XPEL Reports Record Revenue in Fourth Quarter 2020 of $48.6 million; Fourth Quarter Revenue Increase of 23.1%; Full Year Revenue Increase of 22.3%

SAN ANTONIO--()--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, 2020.

Fourth Quarter 2020 Highlights:

  • Revenues increased 23.1% to $48.6 million compared to fourth quarter 2019 and increased 5.4% sequentially as compared to third quarter 2020
  • Net income grew 31.8% to $6.1 million, or $0.22 per basic and diluted share, compared to $4.6 million, or $0.17 per basic and diluted share, in the same quarter of 2019
  • EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) grew 45.3% to $8.1 million, or 16.6% of revenues compared to $5.6 million, or 14.1% in fourth quarter 20191

Full Year Highlights

  • Revenues increased 22.3% to $158.9 million compared to full year 2019.
  • Net income increased 30.6% to $18.3 million, or $0.66 per basic and diluted share, compared to $14.0 million, or $0.51 per basic and diluted share, in 2019
  • EBITDA grew 34.9% to $25.3 million, or 15.9% of revenues, as compared to $18.7 million, or 14.4% of revenues in 20191

Ryan Pape, President and Chief Executive Officer of XPEL, commented, “We closed out a strong year by delivering record fourth quarter results – our second consecutive quarter reaching record levels. The XPEL brand continues to grow around the world, and as we move through 2021 we’re focused on continuing the momentum achieved in the back half of 2020.”

The Company also announced the filing of an automatic “shelf” registration statement on Form S-3. Under this shelf registration statement, the Company may sell from time to time in one or more offerings, various series of debt securities, common stock, or other securities.

Barry Wood, Senior Vice President and Chief Financial Officer of XPEL, commented, “While we have no current plans to raise capital, this registration statement provides flexibility and maximizes our optionality in raising capital should the need arise in the future as we execute on our multi-faceted growth strategy."

For the Quarter Ended December 31, 2020:

Revenues. Revenues increased approximately $9.1 million or 23.1% to $48.6 million as compared to $39.5 million in the fourth quarter of the prior year.

Gross Margin. Gross margin was 32.8% compared to 31.5% in the fourth quarter of 2019.

Expenses. Operating expenses increased slightly to $8.6 million, but decreased as a percentage of sales to 17.7%, compared to $7.5 million or 18.9% of sales in the prior year period.

Net income. Net income was $6.1 million, or $0.22 per basic and diluted share versus net income of $4.6 million, or $0.17 per basic and diluted share in the fourth quarter of 2019.

EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $8.1 million, or 16.6% of sales, as compared to $5.6 million in the prior year1.

For the Year Ended December 31, 2020:

Revenues. Revenues increased approximately $29.0 million or 22.3% to $158.9 million as compared to $129.9 million in 2019.

Gross Margin. Gross margin improved to 34.0% compared 33.5% in full year 2019.

Expenses. Operating expenses increased to $30.7 million, and decreased to 19.3% of sales, compared to $26.4 million or 20.3% of sales in 2019.

Net income. Net income was $18.3 million, or $0.66 per basic and diluted share versus net income of $14 million, or $0.51 per basic and diluted share for 2019.

EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $25.3 million, or 15.9% of sales, as compared to $18.7 million in 20191.

As of December 31, 2020, XPEL had cash and cash equivalents of $29.0 million compared to $11.5 million at December 31, 2019.

1 See reconciliation of non-GAAP financial measures below

Conference Call Information

The Company will host a conference call and webcast on Wednesday, March 11, 2021 at 11:00 a.m. Eastern Time to discuss the Company’s results for the fourth quarter and year end 2020.

To access the live webcast, please visit the XPEL, Inc. website at www.xpel.com/investor.

To participate in the call by phone, dial (877) 407-8033 approximately five minutes prior to the scheduled start time. International callers please dial (201) 689-8033.

A replay of the teleconference will be available until April 11, 2021 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 40119.

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.

This press release is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

XPEL Inc.

Consolidated Statements of Income

 

 

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2020

 

2019

 

2018

 

2020

 

2019

 

2018

Revenue

 

 

 

 

 

 

 

 

 

 

 

Product revenue

$

42,021,771

 

 

$

34,909,276

 

 

$

23,027,479

 

 

$

136,262,067

 

 

$

112,204,739

 

 

$

95,526,350

 

Service revenue

6,585,560

 

 

4,586,007

 

 

3,765,400

 

 

22,662,381

 

 

17,728,142

 

 

14,394,264

 

Total revenue

48,607,331

 

 

39,495,283

 

 

26,792,879

 

 

158,924,448

 

 

129,932,881

 

 

109,920,614

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales

 

 

 

 

 

 

 

 

 

 

 

Cost of product sales

30,814,288

 

 

25,785,422

 

 

17,624,227

 

 

98,502,279

 

 

82,308,256

 

 

73,656,389

 

Cost of service

1,833,831

 

 

1,252,725

 

 

752,571

 

 

6,397,160

 

 

4,118,366

 

 

2,827,620

 

Total cost of sales

32,648,119

 

 

27,038,147

 

 

18,376,798

 

 

104,899,439

 

 

86,426,622

 

 

76,484,009

 

Gross Margin

15,959,212

 

 

12,457,136

 

 

8,416,081

 

 

54,025,009

 

 

43,506,259

 

 

33,436,605

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

2,758,614

 

 

2,115,397

 

 

1,867,047

 

 

9,748,292

 

 

7,584,377

 

 

6,802,241

 

General and administrative

5,868,645

 

 

5,367,845

 

 

3,970,547

 

 

20,906,785

 

 

18,834,535

 

 

14,828,361

 

Total operating expenses

8,627,259

 

 

7,483,242

 

 

5,837,594

 

 

30,655,077

 

 

26,418,912

 

 

21,630,602

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

7,331,953

 

 

4,973,894

 

 

2,578,487

 

 

23,369,932

 

 

17,087,347

 

 

11,806,003

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

76,000

 

 

15,015

 

 

33,004

 

 

249,480

 

 

96,646

 

 

168,389

 

Foreign currency exchange (gain) loss

(104,334)

 

 

(111,586)

 

 

47,634

 

 

316,093

 

 

40,273

 

 

156,309

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

7,360,287

 

 

5,070,465

 

 

2,497,849

 

 

22,804,359

 

 

16,950,428

 

 

11,481,305

 

Income tax expense

1,271,888

 

 

451,991

 

 

600,477

 

 

4,522,668

 

 

2,955,356

 

 

2,760,073

 

Net income

6,088,399

 

 

4,618,474

 

 

1,897,372

 

 

18,281,691

 

 

13,995,072

 

 

8,721,232

 

Income attributed to non-controlling interest

 

 

8,136

 

 

3,498

 

 

 

 

17,447

 

 

8,698

 

Net income attributable to stockholders of the Company

$

6,088,399

 

 

$

4,610,338

 

 

$

1,893,874

 

 

$

18,281,691

 

 

$

13,977,625

 

 

$

8,712,534

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable stockholders of the Company

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

$

0.22

 

 

$

0.17

 

 

$

0.07

 

 

$

0.66

 

 

$

0.51

 

 

$

0.32

 

Weighted Average Number of Common Shares

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

27,612,597

 

 

27,612,597

 

 

27,612,597

 

 

27,612,597

 

 

27,612,597

 

 

27,612,597

 

 

 

 

 

 

 

 

 

 

 

 

 

XPEL Inc.

Consolidated Balance Sheets

 

 

December 31,
2020

 

December 31,
2019

Assets

 

 

 

Current

 

 

 

Cash and cash equivalents

$

29,027,124

 

 

$

11,500,973

 

Accounts receivable, net

9,944,213

 

 

7,154,084

 

Inventory, net

22,364,126

 

 

15,141,153

 

Prepaid expenses and other current assets

1,441,749

 

 

2,391,340

 

Income tax receivable

 

 

93,150

 

Total current assets

62,777,212

 

 

36,280,700

 

Property and equipment, net

4,706,248

 

 

4,014,653

 

Right-of-use lease assets

5,973,702

 

 

5,079,110

 

Intangible assets, net

5,423,980

 

 

3,820,460

 

Other non-current assets

486,472

 

 

 

Goodwill

4,472,217

 

 

2,406,512

 

Total assets

$

83,839,831

 

 

$

51,601,435

 

Liabilities

 

 

 

Current

 

 

 

Current portion of notes payable

$

2,568,172

 

 

$

462,226

 

Current portion of lease liabilities

1,650,749

 

 

1,126,701

 

Accounts payable and accrued liabilities

16,797,462

 

 

10,197,353

 

Income tax payable

183,961

 

 

 

Total current liabilities

21,200,344

 

 

11,786,280

 

Deferred tax liability, net

627,806

 

 

604,715

 

Other long-term liabilities

729,408

 

 

 

Non-current portion of lease liabilities

4,331,214

 

 

4,009,949

 

Non-current portion of notes payable

3,568,191

 

 

307,281

 

Total liabilities

30,456,963

 

 

16,708,225

 

Commitments and Contingencies (Note 14)

 

 

 

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; 27,612,597 issued and outstanding

27,613

 

 

27,613

 

Additional paid-in-capital

10,412,471

 

 

11,348,163

 

Accumulated other comprehensive income (loss)

66,215

 

 

(908,764)

 

Retained earnings

42,876,569

 

 

24,594,878

 

 

53,382,868

 

 

35,061,890

 

Non-controlling interest

 

 

(168,680)

 

Total stockholders’ equity

53,382,868

 

 

34,893,210

 

Total liabilities and stockholders’ equity

$

83,839,831

 

 

$

51,601,435

 

Reconciliation of Non-GAAP Financial Measure

EBITDA is a non-GAAP financial measure. EBITDA is defined as net income (loss) plus interest expense plus income tax expense plus depreciation expense and amortization expense. EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. It is not a measurement of our financial performance under GAAP and should not be considered as alternatives to revenue or net income, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA has limitations as an analytical tool and you should not consider it in isolation or as a substitute for analysis of our operating results as reported under GAAP.

EBITDA does not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of ongoing operations and other companies in our industry may calculate EBITDA differently than we do, limiting its usefulness as a comparative measure.

 

EBITDA Reconciliation (Unaudited)

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2020

 

2019

 

2018

 

2020

 

2019

 

2018

Net Income

$

6,088,399

 

 

$

4,618,474

 

 

$

1,897,372

 

 

$

18,281,691

 

 

$

13,995,072

 

 

$

8,721,232

 

Interest

76,000

 

 

15,015

 

 

33,004

 

 

249,480

 

 

96,646

 

 

168,389

 

Taxes

1,271,888

 

 

451,991

 

 

600,477

 

 

4,522,668

 

 

2,955,356

 

 

2,760,073

 

Depreciation

384,275

 

 

260,533

 

 

196,604

 

 

1,274,095

 

 

915,918

 

 

735,983

 

Amortization

250,245

 

 

210,151

 

 

170,126

 

 

955,937

 

 

781,105

 

 

642,801

 

EBITDA

$

8,070,807

 

 

$

5,556,164

 

 

$

2,897,583

 

 

$

25,283,871

 

 

$

18,744,097

 

 

$

13,028,478

 

 

Contacts

Investor Relations:
John Nesbett/Jennifer Belodeau
IMS Investor Relations
Phone: (203) 972-9200
Email: jnesbett@institutionalms.com

Release Summary

XPEL 4Q20

Contacts

Investor Relations:
John Nesbett/Jennifer Belodeau
IMS Investor Relations
Phone: (203) 972-9200
Email: jnesbett@institutionalms.com