XPEL(XPEL) - 2024 Q3 - Quarterly Report

Revenue Performance - Total revenue for the three months ended September 30, 2024, was $112.85 million, an increase of 9.9$102.68 million for the same period in 2023[40] - Revenue from paint protection film for the three months ended September 30, 2024, was $60.55 million, up 2.7$58.98 million in the same period last year[40] - Revenue from installation labor for the three months ended September 30, 2024, was $18.93 million, an increase of 27.5$14.85 million in the same period last year[40] - The company generated $64.57 million in revenue from the United States for the three months ended September 30, 2024, compared to$59.00 million in the same period in 2023[41] - The unaudited pro forma revenue for the nine months ended September 30, 2024, was $316,671,000, compared to$297,444,000 for the same period in 2023[66] Financial Position - Total property and equipment, net, increased to $17.85 million as of September 30, 2024, from$16.98 million as of December 31, 2023[42] - As of September 30, 2024, intangible assets net totaled $33,601,000, a decrease from$34,905,000 as of December 31, 2023[44] - Goodwill increased to $43,347,000 as of September 30, 2024, up from$37,461,000 at the end of 2023, reflecting additions and purchase price allocation adjustments[45] - Total inventory as of September 30, 2024, was $101,592,000, a slight decrease from$106,509,000 at December 31, 2023, with finished goods increasing to $88,527,000[47] - The company had no outstanding balance under its$125 million revolving credit facility as of September 30, 2024, compared to an outstanding balance of $19 million at December 31, 2023[48] Income and Expenses - The company reported net income of$14,892,000 for the three months ended September 30, 2024, compared to $13,656,000 for the same period in 2023, resulting in a basic earnings per share of$0.54[62] - Depreciation expense for the three months ended September 30, 2024, was $1.5 million, compared to$1.2 million for the same period in 2023[42] - Amortization expense for the three months ended September 30, 2024, was $1,500,000, compared to$1,300,000 for the same period in 2023[44] Liabilities and Compliance - Warranty liability increased to $0.7 million as of September 30, 2024, compared to$0.4 million as of December 31, 2023[26] - Total warranty liabilities for the nine months ended September 30, 2024, were $678,000, reflecting an increase from$422,000 for the year ended December 31, 2023[27] - The company was in compliance with all debt covenants as of September 30, 2024[52] - Contingent liabilities measured at fair value increased to $1,091,000 as of September 30, 2024, from$815,000 at December 31, 2023[60] Business Expansion and Future Outlook - During 2024, the company acquired certain businesses for an aggregate purchase price of $8,000,000 to expand its geographical footprint and product offerings[63] - The company anticipates no material impact from the implementation of new accounting standards effective January 1, 2024, and January 1, 2025[29][30] - The company may face significant inflationary pressures on costs, which could adversely affect its business and financial condition if not offset by price increases[141]