XPEL, Inc. (Nasdaq: XPEL) (the "Company"), a global provider of
protective films and coatings, announced results for the second
quarter and first six months ended June 30, 2021.
Second Quarter 2021 Highlights:
- Revenues increased 92.0% to $68.7 million compared to second
quarter 2020 and increased 32.5% sequentially compared to first
quarter 2021
- Net income grew 156.3% to $10.2 million, or $0.37 per basic and
diluted share, compared to $4.0 million, or $0.14 per basic and
diluted share, in the same quarter of 2020
- EBITDA grew 139.8% to $13.6 million, or 19.8% of revenues
compared to $5.7 million, or 15.8% of sales in second quarter
20201
First Six Months Highlights:
- Revenues increased 87.9% to $120.6 million as compared to $64.2
million in the prior year period
- Net income increased by more than 200% to $17.0 million, or
$0.62 per basic and diluted share, compared to $5.6 million, or
$0.20 per basic and diluted share, in the same period of 2020
- EBITDA grew 176.1% to $22.7 million, or 18.9% of revenues, as
compared to $8.2 million, or 12.8% in the same prior year
period1
For the Quarter Ended June 30, 2021:
Revenues. Revenues increased approximately $32.9 million, or
92%, to $68.7 million as compared to $35.8 million in the prior
year.
Gross Margin. Gross margin was 36.7% compared to 32.8% in the
second quarter of 2020.
Expenses. Operating expenses increased to $12.6 million, or
18.3% of sales, compared to $6.6 million, or 18.4% of sales in the
prior year period.
Net income. Net income was $10.2 million, or $0.37 per basic and
diluted share, versus net income of $4.0 million, or $0.14 per
basic and diluted share in the second quarter of 2020.
EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation,
and Amortization) was $13.6 million, or 19.8% of sales, compared to
$5.7 million, or 15.8% of sales in the prior year1.
1 See reconciliation of non-GAAP financial measures below
For the Six Months Ended June 30, 2021:
Revenues. Revenues increased approximately $56.4 million, or
87.9%, to $120.6 million as compared to $64.2 million in the same
period of the prior year.
Gross Margin. Gross margin was 36.1% compared to 34.3% in the
first six months of 2020.
Expenses. Operating expenses increased to $22.3 million, or
18.5% of sales, compared to $14.4 million, or 22.5%, of sales in
the same prior year period.
Net income. Net income was $17.0 million, or $0.62 per basic and
diluted share, versus net income of $5.6 million, or $0.20 per
basic and diluted share in the first half of 2020.
EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation,
and Amortization) was $22.7 million, or 18.9% of sales, compared to
$8.2 million, or 12.8% of sales in the same prior year period1.
Conference Call Information
The Company will host a conference call and webcast today,
August 9, 2021 at 11:00 a.m. Eastern Time to discuss the Company’s
second 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 (844) 407-9500
approximately five minutes prior to the scheduled start time.
International callers please dial (862) 298-0850.
A replay of the teleconference will be available until September
9, 2021 and may be accessed by dialing (877) 481-4010.
International callers may dial (919) 882-2331. Callers should use
conference ID: 42329.
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
June 30,
Six Months Ended
June 30,
2021
2020
2021
2020
Revenue
Product revenue
$
58,667,314
$
30,961,996
$
103,598,668
$
54,711,913
Service revenue
10,068,657
4,843,862
17,003,417
9,482,408
Total revenue
68,735,971
35,805,858
120,602,085
64,194,321
Cost of Sales
Cost of product sales
40,592,311
22,556,696
72,138,858
39,318,109
Cost of service
2,896,432
1,510,085
4,929,568
2,840,247
Total cost of sales
43,488,743
24,066,781
77,068,426
42,158,356
Gross Margin
25,247,228
11,739,077
.
43,533,659
22,035,965
Operating Expenses
Sales and marketing
4,686,693
1,919,529
8,074,523
4,662,778
General and administrative
7,888,213
4,679,092
14,239,704
9,748,863
Total operating expenses
12,574,906
6,598,621
22,314,227
14,411,641
Operating Income
12,672,322
5,140,456
.
21,219,432
7,624,324
Interest expense
43,940
74,554
96,659
105,112
Foreign currency exchange (gain) loss
(62,906)
4,141
(27,294)
419,718
Income before income taxes
12,691,288
5,061,761
.
21,150,067
7,099,494
Income tax expense
2,505,739
1,088,071
4,117,459
1,514,450
Net income
$
10,185,549
$
3,973,690
.
$
17,032,608
$
5,585,044
Earnings per share
Basic and diluted
$
0.37
$
0.14
$
0.62
$
0.20
Weighted Average Number of Common
Shares
Basic and diluted
27,612,597
27,612,597
27,612,597
27,612,597
XPEL Inc.
Condensed Consolidated Balance
Sheets
(Unaudited)
(Audited)
June 30, 2021
December 31, 2020
Assets
Current
Cash and cash equivalents
$
8,733,902
$
29,027,124
Accounts receivable, net
12,625,703
9,944,213
Inventory, net
25,728,267
22,364,126
Prepaid expenses and other current
assets
3,207,502
1,441,749
Total current assets
50,295,374
62,777,212
Property and equipment, net
7,556,788
4,706,248
Right-of-use lease assets
9,314,337
5,973,702
Intangible assets, net
21,902,077
5,423,980
Other non-current assets
477,920
486,472
Goodwill
15,826,655
4,472,217
Total assets
$
105,373,151
$
83,839,831
Liabilities
Current
Current portion of notes payable
$
513,891
$
2,568,172
Current portion lease liabilities
1,145,724
1,650,749
Accounts payable and accrued
liabilities
21,957,708
16,797,462
Income tax payable
1,382,177
183,961
Total current liabilities
24,999,500
21,200,344
Deferred tax liability, net
646,921
627,806
Other long-term liabilities
865,066
729,408
Non-current portion of lease
liabilities
8,190,262
4,331,214
Non-current portion of notes payable
239,055
3,568,191
Total liabilities
34,940,804
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 income
(loss)
83,086
66,215
Retained earnings
59,909,177
42,876,569
Total stockholders’ equity
70,432,347
53,382,868
Total liabilities and stockholders’
equity
$
105,373,151
$
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 June
30,
Six Months Ended June 30,
2021
2021
2020
2021
2020
Net Income
$
10,185,549
$
3,973,690
$
17,032,608
$
5,585,044
Interest
43,940
74,554
96,659
105,112
Taxes
2,505,739
1,088,071
4,117,459
1,514,450
Depreciation
419,607
293,860
802,697
564,177
Amortization
422,778
232,225
685,384
466,121
EBITDA
$
13,577,613
$
5,662,400
$
22,734,807
$
8,234,904
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version on businesswire.com: https://www.businesswire.com/news/home/20210809005161/en/
Investor Relations: John Nesbett/Jennifer Belodeau IMS Investor
Relations Phone: (203) 972-9200 Email:
jnesbett@institutionalms.com
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