XPEL Grows in North America During First Quarter

June 5th, 2019 by Emmariah Holcomb

XPEL’s end of quarter conference call centered on the company’s overall growth and success in the period which ended on March 31,2019. Representatives were pleased with quarter one’s results. Overall the company’s revenue decreased approximately $0.4 million or 1.6% to $24.7 million when compared to 2018’s first quarter results.

Its gross margin increased to 33% versus 30.3% the company saw in the first quarter of 2018. XPEL says the increase is related to an improved mix of increased sales to higher margin customers.

“During the first quarter we saw continued strong growth in key regions, particularly the US, where revenue increased 36% as compared to the first quarter 2018. As expected, sales to China declined significantly during the first quarter due mainly to acceleration of sales into China during the first half of last year,” said Ryan Pape, XPEL CEO.

According to the company’s report, selling, general and administrative expenses increased to $5.7 million or 22.9% of sales when compared to $4.8 million or 19.2% of sales in 2018. This increase was a result of increases in personnel, occupancy, information technology and research and development costs, according to the conference call.

Pape said the company is focusing on building its brand recognition going into the second quarter.

“We are continuing to build our brand recognition in all of our regions. We remain optimistic about the long-term opportunity in China and continue to focus on adjusting our product assortment and marketing efforts to keep pace with the evolving needs of our customers there and in all the markets we serve,” said Pape.

The launch of XPEL’s Fusion Plus ceramic coating during its first quarter also aided in the company’s success, according to Pape. He mentioned the line was a natural extension of its previous and current offerings.

“We’re encouraged by the strong interest we’re seeing for our products worldwide and believe the market recognition for our diverse, high quality portfolio of products and ancillary services is growing every day,” said Pape.

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