XPEL(US:XPEL)2021-11-09 13:39Revenue Performance - Total revenue for the three months ended September 30, 2021, was $68,528,923, a 48.7% increase from $46,122,796 in the same period of 2020[46] - Revenue from paint protection film for the nine months ended September 30, 2021, reached $124,250,391, up 63.2% from $75,996,440 in 2020[46] - The United States accounted for $37,362,839 of total revenue in Q3 2021, representing a 69.8% increase from $22,041,941 in Q3 2020[47] - Total service revenue for the nine months ended September 30, 2021, was $28,536,076, an increase of 77.1% from $16,076,820 in 2020[46] - Revenue for the nine months ended September 30, 2021, was $199.01 million, a 58.2% increase from $125.72 million in the same period of 2020[71] - Net income for the nine months ended September 30, 2021, was $26.07 million, up 84.9% from $14.09 million in 2020[71] - Basic earnings per share for the nine months ended September 30, 2021, was $0.92, compared to $0.40 in 2020, reflecting a 130% increase[74] Assets and Liabilities - The company's warranty liability decreased to $49,927 as of September 30, 2021, from $52,006 at the end of 2020[34] - Accounts receivable as of September 30, 2021, were net of an allowance for doubtful accounts of $191,804, compared to $90,844 as of December 31, 2020[33] - Total property and equipment increased to $14,282,330 as of September 30, 2021, from $9,207,729 as of December 31, 2020, representing a growth of 55.5%[48] - Intangible assets, net rose to $21,575,724 as of September 30, 2021, compared to $5,423,980 as of December 31, 2020, marking an increase of 297.5%[49] - Goodwill increased significantly to $15,747,077 as of September 30, 2021, from $4,472,217 as of December 31, 2020, reflecting a growth of 252.5%[51] - Inventory totaled $39,554,300 as of September 30, 2021, up from $22,364,126 as of December 31, 2020, indicating an increase of 77.0%[52] - Accounts payable and accrued liabilities increased to $31,654,155 as of September 30, 2021, from $16,797,462 as of December 31, 2020, a rise of 88.3%[58] Expenses - Depreciation expense for the three months ended September 30, 2021, was $455,792, compared to $325,643 for the same period in 2020, reflecting a year-over-year increase of 40.0%[48] - Amortization expense for the three months ended September 30, 2021, was $734,963, up from $239,571 in the same period of 2020, representing an increase of 66.0%[49] Acquisitions - The company completed the acquisition of PermaPlate Film LLC for $30,000,000 on May 25, 2021, aimed at market expansion[67] - Revenue from the acquired company for the three months ended September 30, 2021, was $5,335,387, contributing to a net income of $441,358 during the same period[70] - The company completed the acquisition of five businesses in the U.S. and Canada on October 1, 2021, for a combined preliminary purchase price of approximately $20.1 million[78] - The acquisitions were financed through a combination of cash on hand and borrowings from lines of credit in the U.S. and Canada[79] - Initial accounting for the recent acquisitions is not yet complete[80] Financial Instruments and Risks - The company has a $57.0 million revolving line of credit, with no outstanding balance as of September 30, 2021, and an interest rate of 2.50%[53] - The company has operations exposed to currency risk in multiple currencies, including the British Pound Sterling and the Canadian Dollar[142] - A hypothetical 100 basis point increase in variable interest rates could materially impact the company's financial statements if it borrows under its revolving lines of credit[143] - The company does not currently hedge its exposure to foreign currency translation adjustments or interest rate risk[143] Stock and Equity - The company granted 17,520 restricted stock units (RSUs) with a weighted average grant value of $84.1 per share during the nine months ended September 30, 2021[73] Operating Segments - The company operates as a single operating segment, with consolidated results reviewed by the chief executive officer[31] - The company adopted ASU No. 2019-12 regarding income taxes without a material change to its financial statements[36]