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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