XPEL(US:XPEL)2022-02-28 12:31Revenue 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].