Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries XPEL Reports Record Revenue of $102.7 Million in Third Quarter 2023 By: XPEL, Inc. via Business Wire November 08, 2023 at 08:00 AM EST XPEL, Inc. (Nasdaq: XPEL) a global provider of protective films and coatings, today announced results for the quarter ended September 30, 2023. Third Quarter 2023 Highlights: Revenues increased 14.4% to $102.7 million in the third quarter. Gross margin percentage improved to 40.4% in the third quarter. Net income grew 2.5% to $13.7 million, or $0.49 per share, compared to $13.3 million, or $0.48 per share, in the same quarter of 2022. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) grew 4.1% to $19.7 million, or 19.2% of revenues, compared to $18.9 million in third quarter 2022.1 First Nine Months Highlights: Revenues increased 18.4% to $290.8 million in the first nine months of 2023. Gross margin percentage improved to 41.8% in the first nine months of 2023. Net income grew 23.6% to $40.8 million, or $1.48 per share, compared to $33.0 million, or $1.20 per share, in the first nine months of 2022. EBITDA grew 23.4% to $59.2 million, or 20.4% of revenues compared to $48.0 million in the first nine months of 2022.1 For comparative performance purposes, during the third quarter, the Company incurred approximately $1.0 million in inventory write-offs which negatively impacted gross margin. The Company’s selling, general and administrative expenses were negatively impacted by approximately $0.3 million in executive relocation costs, $0.3 million in acquisition-related legal costs and $0.5 million in R & D related costs. The Company also incurred approximately $0.3 million in negative foreign exchange impact. Normalizing for these items, Adjusted EBITDA would have grown approximately 16.7% with Adjusted EBITDA margin of approximately 21.5% and Adjusted EPS would have been approximately $0.56 per share.1 Ryan Pape, President and Chief Executive Officer of XPEL, commented, “It was a busy and solid quarter for the Company. We continue to see strong demand for our products and services and our unique channel strategy positions us to be wherever that demand takes us.” For the Quarter Ended September 30, 2023: Revenues. Revenues increased approximately $12.9 million, or 14.4%, to $102.7 million as compared to $89.8 million in the third quarter of the prior year. Gross Margin. Gross margin was 40.4% compared to 39.8% in the third quarter of 2022. Expenses. Operating expenses increased to $23.9 million, or 23.3% of sales, compared to $18.5 million, or 20.6% of sales in the prior year period. Net income. Net income was $13.7 million, or $0.49 per basic and diluted share, versus net income of $13.3 million, or $0.48 per basic and diluted share in the third quarter of 2022. EBITDA. EBITDA was $19.7 million, or 19.2% of sales, as compared to $18.9 million, or 21.1% of sales in the prior year.1 For the Nine Months Ended September 30, 2023: Revenues. Revenues increased approximately $45.2 million, or 18.4%, to $290.8 million as compared to $245.5 million in the first nine months of the prior year. Gross Margin. Gross margin was 41.8% compared to 39.3% in the first nine months of 2022. Expenses. Operating expenses increased to $68.7 million, or 23.6% of sales, compared to $53.4 million, or 21.7% of sales in the prior year period. Net income. Net income was $40.8 million, or $1.48 per basic and diluted share, versus net income of $33.0 million, or $1.20 per basic and diluted share in the first nine months of 2022. EBITDA. EBITDA was $59.2 million, or 20.4% of sales, as compared to $48.0 million, or 19.5% of sales in the prior year.1 1See reconciliation of non-GAAP financial measures below. Conference Call Information The Company will host a conference call and webcast today, November 8, 2023 at 11:00 a.m. Eastern Time to discuss the Company’s third quarter 2023 results and conditions, including our fourth quarter outlook. 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: 565846 A replay of the teleconference will be available until December 8, 2023 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 49265. 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. Without limitation, the risks and uncertainties affecting XPEL are described in XPEL’s most recent Form 10-K (including Item 1A Risk Factors) filed with the SEC, which is available on our website at http://www.xpel.com and at http://www.sec.gov. 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) (In thousands except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue Product revenue $ 81,125 $ 72,616 $ 229,339 $ 197,753 Service revenue 21,552 17,142 61,416 47,759 Total revenue 102,677 89,758 290,755 245,512 Expenses Cost of product sales 51,876 47,225 143,613 129,646 Cost of service sales 9,272 6,767 25,660 19,400 Total cost of sales 61,148 53,992 169,273 149,046 Gross Margin 41,529 35,766 121,482 96,466 Operating Expenses Sales and marketing 7,730 6,297 22,554 18,515 General and administrative 16,170 12,162 46,180 34,859 Total operating expenses 23,900 18,459 68,734 53,374 Operating Income 17,629 17,307 52,748 43,092 Interest expense 85 391 946 933 Foreign exchange (loss) gain 398 372 419 833 Income before income taxes 17,146 16,544 51,383 41,326 Income tax expense 3,490 3,226 10,553 8,302 Net income $ 13,656 $ 13,318 $ 40,830 $ 33,024 Earnings per share Basic $ 0.49 $ 0.48 $ 1.48 $ 1.20 Diluted $ 0.49 $ 0.48 $ 1.48 $ 1.20 Weighted Average Number of Common Shares Basic 27,623 27,616 27,620 27,614 Diluted 27,644 27,620 27,634 27,615 XPEL Inc. Condensed Consolidated Balance Sheets (In thousands except per share data) (Unaudited) (Audited) September 30, 2023 December 31, 2022 Assets Current Cash and cash equivalents $ 10,374 $ 8,056 Accounts receivable, net 24,115 14,726 Inventories 92,458 80,575 Prepaid expenses and other current assets 11,091 3,464 Total current assets 138,038 106,821 Property and equipment, net 15,690 14,203 Right-of-use lease assets 14,014 15,309 Intangible assets, net 29,461 29,294 Other non-current assets 971 972 Goodwill 28,602 26,763 Total assets $ 226,776 $ 193,362 Liabilities Current Current portion of notes payable $ — $ 76.60 Current portion of lease liabilities 3,650 3,885 Accounts payable and accrued liabilities 42,059 22,970 Income tax payable 836 470 Total current liabilities 46,545 27,402 Deferred tax liability, net 1,205 2,049 Other long-term liabilities 950 1,070 Borrowings on line of credit 0 26,000 Non-current portion of lease liabilities 11,523 12,119 Total liabilities 60,223 68,640 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; 27,628,953 and 27,616,064 issued and outstanding, respectively 28 28 Additional paid-in-capital 12,050 11,073 Accumulated other comprehensive loss (2,179 ) (2,203 ) Retained earnings 156,654 115,824 Total stockholders’ equity 166,553 124,722 Total liabilities and stockholders’ equity $ 226,776 $ 193,362 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 (In thousands) (Unaudited) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net Income $ 13,656 $ 13,318 $ 40,830 $ 33,024 Interest 85 391 946 933 Taxes 3,490 3,226 10,553 8,302 Depreciation 1,199 890 3,229 2,486 Amortization 1,288 1,117 3,660 3,248 EBITDA $ 19,718 $ 18,942 $ 59,218 $ 47,993 Adjusted EBITDA Reconciliation (In thousands) (Unaudited) Three Months Ended September 30, 2023 EBITDA $ 19,718 Inventory write-offs 1,012 Relocation costs 341 Acquisition-related legal costs 250 Research and development 500 Foreign exchange 293 Adjusted EBITDA $ 22,114 Adjusted EPS Reconciliation (In thousands) (Unaudited) Three Months Ended September 30, 2023 Net income $ 13,656 Inventory write-offs 806 Relocation costs 272 Acquisition-related legal costs 199 Research and development 398 Foreign exchange 233 Adjusted net income $ 15,564 Adjusted earnings per share Basic 0.56 Diluted 0.56 Weighted average number of common shares Basic 27,623 Diluted 27,644 View source version on businesswire.com: https://www.businesswire.com/news/home/20231108965811/en/Contacts Investor Relations: John Nesbett/Jennifer Belodeau IMS Investor Relations Phone: (203) 972-9200 Email: xpel@imsinvestorrelations.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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XPEL Reports Record Revenue of $102.7 Million in Third Quarter 2023 By: XPEL, Inc. via Business Wire November 08, 2023 at 08:00 AM EST XPEL, Inc. (Nasdaq: XPEL) a global provider of protective films and coatings, today announced results for the quarter ended September 30, 2023. Third Quarter 2023 Highlights: Revenues increased 14.4% to $102.7 million in the third quarter. Gross margin percentage improved to 40.4% in the third quarter. Net income grew 2.5% to $13.7 million, or $0.49 per share, compared to $13.3 million, or $0.48 per share, in the same quarter of 2022. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) grew 4.1% to $19.7 million, or 19.2% of revenues, compared to $18.9 million in third quarter 2022.1 First Nine Months Highlights: Revenues increased 18.4% to $290.8 million in the first nine months of 2023. Gross margin percentage improved to 41.8% in the first nine months of 2023. Net income grew 23.6% to $40.8 million, or $1.48 per share, compared to $33.0 million, or $1.20 per share, in the first nine months of 2022. EBITDA grew 23.4% to $59.2 million, or 20.4% of revenues compared to $48.0 million in the first nine months of 2022.1 For comparative performance purposes, during the third quarter, the Company incurred approximately $1.0 million in inventory write-offs which negatively impacted gross margin. The Company’s selling, general and administrative expenses were negatively impacted by approximately $0.3 million in executive relocation costs, $0.3 million in acquisition-related legal costs and $0.5 million in R & D related costs. The Company also incurred approximately $0.3 million in negative foreign exchange impact. Normalizing for these items, Adjusted EBITDA would have grown approximately 16.7% with Adjusted EBITDA margin of approximately 21.5% and Adjusted EPS would have been approximately $0.56 per share.1 Ryan Pape, President and Chief Executive Officer of XPEL, commented, “It was a busy and solid quarter for the Company. We continue to see strong demand for our products and services and our unique channel strategy positions us to be wherever that demand takes us.” For the Quarter Ended September 30, 2023: Revenues. Revenues increased approximately $12.9 million, or 14.4%, to $102.7 million as compared to $89.8 million in the third quarter of the prior year. Gross Margin. Gross margin was 40.4% compared to 39.8% in the third quarter of 2022. Expenses. Operating expenses increased to $23.9 million, or 23.3% of sales, compared to $18.5 million, or 20.6% of sales in the prior year period. Net income. Net income was $13.7 million, or $0.49 per basic and diluted share, versus net income of $13.3 million, or $0.48 per basic and diluted share in the third quarter of 2022. EBITDA. EBITDA was $19.7 million, or 19.2% of sales, as compared to $18.9 million, or 21.1% of sales in the prior year.1 For the Nine Months Ended September 30, 2023: Revenues. Revenues increased approximately $45.2 million, or 18.4%, to $290.8 million as compared to $245.5 million in the first nine months of the prior year. Gross Margin. Gross margin was 41.8% compared to 39.3% in the first nine months of 2022. Expenses. Operating expenses increased to $68.7 million, or 23.6% of sales, compared to $53.4 million, or 21.7% of sales in the prior year period. Net income. Net income was $40.8 million, or $1.48 per basic and diluted share, versus net income of $33.0 million, or $1.20 per basic and diluted share in the first nine months of 2022. EBITDA. EBITDA was $59.2 million, or 20.4% of sales, as compared to $48.0 million, or 19.5% of sales in the prior year.1 1See reconciliation of non-GAAP financial measures below. Conference Call Information The Company will host a conference call and webcast today, November 8, 2023 at 11:00 a.m. Eastern Time to discuss the Company’s third quarter 2023 results and conditions, including our fourth quarter outlook. 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: 565846 A replay of the teleconference will be available until December 8, 2023 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 49265. 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. Without limitation, the risks and uncertainties affecting XPEL are described in XPEL’s most recent Form 10-K (including Item 1A Risk Factors) filed with the SEC, which is available on our website at http://www.xpel.com and at http://www.sec.gov. 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) (In thousands except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue Product revenue $ 81,125 $ 72,616 $ 229,339 $ 197,753 Service revenue 21,552 17,142 61,416 47,759 Total revenue 102,677 89,758 290,755 245,512 Expenses Cost of product sales 51,876 47,225 143,613 129,646 Cost of service sales 9,272 6,767 25,660 19,400 Total cost of sales 61,148 53,992 169,273 149,046 Gross Margin 41,529 35,766 121,482 96,466 Operating Expenses Sales and marketing 7,730 6,297 22,554 18,515 General and administrative 16,170 12,162 46,180 34,859 Total operating expenses 23,900 18,459 68,734 53,374 Operating Income 17,629 17,307 52,748 43,092 Interest expense 85 391 946 933 Foreign exchange (loss) gain 398 372 419 833 Income before income taxes 17,146 16,544 51,383 41,326 Income tax expense 3,490 3,226 10,553 8,302 Net income $ 13,656 $ 13,318 $ 40,830 $ 33,024 Earnings per share Basic $ 0.49 $ 0.48 $ 1.48 $ 1.20 Diluted $ 0.49 $ 0.48 $ 1.48 $ 1.20 Weighted Average Number of Common Shares Basic 27,623 27,616 27,620 27,614 Diluted 27,644 27,620 27,634 27,615 XPEL Inc. Condensed Consolidated Balance Sheets (In thousands except per share data) (Unaudited) (Audited) September 30, 2023 December 31, 2022 Assets Current Cash and cash equivalents $ 10,374 $ 8,056 Accounts receivable, net 24,115 14,726 Inventories 92,458 80,575 Prepaid expenses and other current assets 11,091 3,464 Total current assets 138,038 106,821 Property and equipment, net 15,690 14,203 Right-of-use lease assets 14,014 15,309 Intangible assets, net 29,461 29,294 Other non-current assets 971 972 Goodwill 28,602 26,763 Total assets $ 226,776 $ 193,362 Liabilities Current Current portion of notes payable $ — $ 76.60 Current portion of lease liabilities 3,650 3,885 Accounts payable and accrued liabilities 42,059 22,970 Income tax payable 836 470 Total current liabilities 46,545 27,402 Deferred tax liability, net 1,205 2,049 Other long-term liabilities 950 1,070 Borrowings on line of credit 0 26,000 Non-current portion of lease liabilities 11,523 12,119 Total liabilities 60,223 68,640 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; 27,628,953 and 27,616,064 issued and outstanding, respectively 28 28 Additional paid-in-capital 12,050 11,073 Accumulated other comprehensive loss (2,179 ) (2,203 ) Retained earnings 156,654 115,824 Total stockholders’ equity 166,553 124,722 Total liabilities and stockholders’ equity $ 226,776 $ 193,362 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 (In thousands) (Unaudited) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net Income $ 13,656 $ 13,318 $ 40,830 $ 33,024 Interest 85 391 946 933 Taxes 3,490 3,226 10,553 8,302 Depreciation 1,199 890 3,229 2,486 Amortization 1,288 1,117 3,660 3,248 EBITDA $ 19,718 $ 18,942 $ 59,218 $ 47,993 Adjusted EBITDA Reconciliation (In thousands) (Unaudited) Three Months Ended September 30, 2023 EBITDA $ 19,718 Inventory write-offs 1,012 Relocation costs 341 Acquisition-related legal costs 250 Research and development 500 Foreign exchange 293 Adjusted EBITDA $ 22,114 Adjusted EPS Reconciliation (In thousands) (Unaudited) Three Months Ended September 30, 2023 Net income $ 13,656 Inventory write-offs 806 Relocation costs 272 Acquisition-related legal costs 199 Research and development 398 Foreign exchange 233 Adjusted net income $ 15,564 Adjusted earnings per share Basic 0.56 Diluted 0.56 Weighted average number of common shares Basic 27,623 Diluted 27,644 View source version on businesswire.com: https://www.businesswire.com/news/home/20231108965811/en/Contacts Investor Relations: John Nesbett/Jennifer Belodeau IMS Investor Relations Phone: (203) 972-9200 Email: xpel@imsinvestorrelations.com
XPEL, Inc. (Nasdaq: XPEL) a global provider of protective films and coatings, today announced results for the quarter ended September 30, 2023. Third Quarter 2023 Highlights: Revenues increased 14.4% to $102.7 million in the third quarter. Gross margin percentage improved to 40.4% in the third quarter. Net income grew 2.5% to $13.7 million, or $0.49 per share, compared to $13.3 million, or $0.48 per share, in the same quarter of 2022. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) grew 4.1% to $19.7 million, or 19.2% of revenues, compared to $18.9 million in third quarter 2022.1 First Nine Months Highlights: Revenues increased 18.4% to $290.8 million in the first nine months of 2023. Gross margin percentage improved to 41.8% in the first nine months of 2023. Net income grew 23.6% to $40.8 million, or $1.48 per share, compared to $33.0 million, or $1.20 per share, in the first nine months of 2022. EBITDA grew 23.4% to $59.2 million, or 20.4% of revenues compared to $48.0 million in the first nine months of 2022.1 For comparative performance purposes, during the third quarter, the Company incurred approximately $1.0 million in inventory write-offs which negatively impacted gross margin. The Company’s selling, general and administrative expenses were negatively impacted by approximately $0.3 million in executive relocation costs, $0.3 million in acquisition-related legal costs and $0.5 million in R & D related costs. The Company also incurred approximately $0.3 million in negative foreign exchange impact. Normalizing for these items, Adjusted EBITDA would have grown approximately 16.7% with Adjusted EBITDA margin of approximately 21.5% and Adjusted EPS would have been approximately $0.56 per share.1 Ryan Pape, President and Chief Executive Officer of XPEL, commented, “It was a busy and solid quarter for the Company. We continue to see strong demand for our products and services and our unique channel strategy positions us to be wherever that demand takes us.” For the Quarter Ended September 30, 2023: Revenues. Revenues increased approximately $12.9 million, or 14.4%, to $102.7 million as compared to $89.8 million in the third quarter of the prior year. Gross Margin. Gross margin was 40.4% compared to 39.8% in the third quarter of 2022. Expenses. Operating expenses increased to $23.9 million, or 23.3% of sales, compared to $18.5 million, or 20.6% of sales in the prior year period. Net income. Net income was $13.7 million, or $0.49 per basic and diluted share, versus net income of $13.3 million, or $0.48 per basic and diluted share in the third quarter of 2022. EBITDA. EBITDA was $19.7 million, or 19.2% of sales, as compared to $18.9 million, or 21.1% of sales in the prior year.1 For the Nine Months Ended September 30, 2023: Revenues. Revenues increased approximately $45.2 million, or 18.4%, to $290.8 million as compared to $245.5 million in the first nine months of the prior year. Gross Margin. Gross margin was 41.8% compared to 39.3% in the first nine months of 2022. Expenses. Operating expenses increased to $68.7 million, or 23.6% of sales, compared to $53.4 million, or 21.7% of sales in the prior year period. Net income. Net income was $40.8 million, or $1.48 per basic and diluted share, versus net income of $33.0 million, or $1.20 per basic and diluted share in the first nine months of 2022. EBITDA. EBITDA was $59.2 million, or 20.4% of sales, as compared to $48.0 million, or 19.5% of sales in the prior year.1 1See reconciliation of non-GAAP financial measures below. Conference Call Information The Company will host a conference call and webcast today, November 8, 2023 at 11:00 a.m. Eastern Time to discuss the Company’s third quarter 2023 results and conditions, including our fourth quarter outlook. 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: 565846 A replay of the teleconference will be available until December 8, 2023 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 49265. 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. Without limitation, the risks and uncertainties affecting XPEL are described in XPEL’s most recent Form 10-K (including Item 1A Risk Factors) filed with the SEC, which is available on our website at http://www.xpel.com and at http://www.sec.gov. 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) (In thousands except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue Product revenue $ 81,125 $ 72,616 $ 229,339 $ 197,753 Service revenue 21,552 17,142 61,416 47,759 Total revenue 102,677 89,758 290,755 245,512 Expenses Cost of product sales 51,876 47,225 143,613 129,646 Cost of service sales 9,272 6,767 25,660 19,400 Total cost of sales 61,148 53,992 169,273 149,046 Gross Margin 41,529 35,766 121,482 96,466 Operating Expenses Sales and marketing 7,730 6,297 22,554 18,515 General and administrative 16,170 12,162 46,180 34,859 Total operating expenses 23,900 18,459 68,734 53,374 Operating Income 17,629 17,307 52,748 43,092 Interest expense 85 391 946 933 Foreign exchange (loss) gain 398 372 419 833 Income before income taxes 17,146 16,544 51,383 41,326 Income tax expense 3,490 3,226 10,553 8,302 Net income $ 13,656 $ 13,318 $ 40,830 $ 33,024 Earnings per share Basic $ 0.49 $ 0.48 $ 1.48 $ 1.20 Diluted $ 0.49 $ 0.48 $ 1.48 $ 1.20 Weighted Average Number of Common Shares Basic 27,623 27,616 27,620 27,614 Diluted 27,644 27,620 27,634 27,615 XPEL Inc. Condensed Consolidated Balance Sheets (In thousands except per share data) (Unaudited) (Audited) September 30, 2023 December 31, 2022 Assets Current Cash and cash equivalents $ 10,374 $ 8,056 Accounts receivable, net 24,115 14,726 Inventories 92,458 80,575 Prepaid expenses and other current assets 11,091 3,464 Total current assets 138,038 106,821 Property and equipment, net 15,690 14,203 Right-of-use lease assets 14,014 15,309 Intangible assets, net 29,461 29,294 Other non-current assets 971 972 Goodwill 28,602 26,763 Total assets $ 226,776 $ 193,362 Liabilities Current Current portion of notes payable $ — $ 76.60 Current portion of lease liabilities 3,650 3,885 Accounts payable and accrued liabilities 42,059 22,970 Income tax payable 836 470 Total current liabilities 46,545 27,402 Deferred tax liability, net 1,205 2,049 Other long-term liabilities 950 1,070 Borrowings on line of credit 0 26,000 Non-current portion of lease liabilities 11,523 12,119 Total liabilities 60,223 68,640 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; 27,628,953 and 27,616,064 issued and outstanding, respectively 28 28 Additional paid-in-capital 12,050 11,073 Accumulated other comprehensive loss (2,179 ) (2,203 ) Retained earnings 156,654 115,824 Total stockholders’ equity 166,553 124,722 Total liabilities and stockholders’ equity $ 226,776 $ 193,362 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 (In thousands) (Unaudited) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net Income $ 13,656 $ 13,318 $ 40,830 $ 33,024 Interest 85 391 946 933 Taxes 3,490 3,226 10,553 8,302 Depreciation 1,199 890 3,229 2,486 Amortization 1,288 1,117 3,660 3,248 EBITDA $ 19,718 $ 18,942 $ 59,218 $ 47,993 Adjusted EBITDA Reconciliation (In thousands) (Unaudited) Three Months Ended September 30, 2023 EBITDA $ 19,718 Inventory write-offs 1,012 Relocation costs 341 Acquisition-related legal costs 250 Research and development 500 Foreign exchange 293 Adjusted EBITDA $ 22,114 Adjusted EPS Reconciliation (In thousands) (Unaudited) Three Months Ended September 30, 2023 Net income $ 13,656 Inventory write-offs 806 Relocation costs 272 Acquisition-related legal costs 199 Research and development 398 Foreign exchange 233 Adjusted net income $ 15,564 Adjusted earnings per share Basic 0.56 Diluted 0.56 Weighted average number of common shares Basic 27,623 Diluted 27,644 View source version on businesswire.com: https://www.businesswire.com/news/home/20231108965811/en/
Investor Relations: John Nesbett/Jennifer Belodeau IMS Investor Relations Phone: (203) 972-9200 Email: xpel@imsinvestorrelations.com