XPEL(US:XPEL)2021-08-09 12:02Revenue 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]