1,271,888 451,991 7,873,109 4,522,668 2,955,356 
Depreciation628,559 384,275 260,533 1,887,048 1,274,095 915,918 
Amortization1,080,273 250,245 210,151 2,500,620 955,937 781,105 
EBITDA$9,986,307 $8,070,807 $5,556,164 $44,130,313 $25,283,871 $18,744,097