DAP.U Xpel Technologies Corp

- Third Quarter Constant Currency Adjusted Revenues and Net Income Increase 35% and 44% Respectively -

XPEL Technologies Corp. (TSXV: DAP.U), a leading supplier of automotive paint and headlamp protection films, announced results for the third quarter and nine months ended September 30, 2015.

Mr. Ryan Pape, President and Chief Executive Officer of XPEL, commented, “We continued to drive solid growth in the quarter. Revenue increased 35% and net income grew 44% on a constant currency basis, reflecting the progress we are making in the U.S. and abroad. Brand awareness and the reputation of the XPEL product continue to increase as we reach more customers around the world, and our focus on enhancing the product line and distribution channels positions us well for continued growth.”

For the Quarter Ended September 30, 2015:

Revenue: Revenue in the third quarter of fiscal 2015 was $10.9 million, a 29% increase as compared to revenue of $8.4 million in the same prior year quarter. On a constant currency basis, revenues increased 35% to $11.3 million.

Gross Margin: Gross profit as a percentage of sales decreased slightly to 30% from 31% in the same quarter last year.

Expenses: Selling, general and administrative expenses as a percentage of revenue was 24%, up slightly as compared to 23% in the third quarter of 2014.

Net Earnings: Net income for the fiscal 2015 third quarter was $398,082 or $0.02 per basic and diluted share based on 25,784,950 shares outstanding, compared with net income of $473,296, or $0.02 per basic and diluted share based on 25,784,950 shares outstanding, for the corresponding prior year period. On a constant currency basis net income increased 44% to $682,542.

EBITDA: For the three months ended September 30, 2015, the Company reported EBITDA of $914,484 as compared to EBITDA of $862,729 in the same prior year period. On a constant currency basis, EBITDA increased 52% to $1,310,448 in the third quarter of 2015.

For the Nine Months Ended September 30, 2015:

Revenue: Revenue in the first nine months of fiscal 2015 was $30.3 million, a 38% increase as compared to revenue of $22.0 million in the same prior year period. On a constant currency basis, revenues increased 42% to $31.3 million.

Gross Margin: Gross profit for the nine months as a percentage of revenue remained unchanged at 31%.

Expenses: Selling, general and administrative expenses for the nine months as a percentage of revenue was 23%, up from 21% in the same prior year period.

Net Earnings: Net income for the first nine months of fiscal 2015 was $1,670,673, or $0.07 per basic and diluted share based on 25,784,950 shares outstanding, compared with net income of $1,527,657, or $0.06 per basic and diluted share based on 25,784,950 shares outstanding, for the corresponding prior year period. On a constant currency basis, nine month net income increased 48% to $2,253,836.

EBITDA: For the nine months ended September 30, 2015, the Company reported EBITDA of $3.1 million as compared to EBITDA of $2.7 million in the same prior year period. On a constant currency basis, EBITDA increased 48% to $4.0 million in the first nine months of 2015.

Mr. Pape continued, “In China, sales increased sequentially as a result of a realigned distribution strategy which is already providing a better platform for us as we grow into that market. In Canada, the Parasol acquisition which we consummated in the first quarter has proven to be a great strategic move for the company, although the weakness in the Canadian dollar continues to impact our consolidated results. Nonetheless, the acquisition has been quite accretive on a constant currency basis.

“During the quarter, we soft launched a window film line and the initial feedback has been very positive. This is as a complimentary product line and one which is used by many of our customers. Furthermore, we continue to focus on making our product the easiest to order and deliver, and are in the process of rolling out a new ordering and account management portal in the fourth quarter to provide best in class ordering experience.”

CONFERENCE CALL INFORMATION

The Company will host a conference call to discuss the third quarter and nine month results today, November 30, 2015 at 11:00 a.m. Eastern Time.

To access the live webcast, log onto the XPEL Technologies website at http://www.xpel.com, and click on “Investor Relations”.

To participate in the call by phone, dial (877) 407-8033 approximately five minutes prior to the scheduled start time. International callers please dial (201) 689-8033.

A replay of the teleconference will be available until December 30, 2015 and may be accessed by dialing (877) 660-6853. International callers may dial (201) 612-7415. Callers should use conference ID: 13625605.

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 Statement of Comprehensive Income (Expressed in United States Dollars)               Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014     Revenue $ 10,874,243 $ 8,410,089 $ 30,298,220 $ 22,030,271   Expenses Direct costs 7,579,123 5,770,856 20,801,634 15,145,231 Selling, general and administrative 2,628,513 1,897,277 7,031,569 4,525,185 Unrealized foreign currency gain (9,263) - (37,346) -   Income from operations 675,870 741,956 2,502,363 2,359,855 Interest expense 72,185 13,260 173,049 20,663 Loss on sale of property, plant and equipment 1,603 2,475 3,641 1,610 73,788 15,735 176,690 22,273   Net income before income tax 602,082 726,221 2,325,673 2,337,582   Provision for income tax Deferred income tax expense (recovery) (59,000) (8,000) 200,000 19,000 Current income tax expense 263,000 260,925 455,000 790,925   Net Income $ 398,082 $ 473,296 $ 1,670,673 $ 1,527,657   Exchange differences on translating foreign operations (384,675) - (456,064) -         Total comprehensive income $ 13,407 $ 473,296 $ 1,214,609 $ 1,527,657     Net income attributable to equity holders of the Company 410,760 477,306 1,713,309 1,531,667   Non-controlling interest (12,678) (4,010) (42,636) (4,010) 398,082 473,296 1,670,673 1,527,657     Earnings per share Basic and diluted $ 0.015 $ 0.018 $ 0.065 $ 0.059 Weighted average number of common shares outstanding 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)       September 30, December 31, 2015 2014   Assets Current Cash and cash equivalents $ 3,367,518 $ 1,474,130 Accounts receivable 3,795,332 2,287,342 Inventory 5,705,435 6,235,137 Prepaid expenses and sundry assets   914,451     347,472   Total current assets 13,782,736 10,344,081   Property, plant and equipment 1,186,037 790,343 Intangible assets 2,428,397 784,510 Deferred tax asset -- 163,000 Goodwill   1,722,323     526,243   Total assets $ 19,119,493   $ 12,608,177     Liabilities Current Bank operating facility $ 2,800,000 $ 900,000 Accounts payable and accrued liabilities 3,546,428 4,121,590 Income Tax Payable 330,092 -- Customer deposits 12,350 12,350 Vehicle notes payable 140,684 90,413 Current portion of Promissory note 359,485 - Current portion of Bank loan payable   380,000     -   Total current liabilities 7,569,039 5,124,353   Promissory note 1,100,194 - Bank loan payable 1,298,333 - Deferred tax liability   460,626     -   Total liabilities 10,428,192 5,124,353   Equity Capital stock 6,635,133 6,635,133 Contributed surplus 2,165,130 2,165,130 Accumulated other comprehensive income (471,785 ) (15,721 ) Retained Earnings (Deficit)   325,327     (1,387,982 ) 8,653,805 7,396,560 Non-controlling interest   37,496     87,264   Total liabilities and equity $ 19,119,493   $ 12,608,177    

Constant Currency

The Company reports results in U.S. Dollars, but does business on a global basis. Exchange rate fluctuations affect the U.S. Dollar value for foreign currency revenue and expenses and may have a significant effect on reported results. Comparisons are made to the prior year in constant currency terms, which Management believes is helpful in understanding the Company’s performance. Constant currency is calculated by converting current period results using the prior year currency exchange rates.

Non-IFRS Measures

In addition to disclosing results in accordance with IFRS as issued by FASB, the Company also provides supplementary non-IFRS measures as a method of evaluating the Company’s performance.

Management uses EBITDA as a measure of company-wide performance. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. Management believes EBITDA is a useful measure to allow period-to-period comparison of the Company’s operating performance. EBITDA does not have a standardized meaning under IFRS and is not necessarily comparable to measures presented by other Companies. EBITDA excludes components that are significant in understanding and assessing our results of operations and cash flows. EBITDA does not represent funds available for Management's discretionary use and is not intended to represent cash flow from operations. EBITDA should not be considered a substitute for Net Income prepared in accordance with IFRS as issued by the FASB.

EBITDA Reconciliation

  Three Months Ended Nine Months Ended September 30 2015 September 30 2014 September 30 2015 September 30 2014 Net Income $ 398,082 $ 473,296 $ 1,670,673 $ 1,527,657 Interest 72,185 13,260 173,049 20,663 Taxes 204,000 252,925 655,000 809,925 Depreciation 70,107 36,851 169,988 98,490 Amortization   170,110   86,397   466,868   244,844 EBITDA $ 914,484 $ 862,729 $ 3,135,578 $ 2,701,579  

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