XPEL Sees Growth in Q2

September 12th, 2018 by Emmariah Holcomb

XPEL recently held an open conference call, where representatives spoke about the company’s second quarter. Though the company aimed to expand its business and increase sales, team members said this quarter’s results surpassed their expectations. Overall the company’s revenue grew by 69.3 percent compared to this time last year.

“I can’t believe we have another record breaking quarter,” Ryan Pape, XPEL CEO, said.

The company acquired three franchises in Canada earlier this year, which conference call presenters think attributed to its results. “I’m excited to see we’re doing so well overseas in Canada so far in 2018. We expect to see an increase the more we invest in the business,” Barry Wood, chief financial officer, said.

XPEL’s role in setting a Guinness world record, thanks to a SunStoppers idea, was also mentioned. Both Pape and Wood, felt it not only helped get the word out, but also served as a way to connect with the community. “The turn out and the energy at that event made it fun. It’s a really good example of how we support our customers and have fun at the same time,” Pape said. “You know what was so special about that day …you had an operator with 15 years in the business who routinely purchased their film from someone else, and in just a few months he’s been happy with our quality and business. It was really a perfect story,” Pape added.

But not everything in quarter two was successful. “We were happy with the improvements the company has made following our first quarter, but we aren’t happy with the 29.8 percent change in our gross margin. We think at a minimum it should be in the low 30’s, and at this time that is something we’re going to work on as we enter into the third quarter,” Pape mentioned. The company’s gross margin improved this quarter with a result of 29.8 percent, compared to last year’s second quarter which had a gross margin of 27.1 percent.

Overall the company’s second quarter ended on a high note. According to the company, as it moves forward it aims to continue its efforts in its international footprint to expand and to acquire more installers to have a closer connection to its customers.

“I expect we’ll see increased revenue growth over the rest of the year as we focus on continued expansion,” Pape said.

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