XPEL Reports Fourth Quarter and 2022 Year-End Results

XPEL, a global provider of protective films and coatings, announced results for the fourth quarter and year ended December 31, 2022.

Fourth Quarter 2022 Highlights:

Revenue increased 11.9% to $78.5 million compared to fourth quarter 2021;

Net income increased 34.7% to $8.4 million, or $0.30 per basic and diluted share, versus net income of $6.2 million, or $0.22 per basic and diluted share in the fourth quarter of 2021;

And EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew 32.4% to $13.2 million, or 16.8% of revenue compared to $10.0 million, or 14.2% of revenue in fourth quarter 2021.

Year End 2022 Highlights:

Revenue increased 25.0% to $324.0 million as compared to $259.3 million in the prior year;

Net income increased by 31.1% to $41.4 million, or $1.50 per basic and diluted share, compared to $31.6 million, or $1.14 per basic and diluted share, in 2021;

And EBITDA grew 38.7% to $61.2 million, or 18.9% of revenue, as compared to $44.1 million, or 17.0% in the prior year.

In the quarter, the company’s revenue was negatively impacted by approximately $3.5 million resulting from the cancellation of some China orders due to uncertainty created by the change in COVID policies and China’s reopening.

The company also incurred approximately $0.4 million in inventory write-offs which negatively impacted gross margin. The company’s selling, general and administrative expenses were negatively impacted by approximately $0.3 million in severance-related costs and $0.4 million in compensation expense tangential to a previous acquisition.

Normalizing for these items, revenue would have grown approximately 17%, EBITDA margin would have been approximately 18% and EPS would have been approximately $0.36 per share, according to the company.

Ryan Pape, president and CEO of XPEL, says, “Despite some headwinds in the fourth quarter, there is a lot to be positive about as we look to 2023. We continue to have tremendous momentum in almost all of our regions, particularly the U.S. which grew 31.6% in the quarter. Automakers seem cautiously optimistic about 2023 and new car inventories continue to improve. This momentum has continued and we are off to a great start in 2023.”

Wrap of the Week: The Dark Knight’s Worst Nightmare

A gloss purple 2008 Dodge Viper SRT10 is equal parts sinister and elegant. But car enthusiasts know there is no ceiling for either adjective. Cory Athanasuleas of Alabama’s Classic Car Motoring wrapped the 600 brake horsepower monster in XPEL Stealth PPF just before Halloween 2022. Dubbed “The Joker Mobile,” the end result is downright vicious.

Photos: Morgan Sidwell Media LLC

“His excitement for matte finishes had grown, and the spirit of Halloween took over,” Athanasuleas says of his client. “The client is new to us as of 2022, but we have already completed five other vehicles for him. He is well educated on materials and industry fit and finish. We had just wrapped his dark grey 2019 Corvette Z06 in XPEL Stealth PPF and dubbed it ‘The Bat Mobile.’”

Batman now has to share the garage with a frightening foe. Athanasuleas spent 10 hours on the Viper’s front bumper alone. He originally intended for a gloss PPF finish but shifted to a matte finish after playing with swatch samples and shifting the color of the brake calipers to “Joker green.”

“A gloss PPF installation would be a challenge even on this car, but a matte finish eliminates the ability to use the standard pre-cut kits,” Athanasuleas says. “First, we did full body panel disassembly for easier access to the panels. We then used custom Design Access Program (DAP) pre-cut kits and custom bulk methods for the bumpers and hood. The challenge of the vehicle proved to be the most rewarding aspect. I had always wanted to do a Viper because of its difficulty level. The opportunity to do it in Stealth showcases the amount of effort and detail that goes into our customers’ vehicles.”

Submit Your Wrap

Check out the first four featured wraps below, and reach out to me at ccollier@glass.com to submit your entry.

Wrap of the Week: 14 Shades of Challenger

Wrap of the Week: STEK’s Dyno Blue Chrome PPF

Wrap of the Week: 3M 2080 Series Gloss Plum Explosion

Wrap of the Week: Watch Automotive Film Specialists Wrap a 2022 Rivian R1T

PPF Projects: The 2022 Ford F-150 Raptor

The 450-horsepower 2022 Ford F-150 Raptor is one of many shiny toys rolling into paint protection film (PPF) shops these days. Former National Hockey League coach Mike Babcock brought his truck into Lingenfelter Auto Spa in Brighton, Mich., for a PPF project handled by installer Matthew Celotto and 22 pieces of XPEL Ultimate Plus PPF.

I look forward to covering a variety of PPF projects in the future.

WF: What would you compare this vehicle to in terms of installation difficulty?
Celotto: This truck was fairly simple. I would compare it to a Ram TRX—simple but time-consuming and awkward. The height and width of the truck cause issues with the ability to reach parts comfortably.

WF: How does this truck rank against others, difficulty-wise?
Celotto: This is one of the easier trucks to install [PPF]. The hood is made easier due to the hood scoop towards the back, allowing you to feed film there to reduce the amount of tension you need along the front edge. The bumper is much easier than any other trucks the big three [Ford, General Motors and Dodge] make. It doesn’t have any deep valleys and is much less convex towards the edges compared to the regular F-150, Rams and Silverado/Sierra.

WF: What was the most challenging part of the installation?
Celotto: The most difficult part for us was the fender flares, not because they were super hard but because of the harsh valleys they have surrounding the side markers. It made installing film on them very tedious and time-consuming. On this Raptor, the owner had the flares and hood scoop painted and color matched after the fact, which means we had to make sure there was little to no tension on the film in the valleys of the side markers, mainly because we risk pulling the paint. So in this situation, we laid the valley with no tension as far over the radius as we could then cut a relief and persuaded the film throughout the rest of the flare where we had more surface area for the film to bite to reduce the chance of the film and paint failing.

WF: Can you share tips and tricks for those tackling the truck for the first time?
Celotto: Your biggest issue will most likely be dirt management. When we installed the film, we removed as much as we could. We removed the fender vents, which pull off unbelievably easy, and we removed the hood vent.

WF: Did you plot or hand-cut for this vehicle?
Celotto: I did a mix of both. On the bumper and more intricate/small pieces like the headlights, grill and mirrors, I used the kit, but the hood was completely bulked. The fenders and flares were customized kits that we edited to get the coverage we wanted.

WF: What tools did you use?
Celotto: MMM X-Style large and medium squeegees; spray tank from Dirty Tools; NT Cutter Pro; 30° Carbon Blade (Japan NT); electric spray bottle from Amazon; and a Fusion Pink Clean Squeegee.

WF: Which sections did you tackle first?
Celotto: In order—hood, fenders, front fender flares and then the rear, mirrors, headlights, grill and bumper

Please contact me at ccollier@glass.com if you’d like to participate in this new series. And check out the series’ first entry below.

PPF Projects: The 2022 Toyota Tundra

Trainer Marco Cazorla Joins Madico

Industry trainer Marco Cazorla, formerly of XPEL, announced his move to industry supplier Madico. Cazorla accepted the role this December and is gearing up for an official start date of January 5, 2023. Cazorla will assist Madico dealers by advancing their sales processes and hiring systems, in addition to tint, paint protection film and Clear Plex Windshield Protection Film training.

Cazorla instructed more than 200 people each year at XPEL.

Automobiles were like Cazorla’s second home as a child. His father worked in auto repair and ensured he and his twin brother contributed to the family business. Repetitive tasks transformed into a career that began in 2004 at Steve’s Professional Glass Tinting and Auto Security in Upland, Calif.

“He would have us clean every single one of his drawers and his toolbox,” Cazorla says. “We would help him clean the shop. It mirrors what I did at Steve’s Glass Tinting when I first installed [film]. We would help with brakes, tires, oil changes and transmission [work]. It seems like my whole childhood is coming back.”

Cazorla traveled nearly every week in 2021 but not for vacation. As an installation trainer for XPEL, the veteran instructed more than 200 people each year. Now a part of Madico’s training unit, he reflects on a journey that started 18 years ago.

“Always be relentless in the things you have passion for, and don’t be scared to put yourself out there,” Cazorla says of advice he’d pass along to his younger self. “You never know who’s watching, who’s listening and the impact you’re going to have on those people.”

Cazorla interviewed with five industry companies before choosing Madico. He says he will be traveling and visiting dealers one to two times per month in his new role.

“They cared about what I had to say and wanted to hear my feedback,” he says of his decision-making process. “They trusted what I’ve accomplished in the industry.”

Film Companies Celebrate Thanksgiving

Tomorrow is Thanksgiving, a day packed with family, football, and, of course, a copious supply of cooked and baked goods. As the holiday season begins, film companies prepare for an end-of-year push with rest and reflection on what they’re most thankful for.

Ricky Gomez says his company, Eclipse Window Tint and PPF in Sturgis, Mich., will be open both Thursday and Friday.

Open or Closed?

“We are closed Thursday and Friday to give our team that time to spend with their families,” says David Francis, owner of Finishing Touch Detailing and Paint Correction in Maryville, Tenn. “We are closed every major holiday because we believe a balance of work and home life is essential.”

Tyler Robinson, XPEL brand ambassador and installer at XPEL’s corporate shop in San Antonio, says he’s most thankful for the growth his location has seen over the last five years. “We are closed Thanksgiving and Black Friday,” he says. “It’s that time of the year when everyone needs to take a break, get together with family and be thankful for what we have and the future ahead.”

Jordan Cope, shop manager at Ciocca Corvette in Atlantic City, N.J., says his team will rest on Thanksgiving and return for Black Friday.

“I’m thankful to be in an industry that is growing with people willing to help each other,” Cope says. “We work in a tough industry where each of us runs into complications as installers, but there has never been a shortage of veterans willing to help and share information.”

Like Cope, Ryan Williams, owner of Bare Knuckles Automotive in LaGrange, Ga., is thankful for helping hands.

“This industry has been unlike a lot of industries I’ve been in,” Williams says. “There is always someone willing to give advice and help without expectation— and I try to do the same.”

Ricky Gomez of Eclipse Window Tint and PPF in Sturgis, Mich., chimed in, saying, “I firmly believe there are some great people out there who are willing to help when needed. Some of these groups on social media have changed the industry by showing their support to small guys like me who keep learning every day, and I’m grateful for them.”

Thanksgiving Favorites

Check out each film professional’s favorite Thanksgiving dishes below, and share yours in the comment section.

Ryan Williams, owner of Bare Knuckles Automotive in LaGrange, Ga. – “Dressing because it’s dressing—all of the carbs and flavor.”

Jordan Cope, shop manager at Ciocca Corvette in Atlantic City, N.J. – “I love all parts of my Thanksgiving dinner, and I’m a big turkey guy, but I always save some room for my holiday desserts. Pumpkin and pecan pies are family staples and the definite topper for our holiday.”

David Francis, owner of Finishing Touch Detailing and Paint Correction in Maryville, Tenn. – “My favorite Thanksgiving dish isn’t a dish at all—cold leftover turkey the day after. I grew up on the road; I played professional baseball for five years and travel ball my whole life. Leftovers are my preference always.”

Ricky Gomez of Eclipse Window Tint and PPF in Sturgis, Mich. – “I love roast turkey, with stuffing, mashed potatoes, corn—and we cannot forget the cranberry juice.”

Tyler Robinson, XPEL brand ambassador and installer at XPEL’s corporate shop in San Antonio – “My favorite thanksgiving dish would either be my mom’s baked corn or broccoli casserole.”

East Lin, president of 405 Motoring and Detail Union in Inglewood, Calif. – “Instead of a traditional turkey dinner, which I’ve yet to experience even though I grew up here, I typically celebrate Thanksgiving with a Chinese-style hot pot.”

All Gas, No Brakes

Finishing Touch Detailing and Paint Correction in Maryville, Tenn., will be closed Thursday and Friday.

“We will be open,” Gomez says. “Thanksgiving is one of the busiest holidays for entrepreneurs as it is the start of the craziest shopping frenzy of the year. As a small business owner, I believe this is a great opportunity for our shop to draw more traffic and position it to boost engagement and increase sales with things like gift certificates, Black Friday deals and bundle packages.”

East Lin, president of 405 Motoring and Detail Union in Inglewood, Calif., says business will cease during Thanksgiving and Black Friday.

“I’m thankful for a strong team in this labor market,” Lin says. “I have 20 dedicated technicians that make up the company.”

Happy Thanksgiving!

PPFMag wishes its readers a healthy and happy Thanksgiving and holiday season. Our entire team is thankful for your constant support.