Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries XPEL Reports Third Quarter 2022 Results By: XPEL, Inc. via Business Wire November 09, 2022 at 08:30 AM EST XPEL, Inc. (Nasdaq: XPEL) a global provider of protective films and coatings, today announced results for the third quarter and nine months ended September 30, 2022. Third Quarter 2022 Highlights: Revenues increased 31.0% to a record $89.8 million in the third quarter. Gross margin percentage improved to 39.8% in the third quarter, a new high for the Company. Net income grew 59.9% to $13.3 million, or $0.48 per share, compared to $8.3 million, or $0.30 per share, in the same quarter of 2021. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) grew 66.0% to $18.9 million, or 21.1% of revenues compared to $11.4 million in third quarter 2021.1 First Nine Months Highlights: Revenues increased 29.8% to $245.5 million in the first nine months of 2022. Gross margin percentage improved to 39.3% in the first nine months of 2022. Net income grew 30.2% to $33.0 million, or $1.20 per share, compared to $25.4 million, or $0.92 per share, in the first nine months of 2021. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) grew 40.6% to $48.0 million, or 19.5% of revenues compared to $34.1 million in the first nine months of 2021.1 Ryan Pape, President and Chief Executive Officer of XPEL, commented, “Our strong third quarter results reflect on-going momentum in the business even in the face of economic uncertainty. We saw solid performance across most of our regions and we look forward to continuing to build on this momentum as we close out the year.” For the Quarter Ended September 30, 2022: Revenues. Revenues increased approximately $21.2 million or 31.0% to $89.8 million as compared to $68.5 million in the third quarter of the prior year. Gross Margin. Gross margin was 39.8% compared to 35.7% in the third quarter of 2021. Expenses. Operating expenses increased to $18.5 million, or 20.6% of sales, compared to $14.1 million, or 20.6% of sales in the prior year period. Net income. Net income was $13.3 million, or $0.48 per basic and diluted share, versus net income of $8.3 million, or $0.30 per basic and diluted share in the third quarter of 2021. EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $18.9 million, or 21.1% of sales, as compared to $11.4 million, or 16.6% of sales in the prior year1. For the Nine Months Ended September 30, 2022: Revenues. Revenues increased approximately $56.4 million or 29.8% to $245.5 million as compared to $189.1 million in the first nine months of the prior year. Gross Margin. Gross margin was 39.3% compared to 35.9% in the first nine months of 2021. Expenses. Operating expenses increased to $53.4 million, or 21.7% of sales, compared to $36.4 million or 19.2% of sales in the prior year period. Net income. Net income was $33.0 million, or $1.20 per basic and diluted share versus net income of $25.4 million, or $0.92 per basic and diluted share in the first nine months of 2021. EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $48.0 million, or 19.5% of sales, as compared to $34.1 million, or 18.0% of sales in the prior year1. 1 See reconciliation of non-GAAP financial measures below Conference Call Information The Company will host a conference call and webcast today, November 9, 2022 at 11:00 a.m. Eastern Time to discuss the Company’s third quarter 2022 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: 868222 A replay of the teleconference will be available until December 9, 2022 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 46864. 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. 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, 2022 2021 2022 2021 Revenue Product revenue $ 72,616 $ 56,996 . $ 197,753 $ 160,595 Service revenue 17,142 11,533 . 47,759 28,536 Total revenue 89,758 68,529 . 245,512 189,131 Cost of Sales Cost of product sales 47,225 39,701 . 129,646 111,839 Cost of service 6,767 4,374 . 19,400 9,303 Total cost of sales 53,992 44,075 . 149,046 121,142 Gross Margin 35,766 24,454 . 96,466 67,989 Operating Expenses Sales and marketing 6,297 4,904 . 18,515 12,978 General and administrative 12,162 9,183 . 34,859 23,423 Total operating expenses 18,459 14,087 . 53,374 36,401 Operating Income 17,307 10,367 . 43,092 31,588 Interest expense 391 46 . 933 143 Foreign currency exchange loss 372 149 . 833 122 Income before income taxes 16,544 10,172 . 41,326 31,323 Income tax expense 3,226 1,841 . 8,302 5,959 Net income $ 13,318 $ 8,331 . $ 33,024 $ 25,364 Earnings per share Basic $ 0.48 $ 0.30 . $ 1.20 $ 0.92 Diluted $ 0.48 $ 0.30 . $ 1.20 $ 0.92 Weighted Average Number of Common Shares Basic 27,616 27,613 . 27,614 27,613 Diluted 27,620 27,613 . 27,615 27,613 XPEL Inc. Condensed Consolidated Balance Sheets (In thousands except per share data) (Unaudited) (Audited) September 30, 2022 December 31, 2021 Assets Current Cash and cash equivalents $ 10,245 $ 9,644 Accounts receivable, net 17,944 13,159 Inventory, net 69,388 51,936 Prepaid expenses and other current assets 7,065 3,672 Income tax receivable — 617 Total current assets 104,642 79,028 Property and equipment, net 12,658 9,898 Right-of-use lease assets 15,194 12,910 Intangible assets, net 29,426 32,733 Other non-current assets 921 791 Goodwill 25,417 25,655 Total assets $ 188,258 $ 161,015 Liabilities Current Current portion of notes payable 140 375 Current portion lease liabilities 3,155 2,978 Accounts payable and accrued liabilities 28,048 32,915 Income tax payable 472 — Total current liabilities 31,815 36,268 Deferred tax liability, net 2,502 2,748 Other long-term liabilities 899 2,631 Borrowings on line of credit 26,000 25,000 Non-current portion of lease liabilities 12,089 9,830 Non-current portion of notes payable — 76 Total liabilities 73,305 76,553 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; 27,616,064 issued and outstanding 28 28 Additional paid-in-capital 10,869 10,581 Accumulated other comprehensive loss (3,411 ) (590 ) Retained earnings 107,467 74,443 Total stockholders’ equity 114,953 84,462 Total liabilities and stockholders’ equity $ 188,258 $ 161,015 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, 2022 2021 2022 2021 Net Income 13,318 8,331 33,024 25,364 Interest 391 46 933 143 Taxes 3,226 1,841 8,302 5,959 Depreciation 890 456 2,486 1,258 Amortization 1,117 735 3,248 1,420 EBITDA 18,942 11,409 47,993 34,144 View source version on businesswire.com: https://www.businesswire.com/news/home/20221109005226/en/Contacts For more information, contact: 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 Third Quarter 2022 Results By: XPEL, Inc. via Business Wire November 09, 2022 at 08:30 AM EST XPEL, Inc. (Nasdaq: XPEL) a global provider of protective films and coatings, today announced results for the third quarter and nine months ended September 30, 2022. Third Quarter 2022 Highlights: Revenues increased 31.0% to a record $89.8 million in the third quarter. Gross margin percentage improved to 39.8% in the third quarter, a new high for the Company. Net income grew 59.9% to $13.3 million, or $0.48 per share, compared to $8.3 million, or $0.30 per share, in the same quarter of 2021. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) grew 66.0% to $18.9 million, or 21.1% of revenues compared to $11.4 million in third quarter 2021.1 First Nine Months Highlights: Revenues increased 29.8% to $245.5 million in the first nine months of 2022. Gross margin percentage improved to 39.3% in the first nine months of 2022. Net income grew 30.2% to $33.0 million, or $1.20 per share, compared to $25.4 million, or $0.92 per share, in the first nine months of 2021. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) grew 40.6% to $48.0 million, or 19.5% of revenues compared to $34.1 million in the first nine months of 2021.1 Ryan Pape, President and Chief Executive Officer of XPEL, commented, “Our strong third quarter results reflect on-going momentum in the business even in the face of economic uncertainty. We saw solid performance across most of our regions and we look forward to continuing to build on this momentum as we close out the year.” For the Quarter Ended September 30, 2022: Revenues. Revenues increased approximately $21.2 million or 31.0% to $89.8 million as compared to $68.5 million in the third quarter of the prior year. Gross Margin. Gross margin was 39.8% compared to 35.7% in the third quarter of 2021. Expenses. Operating expenses increased to $18.5 million, or 20.6% of sales, compared to $14.1 million, or 20.6% of sales in the prior year period. Net income. Net income was $13.3 million, or $0.48 per basic and diluted share, versus net income of $8.3 million, or $0.30 per basic and diluted share in the third quarter of 2021. EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $18.9 million, or 21.1% of sales, as compared to $11.4 million, or 16.6% of sales in the prior year1. For the Nine Months Ended September 30, 2022: Revenues. Revenues increased approximately $56.4 million or 29.8% to $245.5 million as compared to $189.1 million in the first nine months of the prior year. Gross Margin. Gross margin was 39.3% compared to 35.9% in the first nine months of 2021. Expenses. Operating expenses increased to $53.4 million, or 21.7% of sales, compared to $36.4 million or 19.2% of sales in the prior year period. Net income. Net income was $33.0 million, or $1.20 per basic and diluted share versus net income of $25.4 million, or $0.92 per basic and diluted share in the first nine months of 2021. EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $48.0 million, or 19.5% of sales, as compared to $34.1 million, or 18.0% of sales in the prior year1. 1 See reconciliation of non-GAAP financial measures below Conference Call Information The Company will host a conference call and webcast today, November 9, 2022 at 11:00 a.m. Eastern Time to discuss the Company’s third quarter 2022 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: 868222 A replay of the teleconference will be available until December 9, 2022 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 46864. 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. 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, 2022 2021 2022 2021 Revenue Product revenue $ 72,616 $ 56,996 . $ 197,753 $ 160,595 Service revenue 17,142 11,533 . 47,759 28,536 Total revenue 89,758 68,529 . 245,512 189,131 Cost of Sales Cost of product sales 47,225 39,701 . 129,646 111,839 Cost of service 6,767 4,374 . 19,400 9,303 Total cost of sales 53,992 44,075 . 149,046 121,142 Gross Margin 35,766 24,454 . 96,466 67,989 Operating Expenses Sales and marketing 6,297 4,904 . 18,515 12,978 General and administrative 12,162 9,183 . 34,859 23,423 Total operating expenses 18,459 14,087 . 53,374 36,401 Operating Income 17,307 10,367 . 43,092 31,588 Interest expense 391 46 . 933 143 Foreign currency exchange loss 372 149 . 833 122 Income before income taxes 16,544 10,172 . 41,326 31,323 Income tax expense 3,226 1,841 . 8,302 5,959 Net income $ 13,318 $ 8,331 . $ 33,024 $ 25,364 Earnings per share Basic $ 0.48 $ 0.30 . $ 1.20 $ 0.92 Diluted $ 0.48 $ 0.30 . $ 1.20 $ 0.92 Weighted Average Number of Common Shares Basic 27,616 27,613 . 27,614 27,613 Diluted 27,620 27,613 . 27,615 27,613 XPEL Inc. Condensed Consolidated Balance Sheets (In thousands except per share data) (Unaudited) (Audited) September 30, 2022 December 31, 2021 Assets Current Cash and cash equivalents $ 10,245 $ 9,644 Accounts receivable, net 17,944 13,159 Inventory, net 69,388 51,936 Prepaid expenses and other current assets 7,065 3,672 Income tax receivable — 617 Total current assets 104,642 79,028 Property and equipment, net 12,658 9,898 Right-of-use lease assets 15,194 12,910 Intangible assets, net 29,426 32,733 Other non-current assets 921 791 Goodwill 25,417 25,655 Total assets $ 188,258 $ 161,015 Liabilities Current Current portion of notes payable 140 375 Current portion lease liabilities 3,155 2,978 Accounts payable and accrued liabilities 28,048 32,915 Income tax payable 472 — Total current liabilities 31,815 36,268 Deferred tax liability, net 2,502 2,748 Other long-term liabilities 899 2,631 Borrowings on line of credit 26,000 25,000 Non-current portion of lease liabilities 12,089 9,830 Non-current portion of notes payable — 76 Total liabilities 73,305 76,553 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; 27,616,064 issued and outstanding 28 28 Additional paid-in-capital 10,869 10,581 Accumulated other comprehensive loss (3,411 ) (590 ) Retained earnings 107,467 74,443 Total stockholders’ equity 114,953 84,462 Total liabilities and stockholders’ equity $ 188,258 $ 161,015 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, 2022 2021 2022 2021 Net Income 13,318 8,331 33,024 25,364 Interest 391 46 933 143 Taxes 3,226 1,841 8,302 5,959 Depreciation 890 456 2,486 1,258 Amortization 1,117 735 3,248 1,420 EBITDA 18,942 11,409 47,993 34,144 View source version on businesswire.com: https://www.businesswire.com/news/home/20221109005226/en/Contacts For more information, contact: 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 third quarter and nine months ended September 30, 2022. Third Quarter 2022 Highlights: Revenues increased 31.0% to a record $89.8 million in the third quarter. Gross margin percentage improved to 39.8% in the third quarter, a new high for the Company. Net income grew 59.9% to $13.3 million, or $0.48 per share, compared to $8.3 million, or $0.30 per share, in the same quarter of 2021. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) grew 66.0% to $18.9 million, or 21.1% of revenues compared to $11.4 million in third quarter 2021.1 First Nine Months Highlights: Revenues increased 29.8% to $245.5 million in the first nine months of 2022. Gross margin percentage improved to 39.3% in the first nine months of 2022. Net income grew 30.2% to $33.0 million, or $1.20 per share, compared to $25.4 million, or $0.92 per share, in the first nine months of 2021. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) grew 40.6% to $48.0 million, or 19.5% of revenues compared to $34.1 million in the first nine months of 2021.1 Ryan Pape, President and Chief Executive Officer of XPEL, commented, “Our strong third quarter results reflect on-going momentum in the business even in the face of economic uncertainty. We saw solid performance across most of our regions and we look forward to continuing to build on this momentum as we close out the year.” For the Quarter Ended September 30, 2022: Revenues. Revenues increased approximately $21.2 million or 31.0% to $89.8 million as compared to $68.5 million in the third quarter of the prior year. Gross Margin. Gross margin was 39.8% compared to 35.7% in the third quarter of 2021. Expenses. Operating expenses increased to $18.5 million, or 20.6% of sales, compared to $14.1 million, or 20.6% of sales in the prior year period. Net income. Net income was $13.3 million, or $0.48 per basic and diluted share, versus net income of $8.3 million, or $0.30 per basic and diluted share in the third quarter of 2021. EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $18.9 million, or 21.1% of sales, as compared to $11.4 million, or 16.6% of sales in the prior year1. For the Nine Months Ended September 30, 2022: Revenues. Revenues increased approximately $56.4 million or 29.8% to $245.5 million as compared to $189.1 million in the first nine months of the prior year. Gross Margin. Gross margin was 39.3% compared to 35.9% in the first nine months of 2021. Expenses. Operating expenses increased to $53.4 million, or 21.7% of sales, compared to $36.4 million or 19.2% of sales in the prior year period. Net income. Net income was $33.0 million, or $1.20 per basic and diluted share versus net income of $25.4 million, or $0.92 per basic and diluted share in the first nine months of 2021. EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $48.0 million, or 19.5% of sales, as compared to $34.1 million, or 18.0% of sales in the prior year1. 1 See reconciliation of non-GAAP financial measures below Conference Call Information The Company will host a conference call and webcast today, November 9, 2022 at 11:00 a.m. Eastern Time to discuss the Company’s third quarter 2022 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: 868222 A replay of the teleconference will be available until December 9, 2022 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 46864. 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. 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, 2022 2021 2022 2021 Revenue Product revenue $ 72,616 $ 56,996 . $ 197,753 $ 160,595 Service revenue 17,142 11,533 . 47,759 28,536 Total revenue 89,758 68,529 . 245,512 189,131 Cost of Sales Cost of product sales 47,225 39,701 . 129,646 111,839 Cost of service 6,767 4,374 . 19,400 9,303 Total cost of sales 53,992 44,075 . 149,046 121,142 Gross Margin 35,766 24,454 . 96,466 67,989 Operating Expenses Sales and marketing 6,297 4,904 . 18,515 12,978 General and administrative 12,162 9,183 . 34,859 23,423 Total operating expenses 18,459 14,087 . 53,374 36,401 Operating Income 17,307 10,367 . 43,092 31,588 Interest expense 391 46 . 933 143 Foreign currency exchange loss 372 149 . 833 122 Income before income taxes 16,544 10,172 . 41,326 31,323 Income tax expense 3,226 1,841 . 8,302 5,959 Net income $ 13,318 $ 8,331 . $ 33,024 $ 25,364 Earnings per share Basic $ 0.48 $ 0.30 . $ 1.20 $ 0.92 Diluted $ 0.48 $ 0.30 . $ 1.20 $ 0.92 Weighted Average Number of Common Shares Basic 27,616 27,613 . 27,614 27,613 Diluted 27,620 27,613 . 27,615 27,613 XPEL Inc. Condensed Consolidated Balance Sheets (In thousands except per share data) (Unaudited) (Audited) September 30, 2022 December 31, 2021 Assets Current Cash and cash equivalents $ 10,245 $ 9,644 Accounts receivable, net 17,944 13,159 Inventory, net 69,388 51,936 Prepaid expenses and other current assets 7,065 3,672 Income tax receivable — 617 Total current assets 104,642 79,028 Property and equipment, net 12,658 9,898 Right-of-use lease assets 15,194 12,910 Intangible assets, net 29,426 32,733 Other non-current assets 921 791 Goodwill 25,417 25,655 Total assets $ 188,258 $ 161,015 Liabilities Current Current portion of notes payable 140 375 Current portion lease liabilities 3,155 2,978 Accounts payable and accrued liabilities 28,048 32,915 Income tax payable 472 — Total current liabilities 31,815 36,268 Deferred tax liability, net 2,502 2,748 Other long-term liabilities 899 2,631 Borrowings on line of credit 26,000 25,000 Non-current portion of lease liabilities 12,089 9,830 Non-current portion of notes payable — 76 Total liabilities 73,305 76,553 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; 27,616,064 issued and outstanding 28 28 Additional paid-in-capital 10,869 10,581 Accumulated other comprehensive loss (3,411 ) (590 ) Retained earnings 107,467 74,443 Total stockholders’ equity 114,953 84,462 Total liabilities and stockholders’ equity $ 188,258 $ 161,015 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, 2022 2021 2022 2021 Net Income 13,318 8,331 33,024 25,364 Interest 391 46 933 143 Taxes 3,226 1,841 8,302 5,959 Depreciation 890 456 2,486 1,258 Amortization 1,117 735 3,248 1,420 EBITDA 18,942 11,409 47,993 34,144 View source version on businesswire.com: https://www.businesswire.com/news/home/20221109005226/en/
For more information, contact: Investor Relations: John Nesbett/Jennifer Belodeau IMS Investor Relations Phone: (203) 972-9200 Email: xpel@imsinvestorrelations.com