Coming and Going: Victory Capital Management Divests and BlackRock Increases Stake in XPEL

Victory Capital Management filed a 13F-HR form on August 1 disclosing ownership of zero shares of XPEL (US: XPEL) with total holdings valued at $0 USD as of June 30, 2022. Victory Capital Management had filed a previous 13F-HR on May 4, 2022 disclosing 5,286 shares of XPEL at a value of $229,000 USD. This represents a change in shares of -100.00 percent and a change in value of -100.00 percent during the quarter.

Global investment management firm Victory Capital Management’s sell-off follows several positive financial developments for protective films and coatings provider XPEL. American multinational investment management corporation BlackRock filed an SC 13G form with the Securities and Exchange Commission (SEC) disclosing ownership of 2,917,123 shares of XPEL. This represents a 10.6% ownership stake in the company.

XPEL finds itself having a successful 2022, recently announcing results for the second quarter and six months ended June 30, 2022. Revenues increased 22.0% to $83.9 million in the second quarter; gross margin percentage improved to 39.3% in the first quarter, a new high for the company; and net income grew 16.8% to $11.9 million, or $0.43 per share, compared to $10.2 million, or $0.37 per share, in the same quarter of 2021.

“We’re pleased to have delivered strong second quarter results, especially in the face of continuing headwinds related to ongoing tight new car inventory, COVID-related impacts in China and the strengthening U.S. dollar,” says Ryan Pape, XPEL president and CEO. “We continued to see robust demand for our products and services across most of our regions. We remain confident in our ability to drive continued strong performance in the second half of 2022.”

For the six months ended June 30, 2022, revenues increased approximately $35.2 million or 29.1% to $155.8 million as compared to $120.6 million in the first six months of the prior year. Gross margin was 39.0% compared to 36.1% in the first half of 2021. Net income was $19.7 million, or $0.71 per basic and diluted share versus net income of $17.0 million, or $0.62 per basic and diluted share in the first six months of 2021.

Quarterly results follow news that XPEL has been selected as the exclusive supplier to Rivian Automotive for their new paint protection film (PPF) factory direct program.

Industry Veteran to be Inducted Into Window Film Hall of Fame

Veteran window film industry owner Joe Cobbe, president/CEO of Maxpro Window Films, will be the next person inducted into the Window Film Hall of Fame, sponsored by PPFMag.

“It’s a surprise and an honor,” Cobbe says. “There’s a lot of folks that have been in this business a lot longer than I have and are probably more deserving. I am flattered for it to happen; it’s a great industry with a lot of great people.”

Cobbe founded Commonwealth Film in 1985 and Commonwealth Laminating and Coating in the early 1990s. The company was acquired by Eastman in 2013.

Drafted into the U.S. Military, Cobbe served from November 1966 to September 1969 and earned the rank of First Lieutenant. He also has been a certified public accountant for more than 50 years. From June 2004 to June 2006, he was the mayor of Martinsville, Va. He helped create Maxpro in 2012.

“Opportunity and hard work—being able to recognize opportunity and putting the work in to accomplish it,” says Cobbe of his varied career paths.

Elizabeth Dillon, Maxpro executive vice president of sales and marketing, shares a connection of more than 20 years with Joe. “Joe has been involved in the window film industry for a long time,” she says. “Most folks have no idea exactly what all he’s done to help start the industry.”

Cobbe will be recognized and inducted into the Window Film Hall of Fame during the 21st Annual International Window Film Conference and Tint-Off™ (WFCT) on September 14 at the Henry B. González Convention Center in San Antonio.

Click here for the list of Hall of Fame Inductees from past years. Click here for video footage of Lisa Winckler’s induction ceremony last year. To attend this year’s induction ceremony, register here.

Autobahn, Huper Optik and Edge Announce Newest Territory Manager

Huper Optik, Autobahn and Edge announced Tony Kiger as its newest territory manager.

Kiger’s most recent gig came at Ultimate Auto of Orlando, Fla., as lead PPF installer.

“Kiger brings over a decade of specialized experience in the coatings and paint protection industry,” says David Kratz, chief operating officer of Autobahn, Huper Optik and Edge. “Having received many certificates for his accomplishments and becoming a well-respected veteran in the PPF community, Kiger enjoys sharing his product knowledge with the community. Tony will be a valuable resource for our dealers, and we are excited to see him take the next step in his career here with us.”

Cars are a constant in the WINDOW FILM magazine Film Star’s career. Kiger worked in Coshocton, Ohio’s, Walmart Auto Care Center as a tire and lube express (TLE) technician from 20 to 24, detailing part-time in his parent’s garage. He then took on detailing at a Volkswagen dealership in Columbus, Ohio, in 2008 and a Cadillac dealer in 2013. His most recent gig came at Ultimate Auto of Orlando, Fla., as lead PPF installer.

BlackRock Reaches 10.6% Ownership of XPEL

American multinational investment management corporation BlackRock has filed an SC 13G form with the Securities and Exchange Commission (SEC) disclosing ownership of 2,917,123 shares of XPEL. This represents 10.6% ownership of the protective films and coatings provider.

XPEL’s booth at the 2021 International Window Film Conference and Tint-Off™ (WFCT).

According to financial media website Investopedia, BlackRock is the biggest investment management company globally by some metrics. The company held more than $10.0 trillion in assets under management as of December 31, 2021.

XPEL finds itself having a successful 2022, previously announcing results for the Q1 that ended March 31, 2022. Revenues increased approximately $20.0 million or 38.6% to $71.9 million as compared to $51.9 million in the first quarter of the prior year. The gross margin was 38.6% compared to 35.3% in the first quarter of 2021. Operating expenses increased to $17.7 million, or 24.6% of sales, compared to $9.7 million or 18.8% of sales in the prior-year period. Net income was $7.8 million, or $0.28 per basic and diluted share versus net income of $6.8 million, or $0.25 per basic and diluted share, in the first quarter of 2021.

“We delivered a strong first quarter to begin 2022, despite ongoing challenges with new car inventory in the U.S. and impacts from COVID-related lockdowns in China,” says Ryan Pape, president and CEO. “We have taken actions to navigate a unique set of circumstances where we’re seeing strong retail demand with simultaneous new car inventory constraints. Despite this unusual environment, we believe we are well-positioned to deliver solid results in coming quarters.”

BlackRock’s investment preceded news last week that XPEL has been selected as the exclusive supplier to Rivian Automotive for their new paint protection film (PPF) factory direct program. By the terms of the agreement, Rivian Automotive will offer factory direct PPF options to its customers ordering their new R1T and R1S models beginning late 2022. Customers will be able to choose between two PPF option packages: front gloss paint guard or full body satin paint guard.

The paint guard packages have been developed cooperatively between XPEL and Rivian’s vehicle engineering and design teams to enhance the adventures of R1T and R1S owners, according to the release. XPEL will operate an installation facility in close proximity to Rivian’s Normal, Ill., assembly plant to ensure installation quality control.

“We’re pleased to have this opportunity to bring our proprietary design methodology and state-of-the-art paint protection films to Rivian customers as the exclusive supplier of factory direct PPF for their R1T and R1S vehicles,” says Tim Hartt, vice president – technical operations and OEM of XPEL. “We are the leader in advanced OEM level PPF solutions and we look forward to leveraging our experience as a tier one supplier working with premium automotive brands, to introduce XPEL products to Rivian and their customers.”