Home Financial Record XPEL Announces Record Revenue of $71.9 Million in the First Quarter of 2022; Revenue growth 38.6%; Gross margin 38.6%

XPEL Announces Record Revenue of $71.9 Million in the First Quarter of 2022; Revenue growth 38.6%; Gross margin 38.6%

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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.

XPEL, INC.

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

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

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]