DAP.U Xpel Technologies Corp

- Company Announces 70% Organic Revenue Growth With 65% Growth in Pre-Tax Net Income -

XPEL Technologies Corp. (TSXV:DAP.U), a leading supplier of automotive paint and headlamp protection films, announced results for the quarter and first six months of fiscal year 2014 ended June 30, 2014.

Mr. Ryan Pape, President and Chief Executive Officer of XPEL, commented “We continue to see strong organic growth in revenues and improved earnings driven by brand awareness of the XPEL solution, a broader installer base both domestically and internationally, and customer satisfaction.”

For the Quarter Ended June 30, 2014:

Revenue: Revenue in the second quarter of fiscal 2014 was $8.3 million, a 70% increase as compared to revenue of $4.9 million in the same prior year quarter.

Gross Margin: Gross profit as a percentage of revenue remained relatively unchanged at 30%.

Expenses: Selling, general and administrative expenses as a percentage of revenue remained relatively unchanged at 18% of revenue.

Net Earnings: Net income for the fiscal 2014 second quarter was $595,229, or $0.023 per basic and diluted share based on 25,784,950 shares outstanding, compared with net income of $384,273, or $0.015 per basic and diluted share based on 25,784,950 shares outstanding, for the corresponding prior year period.

For the Six Months Ended June 30, 2014:

Revenue: Revenue in the first six months of fiscal 2014 was $13.6 million, a 69% increase as compared to revenue of $8.1 million in the same prior year period.

Gross Margin: Gross profit as a percentage of revenue remained relatively unchanged at 31%.

Expenses: Selling, general and administrative expenses as a percentage of revenue remained relatively unchanged at 19% of revenue.

Net Earnings: Net income for the first six months of fiscal 2014 was $1,054,514, or $0.041 per basic and diluted share based on 25,784,950 shares outstanding, compared with net income of $646,597, or $0.025 basic and diluted share based on 25,784,950 shares outstanding, for the corresponding prior year period.

Mr. Pape continued, “Our focus is on sustained, long-term earnings growth, and we are investing in our business accordingly. Our balance sheet provides us with the financial flexibility to make measured investments in strengthening our employee base, expanding and refining our sales and marketing strategy and enhancing our operating systems.”

Mr. Pape continued, “Sales were robust both domestically and internationally. Domestically, we rolled-out over the past year company-owned XPEL installation facilities in select markets and these facilities have been performing well. International sales account for 36% of our overall revenues, slightly higher than 31% a year ago. International sales is a significant opportunity for XPEL over the long term, particularly in regions where the environmental conditions are particularly harmful to automobiles. We have recently implemented a new ERP system which more effectively centralizes the management of our international operations and should further improve inventory management as we grow our business overseas.”

Mr. Pape concluded, “Our base of independent installers and dealerships continues to expand, rooted by XPEL’s keen focus on providing training and support for our partners. These quarterly results are a further reflection of XPEL’s growing brand in the marketplace. With single digit penetration of the overall market, there is significant opportunity for long-term growth.”

About XPEL Technologies Corp.

XPEL is the leading supplier of automotive paint and headlamp protection films with over 70,000 vehicle-specific applications and a worldwide network of trained installers. XPEL is the developer of the Design Access Program software, and manufacturer of XPEL™ Automotive Paint and Headlamp Protection Products. XPEL has forged the cutting-edge of automotive protection technology, and leads the industry in quality, technical support and customer service.

Additional information can be found on the Company's website at www.xpel.com

Safe harbor statement

This release includes forward-looking statements regarding XPEL Technologies Corp. and its business, which may include, but is not limited to, anticipated use of proceeds from capital transactions, expansion into new markets, and execution of the company's growth strategy. 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 of the management of XPEL. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, performance and acceptance of the company's products, economic factors, competition, the equity markets generally and many other factors beyond the control of XPEL. 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

              XPEL TECHNOLOGIES CORP. Condensed Consolidated Statements of Income and Comprehensive Income (Expressed in United States Dollars) (unaudited)               Three Months EndedJune 30, Six Months EndedJune 30, 2014 2013 2014 2013   Revenue $ 8,348,309 $ 4,898,729 $ 13,620,182 $ 8,055,311   Expenses Direct costs 5,881,637 3,404,830 9,374,375 5,502,200 Selling, general and administrative expenses   1,494,582   908,193   2,627,755   1,564,926   Income from operations 972,090 585,706 1,618,052 988,185   Interest expense 4,861 433 7,403 733 Loss on sale of property, plant and equipment   -   -   (865)   1,855   4,861   433   6,538   2,588   Net income before income taxes 967,229 585,273 1,611,514 985,597   Deferred income tax expense (recovery) 40,000 201,000 27,000 339,000 Current income tax expense   332,000   -   530,000   -   372,000   201,000   557,000   339,000           Net income and comprehensive income $ 595,229 $ 384,273 $ 1,054,514 $ 646,597       Earnings per Share   Basic and diluted $ 0.023 $ 0.015 $ 0.041 $ 0.025   Weighted Average Number of Common Shares   Basic and diluted 25,784,950 25,784,950 25,784,950 25,784,950     XPEL TECHNOLOGIES CORP. Condensed Consolidated Balance Sheet (Expressed in United States Dollars) (unaudited)       June 30,2014       December 31,2013   Assets   Current Cash and cash equivalents $   2,128,305 $   1,414,913 Accounts receivable 2,169,500 1,018,956 Inventory 3,240,743 2,716,612 Prepaid expenses and sundry assets     180,060     259,233 Total current assets 7,718,607 5,409,714   Property, plant and equipment 743,395 517,925 Intangible assets     625,371     518,559 Total assets $   9,087,373 $   6,446,198   Liabilities   Current Accounts payable and accrued liabilities 2,649,229 1,829,164 Customer deposits 12,350 12,350 Bank operating facility 200,000 - Notes payable 78,101 68,505 Current tax expense     530,000     - Total current liabilities 3,469,680 1,910,019   Deferred tax liability     248,000     221,000 Total liabilities 3,717,680 2,131,019   Equity   Capital stock

 

6,635,133 6,635,133 Contributed surplus 2,165,130 2,165,130 Deficit     (3,430,571)     (4,485,084) Total equity 5,369,692 4,315,179     Total liabilities and equity $   9,087,373 $   6,446,198  

XPEL Technologies Corp.Ryan Pape, 210-678-3700Chief Executive OfficerorInstitutional Marketing Services (IMS)John Nesbett, 203-972-9200jnesbett@institutionalms.comorJennifer Belodeau, 203-972-9200