The following is a summary of the Xpel, Inc. (XPEL) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Xpel reported Q1 revenue growth of 5% to $90 million with US revenue growing 1.9% compared to Q1 2023 to $52 million.

• The gross margin finished at 42%.

• Total window film revenue grew 10.3% in Q1. Revenue from the Vision product line grew 33.1% to $1.8 million.

• OEM business revenue increased by approximately 58% to 4.6 million compared to Q1 2023.

• Total installation revenue combining product and service grew 34.7% in Q1, making up about 22% of total revenue.

• SG&A expense grew 36.2% to $28.6 million and represented 31.8% of the revenue.

• Q1 EBITDA dropped 31.5% to $11.7 million resulting in an EBITDA margin of 13%.

• Net income in Q1 declined 41.7% to $6.7 million, reflecting a net income margin of 7.4% and earnings per share of $0.24.

Business Progress:

• The company reached a deal with TIM world for product supply.

• Xpel's operations in India are well underway, facilitating expansion and providing better customer support in the Middle East.

• The sub OEM business saw a 58% year-over-year revenue increase.

• Several new products were introduced to expand the product set for customers.

• The focus is on discipline in capital allocation with a priority on M&A and growth in the dealership business.

• Management is working to streamline product lines and improve inventory management in China.

• The company plans to manage costs while enhancing the customer experience and expects the SG&A run rate to remain stable.

• They anticipate a return to positive operating cash flow in Q2 and expect to return to solid double-digit growth, overcoming macro challenges due to improving revenue momentum.

More details: XPEL Inc IR

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