EX-99.1 2 pressreleasedatedmay102022.htm EX-99.1 Document
EX 99.1
XPEL Reports Record Revenue of $71.9 Million in First Quarter 2022; Revenue Growth 38.6%; Gross Margin 38.6%

San Antonio, TX – May 10, 2022– XPEL, Inc. (Nasdaq: XPEL) a global provider of protective films and coatings, today announced results for the first quarter ended March 31, 2022.

First Quarter 2022 Highlights:

•Revenues increased 38.6% to a record $71.9 million in the first quarter.

•Gross margin percentage improved to 38.6% in the first quarter, a new high for the Company.

•Net income grew 14.0% to $7.8 million, or $0.28 per share, compared to $6.8 million, or $0.25 per share, in the same quarter of 2021.

•EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) grew 29.6% to $11.9 million, or 16.5% of revenues compared to $9.2 million in first quarter 2021.1

•Adjusting for costs associated with the Company’s Dealer Conference, which did not occur in 2021 due to COVID-19, EBITDA would have grown 38.2% to $12.7 million or 17.6% of revenues and net income would have grown 23.2% to $8.4 million, or $0.30 per share.

Ryan Pape, President and Chief Executive Officer of XPEL, commented, “We delivered a strong first quarter to begin 2022, despite on-going challenges with new car inventory in the US and impacts from COVID-related lockdowns in China. We have taken actions to navigate a unique set of circumstances where we're seeing strong retail demand with simultaneous new car inventory constraints. Despite this unusual environment, we believe we are well-positioned to deliver solid results in coming quarters.”


For the Quarter Ended March 31, 2022:

Revenues. Revenues increased approximately $20.0 million or 38.6% to $71.9 million as compared to $51.9 million in the first quarter of the prior year.

Gross Margin. Gross margin was 38.6% compared to 35.3% in the first quarter of 2021.

Expenses. Operating expenses increased to $17.7 million, or 24.6% of sales, compared to $9.7 million or 18.8% of sales in the prior year period.

Net income. Net income was $7.8 million, or $0.28 per basic and diluted share versus net income of $6.8 million, or $0.25 per basic and diluted share in the first quarter of 2021.

EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $11.9 million, or 16.5% of sales, as compared to $9.2 million, or 17.7% of sales in the prior year1.

1 See reconciliation of non-GAAP financial measures below




Conference Call Information

The Company will host a conference call and webcast today, May 10, 2022 at 11:00 a.m. Eastern Time to discuss the Company’s first quarter 2022 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 (877) 545-0320 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0002. Callers should use access code: 822049.

A replay of the teleconference will be available until June 9, 2022 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 45329.

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.



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



XPEL, INC.

Condensed Consolidated Statements of Income (Unaudited)

(Unaudited)
Three Months Ended
March 31,
20222021
Revenue
Product revenue$58,097,446 $44,931,353 
Service revenue13,766,321 6,934,761 
Total revenue71,863,767 51,866,114 
Cost of Sales
Cost of product sales38,193,987 31,546,547 
Cost of service5,953,347 2,033,136 
Total cost of sales44,147,334 33,579,683 
Gross Margin27,716,433 18,286,431 
Operating Expenses
Sales and marketing6,311,220 3,387,830 
General and administrative11,369,291 6,351,491 
Total operating expenses17,680,511 9,739,321 
Operating Income10,035,922 8,547,110 
Interest expense219,726 52,719 
Foreign currency exchange loss5,126 35,612 
Income before income taxes9,811,070 8,458,779 
Income tax expense2,007,938 1,611,720 
Net income7,803,132 6,847,059 
Earnings per share
Basic$0.28 $0.25 
Diluted$0.28 $0.25 
Weighted Average Number of Common Shares
Basic27,612,597 27,612,597 
Diluted27,612,597 27,612,597 






XPEL, INC.

Condensed Consolidated Balance Sheets
(Unaudited)(Audited)
March 31, 2022December 31, 2021
Assets
Current
Cash and cash equivalents$10,595,557 $9,644,248 
Accounts receivable, net15,178,627 13,159,036 
Inventory, net74,486,843 51,936,164 
Prepaid expenses and other current assets3,749,690 3,671,657 
Income tax receivable— 617,141 
Total current assets104,010,717 79,028,246 
Property and equipment, net11,364,205 9,898,126 
Right-of-use lease assets14,443,369 12,909,607 
Intangible assets, net31,977,505 32,732,771 
Other non-current assets851,431 790,339 
Goodwill25,614,110 25,655,428 
Total assets$188,261,337 $161,014,517 
Liabilities
Current
Current portion of notes payable$351,674 $375,413 
Current portion lease liabilities3,732,825 2,977,794 
Accounts payable and accrued liabilities42,357,330 32,914,615 
Income tax payable656,090 — 
Total current liabilities47,097,919 36,267,822 
Deferred tax liability, net2,702,639 2,748,283 
Other long-term liabilities2,429,332 2,630,486 
Borrowings on line of credit33,000,000 25,000,000 
Non-current portion of lease liabilities10,790,979 9,830,128 
Non-current portion of notes payable— 75,717 
Total liabilities96,020,869 76,552,436 
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-capital10,651,532 10,581,483 
Accumulated other comprehensive loss(685,240)(590,446)
Retained earnings82,246,563 74,443,431 
Total stockholders’ equity92,240,468 84,462,081 
Total liabilities and stockholders’ equity$188,261,337 $161,014,517 






Reconciliation of Non-GAAP Financial Measure

EBITDA is a non-GAAP financial measure. EBITDA is defined as net income (loss) plus interest expense 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 March 31,
20222021
Net Income7,803,132 6,847,059 
Interest219,726 52,719 
Taxes2,007,938 1,611,720 
Depreciation756,344 383,090 
Amortization$1,076,466 $262,606 
EBITDA$11,863,606 $9,157,194