XPEL Named Official Paint Protection Film (PPF) for Xtreme Xperience Supercar Fleet

XPEL, Inc., a provider of protective films and coatings, announced its designation as the official paint protection film (PPF) provider for Xtreme Xperience. Xtreme Xperience will exclusively use XPEL’s PPF product on its fleet of supercars, muscle cars and support vehicles. The experience allows guests to drive or ride a selection of supercars and is hosted at more than 30 racetracks across the U.S.

“As soon as we started talking to XPEL, we knew this was a great fit,” says Christopher Meegan, Xtreme Xperience’s partnerships executive. “They are disruptors in their industry, as we are in ours. We head to some racetracks that leave our cars battered by rocks, dirt, rubber and other road debris.”

Robert Bezner, vice president, Brand for XPEL, welcomes the partnership.

“We’re excited to announce this partnership with Xtreme Xperience,” Bezner says. “Their incredible inventory of supercars give thousands of car enthusiasts once in a lifetime experiences, and we’re thrilled they recognize the quality of our product and trust it to keep their fleet protected and looking new.”

California Issues 600,000 Direct Payments in 1st Batch of New Golden State Stimulus Checks

As California continues the slow recovery from the COVID-19 pandemic that shut down many businesses last year, new $600 state stimulus checks have begun arriving in the bank accounts of residents who earn up to $75,000 annually, to help them get back on their feet. The state distributed approximately 600,000 direct payments worth an estimated total of $354 million, according to Daniel Tahara, a spokesman for state’s Franchise Tax Board.

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Ceramic Coating Your Car Explained and if You Should

Everybody knows the importance of keeping your vehicle mint. The notion is equal regardless of whether your car’s a Ford or Ferrari. There are some things that you need to know about new car ownership. It’s virtually impossible to retain a factory-like appearance while using it as intended. However, there are detailing products that could enhance the visual appeal of your car whilst prolonging its “like-new” looks.

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Research Report: Trends in Window Film and PPF

Window film companies know that business is booming—because many shops are as busier as ever. The data bears that out as well, even though research shows that consumer sentiment still has some recovering to do. Nick St. Denis, director of research at Key Media & Research (WINDOW FILM magazine’s parent company), discussed demand and trends in the window film and paint protection film market during a recent presentation held during the International Window Film Conference and Tint-Off™.

St. Denis noted that consumer sentiment in the U.S., according to the University of Michigan’s longstanding survey of consumers, in the second and third quarters of 2020 was at its lowest point in nearly a decade.

“Consumer sentiment is a strong indicator to look at regarding aftermarket accessories and alterations to vehicles, as well as improvements to a home or building,” he said. “When consumers are comfortable with their financial standing and the economy in general, they’re more likely to spend on discretionary things such as PPF for their vehicle or window film on their home.”

The Index of Consumer Sentiment, which measures this, has partially recovered as of the second quarter of 2021 but still has a ways to go.

Fortunately, several other indicators closer to the industry—including personal consumption expenditures of motor vehicles and parts, as well as retail sales of automotive parts and accessories—have been booming since late 2020 and through the first quarter of 2021. Additionally, new vehicles sales have improved to start the year.

St. Denis discussed data related to residential improvements. He said that despite the economic downturn last year due to the pandemic, homeowner improvements and repairs remained strong throughout 2020, improving nearly 6% year-over-year with a similar expected increase in the year ahead. This, he said, is a good sign for architectural window film.

St. Denis wrapped up the session discussing some anecdotes from articles and qualitative research by KMR and Window Film magazine, looking back at the pandemic’s impact. “For many dealers in the industry, elevated sales in the first quarter of 2020 and a rebound in the third and fourth helped offset the downturn that mainly impacted the second quarter,” he said. “But those in areas with stricter restrictions had a more difficult time making up for losses.”

Some dealers also reported an uptick in demand due to nearby competitors shutting down. “There was a general increase in residential work with people working from home, he said. “And businesses also took the opportunity to upgrade with window film while employees were away.”

Looking ahead, a rise in sales of vehicle accessories and residential improvements should bode well for window film, and continued increase in consumer awareness along with an increase in new car sales provides opportunity in PPF.

“Security film for downtown businesses may be a strong prospect for dealers moving forward,” he added.

XPEL Acquires PermaPlate Film LLC

XPEL, Inc. (Nasdaq: XPEL) (the “Company”), a global provider of protective films and coatings, announced the acquisition of PermaPlate Film LLC (“PermaPlate Film”), a distributor and installer of automotive window films serving dealerships across the United States.

PermaPlate Film supplies mid-range dealerships primarily engaged in high-volume window film installation. Serving several hundred dealerships across the country, the addition of PermaPlate Film strengthens XPEL’s market presence, enhances its geographic footprint and accelerates the Company’s penetration into the mid-range segment of the market.

On a full-year basis, PermaPlate Film would add approximately $25.0 million in revenue for 2021, according to XPEL. After integration, the Company expects full-year post-synergy earnings before interest, taxes and depreciation of approximately $6.0 million which the Company expects to occur on a run-rate basis starting in Q4 2021. The Company also expects to incur approximately $0.5 million in acquisition and integration related charges in 2021.

“This acquisition further extends our window film business beyond the luxury and enthusiast car market,” said Ryan Pape, president and chief executive officer of XPEL. “We look forward to leveraging PermaPlate Film’s expertise to drive continued growth in this important segment.”

XPEL is acquiring PermaPlate Film for $30 million in cash, subject to customary adjustments. XPEL is funding the transaction with existing cash on hand.