The following is a summary of the XPEL, Inc. (XPEL) Q2 2024 Earnings Call Transcript:
Financial Performance:
XPEL reported Q2 2024 revenue of $109.9 million, a 7.5% increase.
U.S. business grew just under 10% to $64.9 million.
Gross margin performance for the quarter was strong at 43.5%.SG&A expenses grew by 20.5% to $28.7 million.
Net income declined 4.5% to $15 million with an EPS of $0.54.
Business Progress:
Launched a new product line in China targeting the mid-tier market.
Announced the upcoming launch of windshield protection films in late Q3 to early Q4.
Closed two acquisitions, including Protective Film Solutions and a distributor in India.
Introducing a new OEM and partner referral program utilizing the independent installer network.
Reported record revenue months in June and July, expecting higher revenues in Q3, especially in China.
Opportunities:
Launched a product line in China and planning further expansion in low labor cost markets like Southeast Asia and India.
Planning to decentralize European-based OEM operations into other countries through international subsidiaries.
Risks:
Mentioned macroeconomic uncertainty as a factor affecting forecasting and performance reliability.
China business saw a significant decline of 45.7% in revenue, emphasizing ongoing market choppiness.
More details: XPEL Inc IR
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