XPEL Announces Q1 2017 Results
XPEL Reports First Quarter Revenue Growth of 12%
San Antonio, TX – May 25, 2017 — XPEL Technologies Corp. (TSXV: DAP.U), a leading supplier of automotive paint protection and window films, announced results for the first quarter ended March 31, 2017.
Mr. Ryan Pape, President and Chief Executive Officer of XPEL, commented, “The first quarter was a transitional quarter for us. We saw the last of our litigation related legal expenses as well as the last of our supply interruption issues and related expenses, closing the quarter with record revenue in the month of March. We continue to see strong customer demand across all of our product lines.
“As a continuation of our core ’Get Close to the Customer’ strategy, during the quarter we established a new warehouse location in Dubai, UAE which places inventory closer to our customers in this area giving them the ability to significantly shorten their sales cycles and drive the acceleration of revenue in this underpenetrated market,” Pape said. Due to timing, the establishment of the Dubai warehouse reduced revenue growth by approximately 4% for the quarter.
During the quarter, XPEL hosted a successful dealer conference that was attended by nearly 200 customers. “Not only did our dealer conference jump start our selling season, but it gave us the opportunity to engage with our customers to exchange valuable information and ideas which will ultimately enhance their businesses and enable XPEL to better meet their needs,” Pape stated.
Mr. Pape concluded, “We accomplished some big priorities in the first quarter and I am more excited than ever about our momentum and prospects for accelerated top and bottom line growth in the months to come.”
For the Quarter Ended March 31, 2017:
Revenue: Revenue in the first quarter of fiscal 2017 was $12.6 million, an 11.8% increase compared to revenue of $11.3 million in the prior year. The revenue increase is primarily related to increased sales of XPEL’s core products of automotive protection film and window tint.
Gross Margin: Gross profit as a percentage of sales was 26.4% as compared to 29.1% in the first quarter last year. Gross profit in the quarter was impacted by higher warranty costs which the company expects to decrease in future quarters. Direct costs include the costs of our physical goods, the costs related to our Design Access Program software, and the costs of labor directly associated with the production of product.
Expenses: Selling, general and administrative expenses increased to $3.3 million or 26.3% of revenue as compared to $2.4 million or 20.9% of revenue in the first quarter of 2016. The expense increase in the quarter included non-recurring legal fees and costs associated with the Company-sponsored dealer conference.
EBITDA: Earnings Before Interest, Taxes Depreciation and Amortization (EBITDA) decreased to $0.4 million as compared to EBITDA of $1.1 million in the same prior year quarter.
Net Loss: Net loss for the fiscal 2017 first quarter was ($0.065 million) or ($0.002) per basic and diluted share, compared with net income of $0.697 million or $0.027 per basic and diluted share, for the corresponding prior year period.
Conference Call Information
The Company will host a conference call to discuss the first quarter results today, May 25, 2017, at 11:00 a.m. Eastern Time.
To access the live webcast, log onto the XPEL Technologies website at http://www.xpel.com, and click on “Investor Relations” under the “Company” header.
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 June 25, 2017 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 10376.
About XPEL Technologies Corp.
XPEL leads the industry in designing, manufacturing and distributing high-performance automotive paint and headlamp protection film technologies. Using XPEL’s proprietary software and materials, our professional design team develops products that deliver the ultimate in vehicle protection, meeting the demands of a broad range of makes and models. With more than 70,000 vehicle-specific applications and a global network of trained installers, XPEL is dedicated to exceeding customer expectations in providing high-quality products, customer service and technical support. XPEL Technologies Corp. (TSXV: DAP.U) is publicly traded on the TSXV Exchange. Visit www.xpel.com for more information.
Safe harbor statement
This release includes forward-looking statements regarding XPEL Technologies Corp. 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.
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.
For more information, contact:
John Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)
Phone: (203) 972-9200
Full Financial Information available here: XPEL Q1 2017 Results