- Achieved Positive Net Cash Flows for the Quarter -
- Completed Acquisition of Canadian Entity -
- Annualized Revenues Exceeding US$8 Million -
- Substantially Improved Balance Sheet -
SAN ANTONIO, August 30 /CNW/ - XPEL Technologies Corp. (TSX
VENTURE:DAP.U) announces results for the three and six months ended June 30,
2007, as compared to the three and six months ended June 30, 2006.
XPEL's Chief Executive Officer, Steven J. McAuley, stated, "The second
quarter of 2007 was a breakout quarter for us. We achieved cash flow
profitability for the first time since becoming a public company in late 2004.
Additionally, we completed the Canadian acquisition of approximately US$3.5
million in annualized revenues on June 27, 2007, of which only three days of
income are included in the 2Q numbers we reported. During the period, we
substantially improved XPEL's balance sheet by growing total assets 268%,
expanded shareholder equity by over 1600%, and significantly improved working
capital by over US$1.5 million in the first six months of 2007."
Mr. McAuley further added, "We further improved our core patented
technology and continue to evolve as a company with many exciting new products
coming to market for the vehicle protection industry. Our top line revenue
will continue to grow and we expect to achieve positive cash flow on a full
Three and Six Months Ended June 30, 2007 compared to the Three and Six
Months Ended June 30, 2006
Revenues. Revenues, inclusive of three days of revenues from Canadian
operations, increased from US$925,328 to US$1,067,760, or 15% between quarters
and from US$1,722,273 to US$1,918,251, or 11% between the six month periods.
Cost of Sales. Cost of sales decreased both in pure dollars and as a
percentage of revenues from US$371,559 to US$332,079, or 40% to 31%
respectively between quarters. For the six months ended June 30, 2007, cost of
sales decreased from US$679,598 to US$588,317 or from 39% to 31% respectively,
when compared to the six months ended June 30, 2006.
Expenses. Total expenses increased US$61,872 from US$886,770 to
US$948,642, or approximately 7% between quarters and increased US$241,249 from
US$1,635,904 to US$1,877,153, or approximately 15% between the six month
periods. The increased expenses were primarily a result of increased general
and administrative expenses and increased amortization expense offset by a
decline in research and development expenses.
General and administrative expenses increased from US$686,472 to
US$809,144, or 18% between quarters and from US$1,302,061 to US$1,635,255, or
26% between the six month periods.
Research and developments expenses decreased from US$54,649 to $0 during
the quarters and from US$110,444 to $0 during the six months ended, as the
Company determined that the costs related to its design function should be
expensed over a twenty four-month period. In previous periods, the Company
expensed its design costs as incurred.
Net earnings (loss). The Company had a net loss of US$212,961 for the
quarter ended June 30, 2007 as compared to a net loss of US$333,001 for the
quarter ended June 30, 2006. When adjusted for non-cash expenses, XPEL
recorded net income of US$23,439 for the quarter ended June 30, 2007 as
compared to an adjusted net loss of US$228,989 for the quarter ended June 30,
2006. This represents the first quarter of cash flow profitability since the
Company went public in late 2004. The Company had a net loss of US$547,219 for
the six months ended June 30, 2007 as compared to a net loss of US$593,229 for
the six months ended June 30, 2006. When adjusted for non-cash expenses, the
net loss decreased to US$74,122 for the six months ended June 30, 2007 as
compared to an adjusted net loss of US$384,224 for the six months ended June
This press release should be read in conjunction with the Interim
Financials, Notes and Management Discussion and Analysis filed on
XPEL Technologies Corp. is the worldwide leader in the electronic
delivery of 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 to better serve customers
with "best-in-class" solutions in real time. XPEL has clear advantages over
the competition through its expansive proprietary library of
installation-friendly paint and headlight protection and window tint products,
coupled with a unique web-based remote manufacturing and distribution
software, superior installation training curriculum and world-class
facilities, with established and growing sales channels.
Certain statements contained herein such as: "Our top line revenue will
continue to grow and we expect to achieve positive cash flow on a full year
basis" are considered "forward-looking statements." These types of 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
The TSXV has not reviewed and does not accept responsibility for the
adequacy and accuracy of this information.
For further information:
For further information: XPEL Technologies Corp., San Antonio Craig K.
Clement, 210-678-3716 Senior Vice President firstname.lastname@example.org www.xpel.com