XPEL’s Q1 Financial Results Show Growth

June 3rd, 2015 by Casey Flores

XPEL Technologies Corp., a leading supplier of automotive paint and headlamp protection films, has released its financial results for the quarter ended March 31, 2015.

“We are pleased to have achieved another solid quarter with strong growth and enhanced profitability,” says Ryan Pape, president and CEO. “The XPEL brand continues to gain recognition domestically and internationally and we’re seeing increased market demand as we execute on our strategy to bring our product and service offerings closer to our customers.”

Here are the results, broken down:

Revenue:

Revenue in the first quarter (Q1) of 2015 was $8.1 million, a 54 percent increase, compared to $5.3 million in the same prior-year quarter. That was a 7-percent increase compared to the fourth quarter of 2014.

Gross Margin:

Gross profit as a percentage of sales increased slightly to 35 percent, compared to 34 percent in the previous year.

Expenses:

Selling, general and administrative expenses as a percentage of revenue were 24.9 percent, an increase of 21.5 percent compared to the first quarter last year. The increase is primarily due to marketing and IT expenses, according to a company press release, to support the anticipated long-term growth of the business, one-time acquisition-related expenses and the additional cost structure of Parasol Canada.

Net Earnings: 

Net income for the fiscal 2015 first quarter was $672,208 or $0.03 per share, compared with net income of $459,285, or $0.02 per share for the corresponding prior-year period.

Pape says part of the upswing is due to an expanded presence in Canada and Europe.

“Our international expansion strategy is proceeding well,” he says. “In addition to expanding our portfolio of products, Parasol brings a dedicated Canadian sales force, which we are leveraging to bring our successful U.S. marketing initiatives to this important market. Additionally, our U.K. facility, established to address market demand in Europe and additional regions, is performing well, fulfilling customer needs and offering regularly scheduled training courses. Our sales efforts in the region are gaining traction, resulting in a solid pipeline of new customers throughout Europe.”

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