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XPEL Reports Record Revenue in First Quarter 2021 of $51.9 million; First Quarter Revenue Increase of 82.7%

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XPEL, Inc. (Nasdaq: XPEL) (the "Company"), a global provider of protective films and coatings, announced results for the first quarter ended March 31, 2021.

First Quarter 2021 Highlights:

  • Revenues increased 82.7% to $51.9 million compared to first quarter 2020 and increased 6.7% sequentially as compared to fourth quarter 2020.

  • Net income grew 324.9% to $6.8 million, or $0.25 per basic and diluted share, compared to $1.6 million, or $0.06 per basic and diluted share, in the same quarter of 2020.

  • EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) grew 256.0% to $9.2 million, or 17.7% of revenues compared to $2.6 million, or 9.1% in first quarter 2020.1

Ryan Pape, President and Chief Executive Officer of XPEL, commented, "The momentum we saw at the end of last year carried over into 2021 resulting in record top and bottom line performance for the Company. We saw strong growth across all of our regions, particularly in China where we first experienced COVID-19 impact during the first quarter of last year."

For the Quarter Ended March 31, 2021:

Revenues. Revenues increased approximately $23.5 million or 82.7% to $51.9 million as compared to $28.4 million in the first quarter of the prior year.

Gross Margin. Gross margin was 35.3% compared to 36.3% in the first quarter of 2020.

Expenses. Operating expenses increased to $9.7 million, or 18.8% of sales, compared to $7.8 million or 27.5% of sales in the prior year period.

Net income. Net income was $6.8 million, or $0.25 per basic and diluted share versus net income of $1.6 million, or $0.06 per basic and diluted share in the first quarter of 2020.

EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $9.2 million, or 17.7% of sales, as compared to $2.6 million 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 on Monday, May 10, 2021 at 11:00 a.m. Eastern Time to discuss the Company’s first quarter 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) 407-8033 approximately five minutes prior to the scheduled start time. International callers please dial (201) 689-8033.

A replay of the teleconference will be available until June 9, 2021 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 41202.

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.

This press release is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

XPEL, Inc.

Consolidated Statements of Income

(Unaudited)

Three Months Ended

March 31,

2021

2020

Revenue

Product revenue..................................................................................................................

$

44,931,353

$

23,749,917

Service revenue..................................................................................................................

6,934,761

4,638,546

Total revenue................................................................................................................

51,866,114

28,388,463

Cost of Sales

Cost of product sales..........................................................................................................

31,546,547

16,761,413

Cost of service....................................................................................................................

2,033,136

1,330,162

Total cost of sales........................................................................................................

33,579,683

18,091,575

Gross Margin........................................................................................................................

18,286,431

10,296,888

Operating Expenses

Sales and marketing...........................................................................................................

3,387,830

2,743,249

General and administrative................................................................................................

6,351,491

5,069,771

Total operating expenses.......................................................................................

9,739,321

7,813,020

Operating Income.................................................................................................................

8,547,110

2,483,868

Interest expense................................................................................................................

52,719

30,558

Foreign currency exchange loss.......................................................................................

35,612

415,577

Income before income taxes..............................................................................................

8,458,779

2,037,733

Income tax expense..........................................................................................................

1,611,720

426,379

Net income............................................................................................................................

6,847,059

1,611,354

...............................................................................................................................................

Earnings per share

Basic and diluted.............................................................................................................

$

0.25

$

0.06

Weighted Average Number of Common Shares

Basic and diluted.............................................................................................................

27,612,597

27,612,597

XPEL, Inc.

Consolidated Balance Sheets

(Unaudited)

(Audited)

March 31, 2021

December 31, 2020

Assets

Current

Cash and cash equivalents

$

35,615,477

$

29,027,124

Accounts receivable, net

9,903,238

9,944,213

Inventory, net

24,909,271

22,364,126

Prepaid expenses and other current assets

2,121,327

1,441,749

Total current assets

72,549,313

62,777,212

Property and equipment, net

5,711,937

4,706,248

Right-of-Use lease assets

6,792,636

5,973,702

Intangible assets, net

5,287,809

5,423,980

Other non-current assets

487,983

486,472

Goodwill

4,509,419

4,472,217

Total assets

$

95,339,097

$

83,839,831

Liabilities

Current

Current portion of notes payable

$

2,514,391

$

2,568,172

Current portion lease liabilities

1,792,164

1,650,749

Accounts payable and accrued liabilities

21,358,360

16,797,462

Income tax payable

444,437

183,961

Total current liabilities

26,109,352

21,200,344

Other long-term liabilities

676,940

729,408

Deferred tax liability, net

657,210

627,806

Non-current portion of lease liabilities

4,958,742

4,331,214

Non-current portion of notes payable

2,917,061

3,568,191

Total liabilities

35,319,305

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 outstanding

27,613

27,613

Additional paid-in-capital

10,412,471

10,412,471

Accumulated other comprehensive (loss) income

(143,920)

66,215

Retained earnings

49,723,628

42,876,569

Total stockholders’ equity

60,019,792

53,382,868

Total liabilities and stockholders’ equity

$

95,339,097

$

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 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,

2021

2020

Net Income

$

6,847,059

$

1,611,354

Interest

52,719

30,558

Taxes

1,611,720

426,379

Depreciation

383,090

270,317

Amortization

262,606

233,896

EBITDA

$

9,157,194

$

2,572,504

View source version on businesswire.com: https://www.businesswire.com/news/home/20210510005133/en/

Contacts

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