XPEL Technologies Corp. Reports Results for First Quarter 2005
SAN ANTONIO--May 2, 20057, 2005--XPEL Technologies Corp. (CNQ: XPEL.U)-- Design Access Program Revenues Improved Nearly 46%
-- Record-Breaking Revenues During March
-- 101 New Dealer Applications Approved
Nevada-based XPEL Technologies Corp. (CNQ: XPEL.U) announced financial results today for the quarter ended March 31, 2005, as compared to the same period ended March 31, 2004.
XPEL's Chairman and CEO W. Rege Brunner, stated, "The foundations we built in 2004 have allowed us to carry forward strong and positive momentum into 2005. March was a best-ever month for us in terms of revenues, and we believe that the 101 new dealer applications XPEL approved during the quarter, will fuel continued growth throughout the balance of the year." Mr. Brunner further added, "We are confident that our sales and marketing efforts, our 'onsite' auto dealership training initiative, as well as our significant business development activities, will contribute to growth in our dealer base and associated revenues, resulting in future sustainable profitability."
Three Months ended March 31, 2005 compared to the Three Months ended March 31, 2004
Revenues for the quarter were US$631,344, down from US$675,721 between periods, due to a non-recurring one-time US$100,000 licensing fee recorded in the first quarter of 2004. Excluding the licensing fee, revenues increased US$55,623 between periods. The increase was primarily a result of a 46% increase in Design Access Program (DAP) fees offset by lower Kit and Material sales during the quarter. During the month of March XPEL achieved record-breaking revenues of nearly US$264,000.
Cost of sales decreased from US$288,364 to US$285,912, but increased slightly as a percentage of revenues due to the mix of revenues during the first quarter of 2005. As the DAP fees continue to grow, and the mix of XPEL's revenues evolve going forward, management believes its cost of sales, as a percentage of revenues will improve as well.
Total expenses increased US$156,981 from US$380,585 to US$537,476, or approximately 41% between the quarters. General and administrative expenses increased from US$293,523 to US$381,180. This increase was largely a result of increased professional fees and increased personnel costs, resulting from an increase in the number of full-time employees to 17 as of the end of March. XPEL will continue looking for staff additions believed to be critical to the Company's growth, so as to maintain a superior level of service to XPEL customers and DAP Dealers.
Sales and marketing expenses increased approximately US$23,150 to US$82,645 due to increased advertising activities that management believes is spurring improved DAP access fee revenues. As XPEL continues the implementation of its growth strategy, it will incur increased advertising and public awareness costs.
XPEL incurred a net loss of US$192,044 for the quarter ended March 31, 2005 as compared to net income of US$6,772 for the quarter ended March 31, 2004. Due to additions in the employee base and accelerated advertising and marketing activities, expenses increased at a rate greater than the increase in XPEL's revenues. While management believes the Company might incur a net loss again during the second quarter of 2005, it also believes that the increased marketing and awareness will translate into future additional revenues and profitable operations.
XPEL Technologies Corp. (www.xpel.com), publicly traded on the Canadian Trading and Quotation System Exchange, is the worldwide leader in the electronic delivery of top automotive aftermarket products, utilizing the Internet as an integral component for its design, manufacturing, distribution and customer relationship strategies. The Company's DAP software utility offers Dealers the industry's most efficient and productive tool set for better serving customers with "best of breed" solutions in real-time. XPEL has clear advantages over the competition through its proprietary corporate framework consisting of an expansive library of installation-friendly window tint, paint and headlight protection products, coupled with a unique web-based remote manufacturing and distribution software, superior installation training curriculum and facilities, and established and growing sales distribution channels.
Certain statements contained herein (", and we believe that the 101 new dealer applications XPEL approved during the quarter, will fuel continued growth throughout the balance of the year." and "We are confident that our sales and marketing efforts, our onsite auto dealership training initiative, as well as our significant business development activities." and "As the DAP fees continue to grow, and the mix of XPEL's revenues evolve going forward, management believes its cost of sales, as a percentage of revenues will improve as well." and "While management believes the Company might incur a net loss again during the second quarter of 2005, it also believes that the increased marketing and awareness will translate into future additional revenues and profitable operations.") are considered "forward-looking statements." These statements are based upon the belief of the Company's management, as well as assumptions made beyond information currently available to the Company's management. Because "forward-looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, price competition, the inability to obtain additional capital, loss of key personnel, unavailability of leased facilities, technological changes, service interruptions, equipment failures, customer attrition, general economic conditions, relationships with vendors, government supervision and regulation, changes in industry practices, and other factors.
The CNQ has not reviewed and does not accept responsibility for the adequacy and accuracy of this information. CUSIP: U98409102