XPEL Announces 1st Quarter 2009 Financial Results
XPEL ANNOUNCES 1ST QUARTER 2009 FINANCIAL RESULTS
– Positive Net Income for the Quarter –
– Chris Coffee Appointed CFO –
SAN ANTONIO, TEXAS, June 1, 2009…XPEL Technologies Corp. (TSXV: DAP.U) announced today results for the three months ended March 31, 2009, as compared to the three months ended March 31, 2008.
XPELs Interim CEO, Ryan Pape, commented, “In the first quarter of 2009, we achieved net income profitability for the first time for any First Quarter period since the company has been publicly traded. The reorganization and streamlining of the Company initiated in the second half of 2008 is working. While we are currently seeing pressure on revenue from the global economic downturn and the weak Canadian Dollar, we are optimistic we can sustain profitable operations for the foreseeable future.”
Three Months Ended March 31, 2009 compared to the Three Months Ended March 31, 2008
Revenues. Revenues decreased from $1,765,598 to $1,272,029, or 28% between periods. The decrease in revenues is primarily a result of decreases in Design Access Program fees, installation, kit and material sales between periods. Installation, kit and material sales decreased $370,050 or 30% between quarters and decreased as a percentage of total revenues to 67% of our total revenues for the quarter ended March 31, 2009. Design access fees decreased $117,467 or 24% between periods and other revenue decreased $6,052 or 15% between periods. These decreases were primarily due to the downturn in the global economy, automotive industry and the weakening of the Canadian dollar.
Cost of Sales. Cost of sales decreased from $724,333 to $501,867, and decreased as a percentage of revenues to 39%. Our cost of sales is primarily related to the selling of paint and headlamp protection film in bulk form and as pre-cut kits, chemical products and cutting equipment to support the Companys Design Access Program software.
Expenses. General and administrative expenses decreased 40% to $629,714 from $1,047,131 in the first quarter of 2008. The decreased general and administrative expenses were primarily a result of decreased personnel and legal expenses.
Sales and Marketing expenses decreased $273,518 from $276,069 to $2,551 from the first quarter of 2008 to the first quarter of 2009. After 2008, the company has redirected its sales and marketing efforts to less costly and more effective methods of marketing its products.
Net earnings (loss). The Company had net earnings of $20,651 for the quarter ended March 31, 2009 due primarily to decreases in general and administrative and sales and marketing expenses. This is compared to a net loss of $566,568 for the quarter ended March 31, 2008 with losses of $359,509 from continuing operations. 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 March 31, 2009 is $138,780 as compared to an adjusted net loss of $272,080 for the quarter ended March 31, 2008.
Additionally, the Company has announced that Chris Coffee, currently the Companys Corporate Controller, will replace J. Christopher Cuevas as Chief Financial Officer. Mr. Cuevas has served as CFO since October 2004 and has been serving in a consulting capacity since May 2008 in anticipation of the transition. Mr. Cuevas is leaving the Company to pursue another opportunity.
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 (The reorganization and streamlining of the company initiated in the second half of 2008 is working. While we are currently seeing pressure on revenue from the global economic downturn and the weak Canadian Dollar, we are optimistic we can sustain profitable operations for the foreseeable future) 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.
Chief Executive Officer
John Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)