SAN ANTONIO--(BUSINESS WIRE)--In the financial table titled XPEL TECHNOLOGIES CORP. Condensed Consolidated Statements of Income and Comprehensive Income, under "Net income for period attributed to:", the order of the labels for two line items has been corrected so that "Common share holders" is above "Non-controlling interest".
The corrected release reads:
XPEL ANNOUNCES THIRD QUARTER 2014 REVENUE GROWTH OF 72%
XPEL Technologies Corp. (TSXV:DAP.U), a leading supplier of automotive paint and headlamp protection films, announced results for the quarter and first nine months of fiscal year 2014, ended September 30, 2014.
Mr. Ryan Pape, President and Chief Executive Officer of XPEL, commented, “We were pleased to deliver strong revenue growth as a result of growing market demand for the XPEL solution and the expansion of our installer base, both domestically and internationally.”
For the Quarter Ended September 30, 2014:
Revenue: Revenue in the third quarter of fiscal 2014 was $8.4 million, a 72% increase as compared to revenue of $4.9 million in the same prior year quarter and a slight sequential increase compared to revenue of $8.3 million in the second quarter of 2014.
Gross Margin: Gross profit as a percentage of revenue decreased slightly to 31% from the previous year but increased sequentially from Q2.
Expenses: Selling, general and administrative expenses as a percentage of revenue was 23%, a slight increase compared to 21% in the third quarter last year. The increase is primarily due to one-time acquisition related expenses of $84,000 and other one-time expenses of approximately $130,000.
Net Earnings: Net income for the fiscal 2014 third quarter was $473,296 or $0.018 per basic and diluted share based on 25,784,950 shares outstanding, compared with net income of $392,895, or $0.015 per basic and diluted share based on 25,784,950 shares outstanding, for the corresponding prior year period.
Mr. Pape continued, “Just prior to the close of the third quarter, we completed our acquisition to establish our new XPEL U.K. facility, providing a foothold to move XPEL closer to customers and partners in the region. The facility includes a training and support center and provides readily available inventory to potential and existing European customers. The acquisition is going well and the new facility was operating profitably after the first month. As expected, during the third quarter we had modest one-time acquisition related expenses and also incurred other one-time expenses that impacted net profitability for the quarter.”
For the Nine Months Ended September 30, 2014:
Revenue: Revenue in the first nine months of fiscal 2014 was $22.0 million, a 70% increase as compared to revenue of $12.9 million in the same prior year period.
Gross Margin: Gross profit as a percentage of revenue remained relatively unchanged at 31%.
Expenses: Selling, general and administrative expenses as a percentage of revenue remained relatively unchanged at 21%.
Net Earnings: Net income for the first nine months of fiscal 2014 was $1.5 million or $0.06 per basic and diluted share based on 25,784,950 shares outstanding, compared with net income of $1 million, or $0.04 per basic and diluted share based on 25,784,950 shares outstanding, for the corresponding prior year period.
“Our balance sheet remains strong, providing us with the financial flexibility to strengthen our employee base and drive our sales and marketing strategy. Inventory is up substantially over the second quarter. This is partially due to our need for more inventory to meet future demand, but also due to a transition in how we manage our production that requires a near term increase but, over time, will help constrain the growth of inventory to sales.”
Mr. Pape concluded, “Our ability to consistently expand our base of independent installers and dealerships resulted in significant revenue growth in the quarter. International sales account for 37% of our overall revenues as compared to 33% in the same period last year and we are excited about the added international traction that is being generated with our new U.K. facility. We believe XPEL’s growing brand recognition in the marketplace and our focus on training and support of our partners, position us well for long-term growth.”
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. | |||||||||||||||||
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Condensed Consolidated Statements of Income and Comprehensive Income |
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| (Expressed in United States Dollars) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||||
| Revenue | $ | 8,410,089 | $ | 4,877,589 | $ | 22,030,271 | $ | 12,932,900 | |||||||||
| Expenses | |||||||||||||||||
| Direct costs | 5,770,856 | 3,261,620 | 15,145,231 | 8,763,820 | |||||||||||||
| Selling, general and administrative expenses | 1,897,277 | 1,016,634 | 4,525,185 | 2,581,560 | |||||||||||||
| Income from operations | 741,956 | 599,335 | 2,359,855 | 1,587,520 | |||||||||||||
| Interest expense | 13,260 | 2,440 | 20,663 | 3,173 | |||||||||||||
| Loss on sale of property, plant and equipment | 2,475 | - | 1,610 | 1,855 | |||||||||||||
| 15,735 | 2,440 | 22,273 | 5,028 | ||||||||||||||
| Net income before income taxes | 726,221 | 596,895 | 2,337,582 | 1,582,492 | |||||||||||||
| Deferred income tax expense (recovery) | (8,000 | ) | 204,000 | 19,000 | 543,000 | ||||||||||||
| Current income tax expense | 260,925 | - | 790,925 | - | |||||||||||||
| 252,925 | 204,000 | 809,925 | 534,000 | ||||||||||||||
| Net income and comprehensive income | $ | 473,296 | $ | 392,895 | $ | 1,527,657 | $ | 1,039,492 | |||||||||
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Net income for period attributed to: |
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Common share holders |
477,306 | 392,895 | 1,531,667 | 1,039,492 | |||||||||||||
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Non-controlling interest |
(4,010 | ) | - | (4,010 | ) | - | |||||||||||
| Earnings per Share | |||||||||||||||||
| Basic and diluted | $ | 0.018 | $ | 0.015 | $ | 0.059 | $ | 0.040 | |||||||||
| Weighted Average Number of Common Shares | |||||||||||||||||
| Basic and diluted | 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, | ||||||||||
| 2014 | 2013 | ||||||||||
| Assets | |||||||||||
| Current | |||||||||||
| Cash and cash equivalents | $ | 2,090,467 | $ | 1,414,913 | |||||||
| Accounts receivable | 2,586,780 | 1,018,956 | |||||||||
| Inventory | 5,131,695 | 2,716,612 | |||||||||
| Prepaid expenses and sundry assets | 238,427 | 259,233 | |||||||||
| Total current assets | 10,047,369 | 5,409,714 | |||||||||
| Property, plant and equipment | 768,022 | 517,925 | |||||||||
| Intangible assets | 1,194,869 | 518,559 | |||||||||
| Total assets | $ | 12,010,260 | $ | 6,446,198 | |||||||
| Liabilities | |||||||||||
| Current | |||||||||||
| Accounts payable and accrued liabilities | 3,164,010 | 1,829,164 | |||||||||
| Customer deposits | 12,350 | 12,350 | |||||||||
| Bank operating facility | 1,800,000 | - | |||||||||
| Notes payable | 97,250 | 68,505 | |||||||||
| Current tax expense | 790,000 | - | |||||||||
| Total current liabilities | 5,863,610 | 1,910,019 | |||||||||
| Deferred tax liability | 240,000 | 221,000 | |||||||||
| Total liabilities | 6,103,610 | 2,131,019 | |||||||||
| Equity | |||||||||||
| Capital stock | 6,635,133 | 6,635,133 | |||||||||
| Contributed surplus | 2,165,130 | 2,165,130 | |||||||||
| Other Accumulated Comprehensive Income | (8,105 | ) | - | ||||||||
| Deficit | (2,953,417 | ) | (4,485,084 | ) | |||||||
| Total equity attributed to owners | 5,838,741 | 4,315,179 | |||||||||
| Non-controlling interest | 67,909 | - | |||||||||
| Total equity | 5,906,650 | ||||||||||
| Total liabilities and equity | $ | 12,010,260 | $ | 6,446,198 | |||||||