SAN ANTONIO, May 10, 2022–(BUSINESS WIRE)–XPEL, Inc. (Nasdaq: XPEL), a global provider of protective films and coatings, today announced its results for the first quarter ended March 31, 2022.
Highlights of the first quarter of 2022:
-
Net earnings increased 14.0% to $7.8 million, or $0.28 per share, from $6.8 million, or $0.25 per share, in the same quarter of 2021.
-
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) increased 29.6% to $11.9 million, or 16.5% of revenue, from $9.2 million in the first quarter of 2021.1
-
Including costs associated with the company’s dealer conference, which did not take place in 2021 due to COVID-19, EBITDA would have increased 38.2% to $12.7 million or 17.6% of revenue and net income would have increased 23.2% to $8.4 million or $0.30 per share.
Ryan Pape, President and CEO of XPEL, said, “We delivered a strong first quarter to start 2022, despite continued challenges with new car inventory in the U.S. and the impacts of lockdowns related to the COVID in China. We have taken steps to navigate a unique set of circumstances where we are seeing strong retail demand with concurrent constraints on new car inventory. Despite this unusual environment, we believe we are well positioned to deliver strong results over the coming quarters.
For the quarter ended March 31, 2022:
Revenues. Revenue increased approximately $20.0 million or 38.6% to $71.9 million from $51.9 million in the first quarter last 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 from $9.7 million or 18.8% of sales in the same period last year.
Net revenue. Net income was $7.8 million, or $0.28 per basic and diluted share, compared to net income of $6.8 million, or $0.25 per basic and diluted share in the first quarter 2021.
EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $11.9 million, or 16.5% of sales, compared to $9.2 million, or 17.7% of sales l ‘last year.1.
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 join the call by phone, dial (877) 545-0320 approximately five minutes before the scheduled start time. For international callers, please dial (973) 528-0002. Callers must use the access code: 822049.
A replay of the conference call will be available until June 9, 2022 and can be accessed by dialing (877) 481-4010. International callers can dial (919) 882-2331. Callers should use conference ID: 45329.
About XPEL, Inc.
XPEL is a leading supplier of protective films and coatings, including automotive paint protection films, surface protection films, automotive and architectural window films, and ceramic coatings. With a global footprint, a network of trained installers and proprietary DAP software, XPEL is committed to exceeding customer expectations by providing high quality products, industry-leading customer service, expert technical support and training. world class. XPEL, Inc. is listed on the Nasdaq under the symbol “XPEL”.
Safe Harbor Statement
This release contains forward-looking statements regarding XPEL, Inc. and its business, which may include, but are not limited to, the intended use of proceeds from capital transactions, expansion into new markets, and execution of the business growth strategy. Often, but not always, forward-looking statements can be identified by the use of words such as “anticipates”, “is planned”, “expects”, “is planned”, “intends”, ” contemplates”, “anticipates”, “believes”, “proposes” or variations (including negative variations) of these words and phrases, or states that certain actions, events or results “may”, “could”, “might” , “could” or “will” be taken, occur or be reached. These statements are based on the current expectations of the management of XPEL. The forward-looking events and circumstances described in this release may not occur on certain specified dates or may not occur at all and may differ materially due to known and unknown risk factors and uncertainties affecting the business, performance and acceptance of company products, economic factors, competition, general stock markets, and many other factors beyond XPEL’s control. Although XPEL has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause actual actions, events or results differ from those anticipated, estimated or expected. . No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date they are made, and XPEL undertakes no obligation to publicly update or revise any forward-looking statement, whether whether as a result of new information, future events, or otherwise.
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XPEL, INC. |
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Condensed Consolidated Statements of Income (unaudited) |
||||||
|
(Unaudited) |
||||||
|
Three months completed March, 31st, |
||||||
|
2022 |
2021 |
|||||
|
Revenue |
||||||
|
Product revenue |
$ |
58,097,446 |
$ |
44,931,353 |
||
|
Service revenue |
13,766,321 |
6,934,761 |
||||
|
Total revenue |
71,863,767 |
51 866 114 |
||||
|
Cost of sales |
||||||
|
Product cost of sales |
38,193,987 |
31,546,547 |
||||
|
Service cost |
5,953,347 |
2,033,136 |
||||
|
Total cost of sales |
44,147,334 |
33,579,683 |
||||
|
Gross margin |
27,716,433 |
18,286,431 |
||||
|
Functionnary costs |
||||||
|
Sales and Marketing |
6,311,220 |
3,387,830 |
||||
|
general and administrative |
11,369,291 |
6,351,491 |
||||
|
Total operating expenses |
17,680,511 |
9,739,321 |
||||
|
Operating result |
10,035,922 |
8,547,110 |
||||
|
Interest expense |
219,726 |
52,719 |
||||
|
Exchange loss |
5,126 |
35,612 |
||||
|
income before taxes |
9,811,070 |
8,458,779 |
||||
|
income tax expense |
2,007,938 |
1,611,720 |
||||
|
Net revenue |
7,803,132 |
6,847,059 |
||||
|
Earnings per share |
||||||
|
Basic |
$ |
0.28 |
$ |
0.25 |
||
|
Diluted |
$ |
0.28 |
$ |
0.25 |
||
|
Weighted average number of ordinary shares |
||||||
|
Basic |
27,612,597 |
27,612,597 |
||||
|
Diluted |
27,612,597 |
27,612,597 |
||||
|
XPEL, INC. |
||||||||
|
Condensed consolidated balance sheets |
||||||||
|
(Unaudited) |
(Checked) |
|||||||
|
March 31, 2022 |
The 31st of December, 2021 |
|||||||
|
Assets |
||||||||
|
Fluent |
||||||||
|
Cash and cash equivalents |
$ |
10,595,557 |
$ |
9,644,248 |
||||
|
Accounts receivable, net |
15,178,627 |
13,159,036 |
||||||
|
Inventory, net |
74,486,843 |
51 936 164 |
||||||
|
Prepaid expenses and other current assets |
3,749,690 |
3,671,657 |
||||||
|
Income tax receivable |
— |
617 141 |
||||||
|
Total current assets |
104 010 717 |
79 028 246 |
||||||
|
Property and equipment, net |
11,364,205 |
9,898,126 |
||||||
|
Lease assets with right of use |
14,443,369 |
12,909,607 |
||||||
|
Intangible assets, net |
31,977,505 |
32,732,771 |
||||||
|
Other non-current assets |
851 431 |
790 339 |
||||||
|
Good will |
25,614,110 |
25,655,428 |
||||||
|
Total assets |
$ |
188 261 337 |
$ |
161 014 517 |
||||
|
Passives |
||||||||
|
Fluent |
||||||||
|
Current portion of notes payable |
$ |
351,674 |
$ |
375 413 |
||||
|
Lease liabilities of the current part |
3,732,825 |
2,977,794 |
||||||
|
Accounts payable and accrued liabilities |
42,357,330 |
32,914,615 |
||||||
|
Income tax payable |
656,090 |
— |
||||||
|
Total current liabilities |
47,097,919 |
36,267,822 |
||||||
|
Deferred tax liability, net |
2,702,639 |
2,748,283 |
||||||
|
Other long-term liabilities |
2,429,332 |
2,630,486 |
||||||
|
Line of credit borrowings |
33,000,000 |
25,000,000 |
||||||
|
Non-current portion of rental debts |
10,790,979 |
9,830,128 |
||||||
|
Non-current portion of notes payable |
— |
75,717 |
||||||
|
Total responsibilities |
96 020 869 |
76,552,436 |
||||||
|
Commitments and contingencies (note 11) |
||||||||
|
Equity |
||||||||
|
Preferred shares, par value $0.001; allowed 10,000,000; none issued and outstanding |
— |
— |
||||||
|
Common shares, par value $0.001; 100,000,000 shares authorized; 27,612,597 issued and outstanding |
27,613 |
27,613 |
||||||
|
Premium |
10,651,532 |
10,581,483 |
||||||
|
Accumulated other comprehensive income |
(685,240 |
) |
(590,446 |
) |
||||
|
Retained earnings |
82,246,563 |
74,443,431 |
||||||
|
Full shareholder equity |
92 240 468 |
84,462,081 |
||||||
|
Total Liabilities and Equity |
$ |
188 261 337 |
$ |
161 014 517 |
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Reconciliation of Non-GAAP Financial Measures
EBITDA is a non-GAAP financial measure. EBITDA is defined as net profit (loss) plus interest expense plus income tax expense plus amortization expense and amortization expense. EBITDA should be considered supplemental to, and not a substitute for, or superior to financial measures calculated in accordance with GAAP. It is not a measure of our financial performance under GAAP and should not be considered an alternative to revenue or net income, as applicable, or any other performance measure derived in accordance with GAAP and may not be comparable to similarly titled measures of other companies. . EBITDA has limitations as an analytical tool and you should not consider it in isolation or as a substitute for analyzing our results of operations as reported under GAAP.
EBITDA does not reflect the impact of certain cash charges resulting from matters that we believe are not indicative of ongoing operations and other companies in our industry may calculate EBITDA differently from us, which limits its usefulness as a comparative measure.
|
EBITDA reconciliation (Unaudited) |
||||||
|
Three months completed March, 31st, |
||||||
|
2022 |
2021 |
|||||
|
Net revenue |
7,803,132 |
6,847,059 |
||||
|
Interest |
219,726 |
52,719 |
||||
|
Taxes |
2,007,938 |
1,611,720 |
||||
|
Depreciation |
756,344 |
383,090 |
||||
|
Amortization |
$ |
1,076,466 |
$ |
262,606 |
||
|
EBITDA |
$ |
11,863,606 |
$ |
9,157,194 |
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See the source version on businesswire.com: https://www.businesswire.com/news/home/20220510005456/en/
contacts
Investor Relations:
John Nesbett/Jennifer Belodeau
IMS Investor Relations
Phone: (203) 972-9200
Email: [email protected]