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XPEL Reports Record Revenue of $112.9 million in Third Quarter 2024
XPEL Reports Record Revenue of $112.9 million in Third Quarter 2024
San Antonio, TX – November 7, 2024 – XPEL, Inc. (Nasdaq: XPEL), a global provider of protective films and coatings, announced consolidated results for the third quarter of 2024.
Third Quarter 2024 Overview:
- Revenue increased 9.9% to $112.9 million in the third quarter of 2024.
- Gross margin of 42.5% in the third quarter of 2024.
- Net income grew 9.1% to $14.9 million, or $0.54 per basic and diluted share, versus net income of $13.7 million, or $0.49 per basic and diluted share in the third quarter of 2023.
- EBITDA grew 10.0% to $21.7 million, or 19.2% of revenue, compared to $19.7 million, or 19.2% of revenue in Q3 2023.
First Nine Months 2024 Overview:
- Revenue increased 7.6% to $312.9 million in the first nine months of 2024.
- Gross margin of 42.7% in the first nine months of 2024.
- Net income of $36.6 million, or $1.32 per basic and diluted share, versus net income of $40.8 million, or $1.48 per basic and diluted share in the first nine months of 2023.
- EBITDA of $55.2 million, or 17.6% of revenue, compared to $59.2 million, or 20.4% of revenue in the first nine months of 2023.
Ryan Pape, President and CEO of XPEL, commented, "We saw good performance in the third quarter with solid top and bottom line growth, particularly in the US region where we had record revenue. We look forward to capitalizing on this momentum to close out the year."
Financial Highlights for the Third Quarter 2024:
| Metric | 2024 | % of Total Revenue | 2023 | % of Total Revenue | % Change |
|---|---|---|---|---|---|
| Total revenue | $112,852 | 100.0% | $102,677 | 100.0% | 9.9% |
| Gross margin | $47,916 | 42.5% | $41,529 | 40.4% | 15.4% |
| Operating expenses | $29,529 | 26.2% | $23,900 | 23.3% | 23.6% |
| Operating income | $18,387 | 16.3% | $17,629 | 17.2% | 4.3% |
| Net income | $14,892 | 13.2% | $13,656 | 13.3% | 9.1% |
| EBITDA | $21,698 | 19.2% | $19,718 | 19.2% | 10.0% |
Geographical Revenue Summary
| Region | 2024 | 2023 | % Change | % of Total Revenue 2024 | % of Total Revenue 2023 |
|---|---|---|---|---|---|
| United States | $64,565 | $59,002 | 9.4% | 57.2% | 57.5% |
| Canada | $14,415 | $11,471 | 25.7% | 12.8% | 11.2% |
Conference Call Information
The Company will host a conference call and webcast on November 7, 2024, at 11:00 a.m. Eastern Time to discuss third quarter results.
- Webcast: XPEL, Inc. website
- Phone: 888-506-0062 (International: 973-528-0011) - Access code: 861781
- Replay available until December 7, 2024 at 877-481-4010 (International: 919-882-2331) - Conference ID: 51306
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. XPEL, Inc. is publicly traded on Nasdaq under the symbol “XPEL”.
XPEL, Inc. Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
| Three Months Ended September 30 | Nine Months Ended September 30 | |||
|---|---|---|---|---|
| Metric | 2024 | 2023 | 2024 | 2023 |
| Net income | $14,892 | $13,656 | $36,591 | $40,830 |
| Depreciation of property, plant and equipment | $1,504 | $1,199 | $4,308 | $3,229 |
| Amortization of intangible assets | $1,476 | $1,288 | $4,327 | $3,660 |
| Gain on sale of property and equipment | ($6) | ($1) | ($35) | ($11) |
| Stock compensation | $862 | $486 | $2,329 | $1,144 |
| Provision for credit losses | $91 | $60 | $279 | $216 |
| Deferred income tax | ($553) | ($250) | ($1,414) | ($844) |
| Accounts receivable, net | $279 | ($462) | ($5,475) | ($9,483) |
| Inventory, net | ($3,592) | ($10,000) | $5,174 | ($11,583) |
| Prepaid expenses and other current assets | ($1,477) | ($6,313) | ($2,785) | ($7,288) |
| Income taxes receivable and payable | $957 | $457 | $370 | $320 |
| Accounts payable and accrued liabilities | $5,127 | $11,008 | ($2,172) | $18,311 |
| Net cash provided by operating activities | $19,559 | $11,128 | $41,497 | $38,501 |
| Purchase of property, plant and equipment | ($1,257) | ($1,434) | ($5,085) | ($4,741) |
| Proceeds from sale of property and equipment | $40 | ($4) | $40 | $20 |
| Acquisition of businesses, net of cash acquired | ($592) | ($240) | ($6,520) | ($4,697) |
| Development of intangible assets | ($580) | ($281) | ($1,421) | ($798) |
| Net cash used in investing activities | ($2,389) | ($1,959) | ($12,986) | ($10,216) |
| Net payments on revolving line of credit | ($11,000) | ($13,000) | ($19,000) | ($26,000) |
| RSUs withheld in lieu of payroll taxes | ($88) | ($138) | ($175) | ($167) |
| Repayments of notes payable | ($13) | – | ($44) | ($77) |
| Net cash used in financing activities | ($11,101) | ($13,138) | ($19,219) | ($26,244) |
| Net change in cash and cash equivalents | $6,069 | ($3,969) | $9,292 | $2,041 |
| Foreign exchange impact on cash and cash equivalents | ($67) | $45 | $85 | $277 |
| Increase/(Decrease) in cash and cash equivalents during the period | $6,002 | ($3,924) | $9,377 | $2,318 |
| Cash and cash equivalents at beginning of period | $14,984 | $14,298 | $11,609 | $8,056 |
| Cash and cash equivalents at end of period | $20,986 | $10,374 | $20,986 | $10,374 |
Supplemental Schedule of Non-Cash Activities
| Non-cash lease financing | $1,172 | $36 | $6,210 | $1,847 |
| Issuance of common stock for vested restricted stock units | $438 | $740 | $900 | $874 |
| Cash paid for income taxes | $3,458 | $3,334 | $10,256 | $11,144 |
| Cash paid for interest | $151 | $111 | $995 | $1,000 |
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)
| Three Months Ended September 30 | Nine Months Ended September 30 | |||
|---|---|---|---|---|
| Metric | 2024 | 2023 | 2024 | 2023 |
| Net Income | $14,892 | $13,656 | $36,591 | $40,830 |
| Interest | $97 | $85 | $962 | $946 |
| Taxes | $3,730 | $3,490 | $9,033 | $10,553 |
| Depreciation | $1,504 | $1,199 | $4,308 | $3,229 |
| Amortization | $1,475 | $1,288 | $4,327 | $3,660 |
| EBITDA | $21,698 | $19,718 | $55,221 | $59,218 |