Revenue Breakdown - Surface and Paint Protection film sales represented 68.6% of consolidated revenue for the year ended December 31, 2021[44]. - Automotive window film sales accounted for 13.6% of the company's consolidated revenue for the year ended December 31, 2021[48]. - Architectural window film sales represented less than 2.0% of the company's consolidated revenue for the year ended December 31, 2021[50]. - Monthly subscriptions for the Design Access Program (DAP) contributed 1.7% to the company's consolidated revenue for the year ended December 31, 2021[51]. - Installation services, including product and labor revenue, represented 11.1% of the company's consolidated revenue for the year ended December 31, 2021[52]. - Approximately 54% of the company's consolidated revenue was generated through independent installers and new car dealerships for the year ended December 31, 2021[61]. - Approximately 28% of the company's consolidated revenue was derived from third-party distributors for the year ended December 31, 2021[65]. - The China Distributor accounted for approximately 18% of the company's consolidated revenue for the year ended December 31, 2021[66]. International Expansion - The company began its international expansion in 2014 by establishing an office in the United Kingdom[36]. - The company expanded its presence in France and acquired assets of France Auto Racing in 2020[39]. - The company acquired several businesses in the United States, Canada, and the United Kingdom during 2021 to enhance its market presence[58]. Product Development - The ULTIMATE product line, introduced in 2011, was the industry's first protective film with self-healing properties, contributing to strong revenue growth[35]. - XPEL ULTIMATE PLUS is the flagship product, a self-healing, stain-resistant film with exceptional clarity and durability[38]. - XPEL ULTIMATE FUSION, the newest paint protection film, includes a hydrophobic top-coat for enhanced performance[40]. Operational Risks - The company relies on one distributor for sales of its products in China, which poses a risk due to trade tensions[14]. - The company is exposed to a wide range of risks due to its multinational operations and must manage rapid growth effectively[14]. - The company is subject to various domestic and international anti-corruption laws, increasing exposure as international presence expands[83]. - Compliance with the GDPR and California Consumer Privacy Act may increase operational costs and complexity for the company[84]. - The company has incurred costs to maintain compliance with environmental, health, and safety laws, although these costs have not been material to date[85]. Financial Management - A hypothetical 100 basis point increase in variable interest rates could materially impact the company's financial statements[243]. - The company does not currently hedge its exposure to foreign currency translation adjustments, which may affect financial results[241]. - The company has not experienced significant effects from changes in interest rates during the periods presented[243]. - The company is subject to market risks related to borrowings under its revolving line of credit, which are influenced by interest rate changes[242]. Intellectual Property - The company owns numerous intellectual property rights, which provide a competitive advantage and are actively protected[86]. - The company has processes in place to protect its intellectual property assets globally and intends to continue enforcing its rights[87]. Workforce - The company employs approximately 709 people as of December 31, 2021, with 493 in the United States and 216 internationally[88]. Installation Centers - The company operates 11 Company-owned installation centers, which represented approximately 5% of consolidated revenue for the year ended December 31, 2021[70]. Supplier Dependency - The company sources approximately 75% of its inventory purchases from one supplier, entrotech inc., under a supply agreement set to terminate on March 21, 2022[78].

XPEL, Inc. (NASDAQ:XPEL) Q3 2021 Earnings Conference Call November 9, 2021 11:00 AM ET Company Participants John Nesbett – Investor Relations Ryan Pape – President and Chief Executive Officer Barry Wood – Senior Vice President and Chief Financial Officer Conference Call Participants Steve Dyer – Craig-Hallum Jeff Van Sinderen – B. Riley Operator Good morning, ladies and gentlemen, and welcome to the XPEL, Inc. Third Quarter 2021 Earnings Call. [Operator Instructions] It is now my pleasure to turn the floor ...

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 September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38858 XPEL, INC. (Exact name of registrant as specified in its charter) Nevada 20-1117381 (State or other jurisdiction of in ...

Financial Data and Key Metrics Changes - Revenue grew 92% year-over-year to a record $68.7 million, with a sequential growth of 32.5% from the previous quarter [8][30] - Gross margin for the quarter increased to 36.7% from 32.8% in Q2 2020, reflecting a strong performance despite challenges [24][34] - EBITDA margin finished at 19.8%, with net income margin at 14.8%, indicating significant operational leverage [26][36] Business Line Data and Key Metrics Changes - Product revenue grew 89.5% to approximately $58.7 million, with paint protection film growing 86.6% to $45.2 million [32] - Service revenue more than doubled for the quarter, growing 79.3% for the first half of the year [33] - Total installation revenue grew 124%, representing 9.3% of total revenue for the quarter [33] Market Data and Key Metrics Changes - U.S. revenue grew 112.8% year-over-year to $34.3 million, constituting nearly 50% of total revenue [15] - Canada posted record revenue of $8.9 million, while continental Europe grew 80% to $5.2 million [10][12] - Latin America grew over 100% from a small base, and the Middle East grew over 300% [14] Company Strategy and Development Direction - The company is focused on expanding its direct sales capability in Latin America and investing in Europe [11][14] - The acquisition of PermaPlate film is seen as a strategic move to enhance product offerings and market reach [17][50] - The company plans to continue integrating PermaPlate film and expects to achieve a targeted EBITDA run rate of approximately $6 million by year-end [36][38] Management's Comments on Operating Environment and Future Outlook - Management noted that new car inventory shortages are beginning to impact car sales, with July new car sales down 8% from June [22] - Despite potential challenges from inventory issues, the company remains optimistic about its revenue run rate and overall performance [23][24] - Management expects Q3 revenue to be slightly lower than Q2, indicating a cooling off from an exceptional quarter [21] Other Important Information - The company is actively pursuing acquisitions and has a robust pipeline, supported by a new $57 million credit facility [38] - Cash flow from operations was solid at $10.1 million, with higher-than-normal CapEx due to warehouse build-out [37] Q&A Session Summary Question: Impact of new car sales inventory on business - Management indicated that while new car sales are experiencing pressure from inventory shortages, the attach rate for products on sold vehicles continues to increase [41][42] Question: Pricing strategy in the second half of the year - Management confirmed that they are considering price increases in response to rising costs across various areas, but do not expect significant negative impacts on margins [43] Question: Integration of PermaPlate acquisition - Management reported that the integration of PermaPlate is progressing well, with operational and financial integration largely complete [49][50] Question: Outlook for the Chinese market - Management expressed confidence in the strong performance in China but noted potential near-term uncertainties due to increased COVID prevalence and lockdown pressures [47][48]

Revenue Performance - The Company reported total revenue of $120.6 million for the six months ended June 30, 2021, a 88% increase compared to $64.2 million for the same period in 2020[47] - The Company recognized $68.7 million in total revenue for the three months ended June 30, 2021, compared to $35.8 million for the same period in 2020, marking a 92% increase[47] - Total revenue for the three months ended June 30, 2021, was $68.74 million, a 91.8% increase from $35.81 million in the same period of 2020[48] - Pro forma combined revenue for the six months ended June 30, 2021, was $130,481,516, representing a 78.3% increase from $73,227,881 in 2020[75] Product Revenue - Product revenue for the six months ended June 30, 2021, was $103.6 million, up 89% from $54.7 million in the same period of 2020[47] - Paint protection film revenue for the six months ended June 30, 2021, was $81 million, a 84% increase from $44 million in the same period of 2020[47] Acquisitions - The Company acquired PermaPlate Film LLC for $30 million, funded with cash on hand, to expand its distribution and installation capabilities in the automotive window film market[28] - The company completed the acquisition of PermaPlate Film LLC for $30 million on May 25, 2021, aimed at market expansion[70] - The acquisition of PermaPlate Film was completed for a total purchase price of $30 million, with cash allocation of $30 million[72] - The consolidated revenue from the acquired company for the six months ended June 30, 2021, was $2,474,496, and the net income was $367,647[74] Financial Position - The Company entered into a new $57 million revolving line of credit facility to enhance its liquidity and financial flexibility[27] - The company has a $57 million revolving line of credit established on May 21, 2021, to fund working capital needs[55] - Warranty liabilities decreased to $45,764 as of June 30, 2021, from $52,006 as of December 31, 2020, reflecting adjustments based on historical claims data[35] - The Company’s accounts receivable allowance for doubtful accounts was $116,268 as of June 30, 2021, compared to $90,844 as of December 31, 2020[34] - The Company’s balance of contract liabilities was $619,463 as of June 30, 2021, reflecting payments received for which performance obligations have not yet been satisfied[47] - Total property and equipment increased to $12.85 million as of June 30, 2021, compared to $9.21 million at the end of 2020[49] - Intangible assets, net, rose to $21.90 million as of June 30, 2021, from $5.42 million at the end of 2020[51] - Inventory increased to $25.73 million as of June 30, 2021, compared to $22.36 million at the end of 2020[54] - Trade payables increased to $17.77 million as of June 30, 2021, from $12.99 million at the end of 2020[61] Expenses and Liabilities - Depreciation expense for the three months ended June 30, 2021, was $419,607, compared to $293,860 in the same period of 2020[49] - The fair value of contingent liabilities related to acquisitions was $475,031 as of June 30, 2021, down from $571,833 at the end of 2020[68] Goodwill and Intangible Assets - Goodwill from the acquisition, amounting to $11,271,949, is tax-deductible and reflects expected synergies and employee knowledge[73] - The intangible assets acquired have a weighted average useful life of 9 years and will be amortized on a straight-line basis[72] Risk Factors - The company does not currently hedge its exposure to foreign currency translation adjustments, which may impact financial statements[136] - A hypothetical 100 basis point increase in variable interest rates could have a material impact on the company's financial statements if borrowing occurs[137] Stock Options - The company granted 17,520 Restricted Stock Units (RSUs) to key executives at a grant price of $84.19 per unit, vesting over four years[76] Customer Concentration - The largest customer accounted for 18.4% of net sales in Q2 2021, down from 27.9% in Q2 2020[48] Operating Segments - The Company operates as a single operating segment, with its chief operating decision maker reviewing consolidated results monthly to evaluate performance[32]

XPEL, Inc. (NASDAQ:XPEL) Q1 2021 Earnings Conference Call May 10, 2021 11:00 AM ET Company Participants John Nesbett - IMS IR Ryan Pape - President & CEO Barry Wood - CFO Conference Call Participants Jeff Van Sinderen - B. Riley Steve Dyer - Craig-Hallum Operator Greetings, and welcome to the XPEL Inc. First Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. [Operator Instructions] please note that this con ...

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, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38858 XPEL, INC. (Exact name of registrant as specified in its charter) | Nevada | | 20-1117381 | | | --- | --- | --- | --- | | ...

XPEL, Inc. (NASDAQ:XPEL) Q4 2020 Earnings Conference Call March 11, 2021 11:00 AM ET Company Participants John Nesbett - IMS IR Ryan Pape - President & CEO Barry Wood - CFO Conference Call Participants Jeff Van Sinderen - B. Riley Steve Dyer - Craig-Hallum Operator Greetings, and welcome to the XPEL Inc. Fourth Quarter and Year End 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. [Operator Instructions] It is now ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38858 XPEL, INC. (Exact name of registrant as specified in its charter) | Nevada | | 20-1117381 | | | --- | --- | --- | --- | | (Stat ...

INVESTOR PRESENTATION NOVEMBER 2020 FORWARD LOOKING STATEMENT This Presentation contains certain forward-looking statements in respect of various matters including upcoming events that involve known and unknown risks and uncertainties that are beyond the control of Management. Those risks and uncertainties include, among other things, risks related to: share prices, liquidity, credit worthiness, currency, insurance, dilution, ability to access capital markets, interest rates, dependence on key personnel and ...