XPEL(US:XPEL)2025-08-08 12:32Revenue and Income - Total revenue for the three months ended June 30, 2025, was $124.7 million, a 13.4% increase from $109.9 million in the same period of 2024[45] - Revenue from paint protection film for the three months ended June 30, 2025, was $62.7 million, up 9.3% from $57.3 million in the prior year[45] - Net income attributable to stockholders for the three months ended June 30, 2025 was $16,290,000, compared to $15,033,000 for the same period in 2024, representing an 8.4% increase[65] - Earnings per share for the three months ended June 30, 2025 was $0.59, up from $0.54 in the same period of 2024, reflecting a 9.3% increase[65] - The company reported gross margin of $53,517,000 for the three months ended June 30, 2025, compared to $47,865,000 for the same period in 2024, indicating a 11.9% increase[68] Assets and Liabilities - Total property and equipment, net, as of June 30, 2025, was $16.9 million, a decrease from $17.7 million as of December 31, 2024[46] - Total intangible assets, net, as of June 30, 2025, were $32.5 million, down from $34.6 million as of December 31, 2024[47] - Accounts receivable net of allowances for expected credit losses were $0.1 million as of June 30, 2025[29] - Warranty liabilities as of June 30, 2025, were $0.8 million, compared to $0.7 million as of December 31, 2024[30] - The company reported a warranty liability of $0.8 million as of June 30, 2025, reflecting an increase in warranty claims[30] - Contingent liabilities measured at fair value increased from $1,816,000 at December 31, 2024 to $2,076,000 at June 30, 2025[62] Financial Ratios and Compliance - The company maintained a Consolidated Total Leverage Ratio of 3.50 to 1.00 and a Consolidated Interest Coverage Ratio of 3.00 to 1.00 as of June 30, 2025, in compliance with debt covenants[55] Inventory and Credit Facilities - Finished goods inventory increased from $89,556,000 at December 31, 2024 to $95,233,000 at June 30, 2025, while total inventory decreased from $110,904,000 to $104,129,000[49] - The company had no outstanding balances under its $125 million revolving credit facility as of June 30, 2025[50] Goodwill and Amortization - Goodwill increased from $37,461,000 at December 31, 2023 to $46,538,000 at June 30, 2025, reflecting additions of $7,762,000 in 2024 and $1,074,000 in 2025[48] - Amortization expense for the three months ended June 30, 2025, was $1.5 million, compared to $1.4 million for the same period in 2024[47] - The company recognized no goodwill impairment during the three and six months ended June 30, 2025[27] Regulatory and Risk Assessment - The company is currently assessing the impact of the One Big Beautiful Bill Act on its consolidated financial statements[34] - The company has operations exposed to currency risk in multiple currencies, including the British Pound and Canadian Dollar, without current hedging strategies in place[125]