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 Fourth Quarter and 2022 Year End Results By: XPEL, Inc. via Business Wire February 28, 2023 at 08:30 AM EST XPEL, Inc. (Nasdaq: XPEL) (the "Company"), a global provider of protective films and coatings, announced results for the fourth quarter and year ended December 31, 2022. Fourth Quarter 2022 Highlights: Revenue increased 11.9% to $78.5 million compared to fourth quarter 2021. Net income increased 34.7% to $8.4 million, or $0.30 per basic and diluted share, versus net income of $6.2 million, or $0.22 per basic and diluted share in the fourth quarter of 2021. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew 32.4% to $13.2 million, or 16.8% of revenue compared to $10.0 million, or 14.2% of revenue in fourth quarter 2021.1 Year End 2022 Highlights: Revenue increased 25.0% to $324.0 million as compared to $259.3 million in the prior year. Net income increased by 31.1% to $41.4 million, or $1.50 per basic and diluted share, compared to $31.6 million, or $1.14 per basic and diluted share, in 2021. EBITDA grew 38.7% to $61.2 million, or 18.9% of revenue, as compared to $44.1 million, or 17.0% in the prior year.1 In the quarter, the Company’s revenue was negatively impacted by approximately $3.5 million resulting from the cancellation of some China orders due to uncertainty created by the change in COVID policies and China’s reopening. The Company also incurred approximately $0.4 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 severance-related costs and $0.4 million in compensation expense tangential to a previous acquisition. Normalizing for these items, revenue would have grown approximately 17%, EBITDA margin would have been approximately 18% and EPS would have been approximately $0.36 per share. Ryan Pape, President and Chief Executive Officer of XPEL, commented, “Despite some headwinds in the fourth quarter, there is a lot to be positive about as we look to 2023. We continue to have tremendous momentum in almost all of our regions, particularly the US which grew 31.6% in the quarter. Automakers seem cautiously optimistic about 2023 and new car inventories continue to improve. This momentum has continued and we are off to a great start in 2023.” For the Quarter Ended December 31, 2022: Revenue. Revenue increased approximately $8.3 million, or 11.9%, to $78.5 million as compared to $70.1 million in the fourth quarter of the prior year. Gross Margin. Gross margin was 39.6% compared to 35.2% in the fourth quarter of 2021. Expenses. Operating expenses increased to $20.2 million, or 25.7% of revenue, compared to $16.2 million, or 23.0% of revenue in the prior year period. Net income. Net income was $8.4 million, or $0.30 per basic and diluted share, versus net income of $6.2 million, or $0.22 per basic and diluted share in the fourth quarter of 2021. EBITDA. EBITDA was $13.2 million, or 16.8% of revenue, compared to $10.0 million, or 14.2% of revenue in the fourth quarter of the prior year.1 For the Year Ended December 31, 2022: Revenue. Revenue increased approximately $64.7 million, or 25.0%, to $324.0 million as compared to $259.3 million in the prior year. Gross Margin. Gross margin was 39.4% compared to 35.7% for full year 2021. Expenses. Operating expenses increased to $73.6 million, or 22.7% of revenue, compared to $52.6 million, or 20.3%, of revenue in full year 2021. Net income. Net income was $41.4 million, or $1.50 per basic and diluted share, versus net income of $31.6 million, or $1.14 per basic and diluted share in full year 2021. EBITDA. EBITDA was $61.2 million, or 18.9% of revenue, compared to $44.1 million, or 17.0% of revenue in the prior year.1 Conference Call Information The Company will host a conference call and webcast today, February 28, 2023 at 11:00 a.m. Eastern Time to discuss the Company’s fourth quarter and year end 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: 264934. A replay of the teleconference will be available until March 30, 2023 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 47536. 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. Consolidated Statements of Income (In thousands except per share data) (Unaudited) Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Revenue Product revenue $ 60,421 $ 56,688 $ 258,174 $ 217,283 Service revenue 18,060 13,444 65,819 41,980 Total revenue 78,481 70,132 323,993 259,263 Cost of Sales Cost of product sales 40,259 39,446 169,905 151,286 Cost of service 7,176 5,997 26,576 15,300 Total cost of sales 47,435 45,443 196,481 166,586 Gross Margin 31,046 24,689 127,512 92,677 Operating Expenses Sales and marketing 6,852 5,295 25,367 18,273 General and administrative 13,349 10,865 48,208 34,288 Total operating expenses 20,201 16,160 73,575 52,561 Operating Income 10,845 8,529 53,937 40,116 Interest expense 477 160 1,410 303 Foreign currency exchange (gain) loss (272) 251 562 373 Income before income taxes 10,640 8,118 51,965 39,440 Income tax expense 2,282 1,914 10,584 7,873 Net income $ 8,358 $ 6,204 $ 41,381 $ 31,567 Earnings per share Basic $ 0.30 $ 0.22 $ 1.50 $ 1.14 Diluted $ 0.30 $ 0.22 $ 1.50 $ 1.14 Weighted Average Number of Common Shares Basic 27,616 27,613 27,614 27,613 Diluted 27,618 27,613 27,616 27,613 XPEL, Inc. Consolidated Balance Sheets (In thousands except share and per share data) December 31, 2022 December 31, 2021 Assets Current Cash and cash equivalents $ 8,056 $ 9,644 Accounts receivable, net 14,726 13,159 Inventory, net 80,575 51,936 Prepaid expenses and other current assets 3,464 3,672 Income tax receivable — 617 Total current assets 106,821 79,028 Property and equipment, net 14,203 9,898 Right-of-use lease assets 15,309 12,910 Intangible assets, net 29,294 32,733 Other non-current assets 972 791 Goodwill 26,763 25,655 Total assets $ 193,362 $ 161,015 Liabilities Current Current portion of notes payable $ 77 $ 375 Current portion of lease liabilities 3,885 2,978 Accounts payable and accrued liabilities 22,970 32,915 Income tax payable 470 — Total current liabilities 27,402 36,268 Deferred tax liability, net 2,049 2,748 Other long-term liabilities 1,070 2,631 Borrowings on line of credit 26,000 25,000 Non-current portion of lease liabilities 12,119 9,830 Non-current portion of notes payable — 76 Total liabilities 68,640 76,553 Commitments and Contingencies (Note 15) 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 11,073 10,581 Accumulated other comprehensive loss (2,203) (590) Retained earnings 115,824 74,443 Total stockholders’ equity 124,722 84,462 Total liabilities and stockholders’ equity $ 193,362 $ 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 (Unaudited) Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Net Income $ 8,358 $ 6,204 $ 41,381 $ 31,567 Interest 477 160 1,410 303 Taxes 2,282 1,914 10,584 7,873 Depreciation 947 629 3,433 1,887 Amortization 1,153 1,080 4,401 2,501 EBITDA $ 13,217 $ 9,987 $ 61,209 $ 44,131 View source version on businesswire.com: https://www.businesswire.com/news/home/20230228005656/en/Contacts Investor Relations: John Nesbett/Jennifer Belodeau IMS Investor Relations Phone: (203) 972-9200 Email: jnesbett@institutionalms.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 Fourth Quarter and 2022 Year End Results By: XPEL, Inc. via Business Wire February 28, 2023 at 08:30 AM EST XPEL, Inc. (Nasdaq: XPEL) (the "Company"), a global provider of protective films and coatings, announced results for the fourth quarter and year ended December 31, 2022. Fourth Quarter 2022 Highlights: Revenue increased 11.9% to $78.5 million compared to fourth quarter 2021. Net income increased 34.7% to $8.4 million, or $0.30 per basic and diluted share, versus net income of $6.2 million, or $0.22 per basic and diluted share in the fourth quarter of 2021. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew 32.4% to $13.2 million, or 16.8% of revenue compared to $10.0 million, or 14.2% of revenue in fourth quarter 2021.1 Year End 2022 Highlights: Revenue increased 25.0% to $324.0 million as compared to $259.3 million in the prior year. Net income increased by 31.1% to $41.4 million, or $1.50 per basic and diluted share, compared to $31.6 million, or $1.14 per basic and diluted share, in 2021. EBITDA grew 38.7% to $61.2 million, or 18.9% of revenue, as compared to $44.1 million, or 17.0% in the prior year.1 In the quarter, the Company’s revenue was negatively impacted by approximately $3.5 million resulting from the cancellation of some China orders due to uncertainty created by the change in COVID policies and China’s reopening. The Company also incurred approximately $0.4 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 severance-related costs and $0.4 million in compensation expense tangential to a previous acquisition. Normalizing for these items, revenue would have grown approximately 17%, EBITDA margin would have been approximately 18% and EPS would have been approximately $0.36 per share. Ryan Pape, President and Chief Executive Officer of XPEL, commented, “Despite some headwinds in the fourth quarter, there is a lot to be positive about as we look to 2023. We continue to have tremendous momentum in almost all of our regions, particularly the US which grew 31.6% in the quarter. Automakers seem cautiously optimistic about 2023 and new car inventories continue to improve. This momentum has continued and we are off to a great start in 2023.” For the Quarter Ended December 31, 2022: Revenue. Revenue increased approximately $8.3 million, or 11.9%, to $78.5 million as compared to $70.1 million in the fourth quarter of the prior year. Gross Margin. Gross margin was 39.6% compared to 35.2% in the fourth quarter of 2021. Expenses. Operating expenses increased to $20.2 million, or 25.7% of revenue, compared to $16.2 million, or 23.0% of revenue in the prior year period. Net income. Net income was $8.4 million, or $0.30 per basic and diluted share, versus net income of $6.2 million, or $0.22 per basic and diluted share in the fourth quarter of 2021. EBITDA. EBITDA was $13.2 million, or 16.8% of revenue, compared to $10.0 million, or 14.2% of revenue in the fourth quarter of the prior year.1 For the Year Ended December 31, 2022: Revenue. Revenue increased approximately $64.7 million, or 25.0%, to $324.0 million as compared to $259.3 million in the prior year. Gross Margin. Gross margin was 39.4% compared to 35.7% for full year 2021. Expenses. Operating expenses increased to $73.6 million, or 22.7% of revenue, compared to $52.6 million, or 20.3%, of revenue in full year 2021. Net income. Net income was $41.4 million, or $1.50 per basic and diluted share, versus net income of $31.6 million, or $1.14 per basic and diluted share in full year 2021. EBITDA. EBITDA was $61.2 million, or 18.9% of revenue, compared to $44.1 million, or 17.0% of revenue in the prior year.1 Conference Call Information The Company will host a conference call and webcast today, February 28, 2023 at 11:00 a.m. Eastern Time to discuss the Company’s fourth quarter and year end 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: 264934. A replay of the teleconference will be available until March 30, 2023 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 47536. 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. Consolidated Statements of Income (In thousands except per share data) (Unaudited) Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Revenue Product revenue $ 60,421 $ 56,688 $ 258,174 $ 217,283 Service revenue 18,060 13,444 65,819 41,980 Total revenue 78,481 70,132 323,993 259,263 Cost of Sales Cost of product sales 40,259 39,446 169,905 151,286 Cost of service 7,176 5,997 26,576 15,300 Total cost of sales 47,435 45,443 196,481 166,586 Gross Margin 31,046 24,689 127,512 92,677 Operating Expenses Sales and marketing 6,852 5,295 25,367 18,273 General and administrative 13,349 10,865 48,208 34,288 Total operating expenses 20,201 16,160 73,575 52,561 Operating Income 10,845 8,529 53,937 40,116 Interest expense 477 160 1,410 303 Foreign currency exchange (gain) loss (272) 251 562 373 Income before income taxes 10,640 8,118 51,965 39,440 Income tax expense 2,282 1,914 10,584 7,873 Net income $ 8,358 $ 6,204 $ 41,381 $ 31,567 Earnings per share Basic $ 0.30 $ 0.22 $ 1.50 $ 1.14 Diluted $ 0.30 $ 0.22 $ 1.50 $ 1.14 Weighted Average Number of Common Shares Basic 27,616 27,613 27,614 27,613 Diluted 27,618 27,613 27,616 27,613 XPEL, Inc. Consolidated Balance Sheets (In thousands except share and per share data) December 31, 2022 December 31, 2021 Assets Current Cash and cash equivalents $ 8,056 $ 9,644 Accounts receivable, net 14,726 13,159 Inventory, net 80,575 51,936 Prepaid expenses and other current assets 3,464 3,672 Income tax receivable — 617 Total current assets 106,821 79,028 Property and equipment, net 14,203 9,898 Right-of-use lease assets 15,309 12,910 Intangible assets, net 29,294 32,733 Other non-current assets 972 791 Goodwill 26,763 25,655 Total assets $ 193,362 $ 161,015 Liabilities Current Current portion of notes payable $ 77 $ 375 Current portion of lease liabilities 3,885 2,978 Accounts payable and accrued liabilities 22,970 32,915 Income tax payable 470 — Total current liabilities 27,402 36,268 Deferred tax liability, net 2,049 2,748 Other long-term liabilities 1,070 2,631 Borrowings on line of credit 26,000 25,000 Non-current portion of lease liabilities 12,119 9,830 Non-current portion of notes payable — 76 Total liabilities 68,640 76,553 Commitments and Contingencies (Note 15) 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 11,073 10,581 Accumulated other comprehensive loss (2,203) (590) Retained earnings 115,824 74,443 Total stockholders’ equity 124,722 84,462 Total liabilities and stockholders’ equity $ 193,362 $ 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 (Unaudited) Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Net Income $ 8,358 $ 6,204 $ 41,381 $ 31,567 Interest 477 160 1,410 303 Taxes 2,282 1,914 10,584 7,873 Depreciation 947 629 3,433 1,887 Amortization 1,153 1,080 4,401 2,501 EBITDA $ 13,217 $ 9,987 $ 61,209 $ 44,131 View source version on businesswire.com: https://www.businesswire.com/news/home/20230228005656/en/Contacts Investor Relations: John Nesbett/Jennifer Belodeau IMS Investor Relations Phone: (203) 972-9200 Email: jnesbett@institutionalms.com
XPEL, Inc. (Nasdaq: XPEL) (the "Company"), a global provider of protective films and coatings, announced results for the fourth quarter and year ended December 31, 2022. Fourth Quarter 2022 Highlights: Revenue increased 11.9% to $78.5 million compared to fourth quarter 2021. Net income increased 34.7% to $8.4 million, or $0.30 per basic and diluted share, versus net income of $6.2 million, or $0.22 per basic and diluted share in the fourth quarter of 2021. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew 32.4% to $13.2 million, or 16.8% of revenue compared to $10.0 million, or 14.2% of revenue in fourth quarter 2021.1 Year End 2022 Highlights: Revenue increased 25.0% to $324.0 million as compared to $259.3 million in the prior year. Net income increased by 31.1% to $41.4 million, or $1.50 per basic and diluted share, compared to $31.6 million, or $1.14 per basic and diluted share, in 2021. EBITDA grew 38.7% to $61.2 million, or 18.9% of revenue, as compared to $44.1 million, or 17.0% in the prior year.1 In the quarter, the Company’s revenue was negatively impacted by approximately $3.5 million resulting from the cancellation of some China orders due to uncertainty created by the change in COVID policies and China’s reopening. The Company also incurred approximately $0.4 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 severance-related costs and $0.4 million in compensation expense tangential to a previous acquisition. Normalizing for these items, revenue would have grown approximately 17%, EBITDA margin would have been approximately 18% and EPS would have been approximately $0.36 per share. Ryan Pape, President and Chief Executive Officer of XPEL, commented, “Despite some headwinds in the fourth quarter, there is a lot to be positive about as we look to 2023. We continue to have tremendous momentum in almost all of our regions, particularly the US which grew 31.6% in the quarter. Automakers seem cautiously optimistic about 2023 and new car inventories continue to improve. This momentum has continued and we are off to a great start in 2023.” For the Quarter Ended December 31, 2022: Revenue. Revenue increased approximately $8.3 million, or 11.9%, to $78.5 million as compared to $70.1 million in the fourth quarter of the prior year. Gross Margin. Gross margin was 39.6% compared to 35.2% in the fourth quarter of 2021. Expenses. Operating expenses increased to $20.2 million, or 25.7% of revenue, compared to $16.2 million, or 23.0% of revenue in the prior year period. Net income. Net income was $8.4 million, or $0.30 per basic and diluted share, versus net income of $6.2 million, or $0.22 per basic and diluted share in the fourth quarter of 2021. EBITDA. EBITDA was $13.2 million, or 16.8% of revenue, compared to $10.0 million, or 14.2% of revenue in the fourth quarter of the prior year.1 For the Year Ended December 31, 2022: Revenue. Revenue increased approximately $64.7 million, or 25.0%, to $324.0 million as compared to $259.3 million in the prior year. Gross Margin. Gross margin was 39.4% compared to 35.7% for full year 2021. Expenses. Operating expenses increased to $73.6 million, or 22.7% of revenue, compared to $52.6 million, or 20.3%, of revenue in full year 2021. Net income. Net income was $41.4 million, or $1.50 per basic and diluted share, versus net income of $31.6 million, or $1.14 per basic and diluted share in full year 2021. EBITDA. EBITDA was $61.2 million, or 18.9% of revenue, compared to $44.1 million, or 17.0% of revenue in the prior year.1 Conference Call Information The Company will host a conference call and webcast today, February 28, 2023 at 11:00 a.m. Eastern Time to discuss the Company’s fourth quarter and year end 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: 264934. A replay of the teleconference will be available until March 30, 2023 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 47536. 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. Consolidated Statements of Income (In thousands except per share data) (Unaudited) Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Revenue Product revenue $ 60,421 $ 56,688 $ 258,174 $ 217,283 Service revenue 18,060 13,444 65,819 41,980 Total revenue 78,481 70,132 323,993 259,263 Cost of Sales Cost of product sales 40,259 39,446 169,905 151,286 Cost of service 7,176 5,997 26,576 15,300 Total cost of sales 47,435 45,443 196,481 166,586 Gross Margin 31,046 24,689 127,512 92,677 Operating Expenses Sales and marketing 6,852 5,295 25,367 18,273 General and administrative 13,349 10,865 48,208 34,288 Total operating expenses 20,201 16,160 73,575 52,561 Operating Income 10,845 8,529 53,937 40,116 Interest expense 477 160 1,410 303 Foreign currency exchange (gain) loss (272) 251 562 373 Income before income taxes 10,640 8,118 51,965 39,440 Income tax expense 2,282 1,914 10,584 7,873 Net income $ 8,358 $ 6,204 $ 41,381 $ 31,567 Earnings per share Basic $ 0.30 $ 0.22 $ 1.50 $ 1.14 Diluted $ 0.30 $ 0.22 $ 1.50 $ 1.14 Weighted Average Number of Common Shares Basic 27,616 27,613 27,614 27,613 Diluted 27,618 27,613 27,616 27,613 XPEL, Inc. Consolidated Balance Sheets (In thousands except share and per share data) December 31, 2022 December 31, 2021 Assets Current Cash and cash equivalents $ 8,056 $ 9,644 Accounts receivable, net 14,726 13,159 Inventory, net 80,575 51,936 Prepaid expenses and other current assets 3,464 3,672 Income tax receivable — 617 Total current assets 106,821 79,028 Property and equipment, net 14,203 9,898 Right-of-use lease assets 15,309 12,910 Intangible assets, net 29,294 32,733 Other non-current assets 972 791 Goodwill 26,763 25,655 Total assets $ 193,362 $ 161,015 Liabilities Current Current portion of notes payable $ 77 $ 375 Current portion of lease liabilities 3,885 2,978 Accounts payable and accrued liabilities 22,970 32,915 Income tax payable 470 — Total current liabilities 27,402 36,268 Deferred tax liability, net 2,049 2,748 Other long-term liabilities 1,070 2,631 Borrowings on line of credit 26,000 25,000 Non-current portion of lease liabilities 12,119 9,830 Non-current portion of notes payable — 76 Total liabilities 68,640 76,553 Commitments and Contingencies (Note 15) 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 11,073 10,581 Accumulated other comprehensive loss (2,203) (590) Retained earnings 115,824 74,443 Total stockholders’ equity 124,722 84,462 Total liabilities and stockholders’ equity $ 193,362 $ 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 (Unaudited) Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Net Income $ 8,358 $ 6,204 $ 41,381 $ 31,567 Interest 477 160 1,410 303 Taxes 2,282 1,914 10,584 7,873 Depreciation 947 629 3,433 1,887 Amortization 1,153 1,080 4,401 2,501 EBITDA $ 13,217 $ 9,987 $ 61,209 $ 44,131 View source version on businesswire.com: https://www.businesswire.com/news/home/20230228005656/en/
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