XPEL Reports Record Revenue of $71.9 Million in First Quarter 2022; Revenue Growth 38.6%; Gross Margin 38.6%
XPEL, Inc. reported a robust first quarter for 2022 with revenues rising by 38.6% to a record $71.9 million, compared to $51.9 million in the same period last year. Gross margin reached 38.6%, a record for the company, while net income increased 14.0% to $7.8 million, or $0.28 per share. EBITDA grew 29.6% to $11.9 million, reflecting strong retail demand despite inventory constraints. The company navigated challenges including impacts from COVID-19 and new car inventory shortages, but remains optimistic about future performance.
- Revenues increased 38.6% to a record $71.9 million.
- Gross margin improved to 38.6%, a new high for the company.
- Net income grew 14.0% to $7.8 million or $0.28 per share.
- EBITDA rose 29.6% to $11.9 million.
- Operating expenses increased to $17.7 million, or 24.6% of sales, compared to 18.8% of sales in the prior year.
First Quarter 2022 Highlights:
-
Revenues increased
38.6% to a record in the first quarter.$71.9 million
-
Gross margin percentage improved to
38.6% in the first quarter, a new high for the Company.
-
Net income grew
14.0% to , or$7.8 million per share, compared to$0.28 , or$6.8 million per share, in the same quarter of 2021.$0.25
-
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) grew
29.6% to , or$11.9 million 16.5% of revenues compared to in first quarter 2021.1$9.2 million
-
Adjusting for costs associated with the Company’s
Dealer Conference , which did not occur in 2021 due to COVID-19, EBITDA would have grown38.2% to or$12.7 million 17.6% of revenues and net income would have grown23.2% to , or$8.4 million per share.$0.30
For the Quarter Ended
Revenues. Revenues increased approximately
Gross Margin. Gross margin was
Expenses. Operating expenses increased to
Net income. Net income was
EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was
1 See reconciliation of non-GAAP financial measures below
Conference Call Information
The Company will host a conference call and webcast today,
To access the live webcast, please visit the
To participate in the call by phone, dial (877) 545-0320 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0002. Callers should use access code: 822049.
A replay of the teleconference will be available until
About
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.
Safe harbor statement
This release includes forward-looking statements regarding
|
||||||
Condensed Consolidated Statements of Income (Unaudited) |
||||||
|
(Unaudited) |
|||||
|
Three Months Ended
|
|||||
|
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 |
|
|
|
|||
Cost of product sales |
|
38,193,987 |
|
|
31,546,547 |
|
Cost of service |
|
5,953,347 |
|
|
2,033,136 |
|
Total cost of sales |
|
44,147,334 |
|
|
33,579,683 |
|
Gross Margin |
|
27,716,433 |
|
|
18,286,431 |
|
|
|
|
|
|||
Operating Expenses |
|
|
|
|||
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 Income |
|
10,035,922 |
|
|
8,547,110 |
|
|
|
|
|
|||
Interest expense |
|
219,726 |
|
|
52,719 |
|
Foreign currency exchange loss |
|
5,126 |
|
|
35,612 |
|
|
|
|
|
|||
Income before income taxes |
|
9,811,070 |
|
|
8,458,779 |
|
Income tax expense |
|
2,007,938 |
|
|
1,611,720 |
|
Net income |
|
7,803,132 |
|
|
6,847,059 |
|
|
|
|
|
|||
Earnings per share |
|
|
|
|||
Basic |
$ |
0.28 |
|
$ |
0.25 |
|
Diluted |
$ |
0.28 |
|
$ |
0.25 |
|
Weighted Average Number of Common Shares |
|
|
|
|||
Basic |
|
27,612,597 |
|
|
27,612,597 |
|
Diluted |
|
27,612,597 |
|
|
27,612,597 |
|
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
|
(Unaudited) |
|
(Audited) |
|||||
|
|
|
2021 |
|||||
Assets |
|
|
|
|||||
Current |
|
|
|
|||||
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 |
|
|
Right-of-use lease assets |
|
14,443,369 |
|
|
|
12,909,607 |
|
|
Intangible assets, net |
|
31,977,505 |
|
|
|
32,732,771 |
|
|
Other non-current assets |
|
851,431 |
|
|
|
790,339 |
|
|
|
|
25,614,110 |
|
|
|
25,655,428 |
|
|
Total assets |
$ |
188,261,337 |
|
|
$ |
161,014,517 |
|
|
Liabilities |
|
|
|
|||||
Current |
|
|
|
|||||
Current portion of notes payable |
$ |
351,674 |
|
|
$ |
375,413 |
|
|
Current portion lease liabilities |
|
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 |
|
|
Borrowings on line of credit |
|
33,000,000 |
|
|
|
25,000,000 |
|
|
Non-current portion of lease liabilities |
|
10,790,979 |
|
|
|
9,830,128 |
|
|
Non-current portion of notes payable |
|
— |
|
|
|
75,717 |
|
|
Total liabilities |
|
96,020,869 |
|
|
|
76,552,436 |
|
|
Commitments and Contingencies (Note 11) |
|
|
|
|||||
Stockholders’ equity |
|
|
|
|||||
Preferred stock, |
|
— |
|
|
|
— |
|
|
Common stock, |
|
27,613 |
|
|
|
27,613 |
|
|
Additional paid-in-capital |
|
10,651,532 |
|
|
|
10,581,483 |
|
|
Accumulated other comprehensive loss |
|
(685,240 |
) |
|
|
(590,446 |
) |
|
Retained earnings |
|
82,246,563 |
|
|
|
74,443,431 |
|
|
Total stockholders’ equity |
|
92,240,468 |
|
|
|
84,462,081 |
|
|
Total liabilities and stockholders’ equity |
$ |
188,261,337 |
|
|
$ |
161,014,517 |
|
|
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
|
|||||
|
2022 |
|
2021 |
|||
Net Income |
|
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 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220510005456/en/
Investor Relations:
IMS Investor Relations
Phone: (203) 972-9200
Email: xpel@imsinvestorrelations.com
Source:
FAQ
What were XPEL's revenues for the first quarter of 2022?
How much did XPEL's net income grow in Q1 2022?
What was XPEL's gross margin for the first quarter of 2022?
What challenges did XPEL face in Q1 2022?