SAN ANTONIO, Texas--(BUSINESS WIRE)--XPEL, Inc. (Nasdaq: XPEL), a global provider of protective films and coatings, announced results for the second quarter and first six months ended June 30, 2020.

Second Quarter 2020 Highlights:

• Revenues increased 19.0% to $35.8 million compared to second quarter 2019
• Net income grew 32.1% to $4.0 million, or $0.14 per basic and diluted share, compared to $3.0 million, or $0.11 per basic and diluted share, in the same quarter of 2019
• EBITDA grew 29.2% to $5.7 million, or 15.8% of revenues compared to $4.4 million in second quarter 20191

First Six Months Highlights

• Revenues increased 17.1% to $64.2 million compared to the prior year period
• Net income increased 14.7% to $5.6 million, or $0.20 per basic and diluted share, compared to $4.9 million, or $0.18 per basic and diluted share, in the same period of 2019
• EBITDA grew 14.0% to $8.2 million, or 12.8% of revenues, as compared to $7.2 million in the same prior year period1

Ryan Pape, President and Chief Executive Officer of XPEL, commented, “We're very pleased to have achieved strong second quarter results even as the world continued to contend with the impact of the COVID-19 pandemic. As we moved through the quarter, following early lockdown-related declines, we saw incredible top line resilience, led by the United States and China, which culminated in an all-time record revenue month in June. Early in the quarter, our team took swift action to manage through the crisis. These actions, along with this top line recovery, drove substantial net income growth and record operating cash flow while avoiding any layoffs or furloughs. While the economy continues to face uncertainty related to future COVID-19 impacts, we are cautiously optimistic that our second quarter momentum will continue as we move through the rest of the year.”

For the Quarter Ended June 30, 2020:

Revenues. Revenues increased approximately $5.7 million or 19% to $35.8 million as compared to $30.1 million in the prior year.

Gross Margin. Gross margin was 32.8% compared to 35.3% in the second quarter of 2019.

Expenses. Operating expenses decreased slightly to $6.6 million, or 18.4% of sales, compared to $6.7 million or 22.1% of sales in the prior year period.

Net income. Net income was $4.0 million, or $0.14 per basic and diluted share versus net income of $3.0 million, or $0.11 per basic and diluted share in the second quarter of 2019.

EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $5.7 million, or 15.8% of sales, as compared to $4.4 million in the prior year1.

For the Six Months Ended June 30, 2020:

Revenues. Revenues increased approximately $9.4 million or 17.1% to $64.2 million as compared to $54.8 million in the same period of the prior year.

Gross Margin. Gross margin was largely consistent at 34.3% compared to the first six months of 2019.

Expenses. Operating expenses increased to $14.4 million, and remained consistent at 22.5% of sales, compared to $12.3 million in the same prior year period.

Foreign Currency Exchange. Foreign Currency Exchangeloss increased to $0.4 million in the six month period compared to $0.02 million in the same prior period.

Net income. Net income was $5.6 million, or $0.20 per basic and diluted share versus net income of $4.9 million, or $0.18 per basic and diluted share in the first half of 2019.

EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $8.2 million, or 12.8% of sales, as compared to $7.2 million in the same prior year period1.

1 See reconciliation of non-GAAP financial measures below

As of June 30, 2020, XPEL had cash and cash equivalents of $25.8 million compared to $11.5 million at December 31, 2019.

About XPEL, Inc.

XPEL is a leading provider of protective films and coatings, including automotive paint protection film, surface protection film, automotive and commercial/residential window films, and ceramic coatings. With a global footprint, a network of trained installers and proprietary DAP software, XPEL is dedicated to exceeding customer expectations by providing high-quality products, leading customer service, expert technical support and world-class training. XPEL, Inc. is publicly traded on Nasdaq under the symbol “XPEL”.