XPEL Posts its Highest Revenue Quarter to Date

November 13th, 2019 by Editor

XPEL Inc. posted the highest revenue quarter in the history of the company, according to its third quarter financial results released yesterday. Revenues increased 21.9% to $35.6 million compared to the third quarter 2018. Gross margin also improved to 34.5% compared to 30.3% in the third quarter 2018

“We’re pleased to have delivered continued strong growth in the third quarter, with record revenues, improved gross margins and enhanced profitability,” said Ryan Pape, president and CEO. “We saw continued revenue growth across all of our geographic regions including a return to growth in China, where revenues increased 16.5% in the third quarter. We’re excited by the interest we’re receiving for our portfolio of products and installation services and as we move through the fourth quarter, we believe we are well positioned to drive continued growth and profitability as we close out 2019.”

In regard to expenses, selling, general and administrative expenses increased to $6.6 million but declined as a percentage of sales to 18.5% as compared to $5.9 million or 20.1% of sales in the prior year period. This increase was due mainly to increases in personnel, occupancy, information technology and research and development costs to support the ongoing growth of the business, according to the company.

Pape commented on growth in specific areas during the earnings results conference call.

“So if you look at our business by region, our U.S. business growth finished at 18% for the quarter, which was off our amazing 55% growth in Q2,” he said. “We had some reports of sluggishness during the quarter in the U.S. compared to Q2 … So all in all, it was a good result for us in the quarter, and we saw very strong October for the U.S. business.”

Canada also produced strong growth in Q3, coming in at 34.9% on a U.S. dollar basis. “And Canada, despite being perhaps the most penetrated market for us in the world in terms of paint protection film, continues to grow. So that’s great to see,” said Pape.

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