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.
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.”