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. |
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Condensed Consolidated Statements of Income (Unaudited) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2021 |
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2020 |
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2021 |
|
2020 |
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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 |
|
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|
|
|
|
|
|
|
|
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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 |
|
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|
|
|
|
|
|
|
|
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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 |
|
|||||
|
|
|
|
|
|
|
|
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Interest expense |
46,433 |
|
|
68,368 |
|
|
143,092 |
|
|
173,480 |
|
|||||
Foreign currency exchange loss |
148,825 |
|
|
709 |
|
|
121,531 |
|
|
420,427 |
|
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|
|
|
|
|
|
|
|
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Income before income taxes |
10,172,011 |
|
|
8,344,578 |
|
. |
31,322,078 |
|
|
15,444,072 |
|
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Income tax expense |
1,841,250 |
|
|
1,736,330 |
|
|
5,958,709 |
|
|
3,250,780 |
|
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Net income |
8,330,761 |
|
|
6,608,248 |
|
. |
25,363,369 |
|
|
12,193,292 |
|
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|
|
|
|
|
|
|
|
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Earnings per share |
|
|
|
|
|
|
|
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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 |
|
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XPEL, Inc. |
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Condensed Consolidated Balance Sheets |
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(Unaudited) |
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(Audited) |
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|
September 30, 2021 |
|
December 31, 2020 |
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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 |
|
|
|
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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) |
|
|
|
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Stockholders’ equity |
|
|
|
||||
Preferred stock, $0.001 par value; authorized 10,000,000;
|
— |
|
|
— |
|
||
Common stock, $0.001 par value; 100,000,000 shares authorized;
|
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 |
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|
(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 |
|
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Depreciation |
455,792 |
|
|
325,643 |
|
|
1,258,489 |
|
|
889,820 |
|
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Amortization |
734,963 |
|
|
239,571 |
|
|
1,420,347 |
|
|
705,692 |
|
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EBITDA |
$ |
11,409,199 |
|
|
$ |
8,978,160 |
|
|
$ |
34,144,006 |
|
|
$ |
17,213,064 |
|
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View source version on businesswire.com: https://www.businesswire.com/news/home/20211109005709/en/
Investor Relations:
John Nesbett/Jennifer Belodeau
IMS Investor Relations
Phone: (203) 972-9200
Email: [email protected]
Source: XPEL, Inc.