XPEL XPEL Inc

XPEL, Inc. (Nasdaq: XPEL) (the “Company”), a global provider of protective films and coatings, announced consolidated results1 for the fourth quarter and year end 2024.

Fourth Quarter 2024 Overview:

• Revenue increased 1.9% to $107.5 million in the fourth quarter of 2024. Excluding China impacts, revenue increased 10.5% in the fourth quarter 2024.

• Gross margin of 40.6% in the fourth quarter of 2024.

• Foreign exchange loss (“FX Loss”) of $1.2 million incurred in the fourth quarter 2024 due to the strengthening of the US dollar.

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased 19.3% to $14.3 million, or 13.3% of revenue, compared to $17.7 million, or 16.7% of revenue in the fourth quarter of 2023. Normalizing for the FX impact, EBITDA would have decreased 9.0% and EBITDA margin would have been 14.3%. 2

• Net income decreased 25.7% to $8.9 million, or $0.32 per basic and diluted share, versus net income of $12.0 million, or $0.43 per basic and diluted share in the fourth quarter of 2023. Normalizing for the FX impact, net income would have decreased 13.8% and EPS would have been $0.35 per share.

Year End 2024 Overview:

• Revenue increased 6.1% to $420.4 million compared to prior year.

• Gross margin of 42.2% in 2024.

• Net income of $45.5 million, or $1.65 per basic and diluted share, versus net income of $52.8 million, or $1.91 per basic and diluted share in 2023.

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $69.5 million, or 16.5% of revenue, compared to $76.9 million, or 19.4% of revenue in 2023.2

Ryan Pape, President and Chief Executive Officer of XPEL, commented, “We saw solid top line performance in the fourth quarter and made great progress in many of our key initiatives during the year including increasing our focus on dealerships, refining our go-to-market strategy in China and executing on our acquisition strategy. The Company is well-positioned to continue to build on this momentum in 2025.”

Financial Highlights for the Fourth Quarter 2024:

Summary consolidated financial information for the fourth quarter 2024 and 2023 (unaudited, dollars in thousands):

Three Months Ended December 31,

% Change

 

2024

 

%

of Total

Revenue

 

2023

 

 

%

of Total

Revenue

 

2024 vs.

2023

Total revenue

$

107,527

 

100.0

%

 

$

105,538

 

 

100.0

%

 

1.9

%

Gross margin

 

43,703

 

40.6

%

 

 

40,932

 

 

38.8

%

 

6.8

%

Operating Expenses

 

31,358

 

29.2

%

 

 

26,708

 

 

25.3

%

 

17.4

%

Net income

 

8,898

 

8.3

%

 

 

11,970

 

 

11.3

%

 

(25.7

)%

EBITDA2

 

14,250

 

13.3

%

 

 

17,654

 

 

16.7

%

 

(19.3

)%

Net cash provided by (used in) operating activities

$

6,327

 

n/a

 

 

$

(1,117

)

 

n/a

 

 

n/a

 

Geographical Revenue Summary

 

Three Months Ended

December 31,

 

% Change

 

% of Total

Revenue

 

 

2024

 

 

2023

 

Inc (Dec)

 

2024

 

 

2023

 

United States

$

59,054

 

$

55,611

 

6.2

%

 

54.9

%

 

52.7

%

Canada

 

13,370

 

 

11,592

 

15.3

%

 

12.4

%

 

11.0

%

China

 

9,238

 

 

16,584

 

(44.3

)%

 

8.6

%

 

15.7

%

Continental Europe

 

8,935

 

 

8,529

 

4.8

%

 

8.3

%

 

8.1

%

United Kingdom

 

3,881

 

 

3,218

 

20.6

%

 

3.6

%

 

3.0

%

Middle East/Africa

 

5,656

 

 

4,958

 

14.1

%

 

5.3

%

 

4.7

%

Asia Pacific

 

4,646

 

 

2,751

 

68.9

%

 

4.3

%

 

2.6

%

Latin America

 

2,747

 

 

2,120

 

29.6

%

 

2.6

%

 

2.0

%

Other

 

—

 

 

175

 

(100.0

)%

 

0.0

%

 

0.2

%

Total

$

107,527

 

$

105,538

 

1.9

%

 

100.0

%

 

100.0

%

Overall Revenue

• Total revenue grew 1.9% compared to fourth quarter 2023 (“YoY”). Excluding China impacts, total revenue increased 10.5% YoY.

• US revenue increased 6.2% YoY.

• All other revenue (excluding US and China) grew 17.7% YoY.

Product and Service Revenue

• Total product revenue was flat YoY. Excluding China impacts, total product revenue increased 10.9% YoY.

• Total window film revenue increased 32.9% YoY and represented 17.2% of total revenue.

• Total service revenue increased 9.4% YoY.

• Total installation revenue (labor and product combined) grew 16.1% YoY. Organic total installation revenue grew 8.0% YoY.

• Adjusted product revenue (combining cutbank credits revenue and product revenue) declined 1.0% YoY. Excluding China, adjusted product revenue grew 9.3% YoY.

Other Financial Information

• Gross margin percentage was 40.6% and 38.8% in the fourth quarter of 2024 and 2023, respectively.

• Total operating expenses increased 17.4% YoY.

• Sales and marketing expenses increased 24.6% YoY and represented 10.7% of revenue.

• General and administrative expenses increased 13.6% YoY and represented 18.5% of revenue.

• Net income decreased 25.7% YoY.

• EBITDA decreased 19.3% YoY2.

Cash Flows from Operations

• Cash flows provided by operations were $6.3 million in the fourth quarter 2024.

2025 First Quarter Outlook

• The Company expects first quarter 2025 revenue of approximately $97 - $99 million.

• The Company recently completed a workforce reduction that is expected to yield approximately $2 million in annual run rate savings.

Please see the information under “Forward-looking Statements” below regarding certain cautionary statements relating to our 2025 First Quarter Outlook.

Conference Call Information

The Company will host a conference call and webcast today, February 26, 2025 at 11:00 a.m. Eastern Time to discuss the Company’s fourth quarter and annual 2024 results.

To access the live webcast, please visit the XPEL, Inc. website at www.xpel.com/events-presentations.

To participate in the call by phone, dial (877) 545-0523 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0016. Callers should use access code: 186072.

A replay of the teleconference will be available until March 28, 2025 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 51876.

About XPEL, Inc.

XPEL is a leading provider of protective films and coatings, including automotive paint protection film, surface protection film, automotive and architectural window films, and ceramic coatings. With a global footprint, a network of trained installers and proprietary DAP software, XPEL is dedicated to exceeding customer expectations by providing high-quality products, leading customer service, expert technical support and world-class training. XPEL, Inc. is publicly traded on Nasdaq under the symbol “XPEL”.

1 The results summarized above for 2024 are preliminary and unaudited. As the Company completes its quarter-end financial close processes and finalizes its financial statements for the fourth quarter and year end of 2024, it is possible that the Company may identify items that require it to make adjustments to the preliminary information set forth above, and those adjustments could be material. Full year end 2024 financial information will be included in the filing of the Company’s Annual Report on Form 10-K with the Securities and Exchange Commission which is anticipated on or prior to February 28, 2025.

2 See “Non-GAAP Financial Measure” and “Reconciliation of Non-GAAP Financial Measure” below.

Forward-looking Statements

This release includes forward-looking statements (within the meaning of Section 27A of the Securities act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended) regarding XPEL, Inc. and its business, which may include, but is not limited to, anticipated use of proceeds from capital transactions, expansion into new markets, execution of the company's growth strategy and outlook. Often, but not always, forward-looking statements can be identified by the use of words such as “plans,” “is expected,” “expects,” “scheduled,” “intends,” “contemplates,” “anticipates,” “believes,” “proposes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved. Such statements are based on the current expectations and assumptions of the management of XPEL. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors relate to, among others: competition, a prolonged or material contraction in automotive sales and production volumes, disruption in our supply chain, technology that could render our products obsolete, changes in the way vehicles are sold, damage to our brand and reputation, cyber events and other legal and regulatory developments. There are several risks, uncertainties, and other important factors, many of which are beyond the Company’s control, that could cause its actual results to differ materially from the forward-looking statements contained in this press release, including those described in the “Risk Factors” section of Annual Report on Form 10-K. Although XPEL has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and XPEL undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measure

To aid in the understanding of XPEL's ongoing business performance, XPEL uses EBITDA, a non-GAAP financial measure. EBITDA is defined as net income (loss) plus interest expense, net, plus income tax expense plus depreciation and amortization expense. EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. It is not a measurement of XPEL's financial performance under GAAP and should not be considered as an alternative to revenue or net income, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly title measures. For a full reconciliation of EBITDA to comparable GAAP measure, refer to the reconciliation titled “Reconciliation of Non-GAAP Financial Measure.”

XPEL, Inc.

Consolidated Statements of Income (Unaudited)

(In thousands except per share data)

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

 

2024

 

2023

 

2024

 

2023

Revenue

 

 

 

 

 

 

 

Product revenue

$

81,847

 

$

82,067

 

 

$

318,849

 

$

311,406

 

Service revenue

 

25,680

 

 

23,471

 

 

 

101,551

 

 

84,887

 

Total revenue

 

107,527

 

 

105,538

 

 

 

420,400

 

 

396,293

 

 

 

 

 

 

 

 

 

Cost of Sales

 

 

 

 

 

 

 

Cost of product sales

 

52,415

 

 

54,395

 

 

 

199,791

 

 

198,008

 

Cost of service

 

11,409

 

 

10,211

 

 

 

43,249

 

 

35,871

 

Total cost of sales

 

63,824

 

 

64,606

 

 

 

243,040

 

 

233,879

 

Gross Margin

 

43,703

 

 

40,932

 

 

 

177,360

 

 

162,414

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

Sales and marketing

 

11,509

 

 

9,234

 

 

 

42,817

 

 

31,788

 

General and administrative

 

19,849

 

 

17,474

 

 

 

75,396

 

 

63,654

 

Total operating expenses

 

31,358

 

 

26,708

 

 

 

118,213

 

 

95,442

 

 

 

 

 

 

 

 

 

Operating Income

 

12,345

 

 

14,224

 

 

 

59,147

 

 

66,972

 

 

 

 

 

 

 

 

 

Interest expense

 

34

 

 

301

 

 

 

996

 

 

1,248

 

Foreign currency exchange loss (gain)

 

1,157

 

 

(726

)

 

 

1,373

 

 

(307

)

 

 

 

 

 

 

 

 

Income before income taxes

 

11,154

 

 

14,649

 

 

 

56,778

 

 

66,031

 

Income tax expense

 

2,256

 

 

2,679

 

 

 

11,289

 

 

13,231

 

Net income

$

8,898

 

$

11,970

 

 

$

45,489

 

$

52,800

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

Basic

$

0.32

 

$

0.43

 

 

$

1.65

 

$

1.91

 

Diluted

$

0.32

 

$

0.43

 

 

$

1.65

 

$

1.91

 

Weighted Average Number of Common Shares

 

 

 

 

 

 

 

Basic

 

27,649

 

 

27,629

 

 

 

27,639

 

 

27,622

 

Diluted

 

27,656

 

 

27,633

 

 

 

27,643

 

 

27,634

 

XPEL, Inc.

Consolidated Balance Sheets

(In thousands except share and per share data)

 

 

(Unaudited)

12/31/2024

 

December 31, 2023

Assets

 

 

 

Current

 

 

 

Cash and cash equivalents

$

22,087

 

 

$

11,609

 

Accounts receivable, net

 

29,146

 

 

 

24,111

 

Inventory, net

 

110,904

 

 

 

106,509

 

Prepaid expenses and other current assets

 

5,314

 

 

 

3,529

 

Income tax receivable

 

893

 

 

 

696

 

Total current assets

 

168,344

 

 

 

146,454

 

Property and equipment, net

 

17,735

 

 

 

16,980

 

Right-of-use lease assets

 

19,490

 

 

 

15,459

 

Intangible assets, net

 

34,562

 

 

 

34,905

 

Other non-current assets

 

1,350

 

 

 

782

 

Goodwill

 

44,126

 

 

 

37,461

 

Total assets

$

285,607

 

 

$

252,041

 

Liabilities

 

 

 

Current

 

 

 

Current portion of notes payable

$

63

 

 

$

62

 

Current portion of lease liabilities

 

4,666

 

 

 

3,966

 

Accounts payable and accrued liabilities

 

36,789

 

 

 

32,444

 

Total current liabilities

 

41,518

 

 

 

36,472

 

Deferred tax liability, net

 

469

 

 

 

2,658

 

Other long-term liabilities

 

1,810

 

 

 

890

 

Borrowings on line of credit

 

—

 

 

 

19,000

 

Non-current portion of lease liabilities

 

16,126

 

 

 

12,715

 

Non-current portion of notes payable

 

229

 

 

 

317

 

Total liabilities

 

60,152

 

 

 

72,052

 

Stockholders’ equity

 

 

 

Preferred stock, $0.001 par value; authorized 10,000,000; none issued and outstanding

 

—

 

 

 

—

 

Common stock, $0.001 par value; 100,000,000 shares authorized; 27,651,773 and 27,630,025 issued and outstanding, respectively

 

28

 

 

 

28

 

Additional paid-in-capital

 

15,550

 

 

 

12,546

 

Accumulated other comprehensive loss

 

(4,236

)

 

 

(1,209

)

Retained earnings

 

214,113

 

 

 

168,624

 

Total stockholders’ equity

 

225,455

 

 

 

179,989

 

Total liabilities and stockholders’ equity

$

285,607

 

 

$

252,041

 

XPEL, Inc.

Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

 

 

Three Months ended

December 31,

 

Year Ended

December 31,

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

 

2024

 

2023

 

2024

 

2023

Cash flows from operating activities

 

 

 

 

 

 

 

Net income

$

8,898

 

 

$

11,970

 

 

$

45,489

 

 

$

52,800

 

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation of property, plant and equipment

 

1,512

 

 

 

1,305

 

 

 

5,820

 

 

 

4,534

 

Amortization of intangible assets

 

1,550

 

 

 

1,399

 

 

 

5,877

 

 

 

5,059

 

Gain on sale of property and equipment

 

(14

)

 

 

(2

)

 

 

(49

)

 

 

(13

)

Stock compensation

 

868

 

 

 

496

 

 

 

3,197

 

 

 

1,640

 

Provision for credit losses

 

111

 

 

 

27

 

 

 

390

 

 

 

243

 

Deferred income tax

 

(1,367

)

 

 

(77

)

 

 

(2,781

)

 

 

(921

)

 

 

 

 

 

 

 

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable, net

 

(129

)

 

 

2,483

 

 

 

(5,604

)

 

 

(7,000

)

Inventory, net

 

(9,959

)

 

 

(13,260

)

 

 

(4,785

)

 

 

(24,843

)

Prepaid expenses and other assets

 

631

 

 

 

7,892

 

 

 

(2,154

)

 

 

604

 

Income tax receivable or payable

 

(637

)

 

 

(1,517

)

 

 

(267

)

 

 

(1,197

)

Accounts payable and accrued liabilities

 

4,863

 

 

 

(11,833

)

 

 

2,691

 

 

 

6,478

 

Net cash provided by (used in) operating activities

 

6,327

 

 

 

(1,117

)

 

 

47,824

 

 

 

37,384

 

Cash flows used in investing activities

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

(1,628

)

 

 

(1,615

)

 

 

(6,713

)

 

 

(6,356

)

Proceeds from sale of property and equipment

 

—

 

 

 

9

 

 

 

40

 

 

 

29

 

Acquisitions, net of cash acquired, payment holdbacks, and notes payable

 

(3,335

)

 

 

(14,038

)

 

 

(9,855

)

 

 

(18,735

)

Development or purchase of intangible assets

 

(455

)

 

 

(493

)

 

 

(1,876

)

 

 

(1,291

)

Net cash used in investing activities

 

(5,418

)

 

 

(16,137

)

 

 

(18,404

)

 

 

(26,353

)

Cash flows from financing activities

 

 

 

 

 

 

 

Net borrowings (payments) on revolving credit agreements

 

—

 

 

 

19,000

 

 

 

(19,000

)

 

 

(7,000

)

Restricted stock withholding taxes paid in lieu of issued shares

 

(18

)

 

 

—

 

 

 

(193

)

 

 

(167

)

Repayments of notes payable

 

(16

)

 

 

(15

)

 

 

(60

)

 

 

(92

)

Net cash (used in) provided by financing activities

 

(34

)

 

 

18,985

 

 

 

(19,253

)

 

 

(7,259

)

Net change in cash and cash equivalents

 

875

 

 

 

1,731

 

 

 

10,167

 

 

 

3,772

 

Foreign exchange impact on cash and cash equivalents

 

226

 

 

 

(496

)

 

 

311

 

 

 

(219

)

Increase in cash and cash equivalents during the period

 

1,101

 

 

 

1,235

 

 

 

10,478

 

 

 

3,553

 

Cash and cash equivalents at beginning of year

 

20,986

 

 

 

10,374

 

 

 

11,609

 

 

 

8,056

 

Cash and cash equivalents at end of year

$

22,087

 

 

$

11,609

 

 

$

22,087

 

 

$

11,609

 

 

 

 

 

 

 

 

 

Supplemental schedule of non-cash activities

 

 

 

 

 

 

 

Contingent consideration

$

1,600

 

 

$

—

 

 

$

1,600

 

 

$

—

 

Non-cash lease financing

$

2,491

 

 

$

2,384

 

 

$

8,701

 

 

$

4,231

 

Issuance of common stock for vested restricted stock units

$

210

 

 

$

327

 

 

$

1,110

 

 

$

1,038

 

 

 

 

 

 

 

 

 

Supplemental cash flow information

 

 

 

 

 

 

 

Cash paid for income taxes

$

3,361

 

 

$

4,149

 

 

$

13,617

 

 

$

15,293

 

Cash paid for interest

$

31

 

 

$

240

 

 

$

1,026

 

 

$

1,240

 

Reconciliation of Non-GAAP Financial Measure

EBITDA is a non-GAAP financial measure. EBITDA is defined as net income (loss) plus interest expense, net, plus income tax expense plus depreciation expense and amortization expense. EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. It is not a measurement of our financial performance under GAAP and should not be considered as alternatives to revenue or net income, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our operating results as reported under GAAP.

EBITDA does not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of ongoing operations and other companies in our industry may calculate EBITDA differently than we do, limiting its usefulness as a comparative measure.

EBITDA Reconciliation (in thousands)

 

 

Three Months Ended

December 31,

 

Year Ended December 31,

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

 

2024

 

2023

 

2024

 

2023

Net Income

$

8,898

 

$

11,970

 

$

45,489

 

$

52,800

Interest

 

34

 

 

301

 

 

996

 

 

1,248

Taxes

 

2,256

 

 

2,679

 

 

11,289

 

 

13,231

Depreciation

 

1,512

 

 

1,305

 

 

5,820

 

 

4,534

Amortization

 

1,550

 

 

1,399

 

 

5,877

 

 

5,059

EBITDA

$

14,250

 

$

17,654

 

$

69,471

 

$

76,872

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250226143725/en/

For more information, contact:

Investor Relations: John Nesbett/Jennifer Belodeau IMS Investor Relations Phone: (203) 972-9200 Email: xpel@imsinvestorrelations.com