XPEL Technologies Corp., a leader in the electronic delivery of automotive aftermarket products, recently announced 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, called the second quarter of 2007 a "breakout quarter" for the company. "We achieved cash flow profitability for the first time since becoming a public company in late 2004," McAuley says. "Additionally, we completed the Canadian acquisition of approximately U.S. $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 that period, the company substantially improved their balance sheet by growing total assets 268 percent, expanded shareholder equity by over 1,600 percent, and significantly improved working capital by over U.S. $1.5 million in the first six months of 2007.
Mr. McAuley adds: "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 year basis."
The revenues for the three and six months ended June 30, 2007 compared to the three and six months ended June 30, 2006, inclusive of three days of revenues from Canadian operations, increased from U.S. $925,328 to U.S. $1 million, or 15 percent between quarters and from U.S. $1.7 million to U.S. $1.9 million, or 11 percent between the six month periods.
The cost of sales decreased both in pure dollars and as a percentage of revenues from U.S. $371,559 to U.S. $332,079, or 40 percent to 31 percent respectively between quarters. For the six months ended June 30, 2007, cost of sales decreased from U.S. $679,598 to U.S. $588,317 or from 39 percent to 31 percent respectively, when compared to the six months ended June 30, 2006.
Total expenses increased U.S. $61,872 from U.S. $886,770 to U.S. $948,642, or approximately 7 percent between quarters and increased U.S. $241,249 from U.S. $1.6 million to U.S. $1.9 million, or approximately 15 percent 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 U.S. $686,472 to U.S. $809,144, or 18 percent between quarters and from U.S. $1.3 million to U.S. $1.6 million, or 26 percent between the six month periods.
Research and developments expenses decreased from U.S. $54,649 to $0 during the quarters and from U.S. $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.
XPEL had a net loss of U.S. $212,961 for the quarter ended June 30, 2007 as compared to a net loss of U.S. $333,001 for the quarter ended June 30, 2006. When adjusted for non-cash expenses, the company recorded net income of U.S. $23,439 for the quarter ended June 30, 2007 as compared to an adjusted net loss of U.S. $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 U.S. $547,219 for the six months ended June 30, 2007 as compared to a net loss of U.S. $593,229 for the six months ended June 30, 2006. When adjusted for non-cash expenses, the net loss decreased to U.S. $74,122 for the six months ended June 30, 2007 as compared to an adjusted net loss of U.S. $384,224 for the six months ended June 30, 2006.
For more information on XPEL Technologies Corp., visit the company's Web site.
