XPEL Technologies Corp. Press Release
Chief Executive Officer
XPEL ANNOUNCES THIRD QUARTER 2009 RESULTS
- 3rd Consecutive Quarter of Net Income from Operations -
- Return to Positive Working Capital -
December 1, 2009...XPEL Technologies Corp. (TSXV: DAP.U) announced today results for the three and nine months ended September 30, 2009, as compared to the three and nine months ended September 30, 2008.
XPEL's CEO, Ryan Pape, stated, "XPEL has now achieved its third consecutive quarter of positive net income from operations. Our goal for 2009 has been to significantly strengthen our balance sheet with a particular focus on reducing our liabilities. With stability in our operations, our focus is on growing the business by expanding our product offering, attracting new installers and taking market share as the automotive industry recovers."
Mr. Pape added, "In addition to providing the most optically clear, and most flexible Paint Protection Film in the market, our complete 'system' approach remains the only comprehensive solution for the paint protection film industry."
Three and Nine Months Ended September 30, 2009 compared to the Three and Nine Months Ended September 30, 2008
Revenues: Revenues decreased from US$1,164,779 to US$994,250 or 15% between quarters and from $3,488,175 to $2,922,026, or 16% between the nine-month periods. The decreases were primarily due to the downturn in the global economy and sluggish auto sales.
Net earnings (loss): The Company incurred a net income loss of (US$638,904) for the quarter ended September 30, 2009 with earnings of $67,628 from continuing operations as compared to net income of US$255,262 for the quarter ended September 30, 2008 with earnings of US$153,339 from continuing operations.
The Company incurred a one time loss on the sale of XPEL Canada of US$756,118 during the third quarter of 2009.
The Company had a net loss of (US$553,345) for the nine months ended September 30, 2009 with earnings of US$154,952 from continuing operations. This is compared to a net loss of (US$3,336,101) for the nine months ended September 30, 2008 with losses of (US$983,192) from continuing operations.
Cost of Sales: Cost of sales decreased from US$455,748 to US$398,279, and remained consistent as a percentage of revenues of 40% between quarters. For the nine month periods cost of sales decreased from US$1,563,524 to US$1,186,357, and decreased as a percentage of revenues to 41%.
Expenses: General and administrative expenses increased 2% to US$426,751 from US$417,138 in the third quarter of 2009 as compared to the third quarter of 2008. A one-time reduction in legal fees of US$95,000 was recognized in 2008. Excluding this one-time credit, general and administrative expenses have decreased 17% or US$85,387 in the third quarter of 2009 as compared to the same period in 2008. General and administrative expenses decreased 41% to US$1,266,652 from US$2,148,620 in the first nine months of 2009 as compared to the first nine months ended 2008. The decrease for the nine months ended September 30, 2009 were primarily a result of decreased personnel and legal expenses.
Sales and Marketing expenses decreased US$35,096 from US$58,096 to US$23,000 from the third quarter of 2008 to the third quarter of 2009 but decreased significantly by US$480,369 from US$526,673 to US$46,304 from the nine months ended September 30, 2008 to the nine months ended September 30, 2009.
Amortization expense of property, plant and equipment decreased slightly to US$13,077 from US$19,396 between quarters and decreased 32% to US$39,300 from US$58,112 between the nine-month periods.
The Companys intangible assets consist of intellectual property and the costs associated with the designing of patterns. As a result, the amortization of intangible assets increased approximately US$10,340 between quarters and approximately US$63,016 between nine-month periods.
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 industry's 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. Additional information can be found on the company website at www.xpel.com.
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