XPEL Announces Second Quarter 2009 Financial Results

Published 

XPEL ANNOUNCES SECOND QUARTER 2009 FINANCIAL RESULTS

– Positive Net Income for the Quarter –

SAN ANTONIO, TEXAS, September 1, 2009…XPEL Technologies Corp. (TSXV: DAP.U) announced today results for the three and six months ended June 30, 2009, as compared to the three and six months ended June 30, 2008.

XPEL’s CEO, Ryan Pape, commented, “We are pleased that we have continued to achieve net income profitability in the second quarter as we did in the first quarter of 2009. While we continue to see pressure on revenue due to the downturn in the global economy, we are seeing year-over-year sales increases in certain categories, including XPEL Protection Film, which suggests we are taking market share in key areas.”

Three and Six Months Ended June 30, 2009 compared to the Three and Six Months Ended June 30, 2008

Revenues. Revenues decreased from US$2,449,910 to US$1,849,413 or 25% between quarters and from $4,215,508 to $3,121,442, or 26% between the six-month periods. These decreases were primarily due to the downturn in the global economy and a weaker Canadian dollar.

Cost of Sales. Cost of sales for the three and six months ended June 30, 2009 were US$825,047 and US$1,326,914, respectively as compared to US$1,192,475 and US$1,916,808, for the three and six months ended June 30, 2008. Our cost of sales is primarily related to the selling of bulk paint and headlight film and third-party enabling equipment such as plotters, which are used by the Company’s DAP Partners for the production of products using the DAP software.

Expenses. General and administrative expenses for the quarter ended June 30, 2009 decreased 46% to US$782,241 from US$1,455,381 in the second quarter of 2008, while general and administrative expenses for the six months ended June 30, 2009 decreased 43% to US$1,420,606 from US$2,502,512 in the first six months of 2008. The decreased general and administrative expenses were primarily a result of decreased personnel and legal expenses.

Sales and Marketing expenses decreased US$166,454 from US$192,507 to US$26,053 from the second quarter of 2008 to the second quarter of 2009 and decreased US$439,972 from US$468,576 to US$28,604 from the six months ended June 30, 2009 to the six months ended June 30, 2008. The Company has realigned Sales and Marketing expenses to be in-line with anticipated revenues for the balance of the year.

Amortization expense of property, plant and equipment decreased slightly for both the three and six months ended June 30, 2009 as compared to the three and six months ended June 30, 2008.

The Company’s intangible assets consist of acquisition costs, intellectual property, and costs associated with the designing of patterns. The amortization of intangible assets increased approximately US$40,000 between six-month periods.

Net earnings. The Company had net earnings of US$64,908 for the quarter ended June 30, 2009 as compared to a net loss of US$3,024,795 for the quarter ended June 30, 2008 with losses of US$540,248 from continuing operations and net earnings of US$85,559 for the six months ended June 30, 2009 as compared to a net loss of US$3,591,363 for the six months ended June 30, 2008. When adjusted for non-cash expenses such as stock compensation, amortization expense, and the recovery of future tax liabilities, the adjusted net income for the quarter ended June 30, 2009 is US$179,143 as compared to an adjusted net loss of US$361,333 for the quarter ended June 30, 2008 and the adjusted net income for the six months ended June 30, 2009 is US$317,923 as compared to an adjusted net loss of US$633,413 for the six months ended June 30, 2008.

XPEL Technologies Corp. is the worldwide leader in the electronic delivery of automotive aftermarket products, utilizing the Internet as an integral component for its design, manufacturing, distribution and customer relationship strategies. The Company’s DAP software utility offers Dealers the industrys most efficient and productive tool set to better serve customers with best-in-class solutions in real-time. XPEL has clear advantages over the competition through its expansive proprietary library of installation-friendly paint and headlight protection and window tint products, coupled with a unique web-based remote manufacturing and distribution software, superior installation training curriculum and world-class facilities, with established and growing sales channels.


Certain statements contained herein (“We are pleased that we have continued to achieve net income profitability in the second quarter as we did in the first quarter of 2009. While we continue to see pressure on revenue due to the downturn in the global economy, we are seeing year-over-year sales increases in certain categories, including XPEL Protection Film, which suggests we are taking market share in key areas.”) are considered “forward-looking statements.” These statements are based upon the belief of the Company’s management, as well as assumptions made beyond information currently available to the Company’s management. Because “forward-looking statements” are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, price competition, the inability to obtain additional capital, loss of key personnel, unavailability of leased facilities, technological changes, service interruptions, equipment failures, customer attrition, general economic conditions, relationships with vendors, government supervision and regulation, changes in industry practices, the inability to settle legal disputes, and other factors.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Company Contact:

Ryan Pape
Chief Executive Officer
210-678-3700

Investor Relations:

John Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)
(203) 972-9200
[email protected]