XPEL
$71.89
Xpel Technologies
($.54)
(.75%)
Earnings Details
3rd Quarter September 2021
Tuesday, November 9, 2021 8:30:00 AM
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Summary

Xpel Technologies (XPEL) Recent Earnings

Xpel Technologies (XPEL) reported 3rd Quarter September 2021 earnings of $0.32 per share on revenue of $68.5 million. The consensus earnings estimate was $0.31 per share on revenue of $64.4 million. Revenue grew 48.6% on a year-over-year basis.

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.

Results
Reported Earnings
$0.32
Earnings Whisper
-
Consensus Estimate
$0.31
Reported Revenue
$68.5 Mil
Revenue Estimate
$64.4 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

XPEL Reports Revenue of $68.5 Million in Third Quarter 2021; Net Income of $8.3 Million

SAN ANTONIO--(BUSINESS WIRE)--XPEL, Inc. (Nasdaq: XPEL) (the "Company"), a global provider of protective films and coatings, announced results for the third quarter and first nine months ended September 30, 2021.

Third Quarter 2021 Highlights:

  • Revenues increased 48.6% to $68.5 million compared to third quarter 2020. Organic revenue growth was 38.4%
  • Net income grew 26.1% to $8.3 million, or $0.30 per basic and diluted share, compared to $6.6 million, or $0.24 per basic and diluted share, in the same quarter of 2020. Excluding acquisition integration and other one-time costs, net income increased 35.0% to $8.9 million or $0.32 per basic and diluted share.
  • EBITDA grew 27.1% to $11.4 million, or 16.6% of revenues compared to $9.0 million, or 19.5% of sales in third quarter 2020.1 Excluding acquisition integration and other one-time costs, EBITDA grew 35.1% to $12.1 million, or 17.7% of revenue.

First Nine Months Highlights:

  • Revenues increased 71.4% to $189.1 million as compared to $110.3 million in the prior year period
  • Net income increased by 108.0% to $25.4 million, or $0.92 per basic and diluted share, compared to $12.2 million, or $0.44 per basic and diluted share, in the same period of 2020
  • EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew 98.4% to $34.1 million, or 18.1% of revenues, as compared to $17.2 million, or 15.6% in the same prior year period1

For the Quarter Ended September 30, 2021:

Revenues. Revenues increased approximately $22.4 million, or 48.6%, to $68.5 million as compared to $46.1 million in the prior year.

Gross Margin. Gross margin was 35.7% compared to 34.8% in the third quarter of 2020.

Expenses. Operating expenses increased to $14.1 million, or 20.6% of sales, compared to $7.6 million, or 16.5% of sales in the prior year period.

Net income. Net income was $8.3 million, or $0.30 per basic and diluted share, versus net income of $6.6 million, or $0.24 per basic and diluted share in the third quarter of 2020.

EBITDA. EBITDA was $11.4 million, or 16.6% of sales, compared to $9.0 million, or 19.5% of sales in the prior year1.

For the Nine Months Ended September 30, 2021:

Revenues. Revenues increased approximately $78.8 million, or 71.4%, to $189.1 million as compared to $110.3 million in the same period of the prior year.

Gross Margin. Gross margin was 35.9% compared to 34.5% in the first nine months of 2020.

Expenses. Operating expenses increased to $36.4 million, or 19.2% of sales, compared to $22.0 million, or 20.0%, of sales in the same prior year period.

Net income. Net income was $25.4 million, or $0.92 per basic and diluted share, versus net income of $12.2 million, or $0.44 per basic and diluted share in the first nine months of 2020.

EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $34.1 million, or 18.1% of sales, compared to $17.2 million, or 15.6% of sales in the same prior year period1.

Conference Call Information

The Company will host a conference call and webcast today, November 9, 2021 at 11:00 a.m. Eastern Time to discuss the Company’s third quarter 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: 191451

A replay of the teleconference will be available until December 9, 2021 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 43286.

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.

XPEL, Inc.

Condensed Consolidated Statements of Income (Unaudited)

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2021

 

2020

 

2021

 

2020

Revenue

 

 

 

 

 

 

 

Product revenue

$

56,996,265

 

 

$

39,528,383

 

 

$

160,594,932

 

 

$

94,240,296

 

Service revenue

11,532,658

 

 

6,594,413

 

 

28,536,076

 

 

16,076,821

 

Total revenue

68,528,923

 

 

46,122,796

 

 

189,131,008

 

 

110,317,117

 

 

 

 

 

 

 

 

 

Cost of Sales

 

 

 

 

 

 

 

Cost of product sales

39,700,627

 

 

28,369,882

 

 

111,839,485

 

 

67,687,991

 

Cost of service

4,373,741

 

 

1,723,082

 

 

9,303,309

 

 

4,563,329

 

Total cost of sales

44,074,368

 

 

30,092,964

 

 

121,142,794

 

 

72,251,320

 

Gross Margin

24,454,555

 

 

16,029,832

 

.

67,988,214

 

 

38,065,797

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

Sales and marketing

4,903,846

 

 

2,326,900

 

 

12,978,369

 

 

6,989,678

 

General and administrative

9,183,440

 

 

5,289,277

 

 

23,423,144

 

 

15,038,140

 

Total operating expenses

14,087,286

 

 

7,616,177

 

 

36,401,513

 

 

22,027,818

 

 

 

 

 

 

 

 

 

Operating Income

10,367,269

 

 

8,413,655

 

.

31,586,701

 

 

16,037,979

 

 

 

 

 

 

 

 

 

Interest expense

46,433

 

 

68,368

 

 

143,092

 

 

173,480

 

Foreign currency exchange loss

148,825

 

 

709

 

 

121,531

 

 

420,427

 

 

 

 

 

 

 

 

 

Income before income taxes

10,172,011

 

 

8,344,578

 

.

31,322,078

 

 

15,444,072

 

Income tax expense

1,841,250

 

 

1,736,330

 

 

5,958,709

 

 

3,250,780

 

Net income

8,330,761

 

 

6,608,248

 

.

25,363,369

 

 

12,193,292

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

Basic

$

0.30

 

 

$

0.24

 

 

$

0.92

 

 

$

0.44

 

Diluted

$

0.30

 

 

$

0.24

 

 

$

0.92

 

 

$

0.44

 

Weighted Average Number of Common Shares

 

 

 

 

 

 

 

Basic

27,612,597

 

 

27,612,597

 

 

27,612,597

 

 

27,612,597

 

Diluted

27,613,124

 

 

27,612,597

 

 

27,612,773

 

 

27,612,597

 

XPEL, Inc.

Condensed Consolidated Balance Sheets

 

 

(Unaudited)

 

(Audited)

 

September 30, 2021

 

December 31, 2020

Assets

 

 

 

Current

 

 

 

Cash and cash equivalents

$

7,816,332

 

 

$

29,027,124

 

Accounts receivable, net

14,324,671

 

 

9,944,213

 

Inventory, net

39,554,300

 

 

22,364,126

 

Prepaid expenses and other current assets

3,459,643

 

 

1,441,749

 

Income tax receivable

839,305

 

 

 

Total current assets

65,994,251

 

 

62,777,212

 

Property and equipment, net

8,662,924

 

 

4,706,248

 

Right-of-Use lease assets

11,785,675

 

 

5,973,702

 

Intangible assets, net

21,575,724

 

 

5,423,980

 

Other non-current assets

637,662

 

 

486,472

 

Goodwill

15,747,077

 

 

4,472,217

 

Total assets

$

124,403,313

 

 

$

83,839,831

 

Liabilities

 

 

 

Current

 

 

 

Current portion of notes payable

$

424,610

 

 

$

2,568,172

 

Current portion lease liabilities

2,908,492

 

 

1,650,749

 

Accounts payable and accrued liabilities

31,654,155

 

 

16,797,462

 

Income tax payable

 

 

183,961

 

Total current liabilities

34,987,257

 

 

21,200,344

 

Deferred tax liability, net

1,049,433

 

 

627,806

 

Other long-term liabilities

720,777

 

 

729,408

 

Non-current portion of lease liabilities

9,084,258

 

 

4,331,214

 

Non-current portion of notes payable

154,763

 

 

3,568,191

 

Total liabilities

45,996,488

 

 

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

10,489,295

 

 

10,412,471

 

Accumulated other comprehensive (loss) income

(350,021)

 

 

66,215

 

Retained earnings

68,239,938

 

 

42,876,569

 

Total stockholders’ equity

78,406,825

 

 

53,382,868

 

Total liabilities and stockholders’ equity

$

124,403,313

 

 

$

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)

 

(Unaudited)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2021

 

2020

 

2021

 

2020

Net Income

$

8,330,761

 

 

$

6,608,248

 

 

$

25,363,369

 

 

$

12,193,292

 

Interest

46,433

 

 

68,368

 

 

143,092

 

 

173,480

 

Taxes

1,841,250

 

 

1,736,330

 

 

5,958,709

 

 

3,250,780

 

Depreciation

455,792

 

 

325,643

 

 

1,258,489

 

 

889,820

 

Amortization

734,963

 

 

239,571

 

 

1,420,347

 

 

705,692

 

EBITDA

$

11,409,199

 

 

$

8,978,160

 

 

$

34,144,006

 

 

$

17,213,064

 

 

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

Source: XPEL, Inc.