XPEL Produces Second Consecutive Quarter of Record-Breaking Revenues
- 55% Year-to-Date Growth in Design Access Program Revenues - - Total Operating Revenues Improve for Third Consecutive Quarter - - Overall Gross Margins Approach 61% -
SAN ANTONIO, Nov. 30 -- XPEL Technologies Corp. (CNQ: XPEL.U) announced financial results today for the three and nine months ended September 30, 2005. Detailed financials and historical comparisons between the three and nine month periods ended September 30, 2005 and September 30, 2004 can be found in XPEL's filings with SEDAR located at http://www.sedar.com/ .
XPEL's Chairman and CEO W. Rege Brunner stated, "2005 continues to be an exciting year for XPEL Technologies. We have experienced quarter-to-quarter record-breaking growth, due primarily to the expansion in our Design Access Program (DAP) revenues. The margin contribution of the DAP is substantial, and is why XPEL has made DAP growth its central focus." Mr. Brunner further added, "We are especially pleased with our overall gross margins, which are improving as a direct result of increasing DAP revenues and cost containment. Management believes its primary focus on the DAP, coupled with the recently introduced XPEL Road Hazard Warranty Program, will ensure continued corporate growth and increased shareholder value."
Revenues for the three months ended September 30, 2005 were US$826,573 as compared to the previous record quarter of US$824,398 achieved in the second quarter of 2005. The strong second and third quarters led to nine-month revenues of approximately US$2.3 million for fiscal 2005. DAP revenues continued to grow both for the quarter and year-to-date, totaling US$344,964 and US$868,365, respectively.
Cost of sales declined from US$388,524 to US$323,596 from the second quarter to the third quarter and improved, as a percentage of revenues, from 47% to 39%. As the DAP fees continue to grow, and the mix of XPEL's revenues continue to evolve, management believes its cost of sales, as a percentage of revenues may continue to improve.
Total expenses remained relatively flat at US$618,287 as compared to US$620,231 incurred in the second quarter of 2005. The Company will continue to add individuals to its employee base to fill key needs in the Company's required skill sets and to help it deploy its growth strategy going-forward.
XPEL incurred a net loss of US$115,310 for the quarter ended September 30, 2005 and a net loss for the nine months ended September 30, 2005 of US$506,377. When adjusted for non-cash expenses, the net loss for the quarter was US$45,456. The net loss for the third quarter improved approximately US$69,047 from the net loss of US$184,357 for the quarter ended June 30, 2005. While XPEL may continue to incur net losses management is optimistic that the trend of growing revenues and declining cash losses will continue and the Company can achieve profitability in the near future.
XPEL Technologies Corp. (http://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 ("Management believes its primary focus on the DAP, coupled with the recently introduced XPEL Road Hazard Warranty Program, will ensure continued corporate growth and increased shareholder value." and "As the DAP fees continue to grow, and the mix of XPEL's revenues continue to evolve, management believes its cost of sales, as a percentage of revenues may continue to improve." and "While XPEL may continue to incur net losses management is optimistic that the trend of growing revenues and declining cash losses will continue and the Company can achieve profitability in the near future.") 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 such "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.
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