Financial Data and Key Metrics Changes - The meeting confirmed that XPEL had 27,664,765 shares of common stock issued and outstanding as of April 15, 2025, with over 72% of eligible votes represented at the meeting [6][19]. Business Line Data and Key Metrics Changes - No specific financial data or key metrics for individual business lines were provided in the meeting. Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting. Company Strategy and Development Direction and Industry Competition - The company emphasized the importance of leveraging the creativity and quality of content created by independent dealers to enhance marketing efforts [22][23]. - XPEL has focused on manufacturing localization and product innovation, which has improved their ability to innovate and respond to regional market needs [26][27]. - The company remains cautious regarding acquisitions in light of uncertainty in the automotive market, indicating that they will not overpay for acquisitions and will continue to pursue opportunities prudently [28][31][34]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the automotive market but stated that it has not significantly impacted their acquisition appetite or strategy [28][34]. - They believe that the current market conditions do not necessitate drastic changes in their approach, maintaining a strong balance sheet allows for continued investment [34]. Other Important Information - The proposals for the election of board members, ratification of the independent accounting firm, approval of executive compensation, and adoption of the employee stock purchase plan were all approved by majority votes [19][20]. Q&A Session Summary Question: How does XPEL leverage the creativity of independent dealers in marketing? - Management highlighted the importance of amplifying content created by independent dealers through social media platforms like Instagram, indicating that they support content creators with products to enhance their marketing efforts [22][23][24]. Question: Has localization of production enhanced product innovation speed? - Management confirmed that localization has indeed enhanced their ability to innovate faster, supported by a deeper technical team and a focus on regional needs [26][27]. Question: How has uncertainty in the auto market affected acquisition strategies? - Management stated that while they remain cautious, their appetite for acquisitions has not changed significantly, and they will not overpay for opportunities [28][31][34].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) | Nevada | | 20-1117381 | | | --- | --- | --- | --- | | (State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) | | | 711 Broadway St., ...

XPEL (XPEL) Q1 2025 Earnings Call May 06, 2025 11:00 AM ET Company Participants John Nesbett - Founder & PresidentRyan Pape - Chairman, President & CEOBarry Wood - Senior VP & CFO Conference Call Participants Jeff Van Sinderen - Senior AnalystMatthew Raab - Equity Research Analyst Operator everyone, and welcome to the XPEL Incorporated First Quarter twenty twenty five Earnings Call. At this time, all participants have been placed on a listen only mode and the floor will be open for questions following the p ...

Financial Data and Key Metrics Changes - Revenue grew 15.2% to $103.8 million in Q1 2025, with a solid performance in both top and bottom lines [4] - EBITDA increased 23.2% to $14.4 million, reflecting a 14% EBITDA margin [22] - Net income rose 28.8%, resulting in an 8.3% net income margin and EPS of $0.31 per share [22] - SG&A expenses grew 14.4% to $32.8 million, with a sequential increase of about 4.5% from Q4 [21] Business Line Data and Key Metrics Changes - U.S. region revenue increased 11.6% to $58.1 million, driven by aftermarket independent channel sales [5] - Canada region revenue declined 14.9% to $9.4 million, with an adjusted decline of around 10% [7] - China revenue was $8.1 million, aligning with expectations, and efforts to evolve the go-to-market strategy are ongoing [8] - Total window film product line grew 28.1%, with automotive window tint growing 16.2% and architectural window film growing 9.6% [21] Market Data and Key Metrics Changes - The U.S. market remains the largest, representing 56% of total revenue, with strong performance noted [20] - Europe achieved its second-highest revenue quarter in history, while the Middle East saw record revenue [9] - The Canadian market sentiment is relatively poor, contrasting with the U.S. market's previous year performance [7] Company Strategy and Development Direction - The company is focused on maintaining a strong product offering and is launching additional colored films and surface protection films for architectural applications [16] - A $50 million share repurchase plan has been approved, with a priority on investing in the business through M&A [16] - The company is cautiously pursuing expansion in its services business while ensuring proper valuation for potential acquisitions [17] Management's Comments on Operating Environment and Future Outlook - Management noted uncertainty in the market due to tariffs and their potential impact on new car sales and dealership behavior [15] - The company is not currently changing its business strategy but remains focused on providing quality products and services [15] - There is optimism about Q2 revenue expectations, projected to be in the range of $117 million to $119 million [10] Other Important Information - The effective tax rate for the quarter was higher than normal at 23.9%, primarily due to foreign taxes [22] - Cash flow from operations was $3.2 million, with a strong cash position and substantial debt capacity [23] Q&A Session Summary Question: Insights on U.S. Dealer Network Velocity - Management indicated mixed responses from dealerships regarding pull-ahead demand, with some seeing it and others not [27][28] Question: Expectations for China Business - The company is working to make the supply chain more efficient and aims for a more direct business model in China [30] Question: Tariff Impact on China Business - Management stated that tariffs are a non-factor for the company due to diversified manufacturing locations [32] Question: Changes in Take Rate for Film - Management believes that pull-forward customers are not their core buyers, and metrics indicate stability in demand [39] Question: Headwinds from Dealer Inventory - The transition to steady state inventory is seen as a headwind, but it is too early to call it a significant risk [41] Question: Impact of Audi and Porsche Vehicles Held at Port - Management has not observed any significant impact from vehicles being held at port, with the end market remaining strong [43]

XPEL, Inc. (XPEL) came out with quarterly earnings of $0.31 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 24%. A quarter ago, it was expected that this company would post earnings of $0.41 per share when it actually produced earnings of $0.35, delivering a surprise of -14.63%.Over the last four quarters, the company has sur ...

Financial Performance - Total revenue increased by 15.2% to $103.8 million in Q1 2025 compared to $90.1 million in Q1 2024[3] - Net income rose by 28.8% to $8.6 million, or $0.31 per share, compared to $6.7 million, or $0.24 per share in the same quarter last year[4] - EBITDA increased by 23.2% to $14.4 million, representing 13.9% of total revenue, up from 13.0% in Q1 2024[4] - Gross margin improved to 42.3% in Q1 2025 from 42.0% in Q1 2024[9] - Total product revenue increased by 17.7% year-over-year, representing 75.8% of total revenue[9] Revenue Sources - Revenue from the United States grew by 11.6% year-over-year, contributing 56.0% of total revenue[5] - Revenue from China surged by 459.1% year-over-year, accounting for 7.8% of total revenue[5] Future Projections - The company expects Q2 2025 revenue to be approximately $117 - $119 million[7] Expenses and Investments - Operating expenses increased by 14.4% year-over-year, totaling $32.8 million[3] - The company invested $1,003 million in property, plant, and equipment during the first quarter of 2025, down from $2,017 million in the same period last year[23] Assets and Liabilities - Total assets increased to $294,822 million as of March 31, 2025, up from $285,607 million at December 31, 2024, representing a growth of 3.8%[21] - Total current assets increased to $178,299 million, up from $168,344 million, indicating a growth of 5.7%[21] - Total liabilities decreased slightly to $59,368 million from $60,152 million, a reduction of 1.3%[21] Cash Flow and Retained Earnings - Cash and cash equivalents at the end of the period rose to $23,541 million, compared to $8,614 million at the end of the same period last year, marking an increase of 173.5%[23] - Retained earnings increased to $222,699 million as of March 31, 2025, compared to $214,113 million at the end of 2024, showing a growth of 4.0%[21] - The company reported a net cash provided by operating activities of $3,228 million for the first quarter of 2025, compared to a net cash used of $4,959 million in the same quarter of 2024[23] Stock Repurchase Program - The company announced a $50 million stock repurchase program, subject to market conditions[2] Accounts Receivable - The company’s accounts receivable increased to $33,359 million as of March 31, 2025, compared to $29,146 million at December 31, 2024, representing a rise of 14.5%[21]

Company Overview - XPEL Inc. has shown significant revenue growth, increasing from $159 million in 2020 to an estimated $420 million in 2024, while maintaining operating margins in the mid-double digit range of 14-17% [1] Stock Performance - Despite the strong revenue growth, XPEL Inc.'s stock price has declined approximately 45% over the past year [1]

Revenue Dependence and Risks - The company relies heavily on a single distributor in China, which poses a significant risk to its revenue stream [26] - A substantial portion of the company's revenue is generated from the Chinese market, which is associated with various risks [26] - The company is highly dependent on the automotive industry, and any prolonged contraction in automotive sales could adversely affect its financial condition [26] Operational and Financial Risks - The company faces operational risks related to fluctuations in the cost and availability of raw materials, labor, and transportation [26] - The company has not experienced significant effects from changes in interest rates, but a hypothetical 200 basis point increase could materially impact its financial statements [255] - The company does not currently hedge its exposure to foreign currency translation adjustments, which could affect its financial results [254] - The company is exposed to inflationary pressures that may not be fully offset by price increases, adversely affecting its financial condition [256] Dividend Policy and Financial Performance - The company has not paid any cash dividends in the past and has no plans to do so in the future, potentially affecting its stock value [29] - The company may incur material losses from product liability and warranty claims, which could harm its financial performance [29] - The company acknowledges that its revenue and operating results may fluctuate, making predictions difficult and potentially leading to results that fall short of expectations [26]

Financial Data and Key Metrics Changes - The company reported total revenue of $420.4 million for the year, reflecting just over 6% growth compared to 2023 [8] - Q4 revenue excluding China grew at 10.5%, with the US region growing 6.2% to $59.1 million [9] - Gross margin for the year was 42.2%, a 120 basis point improvement over 2023, while Q4 gross margin was 40.6% [29][30] - Net income for Q4 declined 25.7% to $8.9 million, with an EPS of $0.32 per share [65] Business Line Data and Key Metrics Changes - The dealership services business had revenue growth of around 9%, but this was lower than previous quarters due to inventory normalization [9][10] - OEM revenue in Q4 declined slightly due to package changes in the Rivian program, but excluding this impact, OEM business grew approximately 16% [19][20] - The total window film product line grew 32.9% in Q4, driven primarily by automotive sales [59] Market Data and Key Metrics Changes - The China region reported revenue of $9.2 million, down from $16.6 million in the same quarter last year, making for a tough comparison [21] - The US new vehicle supply was reported at about 1.5 million units in December, indicating a return to more normal inventory levels [12] Company Strategy and Development Direction - The company aims to expand its dealership sales organization and focus on driving business through various customer channels [15][18] - There is a strategic focus on developing services in the new car dealership space, with plans to refine and implement capital deployment strategies in 2025 [43][44] - The company completed distributor acquisitions in Japan, Thailand, and India, with expectations of accelerated revenue growth post-acquisition [25][26] Management Comments on Operating Environment and Future Outlook - Management noted that 2024 was a challenging year due to macro headwinds, particularly in the aftermarket, but expressed cautious optimism for 2025 [7][38] - The sentiment in the aftermarket appears to have improved, with management feeling more clarity and focus on key operational areas [38][39] - Concerns were raised about inflation, interest rates, and potential tariffs impacting the business environment [40][41] Other Important Information - SG&A expenses grew 17.4% to $31.4 million in Q4, with a focus on managing overhead costs [30][34] - The company completed five acquisitions during the year with an aggregate purchase price of $12.5 million [68] Q&A Session Summary Question: Insights on China sell-throughs and timing for direct business - Management indicated that the sell-in and sell-through dynamics in China have improved, with inventory days lower and products selling through more consistently [72][74] Question: Outlook on gross margin and operating expenses - Management expects gross margin to remain around 42%, with some pressure from the strong dollar but opportunities for growth [76][78] Question: Marketing spend and its future - The company plans to increase marketing spend to around 3.5% of revenue in 2025, focusing on dealership and aftermarket segments [94][95]

XPEL, Inc. (NASDAQ:XPEL) Q4 2024 Earnings Conference Call February 26, 2025 11:00 AM ET Company Participants John Nesbett - IMS, Investor Relations Ryan Pape - President & Chief Executive Officer Barry Wood - Senior Vice President & Chief Financial Officer Conference Call Participants Jeff Van Sinderen - B. Riley Matthew Raab - Craig-Hallum Operator Greetings. Welcome to the XPEL, Inc. Fourth Quarter and Year End 2024 Earnings call. At this time, all participants are in a listen-only mode. A question and an ...